Servicemen's Readjustment Act

Definition of 'Servicemen's Readjustment Act'


A United States law that provided benefits to military veterans. Benefits provided by the Servicemen’s Readjustment Act included loans and mortgages at low interest rates, unemployment compensation, and more commonly known, payments to cover college tuition and board. These benefits were available to any veteran, male or female, who had served during WWII, provided he or she served for at least 90 days and was not dishonorably discharged. Combat service was not a requirement. The law was signed on June 22, 1944.

Investopedia explains 'Servicemen's Readjustment Act'


During WWII, the U.S. federal government sought a way to reintegrate veterans when they returned from service. The U.S. Department of Labor estimated upwards of 15 million veterans would be coming home, and without a program in place, they could overwhelm the labor market. Memories of the poor treatment of veterans following WWI was relatively fresh in politicians’ minds, as well as protests like the Bonus March and the creation of shanty towns (dubbed “Hoovervilles” after President Herbert Hoover).

The effects of the law were considered positive. Low-interest mortgages helped fuel a housing boom, with many veterans moving out of urban areas to suburban communities. By the time the law expired more than four million home loans had been granted. Nearly half of all veterans used the tuition benefit to go to college or to attend other training programs, with nearly $14.5 billion in funding dispersed.

While the law expired in 1956, the Servicemen’s Readjustment Act’s nickname, the G.I. Bill, has been used to describe other veterans’ benefit programs in subsequent years.



comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
Trading Center