The Servicemen’s Readjustment Act of 1944, frequently referenced in Advanced Placement United States History courses, provided a range of benefits to returning World War II veterans. These benefits included low-cost mortgages, low-interest loans to start a business, cash payments of tuition and living expenses to attend college or vocational/technical school, as well as one year of unemployment compensation. Its passage sought to prevent a resurgence of the economic instability that followed World War I.
The significance of this legislation lies in its transformative impact on American society. It facilitated the growth of the middle class by making homeownership more accessible and democratizing higher education. This, in turn, fueled economic expansion and reshaped the demographic landscape of the nation. The Act offered opportunities previously unavailable to many, contributing to increased social mobility and a more educated workforce. However, access to these benefits was not equally distributed, with racial discrimination limiting the advantages for many African American veterans.