Defines Active Duty As Full-Time Active Duty For The Regular Component, And Title 10 Active Duty For The Reserve Component.  Clarifies the term “active duty” in Section 3301 so that both components are equitably rewarded for federal active service.

Ensures That Service Members Would Not Lose Any GI Bill Benefit If Called To Active Duty, Deployed, Or Transferred During School.  In Section 3312(c), the bill incorporates the existing language in Chapter 30, Sec. 3013(f) to ensure that individuals are afforded protections consistent with those which already exist under the Montgomery G.I. Bill.  Veterans entitled to benefits under Chapter 33 would not lose entitlement if forced to discontinue school due to deployment or transfer.

Removes Room & Board As Part Of The Benefit.  Previously included under Section 3313(c)(1)(B).  This new version of the bill has an improved monthly living stipend which will fairly compensate individuals for housing costs where they attend school, so the redundant and expensive room and board provision was removed.

Inserts Language To Allow Receipt of Supplemental Education Assistance from DoD (“tuition kickers”).  In a new Section 3316, the bill states that veterans eligible for the new GI bill under Chapter 33 may also qualify and receive “tuition kickers,” if they meet the criteria set forth in Chapter 30.  This should remove any concerns that S.22 would impair the armed services’ ability to provide tuition kickers as an incentive for retaining and filling critical military skills.

Ensures The Benefits Paid To Cover Tuition and Fees Are Distributed As A Voucher Or Credit.  Section 3313(j) states that payments for tuition and fees will be paid upfront in the form of a voucher or credit, in a manner defined by the V.A. Secretary.  In some cases, up front payments for tuition and fees will be large, and using a voucher or credit payment rather than cash will limit any potential for fraud.

More Officers Now Qualify For The Benefit.  Section 3311(c) has been amended to allow ROTC and academy-commissioned officers to qualify, however, they may not use their Active Duty Service Obligation required by the terms of their undergraduate education to count towards the S.22 benefit.  Previously, most officers commissioned from these sources after 9/11 would not have qualified.  This is fair to officers who have served side-by-side with their enlisted troops, and provides a retention incentive for junior officers, a critical shortage in many branches.

Readjusting The Benefit Scale For Cumulative Active Duty Served.  Section 3311(c) defines eight new eligibility tiers for the benefit, based on how much active duty is served.  Section 3313(c) defines the percentage of full benefits veterans in those tiers will receive.  This new scale will cover both the active and reserve components, similar in concept to the Total Force G.I. bill (S.644) introduced by Sen. Lincoln last year.  The scale is compared below to the benefit currently available to activated reservists under Title 10, Chapter 1607.  This new scale fairly rewards all active service, whether by reserve or regular component troops, and closely parallels a true month-for-month benefit.

One caveat to this scale is that active duty for entry-level training is not considered unless the individual has 24 months or greater cumulative active service.  Active duty for entry-level training (to include basic training and any advanced individual or MOS training) kicks in AFTER 24 months of regular active duty has already been served. 

Creates A Variable Stipend Based on DoD Basic Allowance for Housing (BAH) Rates.  To more fairly compensate beneficiaries for the costs of housing where they are enrolled, a new stipend is created.  The maximum monthly housing stipend available (100%) will equal the DoD’s Basic Allowance for Housing (BAH) monthly payment for E-5s with dependents.  Individuals will receive a separate stipend for books and other required educational expenses, to be paid in equal amounts prior to each semester or quarter.

Sound, Existing DoD Policy and Procedures Can Be Used To Provide A Fair Stipend:

• To calculate BAH, DoD measures actual housing costs nationwide.  They then divide the country into 369 Military Housing Areas (MHA), which comprise all U.S. zip codes.
• For 2008, the median BAH payment for an E-5 with dependents is $1,034 per month, very similar to the original $1,000 per month maximum stipend in S.22.
• Just like tuition and fees, the stipend is subject to the benefit scale above.  If a veteran qualifies for only 70% tuition and fees, they get only 70% of the BAH stipend as well.
• For this scale in 2008, the lowest MHA is $667 per month, and the highest is $2,512.  84% of the MHAs in the country are between $806 and $1,475 per month.  Veterans will receive their stipend based on the zip code of the school in which they enroll.
• It is important to note that this new method does NOT mean that the stipend will be based on the individual’s rank or on whether or not they have dependents.