expenses, or losses which may arise under the provisions of this chapter with respect to transactions arising from the guaranty of loans under this section have been paid, any balance remaining in the Fund shall be deposited by the Administrator with the Treasurer of the United States to the credit of miscel laneous receipts.

"(h) Moneys in the Fund may be invested by the Administrator from time to time in obligations of the United States or obligations guaranteed as to principal and interest by the United States."

(b) The table of sections at the beginning of chapter 37 of such title is amended by inserting immediately below

"1817. Release from liability under guaranty."

the following:

"1818. Veterans who serve between January 31, 1955, and July 1, 1963."

(c) Section 1822 (a) of such title is amended by striking out "or 1813", and inserting in lieu thereof "1813, or 1818".

SEC. 5. (a) Section 2101 (a) of title 38 of the United States Code is amended by inserting after "Korean conflict" the following: "or who served on active duty between January 31, 1955, and July 1, 1963,".

(b) Paragraphs (1), (2), and (3) of section 2102 (a) of such title are amended to read as follows:

"(1) $300 for persons who served on active duty during the Korean conflict, if such persons performed active duty for sixty days or more and served outside the continental limits of the United States or in Alaska.

"(2) $200 for persons who served on active duty during the Korean conflict, if such persons performed active duty for sixty days or more, no part of which was performed outside the continental limits of the United States or in Alaska.

"(3) $100 for persons who served on active duty during the Korean conflict, if such persons performed active duty for less than sixty days, and $100 for persons who entered the service between January 31, 1955, and July 1, 1963, and who are discharged or released from active duty on or after the date of the enactment of the Veterans' Readjustment Assistance Act of 1959, if such persons served on active duty for sixty days or more, irrespective of where such active duty was performed."

(c) Section 2104 of such title is amended by adding at the end of such section the following new sentence: "Any member of the Armed Forces who qualifies for mustering-out payments under this chapter both by reason of active duty during the Korean conflict and active duty between January 31, 1955, and July 1, 1963, may elect to receive mustering-out payments under either period of active duty, but not both."

[S. 270, 86th Cong., 1st sess.]

A BILL To extend the educational provisions of the Veterans' Readjustment Assistance Act of 1952 until such time as existing laws authorizing compulsory military service cease to be effective

Be it enacted by the Senate and House of Representatives of the United States of America on Congress assembled, That (a) section 201 (1) of the Veterans' Readjustment Assistance Act of 1952 (38 U.S.C. 911) is amended to read as follows:

"(1) the term 'basic service period' means the period beginning on June 27, 1950, and ending on the day before the date of termination of compulsory military service under the laws of the United States, except that with respect to a person in the active service in the Armed Forces on such day, such term means the period beginning on June 27, 1950, and ending on the date of the person's first discharge or release from such service after such day :".

(b) Section 201(2)(A) of such Act is amended by striking out "January 31, 1955" and inserting in lieu thereof "the day before the date of termination of compulsory military service under the laws of the United States".

(c) Section 201 of such Act is amended by striking out the period at the end of paragraph (11) and inserting in lieu thereof a semicolon, and by adding after paragraph (11) a new paragraph as follows:

"(12) the term 'date of termination of compulsory military service under the laws of the United States' means the day following the last day on

which involuntary induction of civilians into the Armed Forces of the United States is authorized under (A) the Universal Military Training and Service Act, as now in effect or hereafter amended, or (B) any law enacted after the date of enactment of this paragraph, if such law is enacted within six months after the Universal Military Training and Service Act ceases to be effective."

(d) Section 212 (c) of such Act (38 U.S.C. 917) is amended by striking out "February 1, 1955" each place it appears therein and inserting in lieu thereof "the date of termination of compulsory military service under the laws of the United States".

(e) Section 213 of such Act (38 U.S.C. 918) is amended by striking out ", and in no event shall education or training be afforded under this title after January 31, 1965".

(f) The amendments made by this Act shall take effect as of February 1, 1955.

[S. 930, 86th Cong., 1st sess.]

A BILL To extend educational benefits now provided for Korean conflict veterans to persons serving in the Armed Forces after January 31, 1955, and before the termination of compulsory military service under existing laws of the United States

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Veterans' Educational Benefits Act of 1959".

SEC. 2. (a) Section 1601 (a) (1) of title 38 of the United States Code is amended to read as follows:

"(1) The term 'basic service period' means the period beginning on June 27, 1950, and ending on the day before the date of termination of compulsory military service under the laws of the United States, except that with respect to a person in the active service in the Armed Forces on such day, such term means the period beginning on June 27, 1950, and ending on the date of the person's first discharge or release from such service after such day."

(b) Section 1601 (a) (2) (A) of such title is amended by striking out "Korean conflict", and inserting in lieu thereof "basic service period".

(c) Section 1601(a)(2) (C) of such title is amended by striking out "Korean conflict", and inserting in lieu thereof "basic service period".

(d) Subsection (a) of section 1601 of such title is amended by adding at the end thereof the following new paragraph:

"(10) The term 'date of termination of compulsory military service under the laws of the United States' means the day following the last day on which involuntary induction of civilians into the Armed Forces of the United States is authorized under (A) the Universal Military Training and Service Act, as now in effect or hereafter amended, or (B) any law enacted after the date of the enactment of this paragraph, if such law is enacted within 6 months after the Universal Military Training and Service Act ceases to be effective."

(e) Subsection (c) of section 1601 of such title is amended by striking out "Korean conflict", and inserting in lieu thereof "basic service period".

SEC. 3. (a) Subsection (a) of section 1612 of title 38 of the United States Code is amended by striking out the period at the end of the first sentence and inserting in lieu thereof the following: "; except that an eligible veteran who first entered active service in the Armed Forces after January 31, 1955, and who was discharged or released from such service prior to the date of the enactment of the Veterans' Educational Benefits Act of 1959 shall be entitled to initiate a program of education or training under this chapter at any time within three years after the date of the enactment of the Veterans' Educational Benefits Act of 1959."

(b) Subsection (c) of such section is amended by

(1) striking out "February 1, 1955" the first time it appears therein, and inserting in lieu thereof "the date of termination of compulsory military service under the laws of the United States"; and

(2) striking out "February 1, 1955" the last time it appears therein, and inserting in lieu thereof "such date".

SEO. 6. (a) The amendments made by this Act shall take effect as of February 1, 1955.

(b) The Administrator of Veterans' Affairs shall prescribe regulations to assure payment of benefits under chapter 33 of title 38 of the United States Code to persons who, by reason of the amendments made by this Act, become entitled to receive payment of such benefits with respect to any period prior to the date of the enactment of this Act.

[S. 1050, 86th Cong., 1st sess.]

A BILL To provide educational assistance for the children of service men and women who suffer death from a service-connected disability arising out of active military service during the period beginning on February 1, 1955, and ending on June 30, 1963.

Be it enacted by the Senate and House of Representative of the United States of America in Congress assembled, That section 1701(a)(1) of title 38 of the United States Code is amended by striking out "or the Korean conflict" and inserting in lieu thereof the following: "the Korean conflict, or the period beginning on February 1, 1955, and ending on June 30, 1963,".

(b) Subsection (d) of such section is amended by striking out "or the Korean conflict," and inserting in lieu thereof the following: "the Korean conflict, or the period beginning on February 1, 1955, and ending on June 30, 1963,".

(c) Section 1712 of such title is amended by redesignating subsection (b) as subsection (c) and inserting a new subsection (b) as follows:

"(b) In the case of any person (1) who becomes eligible for educational assistance under this chapter by virtue of the amendments to such chapter made by the Act which enacted this subsection, and (2) who is above the age of seventeen years and below the age of twenty-three years on the date of enactment of such Act, the period of eligibility prescribed by this section shall not end with respect to such person until five years after the date of enactment of such Act.”

[S. 750, 86th Cong., 1st sess.]

A BILL To liberalize the conditions under which a veteran satisfactorily pursuing a program of education or training under the Veterans' Readjustment Assistance Act of 1952 may change to a second program

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the second sentence of section 223(b) of the Veterans' Readjustment Assistance Act of 1952 (38 U.S.C. 928) is amended by deleting the word "or" following the semicolon at the end of clause (1), redesignating clause (2) as clause (3), and inserting immediately following clause (1) a new clause (2) to read as follows:

"(2) although the eligible veteran is making satisfactory progress in his present program, the program to which he desires to change is more suitable to his aptitudes, interests, abilities, or previous education or training, or". SEC. 2. If an eligible veteran applies for a change of program under title II of the Veterans' Readjustment Assistance Act of 1952 which is approvable under the amendments made by section 1 hereof but which would not have been approvable under the prior law, any period of time between the date that he ceased to pursue his original program and the date of enactment of this Act shall be disregarded in determining compliance with the continuous pursuit requirements of section 212 (b) of the Veterans' Readjustment Assistance Act of 1952.

[S. 906, 86th Cong., 1st sess.]

A BILL To amend section 1622 of title 38 of the United States Code in order to clarify the meaning of the term "change of program of education or training" as used in such section

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1622 of title 38 of the United States Code is amended by adding at the end of such section the following new subsection:

"(c) As used in this section the term 'change of program of education or training' shall not be deemed to include a change from the pursuit of one program to pursuit of another where the first program is prerequisite to, or generally required for, entrance into pursuit of the second."

(A digest and explanation of S. 1138 follows:)

DIGEST OF S. 1138, INTRODUCED BY MR. YARBOROUGH (FOR HIMSELF, MR. HILL, Mr. MURRAY, MR. KENNEDY, Mr. McNamara, MR. MORSE, MR. CLARK, MB. RANDOLPH, MR. WILLIAMS OF NEW JERSEY, MR. SPARKMAN, MR. CHAVEZ, MR. GREEN, MR. LANGER, MR. EASTLAND, Mr. MagnuSON, MR. HUMPHREY, MR. KEFAUVER, MBS. SMITH, MR. PASTORE, MR. HENNINGS, MR. NEUBERGER, MB. YOUNG OF OHIO, MR. HART, MR. MCGEE, MR. BYRD OF WEST VIRGINIA, and Mr. Gruening) S. 1138 provides readjustment assistance as shown below for post-Korean veterans, i.e., persons who perform active duty in the Armed Forces between January 31, 1955, the end of the Korean conflict, and July 1, 1963, the proposed new termination date of the compulsory draft law. Applicable throughout S. 1138 is a requirement of discharge under conditions other than dishonorable. Educational and vocational training assistance.—Eligibility conditioned upon 90 days or more of active duty or discharge for service-connected disability. Period of education or training (not to exceed 36 months) is calculated by multiplying 11⁄2 times each day of active duty. During education period veteran receives monthly allowance on parity with present allowance for Korean veteran. For full-time college training the monthly allowance would be: If no dependents, $110; if one dependent, $135; if more than one dependent, $160. Veteran must begin education or training within 3 years after discharge or enactment of S. 1138, whichever is later; and must complete education within 8 years after discharge or enactment of S. 1138, as case may be. No allowance shall be paid for any period prior to 60 days after enactment of S. 1138, and all education or training ends on June 30, 1973.

Vocational rehabilitation training for disabled veterans.-Eligibility conditioned upon need of such training, as determined by Administrator of Veterans' Administration (VA) to overcome handicap of disability rated at 10 percent or more and incurred on active duty after January 31, 1955. Period of training generally limited to 4 years; however, in appropriate cases, additional time is granted. Training may be in college, below college, or in any other type of training designed to lead to the veteran's vocational rehabilitation. Although no overall termination date applies to the program, there are dates beyond which veterans may not train. Generally veterans may not train more than 9 years after discharge, or 9 years after enactment of S. 1138, whichever is later. In certain hardship cases, these limitations may be extended by 4 years. During rehabilitation period, VA pays tuition, cost of books and other school expenses, and veteran receives monthly subsistence allowance on parity with present allowance for Korean veterans. For full-time institutional training, the monthly subsistence allowance would be: if no dependents, $75; if one dependent, $105; if more than one dependent, $120.

Loan assistance.—Eligibility conditioned upon 90 days or more of active duty, or discharge for service-connected disability. Widow of veteran who died of service-connected disability would also be eligible. Loans are for purpose of purchasing (a) homes, including farm homes, and (b) farmlands, livestock, etc., to be used by veteran in farming operations. Banks or other lenders make loans with Government guaranteeing 60 percent, up to $7,500, on residential real estate, and 50 percent, up to $4,000, on nonresidential real estate. Loans are subject to guarantee fee not to exceed 1⁄2 of 1 percent of loan amount, to be used to cover losses on loans. Interest rates and maturities of loans controlled by laws applicable to Korean veterans, now and in future. Guarantee loan program ends on July 1, 1973, with an additional year for processing loan applications received by VA prior to such date. In addition, in certain small towns and rural areas, and until July 25, 1960, VA may lend up to $13,500 directly to veteran when private capital is not available for guarantee loan. Mustering-out pay.-One hundred dollars for persons who perform 60 days or more of active duty, either domestically or overseas, and who have rank of captain or less in Army or Air Force, or lieutenant in Navy. No payment for discharges prior to enactment of S. 1138.

DETAILED EXPLANATION OF 8. 1138

The bill-the Veterans' Readjustment Assistance Act of 1959-has as its purpose the establishment of a balanced program of readjustment assistance for the benefit of post-Korean veterans, i.e., persons who first enter on active mili40408-59- -3

tary duty in the Armed Forces between January 31, 1955, and July 1, 1963. The opening date respecting this class of veterans, January 31, 1955, is keyed to the cutoff date under the present GI bill for Korean veterans, The cutoff date respecting eligibility under this bill, July 1, 1963, is keyed to the proposed new termination date of the Universal Military Training and Services Act, which the Executive has recommended and which the Congress is expected to approve during this session.

Under the bill four major types of readjustment assistance, patterned closely after the aids in the GI bills for veterans of World War II and the Korean conflict, would be made available to post-Korean veterans. These are:

(1) Education or vocational training assistance.

(2) Vocational rehabilitation training for veterans with service-connected disabilities.

(3) Guarantee and direct loan assistance for the purpose of (a) homes, including homes on farms, and (b) farmlands, livestock, machinery, etc., to be used in farming operations conducted by the veteran.

(4) Mustering-out payments.

The four types of assistance are respectively proposed in sections 2 through 5 of the bill, serially, and are described below in principal detail.

SECTION 2. EDUCATION AND VOCATIONAL TRAINING

Eligibility. To be eligible for educational or vocational training assistance the veteran must have served on active duty between January 31, 1955, and July 1, 1963, for 90 days or more, and must have been discharged under conditions other than dishonorable. In the case of a veteran discharged from service for a disability incurred on active duty, the 90-day service requirement would not apply.

Length of education or training.-The education or vocational training period would be calculated by multiplying 11⁄2 times each day of the veteran's active military service between January 31, 1955, and July 1, 1963, and with respect to a veteran on active duty on June 30, 1963, active military service after such date until his first discharge or release from active service succeeding such date. The maximum education or training period to which a veteran could become entitled is 36 months. In computing a veteran's period of active military service, for purposes of determining his period of education or training, there would be an exclusion of time spent in certain courses of education sponsored by the Armed Forces.

Kind of training.—Eligible veterans may use their educational entitlements to pursue the following kinds of training:

(1) School courses, both at college and below college level. These courses may be pursued full time, three-fourths time, one-half time, or less than one-half time.

(2) Cooperative courses, combining school and on-the-job training in alternating cycles. All cooperative courses must be pursued on full-time basis.

(3) Correspondence courses and flight training.

(4) On-the-job training. All job training must be pursued on full-time basis.

(5) Institutional on-farm training. All farm training courses must be on full-time basis.

Educational allowances.-A monthly allowance, paid directly to the veteran by the Veterans' Administration, is the means by which the veteran is assisted in the pursuit of a program of education. For a full-time program in an educational institution, the education or training allowance would be as follows: For a veteran without dependents, $110 a month; for a veteran with one dependent, $135 a month; and for a veteran with more than one dependent, $160 a month. Proportionate rates are fixed for allowances concerning less than full-time courses, as well as on-the-job and on-the-farm training. From the education and training allowance, the veteran must meet all of the costs incident to his education-tuition, subsistence, books, supplies, fees, etc.

Expiration dates.-Veterans must commence education or training under the bill within 3 years after their separation from service and complete their training within 8 years after separation; however, with respect to persons separated from service prior to the date of enactment of the bill, the 3-year delimiting period respecting commencement of training shall begin with the date of enactment of the bill. All education or training under the bill would end on June 30,