Increase in Rates Payable Under  GI Bill

From: "Bruce K. Melson" <>
Coast Guard
38 CFR Part 21
RIN 2900-AJ88
Increase in Rates Payable Under the Montgomery GI Bill--Selected
AGENCIES: Department of Defense, Department of Transportation (Coast
Guard), and Department of Veterans Affairs.

ACTION: Final rule.


SUMMARY: By statute, the monthly rates of basic educational assistance
payable to reservists under the Montgomery GI Bill--Selected Reserve
must be adjusted each fiscal year. In accordance with the statutory
formula, the regulations governing rates of basic educational
assistance payable under the Montgomery GI Bill--Selected Reserve for
fiscal year 2000 (October 1, 1999, through September 30, 2000) are
changed to show a 1.6% increase in these rates.

    Effective Date: October 4, 2000.
    Applicability Date: The changes in rates are applied retroactively
to conform to statutory requirements. For more information concerning
the dates of application, see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Assistant
Director for Policy and Program Development, Education Service,
Veterans Benefits Administration (202) 273-7187.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 10 U.S.C.
16131(b) for fiscal year 2000, the rates of basic educational
assistance under the Montgomery GI Bill--Selected Reserve payable to
students pursuing a program of education full time, three-quarter time,
and half time must be increased by 1.6%, which is the percentage by
which the total of the monthly Consumer Price Index-W for July 1, 1998,
through June 30, 1999, exceeds the total of the monthly Consumer Price
Index-W for July 1, 1997, through June 30, 1998.
    10 U.S.C. 16131(b) requires that full-time, three-quarter time, and
half-time rates be increased as noted above. In addition, 10 U.S.C.
16131(d) requires that monthly rates payable to reservists in
apprenticeship or other on-the-job training must be set at a given
percentage of the full-time rate. Hence, there is a 1.6% raise for such
training as well.
    10 U.S.C. 16131(b) also requires that the Department of Veterans
Affairs (VA) pay reservists training less than half time at an
appropriately reduced rate. Since payment for less than half-time
training became available under the Montgomery GI Bill--Selected
Reserve in fiscal year 1990, VA has paid less than half-time students
at 25% of the full-time rate. Changes are made consistent with the
authority and formula described in this paragraph.
    Nonsubstantive changes also are made for the purpose of clarity.
    The changes set forth in this final rule are effective from the
date of publication, but the changes in rates are applied from October
1, 1999, in accordance with the applicable statutory provisions
discussed above.
    Substantive changes made by this final rule merely reflect
statutory requirements and adjustments made based on previously
established formulas. Accordingly, there is a basis for dispensing with
prior notice and comment and delayed effective date provisions of 5
U.S.C. 552 and 553.
    The Secretary of Defense, the Commandant of the Coast Guard, and
the Secretary of Veterans Affairs hereby certify that this final rule
will not have a significant economic impact on a substantial number of
small entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601-612. This final rule directly affects only individuals and
does not directly affect small entities. Pursuant to 5 U.S.C. 605(b),
this final rule, therefore, is exempt from the initial and final
regulatory flexibility analyses requirements of sections 603 and 604.

Executive Order 12866

    The Office of Management and Budget has reviewed this final rule
under Executive Order 12866.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires (in section 202) that
agencies prepare an assessment of anticipated costs and benefits before
developing any rule that may result in an expenditure by State, local,
or tribal governments, in the aggregate, or by the private sector of
$100 million or more in any given year. This rule would have no
consequential effect on State, local, or tribal governments.
    There is no Catalog of Federal Domestic Assistance number for the
program affected by this final rule.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights,
Claims, Colleges and universities, Conflict of interests, Defense
Department, Education, Employment, Grant programs-education, Grant
programs-veterans, Health programs, Loan programs-education, Loan
programs-veterans, Manpower training programs, Reporting and
recordkeeping requirements, Schools, Travel and transportation
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: March 24, 2000.
Togo D. West, Jr.,
Secretary of Veterans Affairs.
    Approved: April 28, 2000.
Charles L. Cragin,
Principal Deputy Assistant Secretary of Defense for Reserve Affairs.
    Approved: April 25, 2000
F.L. Ames,
U.S. Coast Guard, Assistant Commandant for Human Resources.

    For the reasons set out above, 38 CFR part 21, subpart L, is
amended as set forth below.


Subpart L--Educational Assistance for Members of the Selected

    1. The authority citation for part 21, subpart L continues to read
as follows:

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

    2. Section 21.7636 is amended by:
    A. In paragraph (a)(3), removing ``September 30, 1998'' and adding,
in its place, ``September 30, 1999''; and removing ``October 1, 1999''
and adding, in its place, ``October 1, 2000''.
    B. Revising paragraph (a)(1), (a)(2) introductory text, and

Sec. 21.7636  Rates of payment.

    (a) * * *
    (1) Except as otherwise provided in this section or in * 21.7639,
the monthly rate of basic educational assistance payable for training
that occurs after September 30, 1999, and before October 1, 2000, to a
reservist pursuing a program of education is the amount stated in this

                           Training                               rate
Full time....................................................    $255.00
\3/4\ time...................................................     191.00
\1/2\ time...................................................     127.00
\1/4\ time...................................................      63.75

[[Page 59128]]

    (2) The monthly rate of basic educational assistance payable to a
reservist for apprenticeship or other on-the-job training full time
that occurs after September 30, 1999, and before October 1, 2000, is
the rate stated in this table:

                       Training period                            rate
First six months of pursuit of training......................    $191.25
Second six months of pursuit of training.....................     140.25
Remaining pursuit of training................................      89.25

* * * * *
[FR Doc. 00-25488 Filed 10-3-00; 8:45 am]


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