[Federal Register Volume 65, Number 140 (Thursday, July 20, 2000)]
[Rules and Regulations]
[Pages 44979-44981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18326]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ89


Increase in Rates Payable Under the Montgomery GI Bill--Active 
Duty

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: By statute, the monthly rates of basic educational assistance 
payable to veterans under the Montgomery GI Bill--Active Duty must be 
adjusted each fiscal year. In accordance with the statutory formula, 
the regulations governing rates of basic educational assistance payable 
under the Montgomery GI Bill--Active Duty for fiscal year 2000 (October 
1, 1999, through September 30, 2000) are changed to show a 1.6% 
increase in these rates.

DATES: Effective Date: This final rule is effective July 20, 2000.
    Applicability: However, the changes in rates are applied 
retroactively to conform to statutory requirements. For more 
information concerning the dates applicability, see the SUPPLEMENTARY 
INFORMATION section.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
Advisor, Education Service (225C), Veterans Benefits Administration, 
Department of Veterans Affairs, (202) 273-7187.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C. 
3015(g) for fiscal year 2000, the rates of basic educational assistance 
under the Montgomery GI Bill--Active Duty payable to students pursuing 
a program of education full time must be increased by 1.6%, which is 
the percentage by which the total of the monthly Consumer Price Index-W 
for July 1, 1998, through June 30, 1999, exceeds the total of the 
monthly Consumer Price Index-W for July 1, 1997, through June 30, 1998.
    It should be noted that some veterans will receive an increase in 
monthly payments that will be less than 1.6%. The increase does not 
apply to additional amounts payable by the Secretary of Defense to 
individuals with skills or a specialty in which there is a critical 
shortage of personnel (so-called ``kickers''). It does not apply to 
amounts payable for dependents. Veterans who previously had eligibility 
under the Vietnam Era GI Bill receive monthly payments that are in part 
based upon basic educational assistance and in part based upon the 
rates payable under the Vietnam Era GI Bill. Only that portion 
attributable to basic educational assistance is increased by 1.6%.
    38 U.S.C. 3015(a) and (b) require that the Department of Veterans 
Affairs (VA) pay part-time students at appropriately reduced rates. 
Since the first student became eligible for assistance under the 
Montgomery GI Bill--Active Duty in 1985, VA has paid three-quarter-time 
students and one-half-time students at 75% and 50% of the full-time 
institutional rate, respectively. Students pursuing a program of 
education at less than one-half but more than one-quarter-time have had 
their payments limited to 50% or less of the full-time institutional 
rate. Similarly, students pursuing a program of education at one-
quarter-time or less have had their payments limited to 25% or less of 
the full-time institutional rate. Changes are made consistent with the 
authority and formula described in this paragraph.
    In addition, 38 U.S.C. 3032(c) requires that monthly rates payable 
to veterans in apprenticeship or other on-the-job training must be set 
at a given percentage of the full-time rate. Hence, there is a 1.6% 
raise for such training as well.
    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, 1999 in accordance with the applicable statutory 
provisions discussed above.
    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.

Executive Order 12866

    The Office of Management and Budget has reviewed this final rule 
under Executive Order 12866.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies 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.

[[Page 44980]]

Unfunded Mandates

    The Unfunded Mandates Reform Act requires (in section 202) that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector of 
$100 million or more in any given year. This rule would have no 
consequential effect on State, local, or tribal governments.

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance number for the program 
affected by this final rule is 64.124.

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 13, 2000.
Togo D. West, Jr.,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, 38 CFR part 21, subpart K, 
is amended as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    1. The authority citation for part 21, subpart K continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), chs. 30, 36, unless otherwise 
noted.


    2. In Sec. 21.7136, paragraphs (b), (c)(1), (c)(2), and (c)(3) are 
revised to read as follows:


Sec. 21.7136  Rates of payment of basic educational assistance.

* * * * *
    (b) Rates. (1) Except as elsewhere provided in this section or in 
Sec. 21.7139, the monthly rate of basic educational assistance payable 
for training that occurs after September 30, 1999, and before October 
1, 2000, to a veteran whose service is described in paragraph (a) of 
this section is the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $536.00
\3/4\ time...................................................     402.00
\1/2\ time...................................................     268.00
Less than \1/2\ but more than \1/4\..........................     268.00
\1/4\ time...................................................     134.00
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)

    (2) If a veteran's service is described in paragraph (a) of this 
section, the monthly rate payable to the veteran for pursuit of 
apprenticeship or other on-job training that occurs after September 30, 
1999, and before October 1, 2000, is the rate stated in the following 
table:

------------------------------------------------------------------------
                                                                 Monthly
                        Training period                           rate
------------------------------------------------------------------------
 First six months of pursuit of training.....................    $402.00
Second six months of pursuit of training.....................     294.80
Remaining pursuit of training................................     187.50
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

    (3) If a veteran's service is described in paragraph (a) of this 
section, the monthly rate of basic educational assistance payable to 
the veteran for pursuit of a cooperative course is:
    (i) $528.00 for training that occurs after September 30, 1998, and 
before October 1, 1999; and
    (ii) $536.00 for training that occurs on or after September 30, 
1999, and before October 1, 2000.

(Authority: 38 U.S.C. 3015)

    (c) * * *
    (1) Except as elsewhere provided in this section or in 
Sec. 21.7139, the monthly rate of basic educational assistance payable 
to a veteran for training that occurs after September 30, 1999, and 
before October 1, 2000, is the rate stated in the following table.

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
 Full time...................................................    $436.00
 \3/4\ time..................................................     327.00
\1/2\ time...................................................     216.00
 Less than \1/2\ but more than \1/4\ time....................     216.00
\1/4\ time or less...........................................     108.00
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

    (2) The monthly rate of educational assistance payable to a veteran 
for pursuit of apprenticeship or other on-job training that occurs 
after September 30, 1999, and before October 1, 2000, is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                        Training period                           rate
------------------------------------------------------------------------
First six months of pursuit of training......................    $327.00
Second six months of pursuit of training.....................     239.80
Remaining pursuit of training................................     152.60
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

    (3) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of a cooperative course is:
    (i) $429.00 for training that occurs after September 30, 1998, and 
before October 1, 1999; and
    (ii) $436.00 for training that occurs on or after October 1, 1999, 
and before October 1, 2000.

(Authority: 38 U.S.C. 3015)

    3. Section 21.7137 is amended by:
    A. In paragraph (c)(2) introductory text, removing ``1998, and 
before October 1, 1999'' and adding, in its place, ``1999, and before 
October 1, 2000''.
    B. In paragraph (c)(2)(i), removing ``$716.00'' and adding, in its 
place, ``$724.00''.
    C. In paragraph (c)(2)(ii), removing ``$537.50'' and adding, in its 
place, ``$543.50''.
    D. In paragraph (c)(2)(iii), removing ``$358.00'' and adding, in 
its place, ``$362.00''.
    E. In paragraph (c)(2)(iv), removing ``$179.00'' and adding, in its 
place, ``$181.00''.
    F. Revising paragraph (a) to read as follows:


Sec. 21.7137  Rates of payment of basic educational assistance for 
individuals with remaining entitlement under 38 U.S.C. ch. 34.

    (a) Minimum rates. (1) Except as elsewhere provided in this 
section, the monthly rate of basic educational assistance for training 
that occurs after September 30, 1999, and before October 1, 2000, is 
the rate stated in the following table:

[[Page 44981]]



----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Full time...................................................      $724.00      $760.00      $791.00        16.00
\3/4\ time..................................................       543.00       570.00       593.00        12.00
\1/2\ time..................................................       362.00       380.00       395.00         8.50
                                                             ---------------------------------------------------
Less than \1/2\ but more than \1/4\ time....................                        362.00
\1/4\ time or less..........................................                        181.00
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015(e), (f), and (g))

    (2) For veterans pursuing apprenticeship or other on-job training, 
the monthly rate of basic educational assistance for training that 
occurs after September 30, 1999, and before October 1, 2000, is the 
rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................      $504.75      $517.13      $528.00        $5.25
2nd six months of pursuit of program........................       351.18       360.53       368.23         3.85
3rd six months of pursuit of program........................       211.40       217.53       222.25         2.45
Remaining pursuit of program................................       199.50       205.28       210.53         2.45
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015(e), (f), (g))

    (3) The monthly rate payable to a veteran who is pursuing a 
cooperative course is the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                       Training period                             No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1998-Sept. 30, 1999.................................      $716.00      $752.00      $783.00       $16.00
On or after Oct, 1, 1999, and before Oct. 1, 2000...........       724.00       760.00       791.00        16.00
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)
* * * * *
[FR Doc. 00-18326 Filed 7-19-00; 8:45 am]
BILLING CODE 8320-01-P