WASHINGTON -- A bipartisan panel urged broad expansion of military and veterans benefits on Thursday, including a new GI Bill promising full college scholarships in exchange for four years of active duty.

The scholarships would cover any institution of higher learning, from inexpensive community colleges to Ivy League schools.

Veterans' groups applauded the ambitious package, which also calls for more generous terms on VA home loans, better health services and a tax-deferred investment program for the military.

But it could face a multitude of jurisdictional disputes in Congress and among federal agencies.

''Some programs have simply become outdated,'' said Anthony J. Principi, chairman of the congressionally appointed Commission on Servicemembers and Veterans Transition Assistance.

In all, the 12-member panel recommended 100 changes, representing the biggest projected overhaul in benefits since the 1950s. Eligible beneficiaries include some 26 million veterans and 8.4 million in the military.

Butch Miller, national commander of the American Legion, the nation's largest veterans' group, applauded the proposals, saying they would ''get the nation back on track.''

''The danger signals are clear. We need to make some fundamental improvements in the benefits available to our service members and our veterans,'' he said.

He noted that some of the recommendations -- particularly the GI Bill overhaul -- would essentially restore benefits available to returning World War II soldiers that have eroded since.

If adopted by Congress, the government would pay for full college costs for veterans who served at least four years on active duty, regardless of the cost; plus pay a $400-a-month stipend for up to 36 months.
Furthermore, the Pentagon could transfer this benefit to other family members as a re-enlistment incentive.

The program ''will open the door of the military to a much broader cross section of America's youth,'' Principi said.

High school graduates may start viewing the military as a route to a full college education, rather than as a detour, Principi said.
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