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. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center