S. 972, Fairness in Veterans’ Education Act of 2025

S. 972 would increase certain refunds that are paid by the Department of Veterans Affairs (VA) to beneficiaries of the Post-9/11 GI Bill. The costs of that program are paid from mandatory appropriations and thus are reflected in the budget as direct spending. This estimate reflects the assumptions that the bill will be enacted early in fiscal year 2026 and that provisions will take effect upon enactment. The budgetary effects of the legislation fall within budget function 700 (veterans benefits and services).

Under the Montgomery GI Bill (MGIB), service members must contribute at least $1,200 from their basic pay to become eligible for benefits. Contributions are not required for eligibility under the Post-9/11 GI Bill, which pays for tuition and fees and, in most cases, includes a monthly housing allowance. People who are eligible for both the MGIB and Post-9/11 GI Bill may receive a refund of their MGIB contributions if they received benefits—including a housing allowance—under the Post-9/11 GI Bill. That refund is made if they use all 36 months of Post-9/11 GI Bill benefits for which they are eligible. The refund is paid along with their last monthly housing payment.

The bill would require VA to refund MGIB contributions to beneficiaries within 60 days of the last benefit payment they receive under the Post-9/11 GI Bill, regardless of whether they receive a housing allowance. Using data from VA, CBO estimates that, under S. 972, 22,500 more people would receive refunds over the 2025‑2035 period, increasing direct spending by $27 million (see Table 1).

On May 30, 2025, CBO transmitted a cost estimate for H.R. 1458, the Veterans Education and Technical Skills Opportunity Act of 2025, as ordered reported by the House Committee on Veterans’ Affairs on May 6, 2025. S. 972 is identical to section 2 of H.R. 1458. The estimated budgetary effects for S. 972 are less than those for section 2 of H.R. 1458 as a result of the later assumed enactment date.

The CBO staff contact for this estimate is Paul B.A. Holland. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.