GI Bill of Right v7n7p3

7/27/2019 GI Bill of Right v7n7p3

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The G. I. Bill of Rights: An Analysis of the

Servicemen's Readjustment Act of 1944*A COMPREHENSIVE PROGRAM to aid re

turning veterans both men andwomenin a speedy readjustment tocivilian life, and to enable them to fitonce more into the civilian economyas promptly and effectively as possible,is provided i n the Servicemen's Read

ju st men t Act of 1944, signed by thePresident on June 22.

Popularly termed the "G. I . B i l l ofRights," the act (Public, No. 34G, 78thCong.) provides for enlarging andstrengthening hospital facilities (titleI ) ; educational and training opportunities ( t i t le I I ) ; loans for aid in

purchasing or cons truc ti ng homes andi n purchasing farms orbusiness property ( t i t le I I I ) ; assistance in obtainin g employment through the U. S.Employment Service (title IV) ; and readjustment allowances while theveteran is finding employment ( t i t le

V ) . These benefits, the majority ofwhich are l imited to specified periodsafter the veteran's release or dischargefrom the armed forces or the end ofthe war, are additional to the variousbenefits now provided by ex is ti ng leg islation for veterans and their de

pendents and survivors. The mainFederal provisions for servicemen andservicewomen of the present war, andtheir dependents and survivors, areoutlined in tables 1 and 2.

I n signing the bi l l , the President declared that "a well- rounded programof special veterans' benefits" has been

completed except for extension ofcredits under the Federal old-age andsurvivors insurance system to al l serv-

*Prepared Jointly i n the Pr ogram Divi sion, Bureau of Employment Security, andthe Division of Publications and Review,Office of the Executive Director. Theanalysis is based solely on the provisionsof the act and was prepared before interpretat ions or regulat ions had been issuedby the Veterans Admini stra tion.

icemen and women for the per iod oftheir military service. The new law,he said, "gives emphatic notice to themen and women in our armed forcesthat the American people do not intend to let them down. . . . This bi l l. . . and the former legislation pro

vide the special benefits which are dueto the members of our armed forcesfor they 'have been compelled to makegreater economic sacrifice and everyother kind of sacrifice than the restof us, and are entitled to definite act ion to help take care of their special

problems.' While further study andexperience may suggest some changesand improvements, the Congress is tobe congra tu la ted on the pro mpt act ion it has taken."

The bi l l as passedrepresents intensive study of hundreds of bills andvarious proposals before the Com

mittees responsible for the legislationthe Senate Committee onFinance and the House Committeeon World War Veterans' Legislation.Th e Senate hearings 1 on the generalsubject of post-war readjustment ofveterans and on specific proposals fortheir attainment ran from January14 to Ma rc h 10; the House hearings 2

from January 11 to Ma rc h 31. S.1767the bi l l now lawwas introduced on March 13 by SenatorClarkof Missouri, for himself and 78 otherSenators. I t was reported out withamendments on Marc h 18 by the

Committee on Finance (S. Rept. 755)and passed the Senate, with amend-

1 U . S. Congress, Senate Committee onFinance, Veterans' Omnibus Bill, Hearings on S. 1617, 78th Congress, SecondSession, Jan. 14-Mar. 10, 1944, 264 pp.

2 U. S. Congress, House Committee onWorld War Veterans' Legislation, WorldWar Veterans' Legislation, Hearings onH. R. 3917 and S. 1767, 78th Congress,Second Session, Jan . 11-Mar. 31, 1944.

ments, on March 24. The HouseCommittee, to which the Senate bi l lwas referred, held hearings and reported the bi l l , recast, to the Houseon May 5 (H . Rept. 1418); the Houseversion of the bi l l was passedon May18. Th e disagreements between thetwo houses were reconciled in a Committee of Conference, which submitted its report (H. Rept. 1624) on June12; the report was agreed to by theSenate the same day, and by theHouse the following day, and was approved by the President on June 22.

The Senate report described thelegislation as "a fundamental bi l l ofrights to facilitate the return of service men and women to civilian life.The committee does not contend thati t is or can be the last word on thesubject. We do assert that it is acomprehensive statement of themeasures presently necessary andthat it represents the very least thatshould be done at this time both in

just ice to the veterans and in enlightened self interest for the remainder of the coun try . . .

"Your committee recognizes thatthis bi l l authorizes a program whichwil l be costly to the Nation. Yet weview i t as true economy. None candeny that it is part of the bare-bonesnecessary cost of the war. We regardi t as the best money that can be spentfor the future welfare of the Nation."Pointing out that the legislation was"admittedly more extensive and generous in its benefits to returning veterans than any bill previously introduced as to this or any other war,"

the Committee added, "We believethat this is entirely justifiable in viewof the character of service in thiswar . . . I t is the view of the commiteethat the enactment of this bill willrender unnecessary any considerat ion of adjusted compensation, andthat the benefits provided by the bi l l ,i f enacted into law, wil l be of greateradvantage to veterans, at a lesser ex-


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Table 1.Summary outline of majorFederal provisions in effectfor members of the armed forces, World War II

Ty pe of benefit El ig ib i l i ty and other conditions Benefits

Relief from certain civi l obligations.

Active service in armed forcesEnforcement of certain civi l liabilities suspended, and relief from

certain other ob ligations guaranteed, for period of service.Under certain conditions Veterans Administration w i l l guarantee to

keep serviceman's commercial life insur ance (u p to $10,000) in force

during period of service and 2 years thereafter.

Na ti on al Service Life In s ur an ce Active service in armed forcesOptional with serviceman or woman.Beneficiaries of in i t ial policy l imi ted to spouse, child,

par ent , brot he r, or sist er.

Governme nt under writes extra hazard of war and provides inexpensive 5-year term life insurance, w i t h premiums payable by deduction from pay. Amounts from $1,000-10,000, i n mu lti pl es of $500.

Nu mb er and rate of benefit payments related to age of beneficiary attime of serviceman's death .

Convertible after 1 year an d before 5 years to ordinary life, 20-pay-ment life, or 30-payment life policy.

Premiu m payments waive d duri ng total-permanent disability.I n case of death, disability, or capture before Apr. 20, 1942, serviceman

w i t h less tha n $5,000 insur ance in force is presu med to hav e beeninsured for full $5,000. Avia t ion cadets, from Oct. 8, 1940, to June3, 1941, presu med to have $10,000 insu ran ce

Mustering-out pa y Honorable discharge or release from active service on orafter Dec. 6, 1941.

Rectroactive to persons honorably discharged or relievedfrom active service before effective date of legislation(Feb. 3, 1944), if application is made with in 2 years ofth at date, bu t not more tha n 1 pay ment un der act to anindividual.

Less than 60 days' service, $100.Service of 60 days or more:

I f not outside c ontin ental U . S., $200;I f outside co ntine ntal U. S., $300.

$100 paid at time offinal discharge and additional amounts in month lypa ym ents of $100.

I f veteran dies before receiving full amount to which he is entitled,balance to be paid to surviving spouse, or child or children, orpa re nt , bu t no ot her pers on.

Loans for purchase or construct ion of homes, or purchase offarms and farm equipment or

business property.

Service on o r after Se pt. 16, 1940; 90 day s' serv ice unlessdischarged earlier for service-connectcd disability.

Discharge other than dishonor able.Application must be made w i t h i n 2 years after discharge

or end of war, whichever is later, but in any event notlater than 5 years from end of war.

General limitations on suitability of property, terms ofmortgage payment, andpurchase price.

Loan must bo repaid in full w i t h i n 20 years.

Federal Government guarantees 50 percent of loan but not more than$2,000; If loan made by Gove rnme nt agency, Go ver nmen t w i l l

guarantee an additional loan not exceeding 20 percent of purchasepri ce, with in $2,000 l imi t .

Interest on principal loan, not more than 4 percent; on second loan,not more tha n 1 percent add itio nal.

Federal Government pays first year's interest on amou nt guaranteed.

Employment:Employment service

Reemployment rights

Priority in employment whereFederal funds are disbursed.

Active service in any war in which U . S. engaged

Actlve service on or after M a y 1, 1940

Honorable dischargeVeterans; wid ows or widower s of disabled veterans, and

wives or husbands of disabled veterans w ho themselvesare not qualified for civil-service app oin tmen t. Thewidow must not have remarried. Widowers must besupporting a child or children under age 18 ofdeceasedex-servicewoman.

Special placement services throu gh U . S. Em plo ymen t Service

Reemployment wi th previous employer, in previous orsimilarposit ion , if person is st i l l qualified and applies w i t h i n 40 days afterrelease

Preference in examinatio ns, appoin tmen t, retentio n, transfer, orreinsta tement in classified or unclassified civil-service positions.

Readjustment allowances Service on or after S ept. 16, 1940; 90 day s' serv ice unlessdischarged earlier for service-connected disability.

Discharge other than dishonorable.Residence i n U . S.Must be completely unemployed, orpartially unemployed

and earning wages in any week of loss than amount ofallowance plus $3; must register w i t h and continue toreport to a public employment office; must bo able towork and available forwork unless prevented by disabi l i ty occur ring after beginn ing of period of contin uousunemployment.

Self-employed and net earnings i n preceding mon th lessthan $100.

Program effective Sept. 4, 1944, and ends 5 years after endof war.

$20 a week for total unemployment; for partial unemployment, $20less wages payable for week plus $3.

Duration determined by length of service:First 90 days: 8 weeks of benefits for each mo nt h of service;Thereafter, 4 weeks for each mo nth of service or major fraction

thereof.Ma xi mum, 52 weeks in 2 years after discharge or end of war,

whichever is later.

Difference between $100 and n et earnings for such mo nt h; durat ionas above

Benefits withheld for specified disqual ification s, except for selfemployed.

Education Service on or after Sept. 16, 1940; 90 days' service, unlessdischarged earlier for service-connected disability.

Discharge other than dishonorable.Except for refresher or retr ainin g courses, e ducation

deemed interrupted, impeded, or otherwise interferedwi th ; auto matic ally so determ ined i f person not over age25 at induction.

Application not later than 2 years after discharge.Continuance based on satisfactory progress according to

standards of institution.

Program ends 7 years after war's end.

U p to $500 per ordinary school year fortu i t ion , books, etc., paid to anyaccreditedinstitution person chooses. Maintenance allowance of $50per mo nt h if no dependents , $75 if one or mor e depen dents; redu cedor may be omitted for part-time courses or on-the-job training.

Duration related to length of service:1 year of continuous full-time (or equivalent part-time) education or

refresher training to any eligible person;

Additional periods (b ut not refresher or retrai nin g courses) notexceeding length of service and not more than 3 additional years.

In computing length of service, certain periods of educational training during service excluded.

Vocational rehabilitation Service on o r after Sept. 16, 1940.Honorable discharge.Disability incurr ed in or aggravated by service forwhich

pension (except re tir ement pens ion) is pa ya bl eNeeds vocational rehabilitation to overcome handicap of

disability to fit him for employmen t.

Program ends 6 years after war's end.

Training through nearest veterans' facility for 1 year (an d up to4 years); wi th al l necessary expenses paid, including transportat ion; also medical care as required.

Dur ing training and for 2 months thereafter, disability pension increased to $80 per month ifwithout depend ents, and t o $90 if married; $5 additio nal for each childand $10 for each dependent parent.


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Table 1.Summary outline of major Federal provisions in effect for members of the armedforces, World War IIContinued

Type of benefit E l i g i b i l i t y and other conditions Benefits

Compensation for disabi l i ty Serv lce on or after Sep t. 16, 1940; 90 day s' se rvice unlessdischarg ed earlier for service-connected disabi l i ty .

Discharge other than dishon orab leService-connected disabilityNon-service connected disability.

Disabi l i ty must be permanent to tal , and not due to ownmisconduct .Veteran's annual income must not exceed $1,000 if single,or $2,500 if married or w i t h minor children.

Range ofm o n t h l y payments :

General disabi l i ty payments :For par t ia l permanent disabi l i ty , $11.50-103.50;

Fo r to tal permanent disabi l i ty , $115;Loss, or loss of use, of 1 hand , foot, or eye, an add iti on al $35.Special payments:

For specified anatom ical losses a nd helplessness requir ing regularai d or attendance, $165-265.

M a x i m u m to any veteran, $265.$50 per month; increased to $60 when veteran reaches age 65 or has

received pensi on for 10 con tinu ous years.

Medical care:

Hospital izat ion

D omi c i l i a r y care

Out-pat ient care

Honorable discharge or, in certain circumstances, discharge other than dishonorable.

Suffering disability, disease, or defect, whether service-connected or not, needing care for which he is unableto pa y .

Suffering permanent disabi l i ty , unable to earn l i v i n gbecause of disabi l i ty , an d w i th o u t means of support .

Suffering from service-connected disabi l i ty or condit ionan d requir ing t rea tment but not hospi ta l iza t ion.

Care in Govern ment hospita l or f ac i l i ty ; if such facilities not available, care in priva te hospi ta l re imbursable by Gove rnment .

I f veteran has wife, child, or dependent parent, his mo n th ly compe ns at io n for se rv ice -c on ne cte d disabi l i ty contin ues; if no suchdependent, allowance reduced to not more tha n $20 a mo nt h. I fdisabi l i ty is non-service-connected, allowance reduced to $8.

Care in Government homes or facili t ies. Disability allowance cont inued as under Hospital izat ion , above.

Medical care at a f ac i l i ty or regional office of Veterans Adminis trat ion , or at home i f unabl e to travel; necessary prosthetic appliancesan d t ra in ing in their use.

Sources: Compiled from legislative acts and V eterans Regulat ions; also Benefitsto Veterans and Their Dependents . . . (S. Doc. 146, 78th Cong., 2dsess.) 1944, 26pp .; Handbook for Servicemen and Servicewomcn of World War I I and Their Dependents . . ., ( I I . Doc. N o. 394, 78th Cong., 2d sess.), 1944, 60 pp . See alsoCongressional Record for June 15, 1944, pp . A3291-A3295; an d June 22, 1944, pp.A3521-A3531 (includes also citations to major pert inen t public l aws and su mmary

of activit ies and disbursements of the Veterans Adminis tra t ion as of A p r i l 1944See also Aaronson, Franklin M . , "Pensions and Compen sation to Veterans andTh e i r Dependents ," Social Security Bulletin, Vo l. 5, No . 11 (Novem ber 1942),p p. 10-24; and Bronso n, D. C , "Present Protections and Relief for Membersof th e A r med Forces," Social Security Bulletin, Vol. 5, No. 12 (December 1942),

p p . 22-30.

pense to the Government, than couldpossibly be accomplished by an Adjusted Compensat ion Ac t, at leastunder factors known or readily foreseeable at this time."

The Committee on WorldWar Veterans' Legislation, in rep orting to theHouse, also expressed the belief that,at thi s time, the proposed benefits

were preferable to adjusted compensation. Of the many plans advocated and studied by the Commitee,they said, the consensus appeared tobe th at , "considering le ng th andcharacter of service, together withcomparable sacrifices, the plan whichwould guarantee the most nearly uniform consideration would be an adjusted service pay. Th oro ugh andpa in st ak in g explorat ion of th is field,however, demonstrated that now isno t the time to consider such planfor there are too many unforeseeablefactors which might have a direct

bearing upon any such proposal .Furthermor e, it is not clear tha t thetremendous expense involved in suchpl an can be borne by the nationaleconomy should the war continue beyondpresent expectations."

General Provisions

Except under the employment service title and the general provisions in

title I , eligibility for all benefits inthe act is based on service in the active military or naval service of theUnited States at any time on or afterSeptember 16, 1940 (when the Selective Training and Service Act wentinto effect) and before the end ofthe present war. The serviceman orwoman must have served for at least

90 days, unless discharged earlier fordisability incurred in line of duty, andthe final discharge or release fromactive service must be under conditions other tha n dishonorable. Assistance under the employment service title is available to any veteranwith active service i n the armed forcesin any period in which the UnitedStates is, or has been, engaged in war.

Hospitalization, Claims, andProcedures

The first of the act's six titles recognizes the Veterans Administration no t

only as an impo rt an t post-war agencybu t an exceedingly important waragency, and gives it the necessary pr i orities for carrying out its essentialfunctions of hospitalization, rehabilitation, and other activities. The t i tle authorizes an appropria tion of$500 mill ion for constructing additional hospital facilities, to be available to all eligible veterans, and pro

vides for the mutual use or exchange

of hospital and domiciliary facilities

and personnel by agreement between

the Ad minis trat or of Veterans Affairs,

the Secretary of War, and the Secre

tary of the Navy.

To protect the rights of the service

men, representatives of the Veterans

Administration may be stationed in

Army and Navy installat ions to adviseand aid servicemen about to be dis

charged or released from active serv

ice and to adjudicate disability claims.No serviceman is to be released unt i l

his certificate of discharge or release

and his final payor a substantial

partare ready; he shal l no t be dis

charged for disability unt i l he has

executed a claim for compensation,

pension, or hospital izat ion or has

signed a statement indic ating tha t he

has been informed of his rights. Even

i f he waives a claim immediately, such

a waiver does not affect his right tofile a claim at any future time. Mor e

over, the veteran must not be re

quired to sign a statement concernin g the origin, incurrence, or aggrava

tion of any disease or injury. Persons

entitled to a prosthetic appliance are

assured the necessary fitting andtraining, including institutional trai n

ing, in the use of such appliance.


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Table 2.Summary outline of majorFederal provisions in effectfor dependents orsurvivors of members of the armedforces, WorldWar I I

1

Type of benefit E l i g i b i l i t y and other conditions Benefits

Dependents' allowancesDepen dents of enlisted personnel in grades 1-7:

Class A: wife, divorcedwife, child orchi ldren . Divorcedwife must not have remarried and al imony must be

pa ya bl e. C h i l d mus t be unm arr ied , und er age 18,or incapable of self-suppo rt. Hu sb an d and childrenof servicewoman eligible only if wom an was theirchiefsuppor t .

Class B - l : parents, brothers, sisters, who have receivedtheir chiefsupport from servicemen.

Class B: parent s, br others , sisters, who have received asubstant ia l por t ion of their support from servicemen;B dependents eligible only it there are no B - l dependents.

M o n t h l y allowances:Spouse, no chi ld , $50; wife and 1 chi ld , $80; each additional c h i l d , 20;C h i l d , no spouse, $42; each add itio nal chi ld , $20.Divorced wife, no c h i l d , up to $42; w i t h 1 chi ld , up to $72; each

addit ional chi ld , $20.

One pare nt, $50; 2 parent s or 1 parent and 1 bro ther or sister, $68;Brother or sister only, $12;Each addi tion al brother or sister, $11.

$37, pay abl e to 1 desi gnate d dependent only .

Financed by:$22 deducted from each mon th' s pay of enlisted person (after 1st

mo n th ) , if dependen ts are e ither Class A or B; an ad di tio na l $5dedu cted if depend ents are of both classes.

Balance ofmo n th ly amount and total first month' s a l lowance pa idby Government .

M a t e r n i t y a n d infant care Wiv es of enli sted perso nnel in 4 lowest grades Hospital , nursing, and medical care dur ing pregnancy, c h i l db i r t han d for 6 weeks thereafter, and for the c h i l d d u r in g th e first year.

Paym ents for service made direct ly to physicians, hospitals, nurses,or others.

Compensation for death Depen dents of servicemen w ho die in active service orf romservice-connected disabi l i ty .

Class of survivor :W i dow ; mu st have ma rr ied man before 10 years after

discharge from service and not remarried.Children und er 18 years, or u n t i l 21 if at s chool; or n o

age l i m i t if helples s before ago 18.

W i d o w a n d c h i l d or chi ldren of serviceman whose deathwas not service-connected bu t who at t im e of death hada disabi l i ty incu rre d in or aggravated b y service.

Wid o w ' s inco me m us t no t exceed $1,000 if alone or$2,500 if she ha s c h i l d or chi ldren .

M o n t h l y pa yme nt s :

W i d o w , no c h i l d , $50; w i t h 1 c h i l d , $65; each add itio nal c h i l d , $13.

1 c h i l d , no w i dow , $25; 2 chi ldren , $38; each add itio nal c h i l d , $10.

M a x i m u m payment to widow, c h i l d , or chi ldren , $100.

B o th paren ts, $25 each; 1 par ent only , $45.

W i dow , no c h i l d , $35; w i t h 1 c h i l d , $45; each addi tion al c h i l d , $5.1 c h i l d , no w i dow , $18; 2 chi ldren , $27; 3 chi ldren , $36; each addit ional

c h i l d , $4.M a x i m u m payme nt to survivors , $64.

Six m o n t h s ' g r a tu i ty pay W i d o w or c h i l d ; or parent, brother, or sister; or other relat ive , wh o must prove dependency.

M a n must have been k i l l e d in active service and d eath notdue to own misconduct .

Six t imes m o n t h l y base pay at t ime of death.

B ur i a l allowance Person paying bur ial expenses of serviceman w ho w ashonorably discharged or receivi ng veteran's compensat i o n or pension.

U p to $100.

1 Fo r other pro visions for dependents or survivors e. g., additi ona l amou nts of pensions or p r i o r i t y in employmentsee table 1.

Accreditedrepresentatives of specified veterans organizations are also tobe ad mi tte d to , and furn ished spaceand equipment in, mil i tary or navalestablishments from which servicemen are discharged or released.

Discharge or dismissal of any person from the mil i tary or naval forcesby reason of a general court martial,or as a conscientious objector who refused to comply w i t h lawful ordersof competent mil i tary authority, oras a deserter, or of an officer by theacceptance of his resignat ion for thegood of the service, shall bar such

person from all rights (except life i n surance) , based on the period of service from which he is so discharged,under any laws administered by theVeterans Administration. Chapter 3

of t i t le I provides, however, that if itcan be established to the satisfactionof the Veterans Administrator thatthe man was insane, he wil l not be

barred from the benefits to which hewould otherwise be entitled.

That chapter also sets up for boththe Army and the Navy boards of review of five members each, to reviewcases of irregular or questionable dischargeexcept by general court martial. The review can be initiated ontheir own motion, on the request ofthe enlisted man or officer, or, if heis deceased, of the surviving spouse,next of ki n, or legal representative.The boards have power to change anysuch discharge or dismissal and issuea new discharge in accord with th efacts presented. The findings are

subject only to review by the Secretary of War or of the Navy.

Under similar conditions and l i m i tations, boards of review, consis tingof five commissioned officers, two ofwhom are from th e Medical Corps ofth e Army, Navy, or Public HealthService, as the case may be, are to beset up to review cases of officers who,by decision of a retiring board, havebeen ret ir ed or released to in activeservice, without pay, for physical disability. The findings of the board ofreview, affirming or reversing the decision, shall be sent to the Secretaryof War , Secretary o f the Navy, orSecretary of the Treasury, as the casemay be, to be presented by him to thePresident for approval or disapproval,and further orders.


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Education

Tit le I I amends part V I I of Veterans' Regulation 1 (a)vocationaltraining and rehabilitation provisionsand adds a new part V I I I .The education provisions of partV I I I are quite different from the

vocational training and rehabilitat ion facilities furnished under partV I I to veterans whose employabilityis impaired through a service-connected disability. The new provisions are not l imited to disabled veterans but are based on the assumpt ion th at the war has prevented, i n terrupted, or otherwise interferedw i t h the education of thousands ofservicemen and servicewomen, andtha t c ontinuat ion of regular educational courses wil l pay incalculabledividends to the Nation as well as toindividuals.

Any veteran whose education isconsidered to have been so interruptedor interferedwith is entitled to a yearof educational training at any ap

provedpublic or private school or educational institution of his own choicewhich will admi t him , in any subjector subjects for which he is fitted. I fhe was not more than 25 years of agewhen he entered the service, his education is automatic ally deemed tohave been so int err upt ed or prevented.

Refresher or retraining courses arealso to be available to any eligibleveteran who wishes to enroll in one.

For these courses, proof that theper iod of service interfered with theveteran's education is not required.

The only other eligibility requirement is service of 90 days or more, exclusive of any period in which he tookcourses underArmy specialized trainin g or Navy college training programswhich were a continuation of hiscivilian course and were completed,and exclusive of periods as a cadet ormidshipman at one of the serviceacademies. The 90 days' require mentis waived i f the veteran was discharged earlier fordisability incurred

i n line of duty . The courses must beinitiated not later than 2 years afterthe date of discharge or the end ofthe war, whichever is later , and nonecan be continued beyond 7 years afterthe war's end.

Al l tu i t ion and other fees, includingcost of books, supplies, or equipment,up to $500 for an ordinary schoolyear, are paid by the Administratorof

Veterans Affairs to the institution i nwhich the veteran is enrolled. I n addition, during his course, he wil l re ceive a subsistence allowance of $50a month ($75 if he has one or moredependents).

Instead of a continuous full- t ime

course, the veteran may elect anequivalent period of continuous part-time study or apprentice training onthe job. I n tha t case, the subsistenceallowance may be reduced or omitted.

Any veteran eligible for educationalbenefits under th is act and also forvocational rehabi lita tion for service-connected disabili ties under the p rovisions of Veterans' Regulation 1 (a)may choose which training he prefers but may not receive benefitsunder both. His allowance, however,must not exceed the amount of additional pension payable under the vo

cational training provisions.On completion of the first year, the

student may continue his regularcoursesbut not refresher or re tr ai nin g coursesfor an ad di tiona l periodor periods not exceeding his length ofservice and in any event for not moreth an 3 addi tio nal years. Continuanceis based on satis factory progress according to the regularly prescribedstandards and practices of the ins t i tutions. I n computing the qualifyingper iod of service, the same exclusionsof periods of training courses are to

be applied as hold for qualification i n

the first instance.The educational ortraining institu

tions at which the veteran may enrollinclude al l types of public and p rivat eelementary and secondary schools,colleges, universities, and businessand technical schools; also businessand other establishments providingapprentice or other training on the

job. The only l imi ta t ion on choice ofinstitution is that it must be approvedby the appropriate State educationalagency or by the Admini str ato r. I nadministering the title, the Administrator, "insofar as he deems practica

ble, shall utilize existing facilities andservices of Federal and State departments and agencies on the basis ofmutual agreements with them." Andno supervision or control of the educational institution shall be exercisedby a Federal agency or departmentother than that already authorizedby existing law.

I n reporting out the original legis

lation (S. 1767), both Senate andHouse Committees stressed the factth at there was no inte nti on to set upthe Veterans Administration as aneducational agency or to establish anynew educational organization; thesole purpose is to furnish a simple, direct benefit to veterans, administeredas such and without any additionalmachinery or control whatsoever ofany educational systems or institutions.

Title I I also authorizes the Administrator to arrange for educationaland vocational guidance to personseligible for education and trainingunder the title. Whenever he deemsi t necessary, he shall make availableinformation about the need for general education and for trained personnel in the various crafts, trades,and professions. So far as possible,he should use the facilities of otherFederal agencies collecting such i n formation.

Loans for the Purchase or Construc-tion of Homes, Farms, and Busi-ness Property

Title III does not authorize directGovernment loans but provides rathe rthat the Government, through theAdministrator of Veterans Affairs,wil l guarantee up to 50 percent (butnot more than $2,000 in all) of anyapproved loan or loans obtained bythe veteran for purchasing or con

structing a home, purchasing a farmor farm equipment, or acqui ring business property. These loans may bemade by any person, or by privateor public (Federal or State) lendingagencies and institutions. Intereston the loan may not exceed 4 percent,and the loan must be repaid in fullwithin 20 years. The Federal Government pays the first year's intereston the amount guaranteed. The sameservice requirements hold as undert i t le I I , and app licati on must be madewith in 2 years after separation fromthe armed forces or the end of the

war, whichever is later, but in anyevent within 5 years after the end ofthe war.

The Adminis tra tor shall designatesuch agency or agencies, i f any, as hefinds equipped to determine whetherth e guarantee of the loan should beapproved under the title. No secur i ty for the guaranty is required, butthe Government must have the right


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of subrogation to the extent of theguaranty paid; in case of default, theGovernment must have the right to

bi d on foreclosure proceedings or torefinance; and liability under theguaranty must decrease or increasewith the decrease or increase of theamount of unpaid obligation.

I f th e principal loan is made, guaranteed, or insured, by a Federal lending agency and the veteran needs asecond loan to cover all or part of thebalance of the purchase price or cost,th e Administratorma y guarantee th esecond lo an, provided i t does not exceed 20 percent of the cost or purchase price or the $2,000 l imi ta t ion .Interest on the second loan may notexceed the rate on the principal loanby more th an 1 percent. The act alsostipulates that this second loan shallno t make a first mortgage loan on thesame property ineligible for insurance

under the National Housing Act .I n guaranteeing loans for purchase

or construction of homes, the Administratormust determine that the proceeds are to be used only for the pur

pose specified; that the terms of payment in any mortgage to be givenbeara proper rela tio n to the veteran'spresent and an ti cipa ted income an dexpenses; that the property is suitablefor dwelling purposes; and that thepurchase price or cost does not exceedthe reasonable normal value thereofas determined by proper appraisal.Loans may also be guaranteed for re

pa ir ing, altering, or improving property, or for paying delinquent taxes orother indebtedness o n property al ready owned by the veteran and usedas his home.

Loans for the purchase or repair offarms and farm equipment and business property (real or personal) wil lbe guaranteed i f th e Ad mini strat orfinds that the proceeds of the lo an wil lbe used by the veteran in th e bona fidepu rsui t of his occupation; that theproper ty will be useful i n and reasonably necessary for the efficient andsuccessful pursuit of the occupation;that the ability and experience of theveteran, and the nature of the proposed farming or business operations,are such as to make reasonably likelyhis success in the occupation; and thatthe price paid does not exceed thereasonable normal value of theproper ty .

Tit le III also provides that any per

son qualifying under this t i t le may beeligible under the Bankhead-JonesFarm Tena nt Act , as amended, as i fhe were a farm tenant.

Employment of Veterans

The purpose of t i t le IV is declaredto be to assure "an effective job coun

seling and employment placementservice for veterans" to provide them"the maximum of job opportunity inthe field of gainful employment."The service wil l not be l imi ted toWorld War I I veterans but, like theVeterans' Employment Service of theUSES, established in 1933 by the Wagner-PeyserAct, will be available to allveterans with active service in anywars in which the United States has

been engaged.

A Veterans' Placement ServiceBoard is created to cooperate withandassist the U. S. Emplo yment Serv

ice. The Board will consist of theAdministrator of Veterans Affairs, aschairman, the Selective Service Direc tor, and the Federal Security Administrator, or whoever is responsible forthe administration of the Employment Service, and wil l be responsiblefor determining all matters of policyrelating to the administ rati on of theVeterans' Emp loyment Service of theUSES. The chai rma n has direct responsibility for carr ying out these policies through veterans' employmentrepresentatives in the States orthrough employees of the Selective

Service System responsible for theenforcement of the reemploymentrights of veterans. Th e chai rma nmay delegate his responsibilities inthis field to an executive secretarywho "shall thereupon be the Chiefof the Veterans' Employment Serviceof the U. S. Employment Service."

A veterans' employment representative is to be assigned to each of theStates by the USES. The representative "shall be a veteran of the warsof the United States separated fromactive service under honorable conditions, who at the time of appointment shall have been a bona fide resident of the State for at least 2 years,and who shall be appointed, subjectto the approval of the Board, in accordance with the civil-service laws,and whose compensation sha ll be fixedin accordance with the ClassificationAct of 1923, as amended."

Each such veterans' employment

representative shal l be attache d tthe staff of the State public employmen t service. He is made responsibadministratively to the VeteranPlacement Service Board through iexecutive secretary for executing thBoard's placement policies througthe public employment service in th

State. I n cooperation w i t h the employment service staff of the State, his "functionally responsible for thsupervision of the registration of veerans . . . and for placement of veerans in. employment ," and generalin promoting the employment of veerans. When deemed necessary bthe Board, the administrative head othe employment service in the Staterequired to assign one or more employees of the staffs of local emploment officespreferably veteransdevote their time to veterans' placment functions. The Federal agen

administering the USES shall maitain that service as an operating et i ty and, during the period of its aministration, carry out the provisionof this title.

The Veterans' Placement ServiBoard through its executive secrtary is authoriz ed to estimate thfunds necessary for the proper anefficient administration of t i t le I VSuch sums are to be included as special item in the annual budget the USES and are to be available onfo r the purposes fo r which they weappropriated, except w i t h the a

proval of the Veterans' PlacemeService Board. The War ManpowCommission is directed to allocate amake available from its current apr opri at io n sufficient funds to carout the provisions of the t i t le for tcurrent fiscal year.

Readjustment Allowances DuriUnemployment

The unemployment allowance pgram established by t i t le V becomeffective on September 4, 1944, aends 5 years after the end of the w

Eligibi lity for allowances.To eligible for allowances a veteran mhave been in active service in WoWa r I I for at least 90 days unldischarged or released from actservice because of an in jury incurrin service in line of duty, and mhave been discharged under contions other th an dishonorable.


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addition, with respect to each weekfor which the veteran claims allowances, the Adm inist rator must findthat he resides in the United Statesat the time of the claim for benefits;is completely unemployed, havingperformed no services and received

no wages, or partially unemployed,having worked for less than a fu l lworkweek and earned wages of lessthan the allowance plus $3; has registered with and continues to report toa public employment office; and isable to work and available for workunless prevented by an illness or disability occurr ing after the commencement of a period of continuous unem

ployment.

Eligibility conditions and otherprovisions for veterans who are self-employed are outlined later.

Amount and duration of allowances.A uniform allowance of $20is provided for a week of total unem

ployment. For par tia l unemploymentthe allowance is $20 minus that partof wages, if any, which is in excess of$3 in a week. I f the allowance is nota multiple of $1, i t is to be round edto the next higher dollar amount.Allowances shall be paid at intervalsprescr ibed by the unemploymentcompensation law of the State i nwhich the claim is made.

Duration of allowances depends onthe length of the claimant's mil i tary

service. Eligible veterans are ent i t led to 4 weeks of allowances foreach month, or major fraction thereof, of service, up to a max im um of52 weeks. For the qualifying 90 daysof active service, however, the ratiois 8 weeks for each mon th . Thus ,claimants with th e minimum periodof service wil l be entitled to 24 weeksof allowances. A l l claimant s whoseservice exceeds 9 1/2months wil l beentitled to the 52-week max imum. 3

Duration of allowances is expressedin terms of the "weeks of unemployment" for which the individual may

draw an allowance and "weeks of allowances" to which an eligible indi vidual is entitled. There is nothi ng

3 There is no provision in the act whichspecifies the minimum duration ofallowances to veterans who are discharged orreleased from active service because of aninjury or disability incurred in line ofduty before they have completed 00 daysof service.

i n the act to indicate that a week forwhich a claimant receives an allowance for part ial unemployment is notto be counted as a "week of unemployment " for the purpose of determining the duration to which he isentitled. Unless the act is inter

preted otherwise, i t appears that oneclaimant might exhaust his maximumrights by drawing the minimum of$1 for each of 52 weeks of partial unemployment, or a total of $52. At th eother extreme, another claimantmight draw the full $20 weekly allowance for 52 weeks, or a total $1,040.

An eligible veteran may draw theweeks of allowance to which he is ent i t led during any week of unemployment which begins after the effectivedate of the t i t le and occurs not laterthan 2 years after his discharge orrelease or the end of the war, which

ever is later.Under this provision, the minimum

period during which allowances maybe dr aw n is 2 years, except for veterans discharged or released more than3 years after the war's end. Veteransdischarged or released before September 4, 1944, may draw allowances fo runemployment occurring during theperiod beginning on that date andending 2 years after the end of thewar. Veterans discharged or released on or after the effective datebu t before the war's end may drawallowances during the period begin

ning with date of discharge and extending until 2 years after the end ofthe war. Veterans discharged or re leased on or after t erm ina tion of thewar will have a period of exactly 2years unless they are discharged morethan 3 years after the war's end. I nthe latter case, the period duringwhich allowances may be drawn wil lbe governed by the over-all l imi tation of allowances to the 5 years afterthe term inat ion of hostilities.

No allowance is payable for anyper iod fo r which a veteran receivesan increased pension under par t V I I

of Veterans' Regulation 1 (a)vocational rehabilitationora subsistenceallowance under part VIIIthe educational provisions already discussedunder t i t le I I .

Any allowance or benefit receivedunder any Federal orState unemployment or disability compensation law,other than pension, compensation, orretired pay paid by the Veterans Ad

ministration, is to be deducted fromthe allowance payable under this title,and the resulting allowance, if not amultiple of$1, is to be rounded to thenext higher dollar amount.

Disqualifications from benefits.

An individual shall be disqualifiedfo rvoluntary separation from suitablework, without good cause; dischargeor suspension for misconduct in thecourse of his employment; failurewithout goodcause to apply for suitable work to which he is referred bya public employment office or to accept suitable work when offered tohim; failure without good cause toattend an available free trainingcourse as required by regulations; orunemployment due to a stoppage ofwork resulting from a labor dispute.

Th e disqualification period for all

causes except the last is the week ofthe disqualifying act and not morethan the 4 immediately followingweeks. In case ofsuccessivedisqualifications, however, the Administratormay extend the period, but not to exceed an a ddi tiona l 8 weeks for any onedisqualification.

The suitability ofwork and the existence of good cause for refusal orvoluntary leaving are to be determinedi n accordance with the conditions andstandards prescribed by the Statelaw in the State i n which the claim isfiled. I f there is no applicable State

law, the Administrator is to prescribethe conditions and standards. I n addition, the act specifies that no workshall be deemed suitable if the posit ion offered is vacant as a result of alabordispute; or the wages, hours, orother conditions of the work offeredare substantially less favorable to theclaimant than those prevailing forsimilarworki n the locality.

Special provisions for self-employedveterans.Any veteran who qualifiesunder the service provisions of thistitle, who resides in the UnitedStates,

and who is engaged in self-employment shall be eligible for allowancesi f , upon appli cation, he shows that hehas been fully engaged in self-employment and that his net earnings for theprevious calendar mo nt h were lessth an $100. None of the other eligibi li ty or disqualification provisionsare applicable to self-employedveterans.


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Th e monthly allowance is the difference, rounded to the next highermultiple of $1, between the veteran' snet earnings in a month and $100.Th e total payable to an individual,and the periods with in which suchallowances may be paid, are governed

by the general provisions of this title.Payments are made directly by theAdministrator of Veterans Affairs.

Administration.The t i t le is to beadministered by the Veterans Administrator, who is to utilize existing Federal and State departments or agencies, so far as possible, on the basisof mu tu al agreements. The agreements must provide for the filing ofclaims with th e A d m i n i s t r a t o r through established public employment offices and State unemploymentcompensat ion agencies. These agencies shall also be utilized throughagreements on the processing, adjustment, and determination of claims

and the payment of allowances. Arepresentative of the Administrator,who, like the veterans' employmentrepresentative, must be a veteranseparated from active service underhonorable conditions and a bona fideresident of the State for at least 2years, shall be located in each of the

pa rt ic ip at in g States to expedite agreements with State agencies and toassist in the discharge of the Administrator's duties.

Th e Administrator may delegate tohis own employees or those of anycooperating State department oragency such of his powers and dutiesunder this t i t le as he considers necessary and proper, except that of prescribing rules and regulations.

Th e Administrator is to issue necessary rules and regulations and torequire necessary records and reports.Cooperative rules and regulat ions, relating to the performance by Federalor State agencies of functions underagreements, may be made by the Administrator after consultation withrepresentatives of such agencies.

I n th e case of eligible veterans who

are "qualified employees" under theRailroad Unemployment InsuranceAct, claims may be made throughoffices operated by or designated asfree employment offices by the Rail road Retirement Boa rd. I n suchcases, the conditions and standardsas to suitability of work or the exist

ence of good cause, the intervals formaking claim for and payment ofbenefits, and th e ad mi ni st ra ti ve an dappellate procedures under that actshall govern, if not inconsistent w i t hthis title, subject to final appeal to theAdministrator.

Fair hearings.Claimants whoseclaims have been denied are entitled

to a fair hearing before an impartialtribunal of the State agency or otheragency designated by the Administrator. The representative of the Ad ministrator in each State is the finalappellate au tho ri ty, subject to review

by th e Administrator.

Financial arrangements.The al lowances payable under the t i t le areto be financed from Federal funds.The allowances paid by the cooperatin g State agencies are to be repaidmonthly upon certification by the Administrator, without the necessity of

audit and settlement by the GeneralAccounting Office.

The appropriations for the Veterans Administration are made available for the administrative expensesof the act and ap propr iation of additional necessary amounts is authorized. Th e Administrator is to cert ify for payment, in advance or otherwise, such sums as he estimates tobe necessary to compensate any Federal department or agency for administrative expenses under this t i t le.Such sums shall cover periods of nolonger th an 6 months. He is also tocertify to the Social Security Boardthe State departments or agencies cooperating in the administration of thet i t le and the amount of administrative expense incur red or to be i n curred under agreements with theseagencies.

Upon such certification, the SocialSecurity Board shall certify suchamount to the Secretary of the Treasury i n addition to the amounts payable under section 302 (a) of the Social Security Act. The additionalamount so certified is to be paid toeach State out of the appropriationfor the Veterans Administration. An ymoney paid to any cooperating agencywhich is not used for the purpose forwhich i t was paidshall, upon termi nat ion of the period covered by the payment or of the cooperative agreement,be retur ne d to the Treasury .

Penalties.A claimant who knowingly accepts an allowance to whichhe is not entitled is ineligible to receive any fur th er allowances. I n addition, fines or imprisonment or bothmay be imposed for fraud or willfulmisrepresentation in connection witha claim.

General Administratlon

Title V I deals with general administrative and penal provisions. Ap

prop ri at ions for the Veterans Administration are made available for thenecessary expenditures i n administering the act, except t i t le IV , and additional amounts are authorize d. TheVeterans Administrator has "authori ty to accept uncompensated services,and to enter into contracts or agreements with private orpublic agencies,or persons, fornecessary services, in cluding personal services, as he maydeem practi cable." As explained i nth e Senate repor t, "No one has any

idea of putting the Administrator i nthe business of education or agriculture or housing"; what is contem

plated is "one central agency for theprotec tion and benefit of the returning veterans."

Th e final section of t i t le V I stipulates tha t " I n the event there shallhereafter be authorized any allowance in the nature of adjusted com

pensation, any benefits received by, orpa id for, any veteran under this actshall be charged against and deductedfrom such adjusted compensation;and i n the event a veteran has ob tained a loan under the terms of thisact, the agency disbursin g such ad

justed compensation shall first pay theunpaid balance and accrued interestdue on such loan to the holder of theevidence of such indebtedness to theextent that the amount of adjustedcompensation which may be payablewil l permit."

Legislative History ofEmploy-ment and Readjustment

Allowances Titles

As mentioned earlier, the divergentSenate and House bills were submitted to a Committee of Conference.The report of this Committee wasadopted in both houses withoutchange. The conference version,therefore, represents the law as enacted. Comparison of some of the


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major points of difference in the threeversions of titles IV and V of the actthe Senate and House bills and theconference reportis of interest inindicating alternatives which Con

gress considered and rejected or accepted4 in the provisions for employment service and readjustment allowances for veteransthe two provisions most closely connected withthe social security program.

Employment of Veterans

The three versions of title IV allstate one main objective: the provision of an efficient employment service for veterans. They are also in accord in giving the Administ rator ofVeterans Affairs responsibility for developing and enforcing policies to assure such a service but differ in the

means of attaining the objective. Thedifferences center around the question of veterans' preference and theorganization of the Veterans' Employment Service.

Veterans' preference.The primaryobjective oftitle IV , as stated in eachof the three versions, is to assure "aneffective job counseling and employment placement service for veterans."The House bill added "so that preference in placement shall be affordedqualifiedveterans." The phrase usedin the Senate bill and the conferencereport is "so as to provide for them

the maximum job opportunity in thefield of gainful employment." TheHouse bill reinforced its general statement on the use of veterans' preference by making it a specific dutyof the veterans' employment representative in the employment servicein each State to "see that any lawspertaining to veterans' preferencesare enforced, and where possible, persuade employers to give the preference to any veteran who has qualifications equal to those of a non-veteran applicant for employment."The Senate bill did not refer to preference in its statement of objectivesand of the duties of veterans' employ-

4 See statement by Senator Wagner(Congressional Record, May 23, 1944, pp.4028-4932) analyzing various provisionsin titles IV andV of the Senate and House

bil ls. See also the Congressional Recordfor June 12, 1944 (pp. 5832-5839) andJune 13, 1044 (pp. 5930-5937) for statements on the conference report in theSenate and House, respectively.

ment representatives but provided forthe use of sanctions against the em

ployment service in any State whichfailed "to give preference to qualifiedregistered veterans on job assign

ments." The law as enacted makes noreference to veterans' preference asa means ofproviding job opportunities to veterans.5

Organization of the Veterans' Employment Service.The House billprovided for the transfer to the Veterans Administration of the "duties,powers and functions" and the "records, property, and personnel" of theVeterans' Employment Service of theU. S. Employment Service and of thatpart of the Selective Service Systemwhich is concerned with the enforcement of the right of the veteran to his

pre-service job. Thus, at the Federallevel, the USES was split under theadministration of two separate Federal agencies.

The act, on the other hand, whichfollows the Senate bill, maintains theEmployment Service intact as an operating entity. A Veterans' PlacementService Board is created (within theUSES in the Senate bill but not in theact) with the Administrator of Veterans Affairs as chairman and the D irector of the Selective Service Systemand the Administratorof the FederalSecurity Agency (or whoever may beresponsible for the administration of

the USES) as members. This Boardis responsible for determining policyrelating to the administration of theVeterans' Employment Service. Un der the Senate bill, the members of theBoard could be represented by alternates. The act, however, does not

provide specifically for delegation oftheirresponsibilities.

The act, following the Senate draft,gives the Chairman of the Veterans'Placement Service Board direct responsibility for carrying out thepolicies of the Board through veterans' employment representatives inthe several States. The Senate bill

provided for the exercise of this responsibility through an executivesecretary, who was to serve as theChief of the Veterans' EmploymentService of the USES. Under the act

5For provisions concerning reemployment rights of servicemen and womenand veterans' preference in employmentfor which Federal funds are disbursed,Gee table 1.

as passed, the chairman "may" delegate his authority to an executivesecretary "who shall be appointed byhim and who shall thereupon be theChief of the Veteran's Employment

Service."Under both bills, and in the final

legislation, a veterans' employmentrepresentative has administra tive responsibility in each State for theexecution of veterans' placement

policies through the State employment service. The House bill authorized the Administrator of Veterans Affairs to appoint and assignthese representatives, who would beadministratively responsible to him.The Senate bill and the act, on theother hand, provide that the USESshall assign the representatives, whoare responsible to the Veterans' Place

ment Service Board. Al l three versions make the representatives"functionally responsible for thesupervision of the registration ofveterans in local employment officesfor suitable types of employment"and, generally, for the promotion ofthe employment of veterans.

Al l three versions provide that theadministrative heads of the State employment services shall assign one ormore employees of the local employment service staffs to assist in veterans' placement. The House billmerely authorized such appointmentsand provided that the services of such

employees should be devotedprimarilyto discharging locally the veterans'employment duties prescribed by theState employment service office. Theact, however, adopting the Senate proposal, requires such assignments to bemade by the State employment service "where deemed necessary by theBoard." Moreover, the employees soassigned are to devote their servicesprimarily "to discharging the dutiesprescribed for the veterans' employment representative."

The Senate bill includedprovisionfor imposing a sanction against anyState employment service which failed

to give preference to qualified veteransin job assignments or to cooperate inthe execution of the policies of theVeterans' Placement Service Board.The sanction took the form of withholding funds under the Wagner-Peyser Act. Neither the House billnor the act provides for the use of anysanction against a noncooperative


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State service. They rely ultimately onthe veterans' employment representatives in the States to assure the enforcement of the policies of the Veterans Administration (House version)or the Veterans' Placement ServiceBoard (the act).

Both bills and the act require thatthe veterans' employment representatives shall be qualified veterans andshall be appointed under civil-servicelaws. The House b i l l added that theymust have resided at least 6 monthsi n the State to which they are appointed. The act increases this requirement to 2 years. The Senate bi l lhad no residence requ irement. Theact incorporates the House definitionof "veteran" to include veterans ofany war of the UnitedStates. I n theHouse bi l l , the veteran must have beendischarged or released "under honorable conditions"; in the act, "underconditions other than dishonorable."The House bi l l lookeddefinitely to thereturn of the employment offices andservices to the States and providedthat, pending that return, the USESshould maintain the service as anoperating entit y. The Senate bi l l andthe act make no reference to the return of the service to the States. A l lthree versions require Federal agencies to cooperate with those responsible for the admini strat ion of thet i t le and to furnish any necessary re cords, statistics, or information.

Unemployment Allowances

The three versions of t i t le V allestablish a program for the paymentof readjustment allowances to unemployed veterans similar to the Stateunemployment compensation programs. They al l assign Federal administrative authority to the Administratorof Veterans Affairs. Theydiffer, however, on important substantive points and in several administrative an d financial details.The substantive differences are concerned with coverage requirements,the benefit formula, and the relation

between the allowances payable and

benefits under other Federal acts .The variations in the administrativeprovisions center chiefly around thepower of the Ad mi ni st rat or to delegate authority and to review determinations of the benefit ri ght s ofclaimants, and in the provision for

certifying administrative expenses ofthe State agencies.

Coverage,The Senate bi l l requiredthat a veteran, to be covered by theact, must (1) have served in thearmed forces after September 16,1940(the date of the passage of the Selective Training and Service Act) and

prior to the ter minat ion of the present

war; (2) have been discharged or released after the effective date of theact or with in the 52-week period preceding that date; and (3) have beendischarged or released under conditions "other tha n dishonorable." I texcluded veterans discharged or released on their own initiative to acceptemployment unless they had servedoutside the continental UnitedStatesor in Alaska.

The House bi l l adopted the Senateprovis ion as to the time of service, butbroadened the coverage by eliminatingthe requirement that the dischargemust have occurred not earlier than52 weeks preceding the effective date.At the same time, it narrowed thecoverage by stip ulat ing a minimum of90 days' service except for veteransdischarged or released by reason ofinjury or disability incurred in service i n line of duty, and by requiringthat the discharge or release of theveteran must have been under honorable conditions. The act follows theHouse bi l l except for the conditionsof a discharge, for which i t uses th eSenate proposal, "under conditionsother than dishonorable."

Benefit formula:The Senate bi l lproposed weekly allowances varyingfrom $15 for a veteran without dependents to $25 for one with three ormore dependents. Allowances for dependents were eliminated in theHouse bi l l , and a flat allowance of $20for a week oftotal unemployment wassubstituted. The law follows theHouse b i l l .

The House bi l l set maximum duration for payment of allowances at 26weeks; the Senate bi l l provided 52

weeks, and that provision was incorporated in the act . I n re lat in g th eper iod fo r which allowances were tobe payable to le ng th of service of theveteran, the House and Senate proposals differed, and the act, as passed,represents a compromise between thetwo. The Senate proposed 8 weeks of

allowances for each month of serviceor fraction thereof. Under thi s pro vision, the minimum duration wouldhave been 8 weeks, and any veteranwith service of more than 6 monthswould have qualified for the 52-weekmaximum. The House bill was muchless generous. I t set 3 weeks of al lowances for each month or majorfraction of a month of service, or a

minimum duration of 9 weeks for 90days of service in comparison with 8weeks for a fraction of a month under the Senate bi l l . Moreover, theHouse formula made it necessary tohave more than 81/2months' serviceto qualify for the maximum of 26weeks.

The act provides 8 weeks of allowances for each of the 3 qualifyingmonths of service and 4 weeks of allowances for each monthor majorfractionof service therea fter. Thus,the minimum duration is 24 weeks for90 days of service and the maximumis 52 weeks for all veterans with morethan 91/ 2mont hs. The act makes noreference to minimum duration of allowances for veterans discharged orreleased as a result of a service-incurred injury or disability, who areexempted from the requirement of aminimum of 90 days' service.

Allowances were to be payable toany individual during a 24-month period, under both the Senate andHouse bills. Under the act, however,the periodw i l l vary, depending on thedate of the release or discharge ofthe individual veteran in relation tothe effective date of the act and thedate the warends. I n general, eligibleveterans are entitled to allowances forany week of unemployment beginning after the effective date of the actand occurring not later tha n 2 yearsafter their discharge orrelease or theend of the war , whichever is late r. Noallowances are payable after 5 yearsfrom the war's end.

Disqualifications.Both bills andthe act include disqualifications forvoluntary separations from suitable

work without good cause, for discharges or suspensions for misconduct in the course of the employment,for failure without goodcause to apply for or accept suitable work or toattend a free training course, and forunemployment due to a stoppage ofwork resulting from a labor dispute.


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The House bill, however, includedmuch more drastic penalties thaneither the Senate bill or the law.

For voluntary separations and discharges, the House would have post

poned payment of allowances for theweek of the disqualifying act and the3 following weeks. I n addit ion, thetotal number of weeks of allowancesto which the veteran would otherwisehave been entitled would have beenreduced by the same number of weeks.For refusals of suitable work, claimants were to be disqualifieduntil theyhad substantially full employment for2 weeks or, in subsequent disqualifications, for as much as 4 weeks. Thesame disqualification could be imposed in the discretion of the Administrator in cases of successive disqualifications for voluntary separations and discharges for misconduct.

The act, however, like the Senatebi ll , limits the disqualification for allthese causes to the week of the disqualifying act and not more than the4 weeks immediately following. I ncase of successive disqualifications,the Administ rato r may extend thedisqualification for an additional periodnot exceeding 8 weeks for any onedisqualification.

The Senate bill providedstandardsby which the suitability of work andthe existence of good cause would bedetermined. Thus, the suitability ofwork and the existence of goodcausewould have been determined accord

ing to a uniform national standard.The House bill and the act, on theother hand, use the conditions andstandards prescribed by the unem

ployment compensation act of theState in which the claim is filed.This provision substitutes uniformityin these determinations for veteransand civilian claimants within eachState for uniformity of treatment ofveterans throughout the country.

Al l State unemployment compensation laws protect claimants againstdisqualification for a refusal of offeredwork under three conditions. Workis not deemed to be suitable under

these provisions, if (1) the positionoffered is vacant as a result of a labordispute, (2) the hours, wages, or conditions of the work are substantiallyless favorable to the claimant than

those prevailing for similar work inthe locality, or (3) as a condition of

being employed the worker wouldbe required to join a company unionor to resign from or refrain from

joining any bona fide labor organization. The Senate bill included thefirst two of these standards butomittedthe third, while the House billreinstated the third condition inmodified form. The Senate draft wasfollowedin the act as passed, with thethird standard omitted.

Provisions for the self-employed.Veterans "self-employed for profit inan independent establishment, trade,business, profession, or other vocation" who meet the coverage requirements are entit led, under the Housebi ll and the act, to allowances underspecified conditions. The Senate bill

did not include allowances for thisgroup.

Relation to mustering-out pay andadjusted compensation. Under theSenate bill, the period during whichreadjustment allowances were payable to any veteran would not beginuntil 4 weeks after the final paymentof mustering-out pay. The actadopted the House provision, on theother hand, and made the allowancespayable to eligible veterans immediately after their discharge orrelease;thus they can be drawn by the veteranwhile he is receiving mustering-out

pay. The House also introduced aprovision, which was not included inthe Senate bill but was adopted in theconference agreement, under whichany allowances received under the actwill be deducted from any adjustedcompensation which Congress mayhereafter authorize.

Administrative provisions.All theversions of this title provide for administration by the Veterans Administrator and for the use of the Stateunemployment compensation agenciesin the local administration of thetitle. The Senate bill, however, gave

the Administrator authority to delegate any of his powers and duties,except the power to prescribe rulesand regulations, to any officer or employee of his own or of any other

department or agency of the FederalGovernment or the States. TheHouse bill and the act eliminate thespecific authority to delegate powersor duties to other Federal departments or agencies.

The Senate bill provided for thepayment of allowances on the certification of the Administrator. Theamounts certified were to be paid bythe Secretary of the Treasury to thedepartments, agencies, or individualsdesignated. I n contrast, allowancesunder the House bill were to be paid

by the cooperating State agencies andrepaid by the Secretary of the Treasury upon certification by the Administrator. This latter procedure isembodied in the act.

The provision in the law for payment of administrative expenses i n curred by cooperating State agenciesdiffers from that in both the Senateand the House bills. These had required the Administrator to certifythe cooperating agencies to the SocialSecurity Board. The Board, in turn,would certify to the Secretary of theTreasury such amounts, in additionto those certified under section 302(a) of the Social Security Act, as itdetermined to be necessary for administrative expenses under the title.The law as passed, however, requiresthe Administrator to certify both theagencies participating and the amountof administrative expenses incurredor to be incurred by the State. The

Boardin turn certifies these amountsto the Secretary of the Treasury forpayment to the State out of the appropriations to the Veterans Administration.

Al l three versions entitled anyclaimant whose claim is denied to afair hearing before an impartial t r i

bunal of the State agency. The representative of the Administrator isthe final appellate authority in eachState. On the question of the authority of the Administ rator in thisfield, however, the Senate and Housebil ls differed. The Senate bill provided that all such decisions of the

representative were subject to appeal to the Administrator. The Housebi ll made the decision subject to review by the Administrator, and thatis the provision in the law as enacted.

GI Bill of Right v7n7p3

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