Reservists' Education: Increase in Educational Assistance Rates

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ38

Reservists' Education: Increase in Educational Assistance Rates

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 a statutory

formula. The Veterans Benefits Act of 1998 provides a rate increase of

approximately 20% that supersedes the otherwise applicable statutory

annual adjustment for Fiscal Year 1999 (October 1, 1998, through

September 30, 1999). The regulations governing rates of basic

educational assistance payable under the Montgomery GI Bill--Selected

Reserve are changed to show the rates indicated in the Act for Fiscal

Year 1999. By statute, regular annual adjustments to these rates will

resume commencing with Fiscal Year 2000.

DATES: Effective Date: This final rule is effective May 14, 1999.

Applicability Date: The changes in rates are applicable October 1,

1998, to conform with statutory requirements. For more information

concerning the dates of application, see the

SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education

Adviser, Education Service, Veterans Benefits Administration, (202)

273-7187.

SUPPLEMENTARY INFORMATION: As provided by the Veterans Benefits Act of

1998 (Pub. L. 105-178, Title VIII, Subtitle B), the rates of basic

educational assistance under the Montgomery GI Bill--Selected Reserve

payable to students pursuing a program of education full time must be

increased by approximately 20% effective October 1, 1998. This final

rule changes the regulations to reflect the statutory changes made by

section 8203(b) of Pub. L. 105-178.

10 U.S.C. 16131(b) requires that the full-time, three-quarter-time,

and half-time rates for institutional training be increased as noted

above. These increased rates result in proportionate increases in the

benefits payable for other types of training whose rates are based on

the institutional training rates. For example, monthly rates payable to

reservists in apprenticeship or other on-job training are set by

statute at a given percentage of the full-time institutional rate.

10 U.S.C. 16131(b) requires that the Department of Veterans Affairs

(VA) pay less-than-half-time students at appropriately reduced rates.

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 institutional

rate for pursuit of a program of education. This final rule sets forth

changes in rates 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 retroactively

from October 1, 1998, as set out in the regulations, in accordance with

the applicable statutory provisions discussed above.

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.

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.

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 4, 1999.

Togo D. West, Jr.,

Secretary of Veterans Affairs.

Approved: March 26, 1999.

Charles L. Cragin,

Acting Assistant Secretary of Defense for Reserve Affairs.

Approved: April 6, 1999.

F.L. Ames,

Rear Admiral, U.S. 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 is revised to read

as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36,

unless otherwise noted.

2. In Sec. 21.7636, paragraphs (a)(1), (a)(2)(i), and (a)(3) are

revised to read as follows:

[[Page 26298]]

Sec. 21.7636 Rates of payment.

(a) Monthly rate of educational assistance. (1) Except as otherwise

provided in this section or in Sec. 21.7639, the monthly rate of

educational assistance payable for training that occurs after September

30, 1998, and before October 1, 1999, to a reservist pursuing a program

of education is the amount stated in this table:

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

Monthly

Training rate

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Full time.................................................... $251.00

\3/4\ time................................................... 188.00

\1/2\ time................................................... 125.00

\1/4\ time................................................... 62.75

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(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, 1998, and before October 1, 1999, is

the rate stated in this table:

(i)

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

Monthly

Training period rate

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

First six months of pursuit of training...................... $188.25

Second six months of pursuit of training..................... 136.05

Remaining pursuit of training................................ 87.85

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* * * * *

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

reservist for pursuit of a cooperative course after September 30, 1998,

and before October 1, 1999, 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)

* * * * *

[FR Doc. 99-12203 Filed 5-13-99; 8:45 am]

BILLING CODE 8320-01-P