[House Report 119-171]
[From the U.S. Government Publishing Office]


 119th Congress    }                                     {    Report
                         HOUSE OF REPRESENTATIVES
  1st Session      }                                     {    119-171

======================================================================



 
            VETERANS EMPLOYMENT READINESS YIELD ACT OF 2025

                                _______
                                

 June 25, 2025.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2625]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 2625) to amend title 38, United States Code, to 
update certain terminology regarding veteran employment, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Subcommittee Consideration.......................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     3
Earmarks and Tax and Tariff Benefits.............................     3
Committee Cost Estimate..........................................     3
Budget Authority and Congressional Budget Office Estimate........     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Statement on Duplication of Federal Programs.....................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    Page H.R. 2625, the ``Veterans Employment and Readiness 
Yield Act'' or the ``VERY Act of 2025,'' was introduced by Rep. 
Don Davis of North Carolina on April 3, 2025. The bill would 
update certain terminology within the Department of Veterans 
Affairs (VA) Veterans Readiness and Employment (VR&E) program. 
Specifically, this bill would amend ``employment handicap'' 
language to ``employment barrier'' in the VR&E program.

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``Veterans Employment and 
Readiness Yield Act'' or the ``VERY Act of 2025.''

Section 2: Update Of Certain Terminology Regarding Veteran Employment

    Chapter 31 of title 38, United States Code, provides the 
statutory guidance governing the VA VR&E program. The VR&E 
program has seen a 46% increase in applicants after the 
implementation of the PACT Act [P.L. 117-168]. Many veterans 
with service-connected disabilities take advantage of this 
program after they transition out of the military. The purpose 
of the VR&E Program is to assist veterans and servicemembers 
with service-connected disabilities to obtain and maintain 
suitable employment and/or achieve independent daily living.
    The programs cover short and long-term education or 
training, resume development, and employment services at 
institutions of higher learning, certificates, and licenses for 
education, and entrepreneur options. Family members of veterans 
with severe service-connected disabilities may also be eligible 
for education and career counseling.
    The term ``employment handicap'' within the VR&E handbook, 
is considered outdated in the context of the VR&E program. This 
is because the term `handicap' has a negative connotation in 
the disability community as it implies limitations or 
incapacity.\1\ This is an important distinction as the severity 
of a veteran's employment handicap is critical to determining 
their eligibility for VR&E.
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    \1\Testimony_DAV.pdf.
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    The Committee believes implementing this change in the 
statute would rightfully remove the term `handicap' and replace 
it with a broader term that would not unintentionally restrict 
a veteran's capabilities, independence, and opportunities to 
access the VA VR&E program. Further, the Committee believes 
that this change would honor and respect the sacrifices made by 
our nation's veterans and could encourage more service-disabled 
veterans to participate in the VR&E program.

                                Hearings

    There were no hearings on this legislation this Congress.

                       Subcommittee Consideration

    There was no Subcommittee consideration of this legislation 
this Congress.

                        Committee Consideration

    On May 6, 2025, the full Committee met in an open markup 
session, a quorum being present, and ordered H.R. 2625, to be 
reported favorably to the House of Representatives by voice 
vote.
    A motion by Ranking Member Takano to report H.R. 2625 
favorably to the House of Representatives was agreed to by 
voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 2625 reported to 
the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 2625 are to provide modern 
terminology changes to the Veterans Readiness and Employment 
handbook.

                  Earmarks and Tax and Tariff Benefits

    H.R. 2625 does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

           Budget Authority and Congressional Budget Office 
                             Cost Estimate

    Pursuant to clause (3)(c)(3) of rule XIII of the Rules of 
the House of Representatives, the following is the cost 
estimate for H.R. 1458, as amended, provided by the 
Congressional Budget Office (CBO) pursuant to section 402 of 
the Congressional Budget Act of 1974:

 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 2625 would replace the term ``employment handicap'' 
with ``employment barrier'' in title 38 of the U.S. Code, which 
governs veterans' benefits.
    The Department of Veterans Affairs (VA) administers 
programs that offer vocational rehabilitation assistance to 
veterans with service-connected disabilities that limit their 
ability to find employment. That limitation is referred to as a 
``handicap'' under current law. Much of VA's recently published 
materials concerning the vocational rehabilitation program have 
already replaced references to ``handicap'' with ``barrier'' or 
similar terms. CBO expects that the costs to update any 
additional material would be less than $500,000 over the 2025-
2035 period; any spending would be subject to the availability 
of appropriated funds.
    The CBO staff contact for this estimate is Paul B.A. 
Holland. The estimate was reviewed by Christina Hawley Anthony, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 2625.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
2625.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 2625 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 2625 would establish or reauthorize a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
the ``Veterans Employment Readiness Yield Act of 2025'' or the 
``VERY Act of 2025.''

Section 2: Update of certain terminology regarding veteran employment

    Section 2 would amend Chapter 31 of Title 38 by striking 
``employment handicap'' and inserting ``employment barrier'' in 
every place that it occurs.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


   CHAPTER 31--TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-
CONNECTED DISABILITIES

           *       *       *       *       *       *       *


Sec. 3101. Definitions

  For the purposes of this chapter--
  (10) The term ``emergency situation'' has the meaning given 
such term in section 3601 of this title.
  (2) The term ``[employment handicap] employment barrier'' 
means an impairment, resulting in substantial part from a 
disability described in section 3102(1)(A) of this title, of a 
veteran's ability to prepare for, obtain, or retain employment 
consistent with such veteran's abilities, aptitudes, and 
interests.
  (3) The term ``independence in daily living'' means the 
ability of a veteran, without the services of others or with a 
reduced level of the services of others, to live and function 
within such veteran's family and community.
  (4) The term ``program of education'' has the meaning 
provided in section 3452(b) of this title.
  (5) The term ``program of independent living services and 
assistance'' includes (A) the services provided for in this 
chapter that are needed to enable a veteran to achieve 
independence in daily living, including such counseling, 
diagnostic, medical, social, psychological, and educational 
services as are determined by the Secretary to be needed for 
such veteran to achieve maximum independence in daily living, 
and (B) the assistance authorized by this chapter for such 
veteran.
  (6) The term ``rehabilitated to the point of employability'' 
means rendered employable in an occupation for which a 
vocational rehabilitation program has been provided under this 
chapter.
  (7) The term ``rehabilitation program'' means (A) a 
vocational rehabilitation program, or (B) a program of 
independent living services and assistance authorized under 
section 3120 of this title for a veteran for whom a vocational 
goal has been determined not to be currently reasonably 
feasible.
  (8) The term ``serious [employment handicap] employment 
barrier'' means a significant impairment, resulting in 
substantial part from a service-connected disability rated at 
10 percent or more, of a veteran's ability to prepare for, 
obtain, or retain employment consistent with such veteran's 
abilities, aptitudes, and interests.
  (9) The term ``vocational goal'' means a gainful employment 
status consistent with a veteran's abilities, aptitudes, and 
interests.
  (10) The term ``vocational rehabilitation program'' 
includes--
          (A) the services provided for in this chapter that 
        are needed for the accomplishment of the purposes of 
        this chapter, including such counseling, diagnostic, 
        medical, social, psychological, independent living, 
        economic, educational, vocational, and employment 
        services as are determined by the Secretary to be 
        needed--
                  (i) in the case of a veteran for whom the 
                achievement of a vocational goal has not been 
                determined not to be currently reasonably 
                feasible, (I) to determine whether a vocational 
                goal is reasonably feasible, (II) to improve 
                such veteran's potential to participate in a 
                program of services designed to achieve a 
                vocational goal, and (III) to enable such 
                veteran to achieve maximum independence in 
                daily living, and
                  (ii) in the case of a veteran for whom the 
                achievement of a vocational goal is determined 
                to be reasonably feasible, to enable such 
                veteran to become, to the maximum extent 
                feasible, employable and to obtain and maintain 
                suitable employment, and
          (B) the assistance authorized by this chapter for a 
        veteran receiving any of the services described in 
        clause (A) of this paragraph.

Sec. 3102. Basic entitlement

  (a) In General.--A person shall be entitled to a 
rehabilitation program under the terms and conditions of this 
chapter if--
          (1) the person--
                  (A) is--
                          (i) a veteran who has a service-
                        connected disability rated at 20 
                        percent or more which was incurred or 
                        aggravated in service on or after 
                        September 16, 1940; or
                          (ii) hospitalized or receiving 
                        outpatient medical care, services, or 
                        treatment for a service-connected 
                        disability pending discharge from the 
                        active military, naval, air, or space 
                        service, and the Secretary determines 
                        that--
                                  (I) the hospital (or other 
                                medical facility) providing the 
                                hospitalization, care, 
                                services, or treatment is doing 
                                so under contract or agreement 
                                with the Secretary concerned, 
                                or is under the jurisdiction of 
                                the Secretary of Veterans 
                                Affairs or the Secretary 
                                concerned; and
                                  (II) the person is suffering 
                                from a disability which will 
                                likely be compensable at a rate 
                                of 20 percent or more under 
                                chapter 11 of this title; and
                  (B) is determined by the Secretary to be in 
                need of rehabilitation because of an 
                [employment handicap] employment barrier; or
          (2) the person is a veteran who--
                  (A) has a service-connected disability rated 
                at 10 percent which was incurred or aggravated 
                in service on or after September 16, 1940; and
                  (B) is determined by the Secretary to be in 
                need of rehabilitation because of a serious 
                [employment handicap] employment barrier.
  (b) Additional Rehabilitation Programs for Persons Who Have 
Exhausted Rights to Unemployment Benefits Under State Law.--(1) 
Except as provided in paragraph (4), a person who has completed 
a rehabilitation program under this chapter shall be entitled 
to an additional rehabilitation program under the terms and 
conditions of this chapter if--
          (A) the person is described by paragraph (1) or (2) 
        of subsection (a); and
          (B) the person--
                  (i) has exhausted all rights to regular 
                compensation under the State law or under 
                Federal law with respect to a benefit year;
                  (ii) has no rights to regular compensation 
                with respect to a week under such State or 
                Federal law; and
                  (iii) is not receiving compensation with 
                respect to such week under the unemployment 
                compensation law of Canada; and
          (C) begins such additional rehabilitation program 
        within six months of the date of such exhaustion.
  (2) For purposes of paragraph (1)(B)(i), a person shall be 
considered to have exhausted such person's rights to regular 
compensation under a State law when--
          (A) no payments of regular compensation can be made 
        under such law because such person has received all 
        regular compensation available to such person based on 
        employment or wages during such person's base period; 
        or
          (B) such person's rights to such compensation have 
        been terminated by reason of the expiration of the 
        benefit year with respect to which such rights existed.
  (3) In this subsection, the terms ``compensation'', ``regular 
compensation'', ``benefit year'', ``State'', ``State law'', and 
``week'' have the respective meanings given such terms under 
section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).
  (4) No person shall be entitled to an additional 
rehabilitation program under paragraph (1) from whom the 
Secretary receives an application therefor after March 31, 
2014.

Sec. 3103. Periods of eligibility

  (a) Except as provided in subsection (b), (c), (d), (e), (g), 
or (h) of this section, a rehabilitation program may not be 
afforded to a veteran under this chapter after the end of the 
twelve-year period beginning on the date of such veteran's 
discharge or release from active military, naval, air, or space 
service.
  (b)(1) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility prescribed in subsection (a) of this section 
because a medical condition of such veteran made it infeasible 
for such veteran to participate in such a program, the twelve-
year period of eligibility shall not run during the period of 
time that such veteran was so prevented from participating in 
such a program, and such period of eligibility shall again 
begin to run on the first day following such veteran's recovery 
from such condition on which it is reasonably feasible, as 
determined under regulations which the Secretary shall 
prescribe, for such veteran to participate in such a program.
  (2) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility prescribed in subsection (a) of this section 
because--
          (A) such veteran had not met the requirement of a 
        discharge or release from active military, naval, air, 
        or space service under conditions other than 
        dishonorable before (i) the nature of such discharge or 
        release was changed by appropriate authority, or (ii) 
        the Secretary determined, under regulations prescribed 
        by the Secretary, that such discharge or release was 
        under conditions other than dishonorable, or
          (B) such veteran's discharge or dismissal was, under 
        section 5303 of this title, a bar to benefits under 
        this title before the Secretary made a determination 
        that such discharge or dismissal is not a bar to such 
        benefits,
the twelve-year period of eligibility shall not run during the 
period of time that such veteran was so prevented from 
participating in such a program.
  (3) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility prescribed in subsection (a) of this section 
because such veteran had not established the existence of a 
service-connected disability rated at 10 percent or more, the 
twelve-year period of eligibility shall not run during the 
period such veteran was so prevented from participating in such 
a program.
  (c) In any case in which the Secretary determines that a 
veteran is in need of services to overcome a serious 
[employment handicap] employment barrier, such veteran may be 
afforded a vocational rehabilitation program after the 
expiration of the period of eligibility otherwise applicable to 
such veteran if the Secretary also determines, on the basis of 
such veteran's current [employment handicap] employment barrier 
and need for such services, that an extension of the applicable 
period of eligibility is necessary for such veteran and--
          (1) that such veteran had not previously been 
        rehabilitated to the point of employability;
          (2) that such veteran had previously been 
        rehabilitated to the point of employability but (A) the 
        need for such services had arisen out of a worsening of 
        such veteran's service-connected disability that 
        precludes such veteran from performing the duties of 
        the occupation for which such veteran was previously 
        trained in a vocational rehabilitation program under 
        this chapter, or (B) the occupation for which such 
        veteran had been so trained is not suitable in view of 
        such veteran's current [employment handicap] employment 
        barrier and capabilities; or
          (3) under regulations which the Secretary shall 
        prescribe, that an extension of the period of 
        eligibility of such veteran is necessary to accomplish 
        the purposes of a rehabilitation program for such 
        veteran.
  (d) In any case in which the Secretary has determined that a 
veteran's disability or disabilities are so severe that the 
achievement of a vocational goal currently is not reasonably 
feasible, such veteran may be afforded a program of independent 
living services and assistance in accordance with the 
provisions of section 3120 of this title after the expiration 
of the period of eligibility otherwise applicable to such 
veteran if the Secretary also determines that an extension of 
the period of eligibility of such veteran is necessary for such 
veteran to achieve maximum independence in daily living.
  (e)(1) The limitation in subsection (a) shall not apply to a 
rehabilitation program described in paragraph (2).
  (2) A rehabilitation program described in this paragraph is a 
rehabilitation program pursued by a veteran under section 
3102(b) of this title.
  (f) In any case in which the Secretary has determined that a 
veteran was prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility otherwise prescribed in this section as a result of 
being ordered to serve on active duty under section 688, 
12301(a), 12301(d), 12301(g), 12302, 12304, 12304a, or 12304b 
of title 10, such period of eligibility shall not run for the 
period of such active duty service plus four months.
  (g) Subsection (a) shall not apply to a veteran who was 
discharged or released from active military, naval, or air 
service on or after January 1, 2013.
  (h)(1) In the case of a veteran who is eligible for a 
vocational rehabilitation program under this chapter and who is 
prevented from participating in the vocational rehabilitation 
program within the period of eligibility prescribed in 
subsection (a) because of a covered reason, as determined by 
the Secretary, such period of eligibility--
          (A) shall not run during the period the veteran is so 
        prevented from participating in such program; and
          (B) shall again begin running on a date determined by 
        the Secretary that is--
                  (i) not earlier than the first day after the 
                veteran is able to resume participation in a 
                vocational rehabilitation program under this 
                chapter; and
                  (ii) not later than 90 days after that day.
  (2) In this subsection, a covered reason is--
          (A) the temporary or permanent closure of an 
        educational institution by reason of an emergency 
        situation; or
          (B) another reason that prevents the veteran from 
        participating in the vocational rehabilitation program, 
        as determined by the Secretary.
  (h) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter within the 12-year 
period of eligibility prescribed in subsection (a) due to an 
emergency situation, such 12-year period--
          (1) shall not run during the period the individual is 
        so prevented from participating such program; and
          (2) shall again begin running on the first day after 
        the individual is able to resume participation in such 
        program.

Sec. 3104. Scope of services and assistance

  (a) Services and assistance which the Secretary may provide 
under this chapter, pursuant to regulations which the Secretary 
shall prescribe, include the following:
          (1) Evaluation, including periodic reevaluations as 
        appropriate with respect to a veteran participating in 
        a rehabilitation program, of the potential for 
        rehabilitation of a veteran, including diagnostic and 
        related services (A) to determine whether the veteran 
        has an [employment handicap] employment barrier or a 
        serious [employment handicap] employment barrier and 
        whether a vocational goal is reasonably feasible for 
        such veteran, and (B) to provide a basis for planning a 
        suitable vocational rehabilitation program or a program 
        of services and assistance to improve the vocational 
        rehabilitation potential or independent living status 
        of such veteran, as appropriate.
          (2) Educational, vocational, psychological, 
        employment, and personal adjustment counseling.
          (3) An allowance and other appropriate assistance, as 
        authorized by section 3108 of this title.
          (4) A work-study allowance as authorized by section 
        3485 of this title.
          (5) Placement services to effect suitable placement 
        in employment, and postplacement services to attempt to 
        insure satisfactory adjustment in employment.
          (6) Personal adjustment and work adjustment training.
          (7)(A) Vocational and other training services and 
        assistance, including individualized tutorial 
        assistance, tuition, fees, books, supplies, handling 
        charges, licensing fees, and equipment and other 
        training materials determined by the Secretary to be 
        necessary to accomplish the purposes of the 
        rehabilitation program in the individual case.
          (B) Payment for the services and assistance provided 
        under subparagraph (A) of this paragraph shall be made 
        from funds available for the payment of readjustment 
        benefits.
          (8) Loans as authorized by section 3112 of this 
        title.
          (9) Treatment, care, and services described in 
        chapter 17 of this title.
          (10) Prosthetic appliances, eyeglasses, and other 
        corrective and assistive devices.
          (11) Services to a veteran's family as necessary for 
        the effective rehabilitation of such veteran.
          (12) Such license fees and essential equipment, 
        supplies, and minimum stocks of materials as the 
        Secretary determines to be necessary for a veteran to 
        begin self-employment and are within the criteria and 
        cost limitations that the Secretary shall prescribe in 
        regulations for the furnishing of such fees, equipment, 
        supplies, and stocks.
          (13) Travel and incidental expenses under the terms 
        and conditions set forth in section 111 of this title, 
        plus, in the case of a veteran who because of such 
        veteran's disability has transportation expenses in 
        addition to those incurred by persons not so disabled, 
        a special transportation allowance to defray such 
        additional expenses during rehabilitation, job seeking, 
        and the initial employment stage.
          (14) Special services (including services related to 
        blindness and deafness) including--
                  (A) language training, speech and voice 
                correction, training in ambulation, and one-
                hand typewriting;
                  (B) orientation, adjustment, mobility, 
                reader, interpreter, and related services; and
                  (C) telecommunications, sensory, and other 
                technical aids and devices.
          (15) Services necessary to enable a veteran to 
        achieve maximum independence in daily living.
          (16) Other incidental goods and services determined 
        by the Secretary to be necessary to accomplish the 
        purposes of a rehabilitation program in an individual 
        case.
  (b) A rehabilitation program (including individual courses) 
to be pursued by a veteran shall be subject to the approval of 
the Secretary. To the maximum extent practicable, a course of 
education or training may be pursued by a veteran as part of a 
rehabilitation program under this chapter only if the course is 
approved for purposes of chapter 30 or 33 of this title. The 
Secretary may waive the requirement under the preceding 
sentence to the extent the Secretary determines appropriate.
  (c)(1) The Secretary shall have the authority to administer 
this chapter by prioritizing the provision of services under 
this chapter based on need, as determined by the Secretary, 
including with respect to providing priority for services under 
subsection (a)(12) to veterans with the most severe service-
connected disabilities who require homebound training or self-
employment, or both homebound training and self-employment. In 
evaluating need for purposes of this subsection, the Secretary 
shall consider disability ratings, the severity of [employment 
handicaps] employment barriers, qualification for a program of 
independent living, income, and any other factor the Secretary 
determines appropriate.
  (2) Not later than 90 days before making any changes to the 
prioritization of the provision of services under this chapter 
as authorized under paragraph (1), the Secretary shall submit 
to the Committees on Veterans' Affairs of the Senate and House 
of Representatives a plan describing such changes.
  (d) The Secretary may not assist a veteran in acquiring 
adaptations to the residence of the veteran under this chapter. 
Any such assistance may be furnished only under section 2102B 
of this title.
  (e) In the case of any veteran whom the Secretary determines 
is satisfactorily following a program of employment services 
provided under subsection (a)(5) during the period of an 
emergency situation, the Secretary may pay the veteran a 
subsistence allowance, as prescribed in section 3108 of this 
title for full-time training for the type of program that the 
veteran was pursuing, for two additional months, if the 
Secretary determines that the veteran is negatively affected by 
the emergency situation.

Sec. 3105. Duration of rehabilitation programs

  (a) In any case in which the Secretary is unable to determine 
whether it currently is reasonably feasible for a veteran to 
achieve a vocational goal, the period of extended evaluation 
under section 3106(c) of this title may not exceed twelve 
months, except that such period may be extended for additional 
periods of up to six months each if the Secretary determines 
before granting any such extension that it is reasonably likely 
that, during the period of any such extension, a determination 
can be made whether the achievement of a vocational goal is 
reasonably feasible in the case of such veteran.
  (b)(1) Except as provided in paragraphs (2) and (3) and in 
subsection (c), the period of a vocational rehabilitation 
program for a veteran under this chapter following a 
determination of the current reasonable feasibility of 
achieving a vocational goal may not exceed forty-eight months, 
except that the counseling and placement and postplacement 
services described in section 3104(a)(2) and (5) of this title 
may be provided for an additional period not to exceed eighteen 
months in any case in which the Secretary determines the 
provision of such counseling and services to be necessary to 
accomplish the purposes of a rehabilitation program in the 
individual case.
  (2) The period of a vocational rehabilitation program pursued 
by a veteran under section 3102(b) of this title following a 
determination of the current reasonable feasibility of 
achieving a vocational goal may not exceed 12 months.
  (3)(A) In any case in which the Secretary determines that a 
veteran has been prevented from participating in counseling and 
placement and postplacement services described in paragraphs 
(2) and (5) of section 3104(a) of this title due to an 
emergency situation, the Secretary shall extend the period 
during which the Secretary may provide such counseling and 
placement and postplacement services for the veteran for a 
period equal to the number of months that the veteran was so 
prevented from participating in such counseling and services, 
as determined by the Secretary.
  (B) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter due to an emergency 
situation, the Secretary shall extend the period of the 
veteran's vocational rehabilitation program for a period equal 
to the number of months that the veteran was so prevented from 
participating in the vocational rehabilitation program, as 
determined by the Secretary.
  (c) The Secretary may extend the period of a vocational 
rehabilitation program for a veteran to the extent that the 
Secretary determines that an extension of such period is 
necessary to enable such veteran to achieve a vocational goal 
if the Secretary also determines--
          (1) that such veteran had previously been 
        rehabilitated to the point of employability but (A) 
        such veteran's need for further vocational 
        rehabilitation has arisen out of a worsening of such 
        veteran's service-connected disability that precludes 
        such veteran from performing the duties of the 
        occupation for which such veteran had been so 
        rehabilitated, or (B) the occupation for which such 
        veteran had been so rehabilitated is not suitable in 
        view of such veteran's current [employment handicap] 
        employment barrier and capabilities; or
          (2) under regulations which the Secretary shall 
        prescribe, that such veteran has a serious [employment 
        handicap] employment barrier and that an extension of 
        such period is necessary to accomplish the purposes of 
        a rehabilitation program for such veteran.
  (d)(1) Except as provided in paragraph (2), the period of a 
program of independent living services and assistance for a 
veteran under this chapter (following a determination by the 
Secretary that such veteran's disability or disabilities are so 
severe that the achievement of a vocational goal currently is 
not reasonably feasible) may not exceed twenty-four months.
  (2)(A) The period of a program of independent living services 
and assistance for a veteran under this chapter may exceed 
twenty-four months as follows:
          (i) If the Secretary determines that a longer period 
        is necessary and likely to result in a substantial 
        increase in the veteran's level of independence in 
        daily living.
          (ii) If the veteran served on active duty during the 
        Post-9/11 Global Operations period and has a severe 
        disability (as determined by the Secretary for purposes 
        of this clause) incurred or aggravated in such service.
  (B) In this paragraph, the term ``Post-9/11 Global Operations 
period'' means the period of the Persian Gulf War beginning on 
September 11, 2001, and ending on the date thereafter 
prescribed by Presidential proclamation or by law.
  (e)(1) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of a subsistence 
allowance and other assistance described in paragraph (2) shall 
not--
          (A) be charged against any entitlement of any veteran 
        under this chapter; or
          (B) be counted toward the aggregate period for which 
        section 3695 of this title limits an individual's 
        receipt of allowance or assistance.
  (2) The payment of the subsistence allowance and other 
assistance referred to in paragraph (1) is the payment of such 
an allowance or assistance for the period described in 
paragraph (3) to a veteran for participation in a vocational 
rehabilitation program under this chapter if the Secretary 
finds that the veteran had to suspend or discontinue 
participation in such vocational rehabilitation program as a 
result of being ordered to serve on active duty under section 
688, 12301(a), 12301(d), 12301(g), 12302, 12304, 12304a, or 
12304b of title 10.
  (3) The period for which, by reason of this subsection, a 
subsistence allowance and other assistance is not charged 
against entitlement or counted toward the applicable aggregate 
period under section 3695 of this title shall be the period of 
participation in the vocational rehabilitation program for 
which the veteran failed to receive credit or with respect to 
which the veteran lost training time, as determined by the 
Secretary.

Sec. 3106. Initial and extended evaluations; determinations regarding 
                    serious employment handicap

  (a) The Secretary shall provide any veteran who has a 
service-connected disability rated at 10 percent or more and 
who applies for benefits under this chapter with an initial 
evaluation consisting of such services described in section 
3104(a)(1) of this title as are necessary (1) to determine 
whether such veteran is entitled to and eligible for benefits 
under this chapter, and (2) in the case of a veteran who is 
determined to be entitled to and eligible for such benefits, to 
determine--
          
          (A) whether such veteran has a serious [employment 
        handicap] employment barrier, and
          
          (B) whether the achievement of a vocational goal 
        currently is reasonably feasible for such veteran if it 
        is reasonably feasible to make such determination 
        without extended evaluation.
  (b) In any case in which the Secretary has determined that a 
veteran has a serious [employment handicap] employment barrier 
and that the achievement of a vocational goal currently is 
reasonably feasible for such veteran, such veteran shall be 
provided an individualized written plan of vocational 
rehabilitation developed under section 3107(a) of this title.
  (c) In any case in which the Secretary has determined that a 
veteran has a serious [employment handicap] employment barrier 
but the Secretary is unable to determine, in an initial 
evaluation pursuant to subsection (a) of this section, whether 
or not the achievement of a vocational goal currently is 
reasonably feasible, such veteran shall be provided with an 
extended evaluation consisting of the services described in 
section 3104(a)(1) of this title, such services under this 
chapter as the Secretary determines necessary to improve such 
veteran's potential for participation in a program of services 
designed to achieve a vocational goal and enable such veteran 
to achieve maximum independence in daily living, and assistance 
as authorized by section 3108 of this title.
  (d) In any case in which the Secretary has determined that a 
veteran has a serious [employment handicap] employment barrier 
and also determines, following such initial and any such 
extended evaluation, that achievement of a vocational goal 
currently is not reasonably feasible, the Secretary shall 
determine whether the veteran is capable of participating in a 
program of independent living services and assistance under 
section 3120 of this title.
  (e) The Secretary shall in all cases determine as 
expeditiously as possible whether the achievement of a 
vocational goal by a veteran currently is reasonably feasible. 
In the case of a veteran provided extended evaluation under 
subsection (c) of this section (including any periods of 
extensions under section 3105(a) of this title), the Secretary 
shall make such determination not later than the end of such 
extended evaluation or period of extension, as the case may be. 
In determining whether the achievement of a vocational goal 
currently is reasonably feasible, the Secretary shall resolve 
any reasonable doubt in favor of determining that such 
achievement currently is reasonably feasible.
  (f) In connection with each period of extended evaluation of 
a veteran and each rehabilitation program for a veteran who is 
determined to have a serious [employment handicap] employment 
barrier, the Secretary shall assign a Department of Veterans 
Affairs employee to be responsible for the management and 
followup of the provision of all services (including 
appropriate coordination of employment assistance under section 
3117 of this title) and assistance under this chapter to such 
veteran.

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Sec. 3117. Employment assistance

  (a)(1) A veteran with a service-connected disability rated at 
10 percent or more who has participated in a vocational 
rehabilitation program under this chapter or a similar program 
under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) 
and who the Secretary has determined to be employable shall be 
furnished assistance in obtaining employment consistent with 
such veteran's abilities, aptitudes, interests, and [employment 
handicap] employment barrier, including assistance necessary to 
insure that such veteran receives the benefit of any applicable 
provisions of law or regulation providing for special 
consideration or emphasis or preference for such veteran in 
employment or training.
  (2) Assistance provided under this subsection may include--
          (A) direct placement of such veteran in employment;
          (B) utilization of employment, training, and 
        placement services under chapter 41 of this title; and
          (C) utilization of the job development and placement 
        services of (i) programs under the Rehabilitation Act 
        of 1973, (ii) the State employment service and the 
        Veterans' Employment Service of the Department of 
        Labor, (iii) the Office of Personnel Management, (iv) 
        any other public or nonprofit organization having 
        placement services available, and (v) any for-profit 
        entity in a case in which the Secretary has determined 
        that services necessary to provide such assistance are 
        available from such entity and that comparably 
        effective services are not available, or cannot be 
        obtained cost-effectively, from the entities described 
        in subclauses (i) through (iv) of this subparagraph.
  (b)(1) In any case in which a veteran has completed a 
vocational rehabilitation program for self-employment in a 
small business enterprise under this chapter, the Secretary 
shall assist such veteran in securing, as appropriate, a loan 
under subchapter IV of chapter 37 of this title and shall 
cooperate with the Small Business Administration to assist such 
veteran to secure a loan for the purchase of equipment needed 
to establish such veteran's own business and to ensure that 
such veteran receives the special consideration provided for in 
section 4(b)(1) of the Small Business Act (15 U.S.C. 
633(b)(1)).
  (2) In the case of a veteran described in paragraph (12) of 
section 3104(a) of this title who has trained under a State 
rehabilitation program with the objective of self-employment in 
a small business enterprise, the Secretary may, subject to the 
limitations and criteria provided for in such paragraph, 
provide such veteran with such supplementary equipment and 
initial stocks and supplies as are determined to be needed by 
such veteran if such supplementary equipment and initial stocks 
and supplies, or assistance in acquiring them, are not 
available through the State program or other sources.

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Sec. 3120. Program of independent living services and assistance

  (a) The Secretary may, under contracts with entities 
described in subsection (f) of this section, or through 
facilities of the Veterans Health Administration, which possess 
a demonstrated capability to conduct programs of independent 
living services for severely handicapped persons, provide, 
under regulations which the Secretary shall prescribe, programs 
of independent living services and assistance under this 
chapter, in various geographic regions of the United States, to 
veterans described in subsection (b) of this section.
  (b) A program of independent living services and assistance 
may be made available under this section only to a veteran who 
has a serious [employment handicap] employment barrier 
resulting in substantial part from a service-connected 
disability described in section 3102(1)(A)(i) of this title and 
with respect to whom it is determined under section 3106(d) or 
(e) of this title that the achievement of a vocational goal 
currently is not reasonably feasible.
  (c) The Secretary shall, to the maximum extent feasible, 
include among those veterans who are provided with programs of 
independent living services and assistance under this section 
substantial numbers of veterans described in subsection (b) of 
this section who are receiving long-term care in Department of 
Veterans Affairs hospitals and nursing homes and in nursing 
homes with which the Secretary contracts for the provision of 
care to veterans.
  (d) A program of independent living services and assistance 
for a veteran shall consist of such services described in 
section 3104(a) of this title as the Secretary determines 
necessary to enable such veteran to achieve maximum 
independence in daily living. Such veteran shall have the same 
rights with respect to an individualized written plan of 
services and assistance as are afforded veterans under section 
3107 of this title.
  (e)(1) Programs of independent living services and assistance 
shall be initiated for no more than 2,700 veterans in each 
fiscal year, and the first priority in the provision of such 
programs shall be afforded to veterans for whom the reasonable 
feasibility of achieving a vocational goal is precluded solely 
as a result of a service-connected disability.
  (2) The limitation in paragraph (1) shall not apply in any 
case in which the Secretary determines that a veteran described 
in subsection (b) has been displaced as the result of, or has 
otherwise been adversely affected in the areas covered by, a 
natural or other disaster, as determined by the Secretary.
  (f) Entities described in this subsection are (1) public or 
nonprofit agencies or organizations, and (2) for-profit 
entities in cases in which the Secretary determines that 
services comparable in effectiveness to services available from 
such an entity are not available, or cannot be obtained cost-
effectively from, public or nonprofit agencies or through 
facilities of the Veterans Health Administration.

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CHAPTER 42--EMPLOYMENT AND TRAINING OF VETERANS

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Sec. 4211. Definitions

  As used in this chapter--
  (1) The term ``special disabled veteran'' means--
          (A) a veteran who is entitled to compensation (or who 
        but for the receipt of military retired pay would be 
        entitled to compensation) under laws administered by 
        the Secretary for a disability (i) rated at 30 percent 
        or more, or (ii) rated at 10 or 20 percent in the case 
        of a veteran who has been determined under section 3106 
        of this title to have a serious [employment handicap] 
        employment barrier; or
          (B) a person who was discharged or released from 
        active duty because of service-connected disability.
  (2) The term ``veteran of the Vietnam era'' means an eligible 
veteran any part of whose active military, naval, or air 
service was during the Vietnam era.
  (3) The term ``disabled veteran'' means (A) a veteran who is 
entitled to compensation (or who but for the receipt of 
military retired pay would be entitled to compensation) under 
laws administered by the Secretary, or (B) a person who was 
discharged or released from active duty because of a service-
connected disability.
  (4) The term ``eligible veteran'' means a person who--
          (A) served on active duty for a period of more than 
        180 days and was discharged or released therefrom with 
        other than a dishonorable discharge;
          (B) was discharged or released from active duty 
        because of a service-connected disability;
          (C) as a member of a reserve component under an order 
        to active duty pursuant to section 12301(a), (d), or 
        (g), 12302, or 12304 of title 10, served on active duty 
        during a period of war or in a campaign or expedition 
        for which a campaign badge is authorized and was 
        discharged or released from such duty with other than a 
        dishonorable discharge; or
          (D) was discharged or released from active duty by 
        reason of a sole survivorship discharge (as that term 
        is defined in section 1174(i) of title 10).
  (5) The term ``department or agency'' means any agency of the 
Federal Government or the District of Columbia, including any 
Executive agency as defined in section 105 of title 5 and the 
United States Postal Service and the Postal Regulatory 
Commission, and the term ``department, agency, or 
instrumentality in the executive branch'' includes the United 
States Postal Service and the Postal Regulatory Commission.
  (6) The term ``recently separated veteran'' means any veteran 
during the three-year period beginning on the date of such 
veteran's discharge or release from active duty.

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