HR6011-119

What This Bill Does

The VA Work-Study Improvement Act changes the VA work-study program under 38 U.S.C. 3485. It adds a broad qualifying activity category for work at a State or local government agency or nonprofit organization that directly or indirectly benefits veterans or Armed Forces members. It rewrites the applicable hourly minimum wage definition so the wage floor is the highest of the Federal GS/Federal Wage System minimum rate, the State minimum wage where services are performed, or the local minimum wage where services are performed. VA must ensure participants can electronically record hours and supervisors can electronically approve them. VA must publish annual information on qualifying work-study activities, including number of participants, demographics, activity descriptions, wages paid, hours worked, and participating educational institutions. The changes apply to work-study allowance payments made on or after January 1, 2028.

Who Benefits and How

Veterans and service members in VA work-study benefit because qualifying placements expand and wage floors reflect the highest applicable Federal, State, or local minimum wage. State and local government agencies benefit because they can host VA work-study activities that benefit veterans or service members. Nonprofit organizations serving veterans or service members benefit because they can become qualifying work-study placement sites. Congress, students, and the public benefit from annual VA data on participation, demographics, activities, wages, hours, and educational institutions.

Who Bears the Burden and How

VA administrators must update qualifying activity rules, wage calculations, electronic timekeeping, supervisor approvals, and annual public reporting. Participating supervisors must electronically approve work-study hours. Educational institutions and placement organizations may need to coordinate with VA on reporting and electronic records. Federal taxpayers may bear higher allowance costs if wage floors or participation increase.

Key Provisions

• Adds State or local government agency and nonprofit work benefiting veterans or service members as qualifying work-study activity.
• Sets the applicable hourly minimum wage as the highest of Federal, State, or local minimum wages.
• Requires electronic recording of participant hours and electronic supervisor approval.
• Requires annual VA publication of participation, demographic, activity, wage, hour, and educational institution data.
• Applies changes to VA work-study allowance payments on or after January 1, 2028.