What is the “GI Bill”? 

The GI Bill, formally known as the Servicemen's Readjustment Act of 1944, is a series of laws offering educational and other benefits to veterans who served in the United States military. It's considered a cornerstone of veteran support programs in the US. The original GI Bill was enacted after World War II to help veterans readjust to civilian life. It provided benefits for education, housing, and business loans. There have been several iterations of the GI Bill since then, with the latest significant changes implemented in the Post-9/11 GI Bill of 2008.

Statistically, it's estimated that approximately 7.8 million World War II veterans took advantage of the educational benefits provided by the GI Bill. This resulted in a significant increase in college enrollment, with nearly half of the 15 million veterans returning from World War II participating in some form of education or training under the GI Bill. Moreover, the GI Bill's impact extended beyond education, with over 2 million veterans utilizing the home loan benefits to purchase homes, and millions more benefiting from vocational training and employment assistance programs. The GI Bill played a crucial role in fostering economic growth, social mobility, and the development of the American middle class in the post-war era.

The VA Home Loan Guaranty Program is the only provision of the original GI Bill that is still in force. Between the end of World War II and 1966, one-fifth of all single-family residences built were financed by the GI Bill for either World War II or Korean War Veterans. From 1944 through December 1993, VA guaranteed 13.9 million home loans valued at more than $433.1 billion.

Eligible loan guaranty users are now able to negotiate loan terms, including the interest rate, which helps VA loan participants to compete better in the housing market. The loan guaranty program no longer has a terminating date and can be used by any Veteran who served after Sept. 16, 1940, as well as men and women on active duty, surviving spouses and reservists.

To assist the Veteran between discharge and reemployment, the 1944 GI Bill also provided unemployment benefits of $20 per week, for a maximum of 52 weeks. It was a lesser amount than the unemployment benefits available to non-veterans. This assistance avoided a repetition of the World War I demobilization, when unemployed Veterans were reduced to relying on charities for food and shelter. Critics dubbed the benefit the “52-20 Club” and predicted most Veterans would avoid jobs for the 52 weeks that the checks were available. However, only a portion of Veterans were paid the maximum amount available. Less than one-fifth of the potential benefits were claimed, and only one out of 19 Veterans exhausted the full 52 weeks of checks.

In 1945, General Omar Bradley took the reins at VA and steered its transformation into a modern organization. In 1946, Public Law 293 established the Department of Medicine and Surgery within VA, along with numerous other programs like the VA Voluntary Service. The law enabled VA to recruit and retain top medical personnel by modifying the civil service system. When Bradley left in 1948, there were 125 VA hospitals.

The VA was elevated to a cabinet-level executive department by President Ronald Reagan in October 1988. The change took effect March 15, 1989, and administrative changes occurred at all levels. President George H. W. Bush hailed the creation of the new Department, saying, “There is only one place for the Veterans of America, in the Cabinet Room, at the table with the President of the United States of America.” The Veterans Administration was then renamed the Department of Veterans Affairs, and continued to be known as VA.

VA’s Department of Medicine and Surgery, established in 1946, was re-designated as the Veterans Health Services and Research Administration at that time, though on May 7, 1991, the name was changed to the Veterans Health Administration (VHA). The GI Bill has helped millions of veterans pursue educational opportunities and build successful careers. It remains a significant benefit program for veterans of the US military.

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