A bill to amend title 38, United States Code, to deny eligibility for benefits available under such title to certain former members of the armed services who fail to complete at least 18 months of their initial period of obligated service.

Redefines "veteran" for veterans' benefits purposes to mean an individual who: (1) served in, and was not dishonorably discharged from, the active armed services prior to January 1, 1981; or (2) entered active military service on or after January 1, 1981, and (a) completed at least 18 months of service and was not dishonorably discharged, (b) was granted a hardship discharge, or (c) was granted a disability discharge.

Redefines "eligible veteran" for post-Vietnam era educational assistance to include individuals who: (1) entered military service on or after January 1, 1977, but before January 1, 1981, having previously served 180 days or less, subsequently served at least 180 days of active service, and was not dishonorably discharged; (2) entered military service on or after January 1 1981, served at least 18 months of active service, and was not dishonorably discharged; (3) entered military service on or after January 1, 1981, having previously served either less than 180 days prior to 1981 or less than 18 months after such date, subsequently served at least 18 months, and was not dishonorably discharged; or (4) entered military service on or after January 1, 1977, having previously served 180 days or less, and was granted a disability discharged.