H.R. 3981 would require educational institutions that offer certain courses to people who are eligible for education benefits administered by the Department of Veterans Affairs (VA) to notify VA (or relevant state agencies) of specified unfavorable events involving the institution. (Relevant state agencies include those responsible for approving educational institutions, programs, and courses to receive benefit payments from VA.) Reportable events would include punitive actions by state or federal agencies, heightened monitoring of federal student aid, and the potential loss of accreditation. Institutions that fail to report those events would become ineligible to receive benefit payments from VA, which are classified in the federal budget as direct spending. CBO anticipates that almost all students with VA benefits who plan to attend schools that do not comply would use their benefits at other educational institutions instead. The cost of attendance at the substitute institutions could be more or less than the costs of the schools the students had planned to attend. Thus, requiring those notifications would not significantly affect the budget, CBO estimates.