TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL TO DEPENDENTS.

SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL TO DEPENDENTS. (a) Clarification of Rate of Educational Assistance for Dependents to Whom Entitlement is Transferred.—Section 3020(h) of title 38, United States Code, is amended— (1) in paragraph (2)— (A) by striking “paragraphs (4) and (5)” and inserting “paragraphs (5) and (6)”; and (B) by striking “and at the same rate”; (2) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and (3) by inserting after paragraph (2) the following new paragraph (3): “(3)(A) Subject to subparagraph (B), the monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable under sections 3015 and 3022 of this title to the individual making the transfer. “(B) The monthly rate of assistance payable to a dependent under subparagraph (A) shall be subject to the provisions of section 3032 of this title, except that the provisions of subsection (a)(1) of that section shall not apply even if the individual making the transfer to the dependent under this section is on active duty during all or any part of enrollment period of the dependent in which such entitlement is used.”. (b) Source of Funds from Increased Usage.—Section 3035(b) of such title is amended— (1) in paragraph (1), by striking “paragraphs (2) and (3) of this subsection” and inserting “paragraphs (2), (3), and (4)”; and (2) by adding at the end the following new paragraph: “(4) Payments attributable to the increased usage of benefits as a result of transfers of entitlement to basic educational assistance under section 3020 of this title shall be made from the Department 116 STAT. 2578of Defense Education Benefits Fund established under section 2006 of title 10 or from appropriations made to the Department of Transportation, as appropriate.”. (c) Effective Date.—(1) The amendments made by subsection (a) shall take effect as if included in the enactment of section 3020 of title 38, United States Code, by section 654(a)(1) of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1153). (2) The amendments made by subsection (b) shall take effect as if made by section 654 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1153).