New GI Bill of Rights for the 21st Century Act - Revises, expands, or provides new rights and benefits for members of the Armed Forces, veterans, and their dependents and survivors, including, among others: (1) an FY 2006 increase in funding for veterans' medical care; (2) a prohibition until the end of FY2006 on medication copayments and on the imposition of a health care system enrollment fee; (3) an extension until 2010 of Vietnam veterans' eligibility for readjustment counseling services; (4) the collection of data from pre- and post-deployment health assessments, and preventive maintenance post-deployment intervention; (5) the prevention, early detection, and treatment of post-traumatic stress disorder (PTSD) for returning troops; (6) a Department of Defense/Department of Veterans Affairs Council on Post-Deployment Mental Health; (7) survivors' and dependents' eligibility for family and bereavement counseling; (8) certain educational initiatives; (9) a National Steering Committee on PTSD Education and a PTSD public awareness program; (10) certain benefits and outreach services for disabled veterans; (11) an increase in survivors' dependency and indemnity compensation (DIC); (12) certain pay increases and bonuses for active-duty members; (13) an expansion of benefits under under both the active-duty and reserve Montgomery GI Bill programs; (14) employment assistance for homeless veterans; (15) expanded reserve member eligibility under the TRICARE program (a Department of Defense managed health care program); (16) certain recruitment and retention incentives for Selected Reserve members; and (17) certain pay matters with respect to Federal employees performing active-duty reserve service.
Repeals the: (1) DIC offset from Survivor Benefit Plan surviving spouse annuities; (2) pay reduction and high school graduation requirement for participation in the Montgomery GI Bill educational assistance program; (3) delimiting date for entitlement to basic educational assistance under such program; (4) time limitation on the exclusion of combat zone compensation by reason of hospitalization; (5) tax cut (implemented in 2001) for high-income taxpayers; (6) scheduled termination of the phaseout of personal exemptions; and (6) scheduled phaseout of the overall limitation on itemized deductions.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2131 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2131
To improve benefits for members of the Armed Forces and veterans and
for their dependents and survivors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 5, 2005
Mr. Edwards (for himself, Mr. Abercrombie, Mr. Ackerman, Mr. Allen, Mr.
Baca, Ms. Baldwin, Mr. Becerra, Ms. Berkley, Mr. Berman, Mr. Berry, Mr.
Bishop of Georgia, Mr. Bishop of New York, Mr. Blumenauer, Ms.
Bordallo, Mr. Boyd, Ms. Corrine Brown of Florida, Mr. Brown of Ohio,
Mr. Butterfield, Mrs. Capps, Mr. Capuano, Mr. Cardin, Mr. Cardoza, Mr.
Carnahan, Mr. Case, Mr. Chandler, Mrs. Christensen, Mr. Clay, Mr.
Cleaver, Mr. Clyburn, Mr. Conyers, Mr. Costa, Mr. Costello, Mr. Cramer,
Mr. Crowley, Mr. Cuellar, Mr. Cummings, Mrs. Davis of California, Mr.
DeFazio, Mr. Delahunt, Ms. DeLauro, Mr. Dicks, Mr. Dingell, Mr.
Doggett, Mr. Emanuel, Mr. Engel, Ms. Eshoo, Mr. Etheridge, Mr. Evans,
Mr. Faleomavaega, Mr. Farr, Mr. Filner, Mr. Ford, Mr. Frank of
Massachusetts, Mr. Gonzalez, Mr. Gene Green of Texas, Mr. Grijalva, Mr.
Gutierrez, Mr. Hastings of Florida, Ms. Herseth, Mr. Higgins, Mr.
Hinchey, Mr. Hinojosa, Mr. Holden, Mr. Holt, Mr. Honda, Mr. Hoyer, Mr.
Inslee, Mr. Israel, Mr. Jackson of Illinois, Ms. Jackson-Lee of Texas,
Mr. Jefferson, Ms. Eddie Bernice Johnson of Texas, Mrs. Jones of Ohio,
Ms. Kaptur, Mr. Kennedy of Rhode Island, Mr. Kildee, Ms. Kilpatrick of
Michigan, Mr. Kind, Mr. Langevin, Mr. Lantos, Mr. Larsen of Washington,
Mr. Larson of Connecticut, Ms. Lee, Mr. Levin, Mr. Lewis of Georgia,
Mr. Lipinski, Ms. Zoe Lofgren of California, Mrs. Lowey, Mr. Lynch,
Mrs. Maloney, Mr. Markey, Ms. Matsui, Mrs. McCarthy, Ms. McCollum of
Minnesota, Mr. McDermott, Mr. McGovern, Mr. McIntyre, Mr. McNulty, Mr.
Meehan, Mr. Meek of Florida, Mr. Meeks of New York, Mr. Menendez, Mr.
Michaud, Mr. George Miller of California, Mr. Mollohan, Mr. Moore of
Kansas, Mr. Murtha, Mr. Nadler, Mrs. Napolitano, Ms. Norton, Mr.
Oberstar, Mr. Olver, Mr. Ortiz, Mr. Owens, Mr. Pallone, Mr. Payne, Ms.
Pelosi, Mr. Peterson of Minnesota, Mr. Price of North Carolina, Mr.
Rahall, Mr. Rangel, Mr. Reyes, Mr. Ross, Mr. Rothman, Ms. Roybal-
Allard, Mr. Ruppersberger, Mr. Rush, Mr. Ryan of Ohio, Ms. Linda T.
Sanchez of California, Ms. Schakowsky, Mr. Schiff, Ms. Wasserman
Schultz, Ms. Schwartz of Pennsylvania, Mr. Scott of Georgia, Mr. Scott
of Virginia, Mr. Serrano, Mr. Sherman, Mr. Skelton, Ms. Slaughter, Mr.
Smith of Washington, Ms. Solis, Mr. Spratt, Mr. Stark, Mr. Strickland,
Mr. Stupak, Mr. Thompson of Mississippi, Mr. Tierney, Mr. Towns, Mr.
Udall of New Mexico, Mr. Van Hollen, Ms. Waters, Ms. Watson, Mr.
Waxman, Mr. Weiner, Mr. Wexler, Ms. Woolsey, and Mr. Wynn) introduced
the following bill; which was referred to the Committee on Veterans'
Affairs, and in addition to the Committees on Ways and Means and Armed
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve benefits for members of the Armed Forces and veterans and
for their dependents and survivors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``New GI Bill of
Rights for the 21st Century Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--VETERANS HEALTH CARE
Subtitle A--Increase in Funding
Sec. 101. Authorization of additional funding for veterans medical
care.
Subtitle B--Equitable Medication Copayments and Enrollment Fees
Sec. 111. Prohibition on increases in medication copayment for veterans
and imposition of healthcare enrollment fee
for veterans.
Subtitle C--Mental Health Benefits
Sec. 121. Definition.
Chapter 1--Veterans of past deployments
Sec. 125. Six-year extension of eligibility for readjustment counseling
services for Vietnam-era veterans.
Chapter 2--Military issues
Sec. 131. Department of Veterans Affairs-Department of Defense Health
Care Sharing Incentive Fund.
Sec. 132. Collection of data from pre- and post-deployment health
assessments.
Sec. 133. Preventative maintenance post-deployment intervention.
Chapter 3--Prevention, early detection, and treatment for returning
troops
Sec. 141. Study to identify factors that decrease the likelihood of the
development of chronic PTSD despite combat
exposure.
Sec. 142. Extension of period of enhanced eligibility for VA health
services for veterans who served in combat
theaters of operations.
Sec. 143. Demonstration project to station Department of Veterans
Affairs psychologists and psychiatrists at
major demobilization sites and military
treatment facilities.
Sec. 144. Model programs for post-deployment mental health practice.
Sec. 145. Performance measures for Department of Veterans Affairs
health care administrators.
Chapter 4--Department of Defense/Department of Veterans Affairs Council
on Post-Deployment Mental Health
Sec. 151. Establishment of Council.
Sec. 152. Duties of Council.
Chapter 5--Capacity Building in Department of Veterans Affairs
Sec. 161. Plan for expansion of Department of Veterans Affairs system
to expand access to specialized PTSD care.
Sec. 162. Additional Department of Veterans Affairs resources.
Chapter 6--Family therapy
Sec. 165. Eligibility for family counseling and bereavement counseling.
Chapter 7--Educational initiatives
Sec. 171. Training program for health-care providers.
Sec. 172. Curriculum and protocols for cross-training of Department of
Veterans Affairs clinicians.
Sec. 173. Publication of state-of-the-art post-deployment mental health
problems diagnosis and treatment.
Sec. 174. Protocols for pain management for PTSD and war-related pain.
Sec. 175. Protocols for treatment of substance use disorders.
Sec. 176. Protocols for diagnosis of post-traumatic stress disorder.
Chapter 8--National Steering Committee on PTSD Education
Sec. 181. National Steering Committee.
Sec. 182. Funding support for National Center for PTSD.
Sec. 183. Continuing education to mental health providers.
Sec. 184. Web-based curriculum to sponsor clinician training
initiatives.
Chapter 9--Benefits
Sec. 191. Identification of deficiencies in PTSD disability
examinations.
Sec. 192. Criteria for determining medical conditions associated with
PTSD.
Chapter 10--Public awareness
Sec. 195. Public awareness program.
Sec. 196. Web site and materials for general campaign of awareness of
PTSD.
TITLE II--DISABLED VETERANS
Subtitle A--Payment Matters
Sec. 201. Eligibility for payment of both retired pay and veterans'
disability compensation for certain
additional military retirees with
compensable service-connected disabilities.
Sec. 202. Coordination of service eligibility for combat-related
special compensation and concurrent
receipt.
Sec. 203. Interim payments under certain veterans claims when decision
is delayed following remand.
Subtitle B--Outreach
Sec. 211. Rescission of Department of Veterans Affairs memorandum.
Sec. 212. Outreach activities.
Sec. 213. Requirement for outreach efforts and dedicated staff at each
regional office.
TITLE III--SURVIVORS AND DEPENDENTS
Sec. 301. Repeal of dependency and indemnity compensation offset from
survivor benefit plan surviving spouse
annuities.
Sec. 302. Increase in monthly dependency and indemnity compensation
payable to a surviving spouse for so long
as there are minor children.
TITLE IV--ADDITIONAL SUPPORT FOR ACTIVE DUTY SERVICEMEMBERS
Sec. 401. One-time bonus for certain service in connection with
Operation Iraqi Freedom or Operation
Enduring Freedom.
Sec. 402. Increase in active-duty end-strength levels for the Armed
Forces.
Sec. 403. Additional fiscal year 2006 pay increase for middle- and
senior-level enlisted members and warrant
officers.
TITLE V--EDUCATION, EMPLOYMENT AND COMPENSATION
Subtitle A--Active Duty Montgomery GI Bill
Sec. 501. Enhanced benefits under the Montgomery GI Bill for four years
of active-duty service.
Sec. 502. Increase in rates of basic educational assistance under the
Montgomery GI Bill.
Sec. 503. Repeal of pay reduction and high school graduation
requirement for participation in basic
educational assistance under the Montgomery
GI Bill.
Sec. 504. Repeal of delimiting date for use of entitlement to basic
educational assistance under the Montgomery
GI Bill.
Sec. 505. Elimination of limitation to critical military skills for
authority to transfer entitlement.
Sec. 506. Increase in repayment amounts under the student loan
repayment programs for servicemembers.
Sec. 507. Expansion of programs of education eligible for accelerated
payments of educational assistance under
the Montgomery GI Bill.
Subtitle B--Reserve Montgomery GI Bill
Sec. 511. Educational assistance under Montgomery GI Bill for members
of the Selected Reserve who aggregate more
than 2 years of active duty service during
any 5-year period.
Subtitle C--Employment Assistance for Homeless Veterans
Sec. 521. Reauthorization of appropriations for Homeless Veterans
Reintegration Program.
Sec. 522. Expansion of Homeless Veterans Reintegration Program to
include veterans at imminent risk for
homelessness.
Subtitle D--Payment Matters
Sec. 531. No reduction in monthly military pay and allowances for
members of the uniformed services wounded
or injured in combat zones.
Sec. 532. Repeal of time limitation on exclusion of combat zone
compensation by reason of hospitalization.
TITLE VI--RESERVE COMPONENTS AND RECRUITMENT AND RETENTION INITIATIVES
Subtitle A--Health Care
Sec. 601. Expanded Eligibility of selected reserve members under
TRICARE program.
Subtitle B--Recruitment and Retention Incentives
Sec. 611. Increase in authorized maximum annual amount of special pay
for Selected Reserve health care
professionals in critically short wartime
specialties and authorized duration of pay.
Sec. 612. Reenlistment bonus for members of Selected Reserve.
Sec. 613. Increase in authorized maximum amount of Selected Reserve
enlistment bonus.
Sec. 614. Increase in authorized maximum amount for reserve affiliation
bonus under reserve affiliation agreements
entered into during fiscal year 2006.
Sec. 615. Increase in authorized maximum amount of general enlistment
bonus.
Sec. 616. Use of referral bonus to promote enlistments in Selected
Reserve.
Sec. 617. Extension of active-duty retention bonuses and special pays
for health care professionals to reserve
component officers.
Sec. 618. Critical-skills accession bonus for persons enrolled in
Senior Reserve Officers' Training Corps who
are obtaining nursing degrees.
Subtitle C--Payment Matters
Sec. 621. Nonreduction in pay while Federal employee is serving on
active duty in a reserve component of the
uniformed services.
Sec. 622. Active-duty reserve component employee credit added to
general business credit.
Sec. 623. Differential wage payments.
Sec. 624. Credit for income differential for employment of activated
military reservist and replacement
personnel.
Sec. 625. Employer contributions to IRAs of certain members of the
uniformed services.
TITLE VII--FUNDING
Sec. 701. Repeal of 2001 tax cut for high income taxpayers.
Sec. 702. Repeal of scheduled termination of phaseout of personal
exemptions.
Sec. 703. Repeal of scheduled phaseout of overall limitation on
itemized deductions.
TITLE I--VETERANS HEALTH CARE
Subtitle A--Increase in Funding
SEC. 101. AUTHORIZATION OF ADDITIONAL FUNDING FOR VETERANS MEDICAL
CARE.
(a) Authorization.--There are authorized to be appropriated to the
Department of Veterans Affairs, in addition to amounts otherwise
authorized to be appropriated, the amount of $3,200,000,000 for fiscal
year 2006.
(b) Improved Access to Care.--Amounts appropriated pursuant to the
authorization of appropriations in subsection (a) shall be used to
ensure that veterans seeking healthcare from the Department of Veterans
Affairs receive their initial appointment for healthcare for a date
that is not later than 30 days after the date on which the request is
made.
Subtitle B--Equitable Medication Copayments and Enrollment Fees
SEC. 111. PROHIBITION ON INCREASES IN MEDICATION COPAYMENT FOR VETERANS
AND IMPOSITION OF HEALTHCARE ENROLLMENT FEE FOR VETERANS.
(a) Medication Copayments.--During the period beginning on the date
of the enactment of this Act and ending on October 1, 2007, the
Secretary of Veterans Affairs may not implement under subsection (b) of
section 1722A of title 38, United States Code, an increase in the
copayment for medications required under subsection (a) of that
section.
(b) Enrollment Fee.--During the period beginning on the date of the
enactment of this Act and ending on October 1, 2007, the Secretary of
Veterans Affairs may not implement an enrollment fee for veterans
enrolling (or renewing enrollment) in the Department of Veterans
Affairs healthcare system under section 1705 of such title.
Subtitle C--Mental Health Benefits
SEC. 121. DEFINITION.
In this subtitle, the term ``PTSD'' means post-traumatic stress
disorder.
CHAPTER 1--VETERANS OF PAST DEPLOYMENTS
SEC. 125. SIX-YEAR EXTENSION OF ELIGIBILITY FOR READJUSTMENT COUNSELING
SERVICES FOR VIETNAM-ERA VETERANS.
Section 1712A(a)(1)(B)(ii) of title 38, United States Code, is
amended by striking ``January 1, 2004'' and inserting ``January 1,
2010''.
CHAPTER 2--MILITARY ISSUES
SEC. 131. DEPARTMENT OF VETERANS AFFAIRS-DEPARTMENT OF DEFENSE HEALTH
CARE SHARING INCENTIVE FUND.
(a) In General.--The Secretary of Veterans Affairs and the
Secretary of Defense shall jointly take such steps as necessary to
implement the proposal of the Center for the Study of Traumatic Stress
at the Uniformed Services University of the Health Sciences for a
Department of Veterans Affairs-Department of Defense Health Care
Sharing Incentive Fund.
(b) Telecommunications Support.--As part of the implementation of
the proposal referred to in subsection (a), the two Secretaries shall
provide for a system of telecommunications to support the following:
(1) Continuing education and support for front-line
(forward-deployed) providers of health-care services.
(2) Enhanced treatment capacity for addressing acute
episodes of PTSD and other mental health disorders in combat
theaters, including--
(A) real-time access to clinical specialty support;
(B) web-based information on state-of-the-art
protocols for the treatment and diagnosis of PTSD and
other mental health disorders; and
(C) educational programs concerning PTSD and other
mental health disorders commonly associated with
deployment.
SEC. 132. COLLECTION OF DATA FROM PRE- AND POST-DEPLOYMENT HEALTH
ASSESSMENTS.
(a) Data Collection.--The Secretary of Defense shall take
appropriate steps to assist the Secretary of Veterans Affairs with the
collection of data from pre- and post-deployment health assessments of
members of the Armed Forces that may be relevant for identification and
treatment by the Secretary of Veterans Affairs of PTSD and other post-
deployment mental health issues. The Secretary of Defense may provide
such information in aggregate, unidentified format and may provide such
information on a monthly basis or on such other schedule as the two
Secretaries may agree to.
(b) Consent Forms.--The Secretary of Defense shall develop forms
for use in obtaining the written consent of members of the Armed Forces
to allow the Department of Veterans Affairs to collect data contained
on pre-deployment and post-deployment health assessment forms with
relevant treatment information concerning PTSD and other mental health
problems that may be associated with combat stress or readjustment to
civilian life from those members of the Armed Forces to be discharged
or demobilized within 90 days. Such consent forms shall be developed
and made available for use by members of the Armed Forces covered by
the preceding sentence not later than 60 days after the date of the
enactment of this Act.
(c) Identification of Substance Use Disorders.--The Secretary of
Defense shall include in pre-deployment and post-deployment health
assessments questions to assist in identification of existing or
potential substance use disorders among members of the Armed Forces.
SEC. 133. PREVENTATIVE MAINTENANCE POST-DEPLOYMENT INTERVENTION.
(a) In General.--The Secretary of Veterans Affairs shall conduct
routine preventative maintenance intervention for all members of the
Armed Forces returning from deployment in a combat theater. Such
intervention shall be conducted between 90 and 180 days after such
members return from such deployment.
(b) Personnel.--For purposes of such intervention, the Secretary of
Veterans Affairs may use--
(1) staff of the Department of Veterans Affairs, including
readjustment counseling staff; and
(2) persons trained by the Department of Veterans Affairs,
including volunteers from military unit associations, veteran
service organizations, or other nonprofit organizations.
(c) Size.--Such intervention shall be conducted with no more than
six returning servicemembers at a time.
(d) Purpose.--The purpose of such intervention shall be the
following:
(1) To identify and distinguish symptoms of ``common''
acute stress reactions from those of chronic and severe post-
traumatic stress disorder.
(2) To discuss concerns of combat personnel and those
expressed by their family members.
(3) To refer returning servicemembers to appropriate
services, as necessary.
(4) To disseminate educational materials about post-
deployment mental health issues, including PTSD to
servicemembers.
(5) To provide follow-up educational materials by mail to
family members.
(6) To provide information concerning homelessness,
including risk factors, awareness assessment, and contact
information for preventative assistance associated with
homelessness.
(e) VA Participation in Additional Demobilization Activities.--The
Secretary of Defense shall provide for the Secretary of Veterans
Affairs to participate in additional demobilization activities,
including the Transitional Assistance Program, that are conducted
within the Department of Defense for the purposes specified in
subsection (d).
CHAPTER 3--PREVENTION, EARLY DETECTION, AND TREATMENT FOR RETURNING
TROOPS
SEC. 141. STUDY TO IDENTIFY FACTORS THAT DECREASE THE LIKELIHOOD OF THE
DEVELOPMENT OF CHRONIC PTSD DESPITE COMBAT EXPOSURE.
(a) Study.--The Secretary of Veterans Affairs shall provide for a
study, to be conducted by an entity other than the Department of
Veterans Affairs and the Department of Defense, to identify factors
that decrease the likelihood of the development of chronic post-
traumatic stress disorder (PTSD) in servicemembers and veterans who
have had combat exposure, including exposure to guerilla warfare.
(b) Report.--The Secretary shall provide for the entity conducting
the study under subsection (a) to submit a report on the results of the
study to the Secretary and the Congress not later than one year after
the date of the enactment of this Act.
SEC. 142. EXTENSION OF PERIOD OF ENHANCED ELIGIBILITY FOR VA HEALTH
SERVICES FOR VETERANS WHO SERVED IN COMBAT THEATERS OF
OPERATIONS.
Section 1710(e)(3)(C) of title 38, United States Code, is amended
by striking ``2 years'' and inserting ``five years''.
SEC. 143. DEMONSTRATION PROJECT TO STATION DEPARTMENT OF VETERANS
AFFAIRS PSYCHOLOGISTS AND PSYCHIATRISTS AT MAJOR
DEMOBILIZATION SITES AND MILITARY TREATMENT FACILITIES.
(a) Demonstration Project.--The Secretary of Defense and the
Secretary of Veterans Affairs shall jointly provide for the conduct of
a demonstration project under which Department of Veterans Affairs
psychologists and psychiatrists are stationed at major demobilization
sites and military treatment facilities.
(b) Purpose.--The purposes of the demonstration project shall be as
follows:
(1) Identify, on an aggregate level, need for mental health
services among active-duty, Reserve, and National Guard
members.
(2) Provide such services or refer members for necessary
services.
(3) Advise servicemembers of the need for continuous
services.
(4) Identify the obstacles servicemembers have in seeking
appropriate mental health care.
(c) Funding.--There is authorized to be appropriated such sums as
may be necessary for each of fiscal years 2006, 2007, and 2008 for the
conduct of the demonstration project. Amounts for the conduct of the
project shall be provided equally by the Secretary of Veterans Affairs
and the Secretary of Defense.
(d) Eligibility Criteria.--Based on the results of the
demonstration project, the Secretaries shall identify appropriate
eligibility criteria for programs to best respond to the needs of
veterans, servicemembers, and their families for post-deployment mental
health services. The criteria identified shall be included in the
report under subsection (e).
(e) Report.--The Secretary of Veterans Affairs shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a report providing the results of the demonstration
project. The report shall be submitted not later than 18 months after
the date of the enactment of this Act.
SEC. 144. MODEL PROGRAMS FOR POST-DEPLOYMENT MENTAL HEALTH PRACTICE.
(a) Model Programs.--The Secretary of Veterans Affairs, in
consultation with the Secretary of Defense, shall develop model
programs to respond to a variety of mental health disorders prevalent
among veterans of service in Operation Iraqi Freedom and Operation
Enduring Freedom. The program shall be implemented at three sites
selected by the Secretary, of which--
(1) at least one site shall assign case managers to
veterans receiving care under such program; and
(2) at least one site shall use an integrated mental health
and primary care model for post-deployment mental health
practice.
(b) Purpose.--The purpose of the model program shall be as follows:
(1) Development of training protocols for involved
clinicians.
(2) Identification of medical conditions which may be
associated with post-deployment mental health problems
including PTSD.
(3) Identification of ``best practices'' for treatment of
post-deployment mental health problems including PTSD.
(4) Dissemination of results to the Veterans Health
Administration and the Veterans Benefits Administration of the
Department of Veterans Affairs.
(c) Authorization.--There is authorized to be appropriated for the
purposes of subsection (a) the amount of $5,000,000 for each of fiscal
years 2006, 2007, and 2008.
SEC. 145. PERFORMANCE MEASURES FOR DEPARTMENT OF VETERANS AFFAIRS
HEALTH CARE ADMINISTRATORS.
(a) Performance Measures.--The Secretary of Defense and the
Secretary of Veterans Affairs, acting through the Department of
Defense/Department of Veterans Affairs Council on Post-Deployment
Mental Health established under section 151, shall develop performance
measures for Department of Veterans Affairs regional health-care
directors (referred to as VISN directors) and Department of Defense
TRICARE regional managers to ensure the appropriate deployment of
resources to implement the treatment protocols referred to as ``Iraq
War Clinical Practice Guidelines''.
(b) Use of Performance Measures.--The performance measures under
subsection (a) shall be designed to assess--
(1) access and availability of PTSD treatment for
servicemembers returned from deployment in a combat theater;
and
(2) implementation of protocols referred to in subsection
(a).
CHAPTER 4--DEPARTMENT OF DEFENSE/DEPARTMENT OF VETERANS AFFAIRS COUNCIL
ON POST-DEPLOYMENT MENTAL HEALTH
SEC. 151. ESTABLISHMENT OF COUNCIL.
The Secretary of Defense and the Secretary of Veterans Affairs
shall jointly establish a council to be known as the Department of
Defense/Department of Veterans Affairs Council on Post-Deployment
Mental Health. The council shall be composed of leadership of the two
departments in the areas of mental health, PTSD, substance abuse, and
military sexual trauma. The council shall be established not later than
120 days after the date of the enactment of this Act.
SEC. 152. DUTIES OF COUNCIL.
(a) Duties.--The Department of Defense/Department of Veterans
Affairs Council on Post-Deployment Mental Health shall have the
following duties:
(1) Review of the continuum of care between the Department
of Defense and the Department of Veterans Affairs for mental
health, PTSD, substance abuse, and military sexual trauma.
(2) Identification of gaps in the treatment capability of
the health-care systems of the Department of Defense and
Department of Veterans Affairs for mental health, PTSD,
substance abuse, and military sexual trauma and expected gaps
in such continuum, with emphasis on access to services in rural
areas, to meet the expected demand from current users and
servicemembers returning from Operation Iraqi Freedom and
Operation Enduring Freedom and other deployments.
(3) Promotion, within both systems, of an educational
program to implement the jointly developed Iraq War Clinical
Practice Guidelines.
(4) Development of outcome monitors and quality improvement
instruments to ensure that internal policy regarding PTSD is
implemented (including TRICARE and VISN directors' performance
measures under section 307).
(5) Recommendation of policies to reduce the stigma
associated with the seeking of mental health care by active-
duty, Reserve, and National Guard members.
(6) Identification of the highest post-deployment mental
health research priorities for the two departments.
(7) Communications to inform active-duty servicemembers and
veterans of matters relating to PTSD.
(b) Annual Meeting With Stakeholders.--The Council shall meet at
least annually with stakeholder groups comprised of veterans, veterans
service organizations, and family members of veterans receiving care
from the Department of Veterans Affairs mental health programs, and
mental health associations.
(c) Report.--The Council shall prepare a report based on the
reviews under paragraphs (1) and (2) of subsection (a) to identify the
necessary resources to create or enhance PTSD treatment capabilities.
The report shall be made available to the Secretary of both Departments
for comment. The Secretaries shall indicate recommendations in which
they concur or disagree and include specific plans for implementation
of any recommendations accepted. The report, with the comments and
recommendations of the two Secretaries shall be submitted to the
Committees on Veterans' Affairs and the Committees on Armed Services of
the Senate and House of Representatives not later than one year after
the date of the enactment of this Act. The report shall include
priority listing of sites which require investments according to the
greatest perceived need for PTSD services.
CHAPTER 5--CAPACITY BUILDING IN DEPARTMENT OF VETERANS AFFAIRS
SEC. 161. PLAN FOR EXPANSION OF DEPARTMENT OF VETERANS AFFAIRS SYSTEM
TO EXPAND ACCESS TO SPECIALIZED PTSD CARE.
(a) Development of Plan.--Based upon the report under section
152(b), the Secretary of Veterans Affairs shall develop a plan for the
Department of Veterans Affairs to expand access to specialized PTSD
care through--
(1) Readjustment Counseling Service centers operated under
section 1712A of title 38, United States Code;
(2) community-based outpatient clinics; and
(3) telemedicine.
(b) Inspector General Investigation.--The Inspector General of the
Department of Veterans Affairs shall investigate specialized programs
of the Department of Veterans Affairs for the treatment of post-
traumatic stress disorder in order to determine--
(1) the current workloads of those programs;
(2) staff associated with each of those programs;
(3) funds obligated for those programs; and
(4) any waiting times associated with those programs.
(c) Report.--The Inspector General shall submit to the Committees
on Veterans' Affairs of the Senate and House of Representatives a
report containing the Inspector General's findings under subsection
(b), together with an assessment of the ability of the Department of
Veterans Affairs to address such findings, along with recommendations
for accommodating--
(1) the current workload of the Department in specialized
treatment program;
(2) 102 percent of the current workload of the Department;
and
(3) 110 percent of the current workload of the Department.
SEC. 162. ADDITIONAL DEPARTMENT OF VETERANS AFFAIRS RESOURCES.
In order to improve access to mental health services, the Secretary
of Veterans Affairs shall provide the following:
(1) 100 additional full-time equivalent employees to
Readjustment Counseling Service outstations.
(2) A PTSD clinical team at every medical center of the
Veterans Health Administration.
(3) A family therapist at each Vet Center under section
1712A of title 38, United States Code.
(4) A PTSD coordinator in each regional network referred to
as a Veterans Integrated Service Network (VISN ) whose duties
shall include--
(A) development of plans for meeting PTSD and other
post-deployment mental health treatment needs
consistent with the report under section 152(b);
(B) assurance of implementation of clinical
practice guidelines throughout the VISN;
(C) liaison among all health-care sites in the VISN
and the Department Central Office on matters relating
to PTSD.
(5) A PTSD coordinator in each regional office of the
Readjustment Counseling Service whose duties shall include
liaison with regional office staff and medical centers for
veterans seeking service-connection for PTSD.
CHAPTER 6--FAMILY THERAPY
SEC. 165. ELIGIBILITY FOR FAMILY COUNSELING AND BEREAVEMENT COUNSELING.
(a) Counseling for Family Members of Veterans Being Treated for
Service-Connected Disabilities.--Section 1782(a) of title 38, United
States Code, is amended by adding at the end the following new
sentence: ``In addition, the Secretary shall provide to an individual
described in subsection (c) such professional counseling and mental
health services as are necessary as a consequence of a disability of a
veteran described in the preceding sentence. Counseling and mental
health services under the preceding sentence shall be provided (if so
requested by the individual) for a period of two years from the date on
which the individual first receives such counseling or mental health
services under the preceding sentence.''.
(b) Bereavement Counseling.--Section 1783 of such title is
amended--
(1) by striking ``may provide'' in subsections (a) and (b)
and inserting ``shall, upon request, provide''; and
(2) by adding at the end the following new subsection:
``(d) Duration of Counseling.--Counseling under subsection (a) or
with respect to the death of a veteran or under subsection (b) with
respect to the death of a member who dies in the active military,
naval, or air service shall be provided to an individual eligible for
such counseling (if so requested by that individual) for a period of
two years from the date on which the individual first receives
counseling under this section with respect to that death.''.
CHAPTER 7--EDUCATIONAL INITIATIVES
SEC. 171. TRAINING PROGRAM FOR HEALTH-CARE PROVIDERS.
The Secretary of Veterans Affairs and the Secretary of Defense
shall jointly develop a broad training program for all health-care
providers in the Department of Veterans Affairs and the Department of
Defense to familiarize those providers with mental health-care issues
that are likely to arise among persons deployed to combat theaters
during the five years after such a deployment.
SEC. 172. CURRICULUM AND PROTOCOLS FOR CROSS-TRAINING OF DEPARTMENT OF
VETERANS AFFAIRS CLINICIANS.
The Secretary of Veterans Affairs shall develop a curriculum and
required protocols for cross-training to allow the following clinicians
of the Department of Veterans Affairs to screen for post-deployment
mental health problems, including PTSD, and, as appropriate, provide
information and appropriate referral to--
(1) primary care providers;
(2) practitioners assigned as Gulf War points-of-contact;
and
(3) clinicians assigned as case managers.
SEC. 173. PUBLICATION OF STATE-OF-THE-ART POST-DEPLOYMENT MENTAL HEALTH
PROBLEMS DIAGNOSIS AND TREATMENT.
The Secretary of Veterans Affairs and the Secretary of Defense
shall jointly develop a plan for the production and dissemination of
publications to advise clinicians on state-of-the-art diagnosis and
treatment of PTSD and other mental health disorders experienced after
deployment, including any medical conditions associated with such
disorders.
SEC. 174. PROTOCOLS FOR PAIN MANAGEMENT FOR PTSD AND WAR-RELATED PAIN.
The Secretary of Veterans Affairs and the Secretary of Defense
shall jointly develop protocols for pain management for PTSD and war-
related pain.
SEC. 175. PROTOCOLS FOR TREATMENT OF SUBSTANCE USE DISORDERS.
The Secretary of Defense shall develop appropriate substance use
disorder treatment protocols for assistance in combat areas of
operations and on return to the United States.
SEC. 176. PROTOCOLS FOR DIAGNOSIS OF POST-TRAUMATIC STRESS DISORDER.
(a) Findings.--The Congress finds as follows:
(1) The symptoms of post-traumatic stress disorder are
often similar to those of traumatic brain injury and some
neurological disorders.
(2) Some veterans with PTSD have co-morbidities that may
mask or compound the symptoms associated with PTSD.
(3) Correct diagnosis of PTSD and other disorders is
critical to effective treatment of those disorders.
(b) Clinical Practice Guidelines.--The Secretary of Veterans
Affairs shall develop clinical practice guidelines to ensure that
clinicians are able to effectively distinguish between diagnoses with
similar symptoms that may manifest as post-traumatic stress disorder.
CHAPTER 8--NATIONAL STEERING COMMITTEE ON PTSD EDUCATION
SEC. 181. NATIONAL STEERING COMMITTEE.
(a) Establishment.--There is a National Steering Committee on PTSD
Education, to be appointed by the joint council established under
section 151. The committee shall be comprised of mental health and
other health professionals and health educators involved in the care of
veterans of a deployment to a theater of combat on or after the date of
the enactment of this Act.
(b) Purpose.--The committee shall review training protocols for
health-care providers and plans for dissemination of educational
materials to veterans, their families, and other relevant parties and
shall identify the resources available to provide for those purposes.
(c) Meetings.--The committee shall meet at least once annually.
SEC. 182. FUNDING SUPPORT FOR NATIONAL CENTER FOR PTSD.
There is authorized to be appropriated to the Secretary of Veterans
Affairs for the National Center for PTSD to assist in carrying out a
joint educational initiative with the Uniformed Services University of
the Health Sciences the amount of $5,000,000 for each of fiscal years
2005 through 2014.
SEC. 183. CONTINUING EDUCATION TO MENTAL HEALTH PROVIDERS.
The National Steering Committee established under section 181 shall
provide continuing education to mental health providers in the
Department of Veterans Affairs and the Department of Defense.
SEC. 184. WEB-BASED CURRICULUM TO SPONSOR CLINICIAN TRAINING
INITIATIVES.
The National Steering Committee established under section 181 shall
develop a Web-based curriculum to sponsor clinician training
initiatives.
CHAPTER 9--BENEFITS
SEC. 191. IDENTIFICATION OF DEFICIENCIES IN PTSD DISABILITY
EXAMINATIONS.
(a) Evaluation of Adjudication of Claims.--The Secretary of
Veterans Affairs, in consultation with the National Center for PTSD,
shall obtain an evaluation of the quality and consistency of
adjudication of claims for PTSD, including the adequacy of service-
connected compensation examinations for rating purposes and the extent
to which veterans who are service-connected for PTSD are actually
employed and employable.
(b) Report.--Not later than 12 months after the date of the
enactment of this Act, the Secretary shall submit to the Committees on
Veterans Affairs of the Senate and House of Representatives a report
that includes the following information and recommendations:
(1) The types of evidence sufficient to confirm combat
experience for veterans filing claims for PTSD based on combat.
(2) The policies and procedures used to obtain confirmation
of a stressor, including documentation of service in combat for
claims based on PTSD.
(3) Based on a representative national sample, the number
and percentage of veterans for each period of war whose claims
for PTSD have been denied based upon the lack of a credible
stressor.
(4) Based on a representative national sample, the number
and percentage of veterans for each period of war whose claims
for PTSD have been denied based upon the lack of a diagnosis of
PTSD.
(5) Based on a representative national sample, the number
and percentage of veterans for each period of war whose claims
for PTSD have been granted and the rating which was initially
awarded for that claim.
(6) The number of initial and subsequent claims and average
time to process claims for PTSD which have been granted
(including the rating assigned and any determination as to
employability) and denied for each regional office for a
consecutive six month period.
(7) The number and percentage of initial claims for PTSD
selected from a representative national sample during a
consecutive six month period which had a compensation and
pension examination conducted in compliance with best practices
for PTSD examinations.
(8) The number and percentage of examinations selected from
a representative national sample during a consecutive six month
period in which the compensation and pension examinations for
PTSD were judged to be inadequate.
(9) The number and percentage of claims for PTSD selected
from a representative national sample during that consecutive
six month period for which the examination was returned as
inadequate.
(10) The maximum, minimum and average time based upon a
representative national sample allocated for completion of an
initial compensation and pension examination for PTSD.
(11) An assessment comparing the employment of veterans
rated for psychiatric impairments with similar ratings based
upon physical impairments including, the number of veterans in
each sample who are employed on a full time or part time basis,
the average time such veterans have been unemployed and a
comparison of the amount of work lost from employment due to
disability and the average earnings of veterans in each group.
(12) Taking into account criteria such as the information
in the Dictionary of Occupational Titles (DOT), including its
companion publication, the Selected Characteristics of
Occupations Defined in the Revised Dictionary of Occupational
Titles (SCO), published by the Department of Labor, examples of
the types of employment that an average veteran rated at 30
percent, at 50 percent, and at 70 percent disabled for PTSD can
be expected to obtain and retain.
(13) The number of claims for PTSD appealed to the Board of
Veterans Appeals during fiscal year 2005, including the
specific issue appealed (service-connection, effective date,
rating) and the results of such appeals (affirmed, denied,
remanded, other disposition).
(14) Recommendations for improving the accuracy and
consistency of PTSD examinations, claim development and
decisions.
(15) Barriers to successful employment for veterans who
have been service-connected for PTSD.
(16) Recommendations for removing barriers to employment
for veterans who have been service-connected for PTSD.
(17) Recommendations for legislative changes which could
improve the potential for vocational rehabilitation and
employment of persons service-connected for PTSD.
SEC. 192. CRITERIA FOR DETERMINING MEDICAL CONDITIONS ASSOCIATED WITH
PTSD.
The Secretary of Veterans Affairs shall develop--
(1) criteria for determining those medical conditions that
are as likely as not to be associated with PTSD; and
(2) standards for determining when secondary service-
connection should be granted for those conditions.
CHAPTER 10--PUBLIC AWARENESS
SEC. 195. PUBLIC AWARENESS PROGRAM.
The Secretary of Veterans Affairs shall conduct an aggressive,
comprehensive outreach program to enhance the awareness of veterans,
and the public in general, of the symptoms of PTSD and of the services
available for veterans with those symptoms. The Secretary of Defense
shall provide the Secretary of Veterans Affairs with such assistance as
may be required for the purposes of such program. To the extent
practicable, the program shall be conducted through the joint council
established under section 151.
SEC. 196. WEB SITE AND MATERIALS FOR GENERAL CAMPAIGN OF AWARENESS OF
PTSD.
As part of the program under this title, the Secretary of Veterans
Affairs shall develop and continually update a Web site and materials,
including pamphlets, news releases, fact sheets, and other materials,
for the purposes of a general campaign of awareness of post-traumatic
stress disorder.
TITLE II--DISABLED VETERANS
Subtitle A--Payment Matters
SEC. 201. ELIGIBILITY FOR PAYMENT OF BOTH RETIRED PAY AND VETERANS'
DISABILITY COMPENSATION FOR CERTAIN ADDITIONAL MILITARY
RETIREES WITH COMPENSABLE SERVICE-CONNECTED DISABILITIES.
(a) Extension of Concurrent Receipt Authority to Retirees With
Service-Connected Disabilities Rated Less Than 50 Percent.--Section
1414 of title 10, United States Code, is amended by striking paragraph
(2) of subsection (a).
(b) Repeal of Phase-in of Concurrent Receipt of Retired Pay and
Veterans' Disability Compensation.--Such section is further amended--
(1) in subsection (a), by striking the final sentence of
paragraph (1);
(2) by striking subsection (c) and redesignating
subsections (d) and (e) as subsections (c) and (d),
respectively; and
(3) in subsection (d) (as so redesignated), by striking
subparagraph (4).
(c) Clerical Amendments.--
(1) The heading for section 1414 of such title is amended
to read as follows:
``Sec. 1414. Members eligible for retired pay who are also eligible for
veterans' disability compensation: concurrent payment of
retired pay and disability compensation''.
(2) The item relating to such section in the table of
sections at the beginning of chapter 71 of such title is
amended to read as follows:
``1414. Members eligible for retired pay who are also eligible for
veterans' disability compensation:
concurrent payment of retired pay and
disability compensation.''.
(d) Effective Date.--The amendments made by this section shall take
effect as of January 1, 2006, and shall apply to payments for months
beginning on or after that date.
SEC. 202. COORDINATION OF SERVICE ELIGIBILITY FOR COMBAT-RELATED
SPECIAL COMPENSATION AND CONCURRENT RECEIPT .
(a) Eligibility for TERA Retirees.--Subsection (c) of section 1413a
of title 10, United States Code, is amended by striking ``entitled to
retired pay who--'' and all that follows and inserting ``who--
``(1) is entitled to retired pay, other than a member
retired under chapter 61 of this title with less than 20 years
of service creditable under section 1405 of this title and less
than 20 years of service computed under section 12732 of this
title; and
``(2) has a combat-related disability''.
(b) Amendments to Standardize Similar Provisions.--
(1) Clerical amendment.--The heading for paragraph (3) of
section 1413a(b) of such title is amended by striking ``rules''
and inserting ``rule''.
(2) Specification of qualified retirees for concurrent
receipt purposes.--Subsection (a) of section 1414 of such
title, as amended by section 2(a), is amended--
(A) by striking ``a member or'' and all that
follows through ``retiree')'' and inserting ``an
individual who is a qualified retiree for any month'';
(B) by inserting ``retired pay and veterans'
disability compensation'' after ``both''; and
(C) by adding at the end the following new
paragraph:
``(2) Qualified retirees.--For purposes of this section, a
qualified retiree, with respect to any month, is a member or
former member of the uniformed services who--
``(A) is entitled to retired pay, other than in the
case of a member retired under chapter 61 of this title
with less than 20 years of service creditable under
section 1405 of this title and less than 20 years of
service computed under section 12732 of this title; and
``(B) is also entitled for that month to veterans'
disability compensation.''.
(3) Standardization with crsc rule for chapter 61
retirees.--Subsection (b) of section 1414 of such title is
amended--
(A) by striking ``Special Rules'' in the subsection
heading and all that follows through ``is subject to''
in paragraph (1) and inserting ``Special Rule for
Chapter 61 Disability Retirees.--In the case of a
qualified retiree who is retired under chapter 61 of
this title, the retired pay of the member is subject
to''; and
(B) by striking paragraph (2).
(c) Effective Date.--The amendments made by this section shall take
effect as of January 1, 2006, and shall apply to payments for months
beginning on or after that date.
SEC. 203. INTERIM PAYMENTS UNDER CERTAIN VETERANS CLAIMS WHEN DECISION
IS DELAYED FOLLOWING REMAND.
(a) In General.--(1) Chapter 53 of title 38, United States Code, is
amended by adding at the end the following new section:
``SEC. 5320. INTERIM BENEFITS UNDER CERTAIN REMANDED CASES.
``(a) Interim Benefits.--When a claim for benefits under the
jurisdiction of the Secretary is remanded by the United States Court of
Appeals for Veterans Claims or by the Board for Veterans' Appeals in a
case involving a claim under chapters 11, 13 or 15 of this title and to
which sections 5109B or 7112 of this title applies, if the Secretary
does not make a decision on the matter within 180 days of the date of
the remand decision, then until such matter is finally decided, the
Secretary shall pay an interim benefit in the amount of $500 per month
to each claimant under the claim. Such payments shall commence as of
the first month beginning after the end of such 180-day period.
``(b) Effect on Interim Benefit Payments of Final Decision on
Claim.--When a claim with respect to which interim benefits are being
paid under subsection (b) is finally decided--
``(1) if the final decision is to award benefits, the
amounts paid as interim benefits shall be considered to be an
advance payment of benefits owed for any period before the date
of such final decision (except that if the total amount of
interim benefits paid is greater than the amount of retroactive
benefits, the amount of the difference shall not be considered
to be an overpayment for any purpose); and
``(2) if the final decision is not to award benefits, the
amounts paid as interim benefits shall not be considered to be
an overpayment for any purpose.''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:
``Sec. 5320. Interim benefits under certain remanded cases.''.
(b) Effective Date.--Section 5320 of title 38, United States Code,
as added by subsection (a), shall apply with respect to any decision
remanded by the Court of Appeals for Veterans Claims or the Board of
Veterans' Appeals on or after the date of the enactment of this Act.
(c) Report.--Not later than 6 months after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall submit
to Congress a report on measures the Secretary intends to take to
expedite the processing of remanded claims for veterans benefits.
Subtitle B--Outreach
SEC. 211. RESCISSION OF DEPARTMENT OF VETERANS AFFAIRS MEMORANDUM.
(a) Rescission of Memorandum.--The memorandum of the Department of
Veterans Affairs dated July 18, 2002, from the Deputy Under Secretary
for Health for Operations and Management with the subject ``Status of
VHA Enrollment and Associated Issues'' is hereby rescinded. Marketing
activities of directors of health service networks (known as ``Veterans
Integrated Service Networks'') of the Department of Veterans Affairs to
enroll new veterans within their respective networks shall be carried
out without regard to such memorandum.
(b) Funding Limitation.--No funds available to the Department of
Veterans Affairs may be used to carry out the memorandum referred to in
subsection (a) or otherwise to implement the policy contained in that
memorandum.
SEC. 212. OUTREACH ACTIVITIES.
(a) Annual Plan Required.--Subchapter II of chapter 77 of title 38,
United States Code, is amended by adding at the end the following new
sections:
``Sec. 7728. Annual plan on outreach activities
``(a) Annual Plan Required.--The Secretary shall prepare each year
a plan for the outreach activities of the Department for the following
year.
``(b) Elements.--Each annual plan under subsection (a) shall
include the following:
``(1) Plans for efforts to identify veterans who are not
enrolled or registered with the Department for benefits or
services under the programs administered by the Secretary.
``(2) Plans for informing veterans and their dependents of
modifications of the benefits and services under the programs
administered by the Secretary, including eligibility for
medical and nursing care and services.
``(c) Coordination in Development.--In developing an annual plan
under subsection (a), the Secretary shall consult with the following:
``(1) Directors or other appropriate officials of
organizations recognized by the Secretary under section 5902 of
this title.
``(2) Directors or other appropriate officials of State and
local education and training programs.
``(3) The Administration on Aging of the Department of
Health and Human Services.
``(4) Representatives of nongovernmental organizations that
carry out veterans outreach programs.
``(5) Representatives of State and local veterans
employment organizations.
``(6) Businesses and professional organizations.
``(7) Other individuals and organizations that assist
veterans in adjusting to civilian life.
``(d) Incorporation of Assessment of Previous Annual Plans.--In
developing an annual plan under subsection (a), the Secretary shall
take into account the lessons learned from the implementation of
previous annual plans under that subsection and program evaluations
from the Office of Policy, Planning, and Preparedness of the
Department.
``Sec. 7729. Outreach activities: coordination of activities within
Department
``(a) The Secretary shall establish and maintain procedures for
ensuring the effective coordination of the outreach activities of the
Department between and among the following:
``(1) The Office of the Secretary.
``(2) The Office of Public Affairs.
``(3) The Veterans Health Administration.
``(4) The Veterans Benefits Administration.
``(5) The National Cemetery Administration.
``(b) The Secretary shall--
``(1) periodically review the procedures maintained under
subsection (a) for the purpose of ensuring that such procedures
meet the requirement in that subsection; and
``(2) make such modifications to such procedures as the
Secretary considers appropriate in light of such review in
order to better achieve that purpose.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
7727 the following new items:
``7728. Annual plan on outreach activities.
``7729. Outreach activities: coordination of activities within
Department.''.
(c) Initial Annual Plan.--The first annual outreach activities plan
under section 7728 of title 38, United States Code, as added by
subsection (a), shall be prepared for the first year beginning after
the date of the enactment of this Act.
SEC. 213. REQUIREMENT FOR OUTREACH EFFORTS AND DEDICATED STAFF AT EACH
REGIONAL OFFICE.
(a) Findings.--Congress and the Department of Veterans Affairs
historically have targeted certain specific populations for outreach
efforts concerning benefits under laws administered by the Secretary of
Veterans Affairs. Groups currently targeted for such outreach efforts
and for which program outreach coordinators have been designated at
each regional office of the Department of Veterans Affairs are the
following:
(1) Former prisoners of war.
(2) Women veterans.
(3) Minority veterans.
(4) Active duty personnel.
(5) Homeless veterans.
(6) Elderly veterans.
(7) Recently separated veterans.
(b) Eligible Dependent Defined.--Paragraph (2) of section 7721(b)
of title 38, United States Code, is amended to read as follows:
``(2) the term `eligible dependent' means a spouse,
surviving spouse (whether or not remarried), child (regardless
of age or marital status), or parent of a person who served in
the active military, naval, or air service.''.
(c) Improved Outreach Program.--Section 7727 of title 38, United
States Code, is amended to read as follows:
``Sec. 7727. Outreach for eligible dependents
``(a) In carrying out this subchapter, the Secretary shall ensure
that the needs of eligible dependents are fully addressed.
``(b)(1) In order to carry out subsection (a), the Secretary shall
assign such employees of the Veterans Benefits Administration as the
Secretary considers appropriate to conduct outreach programs and
provide outreach services for eligible dependents. In areas where the
number of eligible dependents warrant doing so, the Secretary shall
assign at least one employee in the Veterans Benefits Administration
regional office to serve as a full-time coordinator of outreach
programs and services for eligible dependents in that region.
``(2) Responsibilities of employees assigned to outreach functions
under paragraph (1) shall include providing eligible dependents with--
``(A) information about benefits under laws administered by
the Secretary; and
``(B) contacting responsible regional office employees to
facilitate--
``(i) assistance in claims preparation and inquiry
resolution; and
``(ii) in the case of a dependent of a deceased
veteran for whom necessary records are incomplete,
assistance in obtaining such records and other
necessary information concerning the veteran.
``(c)(1) Information provided an eligible dependent under this
section shall include information on how to apply for benefits for
which the dependent may be eligible, including information about
assistance available under subsection (b) and section 7722(d) of this
title.
``(2) In the case of eligible dependents who are members of
distinct beneficiary populations (such as survivors of deceased
veterans), the Secretary shall ensure that information provided under
this section includes specific information about benefits relating to
that population.
``(d) For any geographic area in which there is a significant
population of eligible dependents whose primary language is a language
other than English, the Secretary shall make information provided under
this subsection available to those dependents in the dominant language
in that area (in addition to English).
``(e) Outreach services and assistance shall be provided for
eligible dependents through the same means that are used for other
specially targeted groups.
``(f) The Secretary shall ensure that the availability of outreach
services and assistance for eligible dependents under this subchapter
is made known through a variety of means, including the Internet,
correspondence of the Department, announcements in veterans
publications, announcements to the media, telephone directories, direct
correspondence to congressional offices, military bases, public affairs
offices, military retiree affairs offices, and United States embassies.
``(g) The Secretary shall support the Department's periodic
evaluation under section 527 of this title concerning the Department's
efforts to address the needs of eligible dependents.
``(h) The Secretary shall include in the Secretary's annual report
under section 529 of this title an assessment of the programs of the
Department addressing the information and assistance needs of veterans
and eligible dependents. The Secretary shall include in each such
report the following:
``(1) Information about expenditures, costs, and workload
under the program of the Department directed towards the
information and assistance needs of veterans and eligible
dependents.
``(2) Information about outreach efforts directed toward
veterans and eligible dependents.
``(3) Information about emerging needs within the program
that relate to other provisions of law, including section 7725
of this title with respect to language needs of veterans and
eligible dependents.
``(4) Information as to the timeline for implementation of
improvements to meet existing and emerging needs of veterans
and eligible dependents in addition to those specified in this
section.''.
TITLE III--SURVIVORS AND DEPENDENTS
SEC. 301. REPEAL OF DEPENDENCY AND INDEMNITY COMPENSATION OFFSET FROM
SURVIVOR BENEFIT PLAN SURVIVING SPOUSE ANNUITIES.
(a) Repeal.--Subsections (c), (e), and (k) of section 1450 of title
10, United States Code, and subsection (c)(2) of section 1451 of such
title are repealed.
(b) Effective Date.--The amendments made by subsection (a)--
(1) shall take effect on the later of October 1, 2005, or
the date of the enactment of this Act; and
(2) shall apply with respect to payment of annuities under
subchapter II of chapter 73 of title 10, United States Code,
for months beginning on or after that date.
(c) Recoupment of Certain Amounts Previously Refunded to SBP
Recipients.--(1) A surviving spouse who is in receipt of an SBP annuity
that is in effect before the date specified in subsection (b) and that
is adjusted by reason of the amendments made by subsection (a) and who
had previously received an SBP retired pay refund shall repay an amount
determined under paragraph (2). Any such repayment shall be made in the
same manner as a repayment under subsection (k)(2) of section 1450 of
title 10, United States Code, as in effect on the day before the date
of the enactment of this Act.
(2) The amount of a repayment under paragraph (1) shall be the
amount that bears the same ratio to the amount of that refund as the
surviving spouse's life expectancy (determined in accordance with
standard actuarial practices) bears to the anticipated total duration
of the annuity (determined as the sum of such life expectancy and the
duration of the annuity already received).
(3) In this subsection:
(A) The term ``SBP annuity'' means an annuity under the
program established under subchapter II of chapter 73 of title
10, United States Code.
(B) The term ``SBP retired pay refund'' means a refund
under subsection (e) of section 1450 of title 10, United States
Code, as in effect before the date specified in subsection (b).
SEC. 302. INCREASE IN MONTHLY DEPENDENCY AND INDEMNITY COMPENSATION
PAYABLE TO A SURVIVING SPOUSE FOR SO LONG AS THERE ARE
MINOR CHILDREN.
(a) Increase in DIC.--Subsection (b) of section 1311 of title 38,
United States Code, is amended by inserting ``$250, plus'' after
``shall be increased by''.
(b) Conforming Repeal of Two-Year Limitation.--Subsection (e) of
such section is repealed.
(c) Effective Date.--The amendment made by subsection (a) shall
take effect with respect to payments of dependency and indemnity
compensation under section 1311 of title 38, United States Code, for
the first month beginning on or after the date of the enactment of this
Act.
TITLE IV--ADDITIONAL SUPPORT FOR ACTIVE DUTY SERVICEMEMBERS
SEC. 401. ONE-TIME BONUS FOR CERTAIN SERVICE IN CONNECTION WITH
OPERATION IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.
(a) Army, Navy, Air Force, and Marine Corps.--The Secretary of
Defense shall provide for the payment of a bonus under this section to
each member of the Army, Navy, Air Force, or Marine Corps who, at any
time during the service of the member in connection with Operation
Iraqi Freedom or Operation Enduring Freedom, satisfied or satisfies the
eligibility criteria for receipt of special pay under section 310 of
title 37, United States Code, for duty subject to hostile fire or
imminent danger.
(b) Coast Guard.--The Secretary of Homeland Security shall provide
for the payment of a bonus under this section to each member of the
Coast Guard who, at any time during the service of the member in
connection with Operation Iraqi Freedom or Operation Enduring Freedom,
satisfied or satisfies the eligibility criteria for receipt of special
pay under such section.
(c) Amount of Bonus.--The amount of the bonus paid under this
section shall be equal to $1,000.
(d) Entitlement Limited to Single Bonus Payment.--A member may not
receive more than one bonus under the authority of this section.
SEC. 402. INCREASE IN ACTIVE-DUTY END-STRENGTH LEVELS FOR THE ARMED
FORCES.
(a) In General.--The Armed Forces are authorized strengths for
active duty personnel as of September 30, 2006, as follows:
(1) The Army, 512,400.
(2) The Navy, 365,900.
(3) The Marine Corps, 180,000.
(4) The Air Force, 359,700.
(b) Revision in Permanent Active Duty End Strength Minimum
Levels.--Section 691(b) of title 10, United States Code, is amended by
striking paragraphs (1) through (4) and inserting the following:
``(1) For the Army, 512,400.
``(2) For the Navy, 365,900.
``(3) For the Marine Corps, 180,000.
``(4) For the Air Force, 359,700.''.
SEC. 403. ADDITIONAL FISCAL YEAR 2006 PAY INCREASE FOR MIDDLE- AND
SENIOR-LEVEL ENLISTED MEMBERS AND WARRANT OFFICERS.
(a) Targeted Pay Increase.--The Secretary of Defense shall increase
the rates of monthly basic pay for enlisted members of the Armed Forces
in the pay grades E-5 through E-9 and all warrant officers of the Armed
Forces as necessary to ensure that, by the end of fiscal year 2006, the
compensation received by such enlisted members and warrant officers is
equal to not less than 80 percent of the compensation for persons in
the private sector with comparable educational levels and experience,
as determined by the Secretary.
(b) Relation to Other Pay Increases.--The pay increase required by
subsection (a) shall be in addition to any other adjustment to become
effective during fiscal year 2006 in the rates of monthly basic pay
authorized members of the Armed Forces, whether made pursuant to
section 1009 of title 37, United States Code, or a law authorizing
appropriations for the Department of Defense for fiscal year 2006.
TITLE V--EDUCATION, EMPLOYMENT AND COMPENSATION
Subtitle A--Active Duty Montgomery GI Bill
SEC. 501. ENHANCED BENEFITS UNDER THE MONTGOMERY GI BILL FOR FOUR YEARS
OF ACTIVE-DUTY SERVICE.
(a) In General.--Chapter 30 of title 38, United States Code, is
amended by adding at the end the following new subchapter:
``SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE
``Sec. 3041. Enhanced educational assistance entitlement
``(a) Entitlement.--An eligible individual is entitled to enhanced
educational assistance under this subchapter.
``(b) Eligible Individual Defined.--(1) For purposes of this
subchapter, the term `eligible individual' means an individual who
meets the service requirement described in subsection (c) and whose
status after completion of such service is described in section
3011(a)(3) of this title (relating to continuation on active duty,
honorable discharge, or honorable service, as the case may be).
``(2) Such term does not include an individual described in
paragraph (1) or (2) of section 3011(c) of this title (relating to
individuals not electing basic educational assistance under subchapter
II of this chapter or certain commissioned officers, respectively).
``(c) Service Requirement.--(1) The service requirement referred to
in subsection (b) is as follows:
``(A) After September 30, 2005, the individual--
``(i) first enters on active duty;
``(ii) reenlists or extends an enlistment on active
duty as a member of the Armed Forces; or
``(iii) in the case of an officer, continues to
serve on active duty after that date.
``(B) From the date of such entry, reenlistment, extension,
or continuation, as the case may be, the individual--
``(i) serves a continuous period of active duty of
at least four years in the Armed Forces; or
``(ii) serves on active duty in the Armed Forces
and is discharged or released from active duty--
``(I) as provided in subclause (I) of
section 3011(a)(1)(A)(ii) of this title
(relating to service-connected disabilities and
other medical conditions);
``(II) for the convenience of the
Government, after having completed not less
than 42 months of continuous active duty; or
``(III) as provided in subclause (III) of
section 3011(a)(1)(A)(ii) of this title
(relating to involuntary discharge or release
for the convenience of the Government as a
result of a reduction in force).
``(2) In determining service under paragraph (1), the following
rules apply:
``(A) Any period of service described in paragraph (2) or
(3) of section 3011(d) of this title (relating to periods of
service terminated because of a defective enlistment and
periods of service on active duty which individuals in the
Selected Reserve were ordered to perform under certain
provisions of chapter 1209 of title 10, respectively) that
applies to an eligible individual under this section shall not
be considered a part of the individual's period of active duty.
``(B) A member described in paragraph (2) of section
3011(f) of this title (relating to certain members discharged
or released who subsequently reenlist or re-enter on a period
of active duty) who serves the periods of active duty referred
to in such paragraph shall be deemed to have served a
continuous period of active duty the length of which is the
aggregate length of the periods of active duty referred to in
such paragraph.
``(C) Subsections (g) and (h) of section 3011 of this title
(relating to assignment full time at a civilian institution for
courses of education and to commencement of courses of
education at a service academy, respectively) apply with
respect to an eligible individual under this section in the
same manner as they apply to an individual under section 3011
of this title.
``(d) Election of Basic Educational Assistance.--(1) An eligible
individual entitled to enhanced educational assistance under this
subchapter may elect (in a form and manner prescribed by the Secretary)
to receive basic educational assistance under subchapter II in lieu of
such enhanced educational assistance for an enrollment period. Such an
election shall be made by not later than 30 days before the beginning
of the enrollment period.
``(2) An eligible individual may revoke an election made pursuant
to paragraph (1), but in no case may such revocation be made later than
30 days before the beginning of the enrollment period.
``Sec. 3042. Duration of enhanced educational assistance
``(a) In General.--Subject to section 3695 of this title and except
as provided in subsection (b), each individual entitled to enhanced
educational assistance under section 3041 of this title is entitled to
a monthly enhanced educational assistance allowance under this
subchapter for a period or periods not to exceed a total of 36 months
(or the equivalent thereof in part-time enhanced educational
assistance).
``(b) Special Rule for Certain Early Separations.--Subject to
section 3695 of this title, in the case of an individual described in
subclause (I) or (III) of section 3041(c)(1)(B)(ii) of this title
(relating to individuals discharged for service-connected disabilities
or medical conditions or whose service is involuntarily terminated for
the convenience of the Government as a result of a reduction in force,
respectively) who does not serve a continuous period of active duty of
at least four years in the Armed Forces (as described in section
3041(c)(1)(B)(i) of this title), the individual is entitled to one
month of enhanced educational assistance benefits under this subchapter
(not to exceed a total of 36 months (or the equivalent thereof in part-
time enhanced educational assistance)) for each month of continuous
active duty served by the individual beginning with the date on which
the entry on active duty, reenlistment, enlistment extension, or
continuation applicable to that individual under section 3041(c)(1)(A)
of this title begins.
``Sec. 3043. Payment of educational expenses
``(a) In General.--(1) Subject to paragraph (2), the Secretary
shall pay to the educational institution providing a course under an
approved program of education to an eligible individual under this
subchapter who is enrolled in the course the actual cost of tuition and
fees otherwise payable by the individual.
``(2) Such cost may not exceed the amount charged to nonveterans in
similar circumstances.
``(b) Stipend; Costs of Books and Supplies.--The Secretary shall
pay to each eligible individual under this subchapter who is pursuing
an approved program of education--
``(1) a stipend as provided in section 3044 of this title;
and
``(2) in accordance with regulations prescribed by the
Secretary, an amount equal to the average cost, for the year
involved, of books and supplies payable by individuals pursuing
courses of education at educational institutions.
``Sec. 3044. Amount of stipend
``(a) In General.--Except as provided in section 3042 of this
title, the stipend under this subchapter shall be paid at a monthly
rate (as that rate may be increased pursuant to subsection (b)) as
follows:
``(1) At the monthly rate of $900 for an approved program
of education pursued on a full-time basis.
``(2) At the monthly rate of $700 for an approved program
of education pursued on a three-quarter-time basis.
``(3) At the monthly rate of $500 for an approved program
of education pursued on a half-time basis.
``(4) At the monthly rate of $300 for an approved program
of education pursued on less than a half-time basis.
``(b) Adjustment for Inflation.--With respect to any fiscal year
beginning after fiscal year 2006, the Secretary shall provide a
percentage increase (rounded to the nearest dollar) in the rates
payable under subsection (a) equal to the percentage by which--
``(1) the Consumer Price Index (all items, United States
city average) for the 12-month period ending on the June 30
preceding the beginning of the fiscal year for which the
increase is made, exceeds
``(2) such Consumer Price Index for the 12-month period
preceding the 12-month period described in paragraph (1).''.
(b) Conforming Amendments.--(1) Section 3002 of such title is
amended by inserting at the end the following new paragraph:
``(9) The term `enhanced educational assistance' means educational
assistance provided under subchapter V.''.
(2) Section 3011 of such title is amended in subsection (f)(1) and
(g) by striking ``chapter'' each place it appears and inserting
``subchapter''.
(3) Section 3018A(a) of such title is amended by striking
``education assistance under this chapter'' and inserting ``educational
assistance under this subchapter''.
(4) Section 3018B of such title is amended by striking ``education
assistance under this chapter'' each place it appears and inserting
``educational assistance under this subchapter''.
(5) Section 3018C of such title is amended by striking
``educational assistance under this chapter'' each place it appears and
inserting ``educational assistance under this subchapter''.
(6) Section 3019 of such title is amended by striking ``chapter''
each place it appears and inserting ``subchapter''.
(7) Section 3032(e)(3) of such title is amended by inserting ``, or
section 3044(a)(1)'' after ``section 3015''.
(c) Clerical Amendment.--The table of sections at the beginning of
chapter 30 of title 38, United States Code, is amended by adding at the
end the following new items:
``subchapter v--enhanced educational assistance
``3041. Enhanced educational assistance entitlement.
``3042. Duration of enhanced educational assistance.
``3043. Payment of educational expenses.
``3044. Amount of stipend.''.
SEC. 502. INCREASE IN RATES OF BASIC EDUCATIONAL ASSISTANCE UNDER THE
MONTGOMERY GI BILL.
(a) Rates for Basic Educational Assistance.--Section 3015 of title
38, United States Code, is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) by redesignating subparagraph (D) as
subparagraph (F); and
(C) by inserting after subparagraph (C) the
following new subparagraphs:
``(D) for months occurring during fiscal year 2005, $1,004;
``(E) for months occurring during fiscal year 2006, $1,300;
and''; and
(2) in subsection (b)(1)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) by redesignating subparagraph (D) as
subparagraph (F); and
(C) by inserting after subparagraph (C) the
following new subparagraphs:
``(D) for months occurring during fiscal year 2005, $816;
``(E) for months occurring during fiscal year 2006, $1,000;
and''.
(b) Application of Index Based on Costs of Higher Learning.--
Section 3015(h) of such title is amended to read as follows:
``(h)(1) With respect to any fiscal year, the Secretary shall
provide a percentage increase (rounded to the nearest dollar) in the
rates payable under subsections (a)(1) and (b)(1) equal to the
percentage (as determined by the Secretary) by which--
``(A) the average monthly costs of tuition and expenses for
commuter students at public institutions of higher learning
that award baccalaureate degrees for purposes of subsections
(a)(1) and (b)(1) for the fiscal year involved, exceeds
``(B) such average monthly costs for the preceding fiscal
year.
``(2) The Secretary shall make the determination under paragraph
(1) after consultation with the Secretary of Education.
``(3) A determination made under paragraph (1) in a year shall take
effect on October 1 of that year and apply with respect to basic
educational assistance allowances payable under this section for the
fiscal year beginning in that year.
``(4) Not later than September 30 each year, the Secretary shall
publish in the Federal Register the average monthly costs of tuition
and expenses as determined under paragraph (1) in that year.''.
(c) Effective Dates.--(1) The amendments made by subsection (a)
shall apply with respect to payments for months beginning after
September 30, 2005.
(2) The amendment made by subsection (b) shall apply with respect
to payments for months beginning after September 30, 2006. No
adjustment in rates of educational assistance shall be made under
section 3015(h) of title 38, United States Code, for months occurring
during fiscal year 2006.
SEC. 503. REPEAL OF PAY REDUCTION AND HIGH SCHOOL GRADUATION
REQUIREMENT FOR PARTICIPATION IN BASIC EDUCATIONAL
ASSISTANCE UNDER THE MONTGOMERY GI BILL.
(a) Repeal of Pay Reduction and Election of Benefits.--(1) Section
3011 of title 38, United States Code, is amended--
(A) by striking subsection (b); and
(B) in subsection (c), by striking paragraph (1) and
redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively.
(2) Section 3012 of such title is amended--
(A) by striking subsection (c); and
(B) in subsection (d), by striking paragraph (1) and
redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively.
(3) Section 3016(a)(1) of such title is amended by striking ``, and
does not make an election under section 3011(c)(1) or section
3012(d)(1)''.
(4) The amendments made by this subsection shall take effect on
October 1, 2005, and apply to individuals whose initial obligated
period of active duty under section 3011 or 3012 of title 38, United
States Code, as the case may be, begins on or after such date.
(5) Any reduction in the basic pay of an individual referred to in
subsection (b) of section 3011 of title 38, United States Code, by
reason of such subsection, or of any individual referred to in
subsection (c) of section 3012 of such title by reason of such
subsection, shall cease commencing with months beginning after
September 30, 2005, and any obligation of such individual under such
subsections, as the case may be, as of September 30, 2005, shall be
deemed to be fully satisfied as of such date.
(b) Repeal of High School Graduation Requirement.--(1) Section
3011(a) of title 38, United States Code, is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
(2) Section 3012(a) of such title is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
(3) Section 3018(b) of such title is amended--
(A) by striking paragraph (4);
(B) by inserting ``and'' at the end of paragraph (3)(C);
and
(C) by redesignating paragraph (5) as paragraph (4).
(4) The amendments made by this subsection shall take effect on the
date of the enactment of this Act and apply with respect to individuals
applying for basic educational assistance under chapter 30 of title 38,
United States Code, on or after such date.
(c) Exclusion From Income for Eligibility Determinations for
Federal Educational Loans.--Section 3015 of such title is amended--
(1) by redesignating subsection (h), as amended in section
3(b), as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
``(h) Exclusion From Income for Eligibility Determinations for
Federal Educational Loans.--Notwithstanding any other provision of law,
amounts payable by the Secretary under this subchapter with respect to
an eligible individual shall not be considered as income for purposes
of determining eligibility of such individual for education grants or
loans under any other provision of Federal law.''.
SEC. 504. REPEAL OF DELIMITING DATE FOR USE OF ENTITLEMENT TO BASIC
EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY GI BILL.
(a) Repeal.--Section 3031 of title 38, United States Code, and
section 16133 of title 10, United States Code, are repealed.
(b) Conforming Amendments.--(1) Section 3018C(e)(3)(B) of such
title is amended--
(A) by striking clause (ii); and
(B) by striking ``(B)(i)'' and inserting ``(B)''.
(2) Section 3020 of such title is amended--
(A) in subsection (f)(1), by striking ``Subject to the time
limitation for use of entitlement under section 3031 of this
title, an'' and inserting ``An''; and
(B) in subsection (h)(5), by striking ``Notwithstanding
section 3031 of this title, a'' and inserting ``A''.
(3) Section 16164 of title 10, United States Code, is repealed.
(c) Effective Date.--The amendments made by this section shall
apply to individuals entitled to educational assistance under chapter
30 of title 38, United States Code, on or after the date of the
enactment of this Act.
SEC. 505. ELIMINATION OF LIMITATION TO CRITICAL MILITARY SKILLS FOR
AUTHORITY TO TRANSFER ENTITLEMENT.
Subsection (b) of section 3020 of title 38, United States Code, is
amended--
(1) by striking paragraph (2);
(2) be redesignating paragraph (3) as paragraph (2); and
(3) by inserting ``and'' at the end of paragraph (1).
SEC. 506. INCREASE IN REPAYMENT AMOUNTS UNDER THE STUDENT LOAN
REPAYMENT PROGRAMS FOR SERVICEMEMBERS.
(a) Active Duty.--Subsection (b) of section 2171 of title 10,
United States Code, is amended--
(1) by striking ``is 33 1/3 percent or $1,500, whichever is
greater,'' and inserting ``is $6,000'';
(2) by inserting ``(1)'' after ``(b)''; and
(3) by adding at the end the following new paragraph:
``(2) The total amount that may be repaid on behalf of any person
under this section may not exceed $40,000.''.
(b) Selected Reserve.--Subsection (b) of section 16301 of title 10,
United States Code, is amended--
(1) by striking ``is 15 percent or $500, whichever is
greater,'' and inserting ``is $3,000'';
(2) by inserting ``(1)'' after ``(b)''; and
(3) by adding at the end the following new paragraph:
``(2) The total amount that may be repaid on behalf of any person
under this section may not exceed $20,000.''.
SEC. 507. EXPANSION OF PROGRAMS OF EDUCATION ELIGIBLE FOR ACCELERATED
PAYMENTS OF EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY
GI BILL.
(a) In General.--Subsection (b)(1) of section 3014A of title 38,
United States Code, is amended by striking ``that leads to employment
in a high technology occupation in a high technology industry (as
determined pursuant to regulations prescribed by the Secretary)''.
(b) Conforming Amendments.--(1) The heading of section 3014A of
such title is amended to read as follows:
``SEC. 3014A. ACCELERATED PAYMENT OF BASIC EDUCATIONAL ASSISTANCE FOR
CERTAIN APPROVED PROGRAMS OF EDUCATION.''.
(2) The table of sections at the beginning of chapter 30 of such
title is amended by striking the item relating to section 3014A and
inserting after the item relating to section 3014 the following new
item:
``3014A. Accelerated payment of basic educational assistance for
certain approved programs of education.''.
Subtitle B--Reserve Montgomery GI Bill
SEC. 511. EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL FOR MEMBERS
OF THE SELECTED RESERVE WHO AGGREGATE MORE THAN 2 YEARS
OF ACTIVE DUTY SERVICE DURING ANY 5-YEAR PERIOD.
(a) Entitlement.--Section 3012(a)(1) of title 38, United States
Code, is amended--
(1) in subparagraph (B), by striking ``or'' at the end;
(2) in subparagraph (C), by adding ``or'' at the end; and
(3) by inserting after subparagraph (C) the following new
subparagraph (D):
``(D) while in the Selected Reserve--
``(i) is first ordered to serve on active
duty in the Armed Forces under section
12301(a), 12301(d), 12301(g), 12302, or 12304
of title 10, during the period beginning on
September 11, 2001, and ending December 31,
2006; and
``(ii) serves on active duty in the Armed
Forces for one or more periods (whether
continuous or otherwise) aggregating not less
than two years of service on active duty during
a five-year period beginning on the date the
individual is first ordered to serve on active
duty during the period referred to in clause
(i);''.
(b) Duration of Assistance.--Section 3013(b) of such title is
amended by striking ``is entitled to'' and all that follows and
inserting the following:
``is entitled to--
``(1) one month of educational assistance benefits under
this chapter--
``(A) in the case of an individual described in
section 3012(a)(1)(A) of this title, for each month of
continuous active duty served by such individual after
June 30, 1985, as part of the obligated period of
active duty on which such entitlement is based;
``(B) in the case of an individual described in
section 3012(a)(1)(B) or section 3012(a)(1)(C) of this
title, for each month of continuous active duty served
by such individual after June 30, 1985; or
``(C) in the case of an individual described in
section 3012(a)(1)(D) of this title, for each month of
active duty served by such individual after September
11, 2001, as part of the aggregate period of active
duty on which such entitlement is based; and
``(2) one month of educational assistance benefits under
this chapter for each four months served by such individual in
the Selected Reserve after the applicable date specified in
paragraph (1) (other than any month in which the individual
served on active duty).''.
(c) Amount of Assistance.--Section 3015 of such title is amended--
(1) in subsections (a)(1)(D) and (b)(1)(D), by striking
``subsection (h)'' and inserting ``subsection (i)'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following new
subsection (h):
``(h) In the case of an individual entitled to an educational
assistance allowance under section 3012(a)(1)(D) of this title, the
amount of the basic educational assistance allowance payable under this
chapter is the amount determined under subsection (b) of this
section.''.
(d) Contribution.--Paragraph (1) of section 3012(c) of such title
is amended by inserting ``or subsection (a)(1)(D)'' after ``subsection
(a)(1)(A)''.
(e) Election to Opt Out.--Subsection (d)(1) of section 3012 of such
title is amended--
(1) by inserting ``(A)'' after ``(d)(1)'';
(2) by designating the last sentence as subparagraph (C);
(3) in subparagraph (C), as so designated, by striking
``such an election'' and inserting ``an election under this
paragraph''; and
(4) by inserting before subparagraph (C), as so designated,
the following new subparagraph (B):
``(B) An individual described in subsection (a)(1)(D) may make an
election not to receive educational assistance under this chapter. Any
such election shall be made at the time the individual completes the
aggregate period of active duty service required under such
subsection.''.
(f) Outreach.--(1) The Secretaries concerned shall take actions to
inform members of the Selected Reserve who are or may become entitled
to basic educational assistance benefits under chapter 30 of title 38,
United States Code, as a result of section 3012(a)(1)(D) of such title
(as amended by subsection (a) of this section) of the minimum service
requirements for entitlement to such benefits under that chapter and of
the scope and nature of such benefits.
(2) In this subsection:
(A) The term ``Secretary concerned'' has the meaning given
such term in section 101(25) of title 38, United States Code.
(B) The term ``Selected Reserve'' has the meaning given
such term in section 3002(4) of title 38, United States Code.
Subtitle C--Employment Assistance for Homeless Veterans
SEC. 521. REAUTHORIZATION OF APPROPRIATIONS FOR HOMELESS VETERANS
REINTEGRATION PROGRAM.
Subsection (e)(1) of section 2021 of title 38, United States Code,
is amended by adding at the end the following new subparagraph:
``(F) $50,000,000 for each of fiscal years 2007 through
2011.''.
SEC. 522. EXPANSION OF HOMELESS VETERANS REINTEGRATION PROGRAM TO
INCLUDE VETERANS AT IMMINENT RISK FOR HOMELESSNESS.
Subsection (a) of section 2021 of title 38, United States Code, is
amended by inserting ``and veterans who are at imminent risk of
homelessness'' after ``to expedite the reintegration of homeless
veterans''.
Subtitle D--Payment Matters
SEC. 531. NO REDUCTION IN MONTHLY MILITARY PAY AND ALLOWANCES FOR
MEMBERS OF THE UNIFORMED SERVICES WOUNDED OR INJURED IN
COMBAT ZONES.
(a) In General.--Subsection (b) of section 310 of title 37, United
States Code, is amended to read as follows:
``(b) No Reduction in Monthly Military Pay for Wounded or Injured
Members.--
``(1) Effect of wound or injury in combat zone.--For each
month during the period specified in paragraph (2), the total
amount of monthly military pay paid to a member who was wounded
or otherwise injured while assigned to duty in an area for
which special pay was available under this section at the time
the member was wounded or otherwise injured shall not be less
than the total amount of military pay paid to the member for
the month during which the member was wounded or otherwise
injured.
``(2) Duration.--Paragraph (1) shall apply with respect to
a wounded or injured member until the end of the first month
during which any of the following occurs:
``(A) The member is found to be physically able to
perform the duties of the member's office, grade, rank,
or rating.
``(B) The member is discharged or separated from
the uniformed services.
``(C) The member dies.
``(3) Military pay defined.--In this subsection, the term
`military pay' has the meaning given the term `pay' in section
101(21) of this title, except that the term includes allowances
under chapter 7 of this title.''.
(b) Retroactive Effective Date.--Subsection (b) of section 310 of
title 37, United States Code, as amended by this section, shall apply
with respect to any pay period ending on or after September 11, 2001,
for members of the uniformed services described in paragraph (1) of
such section who were wounded or otherwise injured on or after that
date.
SEC. 532. REPEAL OF TIME LIMITATION ON EXCLUSION OF COMBAT ZONE
COMPENSATION BY REASON OF HOSPITALIZATION.
(a) In General.--Subsections (a)(2) and (b)(2) of section 112 of
the Internal Revenue Code of 1986 are each amended by striking ``; but
this paragraph shall not apply for any month beginning more than 2
years after the date of the termination of combatant activities in such
zone''.
(b) Effective Date.--Subsections (a)(2) and (b)(2) of section 112
of the Internal Revenue Code of 1986, as amended by this section, shall
apply to compensation received for months ending on or after September
11, 2001, for members of the uniformed services described in such
subsections who were wounded or otherwise injured on or after that
date.
TITLE VI--RESERVE COMPONENTS AND RECRUITMENT AND RETENTION INITIATIVES
Subtitle A--Health Care
SEC. 601. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER
TRICARE PROGRAM.
(a) General Eligibility.--Subsection (a) of section 1076d of title
10, United States Code, is amended--
(1) by striking ``(a) Eligibility.--A member'' and
inserting ``(a) Eligibility.--(1) Except as provided in
paragraph (2), a member'';
(2) by striking ``after the member completes'' and all that
follows through ``one or more whole years following such
date''; and
(3) by adding at the end the following new paragraph:
``(2) Paragraph (1) does not apply to a member who is enrolled, or
is eligible to enroll, in a health benefits plan under chapter 89 of
title 5.''.
(b) Condition for Termination of Eligibility.--Subsection (b) of
such section is amended by striking ``(b) Period of Coverage.--(1)
TRICARE Standard'' and all that follows through ``(3) Eligibility'' and
inserting ``(b) Termination of Eligibility Upon Termination of
Service.--Eligibility''.
(c) Conforming Amendments.--
(1) Such section is further amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (g) as subsection
(e) and transferring such subsection within such
section so as to appear following subsection (d).
(2) The heading for such section is amended to read as
follows:
``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of
the selected reserve''.
(d) Repeal of Obsolete Provision.--Section 1076b of title 10,
United States Code, is repealed.
(e) Clerical Amendments.--The table of sections at the beginning of
chapter 55 of title 10, United States Code, is amended--
(1) by striking the item relating to section 1076b; and
(2) by striking the item relating to section 1076d and
inserting the following:
``1076d. TRICARE program: TRICARE Standard coverage for members of the
Selected Reserve.''.
(f) Savings Provision.--Enrollments in TRICARE Standard that are in
effect on the day before the date of the enactment of this Act under
section 1076d of title 10, United States Code, as in effect on such
day, shall be continued until terminated after such day under such
section 1076d as amended by this section.
Subtitle B--Recruitment and Retention Incentives
SEC. 611. INCREASE IN AUTHORIZED MAXIMUM ANNUAL AMOUNT OF SPECIAL PAY
FOR SELECTED RESERVE HEALTH CARE PROFESSIONALS IN
CRITICALLY SHORT WARTIME SPECIALTIES AND AUTHORIZED
DURATION OF PAY.
Section 302g of title 37, United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``nor more than three years''; and
(B) by striking ``$10,000'' and inserting
``$25,000''; and
(2) in subsection (f), by striking ``2005'' and inserting
``2006''.
SEC. 612. REENLISTMENT BONUS FOR MEMBERS OF SELECTED RESERVE.
(a) Eligibility of Senior Enlisted Members.--Subsection (a)(1) of
section 308b of title 37, United States Code, is amended by striking
``16 years of total military service'' and inserting ``18 years of
total military service''.
(b) Reenlistment Options.--Subsection (a)(2) of such section is
amended by striking ``three years or for a period of six years'' and
inserting ``one to six years, in increments of whole years,''.
(c) Bonus Amounts.--Paragraph (1) of subsection (b) of such section
is amended to read as follows
``(1) The amount of a bonus under this section may not exceed--
``(A) $15,000, in the case of a member who reenlists or
extends an enlistment for a period of six years;
``(B) $12,500, in the case of a member who reenlists or
extends an enlistment for a period of five years;
``(C) $10,000, in the case of a member who reenlists or
extends an enlistment for a period of four years;
``(D) $7,500, in the case of a member who, having never
received a bonus under this section, reenlists or extends an
enlistment for a period of three years;
``(E) $5,000, in the case of a member who, having never
received a bonus under this section, reenlists or extends an
enlistment for a period of two years;
``(F) $2,500, in the case of a member who, having never
received a bonus under this section, reenlists or extends an
enlistment for a period of one year; and
``(G) $6,000, in the case of a member who, having received
a bonus under this section for a previous one-, two-, or three-
year reenlistment or extension of an enlistment, reenlists or
extends the enlistment for an additional period of one, two, or
three years.''.
(d) Authority to Waive Eligibility Requirements.--Subsection (c)(2)
of such section is amended by striking ``In the case'' and all that
follows through ``the Secretary'' and inserting ``In time of war or
national emergency, the Secretary''.
(e) Duration of Authority.--Subsection (g) of such section is
amended by striking ``2005'' and inserting ``2006''.
(f) Conforming Amendments.--Subsection (c)(1) of such section is
amended--
(1) in the matter preceding subparagraph (A), by striking
``subsection (b)(1)(C)'' and inserting ``subsection
(b)(1)(G)''; and
(2) in subparagraph (A), by striking ``three years'' and
inserting ``one, two, or three years''.
SEC. 613. INCREASE IN AUTHORIZED MAXIMUM AMOUNT OF SELECTED RESERVE
ENLISTMENT BONUS.
Section 308c of title 37, United States Code, is amended--
(1) in subsection (b), by striking ``$10,000'' and
inserting ``$32,000''; and
(2) in subsection (e), by striking ``2005'' and inserting
``2006''.
SEC. 614. INCREASE IN AUTHORIZED MAXIMUM AMOUNT FOR RESERVE AFFILIATION
BONUS UNDER RESERVE AFFILIATION AGREEMENTS ENTERED INTO
DURING FISCAL YEAR 2006.
(a) Increase.--Section 308e of title 37, United States Code, is
amended by adding at the end the following new subsection:
``(h) Notwithstanding subsection (c), the maximum amount of the
bonus that may be paid under this section pursuant to a reserve
affiliation agreement entered into during fiscal year 2006 shall not
exceed $15,000. The Secretary of Defense, and the Secretary of Homeland
Security with respect to the Coast Guard, may amend the regulations
prescribed under subsection (f) to modify the method by which bonus
payments will be made under such reserve affiliation agreements.''.
(b) Conforming Amendment.--Subsection (e) of such section is
amended by striking ``2005'' and inserting ``2006''.
SEC. 615. INCREASE IN AUTHORIZED MAXIMUM AMOUNT OF GENERAL ENLISTMENT
BONUS.
Section 309 of title 37, United States Code, is amended--
(1) in subsection (a), by striking ``$20,000'' and
inserting ``$50,000''; and
(2) in subsection (e), by striking ``2005'' and inserting
``2006''.
SEC. 616. USE OF REFERRAL BONUS TO PROMOTE ENLISTMENTS IN SELECTED
RESERVE.
(a) Bonus Authorized.--Chapter 5 of title 37, United States Code,
is amended by inserting after section 308 the following new section:
``Sec. 308a. Selected Reserve referral bonus
``(a) Bonus Authorized.--The Secretary concerned may pay a referral
bonus to a member of the Selected Reserve who refers, to a member of
the uniformed services assigned to recruiting duties, a person who,
after such referral, enlists or is appointed, for a period of not less
than two years, in the Selected Reserve of the same reserve component
as the member making the referral.
``(b) Amount of Bonus.--The referral bonus may not exceed $2,500
per referral.
``(c) Relation to Prohibition on Bounties.--The referral bonus
authorized by this section is not a bounty for purposes of section
514(a) of title 10.
``(d) Duration of Authority.--A referral bonus may not be paid
under this section with respect to any referral made after December 31,
2006.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
308 the following new item:
``308a. Selected Reserve referral bonus.''.
SEC. 617. EXTENSION OF ACTIVE-DUTY RETENTION BONUSES AND SPECIAL PAYS
FOR HEALTH CARE PROFESSIONALS TO RESERVE COMPONENT
OFFICERS.
Section 303a of title 37, United States Code, is amended by adding
at the end the following new subsection:
``(e) Availability for Reserve Component Health Care
Professionals.--The Secretary of Defense shall modify the eligibility
requirements for each special pay authorized under sections 301d, 301e,
302 through 302j, and 303 of this title as necessary to ensure that
commissioned officers of the reserve components who are not serving
under a call or order to active duty, but who otherwise satisfy the
eligibility requirements for the special pay, are eligible to receive
the special pay in amounts, and under terms and conditions, comparable
to those applicable to commissioned officers of the regular components.
The requirements of this subsection are in addition to the policy
expressed in section 302f of this title to expand the availability of
certain special pays to reserve officers who are health care
professionals. ''.
SEC. 618. CRITICAL-SKILLS ACCESSION BONUS FOR PERSONS ENROLLED IN
SENIOR RESERVE OFFICERS' TRAINING CORPS WHO ARE OBTAINING
NURSING DEGREES.
(a) Provision of Bonus in Reduced Amount.--Section 324 of title 37,
United States Code, as amended by section 614(f) of this Act, is
further amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Nurse Candidates in Senior Reserve Officers' Training
Corps.--(1) A person enrolled in the Senior Reserve Officers' Training
Corps program of the Army for advanced training under chapter 103 of
title 10, including a person receiving financial assistance under
section 2107 of such title, may receive an accession bonus under this
section if the person--
``(A) has completed the second year of an accredited
baccalaureate degree program in nursing; and
``(B) executes an agreement under this section to serve on
active duty as a commissioned officer in the Army Nurse Corps.
``(2) Notwithstanding subsection (c), the amount of the accession
bonus paid to a person described in paragraph (1) may not exceed
$5,000. ''.
(b) Retroactive Application to Existing Agreements.--Subsection (f)
of section 324 of title 37, United States Code, as added by subsection
(a), shall apply with respect to agreements referred to in paragraph
(1)(B) of such subsection executed on or after October 5, 2004.
Subtitle C--Payment Matters
SEC. 621. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS SERVING ON
ACTIVE DUTY IN A RESERVE COMPONENT OF THE UNIFORMED
SERVICES.
(a) In General.--Subchapter IV of chapter 55 of title 5, United
States Code, is amended by adding at the end the following new section:
``Sec. 5538. Nonreduction in pay while serving on active duty in a
reserve component
``(a) An employee who is also a member of a reserve component and
is absent from a position of employment with the Federal Government
under a call or order to serve on active duty for a period of more than
30 days shall be entitled to receive, for each pay period described in
subsection (b), an amount equal to the difference (if any) between--
``(1) the amount of civilian basic pay that would otherwise
have been payable to the employee for such pay period if the
employee's civilian employment with the Government had not been
interrupted by the service on active duty; and
``(2) the amount of military compensation that is payable
to the employee for the service on active duty and is allocable
to such pay period.
``(b)(1) Amounts under this section shall be payable with respect
to each pay period (which would otherwise apply if the employee's
civilian employment had not been interrupted) that occurs--
``(A) while the employee serves on active duty for a period
of more than 30 days;
``(B) while the employee is hospitalized for, or
convalescing from, an illness or injury incurred in, or
aggravated during, the performance of such active duty; or
``(C) during the 14-day period beginning at the end of such
active duty or the end of the period referred to in
subparagraph (B).
``(2) Paragraph (1) shall not apply with respect to a pay period
for which the employee receives civilian basic pay (including by taking
any annual, military, or other paid leave) to which the employee is
entitled by virtue of the employee's civilian employment with the
Government.
``(c) Any amount payable under this section to an employee shall be
paid--
``(1) by the employing agency of the employee;
``(2) from the appropriations or fund that would be used to
pay the employee if the employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would civilian basic pay if the employee's
civilian employment had not been interrupted.
``(d) In consultation with Secretary of Defense, the Office of
Personnel Management shall prescribe such regulations as may be
necessary to carry out this section.
``(e) In consultation with the Office of Personnel Management, the
head of each employing agency shall prescribe procedures to ensure that
the rights under this section apply to the employees of such agency.
``(f) In this section:
``(1) The terms `active duty for a period of more than 30
days', `member', and `reserve component' have the meanings
given such terms in section 101 of title 37.
``(2) The term `civilian basic pay', with respect to an
employee, includes any amount payable under section 5304 of
this title or under such other law providing for the
compensation of the employee by the employing agency for work
performed.
``(3) The term `employing agency', as used with respect to
an employee entitled to any payments under this section, means
the agency with respect to which the employee has reemployment
rights under chapter 43 of title 38. The term `agency' has the
meaning given such term in subparagraph (C) of section
2302(a)(2) of this title, except that the term includes
Government corporations and agencies excluded by clause (i) or
(ii) of such subparagraph.
``(4) The term `military compensation' has the meaning
given the term `pay' in section 101(21) of title 37, except
that the term includes allowances under chapter 7 of such
title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 55 of title 5, is amended by inserting after the item relating
to section 5537 the following new item:
``5538. Nonreduction in pay while serving on active duty in a reserve
component.''.
(c) Application of Amendment.--Section 5538 of title 5, United
States Code, as added by subsection (a), shall apply with respect to
pay periods (as described in subsection (b) of such section) beginning
on or after the date of the enactment of this Act.
SEC. 622. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT ADDED TO
GENERAL BUSINESS CREDIT.
(a) Addition of Credit.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to business-
related credits) is amended by adding at the end the following new
section:
``SEC. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT.
``(a) General Rule.--For purposes of section 38, the Ready Reserve-
National Guard employee credit determined under this section for any
taxable year with respect to each Ready Reserve-National Guard employee
of an employer is an amount equal to the lesser of--
``(1) 50 percent of the actual compensation amount paid
with respect to such Ready Reserve-National Guard employee for
such taxable year while the employee is absent from employment
for a reason described in subsection (b); or
``(2) $30,000.
``(b) Covered Pay Periods.--Subsection (a) shall apply with respect
to a Ready Reserve-National Guard employee--
``(1) while the employee serves on active duty for a period
of more than 30 days;
``(2) while the employee is hospitalized for, or
convalescing from, an illness or injury incurred in, or
aggravated during, the performance of such active duty; or
``(3) during the 14-day period beginning at the end of such
active duty or the end of the period referred to in
subparagraph (B).
``(c) Limitation.--No credit shall be allowed under subsection (a)
with respect to a Ready Reserve-National Guard employee on any day on
which the employee was not scheduled to work (for a reason other than
such service on active duty) and ordinarily would not have worked.
``(d) Portion of Credit Refundable.--
``(1) In general.--In the case of an employer described in
paragraph (2), the aggregate credits allowed to a taxpayer
under subpart C shall be increased by the lesser of--
``(A) the credit which would be allowed under this
section without regard to this subsection and the
limitation under section 38(c), or
``(B) the amount by which the aggregate amount of
credits allowed by this subpart (determined without
regard to this subsection) would increase if the
limitation imposed by section 38(c) for any taxable
year were increased by the amount of employer payroll
taxes imposed on the taxpayer during the calendar year
in which the taxable year begins.
The amount of the credit allowed under this subsection shall
not be treated as a credit allowed under this subpart and shall
reduce the amount of the credit otherwise allowable under
subsection (a) without regard to section 38(c).
``(2) Employer described.--An employer is described in this
paragraph if the employer is--
``(A) an organization exempt from tax under this
chapter,
``(B) any State or political subdivision thereof,
the District of Columbia, any possession of the United
States, or any agency or instrumentality of any of the
foregoing, or
``(C) any Indian tribal government (within the
meaning of section 7871) or any agency or
instrumentality thereof.
``(3) Employer payroll taxes.--For purposes of this
subsection--
``(A) In general.--The term `employer payroll
taxes' means the taxes imposed by--
``(i) section 3111(b), and
``(ii) sections 3211(a) and 3221(a)
(determined at a rate equal to the rate under
section 3111(b)).
``(B) Special rule.--A rule similar to the rule of
section 24(d)(2)(C) shall apply for purposes of
subparagraph (A).
``(e) Definitions.--In this section--
``(1) The terms `active duty for a period of more than 30
days', `member', and `reserve component' have the meanings
given such terms in section 101 of title 37, United States
Code.
``(2) The term `compensation' means any remuneration for
employment, whether in cash or in kind, which is paid or
incurred by a taxpayer and which is deductible from the
taxpayer's gross income under section 162(a)(1).
``(3) The term `Ready Reserve-National Guard employee' with
respect to an employer, means an employee of the employer who
is also a member of a reserve component during a taxable
year.''.
(b) Credit to Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to general business credit) is
amended by striking ``plus'' at the end of paragraph (18), by striking
the period at the end of paragraph (19) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(20) the active-duty reserve component employee credit
determined under section 45J(a).''.
(c) Conforming Amendment.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 45J'' after ``section
35''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 45I
the following new item:
``Sec. 45J. Active-duty reserve component employee credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 623. DIFFERENTIAL WAGE PAYMENTS.
(a) Income Tax Withholding.--Section 3401 of the Internal Revenue
Code of 1986 (relating to definitions) is amended by adding at the end
the following new subsection:
``(i) Differential Wage Payments to Active Duty Members of the
Uniformed Services.--
``(1) In general.--For purposes of subsection (a), any
differential wage payment shall be treated as a payment of
wages by the employer to the employee.
``(2) Differential wage payment.--For purposes of paragraph
(1), the term `differential wage payment' means any payment
which--
``(A) is made by an employer to an individual with
respect to any period during which the individual is
performing service in the uniformed services while on
active duty for a period of more than 30 days, and
``(B) represents all or a portion of the wages the
individual would have received from the employer if the
individual were performing service for the employer.''.
(b) Treatment of Differential Wage Payments for Retirement Plan
Purposes.--
(1) Pension plans.--
(A) In general.--Section 414(u) of such Code
(relating to special rules relating to veterans'
reemployment rights under USERRA) is amended by adding
at the end the following new paragraph:
``(11) Treatment of differential wage payments.--
``(A) In general.--Except as provided in this
paragraph, for purposes of applying this title to a
retirement plan to which this subsection applies--
``(i) an individual receiving a
differential wage payment shall be treated as
an employee of the employer making the payment,
``(ii) the differential wage payment shall
be treated as compensation, and
``(iii) the plan shall not be treated as
failing to meet the requirements of any
provision described in paragraph (1)(C) by
reason of any contribution which is based on
the differential wage payment.
``(B) Special rule for distributions.--
``(i) In general.--Notwithstanding
subparagraph (A)(i), for purposes of section
401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii),
403(b)(11)(A), or 457(d)(1)(A)(ii), an
individual shall be treated as having been
severed from employment during any period the
individual is performing service in the
uniformed services described in section
3401(i)(2)(A).
``(ii) Limitation.--If an individual elects
to receive a distribution by reason of clause
(i), the plan shall provide that the individual
may not make an elective deferral or employee
contribution during the 6-month period
beginning on the date of the distribution.
``(C) Nondiscrimination requirement.--Subparagraph
(A)(iii) shall apply only if all employees of an
employer performing service in the uniformed services
described in section 3401(i)(2)(A) are entitled to
receive differential wage payments on reasonably
equivalent terms and, if eligible to participate in a
retirement plan maintained by the employer, to make
contributions based on the payments . For purposes of
applying this subparagraph, the provisions of
paragraphs (3), (4), and (5), of section 410(b) shall
apply.
``(D) Differential wage payment.--For purposes of
this paragraph, the term `differential wage payment'
has the meaning given such term by section
3401(i)(2).''.
(B) Conforming amendment.--The heading for section
414(u) of such Code is amended by inserting ``and to
Differential Wage Payments to Members on Active Duty''
after ``USERRA''.
(2) Differential wage payments treated as compensation for
individual retirement plans.--Section 219(f)(1) of such Code
(defining compensation) is amended by adding at the end the
following new sentence: ``The term `compensation' includes any
differential wage payment (as defined in section 3401(i)(2))''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to remuneration paid after December 31, 2004.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to plan years beginning after December 31, 2004.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any plan or
annuity contract amendment--
(A) such plan or contract shall be treated as being
operated in accordance with the terms of the plan or
contract during the period described in paragraph
(2)(B)(i), and
(B) except as provided by the Secretary of the
Treasury, such plan shall not fail to meet the
requirements of the Internal Revenue Code of 1986 or
the Employee Retirement Income Security Act of 1974 by
reason of such amendment.
(2) Amendments to which section applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any amendment made by this
section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2007.
(B) Conditions.--This subsection shall not apply to
any plan or annuity contract amendment unless--
(i) during the period beginning on the date
the amendment described in subparagraph (A)(i)
takes effect and ending on the date described
in subparagraph (A)(ii) (or, if earlier, the
date the plan or contract amendment is
adopted), the plan or contract is operated as
if such plan or contract amendment were in
effect; and
(ii) such plan or contract amendment
applies retroactively for such period.
SEC. 624. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF ACTIVATED
MILITARY RESERVIST AND REPLACEMENT PERSONNEL.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits) is
amended by adding at the end the following new section:
``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY RESERVISTS.
``(a) General Rule.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
sum of--
``(1) in the case of a small business employer, the
employment credit with respect to all qualified employees and
qualified replacement employees of the taxpayer, plus
``(2) the self-employment credit of a qualified self-
employed taxpayer.
``(b) Employment Credit.--For purposes of this section--
``(1) Qualified employees.--
``(A) In general.--The employment credit with
respect to a qualified employee of the taxpayer for any
taxable year is equal to 50 percent of the lesser of--
``(i) the excess, if any, of--
``(I) the qualified employee's
average daily qualified compensation
for the taxable year, over
``(II) the average daily military
pay and allowances received by the
qualified employee during the taxable
year, while participating in qualified
reserve component duty to the exclusion
of the qualified employee's normal
employment duties for the number of
days the qualified employee
participates in qualified reserve
component duty during the taxable year,
including time spent in a travel
status, or
``(ii) $30,000.
The employment credit, with respect to all qualified
employees, is equal to the sum of the employment
credits for each qualified employee under this
subsection.
``(B) Average daily qualified compensation and
average daily military pay and allowances.--As used
with respect to a qualified employee--
``(i) the term `average daily qualified
compensation' means the qualified compensation
of the qualified employee for the taxable year
divided by the difference between--
``(I) 365, and
``(II) the number of days the
qualified employee participates in
qualified reserve component duty during
the taxable year, including time spent
in a travel status, and
``(ii) the term `average daily military pay
and allowances' means--
``(I) the amount paid to the
qualified employee during the taxable
year as military pay and allowances on
account of the qualified employee's
participation in qualified reserve
component duty, divided by
``(II) the total number of days the
qualified employee participates in
qualified reserve component duty,
including time spent in travel status.
``(C) Qualified compensation.--When used with
respect to the compensation paid or that would have
been paid to a qualified employee for any period during
which the qualified employee participates in qualified
reserve component duty, the term `qualified
compensation' means--
``(i) compensation which is normally
contingent on the qualified employee's presence
for work and which would be deductible from the
taxpayer's gross income under section 162(a)(1)
if the qualified employee were present and
receiving such compensation,
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and with respect to which the number
of days the qualified employee participates in
qualified reserve component duty does not
result in any reduction in the amount of
vacation time, sick leave, or other nonspecific
leave previously credited to or earned by the
qualified employee, and
``(iii) group health plan costs (if any)
with respect to the qualified employee.
``(D) Qualified employee.--The term `qualified
employee' means a person who--
``(i) has been an employee of the taxpayer
for the 31-day period immediately preceding the
period during which the employee participates
in qualified reserve component duty, and
``(ii) is a member of the Ready Reserve of
a reserve component of an Armed Force of the
United States as defined in sections 10142 and
10101 of title 10, United States Code.
``(2) Qualified replacement employees.--
``(A) In general.--The employment credit with
respect to a qualified replacement employee of the
taxpayer for any taxable year is equal to 50 percent of
the lesser of--
``(i) the individual's qualified
compensation attributable to service rendered
as a qualified replacement employee, or
``(ii) $12,000.
The employment credit, with respect to all qualified
replacement employees, is equal to the sum of the
employment credits for each qualified replacement
employee under this subsection.
``(B) Qualified compensation.--When used with
respect to the compensation paid to a qualified
replacement employee, the term `qualified compensation'
means--
``(i) compensation which is normally
contingent on the qualified replacement
employee's presence for work and which is
deductible from the taxpayer's gross income
under section 162(a)(1),
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and
``(iii) group health plan costs (if any)
with respect to the qualified replacement
employee.
``(C) Qualified replacement employee.--The term
`qualified replacement employee' means an individual
who is hired to replace a qualified employee or a
qualified self-employed taxpayer, but only with respect
to the period during which such employee or taxpayer
participates in qualified reserve component duty,
including time spent in travel status.
``(D) Failure to make differential wage payments.--
The employment credit with respect to a qualified
replacement employee of the taxpayer for any taxable
year shall be zero if the taxpayer does not make all
differential wage payments (as defined by section
3401(i)(2)) for the taxable year to the qualified
employee or the qualified self-employed taxpayer (as
the case may be) who is replaced by the qualified
replacement employee.
``(c) Self-Employment Credit.--For purposes of this section--
``(1) In general.--The self-employment credit of a
qualified self-employed taxpayer for any taxable year is equal
to 50 percent of the lesser of--
``(A) the excess, if any, of--
``(i) the self-employed taxpayer's average
daily self-employment income for the taxable
year over
``(ii) the average daily military pay and
allowances received by the taxpayer during the
taxable year, while participating in qualified
reserve component duty to the exclusion of the
taxpayer's normal self-employment duties for
the number of days the taxpayer participates in
qualified reserve component duty during the
taxable year, including time spent in a travel
status, or
``(B) $30,000.
``(2) Average daily self-employment income and average
daily military pay and allowances.--As used with respect to a
self-employed taxpayer--
``(A) the term `average daily self-employment
income' means the self-employment income (as defined in
section 1402(b)) of the taxpayer for the taxable year
plus the amount paid for insurance which constitutes
medical care for the taxpayer for such year (within the
meaning of section 162(l)) divided by the difference
between--
``(i) 365, and
``(ii) the number of days the taxpayer
participates in qualified reserve component
duty during the taxable year, including time
spent in a travel status, and
``(B) the term `average daily military pay and
allowances' means--
``(i) the amount paid to the taxpayer
during the taxable year as military pay and
allowances on account of the taxpayer's
participation in qualified reserve component
duty, divided by
``(ii) the total number of days the
taxpayer participates in qualified reserve
component duty, including time spent in travel
status.
``(3) Qualified self-employed taxpayer.--The term
`qualified self-employed taxpayer' means a taxpayer who--
``(A) has net earnings from self-employment (as
defined in section 1402(a)) for the taxable year, and
``(B) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States.
``(d) Credit in Addition to Deduction.--The employment credit or
the self-employment credit provided in this section is in addition to
any deduction otherwise allowable with respect to compensation actually
paid to a qualified employee, qualified replacement employee, or
qualified self-employed taxpayer during any period the qualified
employee or qualified self-employed taxpayer participates in qualified
reserve component duty to the exclusion of normal employment duties.
``(e) Coordination With Other Credits.--The amount of credit
otherwise allowable under sections 51(a) and 1396(a) with respect to
any employee shall be reduced by the credit allowed by this section
with respect to such employee.
``(f) Limitations.--
``(1) Application with other credits.--The credit allowed
under subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax for the taxable year reduced
by the sum of the credits allowable under subpart A and
sections 27, 29, and 30, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of the
armed forces of the united states.--No credit shall be allowed
under subsection (a) to a taxpayer for--
``(A) any taxable year, beginning after the date of
the enactment of this section, in which the taxpayer is
under a final order, judgment, or other process issued
or required by a district court of the United States
under section 4323 of title 38 of the United States
Code with respect to a violation of chapter 43 of such
title, and
``(B) the 2 succeeding taxable years.
``(3) Disallowance with respect to persons ordered to
active duty for training.--No credit shall be allowed under
subsection (a) to a taxpayer with respect to any period by
taking into account any person who is called or ordered to
active duty for any of the following types of duty:
``(A) Active duty for training under any provision
of title 10, United States Code.
``(B) Training at encampments, maneuvers, outdoor
target practice, or other exercises under chapter 5 of
title 32, United States Code.
``(C) Full-time National Guard duty, as defined in
section 101(d)(5) of title 10, United States Code.
``(g) General Definitions and Special Rules.--For purposes of this
section--
``(1) Small business employer.--
``(A) In general.--The term `small business
employer' means, with respect to any taxable year, any
employer who employed an average of 50 or fewer
employees on business days during such taxable year.
``(B) Controlled groups.--For purposes of
subparagraph (A), all persons treated as a single
employer under subsection (b), (c), (m), or (o) of
section 414 shall be treated as a single employer.
``(2) Military pay and allowances.--The term `military pay'
means pay as that term is defined in section 101(21) of title
37, United States Code, and the term `allowances' means the
allowances payable to a member of the Armed Forces of the
United States under chapter 7 of that title.
``(3) Qualified reserve component duty.--The term
`qualified reserve component duty' includes only active duty
performed, as designated in the reservist's military orders, in
support of a contingency operation as defined in section
101(a)(13) of title 10, United States Code.
``(4) Special rule for certain manufacturers.--
``(A) In general.--In the case of any qualified
manufacturer, paragraph (1)(A) of this subsection shall
be applied by substituting `100' for `50'.
``(B) Qualified manufacturer.--For purposes of this
paragraph, the term `qualified manufacturer' means any
person if--
``(i) the primary business of such person
is classified in sector 31, 32, or 33 of the
North American Industrial Classification
System, and
``(ii) all of such person's facilities
which are used for production in such business
are located in the United States.
``(5) Carryback and carryforward allowed.--
``(A) In general.--If the credit allowable under
subsection (a) for a taxable year exceeds the amount of
the limitation under subsection (f)(1) for such taxable
year (in this paragraph referred to as the `unused
credit year'), such excess shall be a credit carryback
to each of the 3 taxable years preceding the unused
credit year and a credit carryforward to each of the 20
taxable years following the unused credit year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the credit carryback and
credit carryforward under subparagraph (A).
``(6) Certain rules to apply.--Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall apply.''.
(b) Conforming Amendment.--Section 55(c)(2) of the Internal Revenue
Code of 1986 is amended by inserting ``30B(f)(1),'' after
``30(b)(3),''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end of 30A the following new item:
``Sec. 30B. Employer wage credit for activated military reservists.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 625. EMPLOYER CONTRIBUTIONS TO IRAS OF CERTAIN MEMBERS OF THE
UNIFORMED SERVICES.
(a) In General.--Section 3121 of the Internal Revenue Code of 1986
is amended by adding at the end the following:
``(z) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (a) (other
than paragraphs (1) and (5)) shall exclude from the term `wages' any
employer payment on behalf of an individual to an individual retirement
plan if such payment is made by the employer to such plan with respect
to any period during which the individual is performing service in the
uniformed services while on active duty for a period of more than 30
days.''.
(b) Railroad Retirement.--Subsection (e) of Section 3231 of such
Code is amended by adding at the end the following new paragraph:
``(13) Employer contributions to iras of certain members of
the uniformed services.--Nothing in any paragraph of this
subsection (other than paragraph (2)) shall exclude from the
term `compensation' any amount described in section 3121(z).''.
(c) Federal Unemployment Tax.--Section 3306 of such Code is amended
by adding at the end the following:
``(v) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (b) (other
than paragraphs (1) and (5)) shall exclude from the term `wages' any
employer payment on behalf of an individual to an individual retirement
plan if such payment is made by the employer to such plan with respect
to any period during which the individual is performing service in the
uniformed services while on active duty for a period of more than 30
days.''.
(d) Withholding.--Section 3401 of such Code, as amended by this
Act, is amended by adding at the end the following new subsection:
``(j) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (a) (other
than paragraph (12)) shall exclude from the term `wages' any amount
described in section 3121(z).''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid after December 31, 2004.
TITLE VII--FUNDING
SEC. 701. REPEAL OF 2001 TAX CUT FOR HIGH INCOME TAXPAYERS.
(a) In General.--Section 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(j) Repeal of 2001 Tax Cut for High Income Taxpayers.--The amount
determined under subsection (a), (b), (c), or (d), as the case may be,
shall be increased by 4.6 percent of so much of taxable income as
exceeds $1,000,000 in the case of individuals to whom subsection (a)
applies ($500,000 in any other case).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2005.
SEC. 702. REPEAL OF SCHEDULED TERMINATION OF PHASEOUT OF PERSONAL
EXEMPTIONS.
(a) In General.--Paragraph (3) of section 151(d) of the Internal
Revenue Code of 1986 is amended by striking subparagraphs (E) and (F).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2005.
SEC. 703. REPEAL OF SCHEDULED PHASEOUT OF OVERALL LIMITATION ON
ITEMIZED DEDUCTIONS.
(a) In General.--Section 68 of the Internal Revenue Code of 1986 is
amended by striking subsections (f) and (g).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2005.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Veterans' Affairs, and in addition to the Committees on Ways and Means, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Veterans' Affairs, and in addition to the Committees on Ways and Means, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Veterans' Affairs, and in addition to the Committees on Ways and Means, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Veterans' Affairs, and in addition to the Committees on Ways and Means, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Military Personnel.
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