VA Loan Updates

Soon after being sworn in, the 110th Congress brought a flurry of proposed GI Bill reforms to both houses of Congress. With a new party in charge and 24 GI Bill-related bills introduced on the floor, the political climate seemed right for real change. As Representative Rick Larsen (D-WA) said in a May press release, “Times have changed, and we owe it to our veterans to keep up.”

Each of the proposed bills address specific failings of the current Montgomery GI Bill, which includes arbitrary deadlines, mandatory payroll contributions, limited benefit transferability, inequity between active duty and reserve programs, and inadequate payment rates.

In January, Representative Roscoe Bartlett (R-MD) was one of the first to jump in as he reintroduced his “Bartlett Montgomery GI Bill Act” from the previous year. Bartlett’s bill would allow servicemembers to elect to transfer their GI Bill benefit to a dependent upon re-enlistment, reimburse the GI Bill enrollment contributions for those who extend their service, and increase the GI Bill payment rate for members of the National Guard and Reserve. Currently the GI Bill only allows transferability under very limited circumstances.

Other GI Bill reform related bills that have been introduced in 2007 include the following:

* Senator Maria Cantwell (D-WA) and Representative Rick Larson (D-WA) introduced the “Montgomery GI Bill for Life.” Their bill would remove the 10-year eligibility limit which gives veterans only 10 years from the date they separate from active duty to use their GI Bill.

* Representative Lee Terry’s (R-NE)”Montgomery G.I. Bill Improvement Act of 2007″ would exempt enlisted personnel in pay grade E-5 and below from paying the currently required $1,200 GI Bill contributions. Currently servicemembers are required to have their payroll deducted $100 a month for the first 12 months of enlistment to participate in the GI Bill.

* Senator Chuck Hagel’s (R-NE)”Montgomery GI Bill Enhancement Act of 2007″ would completely eliminate the mandatory $1,200 contribution requirement and refund those who have paid it in the past. In addition it would open the door for those who previously elected not to participate in the Montgomery GI Bill. Currently servicemembers who initially refuse the GI Bill are permanently ineligible.

* Representative Peter Visclosky’s (D-IN) Montgomery GI Bill Second Chance Act of 2007 would allow servicemembers to choose to participate in the Montgomery GI Bill in October of any year. Servicemembers currently have a one time shot at enrolling in the GI Bill during their first 72 hours of enlistment.

* Senator Blanche Lincoln (D-AR) and Representative Vic Snyder’s (D-AR) Total Force Educational Assistance Enhancement and Integration Act of 2007, seeks to remove the DoD’s role in the program and place administrative responsibility within the Department of Veterans’ Affairs. In addition the program would increase the monthly benefit paid to members of the Guard and Reserve. Currently the DoD managed system falls under a separate set of guidelines from the active duty GI Bill and the reserve GI Bill payment rate is not indexed to the active duty GI Bill.

Of the 24 bills currently before the 110th Congress, the “Post-9/11 Veterans Educational Assistance Act of 2007,” penned by Sen. Jim Webb (D-VA), offers the most radical and sweeping changes and has the largest support in the Senate. Webb’s bill would create an entirely new GI Bill program for those who have served on or after Sept. 11, 2001. Webb’s new program would provide direct tuition assistance and a $1000 monthly stipend for veterans and active duty that enroll in VA approved higher education programs. In addition this bill would extend the 10-year benefit eligibility limit to 15 years. Rep. Robert Scott (D-VA) introduced a duplicate bill in the House in June.

“Our nation has never erred when it made sustained new investments in higher education and job training,” Webb said. “The bill I have introduced is not only the right thing to do for our men and women in uniform, but it is also strong tonic for an economy plagued by growing disparities in wealth, stagnant wages, and the outsourcing of American jobs.”

However, to date, none of proposed legislation has made it out of committee. It appears the initial spotlight on reform has dimmed and the calls for change have quieted. This lack of activity may indicate that 2007 will turn out to be just another year of missed opportunities.

According to Jack Mordente, president of the National Association of Veterans Program Administrators (NAVPA), “It will take two things to get any of the 24 GI Bill related bills passed: bi-partisan cooperation and money.”

Each year members of Congress attempt to show their support for veterans by introducing new GI Bill legislation, but in the end these bills typically die in committee. Without a bi-partisan effort to drive GI Bill reform, Sen. Webb’s bill — like the other 23 related bills before Congress — will stand little chance of passage.

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