HOUSE PASSES SMITH BILL INCREASING VETERANS’ EDUCATION BENEFIT BY 70%
June, 2001

Largest-Ever Increase Would Bring Dream of Higher Education To More Veterans and Aid Military Recruitment

WASHINGTON, D.C. - The House today overwhelmingly passed legislation (H.R. 1291) to hike veterans’ education benefits over the next
three years from $23,400 to $39,600, a 70 percent increase over current law.

            “Today’s House approval of H.R. 1291 is an historic moment” said Veterans’ Affairs Committee Chairman Chris Smith.  “Our
legislation will boost the monthly education benefit from $650 to $1100 by October 1, 2002,” he said.

“That’s the largest increase in veterans educational assistance history - a 70% increase over current law,” Smith said.

H.R. 1291, the 21st Century Montgomery GI Bill Enhancement Act, has over 100 cosponsors and is supported by the Veterans of Foreign
Wars, The American Legion, Vietnam Veterans of America, Paralyzed Veterans of America and more than a dozen veterans service,
military, and higher education organizations, as well as the Secretary of Veterans’ Affairs, the Honorable Anthony J. Principi.

“This bill responds to the rising costs of higher education that have eroded the ability of MGIB recipients to attend college,” said
Chairman.  “Our ultimate goal is to have MGIB pay tuition, fees, and a monthly subsistence allowance, thus allowing veterans to
pursue enrollment in any educational institution in America,” he said.

“H.R. 1291 is good for veterans, it is good for education, it is good for the military and national defense and it is good for our
economy,” said Smith.

“The GI Bill is one of the greatest laws Congress ever passed,” said Smith. “In the decade following World War II, more than two
million eligible men and women went to college using these educational benefits.  The result was an American workforce enriched by
450,000 engineers, 238,000 teachers, 91,000 scientists, 67,000 doctors, 22,000 dentists and another million college-educated men and
women.  It created the foundation of today’s prospering middle class,” he said.

“Millions of veterans used their GI Bill benefits to further dreams that otherwise would have eluded them and built a modern America
the whole world envies.   The bill the House passed today is part of that proud tradition of helping veterans catch up on careers
and education they delayed in order to serve their country,” Smith said.

            “Significantly, full funding for H.R. 1291 is already included in the Congressional Budget Resolution approved earlier
this year,” said Smith.  “The Conference Report specifically includes language to cover the $230 million first year cost of
implementing this legislation,” he said.

“The need to improve the current MGIB is clear,” Smith said.  “Only about half of all veterans eligible for MGIB have used it since
1985, even though the servicemember pays $1,200 from his or her basic pay to become eligible.  With today’s increase, we expect that
another 45,000 veterans will take advantage of MGIB over the next ten years,” he said.

With today’s approval, H.R. 1291 now moves to the Senate for their consideration

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