H.R. 1391: Student Veteran Benefit Restoration Act of 2025 (119th Congress) Bill Summary

This bill, known as the Student Veteran Benefit Restoration Act of 2025, aims to amend current law regarding educational benefits for veterans who have been misled or defrauded by educational institutions. Here’s a summary of its key components:

Restoration of Educational Benefits

The bill provides that veterans who were defrauded by educational institutions can have their educational assistance benefits restored. This means that if a veteran attended a school during certain problematic periods, they will not have those times counted against their eligibility for benefits. Specifically, the bill covers several cases:

If the institution was not approved by a relevant authority during the time the veteran was enrolled.
If the institution or its owner was found in violation of certain laws during that time.
If a court has determined that the institution was guilty of fraud.
If the institution was closed due to fraud or legal violations.
If the institution engaged in fraudulent practices and then closed down.

Requirements for Educational Institutions

Educational institutions that receive educational assistance must agree to repay funds to the federal government if it is determined that they have defrauded veterans. Specifically, if the Secretary of Veterans Affairs restores a portion of a veteran's entitlement to benefits, the institution must return an equivalent amount of funds received under those benefits.

Financial Accountability

For institutions found guilty of fraud, the Secretary can seek repayment of all educational assistance funds received through the Educational Assistance programs that were fraudulently obtained. This ensures that institutions cannot profit from fraudulent activities.

Establishment of Appeals Process

The bill requires the Secretary to create a process for educational institutions to appeal findings related to their obligations to repay funds. This will allow them to contest any decisions made under the new provisions of the law.

Definitions

To clarify the terms used in the bill:

Covered educational assistance: This refers to the various educational benefits available to veterans under specific chapters of United States Code.
Covered individual: This includes veterans or others who utilize the educational assistance to pursue educational programs.
Fraud: This term encompasses any acts or omissions that are false, misleading, or deceptive related to the educational institution's practices.

Implementation and Enforcement

The provisions of this bill are intended to provide a mechanism for accountability in the education sector regarding veterans' benefits, ensuring that veterans who have fallen victim to fraudulent institutions are supported and that those institutions are held responsible for their actions.