[Federal Register Volume 66, Number 144 (Thursday, July 26, 2001)]
[Rules and Regulations]
[Pages 38936-38938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18608]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AK40


Increase in Rates Payable Under the Montgomery GI Bill--Selected 
Reserve

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 the statutory 
formula, the regulations governing rates of basic educational 
assistance payable under the Montgomery GI Bill--Selected Reserve

[[Page 38937]]

for fiscal year 2001 (October 1, 2000, through September 30, 2001) are 
changed to show a 3.0% increase in these rates.

DATES: Effective Date: This final rule is effective July 26, 2001.
    Applicability Date: The changes in rates are applied retroactively 
to conform to statutory requirements. For more information concerning 
the dates of application, 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 10 U.S.C. 
16131(b) for fiscal year 2001, the rates of basic educational 
assistance under the Montgomery GI Bill--Selected Reserve payable to 
students pursuing a program of education full time, three-quarter time, 
and half time must be increased by 3.0%, which is the percentage by 
which the total of the monthly Consumer Price Index-W for July 1, 1999, 
through June 30, 2000, exceeds the total of the monthly Consumer Price 
Index-W for July 1, 1998, through June 30, 1999.
    10 U.S.C. 16131(b) requires that full-time, three-quarter time, and 
half-time rates be increased as noted above. In addition, 10 U.S.C. 
16131(d) requires that monthly rates payable to reservists in 
apprenticeship or other on-the-job training must be set at a given 
percentage of the full-time rate. Hence, there is a 3.0% raise for such 
training as well.
    10 U.S.C. 16131(b) also requires that the Department of Veterans 
Affairs (VA) pay reservists training less than half time at an 
appropriately reduced rate. 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 rate. Changes are made 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 from October 
1, 2000, in accordance with the applicable statutory provisions 
discussed above.

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 under the 
provisions of 5 U.S.C. 552 and 553.

Regulatory Flexibility Act

    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.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, 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.
    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 27, 2001.
Anthony J. Principi,
Secretary of Veterans Affairs.
    Approved: April 17, 2001.
Charles L. Cragin,
Acting Assistant Secretary of Defense for Reserve Affairs.
    Approved: July 10, 2001.
F.L. Ames,
Rear Admiral, United States 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 continues to read 
as follows:

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

    2. Section 21.7636 is amended by revising paragraphs (a)(1), (a)(2) 
introductory text, (a)(2)(i), and (a)(3) to read as follows:


Sec. 21.7636  Rates of payment.

    (a) * * *
    (1) Except as otherwise provided in this section or in 
Sec. 21.7639, the monthly rate of basic educational assistance payable 
for training that occurs after September 30, 2000, and before October 
1, 2001, to a reservist pursuing a program of education is the rate 
stated in this table:

------------------------------------------------------------------------
                                                                 Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time.....................................................   $263.00
\3/4\ time....................................................    197.00
\1/2\ time....................................................    131.00
\1/4\ time....................................................     65.75
------------------------------------------------------------------------

    (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, 2000, and before October 1, 2001, is 
the rate stated in this table:
    (i)

------------------------------------------------------------------------
                                                                 Monthly
                        Training period                           rate
------------------------------------------------------------------------
First six months of pursuit of training.......................   $197.25
Second six months of pursuit of training......................    144.65
Remaining pursuit of training.................................     92.05
------------------------------------------------------------------------

* * * * *
    (3) The monthly rate of basic educational assistance payable to a

[[Page 38938]]

reservist for pursuit of a cooperative course that occurs after 
September 30, 2000, and before October 1, 2001, 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. 01-18608 Filed 7-25-01; 8:45 am]
BILLING CODE 8320-01-P