Testimonies on H.R. 1400, the Veterans' Education Assistance Act of 1981, which calls for a new GI bill education and training program for the All-Volunteer Force, are presented. The nature of the GI Bill is reviewed both historically and within the context of the present needs of the All-Volunteer Force. H.R. 1400 is designed to provide education assistance to accomplish three basic goals: readjustment assistance, recruitment incentive, and retention capability. The bill would allow a person with a high school graduate diploma to come on active duty and, for each month of good service, be eligible for $250 of educational benefits. In addition, after 6 years, a person would be eligible for $550 a month for 36 months. An important part of the bill is the transferability of these educational benefits by the individual in the service to a spouse, or to children, after serving at least 8 years. In addition, the bill would establish a preservice education program, which would have discretionary authority to allow an individual to complete his or her education and training program prior to coming into the service, and the individual would be obligated to pay back 1 month of service for each month of educational benefits provided. Among the 32 witnesses offering testimony were leading experts from the military, reserve and active duty associations, veterans organizations, military dependents, representatives of the education community, and leading experts in the field of recruitment and retention with the Armed Forces. Statements submitted by AMVETS and the Paralyzed Veterans of America are included. (SW)