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"(2) Vocational rehabilitation may not be afforded a veteran on account of post-World War II service after nine years following his discharge or release; except vocational rehabilitation may be afforded to any person until

“(A) August 20, 1963, if such person was discharged or released before August 20, 1954; or

“(B) nine years after the date of the enactment of the Veterans' Readjustment Assistance Act of 1959 if such person is eligible for vocational rehabilitation by reason of a disability arising from service prior to such enactment either between July 25, 1947, and June 27, 1950, or

subsequent to January 31, 1955." (c) Paragraph (3) of section 1502 of such title is amended to read as follows:

“(3) Vocational rehabilitation may not be afforded outside of a State to a veteran on account of service after July 25, 1947, if the veteran, at the

time of such service, was not a citizen of the United States." (d) Section 1502(d) of such title is repealed.

SEC. 4. (a) Chapter 37 of title 38 of the United States Code is amended by inserting immediately after section 1817 the following new section : “8 1818. Veterans who serve between January 31, 1955, and July 1, 1963

“(a) Each veteran who served on active duty at any time between January 31, 1955, and July 1, 1963, shall be eligible for the benefits of this chapter (except sections 1813 and 1815, and business loans under section 1814, of this title), subject to the provisions of this section, if his total service was for a period of more than one hundred and eighty days, or if he was discharged or released from a period of active duty, any part of which occurred between January 31, 1955, and July 1, 1963, for a service-connected disability.

"(b) No veteran shall be eligible for benefits under this section so long as he is eligible under this chapter for any unused benefits derived from service during World War II or the Korean conflict. Any veteran who is eligible for benefits under this section and who has obtained benefits under this chapter by reason of service during World War II or the Korean conflict shall have his benefits under this section reduced by the amount of any benefits previously obtained under this chapter. Benefits shall not be afforded under this section to any individual on account of service as a commissioned officer of the Coast and Geodetic Survey, or the Regular or Reserve Corps of the Public Health Service.

"(c) Loans may be guaranteed under this section if made before July 1, 1973. If a loan report or application for loan guaranty is received by the Administrator before July 1, 1973, an additional period not to exceed one year will be allowed for disbursement of the loan and the issuance of evidence of guaranty. Direct loans authorized by this section shall be subject to the provisions of section 1811(h) of this title.

“(d) A fee shall be collected from each veteran obtaining a loan guaranteed or made under this section, and no loan shall be guaranteed or made under this section until the fee payable with respect to such loan has been collected and remitted to the Administrator. The amount of the fee shall be established from time to time by the Administrator, but shall in no event exceed one-half of 1 per centum of the total loan amount. The amount of the fee may be included in the loan to the veteran and paid from the proceeds thereof.

"(e) There is hereby created a Mortgage Guaranty Fund (hereinafter referred to as the 'Fund') which shall be available to the Administrator to carry out the provisions of this chapter with respect to all transactions arising from the guaranty of loans under this section. Fees collected by the Administrator under subsection (d) of this section shall be deposited in the Treasury to the credit of the Fund together with all other moneys received, including those from the management or sale of properties or the liquidation of any security acquired, as a consequence of the guaranty of loans under this section.

“(f) The guaranty on any loan made to a veteran which is guaranteed under the provisions of this section shall be payable to the holder under the provisions of this chapter without regard to the amount on deposit to the credit of the Ad. ministrator in the Fund. If the balance in the Fund is insufficient at any time to carry out the provisions of this chapter with respect to transactions arising from the guaranty of loans under this section, the Administrator shall use funds appropriated to the Veterans' Administration under the heading of 'Readjust. ment Benefits' for such purpose, and sums sufficient therefor are hereby authorized to be appropriated. Reimbursement to the appropriation shall be made of the amounts thereof which may have been used by the Administrator for the purposes of the Fund when, and if, in the opinion of the Administrator the balance in the Fund is sufficiently in excess of the probable demands thereon to permit such reimbursement.

"(g) From time to time, but not earlier than five years after the termination of authority to guarantee and make loans under this section, the Administrator shall cause to be deposited into the Treasury of the United States, to the credit of miscellaneous receipts, such of the moneys in such Fund as in his judgment are not needed for the purpose for which they were provided. When all claims, expenses, or losses which may arise under the provisions of this chapter with respect to transactions arising from the guaranty of loans under this section have been paid, any balance remaining in the Fund shall be deposited by the Administrator with the Treasurer of the United States to the credit of miscellaneous receipts.

"(h) Moneys in the Fund may be invested by the Administrator from time to time in obligations of the United States or obligations guaranteed as to principal and interest by the United States."

(b) The table of sections at the beginning of chapter 37 of such title is amended by inserting immediately below "1817. Release from liability under guaranty." the following: "1818. Veterans who serve between January 31, 1955, and July 1, 1963."

(c) Section 1822(a) of such title is amended by striking out "or 1813”, and inserting in lieu thereof "1813, or 1818”.

Passed the Senate July 21, 1959.





Washington, D.C., February 18, 1960. Hon. OLIN E. TEAGUE, Chairman, Veterans' Affairs Committee, House Office Building, Washington, D.C.

DEAR CONGRESSMAN TEAGUE: Attached is a copy of a wire I received from the Governor of Nebraska, Hon. Ralph G. Brooks, urging favorable consideration by your committee of legislation to extend educational benefits to peacetime veterans. I am sure you will want to consider this with the evidence you are collecting and to include it in the record of hearings.

I would also like to add my own personal feelings on this subject. I have often stated that I feel new veterans' programs and other new legislation involving large outlays of Federal funds should be based on some evidence of need. However, I strongly feel that as long as young citizens are involuntarily inducted into our armed services, interrupting their normal period of education, one of the best financial investments we can make in our country's future is to assist and encourage these veterans to continue their education. I heartily support legislation of this type. Sincerely,


LINCOLN, NEBR., February 7, 1960. DONALD F. MCGINLEY, House Office Building, Washington, D.C.:

With reference to committee hearings held on February 16 I again urge favorable action in the matter of expending educational benefits to our youth who entered the armed services subsequent to January 31, 1955. Any assistance given these young men and women to improve their status through the medium of education and training represents an investment that will bear dividends in the continued progress and security of the Nation.

RALPII G. BROOKS, Governor, State of Nebraska.



Washington, D.C., January 27, 1960. Hon. OLIN TEAGUE, Chairman, Veterans' Affairs Committee, House of Representatives.

DEAR MR. CHAIRMAN : I received your recent letter advising that your committee has scheduled hearings to begin February 16, 1960, on the so-called peacetime GI bill legislation.

Enclosed are copies of four letters received from Mr. Wallace J. Wanek, Fergus Falls, Minn.; Mr. Allen C. Bjergo, Battle Lake, Minn.; Mr. Royce Van Sickle, Wahpeton, N. Dak. ; and John A. Bakke, Battle Lake, Minn., expressing their concern regarding this legislation. These are being sent so that the members of your committee may have the benefit of their views as consideration is given to this legislation. Sincerely yours,

ODIN LANGEN, Member of Congress.


Fergus Falls, Minn., December 18, 1959. Hon. ODIN LANGEN, Capitol Building, Washington, D.C.

DEAR MR. LANGEN: I am writing in reference to what I and many other people believe is essential legislation. This is the extension of the GI bill.

I recently have been released from military service, and I am now attending college. I plan to obtain a bachelor of science degree, if at all possible. I am married, and we are having an extremely difficult time financing my education. We are in debt now, and will owe a sizable sum by the time I receive my degree. The benefits of the GI bill would be a godsend to us.

Many of my friends and associates share my sentiments. Scores of young veterans would go on to school if they could receive this aid. The income tax from better educated and higher paid Americans would more than pay for the extension of the GI bill. Besides that, America as a whole would greatly benefit from the advancements in all fields.

I do believe that this bill should be restricted to only those students who are attending a full-time college or trade course. This would prevent any encroachment on these funds, and thus insure the taxpayer that his money is being spent wisely.

In my estimation, anyone who is against this legislation is not truly concerned with the future of our great country. I sincerely hope that the 86th Congress will not hesitate in acting affirmatively on it. Remember, sir, that the assurance of a better America lies in your hands, and in the hands of your colleagues. Sincerely yours,


BATTLE LAKE, MINN., December 23, 1959. Representative Odin LANGEN, H ou se Office Building, Washington, D.C.

DEAR MR. LANGEN: As a constituent from your home district, I would like to express my opinions on a very important subject. First, as you know, our educational progress has been seriously questioned lately; the shortage of people with professional educations is alarming. Secondly, I wish to protest the discrimination against men who entered the Active Armed Forces after January 31, 1955; not only being denied the benefits accorded previous veterans but being forced to serve for extended periods in the Reserve Forces. Many of these veterans, myself included, served in times and places of more physical danger and mental anguish than many of the men who served during the Korean conflict.

The two situations I have mentioned could well be resolved in the passage of the proposed extension of the GI education bill, which will be brought up for consideration in the House this coming session. In view of the fine results produced by the previous GI bill, in producing so many qualified and educated people, an extension must be properly termed as an investment and not an expense. The money laid out to give veterans an education would soon enough be paid back in extra taxes from better incomes.

At present, I am a student, preparing for a career in teaching vocational agriculture. I have also served a total of 7 years in the Regular and Reserve Forces. My wife is teaching, and helping me through school. If this income should stop, I would be forced to quit my college courses and obtain any kind of a job just to make a living. The Federal student loan funds are so small and hard to obtain that they are worthless to most students; therefore, an extension of the GI bill would be the only answer.

I understand the President is opposed to the passage of this bill; however, since he has personally abhorred the shortage of educated people in this country, then turned around and urged passage of the draft and compulsory reserve service bills, this appears to be contradictory. I feel that passage of this bill would assure thousands of enterprising young people the very chance they need to be of much larger service to their communities and for our country. I hope those of us who have served, and wish to be of even larger service in civilian life may count on your support of this bill. Sincerely,


WAHPETON, N. DAE., January 10, 1960. ODIN LANGEN, House Ofice Building, Washington, D.C.

DEAR SIR: Again this year, as has been the case ever since the end of the GI bill, there is talk circulating around nearly every campus about plans for either reinstating the old law or presenting a new law for passage which will give financial aid to ex-servicemen working toward degrees.

I have listened to many points of view, both pro and con. The one argument proferred to me against the program is the cost of administering the program. I find it easy to comprehend administration costs since I was once assigned to an organization in the higher echelon of naval supply. But, can you tell me what if any, excuse can be made for the payment of allowances to a select group of individuals (veterans) and yet another group of men who rendered an equal amount of time to their country have practically no rights or benefits from the Veterans' Administration.

Upon my release from the Navy in September 1958 (3-year hitch) I attempted to take the battery of aptitude tests given by the V.A. for the purpose of ascertaining the type of higher education I would derive the most benefit from. I was informed that I was inelligible since I was not under the GI program. In itself this incident was unimportant but it does illustrate the lack of any sort of benefits to those who entered the service even a few months after the expiration of the GI bill.

If expense of the proposed bill is deemed too high, wouldn't it be possible in other ways to give aid to ex-servicemen? Though I'm not a politician and unfamiliar with the intricacies of government, I have often wondered why, if the leading nations of the world are placing so much stress on an educated citizenry, doesn't the U.S. Government give more incentive and aid? Tuition and books, and in some cases commuting expenses, comprise a large part of college expenses. Isn't there some method by which these items could be made tax deductable for undergraduate students as they already are for graduate students. This item alone would be a help to ex-servicemen working toward degrees.

Another question if I may. There have been many articles in periodical pub lications concerning the abundance of scholarships which are available for the asking. I happen to be working in preeducation and I plan on a social science major with an eventual master's degree in political science. I am on my second year at Wahpeton State School of Science and I will be taking my junior, senior, and very possibly my masters from the Moorhead State College. What I am wondering is if there are any scholarships which you may be aware of that are available for obtaining degrees in the social or political science fields.

If there is an attempt at reinstating the GI bill, I would appreciate it if you would lend your full support. Also, I would appreciate any information you might have concerning scholarships or tax deductions for undergraduates. Respectfully yours,


BATTLE LAKE, MINN., December 21, 1959.
U.S. Representative, Crookston, Minn.

DEAR MR. LANGEN: I am interested in the current pending legislation concerning the post-Korean GI bill, especially the educational benefits.

Such a bill, if enacted, would raise the standard of education, the morale of the cold war soldier.

This legislation would be a compensation for the cold war soldier who sees
such signs as "Dogs and Soldiers Keep Off.”
I would appreciate your consideration of this proposed legislation.
Yours very truly,




Frankfort, Ky., January 22, 1960.
Speaker, House of Representatives,
Washington, D.O.

DEAR SPEAKER RAYBURN: We are enclosing a copy of House Resolution No. 16,
which was adopted on this date by the House of Representatives of Kentucky.
We would appreciate your attention to this matter.
Sincerely yours,

Chief Clerk of the House.

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A resolution memorializing the Congress of the United States to extend Public Law No.

550, 82d Congress, relating to education and training benefits, to service men and women as long as the draft continues

Whereas the Congress of the United States, expressing the will of the citizenry by the enactment of the Servicemen's Readjustment Act of 1944 (Public Law 346, 78th Cong.) and the Veterans' Readjustment Act of 1952 (Public Law 550, 82d Cong.), recognized the justice, equity, and general value of a sound education and training program for the veterans of our country; and

Whereas the legislation enacted to provide such education and training benefits was for the purpose of restoring lost educational opportunities to those men and women who served in the Armed Forces of our country and has accomplished this purpose and has been an immeasurable factor in contributing to the economic security of our veterans and their families as well as to the security of the Nation as a result of the increase in our general educational level and in the professional and technical skills of the veterans; and

Whereas the increased earning power of the veterans directly attributable to the program is resulting in payment of increased income taxes which will more than repay the total cost of the program; and

Whereas, notwithstanding the continuing involuntary military service pro gram, Public Law 7, 84th Congress, denied entitlement to education and training benefits to all veterans who first entered service after January 31, 1955, which is grossly inequitable: Now, therefore, be it

Resolved by the House of Representatives of the Commonwealth of Kentucky:

SECTION 1. That the Congress of the United States extend education and train. ing benefits similar to the benefits provided by Public Law 550, 82d Congress, as amended, to all veterans of our country who served during any period in which involuntary military service is authorized, and urges the Congress of the United States to enact legislation to accomplish this objective;

SEC. 2. That the clerk of the house send attested copies of this resolution to the President of the U.S. Senate, the Speaker of the House of Representatives, the chairman of the Education Committee of each House, and to each Member of the Kentucky delegation in the Congress of the United States.

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