Congress Passes GI Bill of Rights

Servicemen’s Readjustment Act (1944)

Even before the end of World War II, Congress passed the Servicemen’s Readjustment Act, popularly known as the GI Bill of Rights, to provide federal benefits to veterans of the armed services. With the post-World War I recession in mind, policymakers attempted to soften the economic consequences of demobilization following World War II by providing work, education, and housing benefits. It worked. More than two million veterans used the benefits to pursue college degrees, and the legislation enabled millions of veterans’ families to become home owners, pulling them into a broadening middle class.

An Act to Provide Federal Government Aid for the Readjustment in Civilian Life of Returning World War II Veterans

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the Servicemen’s Readjustment Act of 1944.

Title I

Chapter I — Hospitalization, Claims, and Procedures

SEC. 100. The Veterans Administration is hereby declared to be an essential war agency and entitled, second only to the War and Navy Departments, to priorities in personnel, equipment, supplies, and material under any laws, Executive orders, and regulations pertaining to priorities, and in appointments of personnel from civil-service registers the Administrator of Veterans Affairs is hereby granted the same authority and discretion as the War and Navy Departments and the United States Public Health Service.…

Title II

Chapter IV — Education of Veterans

1. Any person who served in the active military or naval service on or after September 16, 1940, and prior to the termination of the present war, and who shall have been discharged or released there—from under conditions other than dishonorable, and whose education or training was impeded, delayed, interrupted, or interfered with by reason of his entrance into the service, or who desires a refresher or retraining course, and who either shall have served ninety days or more, exclusive of any period he was assigned for a course of education or training under the Army specialized training program or the Navy college training program, which course was a continuation of his civilian course and was pursued to completion, or as a cadet or midshipman at one of the service academies, or shall have been discharged or released from active service by reason of an actual service-incurred injury or disability, shall be eligible for and entitled to receive education or training under this part.…

5. The Administrator shall pay to the educational or training institution, for each person enrolled in full time or part time course of education or training, the customary cost of tuition, and such laboratory, library, health, infirmary, and other similar fees as are customarily charged, and may pay for books, supplies, equipment, and other necessary expenses, exclusive of board, lodging, other living expenses, and travel, as are generally required for the successful pursuit and completion of the course by other students in the institution: Provided, That in no event shall such payments, with respect to any person, exceed $500 for an ordinary school year.…

6. While enrolled in and pursuing a course under this part, such person, upon application to the Administrator, shall be paid a subsistence allowance of $50 per month, if without a dependent or dependents, or $75 per month, if he has a dependent or dependents, including regular holidays and leave not exceeding thirty days in a calendar year.…

Title III

Loans for the Purchase or Construction of Homes, Farms, and Business Property

Chapter V — General Provisions for Loans

SEC. 501. (a) Any application made by a veteran under this title for the guaranty of a loan to be used in purchasing residential property or in constructing a dwelling on unimproved property owned by him to be occupied as his home may be approved [by] the Administrator of Veterans Affairs if he finds

(1) that the proceeds of such loans will be used for payment for such property to be purchased or constructed by the veteran;

(2) that the contemplated terms of payment required in any mortgage to be given in part payment of the purchase price or the construction cost bear a proper relation to the veteran’s present and anticipated income and expenses; and that the nature and condition of the property is such as to be suitable for dwelling purposes; and

(3) that the purchase price paid or to be paid by the veteran for such property or the construction cost, including the value of the unimproved lot, does not exceed the reasonable normal value thereof as determined by proper appraisal.

Purchase of Farms and Farm Equipment

SEC. 502. Any application made under this title for the guaranty of a loan to be used in purchasing any land, buildings, livestock, equipment, machinery, or implements, or in repairing, altering, or improving any buildings or equipment, to be used in farming operations conducted by the applicant, may be approved by the Administrator of Veterans Affairs if he finds

(1) that the proceeds of such loan will be used in payment for or personal property purchased or to be purchased by the veteran, or for repairing, altering, or improving any buildings or equipment to be used in bona fide farming operations conducted by him;

(2) that such property will be useful in and reasonably necessary for efficiently conducting such operations;

(3) that the ability and experience of the veteran, and the nature of the proposed farming operations to be conducted by him, are such that there is a reasonable likelihood that such operations will be successful; and

(4) that the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal.

Purchase of Business Property

Sec. 503. Any application made under this title for the guaranty of a loan to be used in purchasing any business, land, buildings, supplies, equipment, machinery, or tools, to be used by the applicant in pursuing a gainful occupation (other than farming) may be approved by the Administrator of Veterans Affairs if he finds

(1) that the proceeds of such loan will be used for payment for real or personal property purchased or to be purchased by the veteran and used by him in the bona fide pursuit of such gainful occupation;

(2) that such property will be useful in and reasonably necessary for the efficient and successful pursuit of such occupation;

(3) that the ability and experience of the veteran, and the conditions under which he proposes to pursue such occupation, are such that there is a reasonable likelihood that he will be successful in the pursuit of such occupation; and

(4) that the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal.…

Title IV

Chapter VI — Employment of Veterans

SEC. 600. (a) In the enactment of the provisions of this title Congress declares as its intent and purpose that there shall be an effective job counseling and employment placement service for veterans … so as to provide for them the maximum of job opportunity in the field of gainful employment. [A] Veterans Placement Service Board … shall determine all matters of policy relating to the administration of the Veterans Employment Service of the United States Employment Service.…

SEC. 601. The United States Employment Service shall assign to each of the States a Veterans employment representative, who shall…

(a) be functionally responsible for the supervision of the registration of veterans in local employment offices for suitable types of employment and for placement of veterans in employment;

(b) assist in securing and maintaining current information as to the various types of available employment in public works and private industry or business;

(c) promote the interest of employers in employing veterans;

(d) maintain regular contact with employers and Veterans organizations with a view of keeping employers advised of veterans available for employment and veterans advised of opportunities for employment; and

(e) assist in every possible way in improving working conditions and the advancement of employment of veterans.

Title V

Chapter VII — Readjustment Allowances for Former Members of the Armed Forces Who Are Unemployed

SEC. 700. (a) Any person who shall have served in the active military or naval service of the United States at any time after September 16, 1940, and prior to the termination of the present war, and who shall have been discharged or released from active service under conditions other than dishonorable, after active service of ninety days or more, or by reason of an injury or disability incurred in service in line of duty, shall be entitled … to receive a readjustment allowance as provided herein for each week of unemployment, not to exceed a total of fifty-two weeks.…

An Act to Provide Federal Government Aid for the Readjustment in Civilian Life of Returning World War II Veterans, June 22, 1944; Enrolled Acts and Resolutions of Congress, 1789–1996; General Records of the United States Government; Record Group 11; National Archives.

READING AND DISCUSSION QUESTIONS