Despite some political wrangling, a bill that would drastically increase student financial aid benefits for veterans has picked up steam in recent weeks. The "Post-9/11 Veterans Educational Assistance Act of 2008" (H.R. 5740) was introduced in the House last week by Rep. Harry Mitchell (D-AZ) and has so far garnered wide support. Unlike the House bill, a similar bill in the Senate is sparking sharp debate and a political showdown between Republican and Democratic leaders seems imminent.

The Senate bill (S. 22), introduced by Marine Corp. veteran Sen. Jim Webb (D-VA) last year, would increase educational benefits available to members of the military who have served on active duty since September 11, 2001, including reservists and members of the National Guard. Benefit amounts would be based on the amount of time a veteran had served in the military since 9/11. The benefits would be payable for 36 months, the equivalent of four years of college, and would be available for up to 15 years after a veteran leaves active duty.

At its maximum award amounts, the bill would:

• Allow veterans pursuing an approved program of education to receive payments covering established charges of their program up to the cost of the most expensive in-state public school

• Pay qualifying veterans a monthly housing cost stipend that would be adjusted by zip code to compensate for different costs of living

• Pay $1,000 annually to qualified veterans to cover books, supplies, equipment, and other educational costs

The bill would also create a government program to provide matching grants to veterans attending private schools where the school puts up 50 percent of the grant funds when tuition is more expensive than the amount allowed by the bill.

Opposition on Two Fronts

Opposition to the bill comes from Republicans and "blue-dog" democrats who are balking at the cost of implementing the bill. The Congressional Budget Office (CBO) estimates the bill will cost nearly $52 billion over ten years, or roughly $5 billion per year. For some context, that comes to roughly 30 percent of the amount currently appropriated for the Pell Grant Program. (Congress appropriated $16.4 billion for Pell Grants in FY 2008).

But supporters of the bill point out that so few Americans have stepped forward to serve the country through military service, these veterans have earned the right to greater opportunity through education. Webb points out in a Summary Sheet published on his Web site that the annual estimated costs of the program would cost less than one week of war in Iraq.

The Bush Administration also opposes the bill because they feel it would decrease military retention for current soldiers. The bill defines eight different classifications of veterans who would qualify for benefits with award amounts adjusted based on the amount of time a veteran has served in the military since Sept. 11. Servicemen and women who have served as little as three months would qualify for some benefits under Webb's plan.

Three months is too short, according to Defense Secretary Robert Gates who sent a letter of opposition to the bill to Webb last month. Gates worries that Webb's bill will hurt military retention by encouraging fresh soldiers to leave military service after their first enlistment expires. Proponents argue that increased benefits will likely boost recruitment and attract even more volunteers into military service. The CBO backs up the claim and estimates that S. 22 would actually result in a 16 percent increase in recruits.

What's Next?

Both the House and Senate bills have been referred to committee for markup. The House bill has already received more cosponsors than the needed majority to pass the bill. The Senate bill has also received a large amount of support, but not enough to ensure cloture, which would prevent the Republicans from filibustering the bill. Today the Senate Appropriations Committee also is scheduled to consider emergency supplemental legislation to support the wars in Iraq and Afghanistan that will include GI education benefits outlined in S. 22. It is unclear whether adding the GI benefits will hinder or help its chances of passing.

Webb is trying to reach an agreement with the presumptive 2008 Republican nominee for President Sen. John McCain (R-AZ) in hopes of swaying more Republicans to his side. The Politico reports that Webb is only two votes shy of getting enough support to pass the bill out of the Senate. Yesterday afternoon Republicans surprised Democrats by offering an alternative veterans' benefit plan coauthored by McCain. The Republican surprise stalled activity in the Senate before Democrats - along with six Republicans - were able to table, and thus kill the Republican amendment, according to Congressional Quarterly.

Bush Administration officials have voiced opposition to the bill, but have not yet released a statement of administrative policy.

NASFAA will continue to monitor and examine the bills as they move through the legislative process. We will provide additional information as it becomes available.

By Justin Draeger
NASFAA Associate Director for Communications

Posted 05/15/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.