Reservists Catch a Break: New Bill Forces Public Colleges to Offer In-State Tuition to Guard and Reserve Members Using Chapter 1606 Benefits

The Montgomery GI Bill Selected Reserves Tuition Fairness Act of 2025 is a straightforward piece of legislation that closes a loophole in educational benefits for military reservists. Essentially, this bill requires public colleges and universities to charge members of the National Guard and Reserves the in-state tuition rate if they are using their educational benefits under the Chapter 1606 program (often called the MGIB-SR).

If a public institution refuses to offer this in-state rate to these reservists, the Department of Veterans Affairs (VA) must step in and disapprove the courses offered by that school for this specific benefit program. Think of it as the VA telling the school, “Play fair, or we won’t pay your students.” These new rules take effect for academic periods beginning on or after August 1, 2026.

Leveling the Field for the Guard and Reserve

Existing law already requires public schools to offer in-state tuition to veterans using the main GI Bill programs (Chapters 31, 33, and 35). This bill simply adds Chapter 1606—the benefit specifically for the Selected Reserve—to that list. This means that if you’re a reservist who lives in one state but serves in a unit that drills in another, or if you move for service-related reasons, you won't get hit with the significantly higher out-of-state tuition bill just because you're using your earned benefits.

For a reservist working a full-time job while attending school—say, a construction manager who drills one weekend a month—this change is a big deal for the bottom line. Out-of-state tuition can easily cost two to three times more than in-state tuition. By extending this protection, the bill ensures that the educational benefit they earned through service actually covers their education without massive out-of-pocket costs.

The Institutional Impact and The Deadline

While this is a clear win for military personnel, it does place a mandate on public colleges. Institutions that currently charge out-of-state rates to these reservists will need to change their policies by the August 1, 2026, deadline. This might slightly affect their revenue streams, as they will be receiving the lower in-state rate for these students instead of the higher out-of-state rate.

However, the consequence for non-compliance is significant: the VA will pull its approval for the school to accept Chapter 1606 funds. For most public schools, losing access to any federal education funding stream is a major deterrent, ensuring high compliance. The bill is highly specific and technical, primarily modifying Section 3679 of Title 38, U.S.C., to include the Chapter 1606 language wherever the other major GI Bill chapters are mentioned, leaving little room for misinterpretation.