Proposed Rule2026-00634

Edith Nourse Rogers STEM Scholarship

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
January 15, 2026

Issuing agencies

Veterans Affairs Department

Abstract

The Department of Veterans Affairs (VA) proposes to amend the Veteran Readiness and Employment and Education regulations to incorporate the provisions of the Harry W. Colmery Veterans Educational Assistance Act of 2017 (Colmery Act) that created the Edith Nourse Rogers STEM Scholarship (STEM Scholarship), which provides up to nine months of additional Post-9/11 GI Bill benefits to certain eligible individuals. This proposed rulemaking, which includes the rules necessary to provide this educational assistance to eligible individuals, would also incorporate the provisions of the Johnny Isakson and David P. Roe Veterans Health Care and Benefits Improvement Act of 2020 (Isakson-Roe Act) that further expanded the eligibility for the STEM Scholarship to individuals enrolled in a dual degree program that includes an undergraduate degree in a science, technology, engineering, and mathematics (STEM) field and to certain individuals enrolled in a covered clinical training program for health care professionals.

Full Text

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<title>Federal Register, Volume 91 Issue 10 (Thursday, January 15, 2026)</title>
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[Federal Register Volume 91, Number 10 (Thursday, January 15, 2026)]
[Proposed Rules]
[Pages 1726-1732]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00634]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

[Docket No. VA-2025-VBA-0172]
RIN 2900-AS38


Edith Nourse Rogers STEM Scholarship

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend the 
Veteran Readiness and Employment and Education regulations to 
incorporate the provisions of the Harry W. Colmery Veterans Educational 
Assistance Act of 2017 (Colmery Act) that created the Edith Nourse 
Rogers STEM Scholarship (STEM Scholarship), which provides up to nine 
months of additional Post-9/11 GI Bill benefits to certain eligible 
individuals. This proposed rulemaking, which includes the rules 
necessary to provide this educational assistance to eligible 
individuals, would also incorporate the provisions of the Johnny 
Isakson and David P. Roe Veterans Health Care and Benefits Improvement 
Act of 2020 (Isakson-Roe Act) that further expanded the eligibility for 
the STEM Scholarship to individuals enrolled in a dual degree program 
that includes an undergraduate degree in a science, technology, 
engineering, and mathematics (STEM) field and to certain individuals 
enrolled in a covered clinical training program for health care 
professionals.

DATES: Comments must be received on or before March 16, 2026.

ADDRESSES: You may submit comments through <a href="http://www.regulations.gov">www.regulations.gov</a> under 
RIN 2900-AS38. That website includes a plain-language summary of this 
rulemaking. Instructions for accessing agency documents, submitting 
comments and viewing the rulemaking docket are available on 
<a href="http://www.regulations.gov">www.regulations.gov</a> under ``FAQ.''

FOR FURTHER INFORMATION CONTACT: Thomas Alphonso, Assistant Director, 
Policy and Procedures, Education Service, Veterans Benefits 
Administration, (202) 461-9800.

SUPPLEMENTARY INFORMATION: On August 16, 2017, the President signed 
into law the Colmery Act, Public Law 115-48. Section 111 of the Colmery 
Act added a new section, 38 U.S.C. 3320, and provided VA the authority 
to establish the STEM Scholarship to provide up to nine months of 
additional Post-9/11 GI Bill benefits to eligible individuals. These 
benefits cannot be transferred to

[[Page 1727]]

dependents. This section of the law was effective on August 1, 2019.
    On January 5, 2021, the Isakson-Roe Act, Public Law 116-315, was 
signed into law. Section 1001 of the Isakson-Roe Act, entitled 
``Improvements to Edith Nourse Rogers STEM Scholarship Program of 
Department of Veterans Affairs,'' amended 38 U.S.C. 3320. Previously, 
only individuals enrolled in a program of education leading to a 
standard, undergraduate college degree in an approved STEM field or 
enrolled in a program of education leading to a teaching certification 
after earning a post-secondary degree in a STEM field were eligible for 
the STEM Scholarship. The Isakson-Roe Act expanded the eligibility for 
the STEM Scholarship to include individuals enrolled in a dual degree 
program that includes a STEM undergraduate degree and certain 
individuals enrolled in a covered clinical training program for health 
care professionals.
    The Isakson-Roe Act also authorized VA to prioritize certain 
individuals for selection for the program when sufficient funds are not 
available in a fiscal year to provide additional benefits under this 
section to all eligible individuals. In addition, the Isakson-Roe Act 
excluded additional months of assistance under the STEM Scholarship 
from the calculation of the aggregate months of benefits available 
under the 48-month benefits limitation under 38 U.S.C. 3695.
    The STEM Scholarship enables veterans to earn degrees that prepare 
them for in-demand careers in the fast-growing science and technology 
economy. VA has been administering the STEM Scholarship since the 
statute was first effective on August 1, 2019, and is proposing to 
create a new regulation at 38 CFR 21.9800 to complete the 
implementation of the STEM Scholarship under 38 U.S.C. 3320.

Eligibility

    Under 38 U.S.C. 3320(b), an individual is eligible for the STEM 
Scholarship if the individual is or was entitled to educational 
assistance under 38 U.S.C. 3311 (including spouses and children 
eligible for the Marine Gunnery Sergeant John David Fry Scholarship 
under 38 U.S.C. 3311(f) and Purple Heart recipients under 38 U.S.C. 
3311(b)(11)) and either used all of the educational assistance to which 
they were entitled under section 3311 or will use all such assistance 
within 180 days of applying for benefits under 38 U.S.C. 3320. 
Individuals must either be pursuing a STEM degree or have already 
earned a STEM degree to be eligible for the STEM Scholarship. The 
specific types of programs of education that qualify for assistance 
under the STEM Scholarship are: a program of education leading to a 
post-secondary undergraduate degree in a STEM field; a dual degree 
program that includes an undergraduate college degree in an approved 
STEM degree field; a program of education leading to a teaching 
certification; or a covered clinical training program for health care 
professionals.
    Individuals pursuing a post-secondary degree must have completed at 
least 60 standard semester credit hours (or 90 quarter credit hours) in 
a STEM program requiring at least the standard 120 semester credit 
hours (or 180 quarter credit hours) for completion to be eligible for 
the STEM Scholarship. Individuals enrolled in a teaching certification 
program must have earned a post-secondary degree in a STEM field to be 
eligible for the STEM Scholarship. Regarding covered clinical training 
programs for health care professionals, 38 U.S.C. 3320(b)(4)(B) and (C) 
explicitly refer to a covered clinical training program as a program in 
which an individual is enrolled after earning a post-secondary degree 
or graduate degree, respectively, in a STEM field.
    Section 3320(h) states that the term ``covered clinical training 
program means any clinical training required by a health care 
professional to be licensed to practice in a State or locality.'' 
Because section 3320(b)(4)(B) and (C) refers to clinical training 
programs that follow attainment of a post-secondary or graduate degree, 
covered clinical training programs for the purposes of the STEM 
Scholarship are separate, standalone clinical training programs that 
are not a component of an undergraduate or graduate degree program. For 
example, a medical residency after graduating from a Doctorate in 
Medicine program is considered to be a separate program of education 
than the Doctorate in Medicine program and is therefore eligible for 
the STEM Scholarship. Simply obtaining a Doctorate in Medicine does not 
automatically grant a license to practice medicine. The individual 
still needs to complete a medical residency to be eligible to become a 
licensed health care provider.
    The eligibility requirements discussed in section 3320(b) are 
included in 38 CFR 21.9800(b) and (c). The definition for the term 
``covered clinical training program for health care professionals'' is 
included in Sec.  21.9800(m)(2).

Approval of the Selected Program of Education

    To be approved for the STEM Scholarship, the student's program of 
education must meet VA's current definition of a program of education 
as defined in 38 CFR 21.9505. The student must be enrolled in a program 
of education approved under Chapter 36 for VA educational assistance 
benefits. In addition, the program of education must lead to an 
undergraduate college degree, a teaching certification, or dual degrees 
that include a STEM undergraduate degree, or the program can qualify as 
a covered clinical training program for health care professionals.
    Originally, as enacted by section 111 of Public Law 115-48, only an 
individual enrolled in an approved STEM field while pursuing a 
standard, undergraduate college degree or an individual enrolled in a 
program of education leading to a teaching certification after earning 
a post-secondary degree in an approved STEM field was eligible for the 
STEM Scholarship. However, section 1001 of Public Law 116-315 expanded 
eligibility to include individuals enrolled in a dual degree program 
that includes an undergraduate degree in an approved STEM field, as 
well as individuals who have earned an undergraduate or graduate degree 
in an approved STEM degree field and are enrolled in a covered clinical 
training program for health care professionals. Covered clinical 
training, for the purposes of the STEM Scholarship, is defined as a 
separate, standalone clinical training program required for health care 
professionals to be able to practice in a State or locality and does 
not include clinical training that is part of an undergraduate or 
graduate degree program.
    Further, section 1001 removed ``a medical residency program'' from 
the approved list of undergraduate STEM degree programs. Medical 
residency programs are graduate level programs and not a part of 
undergraduate degree programs. Therefore, the previous inclusion of 
``undergraduate college degree in . . . medical residency program[s]'' 
was nonsensical. To eliminate any confusion and correctly categorize 
medical residencies, as well as to broaden the category to include 
other similar types of training programs, section 1001 created new 
categories for ``clinical training program[s] for health care 
professionals'' (post-undergraduate and post-graduate level). 
Therefore, the proposed regulation does not include ``medical residency 
programs'' in the list of approved STEM degree programs

[[Page 1728]]

with the knowledge that such programs are now included in the new 
category of ``a covered clinical training program for health care 
professionals.''
    VA proposes to define the term ``STEM field'' as a field included 
in the Department of Education's (ED) Classification of Instructional 
Programs (CIP Code) taxonomy within the two-digit series containing 
biological or biomedical science, physical science, science 
technologies or technicians, computer and information science and 
support services, mathematics or statistics, engineering, engineering 
technologies or an engineering-related field, a health profession or 
related program, an agriculture science or natural resources science 
program, or other subjects and fields identified by the Secretary of 
Veterans Affairs as meeting national needs. In general, any other 
subjects and fields identified by the Secretary as meeting national 
needs would involve research, innovation, or development of new 
technologies using engineering, mathematics, health care, computer 
science, or natural sciences. VA would rely heavily on ED's CIP Code to 
match the statute's list of eligible STEM fields with individual 
programs of study. VA has made the decision to defer mostly to ED's 
classification scheme to leverage ED's expertise in these matters and 
ED's efforts in developing and maintaining the comprehensive CIP Code 
taxonomy. Furthermore, it would be problematic for ED to classify a 
program as non-STEM while VA classifies it as STEM; VA does not want to 
create inconsistencies in similar determinations between two Federal 
agencies; therefore, VA will rely heavily on ED's CIP Code 
categorization when determining the appropriate classification of a 
program of education. While VA recognizes that VA-designated STEM 
fields not listed under ED's CIP Code taxonomy could create 
classification differences, VA has statutory authority to use 
discretion to identify emerging STEM disciplines meeting national 
needs, particularly those directly supporting veteran workforce 
integration. VA will coordinate with ED to minimize inconsistencies. VA 
proposes to codify this definition in 38 CFR 21.9800(m)(1).
    After completing an undergraduate degree in an approved STEM 
program, individuals may also qualify for the additional benefits if 
they are pursuing a teaching certification (typically obtained through 
a teaching preparation program or alternative teaching certification 
program). Teaching certification is the process by which prospective 
educators get teacher licensing to teach within a given area after 
completing required coursework, degrees, tests, and other specified 
criteria.
    The Secretary, or his or her designee, will maintain the STEM 
Designated Degree Program List, which will be a complete list of 
qualifying degree program categories organized by the CIP Codes and 
will be published on the GI Bill website at <a href="https://benefits.va.gov/gibill/docs/fgib/STEM_Program_List.pdf">https://benefits.va.gov/gibill/docs/fgib/STEM_Program_List.pdf</a>. Changes that are made to the 
STEM Designated Degree Program List will also be published in a notice 
in the Federal Register. All program categories included on the list 
must be consistent with the definition set forth in Sec.  
21.9800(m)(1). If the Secretary, or his or her designee, identifies 
other subjects or fields as meeting national needs, VA will notify 
Congress 90 days before approving any additional approved fields of 
study or subjects and will submit any analysis of labor market supply 
and demand used to identify such subjects or fields. VA is proposing to 
implement the provisions of 38 U.S.C. 3320(b)(4)(A)(i) and (g) in 38 
CFR 21.9800(m).

Applying for the STEM Scholarship

    An eligible individual would be required to apply for the STEM 
Scholarship by completing VA Form 22-10203 online, which would then be 
processed by the designated Regional Processing Office. The application 
process is no longer completed through paper submissions but is now 
being handled electronically. This streamlined process enables the 
applicant to log directly into a secured application portal with 
identification verification. The online application also requires 
applicants to provide the name and address of the school or training 
establishment they plan to attend and date they plan to start training. 
The school information provided by the applicant will be matched to 
VA's database of educational institution information. A portion of the 
application form must be completed by the School Certifying Official 
(SCO) within 12 months of the date VA receives the application. If VA 
does not receive a timely response from the school, a VA claims 
processor will follow up with the SCO, as only complete applications 
will be considered for the STEM Scholarship. If a school fails to 
provide the requested information within the allotted time frame, VA 
reserves the authority to deny the application. VA is proposing to 
codify these standard procedures implementing the above application 
requirements in Sec.  21.9800(d).
    In accordance with 38 U.S.C. 3320(c), if VA determines that there 
are insufficient funds in a fiscal year to provide STEM Scholarship 
benefits to all eligible applicants, VA would prioritize eligible 
applicants according to particular criteria as described in the 
Priority selection section below. The two ways that VA has considered 
performing this prioritization of applicants are to create application 
cohorts by either withholding application decisions for a certain time 
period or until a certain number of applications are received. To 
balance the potential need to prioritize applications with the need to 
provide timely decisions on applications, VA has decided to create 
monthly cohorts for the purposes of performing the section 3320(c) 
prioritization. Candidates would be selected from the monthly cohort on 
the 7th day of each month. A scholarship would be only awarded if funds 
are available at the time of selection (the 7th of each month) and the 
applicant is of sufficient priority over other applicants in the 
respective monthly cohort. VA proposes to provide the priority 
selection criteria in 38 CFR 21.9800(g).
    After VA reviews a STEM Scholarship application, it would issue 
either a STEM Scholarship denial letter or a STEM Scholarship 
acknowledgement letter. VA would send a denial letter if the applicant 
is ineligible for the STEM Scholarship or if there are insufficient 
funds available to select the applicant for the STEM Scholarship. If 
the applicant is ineligible, the denial letter would state the specific 
eligibility criteria that the applicant failed to meet. The 
acknowledgement letter would inform the applicant that they meet the 
STEM Scholarship eligibility criteria but that the scholarship 
selection process has not yet occurred at that juncture. The STEM 
Scholarship acknowledgement letter was a more critical status update to 
applicants when the STEM Scholarship program was launched in 2019 
because, at that time, the selection process was only done quarterly 
rather than monthly. Therefore, the acknowledgement letter served as an 
indication to applicants that they met the STEM Scholarship eligibility 
criteria, but that notification of a selection decision might have 
taken a few months until the end of each quarter. Even though selection 
is now done monthly, the acknowledgement letter would still serve as a 
useful indicator of the status of their application by advising the 
applicant that their STEM Scholarship application has been processed 
but they have yet to

[[Page 1729]]

be selected for the program. They would receive an additional STEM 
Scholarship selection letter if they are selected to participate.
    Once the applicant is officially selected for the STEM Scholarship, 
VA would send a STEM Scholarship selection letter to the candidate who 
then must take this letter to their school to certify their enrollment 
to VA. This selection letter for the STEM Scholarship program would act 
as a Certificate of Eligibility. After VA receives an official 
enrollment certification from the school, VA would send an award letter 
to the applicant. VA is proposing to codify provisions regarding 
decisions and notices of decisions in Sec.  21.9800(h).

Beginning and Discontinuance Dates

    Funding for STEM Scholarships is released on an annual basis 
beginning October 1st of each fiscal year. August 1st is the date that 
marks the beginning of the new academic year for STEM Scholarships. In 
order to prevent STEM funds in each fiscal year from being 
underutilized, the recipient would be required to begin using the 
benefit within six months of their selection or their scholarship would 
be forfeited. Recipients can reapply if their scholarship is forfeited 
and reestablish eligibility for the scholarship. Once a STEM 
Scholarship is awarded, the recipient must use the additional benefits 
from the STEM Scholarship within two years from the date that the award 
was first made (the beginning date) or by a discontinuance date under 
Sec.  21.9635, whichever comes first. VA is proposing to codify this 
beginning date language in Sec.  21.9800(e) and discontinuance date 
language in Sec.  21.9800(f).

Priority Selection

    When first enacted under the Colmery Act, 38 U.S.C. 3320(c) 
required VA to prioritize applications from the following eligible 
individuals: (1) individuals requiring the most credit hours to 
complete their program of education, and (2) individuals entitled to 
100 percent of Post-9/11 GI Bill benefits (which includes veterans and 
servicemembers who have met certain active-duty service requirements, 
spouses and children eligible for the Fry Scholarship, and Purple Heart 
recipients).
    When Congress amended the statute under the Isakson-Roe Act, it 
made the groups listed above optional prioritization groups by stating 
that, in the event that funding is not sufficient, VA ``may give 
priority'' to those individuals, see section 3320(c)(1), and added a 
new paragraph listing the following order of required prioritizations 
in section. 3320(c)(2): (1) individuals enrolled in an undergraduate 
STEM degree program; (2) individuals enrolled in a program of education 
leading to a teaching certificate; (3) individuals enrolled in a dual 
degree program where the individual is pursuing both a STEM 
undergraduate degree and a STEM graduate degree; (4) individuals who 
have earned an undergraduate degree and are enrolled in a covered 
clinical training program for health care professionals; (5) 
individuals who have earned a graduate degree and are enrolled in a 
covered clinical training program for health care professionals; and 
(6) all other eligible individuals.
    Under proposed 38 CFR 21.9800(g)(1), for enrollment periods 
beginning before January 5, 2021 (the effective date of the Isakson-Roe 
Act amendments), VA would prioritize applications using the original 
mandatory prioritization criteria that were included in the Colmery 
Act. Under proposed Sec.  21.9800(g)(2), for enrollment periods 
beginning on or after January 5, 2021, should VA need to prioritize 
applications among eligible STEM Scholarship applicants due to 
insufficient funds, VA would first group applications using the 
priority criteria under 38 U.S.C. 3320(c)(2), and would then prioritize 
the eligible individuals within each group based on which applicants 
within the group have the most remaining required credit hours, per 
section 3320(c)(1)(A). VA believes that using the priority criteria of 
most remaining required credit hours under section 3320(c)(1)(A) is 
preferable to using the priority criteria of all individuals entitled 
to 100 percent of Post-9/11 GI Bill benefits under section 
3320(c)(1)(B). The reason for this is because many recipients of VA 
educational assistance are entitled to 100 percent of Post-9/11 GI Bill 
benefits and, therefore, applying that criterion to a large group of 
applicants would not effectively serve the purpose of narrowing the 
pool of eligible applicants for prioritization in the event of 
insufficient funds. The following is an example of how VA would use 
this prioritization scheme:
    VA has enough funds to provide STEM Scholarship benefits to all 
eligible individuals pursuing undergraduate STEM degrees, including 
dual undergraduate STEM degrees (priority group 1), all eligible 
individuals enrolled in teacher certificate programs (priority group 
2), all eligible individuals enrolled in dual degree programs where the 
undergraduate and graduate degrees are both in a STEM field (priority 
group 3), but does not have enough funds to provide benefits to the 
rest of the STEM Scholarship eligible individuals. In this scenario, VA 
would prioritize within the group of individuals who have earned an 
undergraduate degree in a STEM field and are enrolled in a covered 
clinical training program for health care professionals (priority group 
4) based on those who have the most remaining required credit hours to 
complete their program of education.
    Section 1001 of Public Law 116-315 applies to terms that begin on 
or after January 5, 2021. Retroactive benefits would not be paid for 
terms or programs that began and ended prior to the January 5, 2021, 
date of enactment. However, students enrolled in programs of education 
that began prior to January 5, 2021, and have a completion date after 
January 5, 2021, would become eligible for assistance for any 
additional terms beginning on or after January 5, 2021.
    In addition, these changes apply to individuals who were deemed 
eligible for the STEM Scholarship prior to the date of enactment, but 
who did not begin their STEM program terms until on or after January 5, 
2021. For example, if a student was eligible for the STEM Scholarship 
and attended a term that ran from November 1, 2020, to January 31, 
2021, that term would not have been covered by the STEM Scholarship. 
However, if that same student began a new term on February 1, 2021, 
then that new term would have been evaluated for eligibility under the 
revised statute, with the amendments made by section 1001 of Public Law 
116-315.
    VA is proposing to codify the prioritization requirements in 38 CFR 
21.9800(g).

Amount of Assistance

    Under the STEM Scholarship, VA is authorized to pay each eligible 
individual the monthly amount payable under 38 U.S.C. 3313 for not more 
than nine months, and the aggregate amount paid may not exceed $30,000. 
Additionally, the total amount of STEM Scholarship benefits paid to all 
eligible individuals may not exceed $25,000,000 for fiscal year 2019, 
$75,000,000 for fiscal years 2020 to 2022, and $100,000,000 for fiscal 
year 2023 and each subsequent fiscal year. In accordance with section 
3313, students may be eligible for assistance with tuition and fees, a 
monthly housing stipend, and a stipend for books, supplies, equipment, 
and other educational costs. In accordance with section 3320(d), these 
same benefits are

[[Page 1730]]

payable under the STEM Scholarship. VA is proposing to implement these 
provisions regarding the amount of assistance in 38 CFR 21.9800(i).

Additional Assistance Under Yellow Ribbon Program

    Individuals who are entitled to the 100-percent level of the 
educational assistance amounts listed in 38 U.S.C. 3313(c)(1) are also 
eligible to participate in the Yellow Ribbon Program under section 
3317, if the schools they attend participate in this program. The 
Yellow Ribbon Program allows an institution of higher learning to 
voluntarily enter into an agreement with VA to fund half of the 
remaining tuition and fees in excess of the tuition and fees cap 
defined in the Post-9/11 GI Bill. Pursuant to section 3320(d)(2) and 
(3), colleges and universities are permitted to pay Yellow Ribbon 
benefits for STEM Scholarship recipients; however, VA is not authorized 
to match or issue any Yellow Ribbon payments for STEM Scholarship 
recipients. VA is proposing to implement the limits on the amount of VA 
benefits paid to educational institutions in 38 CFR 21.9800(j).

Prohibition on Benefits Transfer

    Per 38 U.S.C. 3320(e), a participant who receives additional 
benefits under the STEM Scholarship cannot transfer any such benefits 
to his or her dependents. VA is proposing to implement this prohibition 
on transferring STEM Scholarship benefits in 38 CFR 21.9800(k).

Exclusion From Aggregate Assistance Limitation

    Under 38 U.S.C. 3695, individuals who receive educational 
assistance under multiple VA programs are generally capped at 48 months 
of aggregate assistance (individuals who receive Chapter 35 Survivors' 
and Dependents' Educational Assistance have a higher aggregate cap of 
81 months). Per section 3320(d)(4), assistance received under the STEM 
Scholarship program does not count towards the 48-month aggregate 
assistance limitations contained in section 3695(a). VA is proposing to 
implement this provision under 38 CFR 21.9800(l).

Executive Orders 12866, 13563, and 14192

    VA examined the impact of this rulemaking as required by Executive 
Orders 12866 (Sept. 30, 1993) and 13563 (Jan. 18, 2011), which direct 
agencies to assess all costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits. The Office of Information and 
Regulatory Affairs has determined that this rulemaking is not a 
significant regulatory action under Executive Order 12866, as 
supplemented by Executive Order 13563. This rule is not an Executive 
Order 14192 regulatory action because this rule is not significant 
under Executive Order 12866. The regulatory impact analysis associated 
with this rulemaking can be found as a supporting document at 
<a href="http://www.regulations.gov">www.regulations.gov</a>.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act (5 
U.S.C. 601-612). The factual basis for this certification is based on 
the fact that this rule would codify in regulations procedures for the 
Edith Nourse Rogers STEM Scholarship program that are already 
administered under current VA policies authorized by 38 U.S.C. 3320. 
The only operational requirement imposed on educational institutions is 
the certification of students' enrollment and information to VA, which 
would align with existing practices under VA education benefit 
programs. While some participating institutions may be small entities, 
VA anticipates that any economic impact would be minimal, as these 
administrative tasks are routine. Therefore, under 5 U.S.C. 605(b), the 
Secretary certifies that this proposed rule would not have a 
significant economic impact on a substantial number of small entities, 
and an initial or final regulatory flexibility analysis is not 
required.

Unfunded Mandates

    This proposed rule would not result in the expenditure by State, 
local, and Tribal governments, in the aggregate, or by the private 
sector, of $100 million or more (adjusted annually for inflation) in 
any one year.

Paperwork Reduction Act

    Although this proposed rule contains collection of information 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3521), there are no provisions associated with this rulemaking 
constituting any new collection of information or any revisions to the 
existing collection of information. The collection of information for 
section 111 of the Colmery Act, Public Law 115-48, and section 1001 of 
the Isakson-Roe Act, Public Law 116-315, is currently approved by the 
Office of Management and Budget (OMB) and has been assigned OMB control 
number 2900-0878 under VA Form 22-10203, the Application for Edith 
Nourse Rogers STEM Scholarship. Both the applicants and their 
respective training institutions are required to complete the form. 
Applicants are required to provide the name and complete address of the 
school or training establishment they are planning to attend and date 
they plan to start training. Training institutions then certify the 
information provided to VA.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Claims, 
Colleges and universities, Education, Employment, Reporting and 
recordkeeping requirements, Schools, Veterans, Vocational education.

Signing Authority

    Douglas A. Collins, Secretary of Veterans Affairs, approved this 
document on December 12, 2025, and authorized the undersigned to sign 
and submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Taylor N. Mattson,
Alternate Federal Register Liaison Officer, Department of Veterans 
Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs proposes to amend 38 CFR part 21 as set forth below:

PART 21--VETERAN READINESS AND EMPLOYMENT AND EDUCATION

Subpart P--Post-9/11 GI Bill

0
1. The authority citation for part 21, subpart P continues to read as 
follows:

    Authority:  38 U.S.C. 501(a), 512, chs. 33, 36 and as noted in 
specific sections.

0
2. Add Sec.  21.9800 to read as follows:


Sec.  21.9800  Edith Nourse Rogers STEM Scholarship.

    (a) General. The Edith Nourse Rogers STEM Scholarship provides 
additional Post-9/11 GI Bill benefits to certain eligible individuals. 
For the purposes of this section a post-secondary degree is defined as 
a standard, undergraduate degree. The Edith Nourse Rogers STEM 
Scholarship is hereinafter referred to as the ``STEM Scholarship.''
    (b) Eligibility.
    (1) For the purposes of this section, an eligible individual is an 
individual who--

[[Page 1731]]

    (i) Is or was entitled to Post-9/11 GI Bill educational assistance 
under Sec.  21.9520;
    (ii) Has used all the Post-9/11 GI Bill educational assistance to 
which the individual is entitled or, based on the individual's rate of 
usage, will use all his or her Post-9/11 GI Bill educational assistance 
within 180 days of applying for benefits under this section; and
    (iii) Is enrolled, at the time the individual applies for the STEM 
Scholarship, in a program of education that meets the requirements of 
paragraph (c) of this section.
    (2) Individuals seeking to use the STEM Scholarship while enrolled 
in a program of education that leads to a post-secondary degree under 
paragraph (c)(3) of this section must have completed 60 standard 
semester credit hours or 90 quarter credit hours in a STEM field to be 
an eligible individual.
    (3) Individuals seeking to use the STEM Scholarship while enrolled 
in a program of education leading to a teaching certification under 
paragraph (c)(4) of this section must have earned a post-secondary 
degree in a STEM field to be an eligible individual.
    (4) Individuals seeking to use the STEM Scholarship while enrolled 
in a covered clinical training program for health care professionals 
under paragraph (c)(6) of this section must have earned either a post-
secondary or graduate degree in a STEM field.
    (c) Approval of the selected program of education. VA may approve a 
STEM Scholarship program of education if the program:
    (1) Meets the definition of a program of education in Sec.  
21.9505;
    (2) Meets the approval criteria as set in VA's current definition 
of a program of education as defined in Sec.  21.9505 and;
    (3) Is a program of education that:
    (i) Leads to a post-secondary degree from an educational 
institution that requires at least the standard 120 semester (or 180 
quarter) credit hours for completion in a STEM field; or
    (ii) Leads to a teaching certification; or
    (iii) Leads to dual degrees that include a STEM undergraduate 
degree; or
    (iv) Is a covered clinical training program for health care 
professionals.
    These criteria are described by the following table--

          Program of Education Eligibility for STEM Scholarship
------------------------------------------------------------------------
                                   Secondary degree/      Eligible for
  Initial degree/program type        program type       STEM scholarship
------------------------------------------------------------------------
Enrolled in a standard,         None..................  Yes.
 undergraduate degree program
 in an approved STEM field.
Enrolled in a standard,         Enrolled in a           Yes.
 undergraduate degree program    standard,
 in a non-STEM field.            undergraduate degree
                                 program in an
                                 approved STEM field.
Enrolled in a standard,         Enrolled in a graduate  No.
 undergraduate degree program    degree program in an
 in a Non-STEM field.            approved STEM field.
Completed a standard,           Enrolled in a covered   Yes.
 undergraduate degree program    clinical training
 in an approved STEM field.      program for health
                                 care professionals or
                                 a program of
                                 education leading to
                                 a teaching
                                 certification.
Completed a graduate degree     Enrolled in a covered   Yes.
 program in an approved STEM     clinical training
 field.                          program for health
                                 care professionals.
Enrolled in a graduate degree   None..................  No.
 program in a non-STEM field.
------------------------------------------------------------------------
* Chart assumes that all other requirements are met.

    (d) Applying for STEM Scholarship. Individuals shall apply for the 
STEM Scholarship by completing the appropriate electronic form 
prescribed by the Secretary. A portion of the form must be completed by 
the School Certifying Official (SCO) within 12 months of the date VA 
receives the application. Only complete applications will be considered 
for the STEM Scholarship. VA reserves the authority to deny the 
application if the school fails to provide the requested information 
within the allotted time frame. Denied applicants may reapply; 
reapplications from scholarship recipients who reach their delimiting 
date per 38 U.S.C. 3321 or exhaust their scholarship award assistance 
under paragraph (i) of this section will be denied.
    (e) Beginning dates. VA will determine the beginning date of a 
scholarship award under this section. In no case will the beginning 
date be earlier than August 1, 2019. The recipient is required to begin 
using the benefit within six months of their selection or the 
scholarship will be forfeited. When an eligible individual enters or 
reenters into a program of education (including a reentrance following 
a change of program or educational institution), the beginning date of 
his or her award of educational assistance under this section will be 
the latest of the following dates:
    (1) August 1, 2019;
    (2) Participant's first day of class; or
    (3) The first day of class after the participant exhausts the 
remaining Post 9/11 GI Bill entitlement.
    (f) Discontinuance date. The period of eligibility for an 
individual awarded educational assistance under this section will 
terminate on the earliest of the following:
    (1) A discontinuance date per Sec.  21.9635 (discontinuance dates 
per Sec.  21.9635 will be applied to this scholarship); or
    (2) Two years from the beginning date of the award as specified 
under paragraph (e) of this section.
    (g) Priority selection.
    (1) VA will establish monthly cohorts of scholarship applicants for 
the purpose of performing prioritization under 38 U.S.C. 3320(c).
    (i) Candidates will be selected from each monthly cohort on the 7th 
calendar day of each month.
    (ii) A scholarship will be awarded if:
    (A) Funds are available at the time of selection; and
    (B) The applicant is of sufficient priority over other applicants 
in the respective monthly cohort.
    (2) For enrollment periods that begin before January 5, 2021, VA 
will give the following individuals priority consideration:
    (i) Eligible individuals who require the most remaining program 
credit hours to complete their program of education; and
    (ii) Individuals who are entitled to the 100 percent educational 
assistance rate under 38 U.S.C. 3311(b)(1), (2), (8), (9), (10), or 
(11).
    (3) For enrollment periods that begin on or after January 5, 2021, 
in the event that there are not sufficient funds

[[Page 1732]]

available in a fiscal year to provide additional benefits under this 
section to all eligible individuals, VA will give the following 
individuals priority consideration in the order listed. Eligible 
applicants within each group will be further prioritized based on the 
most remaining required credit hours:
    (i) Individuals enrolled in an undergraduate degree program in a 
STEM field;
    (ii) Individuals enrolled in a program of education leading to a 
teaching certificate;
    (iii) Individuals enrolled in a dual degree program where the 
individual is pursuing both an undergraduate degree in a STEM field and 
a graduate degree in a STEM field;
    (iv) Individuals who have earned an undergraduate degree and are 
enrolled in a covered clinical training program for health care 
professionals;
    (v) Individuals who have earned a graduate degree and are enrolled 
in a covered clinical training program for health care professionals;
    (vi) All other eligible individuals.
    (h) Notices of decisions.
    (1) VA will provide written notice of a decision on an application 
made under this section, which shall clearly state the reasons for the 
decision and shall provide an explanation of the procedure for 
obtaining review of the decision. Each notification shall also include 
all of the following:
    (i) Identification of the issues adjudicated.
    (ii) A summary of the evidence considered by the Secretary.
    (iii) A summary of the applicable laws and regulations.
    (iv) Identification of findings favorable to the claimant.
    (v) In the case of a denial, identification of elements not 
satisfied leading to the denial.
    (vi) An explanation of how to obtain or access evidence used in 
making the decision.
    (2) If VA denies an application due to ineligibility, VA shall 
state the specific eligibility criteria that the application did not 
satisfy. In the event that an applicant meets all the eligibility 
criteria but there is inadequate funding in the academic year, VA will 
notify the applicant that VA cannot approve the application due to 
limited funding. VA may issue an acknowledgement letter to inform the 
applicant that they meet the eligibility criteria but have not yet been 
selected. VA will issue a selection letter if they are selected.
    (i) Amount of assistance. An eligible individual may receive 
additional educational assistance under this section, not to exceed a 
total of 9 months or $30,000. Additional assistance under this section 
may consist of--
    (1) Payment of tuition and fees directly to the educational 
institution in accordance with the rules in Sec. Sec.  21.9640 and 
21.9641;
    (2) A monthly housing allowance in accordance with the rules in 
Sec. Sec.  21.9640(b) and 21.9641(c); and
    (3) A book stipend in accordance with the rules in Sec. Sec.  
21.9640(b) and 21.9641(d).
    (j) Additional assistance under Yellow Ribbon Program. An eligible 
individual who receives additional assistance under the Yellow Ribbon 
Program may receive contributions from a school under Sec.  21.9700. 
However, VA cannot match any dollar amount provided by the school.
    (k) Prohibition on transfer of benefits. An eligible individual who 
receives additional educational assistance under this section is 
prohibited from transferring such additional assistance to a dependent.
    (l) Exclusion from aggregate assistance limitation. Any additional 
benefits received under this section may not be counted toward the 
aggregate 48-month benefits limitation contained in 38 U.S.C. 3695(a).
    (m) Definitions. For the purposes of this section the following 
definitions apply.
    (1) STEM field means a field included in the Department of 
Education's Classification of Instructional Programs taxonomy within 
the two-digit series containing biological or biomedical science, 
physical science, science technologies or technicians, computer and 
information science and support services, mathematics or statistics, 
engineering, engineering technologies or an engineering-related field, 
a health profession or related program, an agriculture science or 
natural resources science program, or other subjects and fields 
identified by the Secretary as meeting national needs.
    (i) The Secretary, or his or her designee, will maintain the STEM 
Designated Degree Program List, which will be a complete list of 
qualifying degree program categories, published on a website maintained 
by VA for such purposes. Changes that are made to the STEM Designated 
Degree Program List, including new subjects or fields identified by the 
Secretary to meet national needs, will be published in a notice in the 
Federal Register.
    (ii) The Secretary, or his or her designee, may identify other 
subjects or fields as meeting national needs. In general, other 
subjects and fields identified as meeting national needs will involve 
research, innovation, or development of new technologies using 
engineering, mathematics, health care, computer science, or natural 
sciences.
    (iii) The Secretary, or his or her designee, shall notify Congress 
90 days before approving any additional subjects or fields on the basis 
of meeting national needs and shall submit any analysis of labor market 
supply and demand used to identify such subjects or fields.
    (2) Covered clinical training program for health care professionals 
means clinical training required for a health care professional to be 
licensed to practice in a state or locality. This includes medical 
residencies and does not include clinical training that is part of an 
undergraduate or graduate degree program.

(Authority: 38 U.S.C. 3311, 3313, 3320, 3321, 3471, 3695, 
5101(a)(1)(A), 5104)

[FR Doc. 2026-00634 Filed 1-14-26; 8:45 am]
BILLING CODE 8320-01-P


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Indexed from Federal Register on January 15, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.