CBO Releases Cost Estimates for Updates to Post-9/11 GI Bill

On October 6, the Congressional Budget Office (CBO) released its cost estimate for S.3447, the "Post-9/11 Veterans Educational Assistance Improvements Act of 2010." The price tag? The CBO estimates that direct spending for vets would increase by about $1.3 billion between 2011 and 2015, and ultimately by $2.3 billion between 2011 and 2020.

Approved in August by the Senate Veterans' Affairs Committee, the bill remained in committee until the CBO provided cost estimates. The proposed legislation includes major changes to existing education benefits, specifically the Post-9/11 GI Bill. Changes would include an expansion of benefits eligibility, the coverage of additional training programs as well as an increase in the monthly housing stipends.

Post-9/11 GI Bill Benefits Expansion

Central components of S.3447 include expanding Post-9/11 GI Bill benefits to cover more veterans and provide financial support for additional training programs.

Eligibility expansion. Servicemembers in the Active-Guard Reserve Program and the National Guard are currently not eligible to receive Post-9/11 GI Bill education benefits, but under S.3447, they would be.

According to the National Guard, 131,000 National Guardsmen would become immediately eligible for education benefits and an additional 8,000 National Guardsmen would become eligible each year. This change represents a 25 percent increase in the total number of reservists who are currently eligible for Post-9/11 GI Bill benefits.

Non-degree and certificate programs. S.3447 would also expand approved education programs to include non-college and certificate degree programs. The CBO estimates this change alone would increase direct spending of the GI Bill by approximately $475 million per year. In turn, 6,000 additional veterans would be able to use Post-9/11 GI Bill benefits under this new provision.

At this point, the cost of the bill is expected to be offset by either an increase in revenue or reductions and cuts in other entitlement programs. This, however, could be a difficult hurdle to clear with mid-term elections approaching in November.

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