The G.I Bill is still in use. As a matter of fact, in 2012, the Montgomery GI Bill full-time imbursement rate increased to $1,564 for the 2013 financial year. The G.I benefits are extremely generous to start.
Gatorblu's answer is wrong! It isn't the GI Bill that was put on hold - it was Tuition Assistance, which is something completely different. But now the services have restored it back to the way it was.
When you are talking about the "GI Bill", it is important to know which one you are talking about as there are currently 8 of them. In addition to the Montgomery GI Bill - Active Duty that Davesmust talked about, the New Post 9/11 GI Bill is another popular one.
Under it, the VA pays your tuition directly to your school. Monthly you get a housing allowance that in many places is as much or more than what you get under the Montgomery GI Bill - Active Duty (and you have to pay your own tuition under that GI Bill).
Each semester you also get a book stipend that is calculated at $41.67 per credit, however there is a $1,000 yearly cap, but it is enough for two 12-credit semester per year.