DECATUR Â ;- A new federal law will set aside $62 billion to cover the college costs of veterans of the wars following 9/11, U.S. Sen. Dick Durbin said Monday.

The Illinois Democrat addressed a small gathering of reporters in front of the Civil War memorial in Fairview Park.

Durbin said the last GI Bill, offered to the 16 million veterans of World War II, created a new class of Americans and stimulated the economy.

"Eight million of them took us up on that offer, and they changed America," Durbin said. "We want to do the same thing today with the thousands who have served overseas in Iraq and Afghanistan."

The bill, signed into law Monday by President Bush, provides full tuition coverage to any instate college, as well as a new monthly housing stipend to veterans with three years of military service since Sept. 11, 2001.

Under the earlier version of the GI Bill, the government covered a total of about $9,900 a year in educational costs, and did not pay for housing.

Durbin said the bill succeeded, despite opposition from some senators and the president.

"This is a controversial bill," Durbin said. "The White House questioned whether they could support it, but we pushed hard for it."

Durbin said reservists and national guardsmen also would be eligible for benefits under the new bill, and those with less than three years of service would receive benefits in proportion to the amount of time they served.

The bill provides for $62 billion in benefits to veterans. The senator said it will be "money well spent."

"I can tell you that the cost of this is going to be less than one month of this war in Iraq," Durbin said. "It's going to have a dramatic impact on the lives of these veterans in the process. When we sit down and measure the positive impact on America, it is well worth every penny."

The veterans' benefits come as part of a $162 billion appropriation to fund the war in Iraq.

Some opponents have characterized the bill as a giveaway. Sen. Lindsey Graham, R-S.C., told The Associated Press recently that the new GI Bill would "give $52 billion to the people who will leave the military and nothing for those who will stay."

At a meeting with the Herald & Review editorial board, Durbin talked about a health care plan for small businesses that aims to lower health insurance costs by increasing their ability to shop for more competitive rates. The plan also would provide tax credits to businesses that cover a portion of their employees' insurance.

"It gives people a chance to get into a pool of small businesses and purchase insurance through these pools," Durbin said.

Dubbed the Small Business Health Options Program, Durbin said it would be an issue for the next Congress.

The bill already has gathered bipartisan support and has earned backing from groups such as the National Federation of Independent Business, the National Association of Realtors, the National Association of Home Builders and the American College of Obstetricians & Gynecologists.

Kenneth Lowe can be reached at klowe@herald-review.com or 421-7985.