Improving Veterans' Opportunity in Education and Business Act of 2008

Mr. President, I am pleased that the Senate is acting on S. 3023, as amended, the proposed Veterans' Benefits Improvement Act of 2008, as passed by the House of Representatives earlier this week. The bill, as it comes before the Senate, is a compromise agreement developed with our counterparts on the House Committee on Veterans' Affairs. I thank Chairman Filner and Ranking Member Buyer of the House committee for their cooperation on this legislation. I also thank my good friend, the committee's ranking member, Senator Burr, for his cooperation as we have developed this bill.

This omnibus veterans' benefits bill will provide much needed support to our Nation's veterans. It contains provisions that are designed to enhance compensation, claims processing, housing, labor and education and insurance benefits for veterans. A full explanation of the Senate and House negotiated agreement can be found in the Joint Explanatory Statement, which I will ask appear in the Record at the conclusion of my remarks.

I will highlight a few of the provisions that I have sponsored in the legislation that is before us today.

This legislation would result in improved notices being sent to veterans concerning their claims for VA benefits. Following a number of decisions by the U.S. Court of Appeals for Veterans Claims and the U.S. Court of Appeals for the Federal Circuit, VA's notification letters to veterans about the status of their claims have become increasingly long, complex, and difficult to understand. These notification letters must be simplified, as veterans, VA, veterans' advocates, and outside review bodies have all recommended. The notices should focus on the specific type of claim presented. They should use plain and ordinary language rather than bureaucratic jargon. Veterans should not be subjected to confusing information as they seek benefits.

To further improve the VA compensation system, this legislation would end the prohibition on judicial review in the U.S. Court of Appeals for the Federal Circuit of matters concerning the VA rating schedule. VA issues regulations which are used to assign ratings to veterans for particular disabilities. Under current law, actions concerning the rating schedule are not subject to judicial review unless a constitutional challenge is presented. This legislation would amend the law to treat actions concerning the rating schedule in the same manner as all other actions concerning VA regulations.

I expect VA to comply with all laws passed by Congress in developing and revising the rating schedule. However, justice to our Nation's veterans requires that actions concerning the rating schedule be subject to the same judicial scrutiny as is available for the review of actions involving other regulations.

VA's Home Loan Guaranty Program may exempt homeowners from having to make a downpayment or secure private mortgage insurance, depending on the size of the loan and the amount of the VA guaranty.

Public Law 108-454 increased VA's maximum guaranty amount to 25 percent of the Freddie Mac conforming loan limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single-family residence, as adjusted for the year involved.

The Economic Stimulus Act of 2008, Public Law 110-185, temporarily reset the maximum limits on home loans that the Federal Housing Administration may insure and that Fannie Mae and Freddie Mac may purchase on the secondary market to 125 percent of metropolitan-area median home prices but did so without reference to the VA home loan program. This had the effect of raising the Fannie Mae, Freddie Mac, and FHA limits to nearly $730,000, in the highest cost areas, while leaving the then-VA limit of $417,000 in place. On July 30, 2008, the Housing and Economic Recovery Act of 2008 was signed into law as Public Law 110-289. That law provided a temporary increase in the maximum guaranty amount for VA loans originated from July 30, 2008 through December 31, 2008, to the same level as provided in the stimulus act.

The compromise agreement would extend the temporary increase in the maximum guaranty amount until December 31, 2011. This would enable more veterans to utilize their VA benefit to purchase more costly homes.

The compromise agreement would also increase the maximum guaranty limit for refinance loans and increase the percentage of an existing loan that VA will refinance under the VA home loan program.

Under current law, the maximum VA home loan guaranty limit for most loans in excess of $144,000 is equal to 25 percent of the Freddie Mac conforming loan limit for a single-family home. Public Law 110-289 set this value at approximately $182,437 through the end of 2008. This means lenders offering loans of up to $729,750 will receive up to a 25- percent guaranty, which is typically required to place the loan on the secondary market. Under current law, this does not include regular refinance loans.

Current law limits to $36,000 the guaranty that can be used for a regular refinance loan. This restriction means VA will not guarantee a regular refinance loan over $144,000, essentially precluding a veteran from using the VA program to refinance his or her existing FHA or conventional loan in excess of that amount.

VA is also currently precluded from refinancing a loan if the homeowner does not have at least 10 percent equity in his or her home.

The compromise agreement would remove the equity requirement for refinancing from an FHA loan or conventional loan to a VA-guaranteed loan. This would allow more veterans to use their VA benefit to refinance their mortgages. Many veterans do not have 10 percent equity and thus are precluded from refinancing with a VA-guaranteed home loan.

Given the anticipated number of non-VA-guaranteed adjustable rate mortgages that are approaching the reset time when payments are likely to increase, the committee believes that it

is prudent to facilitate veterans refinancing to VA-guaranteed loans. In light of today's housing and home loan crises, additional refinancing options will help some veterans bridge financial gaps and allow them to stay in their homes and escape possible foreclosures. These provisions would allow more qualified veterans to refinance their home loans under the VA program.

This omnibus benefits bill would also make crucial updates to the Uniformed Services Employment and Reemployment Rights Act, which protects service members' rights to return to their prior jobs with the same wages and benefits. The provisions in the committee bill are derived from S. 2471, the proposed USERRA Enforcement Improvement Act of 2007, which Senator Kennedy and I introduced on December 13, 2007. This legislation would ensure that Federal agencies assist service members in a more effective manner by requiring the Department of Labor to investigate and refer cases in a more timely manner and by requiring reports from the Department of Labor on their compliance with the deadlines.

The omnibus benefits bill includes a provision derived from S. 3000, the proposed Native American Veterans Access Act of 2008, which I introduced on May 8, 2008. This provision is intended improve VA's ability to understand and respond to the needs of Native American veterans. While Native Americans are more likely to serve in uniform than the general population, many of them find cultural and geographical barriers between themselves and the benefits they earned through service. In addition, those returning to traditional homelands, especially reservation communities, frequently come home to dismal job opportunities and starved economies. The proposed bill would require a study to help us understand the employment needs of Native American veterans and how best to address them.

The compromise agreement also includes provisions derived from legislation I introduced on April 25, 2007, S. 1215, which would update the Special Unemployment Study required to be submitted by the Secretary of Labor to the Congress by mandating that it cover veterans of Post 9/11 global operations. It would also require the report to be submitted on an annual, rather than a biennial, basis. By updating this report, Congress will have more data available on more recent groups of veterans--those who served and are serving in the Post-9/11 global operations. This will help with assessments of the needs of current veterans entering the work force and develop appropriate responses.

Before I close, I recognize and thank the individuals involved in putting together this comprehensive measure. Specifically, I thank Kimberly Ross, Brian Lawrence, Juan Lara, and Mike Brinck from the House committee and Amanda Meredith, Mindi Walker, and Kevin Tewes from the minority staff on the Senate Committee. I also thank the majority staff who assisted me in developing the compromise agreement and all the legislation that led up to it. Patrick McGreevy, Mary Ellen McCarthy, Ted Pusey, Babette Polzer, and Dahlia Melendrez have worked throughout the 110th Congress on many of the provisions included in this legislation, and I am pleased that our collective efforts have led to this compromise agreement becoming a reality.

I urge our colleagues to support this important legislation that would benefit many of this Nation's nearly 24 million veterans and their families.

Mr. President, I ask unanimous consent to have the Joint Explanatory Statement, which was developed with our colleagues in the House, printed in the Record.

Mr. Speaker, I yield myself as much time as I might consume.

I rise in support of H.R. 6221, as amended, the Veteran-Owned Small Business Protection and Clarification Act of 2008.

H.R. 6225, as amended, makes three important improvements for our veterans. First, it closes a loophole in title 38, United States Code, to require that contracts awarded on behalf of Department of Veterans Affairs by agents of the Department include provision to comply with the disabled veteran-owned small business provisions in public law 109- 461.

Second, the bill would expand the types of VA work-study jobs on college campuses to provide more jobs for student veterans and widen interaction between veterans, the faculty, staff and, most importantly, other students.

Finally, H.R. 6221, as amended, would take provisions from H.R. 6272 introduced by Congressman Welch to create the Military Occupational Specialty Transition (MOST) program, a modernized version of the old Service Members Occupational Conversion and Training Act, or SMOCTA.

Focusing on veterans whose military specialty does not translate well into civilian life and who do not have other training opportunities available under title XXXVIII, this bill will benefit veterans whose job skills no longer match what is needed by today's economy.

For example, today's army or marine infantryman is experienced with some types of technology related to their specialty, but most of their training is in small unit tactics and weapons. They are not like the technicians who service and operate sophisticated systems on a daily basis. While an infantryman has developed soft skills such as leadership and initiative that are valuable in many work places, many hands-on skills are usually not part of the resume.

Or take a sailor whose main job is to move aircraft around on the flight deck of a carrier. He works in a very dangerous environment but other than working the light line at an airport, his skill is not very transferable.

Or take the airman who is a load master who is responsible for the safe loading of cargo on aircraft. Outside of working for an airline in the same capacity, the load master has few directly transferable military skills.

I appreciate our colleague from Vermont (Mr. Welch) for his initiative to renew funding for the old Service Members Occupational Conversion and Training Act, or SMOCTA. Again, in a bipartisan manner, the Economic Opportunity Subcommittee has brought us a bill that meets Mr. Welch's goal of providing a training program for veterans who finish military service with few or no skills that are transferable to regular life.

Mr. Speaker, I extend my gratitude to Chairman Filner, Ranking Member Buyer, and subcommittee Chairwoman Herseth Sandlin for working together to bring this bill to us as a bipartisan effort to make veterans more competitive in the job market. I also want to thank our staffs for their hard work.

Mr. Speaker, I urge our colleagues to support H.R. 6221, and I reserve the balance of my time.

Mr. Speaker, I have no further speakers also.

Again, I want to encourage my colleagues to vote for the bill, and I also want to thank Mr. Welch for his hard work in bringing forward, I think, this reauthorization. With the changes that are being made with his help is really going to help the servicemember that comes out who is disadvantaged because he hasn't received as much training in specialized fields as the other members.

I yield back the balance of my time.

General Leave

Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6221) to amend title 38, United States Code, to require the Secretary of Veterans Affairs to include in each contract the Secretary enters for the acquisition of goods and services a provision that requires the contractee to comply with the contracting goals and preferences for small business concerns owned or controlled by veterans, and for other purposes, as amended.

Mr. Speaker, I yield myself 1 minute. I want to thank Mr. Boozman, and he included parts of a bill from Ms. Herseth Sandlin and from Mr. Welch from Vermont, another new Member who has been a great participant in our deliberations.

I would like to thank my distinguished colleague, Ranking Member John Boozman in the Subcommittee on Economic Opportunity, for his bipartisan efforts in crafting H.R. 6221, as amended, Improving Veterans' Opportunities in Education and Business Act.

I also want to thank Subcommittee Chairwoman Stephanie Herseth Sandlin and Congressman Peter Welch for introducing language included in this important legislation.

Many of our veterans today are currently transitioning into the workforce or continuing their studies in higher education.

Some of our disabled veterans own small businesses, while others are receiving training to pursue other careers. Our veterans deserve to receive the necessary resources to succeed in life after the military. We must work together to ensure that our Nation's heroes are equipped and provided the training they need for their future careers.

H.R. 6221 would clarify a provision in current law that was intended to assist veterans in the Federal procurement process. This provision has been interpreted by the VA General Counsel that it does not apply to agents acting on behalf of the VA. H.R. 6221 would clarify congressional intent and require any entity that purchases goods and services on behalf of the VA to comply with the contracting goals and preferences for small businesses owned or controlled by veterans.

Language introduced by Representative Stephanie Herseth Sandlin of South Dakota would authorize $10 million for VA to conduct a 5-year pilot program to expand the veterans' campus work study program.

Eligible work-study may include positions in academic departments and student services, such as jobs in tutoring, research, career services, and campus orientation.

Language was introduced by Representative Peter Welch of Vermont to authorize $60 million for the next 10 years to fund the Service Members' Occupational Conversion and Training Act, commonly called

Mr. Speaker, I have no further speakers.

I would ask, Mr. Speaker, that all Members have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 6221, as amended.

I yield back the balance of my time.

Mr. Speaker, I rise in support of H.R. 6221, as amended, the Veteran Owned Small Business Protection and Clarification Act of 2008. This bill, as amended, would amend title 38, United States Code, to require the Secretary of Veterans Affairs to include in each contract the Secretary enters for the acquisition of goods and services a provision that requires compliance with the contracting goals and preferences for small business concerns owned or controlled by veterans, and for other purposes.

H.R. 6221, as amended, does 3 very good things for veterans.

First, it closes a loophole in the service disabled veteran-owned business provisions in Public Law 109-461 to require that any VA agreement with other entities to provide contracting services include provisions to comply with those provisions.

Second, the bill would expand the types of VA work study jobs on college campuses to provide more jobs for student veterans, and widen interaction between veterans, the faculty, staff and most importantly, other students.

Finally, H.R. 6221, as amended, would take provisions from H.R. 6272, introduced by Congressman Welch to create the Military Occupational Specialty Transition (MOST) program, a modernized version of the old Service Members' Occupational Conversion and Training Act or SMOCTA.

Focusing on veterans whose military specialty does not translate well into civilian life and who do not have other training opportunities available under title 38, this bill will benefit veterans whose job skills no longer match what is needed by today's economy.

I appreciate our colleague from Vermont, Mr. Welch, for his bill which would renew funding for the old Service Members' Occupational Conversion and Training Act or SMOCTA. Again, in a bipartisan manner, the Economic Opportunity Subcommittee has brought us a bill that meets Mr. Welch's goal of providing a training program for veterans who finish military service with few or no skills that are transferrable to civilian life.

Mr. Speaker, I extend my gratitude to Chairman Filner, Subcommittee Chairwoman Herseth Sandlin and Ranking Member Boozman for working together to bring this bill to us as a bipartisan effort to make veterans more competitive in the job market.

Mr. Speaker, I urge my colleagues to support H.R. 6221.

Mr. Speaker, as the Chairwoman of the Veterans' Affairs Economic Opportunity Subcommittee and sponsor of the ``Pilot College Work Study Programs for Veterans Act,'' which has been included in the ``Improving Veterans' Opportunity in Education

and Business Act,'' I rise today in strong support of H.R. 6221, as amended.

I would like to thank full Committee Chairman Filner, Ranking Member Buyer, and the sponsor of the bill, Subcommittee Ranking Member Boozman for their leadership and bipartisan support of this bill, which the Economic Opportunity Subcommittee passed on June 26 and the full Committee approved on July 15.

As I noted, this important measure to improve business and education opportunities for veterans includes the ``Pilot College Work Study Programs for Veterans Act,'' which I introduced on June 10 of this year. The purpose of my bill is to direct the Secretary of Veterans Affairs to conduct a 5-year pilot program to expand on existing work- study activities for veterans. Currently, veterans that qualify for work-study would be limited to working on VA related work. My bill would allow those veterans the option of working in academic departments and student services. This change would put them at par with students that qualify for a work-study position under programs not administered by the VA.

I also would like to thank Representative Peter Welch for a bill, which was also included in H.R. 6221, to reauthorize the Military Occupational Specialty Transition (MOST) Program, and Subcommittee Ranking Member Boozman for the introduction of the underlying bill to require VA contractees to comply with contracting goals and preferences for small businesses owned by veterans.

Again, I thank Chairman Boozman for sponsoring this important bill. I encourage my colleagues to support H.R. 6221, as amended.