View Rule

VA, as authorized under the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020, amends its regulations to establish the Veteran Transitional Assistance Grant Program (VTAGP). VA will establish grant application procedures and evaluative criteria for determining whether to issue funding to eligible organizations providing transition services to members of the Armed Forces who are separated, retired, or discharged, as well as their spouses.

Statement of Need:

The Department of Veterans Affairs (VA) has determined this rulemaking is necessary, in accordance with authority established by Public Law (Pub. L.) 116-315 4304 and 38 U.S.C. 501, 512 to implement Public Law 116315 4304, the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020 (January 5, 2021). VA proposes to amend title 38 Pensions, Bonuses, and Veterans’ Relief by adding part 80 and new sections 80.1 through 80.17 to the Code of Federal Regulations (CFR) to implement this new grant authority.

Summary of the Legal Basis:

VA proposes regulations to establish the Veteran and Spouse Transitional Assistance Grant Program (VSTAGP). VA will establish grant application procedures and evaluative criteria for determining whether to issue funding to eligible organizations providing transition services to members of the Armed Forces who are separated, retired, or discharged, as well as their spouses.

Alternatives:

VA discussed how to implement provisions of 4304 of Public Law 116-315. A rulemaking is the preferred option as VA grant programs have historically been established utilizing the rulemaking process. If this regulation were not enacted, VA would struggle to implement the mandates put forth in Public Law 116-315 with current available resources and therefore, the agency would not be in compliance with the law. Alternatively, participants would continue to access existing transition services that may limit services to Veterans as defined in 38 U.S.C. 101(2). VA also considered an alternative title to this rulemaking, however after discussions with external partners it was determined to include the term spouse in the title. VSTAGP intends to provide transition services to members of the Armed Forces who are separated, retired, or discharged from the Armed Forces, and spouses of such members, by identifying employment barriers and developing individualized employment plans to overcome barriers. The program will also link participants to necessary support services. Also, a rulemaking will notify the public and interested parties of VA’s new authority and allow for notice and comment. Public Law 116-315 requires grant recipients to provide matching funding from non-Federal sources that are at least equal to Federal grant funds awarded by VA.

Anticipated Costs and Benefits:

Each year, approximately 200,000 men and women leave the U.S. military service and return to their lives as civilians, a process known as the military-to-civilian transition. This rulemaking benefits former Service members who are discharged, retired, or separated, and their spouses (referred to as participants), by establishing a grants program focused on improving transition services. Transition services would include resume assistance, interview training, job recruitment training and related services that would result in a successful transition as determined by the Secretary. Related services would include, but are not limited to, employment placement services, employment education and/or training and employment referrals. VA has determined there are costs and transfers associated with this rulemaking. The total regulatory budget impact associated with this rulemaking is estimated to be $6.9 million in FY 2024 and $38.3 million over 5 years as reflected in Table 1 below. Costs associated with this rulemaking are estimated at $1.9 million in FY 2024 and $13.3 million over 5 years to include an information technology (IT) solution to manage grants. The net transfers for the creation of VSTAGP are $5 million for FY 2024 and $25 million over 5 years.

Risks:

None.