[Federal Register Volume 66, Number 115 (Thursday, June 14, 2001)]
[Rules and Regulations]
[Pages 32226-32230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15070]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AK44


Increase in Rates Payable Under the Montgomery GI Bill--Active 
Duty and Survivors' and Dependents' Educational Assistance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends the regulations governing rates of 
educational assistance payable under the Montgomery GI Bill--Active 
Duty and the regulations governing rates of Survivors' and Dependents' 
Educational Assistance to reflect increases required by statutory 
provisions.

DATES: Effective Date: This final rule is effective June 14, 2001.
    Applicability Dates. The changes in rates are applied retroactively 
to conform to statutory requirements. For more information concerning 
the dates of applicability, see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Assistant 
Director for Policy and Program Development, Education Service, 
Veterans Benefits Administration, (202) 273-7187.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C. 
3015(g) (as in effect on October 1, 2000) for fiscal year 2001, the 
rates of basic educational assistance under the Montgomery GI Bill--
Active Duty (MGIB) payable to students pursuing a program of education 
full time must be increased by 3.0%, which is the percentage by which 
the total of the monthly Consumer Price Index-W (CPI-W) for July 1, 
1999, through June 30, 2000, exceeds the total of the monthly CPI-W for 
July 1, 1998, through June 30, 1999.
    In addition, the rates for the months during fiscal year 2001 that 
follow October 2000 were further increased by the Veterans Benefits and 
Health Care Improvement Act of 2000 (Pub. L. 106-419). That Act 
provides that beginning on November 1, 2000, the rates of basic 
educational assistance under the MGIB must be increased beyond the 
increase that went into effect on October 1, 2000. Changes are made to 
the regulations governing rates payable under MGIB to reflect both rate 
increases.
    Moreover, Pub. L. 106-419 requires an increase in the monthly rate 
of Survivors' and Dependents' Educational Assistance (DEA), effective 
November 1, 2000. Changes are made to the regulations governing DEA 
rates and entitlement charges to reflect the statutory changes.
    It should be noted that neither the increase attributable to the 
CPI-W nor the increase attributable to the Act affects all educational 
assistance payable under MGIB. The increases don't 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''). They don't 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.
    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 MGIB 
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 are raises 
effective October 1, 2000, and November 1, 2000, 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, 2000, and November 1, 2000, in accordance with the 
applicable statutory provisions discussed above.

[[Page 32227]]

Administrative Procedure Act

    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.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3520).

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget 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.

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 numbers for the programs 
affected by this final rule are 64.117 and 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 care, 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 5, 2001.
Anthony J. Principi,
Secretary of Veterans Affairs.

    For the reasons set out above, 38 CFR part 21 (subparts C and K) is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

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

    Authority: 38 U.S.C. 501(a), 512, 3500-3566, unless otherwise 
noted.

    2. In Sec. 21.3045, paragraph (h) is revised to read as follows:


Sec. 21.3045  Entitlement charges.

* * * * *
    (h) Entitlement charge for correspondence courses. The charge 
against entitlement for pursuit of a course exclusively by 
correspondence will be 1 month for each:
    (1) $485 paid after September 30, 1998, and before November 1, 
2000, to a spouse or surviving spouse as an educational assistance 
allowance;
    (2) $588 paid after October 31, 2000.

(Authority: 38 U.S.C. 3534(b), 3686(a))
* * * * *

    3. In Sec. 21.3131, paragraph (a) is revised to read as follows:


Sec. 21.3131  Rates--educational assistance allowance--38 U.S.C. 
chapter 35.

    (a) Rates. Except as provided in Sec. 21.3132, educational 
assistance allowance is payable at the following rates effective 
November 1, 2000:

------------------------------------------------------------------------
             Type of course                        Monthly rate
------------------------------------------------------------------------
Institutional:
  Full time............................  $588
  \3/4\ time...........................  $441
  \1/2\ time...........................  $294
  Less than \1/2\ but more than \1/4\    $294
   time \1\.
  \1/4\ time or less \1\...............  147
  Cooperative training (other than farm  $588
   cooperative) (Full time only).
Apprentice or on-job (full time only)
 \2\
  First six months.....................  $428
  Second six months....................  $320
  Third six months.....................  $212
  Fourth six months and thereafter.....  $107
Farm cooperative:
  Full time............................  $475
  \3/4\ time...........................  $356
  \1/2\ time...........................  $238
  Correspondence.......................  55 percent of the established
                                          charge for the number of
                                          lessons completed by the
                                          eligible spouse or surviving
                                          spouse and serviced by the
                                          school--Allowance paid
                                          quarterly.\3\
------------------------------------------------------------------------
\1\ If an eligible person under 38 U.S.C. chapter 35 pursuing
  independent study on a less than one-half-time basis completes his or
  her program before the designated completion time, his or her award
  will be recomputed to permit payment of tuition and fees not to exceed
  $294 or $147, as appropriate, per month, if the maximum allowance is
  not initially authorized.
\2\ See footnote 5 of Sec.  21.4270(c) for measurement of full time and
  Sec.  21.3132(c) for proportionate reduction in award for completion
  of less than 120 hours per month.
\3\ Established charge means the charge for the course or courses
  determined on the basis of the lowest extended time payment plan
  offered by the institution and approved by the appropriate State
  approving agency or the actual cost to the eligible spouse or
  surviving spouse, whichever is less. VA considers the continuity of an
  enrollment broken when there are more than 6 months between the
  servicing of the lessons.



[[Page 32228]]

(Authority: 38 U.S.C. 3532(a), 3542(a), 3687(b)(2))
* * * * *


Sec. 21.3300  [Amended]

    4. In Sec. 21.3300, paragraph (c) is amended by removing ``$152'' 
and adding, in its place, ``$184''.


Sec. 21.3333  [Amended]

    5. Section 21.3333 is amended by:
    a. In paragraphs (a) and (b)(1), removing ``January 1, 1990'' and 
adding, in its place, ``November 1, 2000,''.
    b. In the table in paragraph (a), removing ``$485'' and adding, in 
its place, ``$588'', and by removing ``$152'' both places it appears 
and adding, in its place, ``$184'';
    c. In paragraph (b)(1), removing ``$16.16'' and adding, in its 
place, ``$19.60'', and by removing ``$485'' and adding, in its place, 
``$588''.

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

    6. 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.

    7. In Sec. 21.7136, paragraphs (b), (c)(1), (c)(2), and (c)(3) are 
revised and paragraphs (c)(4) and (c)(5) are added 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, 2000, and before November 
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..................................................      $552.00
  \3/4\ time...............................................       414.00
  \1/2\ time...............................................       276.00
Less than \1/2\ but more than \1/4\ time...................       276.00
  \1/4\ time...............................................       138.00
------------------------------------------------------------------------


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

    (2) 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 October 31, 2000, and before October 1, 
2001, 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..................................................      $650.00
\3/4\ time.................................................       487.50
\1/2\ time.................................................       325.00
Less than \1/2\ but more than \1/4\ time...................       325.00
\1/4\ time.................................................       162.50
------------------------------------------------------------------------

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

    (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 apprenticeship or other on-job training that 
occurs after September 30, 2000, and before November 1, 2000, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $414.00
Second six months of pursuit of training...................       303.60
Remaining pursuit of training..............................       193.20
------------------------------------------------------------------------


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

    (4) 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 apprenticeship or other on-job training that 
occurs after October 31, 2000, and before October 1, 2001, is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $487.50
Second six months of pursuit of training...................       357.50
Remaining pursuit of training..............................       227.85
------------------------------------------------------------------------


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

    (5) 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) $536.00 for training that occurs after September 30, 1999, and 
before October 1, 2000;
    (ii) $552.00 for training that occurs after September 30, 2000, and 
before November 1, 2000; and
    (iii) $650.00 for training that occurs after October 31, 2000, and 
before October 1, 2001.

(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, 2000, and 
before November 1, 2000, is the rate stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................      $449.00
\3/4\ time.................................................       336.75
\1/2\ time.................................................       224.50
Less than \1/2\ but more than \1/4\ time...................       224.50
\1/4\ time or less.........................................       112.25
------------------------------------------------------------------------


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

    (2) 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 October 31, 2000, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................      $528.00
\3/4\ time.................................................       396.00
\1/2\ time.................................................       264.00
Less than \1/2\ but more than \1/4\ time...................       264.00
\1/4\ time or less.........................................       132.00
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $336.75
Second six months of pursuit of training...................       246.95
Remaining pursuit of training..............................       157.15
------------------------------------------------------------------------


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

    (4) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-job training that 
occurs after October 31, 2000, and before October 1, 2001, is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $396.00
Second six months of pursuit of training...................       290.40
Remaining pursuit of training..............................       184.80
------------------------------------------------------------------------


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

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

[[Page 32229]]

    (ii) $449.00 for training that occurs after September 30, 2000, and 
before November 1, 2000; and
    (iii) $528.00 for training that occurs after October 31, 2000, and 
before October 1, 2001.
(Authority: 38 U.S.C. 3015)

    8. In Sec. 21.7137, paragraph (a); the introductory texts of 
paragraphs (b) and (c); and paragraph (c) (2) are revised 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, 2000, and before November 1, 2000, is 
the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................         $740.00         $776.00         $807.00          $16.00
\3/4\ time......................................          555.50          582.00          605.50           12.00
\1/2\ time......................................          370.00          388.00          403.50            8.50
Less than \1/2\ but more than \1/4\ time........          370.00          370.00          370.00               0
\1/4\ time or less..............................          185.00          185.00          185.00               0
----------------------------------------------------------------------------------------------------------------

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

    (2) Except as elsewhere provided in this section, the monthly rate 
of basic educational assistance for training that occurs after October 
31, 2000, and before October 1, 2001, is the rate stated in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................         $838.00         $874.00         $905.00          $16.00
\3/4\ time......................................          629.00          655.50          679.00           12.00
\1/2\ time......................................          419.00          437.00          452.50            8.50
Less than \1/2\ but more than \1/4\ time........          419.00          419.00          419.00               0
\1/4\ time or less..............................          209.50          209.50          209.50               0
----------------------------------------------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program............         $516.75         $529.13         $540.00           $5.25
2nd six months of pursuit of program............          359.98          369.33          377.03            3.85
3rd six months of pursuit of program............          217.00          223.13          227.85            2.45
Remaining pursuit of program....................          205.10          210.88          216.13            2.45
----------------------------------------------------------------------------------------------------------------

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

    (4) For veterans pursuing apprenticeship or other on-job training, 
the monthly rate of basic educational assistance for training that 
occurs after October 31, 2000, and before October 1, 2001, is the rate 
stated in the following table:

[[Page 32230]]



----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program............         $590.25         $602.63         $613.50           $5.25
2nd six months of pursuit of program............          413.88          423.23          430.93            3.85
3rd six months of pursuit of program............          251.30          257.43          262.15            2.45
Remaining pursuit of program....................          239.40          245.18          250.43            2.45
----------------------------------------------------------------------------------------------------------------

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

    (5) The monthly rate of basic educational assistance payable to a 
veteran who is pursuing a cooperative course is the rate stated in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                 Training period                                                        Two            each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1999-Sept. 30, 2000.....................         $724.00         $760.00         $791.00          $16.00
Oct. 1, 2000-Oct. 31, 2000......................          740.00          776.00          807.00           16.00
Nov. 1, 2000-Sept. 30, 2001.....................          838.00          874.00          905.00           16.00
----------------------------------------------------------------------------------------------------------------

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

    (b) Less than one-half-time training. Except as provided in 
paragraphs (d) and (e) of this section, the monthly rate of basic 
educational assistance for a veteran who is pursuing a course on a less 
than one-half-time basis is the lesser of:
* * * * *
    (c) Rates for servicemembers. The monthly rate of basic educational 
assistance for a servicemember may not exceed the lesser of the 
following rates (except as provided in paragraph (d) of this section):
* * * * *
    (2) (i) The following monthly rates for training that occurs after 
September 30, 2000, and before November 1, 2000--
    (A) $740.00 for full-time training;
    (B) $555.50 for three-quarter-time training;
    (C) $370.00 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $185.00 for one-quarter-time training; and
    (ii) The following monthly rates for training that occurs after 
October 31, 2000, and before October 1, 2001--
    (A) $838.00 for full-time training;
    (B) $629.00 for three-quarter-time training;
    (C) $419.00 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $209.50 for one-quarter-time training.

(Authority: 38 U.S.C. 3015(d), (f))
* * * * *
[FR Doc. 01-15070 Filed 6-13-01; 8:45 am]
BILLING CODE 8320-01-P