Noteboom The Law Firm

Proposed Improvements To GI Bill Bring Hefty Price Tag

October 21, 2010 - There is a senate bill (S 3447) currently making the rounds that focuses on improving the Post-9/11 GI Bill. The bill is bipartisan and is facing a very dramatic problem: a $1.3 billion price tag, according to the Congressional Budget Office (CBO), which is charged with establishing how much legislation will ultimately cost.

The bill's improvements for the Post-9/11 GI Bill include: 

• Providing allowances for books to active-duty members;
• Allowing covered benefits to include non-degree vocational training; and
• Increasing eligibility for National Guard and Reserve Members.

Over the next 10 years, the bill will cost $2.3 billion if it is passed. Congressional rules mandate, however, the money to pay for this bill would have to come from either cutting other programs or somehow increasing revenue. The bill was approved by the Senate Veterans' Affairs Committee, but is being held until a final cost estimate is determined.

Some of the biggest costs of the proposed improvements come from funding non-degree courses. The price tag for on-the-job-training, apprenticeships, and other courses issuing certificates and not degrees will cost $1.1 billion over the first 5 years, and $2.6 billion over the first 10.

The bill does provide some savings, however. By removing some forms of financial assistance, the bill will cut $402 million. By paying monthly stipends for housing based on credits carried, the bill will cut $325 million. The bill would also eliminate those veterans separated from the military based on pre-existing medical conditions from being eligible for Post-9/11 GI Bill benefits.