[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] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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) * * * * * [FR Doc. 99-12203 Filed 5-13-99; 8:45 am] BILLING CODE 8320-01-P