A bill to provide a noncontributory educational program for veterans and members of the Armed Forces of the United States in order to recognize satisfactory and honorable service, and for other purposes.

Establishes a program of educational assistance for veterans of the military service who entered, reenlisted, or extended active duty after September 30, 1981. Provides procedures for such persons to earn a maximum of 36 months of educational assistance under such program.

Sets forth a formula for the computation of monthly subsistence allowances for eligible members enrolled in and pursuing an approved program of education.

Authorizes eligible persons to transfer any educational benefits to their children.

Authorizes the Administrator of Veterans' Affairs and the Secretary of Defense to jointly determine a method of expanding benefits provided by this Act, when they both consider such expansion necessary for recruitment and retention of qualified persons in a selected category within an armed force.

Limits educational assistance to the date ten years beyond the completion of an eligible members' military obligation. Sets forth circumstances which qualify such members for an extension of such assistance.

Prohibits dual participation in the program provided by this Act and programs authorized for post-Vietnam era veterans.