A bill establishing a new G.I. Education Program.

Establishes a peacetime veterans' educational assistance program for persons who served on active duty or in the Selected Reserve after August 31, 1983.

Sets forth the eligibility requirements for such assistance based on period and type of service. Creates a basic entitlement of 24 months of assistance for the first 24 months of service with an additional month of assistance for each additional month of service, up to a total of 36 months.

Establishes a delimiting period for the use of such assistance of ten years after discharge. Excepts those suffering from a physical or mental disability which prevented their completing their education and persons held as prisoners of war.

Directs the Administrator of Veterans' Affairs to pay a subsistence allowance to eligible veterans in specified amounts.

Permits educational benefits to be transferred by the eligible person to a spouse or child.

States that appropriations for this program be considered as made for the functions of the Department of Defense rather than for the functions of the Veterans Administration.

Prohibits persons eligible for this program from participating in the Post-Vietnam Era Veterans' Educational Assistance Program. Directs the Secretary of Defense to report to Congress on whether the program should be expanded to attract and retain certain qualified persons.

Permits the Secretary concerned to grant educational leave for up to 12 months if the person concerned agrees to serve two months for each month off. Sets forth other conditions of such leave, including pay and eligibility for retired pay. Permits such Secretary to cancel this leave in time of war or national emergency or if he determines the member is not pursuing his education satisfactorily.

States that there shall be no increase in pay for members in pay grade E-1 in FY 1983 and 1984 unless an increase becomes unavoidable through the general pay increase requirements.