Employment for Veterans:
Trends and Programs
Benjamin Collins, Coordinator
Analyst in Labor Policy
Robert Jay Dilger
Senior Specialist in American National Government
Cassandria Dortch
Analyst in Education Policy
Lawrence Kapp
Specialist in Military Manpower Policy
Sean Lowry
Analyst in Public Finance
Libby Perl
Specialist in Housing Policy
February 20, 2014
Congressional Research Service
7-5700
www.crs.gov
R42790
CRS Report for Congress
Pr
epared for Members and Committees of Congress
Employment for Veterans: Trends and Programs
Summary
Veterans’ employment outcomes in the civilian labor market are an issue of ongoing
congressional interest. This report offers introductory data on veterans’ performance in the
civilian labor market as well as a discussion of veteran-targeted federal programs that provide
employment-related benefits and services.
According to federal data, the unemployment rate for veterans who served after September 2001
is higher than the unemployment rate for nonveterans. Conversely, the unemployment rate for
veterans from prior service periods (a much larger population than post-9/11 veterans) is lower
than the nonveteran unemployment rate. The varied demographic factors of each of these
populations likely contribute to these variations, though their degree of influence is unclear.
There are a number of federal programs to assist veterans in developing job skills and securing
civilian employment. Broadly speaking, these programs can be divided into (1) general veterans’
programs, (2) programs that target veterans with service-connected disabilities, and (3)
competitive grant programs that offer supplemental services but may not be available to veterans
in all areas.
General veterans’ programs begin with transition programs that are provided to exiting members
of the Armed Forces. These transition programs cover a variety of topics including information
on identifying occupations that align with military skills and specializations, conducting job
searches, applying for employment, and navigating veterans’ benefits. One of the most common
veterans’ benefits is educational funding through the GI Bill. The GI Bill programs typically
provide funding for tuition, fees, housing, books, and other educational costs while the veteran is
enrolled.
Veterans who are seeking employment without obtaining additional training may receive job
search assistance and other services from Local Veterans Employment Representatives (LVER).
Veterans who wish to pursue employment in the federal government are assisted by several
policies that give them preference in the competitive hiring process or, in some cases, allow them
to forego the competitive process and be appointed directly. Veterans who wish to start a small
business may receive loans and technical assistance from the Small Business Administration
(SBA).
Veterans with service-connected disabilities who have obstacles to employment may be assisted
by the Vocational Rehabilitation and Employment (VR&E) program. This program provides
assistance in identifying an occupation that is consistent with the veterans’ skills and interests and
providing the services (including educational services) necessary to achieve that outcome.
Disabled veterans and other veterans with multiple barriers to employment can receive assistance
from the Disabled Veterans Outreach Program (DVOP), which funds personnel positions to
provide assistance in local labor markets.
In addition to these nationwide programs, the federal government also funds competitive grant
programs for state, local, and private entities to provide employment-oriented services to
veterans. These include the Homeless Veterans Reintegration Program, which provides
employment services in conjunction with other supportive services and Veterans Upward Bound
(VUB), which prepares educationally disadvantaged veterans for postsecondary coursework.
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Employment for Veterans: Trends and Programs
Contents
Background ...................................................................................................................................... 1
Employment Trends Among Veterans ............................................................................................. 1
Employment-Related Programs for Veterans ................................................................................... 4
General Veterans’ Employment and Training Programs ............................................................ 7
Transition Programs for Separating Members of the Armed Forces ................................... 7
GI Bill Educational Assistance Programs ........................................................................... 9
Veterans Retraining Assistance Program (VRAP; not currently accepting
applications) ................................................................................................................... 10
Local Veterans Employment Representatives (LVER) Employment Services ................. 10
Priority of Service in DOL-Funded Training and Employment Service Programs ........... 11
Federal Employment ......................................................................................................... 11
Small Business Administration Programs ......................................................................... 13
Programs for Veterans with Service-Connected Disabilities ................................................... 14
Vocational Rehabilitation and Employment (VR&E) ....................................................... 14
Disabled Veterans Outreach Program (DVOP) Employment Services ............................. 15
Components of General Programs that Target Disabled Veterans ..................................... 15
Veteran-Targeted Competitive Grant Programs ....................................................................... 15
Homeless Veterans Reintegration Program (HVRP) ......................................................... 16
TRIO Veterans Upward Bound (VUB) ............................................................................. 16
Veterans Workforce Investment Program (VWIP; not funded since FY2012) ................. 16
Recently Expired Programs ..................................................................................................... 17
Work Opportunity Tax Credit (WOTC) for Employers .................................................... 17
Figures
Figure 1. Unemployment Rates by Veteran Status .......................................................................... 4
Tables
Table 1. Employment Outcomes by Veteran Status, 2013 Annual Average..................................... 2
Table 2. Employment-Related Programs, Benefits, and Services for Veterans ............................... 5
Contacts
Author Contact Information........................................................................................................... 18
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Employment for Veterans: Trends and Programs
Background
Veterans’ employment outcomes in the civilian sector are an issue of ongoing congressional
interest. A number of programs currently exist to assist veterans in obtaining or training for
civilian employment. There is regular congressional debate about expanding or otherwise
amending these programs to better serve veterans.
This report discusses veterans’ employment trends and programs. The first section presents data
on veterans’ employment outcomes, identifying recent trends, and discussing issues to consider
when interpreting veterans’ employment data. The following sections present brief discussions of
existing programs that provide employment-related services to veterans. These services are
divided into (1) general programs that are broadly available to veterans, (2) programs that target
veterans with service-connected disabilities, and (3) competitive grant programs that provide
additional employment-related services to veterans but may be limited in scope or availability.
Notably, this report does not attempt to provide an exhaustive list of all programs that may assist
veterans in the labor market nor does it attempt to provide comprehensive information on the
programs it discusses. Instead, it aims to provide a broad overview of the largest employment-
related programs as well as other initiatives that may inform future policy. For detailed
information on each program, readers are encouraged to refer to the CRS reports or other sources
that are referenced in each section.1
Employment Trends Among Veterans2
Estimates of veterans’ employment and unemployment are published by the Bureau of Labor
Statistics (BLS). The estimates are derived from the Current Population Survey (CPS), a monthly
household survey in which respondents may self-identify as veterans. Veterans’ employment
outcomes are frequently compared to the employment outcomes of nonveterans to establish
veterans’ relative performance in the labor market.
This section will divide workers into three groups: (1) Gulf War Era II veterans who served at any
point after September 2001, (2) veterans from prior service periods, and (3) nonveterans.3 Since
these populations vary in many characteristics that may influence employment outcomes,
comparisons between these groups should be conducted with caution.
Recent employment outcomes for veterans and non-veterans are presented in Table 1. As the
table shows, the unemployment rate for Gulf War Era II (GWII) veterans is higher than the
unemployment rates of both veterans from other service periods as well as nonveterans. GWII
1 References also include a CRS analyst to contact about the topic. In cases where a topic does not list a contact,
inquiries should be directed to the coordinator of this report.
2 This section was prepared by Benjamin Collins, Analyst in Labor Policy, bcollins@crs.loc.gov, 7-7382.
3 The designation of Gulf War Era II veterans follows the definition set by the Bureau of Labor Statistics. Data for
veterans from other periods were calculated by subtracting Gulf War Era II veterans data from total veterans data.
Nonveterans are limited to persons age 18 and over.
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veterans, however, constitute only about one-fifth of the veteran labor force (about 2.3 million of
just under 11 million).
Table 1. Employment Outcomes by Veteran Status, 2013 Annual Average
Population
Labor Force
Unemployed
Unemployment
(thousands)
(thousands)
(thousands)
Rate
All Veterans
21,397
10,975
722
6.6%
Gulf War Era II
2,837 2,286 205
9.0%
Veterans
Other Veterans
18,560
8,689
517
6.0%
Nonveterans 215,339
142,391
10,202 7.2%
Source: Bureau of Labor Statistics’ Employment Situation historical data for Table A-5, generated at
http://www.bls.gov/webapps/legacy/cpsatab5.htm.
Notes: Gulf War Era II veterans are those who served any time after September 2001. Nonveterans exclude
persons under age 18.
Several factors that are not observable in Table 1 should also be considered when interpreting the
employment data in the table.4
• The GWII veteran labor force is younger than the nonveteran labor force. About
60% of GWII veterans in the labor force are under the age of 35, compared to
about 36% of nonveterans in the labor force. Since younger workers generally
have higher unemployment rates than older workers, GWII veterans’ relative
youth may influence their unemployment rate.5
• Veterans have a different educational distribution than nonveterans. Among
those in the labor force, only 1% of GWII veterans and 3% of other veterans have
less than a high school education, compared to 9% of nonveterans. Conversely,
the proportion of college graduates among the labor forces of GWII veterans
(33%) and other veterans (30%) are slightly lower than nonveterans (36%).6 The
effect of this different educational distribution on veterans’ employment
outcomes is unclear.
• Disability issues. In 2012, approximately 14% of all veterans and 28% of GWII
veterans reported a service-connected disability.7 Among veterans of all service
periods, there was little difference between veterans with a service-connected
disability and veterans without a service-connected disability in their respective
4 Data on veterans’ characteristics are 2012 annual averages and therefore not directly comparable to the data in Table
1. Data on veterans’ characteristics are from Bureau of Labor Statistics, “Employment Situation of Veterans—2012,”
March 20, 2013, http://www.bls.gov/news.release/vet.htm. Monthly data on veterans’ characteristics are not published
by BLS. Demographic data for 2013, which will be comparable to data in Table 1, will be released in March 2014.
5 Ibid. Table 2A.
6 Ibid. Table 3. Data only consider veterans age 25 and over. About 11% of the GWII veterans in the labor force are
under the age of 25.
7 Ibid. Table 6. Approximately 17% of veterans did not report their disability status and were excluded from this
analysis.
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labor force participation rates (47% v. 52%) and unemployment rates (6.5% v.
7.1%). Among GWII veterans, veterans with a service-connected disability were
less likely to participate in the labor force (70% v. 87%), though GWII veterans
with service-connected disabilities had a lower unemployment rate than veterans
from the same era who did not report a service-connected disability (8.0% v.
12.5%).8 Comparable data on employment outcomes for nonveterans with
disabilities were not available.
• Categorization of post-military transition period. Recent veterans who have not
yet secured post-service employment are categorized as unemployed and entitled
to unemployment insurance.9 The classification of this transition period may
increase GWII veterans’ unemployment rate.
Figure 1 presents recent historical data on unemployment rates for GWII veterans, other
veterans, and nonveterans.10 Several trends emerge over the approximately five-year reference
period:
• The unemployment rate for GWII veterans is typically above that of other
veterans and nonveterans. The average unemployment rate for the period in the
graph was 10.3% among GWII veterans, 7.1% among other veterans, and 8.3%
among nonveterans. As noted previously, differences in the characteristics of
each population may influence their respective unemployment rates.
• The unemployment rate for GWII veterans is more dynamic than the
unemployment rate for other populations. While using a 12-month moving
average somewhat controls for large variations in monthly estimates, changes in
the GWII veterans’ unemployment rate are still more dynamic than the changes
for other populations. This dynamism is likely due to small sample sizes of GWII
veterans in the surveys rather than abrupt changes in this population’s
unemployment rate.
• The unemployment rate for each group trends similarly over the reference period.
While the dynamic nature of the GWII veterans’ unemployment rate somewhat
masks this trend, each group’s unemployment rate followed a generally upward
trend early in the period covered by the graph and then declined during the later
period. The similarity of these trends underscores the influence of the broader
labor market on veterans’ employment outcomes.
8 Ibid. Table 6.
9 For more information on unemployment insurance for former members of the armed services, see CRS Report
RS22440, Unemployment Compensation (Insurance) and Military Service, by Julie M. Whittaker.
10 The reference period was determined by the earliest availability of monthly data for GWII veterans.
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Figure 1. Unemployment Rates by Veteran Status
12-month moving averages
Source: 12-month moving average calculated by CRS based on monthly data from the Bureau of Labor
Statistics’ Employment Situation historical data for Table A-5, generated at http://www.bls.gov/webapps/legacy/
cpsatab5.htm.
Notes: Data are displayed as the final month of the 12-month moving average. For example, September 2009 is
the 12-month period ending in September 2009. Gulf War Era II veterans are those who served any time after
September 2001. Nonveterans exclude persons under age 18.
Employment-Related Programs for Veterans
This report highlights the primary employment and training services programs that are authorized
to improve veterans’ employment outcomes. It does not, however, attempt to present a
comprehensive list of employment-related programs for veterans. This report emphasizes
programs available to veterans of active duty and generally omits discussion of programs that
target former members of the military reserve. It also omits discussions of programs or program
components that provide benefits to eligible family members of veterans. In some cases,
programs may have stopped accepting applications or are not currently funded. When this is the
case, it is noted in the ensuing discussion. The Work Opportunity Tax Credit (WOTC), an
incentive for employers that hired qualified veterans, expired at the end of calendar year 2013.
The WOTC is discussed in the final section of this report.
The veteran-targeted programs in this report are presented in Table 2. Each is discussed in greater
detail in the subsequent text. These programs are grouped into three categories:
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• Programs that are broadly available to veterans. While they may have some
eligibility limitations, these programs are generally available to veterans in all
geographic locations, with or without service-connected disabilities;
• Programs that target veterans with service-connected disabilities. These
programs include the Vocational Rehabilitation and Employment program as well
specialized versions of some generally available veterans programs; and
• Competitive grant programs. These programs fund employment-related services
for veterans but may be limited in scope or geographic availability.
Table 2. Employment-Related Programs, Benefits, and Services for Veterans
FY2013
Program Description
Funding
General Programs, Benefits, and Services for Veterans
Transition Assistance Program
TAP provides services to exiting service members
$14 million from
(TAP) / Transition Goals Plans
related to obtaining civilian employment and otherwise the Department
Success (Transition GPS)
transitioning to civilian life. The Transition GPS
of Labor (DOL);
curriculum is currently being implemented within TAP. $122 million from
Transition GPS is mandatory for nearly all exiting
the Department
service members with expanded services over a five-
of Defense
day curriculum.
(DOD)a
Educational Benefits (GI Bill)
GI Bill programs generally provide funds for
$10.4 billion
educational costs as well as living expenses while
(estimated)b
enrolled in educational programs. The most-used
program for recent veterans is the Post-9/11 GI Bill.
Veterans Retraining Assistance
VRAP provides educational benefits for unemployed
$1.1 billion
Program (VRAP; no longer
veterans between the ages of 35 and 60 who are not
(estimated)c
accepting applications)
eligible for a GI Bill or other VA educational program.
VRAP benefits are limited to 12 months.
Local Veterans Employment
LVER funds state personnel positions that assist
$161 million (also
Representatives (LVER)
veterans in securing employment in their local area.
funds DVOP)
LVER activities include but are not limited to outreach
to local employers and referral to training or
education benefits, LVER is funded out of Jobs for
Veterans State Grant (JVSG) funds.
Federal Hiring Preferences and
Veterans receive preference when applying for nearly
not applicable
Special Hiring Authorities
all competitively-hired federal employment. There are
also special hiring authorities in which qualified
veterans may be directly appointed to a position that
would otherwise be competitively hired.
Priority of Service in DOL training
Veterans receive priority of service for any DOL-
not applicable
programs
funded training or employment service program that
they are eligible for as a member of the general public.
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FY2013
Program Description
Funding
Small Business Administration
SBA has a variety of programs to assist veterans with
$2.5 million for
(SBA) Programs
developing and managing a smal business, financing a
Veterans’
smal business, and acquiring federal contracts.
Business
Outreach Centers
and $7 million for
the “Boots to
Business” training
initiative; veterans
are also eligible to
participate in
other SBA
training and
lending programs
Programs for Veterans with Service-Connected Disabilities
Vocational Rehabilitation and
VR&E provides funding for training, subsistence, and
$921 million
Employment (VR&E)
other expenses to support veterans with service-
(estimated)d
connected disabilities to pursue an employment
outcome or independent living course.
Disabled Veterans Outreach
DVOP funds state personnel positions that provide
$161 million (also
Program (DVOP)
intensive employment services to disabled and other
funds LVER)
high-need veterans.
Specialized versions of other
TAP, federal hiring preference and WOTC have
Included in
programs
specialized components that target veterans with
general program
service-connected disabilities.
costs
Competitive Grant Programs that Provide Supplemental Services
Homeless Veterans Reintegration
HVRP provides competitive grants to organizations
$36 million
Program (HVRP)
that provide employment assistance and other
supportive services to homeless veterans.
Veterans Upward Bound (VUB)
VUB provides services such as tutoring and application
$13 million
assistance to aid veterans in preparing for a program
of postsecondary education
Veterans Workforce Investment
VWIP provides competitive grants to public and
No funds
Program
nonprofit organizations to provide training and/or
appropriated in
employment services to veterans.
FY2013.e
Source: Sources are listed in each program’s section of this report.
a. The VA also funds a portion of TAP activities, though the FY2013 funding level was not available. In FY2012,
the VA’s portion of TAP activities was $9 million.
b. Program is an entitlement. FY2013 costs are estimates for Post-9/11 GI Bill and Montgomery GI Bill-Active
Duty only and do not include administrative expenses.
c. Estimate assumes program enrol ment reaches statutory maximum. VRAP is a temporary program that was
authorized for the entirety of FY2013. The program stopped accepting applications after October 1, 2013,
and will stop paying benefits after March 31, 2014.
d. Program is an entitlement. FY2013 costs are estimates and include benefits and subsistence allowances; they
do not include administrative and counseling expenses.
e. $14.6 million was appropriated for VWIP in FY2012. The program remains authorized under section 168 of
the Workforce Investment Act.
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General Veterans’ Employment and Training Programs
The programs discussed in this section are available to most veterans of active duty. In the
interest of simplicity, this report generally does not present detailed eligibility criteria for each
program and benefit, though it does attempt to note eligibility requirements that categorically
exclude large numbers of veterans (such as the eligibility window following discharge for GI Bill
benefits). This report may omit requirements that would exclude relatively few veterans, such as
most programs’ exclusion of veterans who were dishonorably discharged.11 The specific
eligibility criteria for each program will usually be available in the external sources that are
referenced in the report section that discusses the program.
Transition Programs for Separating Members of the Armed Forces12
In 1990, as the post-Cold War drawdown was beginning, Congress authorized a set of benefits
and services to assist military personnel in the transition to civilian life.13 Some of these
authorities continued in effect after the drawdown was complete and formed the basis of the
Transition Assistance Program (TAP). TAP underwent substantial modification in 2012 and 2013,
with the introduction of a revamped curriculum known as Transition GPS.14 TAP and the new
Transition GPS curriculum are both described below.
Transition Assistance Program (TAP)
TAP provides pre-separation services and counseling on a number of transition-related topics to
separating members of the Armed Forces.15 In addition to guidance on broader transition issues
such as financial management and health care, TAP includes information on the following
employment issues as they relate to veterans:
• the correlation between military skills and civilian occupations;
• professional certifications, including licensing and apprenticeships;
• public and community service opportunities, including federal employment
opportunities and veterans’ hiring preferences (described in a subsequent section
of this report);
• self-employment and entrepreneurship, including veterans’ small business and
entrepreneurship programs; and
• education and training assistance, including use of veterans’ educational benefits
and other job training opportunities.
11 For a more detailed discussion of factors that may influence a former service member’s eligibility for veterans’
benefits, see CRS Report R42324, “Who is a Veteran?”—Basic Eligibility for Veterans’ Benefits, by Umar Moulta-Ali.
12 This section written by Lawrence Kapp, Specialist in Military Manpower Policy, lkapp@crs.loc.gov, 7-7609.
13 Codified at 10 U.S.C. 1141-1150.
14 Terri Cronk, “New Program Aims to Better Help Troops Transition to Civilian Life,” American Forces Press
Service, August 18, 2012, available at http://www.defnese.gov/news/newsarticle.aspx?id=117544.
15 Formerly, TAP also included a program called Disabled Transition Assistance Program (DTAP), which provided
individual instruction for disabled servicemembers regarding their job-readiness and special needs they might have as a
result of their disability, along with information on the VA’s Vocational Rehabilitation and employment services.
DTAP was incorporated into the VA benefits segment of the new Transition GPS curriculum in 2012.
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TAP services are provided at many military installations, often found in the military installation’s
career or family support offices. The Department of Defense (DOD), Department of Labor
(DOL), Department of Veterans Affairs (VA), and the Department of Homeland Security (DHS)
are each involved in conducting TAP.16 The curriculum for TAP underwent major revision in
2012. The redesigned curriculum is called Transition GPS, discussed below.
Transition GPS
Transition GPS is the name of the redesigned TAP curriculum brought about by the work of the
executive branch’s Veterans’ Employment Initiative Task Force and intended to conform with the
Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011.17 Among other changes, the
VOW Act made participation in TAP mandatory for nearly all separating military personnel and
required that each TAP participant receive “an individualized assessment of the various positions
of civilian employment in the private sector for which such member may be qualified” as a result
of their military training. These statutory changes took effect on November 21, 2012, one year
after the enactment of the VOW Act.
DOD introduced the Transition GPS pilot program at seven military bases in the summer of 2012,
and it is now conducted at major military installations across the country and overseas. It includes
a five-day core program that incorporates the elements of TAP described above into a redesigned
curriculum, which is intended to ensure that servicemembers are “career ready” when they leave
military service. The core curriculum includes the following modules: pre-separation counseling
(4 hours), VA benefits18 (6 hours), employment workshop (24 hours), financial planning (4
hours), resilient transition (1 hour), and a crosswalk between military and civilian skills that
includes a “skills gap” analysis (2 hours). Servicemembers are also required to develop an
individual transition plan, and participate in a “capstone event.” The capstone event verifies that
the servicemembers meet career readiness standards and have a viable individual transition plan.19
Some of the key differences between the “legacy” TAP curriculum and the new Transition GPS
curriculum include
• the five-day core curriculum is mandatory, not optional, for nearly all separating
servicemembers;
• class sizes are smaller than under the previous curriculum to provide individual
attention;
• the required individual transition plan is standardized and tied to the
servicemembers’ personal goals;
16 Memorandum of Understanding between the Department of Labor, Department of Defense, Department of Veterans
Affairs, and Department of Homeland Security, “Transition Assistance Program and Disabled Transition Assistance
Program,” signed September 19, 2006, available at http://www.dol.gov/vets/vpls/VPL%20Attachments/VPL%201-
08%20Attch%201%20-
%20Transition%20Assistance%20and%20Disabled%20Transition%20Assistance%20Programs%20Memorandum%20
of%20Understanding%20dated%20September%2019,%202007..pdf .
17 The VOW to Hire Heroes Act is Title II of P.L. 112-56. In addition to modifying TAP, the law had other provisions
related to veterans’ employment.
18 As part of the VA benefits briefing, participants are required to set up a VA benefits account online.
19 If a servicemember has not met the career readiness standards or created a viable transition plan, the capstone event
will ensure they are referred for appropriate training or remedial assistance.
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• successful completion is based on achieving “career readiness standards,” not
simply attendance;
• the program concludes with a capstone event, which verifies that each
servicemember meets career readiness standards and has a viable individual
transition plan; and
• in addition to the core curriculum, servicemembers are able to participate in
optional tracks for higher education, entrepreneurship, and technical training,
each of which last two days. Servicemembers can participate in all three optional
tracks if they so desire.
The “core” Transition GPS curriculum was implemented in November 2012. Implementation of
the optional tracks began in 2013 and should be fully implemented by March 2014.
GI Bill Educational Assistance Programs20
The VA administers several educational assistance programs for veterans (commonly known as
GI Bills) that are intended to avert unemployment, adjust veterans to civilian life, reward military
service, encourage recruitment and retention in the military, and make education affordable. VA
educational assistance payments are available for approved programs of education as well as
living expenses while enrolled.21
While there are several GI Bill programs, the vast majority of veterans who utilize education
benefits do so under the Post-9/11 GI Bill or the Montgomery GI Bill-Active Duty (MGIB-AD).
Both programs provide benefits for 36 months of full-time schooling or the equivalent in part-
time attendance.22 The Post-9/11 GI Bill provides separate payments for tuition and fees, supplies,
housing, and other costs. The maximum benefit for tuition and fees at a public institution of
higher learning is equal to in-state tuition and fees for that program of education. As of August 1,
2013, the maximum benefit for tuition and fees at a private or foreign institution is $19,198 per
academic year. The monthly housing allowance under the Post-9/11 GI Bill varies by
geographical location and ranges from $768 to $3,258.23 MGIB-AD provides a single monthly
payment to the veteran to cover both education and living expenses. As of October 1, 2013, the
maximum benefit under MGIB-AD is $1,648 per month.
Post 9/11 GI Bill benefits are typically available within 15 years of discharge or release from
active duty. MGIB-AD benefits (and most other GI Bill benefits) are generally available within
ten years. Notably, GI Bill benefits are not considered when calculating a student’s eligibility for
20 For more information on each of the GI Bills, see CRS Report R42785, GI Bills Enacted Prior to 2008 and Related
Veterans’ Educational Assistance Programs: A Primer, by Cassandria Dortch, and CRS Report R42755, The Post-9/11
Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill): Primer and Issues, by Cassandria Dortch.
21 Eligible educational programs include but are not limited to college courses, vocational programs, entrepreneurship
courses, apprenticeships, on-the-job training, and licensing or certification tests.
22 Benefits can be used in nonconsecutive months. For example, a veteran may use GI Bill benefits for four traditional
nine-month full-time academic years.
23 The lowest rate is in Alpena County, MI, and the highest rate is in New York City. Monthly housing allowances
under the Post-9/11 GI Bill equal the monthly basic allowance for housing for a member of the Armed Forces with
dependents in pay grade E-5 in the military housing area in which the veteran’s educational institution is located. Local
rates are available at http://www.defensetravel.dod.mil/Docs/perdiem/browse/Allowances/BAH/PDF/2012/2012-With-
Dependents-BAH-Rates.pdf.
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need-based Pell grants, meaning that a veteran who meets Pell grant criteria may receive both Pell
grants and GI Bill benefits.24 As an additional benefit, educational assistance received under a VA
education program (including subsistence or housing allowances for enrolled veterans) is not
subject to federal income tax.
In its FY2014 budget, the VA estimated that total FY2013 benefits for the Post-9/11 GI Bill and
Montgomery GI Bill-Active Duty were $10.4 billion.25
Veterans Retraining Assistance Program (VRAP; not currently accepting
applications)26
VRAP is a temporary program that provides training assistance to older unemployed veterans
who are no longer eligible for the GI Bill.27 The VA began accepting applications for VRAP
benefits on May 15, 2012, and beneficiaries were eligible to begin training July 1, 2012. As
required by statute, the VA stopped accepting VRAP applications after October 1, 2013, and is
scheduled to stop paying benefits after March 31, 2014.
VRAP provides up to 12 months of training benefits to unemployed veterans who are not eligible
for other VA education programs and are between the ages of 35 and 60.28 VRAP benefits are
limited to training at community colleges or technical schools in occupations that DOL has
identified as “high demand.”29 Monthly benefit levels are limited to the maximum amounts under
the MGIB-AD program (described in the previous section). While benefits are limited to 12
months, veterans may enroll in programs longer than 12 months. In cases where a program is less
than 12 months, benefits are limited to the duration of the program.
Local Veterans Employment Representatives (LVER) Employment Services
The LVER program provides formula grants to states to hire personnel that provide assistance to
veterans who are seeking employment.30 LVER staff provide employment services to veterans
and conduct outreach to local employers to develop employment opportunities for veterans.
Outreach activities might include advocacy efforts to local employers and workshops for veterans
seeking employment. LVER staff are familiar with a range of veteran services and may provide
referral to other benefits and services (such as education benefits under the GI Bill) that support
veterans seeking employment.
24 For more information on Pell Grants, see CRS Report R42446, Federal Pell Grant Program of the Higher Education
Act: How the Program Works, Recent Legislative Changes, and Current Issues, by Shannon M. Mahan.
25 FY2014 VA budget is available at http://www.va.gov/budget/products.asp.
26 For more information on the VRAP program, including current application procedures and current enrollment levels,
see http://benefits.va.gov/vow/education.htm.
27 VRAP was created by the VOW to Hire Heroes Act. See Section 211 of P.L. 112-56.
28 Veterans are ineligible for VRAP if they were discharged under dishonorable conditions, are receiving VA
compensation due to unemployability, or are enrolled in a federal or state job training program.
29 The VA has identified more than 200 occupations as eligible for VRAP benefits. See http://benefits.va.gov/vow/
docs/VRAP_High_Demand.pdf for the complete list.
30 LVER is codified at 38 U.S.C. 4104.
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Statute specifies that, “to the maximum extent possible,” states should hire veterans as LVER
personnel, with the highest preference given to veterans with service-connected disabilities who
are otherwise qualified for the position.31 LVER personnel work in conjunction with the One-Stop
delivery system, and are often physically stationed at One-Stop Career Centers, as established by
the Workforce Investment Act of 1998 (WIA; P.L. 105-220).32
The LVER program is part of the Jobs for Veterans State Grant (JVSG) program, which is
administered by the Veterans Employment and Training Service (VETS) of DOL.33 JVSG also
provides funds for the Disabled Veterans Outreach Program (DVOP), which provides services to
disabled and other high-need veterans and is described in a subsequent section of this report. In
FY2013, JVSG’s budget authority was approximately $161 million. JVSG is funded out of the
Employment Security Administration Account in the Unemployment Trust Fund.
Priority of Service in DOL-Funded Training and Employment
Service Programs
In addition to veteran-targeted programs, DOL administers a number of public programs to assist
individuals in training for and securing employment. These services include subsidized training
as well as employment services such as job search assistance and resume preparation. The Jobs
for Veterans Act of 2002 (P.L. 107-288) specifies that veterans will receive priority of service in
all DOL-funded training programs for which they are qualified.34 DOL has clarified that this
includes all services provided at One-Stop Career Centers (including employment services such
as job search assistance).35
In 2011, DOL launched a Gold Card initiative directed at Post-9/11 veterans. In addition to
priority in all training programs, the initiative also provides veterans with intensive employment
services such as job readiness assessments, career guidance, and referral to training through
federal or state programs. Qualified veterans may also receive six months of follow-up services
from a case manager.36
Federal Employment37
There are several programs and policies that provide a preference for veterans in obtaining
employment in the federal government. These policies and programs can either give veterans an
advantage in the competitive hiring process or, in some cases, allow a veteran to be appointed
without going through the competitive process.
31 See 38 U.S.C. 4104(c).
32 For more information on WIA and One-Stop Career Centers, see CRS Report R41135, The Workforce Investment
Act and the One-Stop Delivery System, by David H. Bradley.
33 More information on veteran-related initiatives administered the U.S. Department of Labor, including the JVSG
program, is available at http://www.dol.gov/vets/.
34 To receive priority of service, a veteran must meet the program’s eligibility criteria regarding age, employment
history, or other characteristics.
35 See 20 C.F.R. 1010.200-330.
36 More information on the Gold Card initiative is available at http://www.dol.gov/vets/goldcard.html.
37 For a more in-depth discussion of federal employment for veterans, see archived CRS Report RS22666, Veterans
Benefits: Federal Employment Assistance, by Christine Scott.
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Points Preference in Competitive Hiring
In the federal hiring process for competitive positions, candidates may be evaluated through a
system that assigns point values to relevant experience, skills, and education. Depending on the
specifics of their active military service, veterans may receive extra points added to their
numerical score.
A five-point preference is available to veterans who served after September 11, 2001.38 A five
point-preference is also available to veterans who served during specified wartimes or in
specified campaigns.39 A ten-point preference is available to veterans who either (1) have a
service-connected disability or (2) received a Purple Heart. The ten-point preference is available
to these veterans regardless of their period or location of service.
Special Hiring Authorities
There are several hiring programs that allow qualified veterans to be appointed to what would
otherwise be competitive federal positions without having to compete with the general public.
Typically, these programs allow an agency to hire a veteran in a shorter period of time than it
would take to fill the position through the competitive service process. To be eligible for these
special hiring authorities, a veteran must have been separated from the Armed Forces for less than
three years, have served in a qualified combat mission, or be disabled.40
Other Initiatives
In 2009, President Barack Obama issued Executive Order 13518, which aimed to “enhance
recruitment of and promote employment opportunities for veterans within the executive
branch[.]”41 The program established a Council on Veterans Employment that included 24
agencies and required each agency to develop an agency-specific plan and designate an office or
officer for promoting employment opportunities for veterans within the agency. The order also
established a website that offered veteran-specific information on obtaining federal employment
as well as contact information for the individual or office in each agency responsible for
promoting veterans’ employment within the agency.42
38 The service period under this criteria is set to end on the date prescribed by Presidential proclamation or law as the
last date of Operation Iraqi Freedom. As of this writing, no such proclamation or law has been issued.
39 Applicable dates and criteria are available from the Office of Personnel Management at http://www.opm.gov/
staffingportal/vetguide.asp#2When.
40 Full details on these hiring authorities is available from the Office of Personnel Management at http://www.opm.gov/
staffingportal/vetguide.asp#6.
41 The full text of the order, including a list of participating agencies, is available at http://www.gpo.gov/fdsys/pkg/FR-
2009-11-13/pdf/E9-27441.pdf.
42 See http://www.fedshirevets.gov/AgencyDirectory/index.aspx for a list of agency contacts.
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Small Business Administration Programs43
The Small Business Administration (SBA) has a variety of programs to assist veterans with
developing and managing a small business, financing a small business, and acquiring federal
contracts. Congressional interest in these programs has increased in recent years primarily due to
reports by veteran organizations that veterans were experiencing difficulty accessing the SBA’s
programs, especially the Patriot Express Pilot Loan Guaranty Program, as well as general interest
in facilitating the transition of veterans from military to civilian life.
The SBA currently provides management and technical assistance training services to veterans
through its various management and technical assistance training partners and responds to veteran
inquiries through its SBA district offices.44 The SBA’s Patriot Express Pilot Loan Guaranty
Program, which became operational in 2007, is a component of SBA’s larger 7(a) lending
program, available only to veterans, certain active military service people, and certain spouses.45
The loan proceeds can be used for expansion, renovation, new construction, the purchase of land
or buildings, the purchase of equipment, working capital, etc. The Patriot Express program differs
from the general 7(a) program in that it features streamlined documentation and processing
features, a lower loan limit (up to $500,000), and has a targeted SBA processing time of one
business day. As of September 30, 2013, the SBA had provided 9,507 Patriot Express loans
totaling $811.3 million since 2007. In FY2013, the SBA provided 1,019 Patriot Express loans
totaling $112.4 million.46
Also, on November 8, 2013, the SBA announced that it is waiving the upfront, one-time loan
guaranty fee for all veteran loans under the SBAExpress program from January 1, 2014, through
the end of FY2014. The SBAExpress program is similar to the SBA Patriot Express program in
that it has streamlined documentation and processing features. SBAExpress is available to both
veterans and non-veterans, and provides loans of up to $350,000. The SBA announced that the
SBAExpress program’s veteran fee waiver was part “of SBA’s broader efforts to make sure that
veterans have the tools they need to start and grow a business.”47
The SBA also assists veterans through its Military Reservist Economic Injury Disaster Loan
Program (MREIDL), which supplements its general, direct-loan disaster lending program.
MREIDL provides disaster assistance in the form of direct loans of up to $2 million to help small
business owners who are not able to obtain credit elsewhere to meet ordinary and necessary
operating expenses that they could have met but are not able to meet because an essential
43 This section was prepared by Robert Jay Dilger, Senior Specialist in American National Government,
rdilger@crs.loc.gov, 7-3110, and Sean Lowry, Analyst in Public Finance, slowry@crs.loc.gov, 7-9154. For a more
detailed discussion, see CRS Report R42695, SBA Veterans Assistance Programs: An Analysis of Contemporary
Issues, by Robert Jay Dilger and Sean Lowry.
44 See CRS Report R41352, Small Business Management and Technical Assistance Training Programs, by Robert Jay
Dilger.
45 See CRS Report R41146, Small Business Administration 7(a) Loan Guaranty Program, by Robert Jay Dilger, and
U.S. Small Business Administration, “SOP 50 10 5(E): Lender and Development Company Loan Programs,” (effective
June 1, 2012), pp. 83, 127, at http://www.sba.gov/sites/default/files/SOP%2050%2010%205(E)%20(5-16-
2012)%20clean.pdf.
46 U.S. Small Business Administration, “WDS Report, Amount and Count Summary Data File, as of September 30,
2013.”
47 U.S. Small Business Administration, “SBA Announces New Measures to Help Get Small Business Loans Into the
Hands of Veterans,” November 8, 2013, at http://www.sba.gov/content/sba-announces-new-measures-help-get-small-
business-loans-hands-veterans.
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employee has been called up to active duty in their role as a military reservist or member of the
National Guard due to a period of military conflict.48
The SBA also assists small businesses, including service-disabled veteran-owned small
businesses, in acquiring federal contracts through its management and oversight of the federal
government’s procurement goals for small businesses.49 Under the goaling program, at least 3%
of the total value of all small business eligible prime contract awards and subcontract awards are
supposed to be awarded to small businesses owned and controlled by service-disabled veteran-
owned small businesses.50
Programs for Veterans with Service-Connected Disabilities
Additional employment services exist for veterans with service-connected disabilities. The
Vocational Rehabilitation and Employment (VR&E) program provides comprehensive services
for veterans with a service-connected disability and does not have an analogue among general
veterans’ program. Other programs for disabled veterans are specialized variations of general
programs that were discussed previously.
Vocational Rehabilitation and Employment (VR&E)51
VR&E provides job training and employment services to veterans who have service-connected
disabilities.52 To be entitled to VR&E services, a veteran with a service-connected disability must
also demonstrate an employment handicap that hinders the veteran’s ability to prepare for, obtain,
or retain employment consistent with his or her abilities, aptitudes, and interests.
VR&E offers several tracks of services, depending on the veteran’s employment objective and
needs. Veterans who already have the necessary job skills or seek to return to previous
employment can receive short-term services such as resume assistance and job accommodations.
Veterans who need job skills are eligible for education and training benefits as well as
employment services once they complete training. The VA has reported that long-term services,
including education and training, is the most-utilized VR&E track.
In FY2013, VR&E benefits are estimated to be approximately $921 million. Program
administration, including counseling, are estimated to be an additional $234 million.53
48 U.S. Small Business Administration, “Disaster Assistance Program: SOP 50-30-7,” May 13, 2011, p. 48, at
http://www.sba.gov/sites/default/files/SOP%2050%2030%207.pdf; and 13 C.F.R. §123.508. For further information
and analysis concerning the SBA’s disaster assistance loan program, see CRS Report R41309, The SBA Disaster Loan
Program: Overview and Possible Issues for Congress, by Bruce R. Lindsay.
49 See CRS Report RL33243, Small Business Administration: A Primer on Programs, by Robert Jay Dilger and Sean
Lowry.
50 See P.L. 100-656, the Business Opportunity Development Reform Act of 1988 and P.L. 105-135, the HUBZone Act
of 1997 ─Title VI of the Small Business Reauthorization Act of 1997 (small businesses generally); and P.L. 106-50,
the Veterans Entrepreneurship and Small Business Development Act of 1999 (service-disabled veteran owned).
51 For more information on the VR&E program, see CRS Report RL34627, Veterans’ Benefits: The Vocational
Rehabilitation and Employment Program, by Benjamin Collins.
52 VR&E also provides independent living services to veterans who are not able to work. In FY2011, approximately
25% of completed rehabilitations under VR&E were independent living (i.e., not employment-based) rehabilitations.
53 FY2013 estimates are on page 2B-2 and page 3F-2Volume III of the FY2014 VA budget at http://www.va.gov/
(continued...)
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Disabled Veterans Outreach Program (DVOP) Employment Services54
DVOP provides formula grants to states to hire staff to provide a range of intensive services to
veterans with service-connected disabilities as well as other veterans with multiple barriers to
employment.55 Services include case management, referral to other service providers (e.g., the
VA’s VR&E program discussed in the prior subsection), employment counseling, and job search
assistance.
DVOP is part of DOL’s JVSG program, which also funds the previously discussed LVER
program.56 In FY2013, JVSG’s budget authority was approximately $161 million. JVSG is
funded out of the Employment Security Administration Account in the Unemployment Trust
Fund.
Components of General Programs that Target Disabled Veterans
Several of the broader veterans programs described previously in this report, have specialized
components for disabled veterans. Additional detail can be found in the sources referenced in
each program’s primary section of this report.
• Transition Assistance Program. TAP and the Transition GPS curriculum provide
specialized services for exiting service members with service-connected
disabilities.
• Federal Employment. As discussed in the section above, veterans with a service-
connected disability are eligible for the highest preference in competitively-hired
federal positions. Disabled veterans are also eligible for special hiring authorities,
including noncompetitive appointments for qualified veterans with a disability
rating of 30% or more from the VA.57
• Work Opportunity Tax Credit (currently expired, see WOTC section for full
details). Some WOTCs were available for businesses that hired veterans who
were eligible for disability compensation from the VA. The largest available tax
credits were for hiring a veteran who was eligible for disability compensation and
who was unemployed for at least 6 of the 12 months prior to hire.
Veteran-Targeted Competitive Grant Programs
Additional programs provide competitive grants for entities that provide services to veterans.
Since the programs are competitive grants, they may only be available in certain areas, may have
limited capacity, or may only serve a targeted veteran population.
(...continued)
budget/docs/summary/Fy2014_Volume_III-Benefits_Burial_Dept_Admin.pdf.
54 This section was prepared by David H. Bradley, Specialist in Labor Economics, dbradley@crs.loc.gov, 7-7352.
55 DVOP is codified at 38 U.S.C. 4103A.
56 JVSG is described in greater detail in the “Local Veterans Employment Representatives (LVER) Employment
Services” section of this report. More information on veteran-related initiatives administered the U.S. Department of
Labor, including the JVSG program, is available at http://www.dol.gov/vets/.
57 For more information on the “30% or More Disabled Veterans” hiring authority, see http://www.opm.gov/
staffingportal/vetguide.asp#30%Disabled.
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Homeless Veterans Reintegration Program (HVRP)58
HVRP is a competitive grant program administered by DOL. The HVRP program has two goals.
The first is to assist veterans in achieving meaningful employment, and the second is to assist in
the development of a service delivery system to address the problems facing homeless veterans.
HVRP grantee organizations provide services that include outreach, assistance in drafting a
resume and preparing for interviews, job search assistance, subsidized trial employment, job
training, and follow-up assistance after placement. Recipients of HVRP grants also provide
supportive services not directly related to employment such as transportation, provision of
assistance in finding housing, and referral for mental health treatment or substance abuse
counseling.
FY2013 appropriations for HVRP were $36.2 million.
TRIO Veterans Upward Bound (VUB)59
The TRIO Veterans Upward Bound (VUB) program provides services to assist veterans in
preparing for a program of postsecondary education. VUB projects provide academic instruction,
tutoring, assistance in completing secondary school, assistance with college admissions and
applications, and assistance applying for financial assistance. It is administered by the
Department of Education (ED).
To be eligible for participation, veterans must be in need of academic support to pursue education
beyond secondary school successfully. At least two-thirds of program participants must be low-
income, potential first-generation college students. The remaining one-third of participants must
be either low-income, potential first generation college students, or otherwise be at-risk of
academic failure. The program defines a veteran who is at-risk for academic failure as an
individual who has been out of high school or dropped out of a program of postsecondary
education for five or more years; has scored on standardized tests below the level that
demonstrates a likelihood of success in a program of postsecondary education; or meets the
definition of an individual with a disability.
In FY2013, ED allocated $13 million of the $796 million in TRIO appropriation to VUB
projects.60
Veterans Workforce Investment Program (VWIP; not funded since FY2012)61
WIA authorizes grants for programs to meet the needs of “veterans with service-connected
disabilities, veterans who have significant barriers to employment, veterans who served on active
duty in the Armed Forces during a war or in a campaign or expedition for which a campaign
58 For more information on the HVRP, see CRS Report RL34024, Veterans and Homelessness, by Libby Perl.
59 For more information on TRIO programs, including Upward Bound, see CRS Report R42724, The TRIO Programs:
A Primer, by Cassandria Dortch.
60 U.S. Department of Education, Veterans Upward Bound Program, Funding Status, http://www2.ed.gov/programs/
triovub/funding.html, as downloaded on January 5, 2014.
61 VWIP is authorized by Section 168 of WIA. Questions on VWIP should be directed to David H. Bradley,
dbradley@crs.loc.gov, 7-7352.
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badge has been authorized, and recently separated veterans.” Programs may contain training or
other employment services. VWIP is administered by DOL.
VWIP did not receive an appropriation in FY2013 or FY2014, though the program remains
authorized.62 DOL has stated the intent of reserving FY2014 funds under the Workforce
Innovation Fund (another DOL-administered competitive grant program) for grants that target
veterans and military families, but, as of this writing, no such grants have been solicited.
Recently Expired Programs
Work Opportunity Tax Credit (WOTC) for Employers63
The WOTC provided a tax credit for employers who hired qualified veterans. In cases where the
eligible hire worked at least 400 hours, the credit was equal to 40% of the wages paid to the
eligible veteran, up to a certain level.64
Authorization for WOTC expired after December 31, 2013. DOL subsequently issued guidance
on January 2, 2013, instructing state workforce agencies to continue to accept WOTC
applications. The guidance noted that “in the past when the tax credit program’s authority lapsed
and Congress subsequently reauthorized the program, certain legislative provisions allowed for
retroactive certification of eligibility for the period between the expiration date and the
reauthorization date.”65
Under the most recent authorization (which expired after December 31, 2013), the criteria and
credit amounts for veterans were
• a maximum credit of $2,400 for hiring a veteran who was receiving
Supplemental Nutrition Assistance Program (SNAP; formerly food stamps)
benefits for at least three months during the year prior to hire;
• a maximum credit of $2,400 for hiring a veteran who had been unemployed for a
total of at least four weeks but less than six months in the year prior to hire;
• a maximum credit of $4,800 for hiring a veteran who was eligible for disability
compensation from the VA and was within one year of discharge or release from
military duty;
• a maximum credit of $5,600 for hiring a veteran who had been unemployed for a
total of at least six months in the year prior to hire; and
62 In FY2012, $14.6 million was appropriated for VWIP grants.
63 For more information on the WOTC, see CRS Report RL30089, The Work Opportunity Tax Credit (WOTC), by
Christine Scott. This report also describes nonveteran target populations that are eligible for the WOTC (e.g., at-risk
youth or individuals convicted of a felony).
64 The size of the WOTC is based on wages paid the employee during the first year of employment. In cases where an
eligible hire works between 120 and 400 hours, the tax credit is reduced to 25% of wages paid. If the eligible hire
works fewer than 120 hours, the employer is not eligible for the credit.
65 See U.S. Department of Labor, Training and Employment Guidance Letter TEGL 8-13, issued January 2, 2014,
http://wdr.doleta.gov/directives/attach/TEGL/TEGL_8_13_Acc.pdf.
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• a maximum credit of $9,600 for hiring a veteran who was eligible for disability
compensation from the VA and who had been unemployed for a total of six
months in the year prior to hire.
Author Contact Information
Benjamin Collins, Coordinator
Lawrence Kapp
Analyst in Labor Policy
Specialist in Military Manpower Policy
bcollins@crs.loc.gov, 7-7382
lkapp@crs.loc.gov, 7-7609
Robert Jay Dilger
Sean Lowry
Senior Specialist in American National Government
Analyst in Public Finance
rdilger@crs.loc.gov, 7-3110
slowry@crs.loc.gov, 7-9154
Cassandria Dortch
Libby Perl
Analyst in Education Policy
Specialist in Housing Policy
cdortch@crs.loc.gov, 7-0376
eperl@crs.loc.gov, 7-7806
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