[Federal Register Volume 69, Number 240 (Wednesday, December 15, 2004)]
[Rules and Regulations]
[Pages 74977-74979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27474]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AM08


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 under the Montgomery GI Bill--Active Duty program 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 program for Fiscal Year 2005 
(October 1, 2004, through September 30, 2005) are changed to show a 2% 
increase in these rates.

DATES: Effective Date: This final rule is effective December 15, 2004.
    Applicability Date: The changes in rates are applied retroactively 
to October 1, 2004 to conform to statutory requirements.

FOR FURTHER INFORMATION CONTACT: Lynn M. Nelson, Education Adviser, 
Education Service (225C), Veterans Benefits Administration, Department 
of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, 
telephone (202) 273-7294.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C. 
3015(h), the Secretary must increase the full-time rates of basic 
educational assistance payable under the Montgomery GI Bill--Active 
Duty (MGIB) program each fiscal year. For Fiscal Year (FY) 2005 the 
increase is 2%, which is the percentage by which the total of the 
monthly Consumer Price Index-W for July 1, 2003, through June 30, 2004, 
exceeds the total of the monthly Consumer Price Index-W for July 1, 
2002, through June 30, 2003. The Veterans Benefits Act of 2003 amended 
38 U.S.C. 3015(h) to provide that during FY 2005 through FY 2013, the 
Secretary must round down the increased rate to the next lower whole 
dollar. The full-time basic educational assistance rates in this 
document at 38 CFR 21.7136(b)(1), (c)(1), and 38 CFR 21.7137(a)(1) are 
rounded down to the nearest dollar.
    It should be noted that 2% increase does not affect all educational 
assistance payable under the MGIB. The 2% increase applies only to the 
basic educational assistance rate. 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''). Veterans who previously had 
eligibility under the Veterans' Educational Assistance program (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. In addition, the increase does not 
apply to additional amounts payable for dependents.
    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, since 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, the apprenticeship 
or on-the-job training rates have been accordingly increased effective 
October 1, 2004.
    The changes set forth in this final rule are effective from the 
date of publication, but the changes in the rates are applied in 
accordance with the applicable statutory provisions discussed above. 
Thus, the Department of Veterans Affairs began paying the increased 
rates for training pursued after September 30, 2004.

Administrative Procedure Act

    Changes made by this final rule merely reflect statutory 
requirements and adjustments made based on

[[Page 74978]]

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. 3501-3521).

Regulatory Flexibility Act

    The initial and final regulatory flexibility analyses requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule, because a notice of proposed 
rulemaking is not required for this rule. Even so 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. This final rule 
directly affects only individuals and does not directly affect small 
entities. Therefore, this final rule is also exempt pursuant to 5 
U.S.C. 605(b) from the initial and final regulatory flexibility 
analyses requirements of sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 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 expenditure by 
State, local, or tribal governments, in the aggregate, or by the 
private sector of $100 million or more (adjusted annually for 
inflation) in any given year. This rule would have no such effect on 
State, local, or tribal governments, or the private sector.

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance numbers 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: December 7, 2004.
Anthony J. Principi,
Secretary of Veterans Affairs.

0
For the reasons set out above, 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)

0
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.

0
2. Section 21.7136 is amended by:
0
a. Removing paragraphs (b)(4) through (b)(9), and (c)(4) through 
(c)(9).
0
b. Revising paragraphs (b)(1), (b)(2), (b)(3), (c)(1), (c)(2), and 
(c)(3).
    The revisions 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, 2004, 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....................................................   $1004.00
\3/4\ time...................................................     753.00
\1/2\ time...................................................     502.00
Less than \1/2\ but more than \1/4\..........................     502.00
\1/4\ time...................................................     251.00
------------------------------------------------------------------------


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


    (2) 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-the-job training 
that occurs after September 30, 2004, is the rate stated in the 
following table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $753.00
Second six months of training................................     552.20
Remaining pursuit of training................................     351.40
------------------------------------------------------------------------


(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 $1004.00 for 
training that occurs after September 30, 2004. (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, 2004 is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $816.00
\3/4\ time...................................................     612.00
\1/2\ time...................................................     408.00
Less than \1/2\ but more than \1/4\..........................     408.00
\1/4\ time or less...........................................     204.00
------------------------------------------------------------------------


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


    (2) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-the-job training that 
occurs after September 30, 2004 is the rate stated in the following 
table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $612.00
Second six months of training................................     448.80
Remaining pursuit of training................................     285.60
------------------------------------------------------------------------


(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 $816.00 for training 
that occurs after September 30, 2004.

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


* * * * *
0
3. Section 21.7137 is amended by:
0
a. Removing paragraphs (a)(4) through (a)(9).
0
b. Revising paragraphs (a)(1), (a)(2), (a)(3), and (c).
    The revisions read as follows:


Sec.  21.7137  Rates of payment of basic educational assistance for 
individuals with remaining entitlement under 38 U.S.C. chapter 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, 2004 is the rate stated in the 
following table:

[[Page 74979]]



----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                   No dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................       $1,192.00       $1,228.00       $1,259.00          $16.00
\3/4\ time......................................          894.50          921.00          944.50           12.00
\1/2\ time......................................          596.00          614.00          629.50            8.50
Less than \1/2\ but more than \1/4\ time........          596.00          596.00          596.00               0
\1/4\ time or less..............................          298.00          298.00          298.00               0
----------------------------------------------------------------------------------------------------------------


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


    (2) For veterans pursuing apprenticeship or other on-the-job 
training, the monthly rate of basic educational assistance for training 
that occurs after September 30, 2004 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............         $855.75         $868.13         $879.00           $5.25
2nd six months of pursuit of program............          608.58          617.93          625.63            3.85
3rd six months of pursuit of program............          375.20          381.33          386.05            2.45
Remaining pursuit of program....................          363.30          369.08          374.33            2.45
----------------------------------------------------------------------------------------------------------------


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


    (3) The monthly rate of basic educational assistance payable to a 
veteran who is pursuing a cooperative course after September 30, 2004, 
is the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                  Monthly rate
-----------------------------------------------------------------------------------------------------------------
                                                                                         Additional for each
           No dependents                  One dependent          Two dependents          additional dependent
----------------------------------------------------------------------------------------------------------------
$1192.00...........................  $1228.00..............  $1259.00..............  $16.00
----------------------------------------------------------------------------------------------------------------


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

* * * * *
    (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):
    (1) The monthly pro-rated cost of the course.
    (2) The following monthly rates for training that occurs after 
September 30, 2004--
    (i) $1,192.00 for full-time training;
    (ii) $894.50 for three-quarter-time training;
    (iii) $596.00 for one-half-time training and training that is less 
than one-half-time training but more than one-quarter-time training; 
and
    (iv) $298.00 for one-quarter-time training.

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

* * * * *
[FR Doc. 04-27474 Filed 12-14-04; 8:45 am]
BILLING CODE 8320-01-P