S. 342, Purple Heart Veterans Education Act of 2026

April 1, 2026

Cost Estimate

As ordered reported by the Senate Committee on Veterans’ Affairs on March 18, 2026

At a Glance S. 342, Purple Heart Veterans Education Act of 2026 As ordered reported by the Senate Committee on Veterans’ Affairs on March 18, 2026
By Fiscal Year, Millions of Dollars		2026	2026-2031	2026-2036
Direct Spending (Outlays)		*	56	127
Revenues		0	0	0
Increase or Decrease (-) in the Deficit		*	56	127
Spending Subject to Appropriation (Outlays)		0	0	0
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037?	< $2.5 billion	Statutory pay-as-you-go procedures apply?		Yes
	< $2.5 billion	Mandate Effects
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037?	< $5 billion	Contains intergovernmental mandate?		No
	< $5 billion	Contains private-sector mandate?		No
* = between zero and $500,000.
The bill would Allow veterans awarded the Purple Heart after separating from the armed forces to transfer Post-9/11 GI Bill benefits to their dependents
Estimated budgetary effects would mainly stem from Increasing the use of Post-9/11 GI Bill benefits Areas of significant uncertainty include Estimating the number of veterans who have been or will be awarded the Purple Heart after separating from the armed forces

Bill Summary

S. 342 would allow veterans who are awarded the Purple Heart after separating from the armed forces to transfer their Post-9/11 GI Bill education benefits to their dependents. Those benefits are administered by the Department of Veterans Affairs (VA).

Estimated Federal Cost

The costs of VA education benefits are paid from mandatory appropriations and thus are reflected in the budget as direct spending. The estimated budgetary effects of S. 342 are shown in Table 1. The costs of the legislation fall within budget function 700 (veterans benefits and services).

Table 1. Estimated Budgetary Effects of S. 342
	By Fiscal Year, Millions of Dollars
	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	2026-2031	2026-2036
	Increases in Direct Spending
Estimated Outlays	*	7	12	12	12	13	13	14	14	15	15	56	127
* = less than $500,000, budget authority is equal to outlays.

Basis of Estimate

For this estimate, CBO assumes that S. 342 will be enacted in fiscal year 2026 and that provisions will take effect soon after enactment. CBO also estimates that outlays will follow historical spending patterns for the Post-9/11 GI Bill.

Direct Spending

S. 342 would allow veterans who are awarded the Purple Heart for service on or after September 11, 2001, and receive the award after separating from the armed forces, to transfer their Post-9/11 GI Bill benefits to eligible dependents. VA would transfer such benefits evenly among eligible dependents if the veteran is deceased. (The Purple Heart is awarded to current or former military personnel who have been wounded or killed in action against an enemy of the United States.)

Members of the armed forces who serve at least 30 days on active duty are eligible for benefits under the Post-9/11 GI Bill, which provides up to 36 months of benefit payments to or on behalf of people who pursue approved education or training programs. The amount of the benefits depends on the duration of active-duty service; full benefits are paid for those who served for at least 36 months or for 30 continuous days if discharged with a service-connected disability. Benefits are reduced for shorter periods of service. VA pays an amount equivalent to in-state tuition and fees at a public postsecondary institution annually or up to $29,921 for the 2025-2026 academic year for a private or foreign institution. Other benefits include a monthly housing allowance (which averages $2,338) for students enrolled more than half-time and a stipend of up to $1,000 each year for books and supplies. Service members who serve at least six years and agree to serve another four years may be approved to transfer benefits to their spouse or children.

Currently, a person must be serving as a member of a uniformed service to transfer benefits to dependents. In CBO’s estimation, allowing certain veterans who have already separated to transfer benefits would increase the number of people using those benefits because some of those benefits would not have been used by the veteran.

On the basis of data from VA on the use of education benefits, from the Department of Defense on Purple Heart awards, and from the Census Bureau on the composition of veterans’ families, CBO expects that, if the bill is enacted, the dependents of about 200 veterans would begin using the Post-9/11 GI Bill each year. CBO estimates that those dependents would use a combined three academic years of benefits per veteran and that their annual benefit would average $22,700. In total, those additional benefits would amount to $127 million over the 2026-2036 period.

Uncertainty

A significant source of uncertainty for CBO’s estimate involves the number of veterans who, after separating from the armed forces, have been or will be awarded the Purple Heart for service since September 11, 2001. If that number is higher or lower than projected, the cost of the bill could differ significantly from the estimated amounts.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 1.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting S. 342 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2037.

CBO estimates that enacting S. 342 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2037.