S. 649, Guard and Reserve GI Bill Parity Act of 2026

Bill Summary

S. 649 would credit time spent on certain duty statuses in the reserve components of the armed forces toward entitlement for education benefits under the Post-9/11 GI Bill, which is administered by the Department of Veterans Affairs (VA).

Estimated Federal Cost

The costs of the GI Bill are paid from mandatory appropriations and thus are reflected in the budget as direct spending. The estimated budgetary effects of S. 649 are shown in Table 1. The costs of the legislation fall within budget function 700 (veterans benefits and services).

Basis of Estimate

For this estimate, CBO assumes that S. 649 will be enacted in fiscal year 2026 and that provisions will take effect one year after enactment. CBO also estimates that outlays will follow historical spending patterns for Post-9/11 GI Bill benefits.

Direct Spending

S. 649 would count certain reserve statuses toward entitlement for benefits under the Post-9/11 GI Bill. Under current law, 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. The Post-9/11 GI Bill 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 for books and supplies of up to $1,000 each year. 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.

Beginning a year after enactment of S. 649, entitlement for Post-9/11 GI Bill benefits would take into account certain types of reserve-component duty that are not counted under current law. Those duties include the two weeks of annual training and monthly weekend drills that are required for nearly all members of the military’s reserve component. (The reserve component consists of the federal reserves and the National Guard; time spent on those duties before the effective date would not be counted.)

By counting the additional time spent on those duties, S. 649 would increase benefit amounts for some people who will use benefits under current law. In addition, because the amounts would be larger than they are under current law, CBO anticipates that the number of people who would use their benefits also would increase. The bill also would make some reservists eligible for benefits who will not qualify under current law. On the basis of data from the Department of Defense on separations and duty statuses, CBO estimates that members of the reserve components would accrue about seven more months of service toward entitlement for Post-9/11 GI Bill benefits, on average.

Using information from VA, CBO estimates that the additional time counted would increase annual benefits, on average, by about $3,000 for each of the roughly 13,300 beneficiaries who use reduced benefits each year under current law. In addition, roughly 2,000 people each year who are eligible for benefits but will not use them under current law would use the larger benefit amounts under the bill, at an average annual cost of about $17,500 per beneficiary. Lastly, CBO estimates that, of those who would be eligible for benefits solely because of their full-time duty and annual training, roughly 7,800 would use the benefits each year, at an average annual cost of about $11,400 each.

CBO estimates that the increase in benefits paid under S. 649 would total $1.5 billion over the 2026-2036 period.

Uncertainty

A significant source of uncertainty for CBO’s estimate involves the number of reservists who would earn additional Post-9/11 GI Bill benefits as a result of time spent on the duties specified in the bill. 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. 649 would 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. 649 would increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2037.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Estimate Prepared By

Federal Costs: Paul B.A. Holland

Mandates: Brandon Lever

Estimate Reviewed By

David Newman
Chief, Defense, International Affairs, and Veterans’ Affairs Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis

Estimate Approved By

Phillip L. Swagel

Director, Congressional Budget Office