Under current law, VA pays work-study allowances directly to students receiving VA education benefits who are hired by a VA facility, state veterans agency, or a Congressional office or institution of higher learning to perform duties related to veteran benefits or services. Students must earn credits at a rate of at least three-quarters of full-time enrollment to be paid allowances. Those allowances are paid at the higher of the state or federal minimum wage for up to 25 hours per week during enrollment. H.R. 6376 would establish a five-year pilot program under which VA would pay allowances to students earning credits at a rate of half-time or more. On the basis of data provided by VA concerning student enrollment rates and work-study payments, CBO estimates that such payments will increase by an average of about nine percent in each year of the pilot program, increasing direct spending by $19 million over the 2022-2031 period.
