IMMEDIATE RELEASE
TWO BILLS OK'D TO STRENGTHEN JOB PROGRAMS AND INCREASE VETS BENEFITS & PENSIONS
May 2, 2002

Benefits Subcommittee OKs Two Bills to Strengthen Job Programs & Increase Pensions and Benefits for Veterans

(Washington, DC) -- The House Veterans' Affairs Subcommittee on Benefits approved legislation (H.R. 4015) to reform and strengthen federal job training and placement programs for veterans. The Subcommittee also backed legislation (H.R. 4085) to increase disability compensation payments, and expand several other benefit programs for veterans, their dependents and survivors.

H.R. 4015, the Jobs for Veterans Act, sponsored by Benefits Subcommittee Chairman Mike Simpson (ID-2) and Silvestre Reyes (TX-16), would reform the Veterans Employment and Training Service (VETS) in the Labor Department which has responsibility for helping military veterans transition to the civilian job market.

"H.R. 4015 takes a very direct approach: those programs that produce favorable results for veterans will be rewarded; those that don't will not," said Simpson. "Furthermore, our legislation will establish a new performance accountability system that will continually measure whether veterans are being helped. Whether the service member is stationed at the 38th parallel in Korea, on a nuclear sub in the South Pacific, or at a base right here in the United States, this initiative will put job opportunities or job training right at their finger tips," he said.

H.R. 4015 authorizes $260 million over five years for performance incentive awards to states that provide the highest quality of services or that have made significant improvements in service for veterans job placement. The bill would provide states with $200 million in staffing grants, and establish a new comprehensive performance accountability system to measure  the performance of veterans' employment and training programs. H.R. 4015 would also establish an Internet-based one-stop job training and placement service for military personnel and veterans, and would create a new presidential 'National Hire Veterans Committee' to encourage employers to hire veterans and disabled veterans.

The Subcommittee also approved H.R. 4085, the Veterans and Survivors' Benefits Expansion Act of 2002, sponsored by Chairman Chris Smith (NJ-4), that would increase compensation payments to service-connected disabled veterans and their dependents through a cost-of-living adjustment (COLA) equal to the Social Security COLA effective December 1, 2002. The Congressional Budget Office projects that this increase will be 2.3%. H.R. 4085 was amended to include provisions from another Smith bill, H.R. 3731, to increase funding for State Approving Agencies, which certify the eligibility of schools and training programs for GI Bill recipients.

"The performance of our nation's all-volunteer armed forces remind us of the imporant role these brave men and women play in defense of our nation and our freedom. When they return home we have an obligation to make them whole and assist them when they transition into civilian life," said Smith. "With approval of H.R. 4015 today, we have taken another step forward for our veterans and for all of our fighting men and women in the future," he said.

H.R. 4085 was also amended by the Subcommittee to allow surviving spouses of veterans who remarry after age 65 to continue receiving their dependency and indemnity compensation, eligibility for CHAMPVA medical care, education, and housing loan benefits. Those surviving spouses who remarried after age 65 prior to enactment of the bill would have one year from date of enactment to reapply for benefits. This provision was modified from legislation originally introduced by Veterans' Affairs Committee Vice Chairman Michael Bilirakis (FL-9).

"Today's action for these long suffering surviving spouses should be seen as a down payment being made under budgetary constraints. It is a starting point, not an ending point, and the Committee will revisit this issue early in the next Congress in order to more fully address this inequity," said Smith. "For these resilient women - so many of whom have made sacrifice after sacrifice, both while their husbands served, and then after they died - deserve the right to remarry later in life without suffering severe financial penalties," he said.

Several other provisions were added to H.R. 4085 in the substitute amendment offered by Smith and adopted by the Subcommittee, including requirements that the home loan fees charged to qualifying members of the Selected Reserve be the same as fees charged active duty veterans; an increase in Veterans' Mortgage Life Insurance coverage from $90,000 to $150,000; and a change in law to allow veterans over the age of 70 to continue coverage under Veterans' Mortgage Life Insurance.

Both H.R. 4015 and H.R. 4085 were reported favorably to the full Committee, which is expected to take further action on them at next week's scheduled Committee markup session on Thursday, May 9, 2002.
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