[Federal Register Volume 64, Number 93 (Friday, May 14, 1999)]
[Rules and Regulations]
[Pages 26297-26298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12203]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ38


Reservists' Education: Increase in Educational Assistance Rates

AGENCIES: Department of Defense, Department of Transportation (Coast 
Guard), and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: By statute the monthly rates of basic educational assistance 
payable to reservists under the Montgomery GI Bill--Selected Reserve 
must be adjusted each fiscal year in accordance with a statutory 
formula. The Veterans Benefits Act of 1998 provides a rate increase of 
approximately 20% that supersedes the otherwise applicable statutory 
annual adjustment for Fiscal Year 1999 (October 1, 1998, through 
September 30, 1999). The regulations governing rates of basic 
educational assistance payable under the Montgomery GI Bill--Selected 
Reserve are changed to show the rates indicated in the Act for Fiscal 
Year 1999. By statute, regular annual adjustments to these rates will 
resume commencing with Fiscal Year 2000.

DATES: Effective Date: This final rule is effective May 14, 1999.
    Applicability Date: The changes in rates are applicable October 1, 
1998, to conform with statutory requirements. For more information 
concerning the dates of application, see the

SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
Adviser, Education Service, Veterans Benefits Administration, (202) 
273-7187.

SUPPLEMENTARY INFORMATION: As provided by the Veterans Benefits Act of 
1998 (Pub. L. 105-178, Title VIII, Subtitle B), the rates of basic 
educational assistance under the Montgomery GI Bill--Selected Reserve 
payable to students pursuing a program of education full time must be 
increased by approximately 20% effective October 1, 1998. This final 
rule changes the regulations to reflect the statutory changes made by 
section 8203(b) of Pub. L. 105-178.
    10 U.S.C. 16131(b) requires that the full-time, three-quarter-time, 
and half-time rates for institutional training be increased as noted 
above. These increased rates result in proportionate increases in the 
benefits payable for other types of training whose rates are based on 
the institutional training rates. For example, monthly rates payable to 
reservists in apprenticeship or other on-job training are set by 
statute at a given percentage of the full-time institutional rate.
    10 U.S.C. 16131(b) requires that the Department of Veterans Affairs 
(VA) pay less-than-half-time students at appropriately reduced rates. 
Since payment for less-than-half-time training became available under 
the Montgomery GI Bill--Selected Reserve in Fiscal Year 1990, VA has 
paid less-than-half-time students at 25% of the full-time institutional 
rate for pursuit of a program of education. This final rule sets forth 
changes in rates consistent with the authority and formula described in 
this paragraph.
    Nonsubstantive changes also are made for the purpose of clarity.
    The changes set forth in this final rule are effective from the 
date of publication, but the changes in rates are applied retroactively 
from October 1, 1998, as set out in the regulations, in accordance with 
the applicable statutory provisions discussed above.
    Substantive changes made by this final rule merely reflect 
statutory requirements and adjustments made based on previously 
established formulas. Accordingly, there is a basis for dispensing with 
prior notice and comment and delayed effective date provisions of 5 
U.S.C. 552 and 553.
    The Secretary of Defense, the Commandant of the Coast Guard, and 
the Secretary of Veterans Affairs hereby certify that this final rule 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. This final rule directly affects only individuals and 
does not directly affect small entities. Pursuant to 5 U.S.C. 605(b), 
this final rule, therefore, is exempt from the initial and final 
regulatory flexibility analyses requirements of sections 603 and 604.
    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this final rule.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Defense 
Department, Education, Employment, Grant programs-education, Grant 
programs-veterans, Health programs, Loan programs-education, Loan 
programs-veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: March 4, 1999.
Togo D. West, Jr.,
Secretary of Veterans Affairs.

    Approved: March 26, 1999.
Charles L. Cragin,
Acting Assistant Secretary of Defense for Reserve Affairs.

    Approved: April 6, 1999.
F.L. Ames,
Rear Admiral, U.S. Coast Guard Assistant Commandant for Human 
Resources.

    For the reasons set out above, 38 CFR part 21, subpart L is amended 
as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected 
Reserve

    1. The authority citation for part 21, subpart L is revised to read 
as follows:

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36, 
unless otherwise noted.

    2. In Sec. 21.7636, paragraphs (a)(1), (a)(2)(i), and (a)(3) are 
revised to read as follows:

[[Page 26298]]

Sec. 21.7636  Rates of payment.

    (a) Monthly rate of educational assistance. (1) Except as otherwise 
provided in this section or in Sec. 21.7639, the monthly rate of 
educational assistance payable for training that occurs after September 
30, 1998, and before October 1, 1999, to a reservist pursuing a program 
of education is the amount stated in this table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $251.00
\3/4\ time...................................................     188.00
\1/2\ time...................................................     125.00
\1/4\ time...................................................      62.75
------------------------------------------------------------------------

    (2) The monthly rate of basic educational assistance payable to a 
reservist for apprenticeship or other on-the-job training full time 
that occurs after September 30, 1998, and before October 1, 1999, is 
the rate stated in this table:
    (i)

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training......................    $188.25
Second six months of pursuit of training.....................     136.05
Remaining pursuit of training................................      87.85
------------------------------------------------------------------------

* * * * *
    (3) The monthly rate of educational assistance payable to a 
reservist for pursuit of a cooperative course after September 30, 1998, 
and before October 1, 1999, is the rate stated in paragraph (a)(1) of 
this section for full-time training during that period of time.

(Authority: 10 U.S.C. 16131(b), (c); sec. 8203(b), Pub. L. 105-178, 
112 Stat. 493-494)
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[FR Doc. 99-12203 Filed 5-13-99; 8:45 am]
BILLING CODE 8320-01-P