SECTION 3. VOCATIONAL REHABILITATION FOR DISABLED VETERANS Eligibility. To be eligible for vocational rehabilitation training, a veteran must have need of such training, as determined by the Administrator of Veterans' Affairs, to overcome the handicap of a physical or mental disability, which is rated at 10 percent or more of total disability, and which is incurred in or aggravated by active military service subsequent to January 31, 1955. The general requirement for a discharge under conditions other than dishonorable would apply. Length of training.—The length of training is dependent upon the needs of the veteran. In general, the period is limited to 4 years; however, upon appropriate findings by the Administrator of Veterans' Affairs, additional time may be granted. Kind of training.-The veteran may enroll in an institution offering college training, in an institution below the college level, or in any other type of training which, in the view of the Administrator of Veterans' Affairs, is designed to lead to the veteran's vocational rehabilitation. Expiration dates.-While there is no overall termination date with respect to the vocational rehabilitation program, there are dates beyond which individual veterans may not receive training. Generally veterans may not receive training more than 9 years after discharge or release from active military service. However, with respect to veterans who become eligible for vocational rehabilitation by virtue of the enactment of this bill, training may be afforded such persons until 9 years after the enactment of the bill or 9 years after discharge or release from service, whichever is latter. In addition, in certain hardship situations, the generally applicable expiration dates would be extended for 4 years. The additional 4-year period would be accorded in cases where (1) severe disability prevents training; (2) subsequent changes in discharges provide eligibility for training; and (3) service-connected disabilities are not established in time to begin and complete training before the general expiration dates. Subsistence.-A vocational rehabilitation trainee would receive a minimum subsistence allowance of $65 a month if he has no dependents, or $90 a month if he has one or more dependents; a full-time institutional trainee would receive $75 a month if he has no dependents, $105 a month if he has one dependent, and $120 a month if he has more than one dependent. Operative along with these rates is the following "floor" on combined compensation under the veterans disability laws and the subsistence allowance under this bill: Where the serviceconnected disability is less than 30 percent, the rate, if the veteran has no dependents, is $105 a month; if he has one dependent, $115 a month, plus $10 for one child and $7 for each additional child, and $15 for a dependent parent. Where the disability is rated at 30 percent or more, the rates for the above classifications would be $115, $135, $20 for one child and $15 for each additional child, and $15 for a dependent parent. SECTION 4. LOANS General statement.-This section would make post-Korean veterans eligible for Veterans' Administration guarantee loans and direct loans similar in type to those available to Korean veterans under existing law. There are, however, several notable distinctions between the proposed loans for post-Korean veterans and those already available to Korean veterans: First, the loan rights of postKorean veterans would not extend to the business loans and insured loans which are available to Korean veterans under sections 1813 and 1815, respectively, of title 38 of the United States Code. Second, there would not be a special direct loan program for post-Korean veterans. Direct loans authorized by this bill for post-Korean veterans would be subject to the present direct loan laws under which no direct loan may be made after July 25, 1960. Third, unlike the loans available to Korean veterans, the proposed loans for post-Korean veterans would be subject to a guarantee fee in a sum not to exceed one-half of 1 percent of the amount of the loan. The guarantee fee is intended to be used in the accumulation of a reserve fund sufficient to cover any losses that might arise under the program, the goal being to make the post-Korean loan program altogether selfsustaining. The amount of the fee may be included in the loan to the veteran and paid from the proceeds thereof. The fee would be deposited in a mortgage guarantee fund which would be used by the Administrator of Veterans' Affairs to carry out the purposes indicated above. Eligibility. To be eligible under the loan provisions of the bill, a 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. The widow of a deceased veteran whose death resulted from active service would also be eligible. Purpose and conditions of loans.-The loans are for the purpose of assisting eligible veterans to purchase (a) homes, including homes on farms, and (b) farmlands, livestock, machinery, etc., to be used in farming operations conducted by veterans. Banks or other lending institutions would make the loans, with the Government guaranteeing 60 percent of a loan for residential real estate, or 50 percent of other real estate loans. The Government's guarantee with respect to a real estate home loan could not exceed $7,500, and with respect to other real estate loans could not exceed $4,000, or a prorated portion thereof. Loans of both types, or combinations thereof, would be guaranteed with interest at the rate generally applicable under the loan program for Korean veterans. (Presently, the interest rate may not exceed 44 percent per annum. If the proposed Housing Act of 1959 is enacted by the Congress, there would be a new interest rate not to exceed 54 percent per annum.) The loans would have maturities of not more than 30 years, except in the case of farm realty, the maturities could be for 40 years. Under certain conditions, and in certain rural areas, the Veterans' Administration is authorized to lend up to $13,500 directly to the veterans when private capital is not available for a guarantee loan. Expiration dates.-Loans may be guaranteed if made before July 1, 1973. If a loan report or application for loan guarantee is received by the Administrator of Veterans' Affairs before such date, an additional period not to exceed 1 year will be allowed for disbursement of the loan and issuance of evidence of guarantee. SECTION 5. MUSTERING-OUT PAYMENTS Eligibility. To be eligible for mustering-out payments a person must have served on active duty between January 31, 1955, and July 1, 1963, for 60 days or more, and must have been discharged under conditions other than dishonorable after the date of enactment of this bill. (In accordance with established precedents, only persons having the rank of captain or less in the Army or Air Force, or lieutenant in the Navy, would be eligible for these payments.) Amounts and conditions.-The amount of the mustering-out pay would be $100 for each eligible person, without regard to whether his active duty was performed domestically or overseas. Persons who qualify for mustering-out payments both by reason of active service during the period prescribed by this bill and service during the Korean conflict, may elect to receive mustering-out payment under either period of service, but not both. EFFECTIVE DATE OF BILL The provisions of the bill shall become effective immediately upon its enactment, except that no mustering-out payments shall be made to persons on account of discharges which occur prior to its enactment, and no education or training allowance shall be paid with respect to any period prior to 60 days after the date of such enactment. (Explanations of S. 270, S. 930, S. 1050, S. 750, and S. 906 follow :) EXPLANATION OF S. 270, INTRODUCED BY MR. KUCHEL (FOR HIMSELF AND Mr. ALLOTT) The bill (S. 270) would amend chapter 33 of tile 38 of the United States Code so as to afford the educational and vocational training benefits of such chapter (now available to Korean veterans) to persons serving in the Armed Forces after January 31, 1955, and before the date of termination of compulsory military service under the laws of the United States. The date of termination of compulsory military service is fixed by definition as 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 the bill if such law is enacted within 6 months after the Universal Military Training and Service Act ceases to be effective. Except for the foregoing, the requirements of the educational program for Korean veterans would be applicable to persons covered by the bill. Thus, persons eligible under the bill would be subject to the general requirement that a veteran must commence his program of education or training within 3 years after his discharge or release from service and complete his education or training by not later than 8 years after such discharge or release. Also applicable would be the requirements of the Korean program that, to be eligible for educational or vocational training assistance, the veteran must have served on active duty for 90 days or more, and must have been discharged under conditions other than dishonorable. The benefits made available to persons eligible under the bill would consist of a monthly monetary assistance allowance paid by the Government to persons enrolled in programs of education or vocational training. The length of the educational or vocational training period (up to a maximum of 36 months) would be calculated by multiplying 11⁄2 times each day of the veteran's active military service between January 31, 1955, and the termination of compulsory military service. Permissible types of education and training would include college and school training, on-thejob and on-the-farm training, as well as correspondence courses. An example of the assistance provided is the case of a veteran with no dependents pursuing a school course on a full-time basis: such veteran would receive an education and training allowance of $110 a month for a period of time determined by the formula noted above (11⁄2 times each day of service); if such veteran has the maximum educational entitlement of 36 months, he could receive a total maximum assistance of $3,960. EXPLANATION OF S. 930, INTRODUCED BY MR. HENNINGS (FOR HIMSELF and Mr. GREEN) The bill (S. 930) would amend chapter 33 of title 38 of the United States Code so as to afford the educational and vocational training benefits of such chapter (now available to Korean veterans) to persons serving in the Armed Forces after January 31, 1955, and before the date of termination of compulsory military service under the laws of the United States. The date of termination of compulsory military service is fixed by definition as 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 the bill, if such law is enacted within 6 months after the Universal Military Training and Service Act ceases to be effective. The bill provides a savings clause for persons separated from the service prior to its enactment; thus, persons separated from service prior to the bill's enactment would have 3 years from date of enactment within which to initiate a program of education or training under the bill. The bill also contains a retroactive feature under which persons who pursue education or training prior to the bill's enactment would be entitled to receive payment of educational assistance allotments for such education or training. Except for the foregoing, the requirements of the educational program for Korean veterans would be applicable to persons covered by the bill. Thus, persons eligible under the bill would be subject to the general requirement that a veteran must commence his program of education or training within 3 years after his discharge or release from service and complete his education or training by not later than 8 years after such discharge or release. Also applicable would be the requirements of the Korean program that, to be eligible for educational or vocational training assistance, the veteran must have served on active duty for 90 days or more, and must have been discharged under conditions other than dishonorable. The benefits made available to persons eligible under the bill would consist of a monthly monetary assistance allowance paid by the Government to persons enrolled in programs of education or vocational training. The length of the educational or vocational training period (up to a maximum of 36 months) would be calculated by multiplying 11⁄2 times each day of the veteran's active military service between January 31, 1955, and the termination of compulsory military service. Permissible types of education and training would include college and school training, on-the-job and on-the-farm training, as well as correspondence courses. An example of the assistance provided is the case of a veteran with no dependents pursuing a school course on a full-time basis: such veteran would receive an education and training allowance of $110 a month for a period of time determined by the formula noted above (11⁄2 times each day of service); if such veteran has the maximum educational entitlement of 36 months, he could receive a total maximum assistance of $3,960. EXPLANATION OF S. 1050, INTRODUCED BY SENATOR RALPH YARBOROUGH The bill (S. 1050) would amend chapter 35 of title 38 of the United States Code so as to afford educational assistance to the children of persons who die as the result of a service-connected disability arising out of service in the Armed Forces during the period beginning February 1, 1955, and ending June 30, 1963. The ending date of the period coincides with the expiration of authority to induct individuals into the Armed Forces under the Unversal Military Training and Service Act. Educational assistance is now provided by chapter 35 of title 38, originally enacted as the War Orphans Educational Assistance Act of 1956, for the benefit of children of veterans who die from a service-connected disability sustained during World War I, World War II, or the Korean conflict. Under S. 1050, the same assistance would be made available to children of post-Korean servicemen, i.e., the children defined above. War orphans educational assistance is provided only if the eligible child is enrolled in a program of education beyond the secondary school level. In cases where a physical or mental disability handicaps the child in the pursuit of an ordinary program of education, such child may enroll in a program of special restorative training. After enrollment in an authorized program of education, the child is entitled to a monthly assistance allowance, to be paid by the Government to the child's parent or guardian for the benefit and use of the child in the pursuit of his program of education. A child enrolled in school on a full-time basis could receive the maximum monthly assistance allowance of $110 for a period not in excess of 36 months. Duplication of benefits is not permitted. Thus, a person's period of entitlement to war orphans assistance is reduced by a period equivalent to any period of education or training received under the Korean veteran's educational program. Generally, war orphans assistance is limited to persons between 18 and 23 years of age. This limitation would also apply to persons eligible under S. 1050, except that eligible persons above the age of 17 and below the age of 23 on the date of its enactment would have 5 years thereafter to pursue and complete a program of education. Accordingly, persons entering the age group 18 to 23 between the end of the Korean conflict and the enactment of S. 1050 would be assured the opportunity of actually utilizing their educational entitlement. Without the exception, many of the persons within this group would have educational assistance in theory but not in fact. In administrative detail, the war orphans educational assistance program is patterned after the education and training program provided for veterans of the Korean conflict. Hence, there are adequate safeguards against abuse of the program, either by individuals or institutions. EXPLANATION OF S. 750, INTRODUCED BY SENATOR ALAN BIBLE The bill (S. 750) would amend chapter 33 of title 38 of the United States Code, popularly known as the Korean GI bill, so as to afford elegible veterans greater latitude in changing from one subject matter to another subject matter during the pursuance of a program of education. Under existing law an eligible veteran may, within 3 years after date of discharge or separation from service, makes an exchange of program which is not a normal progression in his education. For example, a veteran can change his program objective from a degree in English to a degree in chemistry, provided that change is within the 3-year period. After the 3-year period (i.e., after 3 years from date of his discharge) he cannot change his program unless the new program is related to the previous course of study. The bill, S. 750, would liberalize the "change of program provisions" so as to allow a student to change his program to one which is more suitable to his aptitude, interest, or ability, even though the new program is not related to his previous program. Thus, upon proper showing of "suitability" of the change, a veteran student now training in a liberal arts field could make a change to engineering, chemistry, or other technical fields. EXPLANATION OF S. 906, INTRODUCED BY SENATOR RALPH YARBOROUGH The bill (S. 906) amends chapter 33 of title 38 of the United States Code, popularly known as the Korean GI bill, so as to eliminate a highly undesirable situation which sometimes occurs under the provisions of the act concerning a "change of program." An example of the situation arises when a veteran selects as his initial program objective the attainment of a bachelor's degree. If upon completion of the work for a bachelor's degree he desires to obtain a master's degree, he may do so, but the change to the higher objective is considered a change of program. If the veteran then desires to seek a doctor's degree, he cannot do so and receive assistance under the Korean veterans' educational program. The reason for this result is that he has a right to only "one change of program," and that right was exhausted in obtaining his master's degree. Yet, if the veteran had initially specified the doctor's degree as his program objective, the process of obtaining all necessary lesser degrees would not have involved even one change of program. The bill, S. 906, would correct this situation by providing that, in determining what constitutes a change of program, "a change from the pursuit of one objective or level of education or training to the pursuit of a higher objective or level of education or training in the same field of study or training" will be considered a continuation of the veteran's original program rather than a change to a new program. MARCH 24, 1959. (Departmental reports on S. 1138, S. 270, S. 930, S. 1050, and S. 906 follow :) Hon. LISTER HILL, Chairman, Committee on Labor and Public Welfare, DEAR SENATOR HILL: The following comments are furnished in response to your request for a report by the Veterans' Administration on S. 1138, 86th Congress, which, if enacted, would be cited as the "Veterans' Readjustment Assistance Act of 1959." S. 1138 has two related but distinct purposes. It would provide several readjustment benefits for persons serving in the Armed Forces between the end of the Korean conflict period and July 1, 1963, namely, education and training, home and farm loan guaranties and direct loans, and mustering-out pay. These benefits would be patterned after those provided for Korean veterans by the Veterans' Readjustment Assistance Act of 1952. The proposed terminal date of July 1, 1963, would coincide with the date specified in pending legislation to extend the authority to induct individuals into the Armed Forces for training and service under the Universal Military Training and Service Act. Secondly, S. 1138 would extend vocational rehabilitation benefits as now provided for disabled veterans of World War II and the Korean conflict to veterans in need thereof to overcome the employment handicap of a disability arising from service after the end of the Korean conflict period. Vocational rehabilitation would become a permanent program and not limited to those serving during the post-Korean induction period. READJUSTMENT BENEFITS Section 2 of the bill would establish, as a chapter 40 of title 38, United States Code, a separate education and training program for the post-Korean veteran group. The new program, however, would in all essentials be identical with that provided for Korean veterans (ch. 33 of title 38). With minor exceptions, the variations are either purely matters of form or necessary technical changes to adapt the provisions to the new service group and to insure against overlaps between the new program and existing programs for the World War II and Korean groups. Very briefly, under the bill a post-Korean veteran could receive monetary assistance in pursuing a program of education or training for a period equal to one and a half times his active duty during the specified eligibility period (including in the case of a veteran on active duty on the last day of the period his continuous service thereafter), but in no event may he accrue more than 36 months, training entitlement. Persons who had acquired eligibility for education |