[House Report 119-308]
[From the U.S. Government Publishing Office]


119th Congress }                                       { Report
                        HOUSE OF REPRESENTATIVES
  1st Session  }                                       { 119-308

======================================================================
 
               VETERANS EDUCATION AND TECHNICAL SKILLS 
                      OPPORTUNITY ACT OF 2025

                                _______
                                

 September 26, 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

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1458]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 1458) to amend title 38, United States Code, to 
modify the criteria for approval of certain independent study 
programs for purposes of the educational assistance programs of 
the Department of Veterans Affairs, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Bill.............................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     7
Subcommittee Consideration.......................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Statement of General Performance Goals and Objectives............     8
Earmarks and Tax and Tariff Benefits.............................     8
Committee Cost Estimate..........................................     8
Budget Authority and Congressional Budget Office Estimate........     9
Federal Mandates Statement.......................................    12
Advisory Committee Statement.....................................    12
Applicability to Legislative Branch..............................    12
Statement on Duplication of Federal Programs.....................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill, as Reported............    13
Minority Views...................................................    28

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Veterans Education and Technical 
Skills Opportunity Act of 2025'' or the ``VETS Opportunity Act of 
2025''.

SEC. 2. REPAYMENT OF MEMBERS OF THE ARMED FORCES FOR CONTRIBUTIONS 
                    TOWARDS POST-9/11 EDUCATIONAL ASSISTANCE: TIMING; 
                    MECHANISM FOR INDIVIDUALS NOT ELIGIBLE FOR A 
                    MONTHLY HOUSING STIPEND.

  (a) In General.--Subsection (f) of section 3327 of title 38, United 
States Code, is amended--
          (1) in paragraph (3), by striking ``together'' and all that 
        follows through ``before'' and inserting ``not later than 60 
        days after''; and
          (2) by adding at the end the following new paragraph:
          ``(4) Additional assistance for an individual not eligible 
        for a monthly housing stipend.--In the case of an individual 
        making an election under subsection (a) who is described by 
        subparagraph (A), (C), or (E) of paragraph (1) of that 
        subsection, and who is not eligible for a monthly stipend 
        payable under section 3313(c) of this title, the educational 
        assistance payable to the individual under this chapter shall 
        be paid--
                  ``(A) in a lump sum calculated by multiplying--
                          ``(i) the total amount of contributions 
                        described in paragraph (1)(A) with regards to 
                        such individual; and
                          ``(ii) the sum of the number of months 
                        described in subclauses (I) and (II) of 
                        paragraph (1)(B)(i) with regards to such 
                        individual; and
                  ``(B) to the individual not later than 60 days after 
                the exhaustion of the individual's entitlement to 
                educational assistance under this chapter.''.
  (b) Technical Corrections and Conforming Amendment.--Such subsection 
is further amended--
          (1) by striking ``paragraphs (2) through (7)'' and inserting 
        ``paragraphs (2) through (6)''; and
          (2) in paragraph (1), in the heading, by inserting ``for an 
        individual eligible for a monthly housing stipend'' after 
        ``Additional assistance''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2025.

SEC. 3. TREATMENT OF CERTAIN INDEPENDENT STUDY PROGRAMS UNDER 
                    EDUCATIONAL ASSISTANCE PROGRAMS OF DEPARTMENT OF 
                    VETERANS AFFAIRS.

  (a) In General.--Section 3680A(a)(4)(A)(ii)(III) of such title is 
amended--
          (1) by inserting ``that requires regular and substantive 
        interaction between students and instructors'' after ``course 
        of study'';
          (2) in item (aa), by striking ``; or'' and inserting a 
        semicolon;
          (3) in item (bb), by striking ``; and'' and inserting ``; 
        or''; and
          (4) by adding at the end by following new item:
                                          ``(cc) an institution of 
                                        higher education, as such term 
                                        is defined in section 102 of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1002), that is 
                                        approved to participate or 
                                        participating in the student 
                                        financial assistance programs 
                                        authorized by title IV of that 
                                        Act; and''.
  (b) Applicability.--The amendment made by subsection (a) shall apply 
with respect to a quarter, semester, or term, as applicable, that 
begins on or after August 1, 2025.

SEC. 4. ABSENCE FROM CERTAIN EDUCATION DUE TO CERTAIN SERVICE.

  (a) Options.--Section 3691A of such title is amended by striking 
paragraph (1) of subsection (a) and inserting the following:
  ``(1) A covered member may, after receiving orders to enter a period 
of covered service--
          ``(A) withdraw from covered education;
          ``(B) take a leave of absence from covered education; or
          ``(C) subject to subsection (d), enter into an agreement with 
        the institution concerned to complete a course of covered 
        education to the satisfaction of such institution concerned.''.
  (b) Conforming Amendment.--Such subsection is further amended, in 
paragraph (2)(A), by striking ``or takes a leave of absence'' and 
inserting ``, takes a leave of absence, or enters into an agreement''.
  (c) Agreement.--Such section is further amended--
          (1) by redesignating subsection (d) as subsection (e); and
          (2) by inserting, after subsection (c), the following new 
        subsection (d):
  ``(d) Agreement With Institution Concerned.--A covered member may 
enter into an agreement under subsection (a) only if the covered member 
has completed at least half of a course of covered education.''.
  (d) Section Heading.--Such section is further amended by striking the 
heading and inserting ``Absence from certain education due to certain 
service''.
  (e) Table of Sections.--The table of sections at the beginning of 
chapter 36 of such title is amended by striking the item relating to 
section 3691A and inserting the following new item:

``3691A. Absence from certain education due to certain service.''.

SEC. 5. DEPARTMENT OF VETERANS AFFAIRS COMPLIANCE SURVEYS.

  Section 3693 of such title is amended--
          (1) in subsection (c)--
                  (A) by striking ``not more than 10 business days of 
                notice'';
                  (B) by striking ``this section.'' and inserting 
                ``this section--''; and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(1) in the case of an educational institution or training 
        establishment with a time stamp database collection feature, 
        not fewer than 10, and not more than 15, business days of 
        notice; and
          ``(2) in the case of any other educational institution or 
        training establishment, not more than 10 business days of 
        notice.''; and
          (2) by striking subsection (d) and inserting the following 
        new subsection (d):
  ``(d) Definitions.--In this section:
          ``(1) The terms `educational institution' and `training 
        establishment' have the meanings given such terms in section 
        3452 of this title.
          ``(2) The term `school certifying official' means an employee 
        of an educational institution with primary responsibility for 
        certifying veteran enrollment at the educational 
        institution.''.

SEC. 6. NOTIFICATION OF SCHOOL CERTIFYING OFFICIALS OF HANDBOOK 
                    UPDATES.

  (a) In General.--Not later than 14 business days after updating the 
school certifying official handbook of the Department of Veterans 
Affairs, the Secretary of Veterans Affairs shall provide notice to all 
school certifying officials of such update.
  (b) School Certifying Official Defined.--The term ``school certifying 
official'' means an employee of an educational institution with primary 
responsibility for certifying veteran enrollment at the educational 
institution.

SEC. 7. EXTENSION OF CERTAIN LIMITS ON PAYMENTS OF PENSION.

  Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``November 30, 2031'' and inserting ``March 31, 2033''.

                          Purpose and Summary

    H.R. 1458, as amended, the ``Veterans Education and 
Technical Skills Opportunity Act of 2025'' or the ``VETS 
Opportunity Act of 2025'', was introduced by Rep. Juan 
Ciscomani of Arizona on February 21, 2025. The bill would 
expand the GI Bill benefits program to allow both in-person and 
hybrid independent study programs for veterans using their 
education benefits to increase opportunities for veterans' 
education after service. The bill, as amended, also includes 
the text of H.R. 1527 and H.R. 1872.
    H.R. 1527, as amended, the ``Reforming Education for our 
Veterans Act'' would allow a school to enter into an agreement 
with a student veteran serving in the National Guard or 
Reserves who receives orders for duty, to work to achieve a 
grade instead of receiving an incomplete for a class. 
Additionally, this legislation would increase the number of 
days of notice given to a school before a compliance survey to 
15 business days for certain institutions. Finally, the 
legislation would require the Department of Veterans Affairs 
(VA) to notify School Certifying Officials (SCO's) no later 
than 14 business days after it modifies the SCO handbook for 
the delivery of education benefits.
    H.R. 1872, as amended, the ``Fairness in Veterans' 
Education Act'' would amend Title 38, United States Code, to 
ensure the Secretary of Veterans Affairs repays members of the 
Armed Forces for certain contributions made by such 
servicemembers towards post-9/11 Educational Assistance. This 
bill would also allow about 25,000 servicemembers and veterans 
who were previously ineligible to be reimbursed for the $1,200 
they are due.
    Finally, the bill would provide an offset for the cost of 
the changes the bill by extending the expiration date of 
current law (38 U.S.C. Sec. Sec. 5503(d)(7)) which limits the 
payment of pension to veterans without a spouse or child, 
receiving domiciliary care in a VA-furnished nursing facility.

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``VETS Opportunity Act of 
2025.''

Section 2: Repayment of Members of the Armed Forced for Contributions 
        Towards Post 9/11 Educational Assistance: Timing, Mechanism for 
        Individuals Not Eligible For a Monthly Husing Stipend

    When a servicemember chooses the Montgomery GI Bill 
education benefit while on active duty, the servicemember pays 
$1,200 over the course of a year to be fully eligible for the 
benefit. That individual can later choose to switch to the 
post-9/11 GI Bill. Currently, members of the armed forces who 
contribute to their Montgomery GI Bill, and later switch to the 
post-9/11 GI Bill and use all 36 months of entitlement, receive 
a repayment at the end of their service as part of their last 
housing stipend. Unfortunately, about 24,000 servicemembers 
have not been reimbursed for their $1,200 payments because the 
current statute limits how individuals are able to receive the 
benefit. This section would allow veterans and servicemembers 
to receive reimbursement through a lump sum payment or with 
their last monthly housing stipend. It would allow the VA to 
repay the $1,200 even if a servicemember is on active-duty and 
not currently receiving a monthly housing allowance from VA. 
The Committee is supportive of this bill to ensure every 
servicemember and veteran is able to receive their 
reimbursement for a benefit they did not end up using. The 
Committee believes it is important for servicemembers to 
receive this repayment that they are owed if they are not using 
the benefit they paid into.

Section 3: Treatment of Independent Study Programs Under Educational 
        Assistance Programs Under Educational Assistance Programs of 
        Department of Veterans Affairs

    During the COVID pandemic the availability of online 
programs increased substantially. Since then, many veterans and 
service members have taken advantage of online learning 
opportunities. Online education provides desired flexibility 
for many veterans and servicemembers with families who are 
working at a full-time job while taking online classes. The 
COVID pandemic also unlocked education opportunities to meet 
veterans where they are, not the other way around. Often, 
veterans want to take independent study programs that match 
their skill set and occupation during their time in the 
military. These independent study programs also offer an 
opportunity for veterans to use the GI Bill to advance their 
career without going through a multi-year degree. This section 
would expand the GI Bill to allow benefits to be used for both 
in-person and hybrid independent study programs. The Committee 
supports expanding options for veterans to use their GI Bill 
entitlement to advance educational opportunities and gain 
qualifications for high-paying jobs after they leave the 
military.
    Additionally, this section would modernize the GI Bill to 
adapt to how veterans are able to obtain a non-degree 
education. This would allow veterans to pursue nontraditional 
education through on-the-job training and additional 
independent study programs with GI Bill approval. However, 
these education programs would still need to have approval from 
the Department of Education (DOE), and the hybrid portion of 
any educational program would still require substantive 
interaction between the student veterans and the instructor. 
Often, these independent study offerings align with veterans' 
skills from their time in service, so it provides an 
opportunity to apply that experience and develop their skills 
for future employers.

Section 4: Absence from Certain Education Due to Certain Service

    This section would allow student veterans serving in the 
National Guard or Reserves who receive orders for military duty 
before term is completed, to work out an arrangement with the 
educational institution to achieve a grade instead of receiving 
an incomplete grade for a course. Currently, schools must 
follow guidance from the DOE and the Department of Defense 
(DoD) in administering to active duty military students when or 
if they are activated for military orders while attending a 
higher education institution. DOE currently has an outline 
under section 484C of the Higher Education Act of 1965 for 
Institutional Readmission Requirements of Servicemembers, and 
the DOD Instruction, DODi1322.25\1\ provides guidance that 
schools must adhere to.
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    Mandating that students receive an ``incomplete'' grade 
removes the academic freedom of the faculty and the 
servicemember, as the student may decide that an ``incomplete'' 
grade is not in their best interest while they serve their 
country. Oftentimes, students who withdraw for military duty 
are focused on their mission and will retake the class upon 
their return to school, as these deployments can often be long-
lasting, from 6 months to one year, depending upon the mission. 
The Committee believes it is essential to provide the 
flexibility that DoD provides to all servicemembers. If a 
student veteran is more than halfway through a course, the 
student veteran can agree with an instructor on ways to finish 
the course without receiving an incomplete grade if they choose 
to do so.

Section 5: Department of Veterans Affairs Compliance Surveys

    Compliance surveys are routine visits that State Approving 
Agencies (SAAs) conduct at different institutions. However, the 
Committee has heard that many of the compliance visits are made 
with less than 48-hours' notice and no flexibility is offered, 
even if the school certifying official (SCO) is on leave, or if 
the visit happens during the holiday season. This section would 
change the statute to allow a minimum of 10 business days for 
compliance surveys for schools with time-stamp technology that 
would ensure the records have not been tampered with. For large 
Institutions of Higher Learning (IHL) who gather large 
quantities of data, this process can take longer than the 
allotted time currently in statute. For smaller IHL's, 
oftentimes the SCOs are handling many different priorities and 
are unable to take time away from other duties because SAAs 
have given the institution a tight turnaround for a significant 
amount of data and information. The Committee is also concerned 
that institutions are dropping out of the GI Bill program 
because of the increased amount of bureaucracy Congress and VA 
has placed on institutions. The Committee believes that by 
increasing the time for a school to do a compliance survey for 
institutions that have time stamped documents, schools will 
have to deal with less bureaucracy while still preventing other 
institutions from potentially defrauding the federal 
government.

Section 6: Notification of School Certifying Officials of Handbook 
        Updates

    This section would require VA to publish the SCO handbook 
updates no later than fourteen business days after the handbook 
has been updated. The Committee believes this is important 
because in 2020, the SCO handbook was moved to an online format 
by VA. This created an issue for schools because there was 
minimal communication from VA that updates to the handbook 
would no longer be sent out. SCO's have told the Committee that 
they need to know what updates have been made to the handbook 
in order to meet VA compliance standards and avoid mistakes 
that may trigger a Risk-Based Survey or impact the delivery of 
education benefits.

Section 7: Extension of Certain Limits on Payments of Pension

    Under current law (38 U.S.C. Sec. 5503(d)), the amount of 
VA pension paid to a veteran with no spouse or child, a 
veteran's surviving spouse with no children, or a veteran's 
child, who are admitted to a VA or Medicaid sponsored nursing 
facility is capped at $90 a month. This section would cover the 
costs of the other sections of this bill by extending this cap 
from November 30, 2031, to March 31, 2033. Because they receive 
government sponsored care in a nursing home, these pension 
beneficiaries do not require the full amount of pension to 
cover their cost of living. The Committee believes this short-
term extension of the current limit on pension payments is a 
reasonable way to cover the costs associated with the other 
sections of this bill.

                                Hearings

    On March 11, 2025, the Subcommittee on Economic Opportunity 
held a legislative hearing on H.R. 1458, and other bills that 
were pending before the subcommittee.
    The following witnesses testified:
          Mr. John Bell, Executive Director of Loan Guaranty 
        Service, U.S. Department of Veterans Affairs; Mr. Nick 
        Pamperin, Executive Director, Veterans Readiness and 
        Employment, U.S. Department of Veterans Affairs; Mr. 
        Thomas J. Alphonso, Assistant Director, Policy and 
        Implementation, Veterans Benefits Administration, U.S. 
        Department of Veterans Affairs; Ms. Jill Albanese, 
        Director of Clinical Operations, U.S. Department of 
        Veterans Affairs; Ms. Kristina Keenan, Deputy Director, 
        National Legislative Service, Veterans of Foreign Wars; 
        Ms. Julie Howell, Associate Legislative Director for 
        Governmental Relations, Paralyzed Veterans of America; 
        Ms. Elizabeth Balce, Executive Vice President of 
        Servicing at Carrington Mortgage, Mortgage Bankers 
        Association; Mr. Tobias Peter, Co-Director of the 
        Housing Center, Senior Fellow, American Enterprise 
        Institute; and Mr. Will Hubbard, Vice President for 
        Veterans and Military Policy, Veterans Education 
        Success.
    The following individuals and organizations submitted 
statements for the record:
          Freedom Mortgage, Student Veterans of America, the 
        Veterans Education Project, National Association of 
        Veterans Program Administrators, National Consumer Law 
        Center, BraunAbility, National Mobility Equipment 
        Dealers Association, and the National Alliance to End 
        Homelessness.

                       Subcommittee Consideration

    On April 9, 2025, the Subcommittee on Economic Opportunity 
held a markup on the legislation included in the text of this 
bill H.R. 1458.
          An amendment in the nature of a substitute to H.R. 
        1572, offered by Representative Van Orden, to provide a 
        minimum of 10 days' notice for SCOs to prepare for 
        compliance surveys and remove a section that allowed 
        only one compliance survey for institutions with branch 
        campuses, was agreed to by voice vote. A motion to 
        favorably forward the bill offered by Ranking Member 
        Pappas was agreed to by voice vote.
          An amendment in the nature of a substitute to H.R. 
        1872, offered by Representative Van Orden, to correct 
        the section of the code included in the bill and ensure 
        servicemembers are reimbursed, was adopted by voice 
        vote. A motion to favorably forward the bill to the 
        full committee offered by Ranking Member Pappas, was 
        agreed to by voice vote.
          A motion by Representative Barrett to favorably 
        forward H.R. 1458 to the full committee was agreed to 
        by voice vote.

                        Committee Consideration

    On May 6, 2025, the full Committee met in open markup 
session, a quorum being present to consider H.R. 1458.
    During consideration of the bill an amendment in the nature 
of a substitute was offered by Chairman Bost of Illinois that 
would include H.R. 1527 and H.R. 1872 in this bill and provide 
an offset. This amendment in the nature of a substitute was 
agreed to by voice vote.
    An amendment to the amendment in the nature of a substitute 
offered by Ranking Member Takano of California was offered to 
require accredited college degree programs to use an annual 
debt to earnings ratio equal to or less than 20% to be eligible 
to participate in hybrid independent study programs. This 
amendment would require a discretionary debt-to-earnings ratio 
equal to or less than eight percent to participate in GI Bill 
funding. The amendment to the amendment in the nature of a 
substitute failed by voice vote.
    An amendment to the amendment in the nature of a substitute 
was offered by Representative Ramirez from Illinois to include 
H.R. 1423, the Guard and Reserve GI Bill Parity Act of 2025, as 
a new section of the bill. This language would not be offset 
and would include language where individuals who never 
qualified for the GI Bill by service overseas during Iraq and 
Afghanistan would receive a better GI Bill than active-duty 
servicemembers who were deployed. This amendment to the 
amendment in the nature of a substitute failed by a vote of 11 
ayes, 13 noes.
    A motion by Representative Bergman to report H.R. 1458, as 
amended, 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, one recorded vote was taken on an 
amendment to the amendment in the nature of a substitute to 
H.R. 1458.

                      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. 1458, as amended, are to improve 
and modernize GI Bill Programs to ensure they are working for 
veterans.

                  Earmarks and Tax and Tariff Benefits

    H.R. 1458, as amended, 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:




    The bill would:
           Increase certain refunds that are paid by 
        the Department of Veterans Affairs (VA) under the Post-
        9/11 GI Bill
           Expand the types of educational institutions 
        that can offer independent study courses to people who 
        are using VA benefits
           Extend the reduction of pensions that VA 
        pays to veterans and survivors residing in Medicaid 
        nursing homes
           Require VA to notify schools about changes 
        to policies concerning education benefits
    Estimated budgetary effects would mainly stem from:
           Increasing payments under education benefit 
        programs
           Reducing pension payments
    Bill summary: H.R. 1458 would make several modifications, 
specifically related to GI Bill contributions and independent 
study courses, to education benefit programs administered by 
the Department of Veterans Affairs (VA). The bill also would 
extend the reduction of pension payments from VA for veterans 
and survivors who reside in Medicaid nursing homes. Finally, 
the bill would require VA to notify schools about changes to 
policies that affect education benefits.
    Estimated Federal cost: The estimated budgetary effects of 
H.R. 1458 are shown in Table 1. The costs of the legislation 
fall within budget functions 550 (health) and 700 (veterans 
benefits and services).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1458
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       By fiscal year, millions of dollars--
                                                          ----------------------------------------------------------------------------------------------
                                                                                                                                           2025-   2025-
                                                            2025   2026   2027   2028   2029   2030   2031   2032    2033    2034   2035   2030    2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Contribution Refunds:
  Estimated Budget Authority.............................      1      5      5      4      4      3      2       1       1      1      1      22      28
  Estimated Outlays......................................      1      5      5      4      4      3      2       1       1      1      1      22      28
Independent Study:
  Estimated Budget Authority.............................      1      3      3      3      3      3      3       3       4      4      4      16      34
  Estimated Outlays......................................      1      3      3      3      3      3      3       3       4      4      4      16      34
Pensions:
  Estimated Budget Authority.............................      0      0      0      0      0      0      0     -40     -24      0      0       0     -64
  Estimated Outlays......................................      0      0      0      0      0      0      0     -40     -24      0      0       0     -64
Total Changes:
  Estimated Budget Authority.............................      2      8      8      7      7      6      5     -36     -19      5      5      38      -2
  Estimated Outlays......................................      2      8      8      7      7      6      5     -36     -19      5      5      38      -2
--------------------------------------------------------------------------------------------------------------------------------------------------------
In addition to the amounts shown here, H.R. 1458 would increase spending subjection to appropriation by less than $500,000 over the 2025-2035 period.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1458 will be enacted in fiscal year 2025 and that provisions 
will take effect upon enactment. CBO also estimates that 
outlays will follow historical spending patterns for affected 
programs.
    Direct spending: H.R. 1458 would make several changes to VA 
education benefit programs described below. The costs of those 
programs are paid from mandatory appropriations. The bill also 
would extend the reduction of pension payments for veterans and 
survivors who reside in Medicaid nursing homes. In total, the 
bill would decrease net direct spending by $2 million over the 
2025-2035 period.
    Education Benefit Reforms. Several sections of H.R. 1458 
would modify education benefit programs administered by VA. 
Those changes would increase net direct spending by $62 million 
over the 2025-2035 period.
    Contribution refunds. Under the Montgomery GI Bill (MGIB), 
service members must contribute at least $1,200 from their 
basic pay to become eligible for benefits. Contributions are 
not required for eligibility under the Post-9/11 GI Bill, which 
pays for tuition and fees and, in most cases, includes a 
monthly housing allowance. People who are eligible for both the 
MGIB and Post-9/11 GI Bill may receive a refund of their MGIB 
contributions if they received benefits--including a housing 
allowance--under the Post-9/11 GI Bill. That refund is made if 
they use all 36 months of Post-9/11 GI Bill benefits for which 
they are eligible. The refund is paid along with their last 
monthly housing payment.
    Section 2 would require VA to refund MGIB contributions to 
beneficiaries within 60 days of the last benefit payment they 
receive under the Post-9/11 GI Bill, regardless of whether they 
receive a housing allowance. Using data from VA, CBO estimates 
that, under H.R. 1458, roughly 24,000 more people would receive 
refunds over the 2025-2035 period, increasing direct spending 
by $28 million.
    Independent Study. Section 3 would allow veterans to use 
their education benefits for independent study programs offered 
by for-profit schools that are approved to participate in the 
Department of Education's financial assistance programs. 
Independent study is training through which an individual 
student and instructor meet or communicate directly to explore 
a chosen subject rather than regularly gathering in a classroom 
with a group of students. Benefits cannot be used for 
independent study programs at for-profit schools under current 
law.
    Using information from VA, CBO estimates that under this 
provision, about 150 people would use more education benefits 
each year than they would use under current law. The average 
cost of those benefits would be about $18,000 in 2025. After 
adjusting for annual inflation, those additional benefit 
payments would increase direct spending by $34 million over the 
2025-2035 period, CBO estimates.
    Activation During School. Section 4 would expand the 
options available to students using VA education benefits who 
are activated for military service during an academic term. 
Those students could agree with their schools to complete 
courses by other means if they have completed at least half of 
the courses in their program of education. Students are 
currently able to take a leave of absence if activated, after 
which schools must allow them to attempt to complete the 
academic term. Because both options enable students to complete 
their academic obligations and the section would not affect 
benefits paid for tuition and fees, CBO does not expect section 
4 to significantly change direct spending.
    Pensions. Under current law, VA reduces pension payments to 
veterans and survivors who reside in Medicaid nursing homes to 
$90 per month. That required reduction expires November 30, 
2031. Section 7 would extend that reduction for 16 months 
through March 31, 2033. CBO estimates that extending that 
requirement would reduce VA benefits by $10 million per month. 
(Those benefits are paid from mandatory appropriations and are 
therefore considered direct spending.) As a result of that 
reduction in beneficiaries' income, Medicaid would pay more of 
the cost of their care, increasing spending for that program by 
$6 million per month. Thus, enacting section 7 would reduce net 
direct spending by $64 million over the 2025-2035 period.
    Spending subject to appropriation: Section 6 would require 
VA to notify schools that participate in education benefit 
programs administered by the department of changes to policies 
that affect those programs within two weeks. CBO estimates that 
such notifications would increase spending subject to 
appropriation by less than $500,000 over the 2025-2035 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 1.
    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting H.R. 1458 would not increase net direct 
spending by more than $2.5 billion in any of the four 
consecutive 10-year periods beginning in 2036.
    CBO estimates that enacting H.R. 1458 would not increase 
on-budget deficits by more than $5 billion in any of the four 
consecutive 10-year periods beginning in 2036.
    Mandates: The bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    Estimate prepared by: Federal Costs: Paul B.A. Holland (for 
education benefits); Logan Smith (for pensions); Mandates: 
Grace Watson.
    Estimate reviewed by: David Newman, Chief, Defense, 
International Affairs, and Veterans' Affairs Cost Estimates 
Unit; Kathleen FitzGerald, Chief, Public and Private Mandates 
Unit; Christina Hawley Anthony, Deputy Director of Budget 
Analysis.
    Estimate approved by: 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. 1458, as 
amended.

                      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. 
1458, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 1458, as amended, 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. 1458, as amended, 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

    This section would establish the short title of the bill as 
the ``Veterans Education and Technical Skills Opportunity Act 
of 2025'' or the ``VETS Opportunity Act.''

Section 2: Repayment of members of the armed forced for contributions 
        towards post 9/11 educational assistance: timing, mechanism for 
        individuals not eligible for a monthly housing stipend

    This section would amend 38 U.S.C. Sec. 3327 to add in a 
new subsection (f) and strike the word together in order to 
ensure that veterans who do not receive their $1,200 refund in 
their last monthly housing allowance are able to receive it as 
a lump sum payment. Veterans who do receive this payment 
through their last monthly housing stipend would still be able 
to receive it through that process.

Section 3: Treatment of independent study programs under educational 
        assistance programs under educational assistance programs of 
        Department of Veterans Affairs

    This section would amend 38 U.S.C. 
Sec. 3680(A)(a)(4)(ii)(III) by inserting ``that requires 
regular and substantive interaction between students and 
instructors `after' ``course of study.'' This section would 
also add language identical to the language in section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 1002) for schools 
approved through Title IV. This would make it clear that to 
participate in the GI Bill a program would need to have the 
requisite amount of interaction between students and 
instructors.

Section 4: Absence from certain education due to certain service

    This section would amend 38 U.S.C. Sec. 3691A by inserting 
a new section which would allow National Guard and Reservists 
who get called into active duty and have completed more than 
half of a course to receive a grade instead of having to 
withdraw if they can work out an arrangement with the 
eductional institution to receive a grade.

Section 5: Department of Veterans Affairs compliance surveys

    This section would amend 38 U.S.C. Sec. 3693 of this title 
by striking ``not more than 10 business days' notice'' and 
inserting in ``in the case of an educational institution or 
training establishment with a time stamp database collection 
feature, not fewer than 10, and not more 10 than 15, business 
days of notice; and ``(2) in the case of any other educational 
institution or training establishment, not more than 10 
business days of notice.'' This would provide a minimum number 
of days' notice for schools and allow for more notice for 
schools that use time stamp technology to make sure that 
records cannot be tampered with. This fleibility in notice 
would allow SCOs to adjust their schedules to be able to 
complete the compliance survey.

Section 6: Notification of school certifying officials of handbook 
        updates

    This section would require VA to notify SCOs within 14 days 
of an update to the SCO handbook. The current version is not 
accessible in PDF form and is only located online. This section 
would also ensure that SCOs are aware of any updates to 
compliance.

Section 7: Extension of certain limits on payments of pension

    Section 7 would extend the limitation of pension payable to 
certain veterans, their surviving spouses, and their children 
as established in section 5503(d)(7) of title 38, United States 
Code, from November 30, 2031, to March 31, 2033.

         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 33--POST-9/11 EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3327. Election to receive educational assistance

  (a) Individuals Eligible To Elect Participation in Post-9/11 
Educational Assistance.--An individual may elect to receive 
educational assistance under this chapter if such individual--
          (1) as of August 1, 2009--
                  (A) is entitled to basic educational 
                assistance under chapter 30 of this title and 
                has used, but retains unused, entitlement under 
                that chapter;
                  (B) is entitled to educational assistance 
                under chapter 107, 1606, or 1607 of title 10 
                and has used, but retains unused, entitlement 
                under the applicable chapter;
                  (C) is entitled to basic educational 
                assistance under chapter 30 of this title but 
                has not used any entitlement under that 
                chapter;
                  (D) is entitled to educational assistance 
                under chapter 107, 1606, or 1607 of title 10 
                but has not used any entitlement under such 
                chapter;
                  (E) is a member of the Armed Forces who is 
                eligible for receipt of basic educational 
                assistance under chapter 30 of this title and 
                is making contributions toward such assistance 
                under section 3011(b) or 3012(c) of this title; 
                or
                  (F) is a member of the Armed Forces who is 
                not entitled to basic educational assistance 
                under chapter 30 of this title by reason of an 
                election under section 3011(c)(1) or 3012(d)(1) 
                of this title; and
          (2) as of the date of the individual's election under 
        this paragraph, meets the requirements for entitlement 
        to educational assistance under this chapter.
  (b) Cessation of Contributions Toward GI Bill.--Effective as 
of the first month beginning on or after the date of an 
election under subsection (a) of an individual described by 
paragraph (1)(E) of that subsection, the obligation of the 
individual to make contributions under section 3011(b) or 
3012(c) of this title, as applicable, shall cease, and the 
requirements of such section shall be deemed to be no longer 
applicable to the individual.
  (c) Revocation of Remaining Transferred Entitlement.--
          (1) Election to revoke.--If, on the date an 
        individual described in paragraph (1)(A) or (1)(C) of 
        subsection (a) makes an election under that subsection, 
        a transfer of the entitlement of the individual to 
        basic educational assistance under section 3020 of this 
        title is in effect and a number of months of the 
        entitlement so transferred remain unutilized, the 
        individual may elect to revoke all or a portion of the 
        entitlement so transferred that remains unutilized.
          (2) Availability of revoked entitlement.--Any 
        entitlement revoked by an individual under this 
        subsection shall no longer be available to the 
        dependent to whom transferred, but shall be available 
        to the individual instead for educational assistance 
        under chapter 33 of this title in accordance with the 
        provisions of this section.
          (3) Availability of unrevoked entitlement.--Any 
        entitlement described in paragraph (1) that is not 
        revoked by an individual in accordance with that 
        paragraph shall remain available to the dependent or 
        dependents concerned in accordance with the current 
        transfer of such entitlement under section 3020 of this 
        title.
  (d) Post-9/11 Educational Assistance.--
          (1) In general.--Subject to paragraph (2) and except 
        as provided in subsection (e), an individual making an 
        election under subsection (a) shall be entitled to 
        educational assistance under this chapter in accordance 
        with the provisions of this chapter, instead of basic 
        educational assistance under chapter 30 of this title, 
        or educational assistance under chapter 107, 1606, or 
        1607 of title 10, as applicable.
          (2) Limitation on entitlement for certain 
        individuals.--In the case of an individual making an 
        election under subsection (a) who is described by 
        paragraph (1)(A) of that subsection, the number of 
        months of entitlement of the individual to educational 
        assistance under this chapter shall be the number of 
        months equal to--
                  (A) the number of months of unused 
                entitlement of the individual under chapter 30 
                of this title, as of the date of the election, 
                plus
                  (B) the number of months, if any, of 
                entitlement revoked by the individual under 
                subsection (c)(1).
  (e) Continuing Entitlement to Educational Assistance Not 
Available Under Post-9/11 Educational Assistance Program.--
          (1) In general.--In the event educational assistance 
        to which an individual making an election under 
        subsection (a) would be entitled under chapter 30 of 
        this title, or chapter 107, 1606, or 1607 of title 10, 
        as applicable, is not authorized to be available to the 
        individual under the provisions of this chapter, the 
        individual shall remain entitled to such educational 
        assistance in accordance with the provisions of the 
        applicable chapter.
          (2) Charge for use of entitlement.--The utilization 
        by an individual of entitlement under paragraph (1) 
        shall be chargeable against the entitlement of the 
        individual to educational assistance under this chapter 
        at the rate of 1 month of entitlement under this 
        chapter for each month of entitlement utilized by the 
        individual under paragraph (1) (as determined as if 
        such entitlement were utilized under the provisions of 
        chapter 30 of this title, or chapter 107, 1606, or 1607 
        of title 10, as applicable).
  (f) Additional Post-9/11 Assistance for Members Having Made 
Contributions Toward GI Bill.--
          (1) Additional assistance for an individual eligible 
        for a monthly housing stipend.--In the case of an 
        individual making an election under subsection (a) who 
        is described by subparagraph (A), (C), or (E) of 
        paragraph (1) of that subsection, the amount of 
        educational assistance payable to the individual under 
        this chapter as a monthly stipend payable under 
        paragraph (1)(B) of section 3313(c) of this title, or 
        under [paragraphs (2) through (7)] paragraphs (2) 
        through (6) of that section (as applicable), shall be 
        the amount otherwise payable as a monthly stipend under 
        the applicable paragraph increased by the amount equal 
        to--
                  (A) the total amount of contributions toward 
                basic educational assistance made by the 
                individual under section 3011(b) or 3012(c) of 
                this title, as of the date of the election, 
                multiplied by
                  (B) the fraction--
                          (i) the numerator of which is--
                                  (I) the number of months of 
                                entitlement to basic 
                                educational assistance under 
                                chapter 30 of this title 
                                remaining to the individual at 
                                the time of the election; plus
                                  (II) the number of months, if 
                                any, of entitlement under 
                                chapter 30 of this title 
                                revoked by the individual under 
                                subsection (c)(1); and
                          (ii) the denominator of which is 36 
                        months.
          (2) Months of remaining entitlement for certain 
        individuals.--In the case of an individual covered by 
        paragraph (1) who is described by subsection (a)(1)(E), 
        the number of months of entitlement to basic 
        educational assistance remaining to the individual for 
        purposes of paragraph (1)(B)(i)(II) shall be 36 months.
          (3) Timing of payment.--The amount payable with 
        respect to an individual under paragraph (1) shall be 
        paid to the individual [together with the last payment 
        of the monthly stipend payable to the individual under 
        paragraph (1)(B) of section 3313(c) of this title, or 
        under paragraphs (2) through (7) of that section (as 
        applicable), before] not later than 60 days after the 
        exhaustion of the individual's entitlement to 
        educational assistance under this chapter.
          (4) Additional assistance for an individual not 
        eligible for a monthly housing stipend.--In the case of 
        an individual making an election under subsection (a) 
        who is described by subparagraph (A), (C), or (E) of 
        paragraph (1) of that subsection, and who is not 
        eligible for a monthly stipend payable under section 
        3313(c) of this title, the educational assistance 
        payable to the individual under this chapter shall be 
        paid--
                  (A) in a lump sum calculated by multiplying--
                          (i) the total amount of contributions 
                        described in paragraph (1)(A) with 
                        regards to such individual; and
                          (ii) the sum of the number of months 
                        described in subclauses (I) and (II) of 
                        paragraph (1)(B)(i) with regards to 
                        such individual; and
                  (B) to the individual not later than 60 days 
                after the exhaustion of the individual's 
                entitlement to educational assistance under 
                this chapter.
  (g) Continuing Entitlement to Additional Assistance for 
Critical Skills or Specialty and Additional Service.--An 
individual making an election under subsection (a)(1) who, at 
the time of the election, is entitled to increased educational 
assistance under section 3015(d) of this title, or section 
16131(i) of title 10, or supplemental educational assistance 
under subchapter III of chapter 30 of this title, shall remain 
entitled to such increased educational assistance or 
supplemental educational assistance in the utilization of 
entitlement to educational assistance under this chapter, in an 
amount equal to the quarter, semester, or term, as applicable, 
equivalent of the monthly amount of such increased educational 
assistance or supplemental educational assistance payable with 
respect to the individual at the time of the election.
  (h) Alternative Election by Secretary.--
          (1) In general.--In the case of an individual who, on 
        or after January 1, 2017, submits to the Secretary an 
        election under this section that the Secretary 
        determines is clearly against the interests of the 
        individual, or who fails to make an election under this 
        section, the Secretary may make an alternative election 
        on behalf of the individual that the Secretary 
        determines is in the best interests of the individual.
          (2) Notice.--If the Secretary makes an election on 
        behalf of an individual under this subsection, the 
        Secretary shall notify the individual by not later than 
        seven days after making such election and shall provide 
        the individual with a 30-day period, beginning on the 
        date of the individual's receipt of such notice, during 
        which the individual may modify or revoke the election 
        made by the Secretary on the individual's behalf. The 
        Secretary shall include, as part of such notice, a 
        clear statement of why the alternative election made by 
        the Secretary is in the best interests of the 
        individual as compared to the election submitted by the 
        individual. The Secretary shall provide the notice 
        required under this paragraph by electronic means 
        whenever possible.
  (i) Irrevocability of Elections.--An election under 
subsection (a) or (c)(1) is irrevocable.

           *       *       *       *       *       *       *


           CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

Sec.

                   SUBCHAPTER I--EMERGENCY SITUATIONS

     * * * * * * *

                SUBCHAPTER III--MISCELLANEOUS PROVISIONS

     * * * * * * *
[3691A. Withdrawal or leave of absence from certain education.]
3691A. Absence from certain education due to certain service.

           *       *       *       *       *       *       *


SUBCHAPTER III--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


Sec. 3680A. Disapproval of enrollment in certain courses

  (a) The Secretary shall not approve the enrollment of an 
eligible veteran in any of the following:
          (1) Any bartending course or personality development 
        course.
          (2) Any sales or sales management course which does 
        not provide specialized training within a specific 
        vocational field.
          (3) Any type of course which the Secretary finds to 
        be avocational or recreational in character (or the 
        advertising for which the Secretary finds contains 
        significant avocational or recreational themes) unless 
        the veteran submits justification showing that the 
        course will be of bona fide use in the pursuit of the 
        veteran's present or contemplated business or 
        occupation.
          (4) Any independent study program except--
                  (A) an independent study program (including 
                such a program taken over open circuit 
                television) that--
                          (i) is accredited by an accrediting 
                        agency or association recognized by the 
                        Secretary of Education under subpart 2 
                        of part H of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 
                        1099b);
                          (ii) leads to--
                                  (I) a standard college 
                                degree;
                                  (II) a certificate that 
                                reflects educational attainment 
                                offered by an institution of 
                                higher learning; or
                                  (III) a certificate that 
                                reflects graduation from a 
                                course of study that requires 
                                regular and substantive 
                                interaction between students 
                                and instructors offered by--
                                          (aa) an area career 
                                        and technical education 
                                        school (as defined in 
                                        subparagraphs (C) and 
                                        (D) of section 3(3) of 
                                        the Carl D. Perkins 
                                        Career and Technical 
                                        Education Act of 2006 
                                        (20 U.S.C. 2302(3))) 
                                        that provides education 
                                        at the postsecondary 
                                        level[; or];
                                          (bb) a postsecondary 
                                        vocational institution 
                                        (as defined in section 
                                        102(c) of the Higher 
                                        Education Act of 1965 
                                        (20 U.S.C. 1002(c))) 
                                        that provides education 
                                        at the postsecondary 
                                        level[; and]; or
                                          (cc) an institution 
                                        of higher education, as 
                                        such term is defined in 
                                        section 102 of the 
                                        Higher Education Act of 
                                        1965 (20 U.S.C. 1002), 
                                        that is approved to 
                                        participate or 
                                        participating in the 
                                        student financial 
                                        assistance programs 
                                        authorized by title IV 
                                        of that Act; and
                          (iii) in the case of a program 
                        described in clause (ii)(III)--
                                  (I) provides training aligned 
                                with the requirements of 
                                employers in the State or local 
                                area where the program is 
                                located, which may include in-
                                demand industry sectors or 
                                occupations;
                                  (II) provides a student, upon 
                                graduation from the program, 
                                with a recognized postsecondary 
                                credential that is recognized 
                                by employers in the relevant 
                                industry, which may include a 
                                credential recognized by 
                                industry or sector partnerships 
                                in the State or local area 
                                where the industry is located; 
                                and
                                  (III) meets such content and 
                                instructional standards as may 
                                be required to comply with the 
                                criteria under section 
                                3676(c)(14) and (15) of this 
                                title; or
                  (B) an online high technology program of 
                education (as defined in subsection (h)(2) of 
                section 3699C of this title)--
                          (i) the provider of which has entered 
                        into a contract with the Secretary 
                        under subsection (c) of such section;
                          (ii) that has been provided to 
                        covered individuals (as defined in 
                        subsection (h)(1) of such section) 
                        under such contract for a period of at 
                        least five years;
                          (iii) regarding which the Secretary 
                        has determined that the average 
                        employment rate of covered individuals 
                        who graduated from such program of 
                        education is 65 percent or higher for 
                        the year preceding such determination; 
                        and
                          (iv) that satisfies the requirements 
                        of subsection (e) of such section.
  (b) Except to the extent otherwise specifically provided in 
this title or chapter 106 of title 10, the Secretary shall not 
approve the enrollment of an eligible veteran in any course of 
flight training other than one given by an educational 
institution of higher learning for credit toward a standard 
college degree the eligible veteran is seeking.
  (c) The Secretary shall not approve the enrollment of an 
eligible veteran in any course to be pursued by radio.
  (d)(1) The Secretary shall not approve the enrollment of any 
eligible veteran, not already enrolled, in any course for any 
period during which the Secretary finds that more than 85 
percent of the students enrolled in the course are having all 
or part of their tuition, fees, or other charges paid to or for 
them by the educational institution or by the Department of 
Veterans Affairs under this title or under chapter 1606 of 
title 10, except with respect to tuition, fees, or other 
charges that are paid under a payment plan at an educational 
institution that the Secretary determines has a history of 
offering payment plans that are completed not later than 180 
days after the end of the applicable term, quarter, or 
semester.
  (2) The Secretary may waive the requirements of paragraph 
(1), in whole or in part, if the Secretary determines, pursuant 
to regulations which the Secretary shall prescribe, it to be in 
the interest of the eligible veteran and the Federal 
Government.
  (3)(A) The Secretary shall establish a process by which an 
educational institution may request a review of a determination 
that the educational institution does not meet the requirements 
of paragraph (1).
  (B) An educational institution that requests a review under 
subparagraph (A)--
          (i) shall request the review not later than 30 days 
        after the start of the term, quarter, or semester for 
        which the determination described in subparagraph (A) 
        applies; and
          (ii) may include any information that the educational 
        institution believes the Department should have taken 
        into account when making the determination, including 
        with respect to any mitigating circumstances.
  (C) The Under Secretary of Benefits shall issue an initial 
decision for each review requested under subparagraph (A) by 
not later than 30 days after the date of the request, to the 
extent feasible.
  (D) An educational institution may request the Secretary to 
review the decision by the Under Secretary under subparagraph 
(C). The Secretary shall review each decision so requested and, 
pursuant to such review, shall issue a final decision 
sustaining, modifying, or overturning the decision by the Under 
Secretary.
  (E) The Secretary shall carry out this paragraph without 
regard to any review process carried out by the Secretary under 
chapter 51 of this title.
  (4) Paragraph (1) shall not apply to any course offered by an 
educational institution if--
          (A) the majority of courses offered by the 
        educational institution are approved under section 3672 
        or 3675 of this title; and
          (B) the total number of veterans and persons 
        receiving assistance under this title or under chapter 
        1606 of title 10 who are enrolled in such institution 
        equals 35 percent or less of the total student 
        enrollment at such institution (computed separately for 
        the main campus and any branch or extension of such 
        institution).
  (5)(A) Paragraph (1) shall not apply to any course offered by 
an educational institution if--
          (i) the majority of courses offered by the 
        educational institution are approved under section 3676 
        of this title; and
          (ii) the total number of veterans and persons 
        receiving assistance under this title or under chapter 
        1606 of title 10 who are enrolled in such institution 
        equals 35 percent or less of the total student 
        enrollment at such institution (computed separately for 
        the main campus and any branch or extension of such 
        institution).
  (B) Notwithstanding subparagraph (A), on a case by case 
basis, the Secretary may apply paragraph (1) with respect to 
any course otherwise covered by such subparagraph if the 
Secretary has reason to believe that the enrollment of veterans 
and persons described in clause (ii) of such subparagraph may 
be in excess of 85 percent of the total student enrollment in 
such course.
  (6) The Secretary shall ensure that an educational 
institution that meets the requirements of paragraph (4) or (5) 
submits information to the Secretary on a biennial basis to 
verify meeting such requirements. During such biennial period 
in which an educational institution is covered by such 
verification, the Secretary may not require the educational 
institution to submit information with respect to meeting the 
requirements of paragraph (1).
  (7) Paragraph (1) shall not apply with respect to the 
enrollment of a veteran--
          (A) in a program of education for which fewer than 10 
        students are having all or part of their tuition, fees, 
        or other charges paid to or for them by the educational 
        institution or by the Department of Veterans Affairs 
        under this title or under chapter 1606 of title 10;
          (B) in a course offered pursuant to section 3019, 
        3034(a)(3), 3234, or 3241(a)(2) of this title;
          (C) in a farm cooperative training course; or
          (D) in a course described in subsection (g).
  (8) Paragraph (1) shall not apply to the enrollment of a 
veteran in an online high technology program described in 
subsection (a)(4)(B).
  (e)(1) The Secretary may not approve the enrollment of an 
eligible veteran in a course not leading to a standard college 
degree offered by a proprietary profit or proprietary nonprofit 
educational institution if--
          (A) the educational institution has been operating 
        for less than two years;
          (B) except as provided in paragraph (2),the course is 
        offered at a branch of the educational institution and 
        the branch has been operating for less than two years; 
        or
          (C) following either a change in ownership or a 
        complete move outside its original general locality, 
        the educational institution does not retain 
        substantially the same faculty, student body, and 
        courses as before the change in ownership or the move 
        outside the general locality (as determined in 
        accordance with regulations the Secretary shall 
        prescribe) unless the educational institution following 
        such change or move has been in operation for at least 
        two years.
  (2)(A) Subject to this paragraph, a commercial driver 
education program is exempt from paragraph (1)(B) for a branch 
of an educational institution if--
          (i) the commercial driver education program offered 
        at the branch by the educational institution is 
        approved for purposes of this chapter by a State 
        approving agency (or the Secretary when acting in the 
        role of a State approving agency); and
          (ii)(I) such branch is located in a State in which 
        such educational institution offers such commercial 
        driver education program at another branch of such 
        educational institution; or
          (II) such branch--
                  (aa) has been operating for at least one 
                year; and
                  (bb) offers such commercial driver education 
                program, using the same curriculum as another 
                branch of such educational institution.
  (B)(i) In order for a commercial driver education program of 
an educational institution offered at a branch described in 
paragraph (1)(B) to be exempt under subparagraph (A) of this 
paragraph, the educational institution shall submit to the 
Secretary each year that paragraph (1)(B) would otherwise apply 
a report that demonstrates that the curriculum at the new 
branch is the same as the curriculum at the primary location.
  (ii) Reporting under clause (i) shall be submitted in 
accordance with such requirements as the Secretary shall 
establish in consultation with the State approving agencies.
  (C)(i) The Secretary may withhold an exemption under 
subparagraph (A) for any educational institution or branch of 
an educational institution as the Secretary considers 
appropriate.
  (ii) In making any determination under clause (i), the 
Secretary may consult with the Secretary of Transportation on 
the performance of a provider of a commercial driver program, 
including the status of the provider within the Training 
Provider Registry of the Federal Motor Carrier Safety 
Administration when appropriate.
  (D) The Secretary shall submit to the Committees on Veterans' 
Affairs of the Senate and House of Representatives a 
notification not later than 30 days after the Secretary grants 
an exemption under subparagraph (A). Such notification shall 
identify the educational institution, and the branch thereof, 
granted such exemption.
  (f)(1) Except as provided in paragraph (2), the Secretary may 
not approve the enrollment of an eligible veteran in a course 
as a part of a program of education offered by an educational 
institution if the course is provided under contract by another 
educational institution or entity and--
          (A) the Secretary would be barred under subsection 
        (e) from approving the enrollment of an eligible 
        veteran in the course of the educational institution or 
        entity providing the course under contract; or
          (B) the educational institution or entity providing 
        the course under contract has not obtained approval for 
        the course under this chapter.
  (2)(A) In the case of a covered study-abroad course, the 
Secretary may approve the course for a period of not more than 
five years, if the contract or other written agreement under 
which the course is offered provides that--
          (i) the educational institution that offers a course 
        that is approved under this chapter agrees--
                  (I) to assume responsibility for the quality 
                and content of the covered study-abroad course; 
                and
                  (II) to serve as the certifying official for 
                the course for purposes of this chapter; and
          (ii) the educational institution that offers the 
        covered study-abroad course agrees to seek the approval 
        of the course under this chapter by not later than five 
        years after the date of the agreement.
  (B) In this paragraph, the term ``covered study-abroad 
course'' means a course that--
          (i) is provided as a part of a program of education 
        offered by an educational institution under a contract 
        or other written agreement by another educational 
        institution that offers a course that is approved under 
        this chapter;
          (ii) is provided at a location in a foreign country; 
        and
          (iii) has not been approved under this chapter.
  (g) Notwithstanding subsections (e) and (f)(1), the Secretary 
may approve the enrollment of an eligible veteran in a course 
approved under this chapter if the course is offered by an 
educational institution under contract with the Department of 
Defense or the Department of Homeland Security and is given on 
or immediately adjacent to a military base, Coast Guard 
station, National Guard facility, or facility of the Selected 
Reserve.
  (h) In this section, the terms ``State or local area'', 
``recognized postsecondary credential'', ``industry or sector 
partnership'', and ``in-demand industry sector or occupation'' 
have the meaning given such terms in section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102).

           *       *       *       *       *       *       *


Sec. 3691A. [Withdrawal or leave of absence from certain education]  
                    Absence from certain education due to certain 
                    service

  (a) In General.--[(1) A covered member may, after receiving 
orders to enter a period of covered service, withdraw or take a 
leave of absence from covered education.] (1) A covered member 
may, after receiving orders to enter a period of covered 
service--
          (A) withdraw from covered education;
          (B) take a leave of absence from covered education; 
        or
          (C) subject to subsection (d), enter into an 
        agreement with the institution concerned to complete a 
        course of covered education to the satisfaction of such 
        institution concerned. 
  (2)(A) The institution concerned may not take any adverse 
action against a covered member on the basis that such covered 
member withdraws [or takes a leave of absence], takes a leave 
of absence, or enters into an agreement under paragraph (1).
  (B) Adverse actions under subparagraph (A) include the 
following:
          (i) The assignment of a failing grade to a covered 
        member for covered education.
          (ii) The reduction of the grade point average of a 
        covered member for covered education.
          (iii) The characterization of any absence of a 
        covered member from covered education as unexcused.
          (iv) The assessment of any financial penalty against 
        a covered member.
  (b) Withdrawal.--If a covered member withdraws from covered 
education under subsection (a), the institution concerned shall 
refund all tuition and fees (including payments for housing) 
for the academic term from which the covered member withdraws.
  (c) Leave of Absence.--If a covered member takes a leave of 
absence from covered education under subsection (a), the 
institution concerned shall--
          (1) assign a grade of ``incomplete'' (or equivalent) 
        to the covered member for covered education for the 
        academic term from which the covered member takes such 
        leave of absence; and
          (2) to the extent practicable, permit the covered 
        member, upon completion of the period covered service, 
        to complete such academic term.
  (d) Agreement With Institution Concerned.--A covered member 
may enter into an agreement under subsection (a) only if the 
covered member has completed at least half of a course of 
covered education.
  [(d)] (e) Definitions.--In this section:
          (1) The term ``covered education'' means a course of 
        education--
                  (A) at an institution of higher education; 
                and
                  (B) paid for with educational assistance 
                furnished under a law administered by the 
                Secretary.
          (2) The term ``covered member'' means a member of the 
        Armed Forces (including the reserve components) 
        enrolled in covered education.
          (3) The term ``covered service'' means--
                  (A) active service or inactive-duty training, 
                as such terms are defined in section 101 of 
                title 10; or
                  (B) State active duty, as defined in section 
                4303 of this title.
          (4) The term ``institution concerned'' means, with 
        respect to a covered member, the institution of higher 
        education where the covered member is enrolled in 
        covered education.
          (5) The term ``institution of higher education'' has 
        the meaning given such term in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001).
          (6) The term ``period of covered service'' means the 
        period beginning on the date on which a covered member 
        enters covered service and ending on the date on which 
        the covered member is released from covered service or 
        dies while in covered service.

           *       *       *       *       *       *       *


Sec. 3693. Compliance surveys

  (a)(1) Except as provided in subsection (b), the Secretary 
shall conduct an annual compliance survey of educational 
institutions and training establishments offering one or more 
courses approved for the enrollment of eligible veterans or 
persons if at least 20 such veterans or persons are enrolled in 
any such course. The Secretary shall--
          (A) design the compliance surveys to ensure that such 
        institutions or establishments, as the case may be, and 
        approved courses are in compliance with all applicable 
        provisions of chapters 30 through 36 of this title;
          (B) survey each such educational institution and 
        training establishment not less than once during every 
        2-year period; and
          (C) assign not fewer than 1 education compliance 
        specialist to work on compliance surveys in any year 
        for each 40 compliance surveys required to be made 
        under this section for such year.
  (2) The Secretary, in consultation with the State approving 
agencies, shall--
          (A) annually determine the parameters of the surveys 
        required under paragraph (1); and
          (B) not later than September 1 of each year, make 
        available to the State approving agencies a list of the 
        educational institutions and training establishments 
        that will be surveyed during the fiscal year following 
        the date of making such list available.
  (b) The Secretary may waive the requirement in subsection 
(a)(1) for a compliance survey with respect to an educational 
institution or training establishment if the Secretary 
determines, based on the record of compliance of such 
institution or establishment with all the applicable provisions 
of chapters 30 through 36 of this title, that the waiver would 
be appropriate and in the best interest of the United States 
Government.
  (c) To the maximum extent feasible, the Secretary, or a State 
approving agency, as applicable, shall provide [not more than 
10 business days of notice] to an educational institution or 
training establishment before conducting a compliance survey of 
the institution or establishment under [this section.] this 
section--
          (1) in the case of an educational institution or 
        training establishment with a time stamp database 
        collection feature, not fewer than 10, and not more 
        than 15, business days of notice; and
          (2) in the case of any other educational institution 
        or training establishment, not more than 10 business 
        days of notice.
  [(d) In this section, the terms ``educational institution'' 
and ``training establishment'' have the meanings given such 
terms in section 3452 of this title.]
  (d) Definitions.--In this section:
          (1) The terms ``educational institution'' and 
        ``training establishment'' have the meanings given such 
        terms in section 3452 of this title.
          (2) The term ``school certifying official'' means an 
        employee of an educational institution with primary 
        responsibility for certifying veteran enrollment at the 
        educational institution.

           *       *       *       *       *       *       *


PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

           *       *       *       *       *       *       *


Sec. 5503. Hospitalized veterans and estates of incompetent 
                    institutionalized veterans

  (a)(1)(A) Where any veteran having neither spouse nor child 
is being furnished domiciliary care by the Department, no 
pension in excess of $90 per month shall be paid to or for the 
veteran for any period after the end of the third full calendar 
month following the month of admission for such care.
  (B) Except as provided in subparagraph (D) of this paragraph, 
where any veteran having neither spouse nor child is being 
furnished nursing home care by the Department, no pension in 
excess of $90 per month shall be paid to or for the veteran for 
any period after the end of the third full calendar month 
following the month of admission for such care. Any amount in 
excess of $90 per month to which the veteran would be entitled 
but for the application of the preceding sentence shall be 
deposited in a revolving fund at the Department medical 
facility which furnished the veteran nursing care, and such 
amount shall be available for obligation without fiscal year 
limitation to help defray operating expenses of that facility.
  (C) No pension in excess of $90 per month shall be paid to or 
for a veteran having neither spouse nor child for any period 
after the month in which such veteran is readmitted for care 
described in subparagraph (A) or (B) of this paragraph and 
furnished by the Department if such veteran is readmitted 
within six months of a period of care in connection with which 
pension was reduced pursuant to subparagraph (A) or (B) of this 
paragraph.
  (D) In the case of a veteran being furnished nursing home 
care by the Department and with respect to whom subparagraph 
(B) of this paragraph requires a reduction in pension, such 
reduction shall not be made for a period of up to three 
additional calendar months after the last day of the third 
month referred to in such subparagraph if the Secretary 
determines that the primary purpose for the furnishing of such 
care during such additional period is for the Department to 
provide such veteran with a prescribed program of 
rehabilitation services, under chapter 17 of this title, 
designed to restore such veteran's ability to function within 
such veteran's family and community. If the Secretary 
determines that it is necessary, after such period, for the 
veteran to continue such program of rehabilitation services in 
order to achieve the purposes of such program and that the 
primary purpose of furnishing nursing home care to the veteran 
continues to be the provision of such program to the veteran, 
the reduction in pension required by subparagraph (B) of this 
paragraph shall not be made for the number of calendar months 
that the Secretary determines is necessary for the veteran to 
achieve the purposes of such program.
  (2) The provisions of paragraph (1) shall also apply to a 
veteran being furnished such care who has a spouse but whose 
pension is payable under section 1521(b) of this title. In such 
a case, the Secretary may apportion and pay to the spouse, upon 
an affirmative showing of hardship, all or any part of the 
amounts in excess of the amount payable to the veteran while 
being furnished such care which would be payable to the veteran 
if pension were payable under section 1521(c) of this title.
  (b) Notwithstanding any other provision of this section or 
any other provision of law, no reduction shall be made in the 
pension of any veteran for any part of the period during which 
the veteran is furnished hospital treatment, or institutional 
or domiciliary care, for Hansen's disease, by the United States 
or any political subdivision thereof.
  (c) Where any veteran in receipt of an aid and attendance 
allowance described in subsection (r) or (t) of section 1114 of 
this title is hospitalized at Government expense, such 
allowance shall be discontinued from the first day of the 
second calendar month which begins after the date of the 
veteran's admission for such hospitalization for so long as 
such hospitalization continues. Any discontinuance required by 
administrative regulation, during hospitalization of a veteran 
by the Department, of increased pension based on need of 
regular aid and attendance or additional compensation based on 
need of regular aid and attendance as described in subsection 
(l) or (m) of section 1114 of this title, shall not be 
effective earlier than the first day of the second calendar 
month which begins after the date of the veteran's admission 
for hospitalization. In case a veteran affected by this 
subsection leaves a hospital against medical advice and is 
thereafter admitted to hospitalization within six months from 
the date of such departure, such allowance, increased pension, 
or additional compensation, as the case may be, shall be 
discontinued from the date of such readmission for so long as 
such hospitalization continues.
  (d)(1) For the purposes of this subsection--
          (A) the term ``Medicaid plan'' means a State plan for 
        medical assistance referred to in section 1902(a) of 
        the Social Security Act (42 U.S.C. 1396a(a)); and
          (B) the term ``nursing facility'' means a nursing 
        facility described in section 1919 of such Act (42 
        U.S.C. 1396r), other than a facility that is a State 
        home with respect to which the Secretary makes per diem 
        payments for nursing home care pursuant to section 
        1741(a) of this title.
  (2) If a veteran having neither spouse nor child is covered 
by a Medicaid plan for services furnished such veteran by a 
nursing facility, no pension in excess of $90 per month shall 
be paid to or for the veteran for any period after the month of 
admission to such nursing facility.
  (3) Notwithstanding any provision of title XIX of the Social 
Security Act, the amount of the payment paid a nursing facility 
pursuant to a Medicaid plan for services furnished a veteran 
may not be reduced by any amount of pension permitted to be 
paid such veteran under paragraph (2) of this subsection.
  (4) A veteran is not liable to the United States for any 
payment of pension in excess of the amount permitted under this 
subsection that is paid to or for the veteran by reason of the 
inability or failure of the Secretary to reduce the veteran's 
pension under this subsection unless such inability or failure 
is the result of a willful concealment by the veteran of 
information necessary to make a reduction in pension under this 
subsection.
  (5)(A) The provisions of this subsection shall apply with 
respect to a surviving spouse having no child in the same 
manner as they apply to a veteran having neither spouse nor 
child.
  (B) The provisions of this subsection shall apply with 
respect to a child entitled to pension under section 1542 of 
this title in the same manner as they apply to a veteran having 
neither spouse nor child.
  (6) The costs of administering this subsection shall be paid 
for from amounts available to the Department of Veterans 
Affairs for the payment of compensation and pension.
  (7) This subsection expires on [November 30, 2031] March 31, 
2033.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    While we strongly support expanding educational access for 
our nation's veterans, we have concerns with some unintended 
consequences that H.R. 1458 may cause as currently drafted.
    Specifically, Section 3 of the bill, which would authorize 
the use of Post-9/11 GI Bill benefits for independent study 
programs taught at non-degree-granting, for-profit 
institutions, might be used by predatory operators to target 
veterans with subpar programs and rob them of the benefits they 
have so rightfully earned. While the Committee believes student 
veterans should have the freedom to pursue higher education in 
the manner that is most effective for them, H.R. 1458 risks 
exposing student veterans to unnecessary risks. With the U.S. 
Department of Education's ability to provide oversight in 
jeopardy, expanding program approvals for new programs now is 
misguided.
    The GI Bill is one of the most important tools we have to 
support the long-term success and economic mobility of 
veterans. With that comes a responsibility to ensure that the 
programs we approve for GI Bill funding are high-quality, 
accountable, and lead to meaningful employment. H.R. 1458, 
while well-intentioned, opens the door for a surge in non-
degree-granting, for-profit providers seeking to enroll 
veterans in high-cost, low-quality programs that, in the vast 
majority of cases, would not deliver on their promises. The 
lack of minimal quality assurance mechanisms for non-degree 
programs is what led to congressional action to exclude them 
from eligibility for the Department of Defense's Tuition 
Assistance Program in 2013.\1\
---------------------------------------------------------------------------
    \1\National Defense Authorization Act of 2014, Pub. L. 113-66, Sec. 
541 (2013).
---------------------------------------------------------------------------
    H.R. 1458 compounds the risks associated with non-degree 
programs with the additional fraud pathways inherent to 
independent study, which is the paradigmatic cash-cow offering 
for most providers because it eliminates their most costly (and 
most impactful) contribution to students' education, i.e., 
qualified teachers and actual instruction. Many independent 
study programs lack transparent data on graduation rates, 
employment outcomes, or credential value. For example, we have 
seen examples of independent study programs repurposing free 
web seminars on YouTube as their own training and then having 
unqualified staff ``lead'' the class. A student veteran from 
Florida said of his program, ``The videos were outdated, 
obsolete, and did not even follow along with the materials we 
had been given.''\2\
---------------------------------------------------------------------------
    \2\Veteran Education Success (VES) provided examples of student 
complaints to the Committee in September 2022.
---------------------------------------------------------------------------
    Another student veteran in Virginia complained about her 
program's quality to an official at the school, saying, ``You 
told me and several students that the instructor is not there 
to instruct us and we should study the courses on YouTube. 
Also, most of your materials are outdated and are not included 
in the exams.''\3\
---------------------------------------------------------------------------
    \3\Veteran Education Success intake of student complaints, October 
2021.
---------------------------------------------------------------------------
    Further, a student veteran in Ohio shared, ``The school 
offered us a program to certify as a Microsoft Certified 
Systems Engineer and we would need to take 3 courses to start . 
. . [R]esearching the classes that we took, none of them are 
requirement classes for the Microsoft certification and in fact 
Microsoft has retired the Certified Systems Engineer 
certification altogether as a ``Legacy'' certification.''\4\
---------------------------------------------------------------------------
    \4\Veteran Education Success intake of student complaints, July 
2022.
---------------------------------------------------------------------------
    While the requirement for an institution to provide 
``regular and substantive interaction between students and 
instructors'' would provide a meaningful guardrail for 
legitimate providers who voluntarily comply with the law, the 
Committee Democrats believe further work is necessary to 
provide a sufficient quality control mechanism for predatory 
providers who can easily sidestep its intent through 
performative compliance. Without strong and enforceable 
guardrails, the Department of Veterans Affairs will struggle to 
prevent waste, fraud, and abuse--at the expense of the very 
veterans we aim to serve.
    Veterans deserve the widest possible array of educational 
opportunities--but not at the cost of diminished quality, 
oversight, or value.

                                               Mark Takano,
                                                    Ranking Member.

                                  [all]