VA Finally Catches Up on 15-Year-Old Education Benefit Laws
Published Date: 1/16/2025
Rule
Summary
Starting March 17, 2025, the VA is updating how it pays education benefits for Post-9/11 vets, Fry Scholarship kids, and others using GI Bill programs. These changes make it easier to get money for more types of schooling and fix how overpayments are handled. If you’re a veteran, a surviving child, or a student using these benefits, expect smoother payments and new rules that help you get the most out of your education funds.
Analyzed Economic Effects
8 provisions identified: 4 benefits, 3 costs, 1 mixed.
Expanded Post‑9/11 GI Bill Access
VA is implementing Post-9/11 GI Bill improvements that expand the types of programs students may pursue and refine how payments are administered to make benefit delivery easier and more efficient. These changes implement the Post-9/11 Veterans Educational Assistance Improvements Act of 2010 and related statutes and take effect March 17, 2025.
Temporary School‑Closing Payments
VA may authorize payment for a temporary school closing that occurs during a certified period of enrollment if the closing is due to an emergency or an Executive Order-based policy. An individual may not receive more than 4 weeks of payment for temporary school closings in any 12-month period, and a school may request administrative review within one year of VA's notification letter.
Housing Allowance: Online vs On‑site
VA clarifies that an individual pursuing a program solely via distance learning at a rate of pursuit greater than 50% receives a monthly housing allowance equal to 50 percent of the national average. If an individual takes even one on-site class (i.e., is not pursuing solely via distance learning), the individual may receive the full monthly housing allowance based on the campus locality.
Yellow Ribbon Access for Fry Scholars
The Yellow Ribbon Program Agreement collection is revised to include individuals who establish eligibility for the Fry Scholarship, allowing Fry Scholarship recipients to receive Yellow Ribbon Program benefits if an institution opts into the program. VA estimates 5,600 institutions may respond to indicate participation and caps.
Fry Scholarship Application Rule
Certain children must submit an application to establish eligibility for the Fry Scholarship, and some individuals must elect between the Fry Scholarship or Dependency and Indemnity Compensation (DIC) or Survivors' and Dependents' Educational Assistance (DEA) to establish eligibility. VA estimates 83,972 respondents for these application requirements, with an average burden of 45 minutes per response.
School Liability for No‑Show Overpayments
Revised Sec. 21.9695(b)(3) makes an educational institution liable for an overpayment of VA educational assistance when a student never attends classes for which the school certified enrollment, or when the student completely withdraws on or before the first day of the certified enrollment period. This change aims to prevent institutions from receiving payment for education not provided.
Annual Reporting Fee Rules for Institutions
VA will pay an annual reporting fee to educational institutions that furnish VA education benefits, but when computing the fee VA will not count an individual whose only receipt of educational assistance in a calendar year was Top-Up, a rural relocation payment, or reimbursement for a national test or licensing/certification test. Institutions must certify reasonable diligence and that reporting fees received after January 4, 2011 will be used for VA certifications or veteran support programs.
New Forms, Certifications, and Reimbursement Claims
The rule adds or revises multiple collections of information requiring students and applicants to submit forms or certifications to receive payments or reimbursements. Examples: Fry Scholarship eligibility forms (estimated 83,972 respondents at 45 minutes each), reimbursement claims for national admission tests (310 respondents), licensing/certification test reimbursement (4,210 respondents; 12,630 responses), monthly flight-training certifications (3,900 respondents; 23,400 responses), correspondence lesson certifications (154 respondents; 616 responses), and VA enrollment certification using VA Form 22-1999 (estimated 1,266,616 respondents; 3,799,847 responses). VA estimates associated burden hours and respondent costs for each collection.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-17116, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended
The U.S. Department of Labor publishes this final rule to revise its implementing regulations for the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (VEVRAA). These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority. Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025. This final rule also makes technical revisions to update the VEVRAA regulations' jurisdictional thresholds, which were adjusted for inflation by the Federal Acquisition Regulation Council on October 1, 2025.
2026-17115, Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended
The U.S. Department of Labor is revising its implementing regulations for Section 503 of the Rehabilitation Act of 1973, as amended (Section 503). The revisions align the regulations with applicable law and recent executive orders, including Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," and Executive Order 14219, "Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative."
2026-17114, Rescission of Executive Order 11246 Implementing Regulations
On January 21, 2025, President Trump issued Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. Accordingly, the U.S. Department of Labor publishes this final rule to rescind the implementing regulations for Executive Order 11246.
2026-17088, Carboxin; Pesticide Tolerances
This regulation establishes tolerances for residues of carboxin in or on multiple crops that are discussed later in this document. Under the Federal Food, Drug, and Cosmetic Act (FFDCA), UPL Delaware Inc. submitted a petition to EPA requesting that EPA establish a maximum permissible level for residues of this pesticide in or on the identified commodities.
2026-17120, Fisheries of the South Atlantic; 2026 Commercial Closure of Red Snapper in the South Atlantic
NMFS implements an accountability measure for red snapper in the exclusive economic zone (EEZ) of the South Atlantic. NMFS projects that commercial landings of red snapper will reach the commercial annual catch limit (ACL) for the 2026 fishing year. Therefore, NMFS is closing the commercial sector for red snapper in the South Atlantic EEZ. This closure is necessary to protect the red snapper resource.
2026-17113, Fisheries of the South Atlantic; Commercial Closure for Blueline Tilefish in the South Atlantic
NMFS implements an accountability measure for the commercial harvest of blueline tilefish in the exclusive economic zone (EEZ) of the South Atlantic. NMFS estimates that commercial landings of blueline tilefish will reach the commercial annual catch limit (ACL) for the 2026 fishing year. Accordingly, NMFS closes the commercial sector of blueline tilefish in the South Atlantic EEZ to protect the blueline tilefish resource from overfishing.
Previous / Next Documents
Previous: 2025-00963, Rules of Practice and Procedure; Adjusting Civil Money Penalties for Inflation
Starting January 15, 2025, the Farm Credit Administration is raising its civil money penalties to keep up with inflation. This means anyone who breaks certain farm credit or flood insurance rules could face bigger fines. The goal? To keep penalties strong enough to stop rule-breaking and keep things fair.
Next: 2024-30576, Papahānaumokuākea National Marine Sanctuary; Final Regulations
NOAA is officially protecting the huge Papahānaumokuākea National Marine Sanctuary, covering over 582,000 square miles around the Northwestern Hawaiian Islands. New rules will help keep its amazing wildlife, culture, and history safe. These changes kick in after a 45-day review by Congress starting January 16, 2025, with Hawaii’s governor able to weigh in on state waters.