This document reports the testimony and written statements given at a congressional hearing concerning the Montgomery GI Bill and proposed changes to it. Testimony and prepared statements were given by members of Congress and by representatives of the various branches of the Armed Services, active and retired service personnel, and veterans' organizations. During the hearings, those testifying supported proposals for changes in the GI Bill that would, among other things, provide more money for flight training for peacetime veterans, make educational benefits transferrable to a veteran's dependents, pay a deceased or disabled veteran's dependents for the benefits accrued under the bill, and allow recruits who initially refused to participate in the GI Bill plan to change their mind later. Witnesses testified that these and other changes are needed in order to recruit and retain capable young persons in the Armed Services and in order to make the Montgomery GI Bill provisions fairer to all service members. (KC)