To amend title 38, United States Code, to permit disabled or injured members of the Armed Forces to transfer Post 9/11 Educational Assistance benefits after retirement, and for other purposes.

Permits the posthumous transfer of Post 9/11 Educational Assistance (an educational assistance entitlement for certain members of the Armed Forces serving on or after September 11, 2001) to the spouse or children of eligible Armed Forces members when the application of a member electing to transfer such assistance was not approved before the member died in the line of duty.

Allows transfers of such entitlements by individuals honorably discharged or released from active duty in the Armed Forces due to a service-connected disability or after sustaining an injury in line of duty requiring hospital, nursing home, or domiciliary care or treatment. (Current law requires an individual to be serving as a member of the Armed Forces when the transfer is executed.) Sets forth extended and alternative eligibility periods for such individuals.

Applies this Act to individuals who become eligible to transfer such benefits on or after August 1, 2009.