[House Prints 111-3]
[From the U.S. Government Publishing Office]




111TH CONGRESS                      HOUSE COMMITTEE PRINT NO. 3"  
1st Session 







                             TITLE 38-UNITED STATES CODE 
                                       
                                  VETERANSï¿½ BENEFITS 
                                           
                                           
            AS AMENDED THROUGH P.L. 111-5, Enacted February 17, 2009 
            
                                       AND THE 

                         SERVICEMEMBERS CIVIL RELIEF ACT
                         
                         
  AS AMENDED THROUGH P.L. 110-389, Enacted October 10, 2008 






MAY 1, 2009.-Printed for the use of the Committee on Veteransï¿½ Affairs 
of the House of Representatives 







TITLE 38-UNITED STATES CODE, VETERANSï¿½ BENEFITS
SERVICEMEMBERS CIVIL RELIEF ACT 


 


111TH CONGRESS                HOUSE COMMITTEE PRINT NO. 3"  
1st Session 


 
                       TITLE 38-UNITED STATES CODE 

                           VETERANSï¿½ BENEFITS 

    AS AMENDED THROUGH P.L. 111-5, Enacted February 17, 2009 

                               AND THE 
                               
                  SERVICEMEMBERS CIVIL RELIEF ACT 

    AS AMENDED THROUGH P.L. 110-389, Enacted October 10, 2008 




        


MAY 1, 2009.-Printed for the use of the Committee on Veteransï¿½ Affairs
               of the House of Representatives
               
               U.S. GOVERNMENT PRINTING OFFICE 
49-552                    WASHINGTON : 2009
----------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Printing 
Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; 
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Washington, DC 20402-0001




                   COMMITTEE ON VETERANSï¿½ AFFAIRS
                   
                  BOB FILNER, California, Chairman 


CORRINE BROWN, Florida                STEVE BUYER, Indiana, Ranking
VIC SNYDER, Arkansas                  CLIFF STEARNS, Florida
MICHAEL H. MICHAUD, Maine             JERRY MORAN, Kansas 
STEPHANIE HERSETH SANDLIN, South      HENRY E. BROWN, JR., South Carolina 
  Dakota                              JEFF MILLER, Florida 
HARRY E. MITCHELL, Arizona            JOHN BOOZMAN, Arkansas
JOHN J. HALL, New York                BRIAN P. BILBRAY, California           
DEBORAH L. HALVORSON, Illinois        DOUG LAMBORN, Colorado  
THOMAS S.P. PERRIELLO, Virginia       GUS M. BILIRAKIS, Florida  
HARRY TEAGUE, New Mexico              VERN BUCHANAN, Florida 
CIRO D. RODRIGUEZ, Texas              DAVID P. ROE, Tennessee 
JOE DONNELLY, Indiana 
JERRY MCNERNEY, California 
ZACHARY T. SPACE, Ohio 
TIMOTHY J. WALZ, Minnesota 
JOHN H. ADLER, New Jersey 
ANN KIRKPATRICK, Arizona 
GLENN C. NYE, Virginia 

                    MALCOM A. SHORTER, Staff Director 










                              (II) 









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                      TITLE 38, UNITED STATES CODE - 
                            VETERANSï¿½ BENEFITS


[AS AMENDED THROUGH P.L. 111-5, ENACTED FEBRUARY 17, 2009] 




-----------------------------------------------------------------------





             
HOW TO FIND SUBSEQUENT AMENDMENTS 

For changes after the closing date of this document (February 
17, 2009) to any section of title 38, United States Code, see the 
United States Code Classification Tables published by the Office of 
the Law Revision Counsel of the House of Representatives at

http://uscode.house.gov/classification/tables.shtml 

(ii) 












TITLE 38-VETERANSï¿½ BENEFITS 

[This table of parts and chapters and the following table of sections 
are notpart of the statutory text of title 38 and are included for the 
convenience 
of the reader.] 

PARTS OF TITLE 38 

PART 

I. GENERAL PROVISIONS. 
II. GENERAL BENEFITS. 
III. READJUSTMENT AND RELATED BENEFITS. 
IV. GENERAL ADMINISTRATIVE PROVISIONS. 
V. BOARDS, ADMINISTRATIONS, AND SERVICES. 
VI. ACQUISITION AND DISPOSITION OF PROPERTY. 
CHAPTERS OF TITLE 38 

PART I-GENERAL PROVISIONS 

CHAPTER 

1. GENERAL. 
3. DEPARTMENT OF VETERANS AFFAIRS. 
5. AUTHORITY AND DUTIES OF THE SECRETARY. 
7. EMPLOYEES. 
9. SECURITY AND LAW ENFORCEMENT ON PROPERTY UNDER 
THE JURISDICTION OF THE DEPARTMENT.
PART II-GENERAL BENEFITS 

CHAPTER 

11. COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR 
DEATH. 
13. DEPENDENCY AND INDEMNITY COMPENSATION FOR SERV
ICE-CONNECTED DEATHS. 
15. PENSION FOR NON-SERVICE-CONNECTED DISABILITY OR 
DEATH OR FOR SERVICE. 
17. HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL 
CARE. 
18. BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND CER
TAIN OTHER VETERANS. 
19. INSURANCE. 
20. BENEFITS FOR HOMELESS VETERANS. 
21. SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS. 
23. BURIAL BENEFITS. 
24. NATIONAL CEMETERIES AND MEMORIALS. 





(iii) 






Title 38, United States Code-Table of Contents 

PART III-READJUSTMENT AND RELATED BENEFITS 

CHAPTER 

30. ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PRO
GRAM. 
31. TRAINING AND REHABILITATION FOR VETERANS WITH SERV
ICE-CONNECTED DISABILITIES. 
32. POST-VIETNAM ERA VETERANSï¿½ EDUCATIONAL ASSISTANCE. 
33. POST-9-11 EDUCATIONAL ASSISTANCE. 
34. VETERANSï¿½ EDUCATIONAL ASSISTANCE. 
35. SURVIVORSï¿½ AND DEPENDENTSï¿½ EDUCATIONAL ASSISTANCE. 
36. ADMINISTRATION OF EDUCATIONAL BENEFITS. 
37. HOUSING AND SMALL BUSINESS LOANS. 
39. AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN 
DISABLED VETERANS AND MEMBERS OF THE ARMED 
FORCES. 
41. JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR 
VETERANS. 
42. EMPLOYMENT AND TRAINING OF VETERANS. 
43. EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS 
OF THE UNIFORMED SERVICES.
PART IV-GENERAL ADMINISTRATIVE PROVISIONS 

CHAPTER 

51. CLAIMS, EFFECTIVE DATES, AND PAYMENTS. 
53. SPECIAL PROVISIONS RELATING TO BENEFITS. 
55. MINORS, INCOMPETENTS, AND OTHER WARDS. 
57. RECORDS AND INVESTIGATIONS. 
59. AGENTS AND ATTORNEYS. 
61. PENAL AND FORFEITURE PROVISIONS. 
63. OUTREACH ACTIVITIES. 
PART V-BOARDS, ADMINISTRATIONS, AND SERVICES 

CHAPTER 

71. BOARD OF VETERANSï¿½ APPEALS. 
72. UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS. 
73. VETERANS HEALTH ADMINISTRATION - ORGANIZATION AND 
FUNCTIONS. 
74. VETERANS HEALTH ADMINISTRATION - PERSONNEL. 
75. RENUMBERED 78 AND TRANSFERRED. 
76. HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PRO
GRAM. 
77. VETERANS BENEFITS ADMINISTRATION. 
78. VETERANSï¿½ CANTEEN SERVICE. 
79. INFORMATION SECURITY EDUCATION ASSISTANCE PRO
GRAM.
PART VI-ACQUISITION AND DISPOSITION OF PROPERTY 

CHAPTER 

81. ACQUISITION AND OPERATION OF HOSPITAL AND DOMI
CILIARY FACILITIES; PROCUREMENT AND SUPPLY; EN
HANCED-USE LEASES OF REAL PROPERTY. 
82. ASSISTANCE IN ESTABLISHING NEW STATE MEDICAL 
SCHOOLS; GRANTS TO AFFILIATED MEDICAL SCHOOLS; AS
SISTANCE TO HEALTH MANPOWER TRAINING INSTITU
TIONS. 
83. ACCEPTANCE OF GIFTS AND BEQUESTS. 
85. DISPOSITION OF DECEASED VETERANSï¿½ PERSONAL PROP
ERTY. 







SECTIONS OF TITLE 38 
TITLE 38-VETERANSï¿½ BENEFITS 
PART I-GENERAL PROVISIONS 
CHAPTER 1-GENERAL 
Sec. 
101. Definitions. 
102. Dependent parents. 
103. Special provisions relating to marriages. 
104. Approval of educational institutions. 
105. Line of duty and misconduct. 
106. Certain service deemed to be active service. 
107. Certain service deemed not to be active service. 
108. Seven-year absence presumption of death. 
109. Benefits for discharged members of allied forces. 
110. Preservation of disability ratings. 
111. Payments or allowances for beneficiary travel. 
112. Presidential memorial certificate program. 
113. Treatment of certain programs under sequestration procedures. 
114. Multiyear procurement. 
115. Acquisition of real property. 
116. Reports to Congress: cost information. 
CHAPTER 3-DEPARTMENT OF VETERANS AFFAIRS 
Sec. 
301. Department. 
302. Seal. 
303. Secretary of Veterans Affairs. 
304. Deputy Secretary of Veterans Affairs. 
305. Under Secretary for Health. 
306. Under Secretary for Benefits. 
307. Under Secretary for Memorial Affairs. 
308. Assistant Secretaries; Deputy Assistant Secretaries. 
309. Chief Financial Officer. 
310. Chief Information Officer. 
311. General Counsel. 
312. Inspector General. 

312A. Director of Construction and Facilities Management. 

313. Availability of appropriations. 
314. Central Office. 
315. Regional offices. 
316. Colocation of regional offices and medical centers. 
317. Center for Minority Veterans. 
318. Center for Women Veterans. 
319. Office of Employment Discrimination Complaint Adjudication. 
320. Department of Veterans Affairs-Department of Defense Joint 
Executive Committee. 
321. Office of Survivors Assistance. 
322. Office of National Veterans Sports Programs and Special Events. 








(v) 












Title 38, United States Code-Table of Sections 

CHAPTER 5-AUTHORITY AND DUTIES OF THE SECRETARY 

SUBCHAPTER I-GENERAL AUTHORITIES 

Sec. 

501. Rules and regulations. 
502. Judicial review of rules and regulations. 
503. Administrative error; equitable relief. 
505. Opinions of Attorney General. 
510. Authority to reorganize offices. 
511. Decisions of the Secretary; finality. 
512. Delegation of authority; assignment of functions and duties. 
513. Contracts and personal services. 
515. Administrative settlement of tort claims. 
516. Equal employment responsibilities. 
SUBCHAPTER II-SPECIFIED FUNCTIONS 

Sec. 

521. Assistance to certain rehabilitation activities. 
521A. Assistance for United States Paralympics, Inc. 
522. Studies of rehabilitation of disabled persons. 
523. Coordination and promotion of other programs affecting veterans and 
their dependents. 
525. Publication of laws relating to veterans. 
527. Evaluation and data collection. 
529. Annual report to Congress. 
530. Annual report on program and expenditures for domestic response to 
weapons of mass destruction. 
531. Requirement relating to naming of Department property. 
532. Authority to advertise in national media. 
SUBCHAPTER III-ADVISORY COMMITTEES 

Sec. 

541. Advisory Committee on Former Prisoners of War. 
542. Advisory Committee on Women Veterans. 
543. Advisory Committee on Prosthetics and Special-Disabilities 
Programs. 
544. Advisory Committee on Minority Veterans. 
545. Advisory Committee on the Readjustment of Veterans. 
546. Advisory Committee on Disability Compensation. 
CHAPTER 7-EMPLOYEES 

Sec. 

701. Placement of employees in military installations. 
703. Miscellaneous authorities respecting employees. 
705. Telephone service for medical officers and facility directors. 
707. Benefits for employees at overseas offices who are United States 
citizens. 
709. Employment restrictions. 
711. Grade reductions. 
[712. Repealed]. 

CHAPTER 9-SECURITY AND LAW ENFORCEMENT ON PROPERTY UNDER THE JURISDICTION 
OF THE DEPARTMENT 

Sec. 

901. Authority to prescribe rules for conduct and penalties for violations. 
902. Enforcement and arrest authority of Department police officers. 
903. Uniform allowance. 
904. Equipment and weapons. 
905. Use of facilities and services of other law enforcement agencies. 

Title 38, United States Code-Table of Sections 

PART II-GENERAL BENEFITS 


CHAPTER 11-COMPENSATION FOR SERVICE-CONNECTED 
DISABILITY OR DEATH 


SUBCHAPTER I-GENERAL 


Sec. 
1101. Definitions. 
1102. Special provisions relating to surviving spouses. 
1103. Special provisions relating to claims based upon effects of 
tobacco prod


ucts. 
1104. Cost-of-living adjustments. 

SUBCHAPTER II-WARTIME DISABILITY COMPENSATION 

Sec. 
1110. Basic entitlement. 
1111. Presumption of sound condition. 
1112. Presumptions relating to certain diseases and disabilities. 
1113. Presumptions rebuttable. 
1114. Rates of wartime disability compensation. 
1115. Additional compensation for dependents. 
1116. Presumptions of service connection for diseases associated with 
exposure 


to certain herbicide agents; presumption of exposure for veterans who 

served in the Republic of Vietnam. 
1117. Compensation for disabilities occurring in Persian Gulf War 
veterans. 
1118. Presumptions of service connection for illnesses associated with 
service in 

the Persian Gulf during the Persian Gulf War. 

SUBCHAPTER III-WARTIME DEATH COMPENSATION 

Sec. 
1121. Basic entitlement. 
1122. Rates of wartime death compensation. 


SUBCHAPTER IV-PEACETIME DISABILITY COMPENSATION 

Sec. 
1131. Basic entitlement. 
1132. Presumption of sound condition. 
1133. Presumptions relating to certain diseases. 
1134. Rates of peacetime disability compensation. 
1135. Additional compensation for dependents. 
[1136. Repealed]. 
1137. Wartime presumptions for certain veterans. 


SUBCHAPTER V-PEACETIME DEATH COMPENSATION 

Sec. 
1141. Basic entitlement. 
1142. Rates of peacetime death compensation. 
[1143. Repealed]. 


SUBCHAPTER VI-GENERAL COMPENSATION PROVISIONS 

Sec. 
1151. Benefits for persons disabled by treatment or vocational 
rehabilitation. 
1152. Persons heretofore having a compensable status. 
1153. Aggravation. 
1154. Consideration to be accorded time, place, and circumstances of 
service. 
1155. Authority for schedule for rating disabilities. 
1156. Temporary disability ratings. 
1157. Combination of certain ratings. 
1158. Disappearance. 



Title 38, United States Code-Table of Sections 

1159. Protection of service connection. 

1160. Special consideration for certain cases of loss of paired organs 
or extremities. 

1161. Payment of disability compensation in disability severance cases. 

1162. Clothing allowance. 

1163. Trial work periods and vocational rehabilitation for certain 
veterans with 
total disability ratings. 

CHAPTER 13-DEPENDENCY AND INDEMNITY 
COMPENSATION FOR SERVICE-CONNECTED DEATHS 


SUBCHAPTER I-GENERAL 


Sec. 
1301. Definitions. 
1302. Determination of pay grade. 
1303. Cost-of-living adjustments. 
1304. Special provisions relating to surviving spouses. 


SUBCHAPTER II-DEPENDENCY AND INDEMNITY 
COMPENSATION 


Sec. 

1310. Deaths entitling survivors to dependency and indemnity 
compensation. 

1311. Dependency and indemnity compensation to a surviving spouse. 

1312. Benefits in certain cases of in-service or service-connected 
deaths. 

1313. Dependency and indemnity compensation to children. 

1314. Supplemental dependency and indemnity compensation to children. 

1315. Dependency and indemnity compensation to parents. 

1316. Dependency and indemnity compensation in cases of prior deaths. 

1317. Restriction on payments under this chapter. 

1318. Benefits for survivors of certain veterans rated totally disabled 
at time of 
death. 

SUBCHAPTER III-CERTIFICATIONS 

Sec. 
1321. Certifications with respect to pay grade. 
1322. Certifications with respect to social security entitlement. 
1323. Certifications with respect to circumstances of death. 


CHAPTER 15-PENSION FOR NON-SERVICE-CONNECTED 
DISABILITY OR DEATH OR FOR SERVICE 


SUBCHAPTER I-GENERAL 


Sec. 
1501. Definitions. 
1502. Determinations with respect to disability. 
1503. Determinations with respect to annual income. 
1504. Persons heretofore having a pensionable status. 
1505. Payment of pension during confinement in penal institutions. 
1506. Resource reports and overpayment adjustments. 
1507. Disappearance. 
1508. Frequency of payment of pension benefits. 


SUBCHAPTER II-VETERANSï¿½ PENSIONS 

Sec. 
[1510. Repealed]. 
1511. Indian War veterans. 
1512. Spanish-American War veterans. 
1513. Veterans 65 years of age and older. 
1521. Veterans of a period of war. 
1522. Net worth limitation. 



Title 38, United States Code-Table of Sections 

1523. Combination of ratings. 
1524. Vocational training for certain pension recipients. 
1525. Protection of health-care eligibility. 


SUBCHAPTER III-PENSIONS TO SURVIVING SPOUSES AND 
CHILDREN 

Sec. 
[1531. Repealed]. 
1532. Surviving spouses of Civil War veterans. 
1533. Children of Civil War veterans. 
1534. Surviving spouses of Indian War veterans. 
1535. Children of Indian War veterans. 
1536. Surviving spouses of Spanish-American War veterans. 
1537. Children of Spanish-American War veterans. 
1541. Surviving spouses of veterans of a period of war. 
1542. Children of veterans of a period of war. 
1543. Net worth limitation. 
[1544. Repealed]. 


SUBCHAPTER IV-ARMY, NAVY, AIR FORCE, AND COAST 
GUARD MEDAL OF HONOR ROLL 


Sec. 
1560. Medal of Honor Roll; persons eligible. 
1561. Certificate. 
1562. Special provisions relating to pension. 


CHAPTER 17-HOSPITAL, NURSING HOME, DOMICILIARY, 
AND MEDICAL CARE 


SUBCHAPTER I-GENERAL 


Sec. 

1701. Definitions. 

1702. Presumptions: psychosis after service in World War II and 
following periods of war; mental illness after service in the Persian 
Gulf War. 

1703. Contracts for hospital care and medical services in non-Department 
facilities. 

1704. Preventive health services: annual report. 

1705. Management of health care: patient enrollment system. 

1706. Management of health care: other requirements. 

1707. Limitations. 

1708. Temporary lodging. 

SUBCHAPTER II-HOSPITAL, NURSING HOME, OR 
DOMICILIARY CARE AND MEDICAL TREATMENT 


Sec. 

1710. Eligibility for hospital, nursing home, and domiciliary care. 

1710A. Required nursing home care. 

1710B. Extended care services. 

1710C. Traumatic brain injury: plans for rehabilitation and 
reintegration into the 
community. 

1710D. Traumatic brain injury: comprehensive plan for long-term 
rehabilitation. 

1710E. Traumatic brain injury: use of non-Department facilities for 
rehabilitation. 

1711. Care during examinations and in emergencies. 

1712. Dental care; drugs and medicines for certain disabled veterans; 
vaccines. 

1712A. Eligibility for readjustment counseling and related mental 
health services. 

1712B. Counseling for former prisoners of war. 

[1713. Renumbered 1781]. 

1714. Fitting and training in use of prosthetic appliances; guide dogs; 
service 
dogs. 

1715. Tobacco for hospitalized veterans. 


Title 38, United States Code-Table of Sections 

1716. Hospital care by other agencies of the United States. 

1717. Home health services; invalid lifts and other devices. 

1718. Therapeutic and rehabilitative activities. 

1719. Repair or replacement of certain prosthetic and other appliances. 

1720. Transfers for nursing home care; adult day health care. 

1720A. Treatment and rehabilitative services for persons with drug or 
alcohol dependency. 

1720B. Respite care. 

1720C. Noninstitutional alternatives to nursing home care. 

1720D. Counseling and treatment for sexual trauma. 

1720E. Nasopharyngeal radium irradiation. 

1720F. Comprehensive program for suicide prevention among veterans. 

SUBCHAPTER III-MISCELLANEOUS PROVISIONS RELATING 
TO HOSPITAL AND NURSING HOME CARE AND MEDICAL 
TREATMENT OF VETERANS 

Sec. 

1721. Power to make rules and regulations. 

1722. Determination of inability to defray necessary expenses; income 
thresholds. 

1722A. Copayment for medications. 

1723. Furnishing of clothing. 

1724. Hospital care, medical services, and nursing home care abroad. 

1725. Reimbursement for emergency treatment. 

1726. Reimbursement for loss of personal effects by natural disaster. 

1727. Persons eligible under prior law. 

1728. Reimbursement of certain medical expenses. 

1729. Recovery by the United States of the cost of certain care and 
services. 

1729A. Department of Veterans Affairs Medical Care Collections Fund. 

1729B. Consolidated patient accounting centers. 

1730. Community residential care. 

SUBCHAPTER IV-HOSPITAL CARE AND MEDICAL TREATMENT FOR VETERANS IN THE 
REPUBLIC OF THE PHILIPPINES 

Sec. 

1731. Assistance to the Republic of the Philippines. 

1732. Contracts and grants to provide for the care and treatment of United 
States veterans by the Veterans Memorial Medical Center. 

1733. Supervision of program by the President. 

1734. Hospital and nursing home care and medical services in the United 
States. 

1735. Definitions. 

SUBCHAPTER V-PAYMENTS TO STATE HOMES 

Sec. 

1741. Criteria for payment. 

1742. Inspections of such homes; restrictions on beneficiaries. 

1743. Applications. 

1744. Hiring and retention of nurses: payments to assist States. 

1745. Nursing home care and medications for veterans with service-
connected 
disabilities. 

SUBCHAPTER VI-SICKLE CELL ANEMIA 

Sec. 
1751. Screening, counseling, and medical treatment. 
1752. Research. 
1753. Voluntary participation; confidentiality. 
1754. Reports. 
[1761 to 1764. Repealed]. 



Title 38, United States Code-Table of Sections 

SUBCHAPTER VII-TRANSFERRED 

Sec. 
[1771 to 1774. Renumbered Secs. 2031 to 2034]. 


SUBCHAPTER VIII-HEALTH CARE OF PERSONS OTHER 
THAN VETERANS 


Sec. 

1781. Medical care for survivors and dependents of certain veterans.

1782. Counseling, training, and mental health services for immediate 
family 
members. 

1783. Bereavement counseling. 

1784. Humanitarian care. 

1785. Care and services during certain disasters and emergencies. 

CHAPTER 18-BENEFITS FOR CHILDREN OF VIETNAM 
VETERANS AND CERTAIN OTHER VETERANS 


Sec. 
[1801. Repealed]. 

SUBCHAPTER I-CHILDREN OF VIETNAM VETERANS BORN 
WITH SPINA BIFIDA 

Sec. 
1802. Spina bifida conditions covered.
1803. Health care. 
1804. Vocational training and rehabilitation. 
1805. Monetary allowance. 
[1806. Repealed]. 


SUBCHAPTER II-CHILDREN OF WOMEN VIETNAM 

VETERANS BORN WITH CERTAIN BIRTH DEFECTS 

Sec. 
1811. Definitions. 
1812. Covered birth defects. 
1813. Health care. 
1814. Vocational training. 
1815. Monetary allowance. 
1816. Regulations. 


SUBCHAPTER III-CHILDREN OF CERTAIN KOREA SERVICE 
VETERANS BORN WITH SPINA BIFIDA 

Sec. 

1821. Benefits for children of certain Korea service veterans born 
with spina 
bifida. 

SUBCHAPTER IV-GENERAL PROVISIONS 

Sec. 
1831. Definitions. 
1832. Applicability of certain administrative provisions. 
1833. Treatment of receipt of monetary allowance and other benefits. 
1834. Nonduplication of benefits. 


CHAPTER 19-INSURANCE 

SUBCHAPTER I-NATIONAL SERVICE LIFE INSURANCE 

Sec. 
1901. Definitions. 


Title 38, United States Code-Table of Sections 

1902. 
1903. 
Premium rates and policy values.
Amount of insurance. 
1904. Plans of insurance. 
1905. Renewal. 
1906. 
1907. 
1908. 
1909. 
Policy provisions. 
Payment or use of dividends. 
Premium payments.
Effective date of insurance. 
1910. 
1911. 
Incontestability. 
Forfeiture. 
1912. 
1913. 
1914. 
1915. 
1916. 
1917. 
1918. 
1919. 
1920. 
Total disability waiver. 
Death before six monthsï¿½ total disability. 
Statutory total disabilities.
Total disability income provision. 
Insurance which matured before August 1, 1946. 
Insurance maturing on or after August 1, 1946. 
Assignments. 
National Service Life Insurance appropriation. 
National Service Life Insurance Fund. 
1921. Extra hazard costs. 
1922. Service disabled veteransï¿½ insurance. 
1922A. Supplemental service disabled veteransï¿½ insurance for totally 
disabled veterans. 
1923. 
1924. 
1925. 
1926. 
1927. 
1928. 
1929. 
Veteransï¿½ Special Life Insurance.
In-service waiver of premiums. 
Limited period for acquiring insurance. 
Authority for higher interest rates for amounts payable to 
beneficiaries. 
Authority for higher monthly installments payable to certain annuitants. 
Authority for payment of interest on settlements. 
Authority to adjust premium discount rates. 

SUBCHAPTER II-UNITED STATES GOVERNMENT LIFE 
INSURANCE 

Sec. 
1940. Definition. 
1941. Amount of insurance. 
1942. Plans of insurance. 
1943. Premiums. 
1944. Policy provisions. 
1945. Renewal. 
1946. Dividends to pay premiums.
1947. Incontestability. 
1948. Total disability provision. 
1949. Change of beneficiary. 
1950. Payment to estates. 
1951. Payment of insurance. 
1952. Optional settlement.
1953. Assignments. 
1954. Forfeiture. 
1955. United States Government Life Insurance Fund. 
1956. Military and naval insurance appropriation. 
1957. Extra hazard costs. 
1958. Statutory total permanent disability.
1959. Waiver of disability for reinstatement. 
1960. Waiver of premium payments on due date. 
1961. Authority for higher interest rates for amounts payable to 
beneficiaries. 
1962. Authority for higher monthly installments payable to certain 
annuitants. 
1963. Authority for payment of interest on settlements. 


SUBCHAPTER III-SERVICEMEMBERSï¿½ GROUP LIFE 
INSURANCE 

Sec. 
1965. Definitions. 
1966. Eligible insurance companies. 
1967. Persons insured; amount. 



Title 38, United States Code-Table of Sections 

1968. Duration and termination of coverage; conversion. 
1969. Deductions; payment; investment; expenses. 
1970. Beneficiaries; payment of insurance. 
1971. Basic tables of premiums; readjustment of rates. 
1972. Benefit certificates. 
1973. Forfeiture. 
1974. Advisory Council on Servicemembersï¿½ Group Life Insurance. 
1975. Jurisdiction of District Courts. 
1976. Effective date. 
1977. Veteransï¿½ Group Life Insurance. 
1978. Reinstatement. 
1979. Incontestability. 
1980. Option to receive accelerated death benefit. 
1980A. Traumatic injury protection. 


SUBCHAPTER IV-GENERAL 

Sec. 
1981. Replacement of surrendered and expired insurance. 
1982. Administrative cost. 
1983. Settlements for minors or incompetents. 
1984. Suits on insurance. 
1985. Decisions by the Secretary. 
1986. Deposits in and disbursements from trust funds. 
1987. Penalties. 
1988. Savings provision. 


CHAPTER 20-BENEFITS FOR HOMELESS VETERANS 

SUBCHAPTER I-PURPOSE; DEFINITIONS; ADMINISTRATIVE 
MATTERS 

Sec. 
2001. Purpose. 
2002. Definitions. 
2003. Staffing requirements. 


SUBCHAPTER II-COMPREHENSIVE SERVICE PROGRAMS 

Sec. 
2011. Grants. 
2012. Per diem payments. 
2013. Authorization of appropriations. 


SUBCHAPTER III-TRAINING AND OUTREACH 

Sec. 

2021. Homeless veterans reintegration programs. 

2022. Coordination of outreach services for veterans at risk of 
homelessness. 

2023. Referral and counseling services: veterans at risk of 
homelessness who are 
transitioning from certain institutions. 

SUBCHAPTER IV-TREATMENT AND REHABILITATION FOR 
SERIOUSLY MENTALLY ILL AND HOMELESS VETERANS 

Sec. 
2031. General treatment. 
2032. Therapeutic housing. 
2033. Additional services at certain locations. 
2034. Coordination with other agencies and organizations. 


SUBCHAPTER V-HOUSING ASSISTANCE 

Sec. 
2041. Housing assistance for homeless veterans. 



Title 38, United States Code-Table of Sections 

2042. Supported housing for veterans participating in compensated work 
therapies. 

2043. Domiciliary care programs. 

2044. Financial assistance for supportive services for very low-income 
veteran 
families in permanent housing. 

SUBCHAPTER VI-LOAN GUARANTEE FOR MULTIFAMILY 
TRANSITIONAL HOUSING 


Sec. 
2051. General authority.
2052. Requirements. 
2053. Default. 
2054. Audit. 


SUBCHAPTER VII-OTHER PROVISIONS 

Sec. 
2061. Grant program for homeless veterans with special needs.
2062. Dental care. 
2063. Employment assistance. 
2064. Technical assistance grants for nonprofit community-based 
groups. 
2065. Annual report on assistance to homeless veterans. 
2066. Advisory Committee on Homeless Veterans. 


CHAPTER 21-SPECIALLY ADAPTED HOUSING FOR 
DISABLED VETERANS 


Sec. 

2101. Acquisition and adaptation of housing: eligible veterans. 

2101A. Eligibility for benefits and assistance: members of the Armed 
Forces with 
service-connected disabilities; individuals residing outside the 
United 
States. 

2102. Limitations on assistance furnished. 

2102A. Assistance for individuals residing temporarily in housing 
owned by a 
family member. 

2103. Furnishing of plans and specifications. 

2104. Benefits additional to benefits under other laws. 

2105. Nonliability of United States. 

2106. Veteransï¿½ mortgage life insurance.

2107. Coordination of administration of benefits. 

CHAPTER 23-BURIAL BENEFITS 

Sec. 
2301. Flags. 
2302. Funeral expenses. 
2303. Death in Department facility; plot allowance.
2304. Claims for reimbursement. 
2305. Persons eligible under prior law. 
2306. Headstones, markers, and burial receptacles. 
2307. Death from service-connected disability. 
2308. Transportation of deceased veteran to a national cemetery. 


CHAPTER 24-NATIONAL CEMETERIES AND MEMORIALS 

Sec. 

2400. Establishment of National Cemetery Administration; composition 
of Administration. 

2401. Advisory Committee on Cemeteries and Memorials. 

2402. Persons eligible for interment in national cemeteries. 

2403. Memorial areas. 

2404. Administration. 

2405. Disposition of inactive cemeteries. 

2406. Acquisition of lands. 

2407. Authority to accept and maintain suitable memorials. 


Title 38, United States Code-Table of Sections 

2408. Aid to States for establishment, expansion, and improvement of 
veteransï¿½ 
cemeteries. 

2409. Memorial areas in Arlington National Cemetery. 

2410. Burial of cremated remains in Arlington National Cemetery. 

2411. Prohibition against interment or memorialization in the National 
Cemetery Administration or Arlington National Cemetery of persons 
committing Federal or State capital crimes. 

2412. Lease of land and buildings. 

2413. Prohibition on certain demonstrations at cemeteries under control 
of the 
National Cemetery Administration and at Arlington National Cemetery. 

PART III-READJUSTMENT AND RELATED BENEFITS 


CHAPTER 30-ALL-VOLUNTEER FORCE EDUCATIONAL 
ASSISTANCE PROGRAM 


SUBCHAPTER I-PURPOSES; DEFINITIONS 


Sec. 
3001. Purposes. 
3002. Definitions. 

SUBCHAPTER II-BASIC EDUCATIONAL ASSISTANCE 

Sec. 

3011. Basic educational assistance entitlement for service on active 
duty. 

3012. Basic educational assistance entitlement for service in the 
Selected Reserve. 

3013. Duration of basic educational assistance. 

3014. Payment of basic educational assistance. 

3014A. Accelerated payment of basic educational assistance for 
education leading 
to employment in high technology occupation in high technology 
industry. 

3015. Amount of basic educational assistance. 

3016. Inservice enrollment in a program of education. 

3017. Death benefit. 

3018. Opportunity for certain active-duty personnel to withdraw 
election not to 
enroll. 

3018A. Opportunity for certain active-duty personnel to enroll before 
being involuntarily separated from service. 

3018B. Opportunity for certain persons to enroll. 

3018C. Opportunity for certain VEAP participants to enroll. 

3019. Tutorial assistance. 

3020. Authority to transfer unused education benefits to family members 
for career service members. 

SUBCHAPTER III-SUPPLEMENTAL EDUCATIONAL 
ASSISTANCE 


Sec. 
3021. Supplemental educational assistance for additional service. 
3022. Amount of supplemental educational assistance. 
3023. Payment of supplemental educational assistance under this 
subchapter. 


SUBCHAPTER IV-TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT; 
GENERAL AND ADMINISTRATIVE PROVISIONS 

Sec. 
3031. Time limitation for use of eligibility and entitlement. 
3032. Limitations on educational assistance for certain individuals. 
3033. Bar to duplication of educational assistance benefits. 
3034. Program administration. 



Title 38, United States Code-Table of Sections 

3035. Allocation of administration and of program costs. 
3036. Reporting requirement. 

CHAPTER 31-TRAINING AND REHABILITATION FOR 
VETERANS WITH SERVICE-CONNECTED DISABILITIES 


Sec. 

3100. Purposes. 

3101. Definitions. 

3102. Basic entitlement. 

3103. Periods of eligibility. 

3104. Scope of services and assistance. 

3105. Duration of rehabilitation programs. 

3106. Initial and extended evaluations; determinations regarding 
serious employment handicap. 

3107. Individualized vocational rehabilitation plan. 

3108. Allowances. 

3109. Entitlement to independent living services and assistance. 

3110. Leaves of absence. 

3111. Regulations to promote satisfactory conduct and cooperation. 

3112. Revolving fund loans. 

3113. Vocational rehabilitation for hospitalized members of the Armed 
Forces 
and veterans. 

3114. Vocational rehabilitation outside the United States. 

3115. Rehabilitation resources. 

3116. Promotion of employment and training opportunities. 

3117. Employment assistance. 

3118. Personnel training, development, and qualifications. 

3119. Rehabilitation research and special projects. 

3120. Program of independent living services and assistance. 

3121. Veteransï¿½ Advisory Committee on Rehabilitation. 

3122. Longitudinal study of vocational rehabilitation programs. 

CHAPTER 32-POST-VIETNAM ERA VETERANSï¿½ 
EDUCATIONAL ASSISTANCE 


SUBCHAPTER I-PURPOSE; DEFINITIONS 


Sec. 
3201. Purpose. 
3202. Definitions. 

SUBCHAPTER II-ELIGIBILITY; CONTRIBUTIONS; AND 
MATCHING FUND 


Sec. 
3221. Eligibility. 
3222. Contributions; matching fund. 
3223. Refunds of contributions upon disenrollment. 
3224. Death of participant. 
3225. Discharge or release under conditions which would bar the use 
of benefits. 


SUBCHAPTER III-ENTITLEMENT; DURATION 

Sec. 
3231. Entitlement; loan eligibility. 
3232. Duration; limitations. 
3233. Apprenticeship or other on-job training. 
3234. Tutorial assistance. 


SUBCHAPTER IV-ADMINISTRATION 

Sec. 
3241. Requirements. 


Title 38, United States Code-Table of Sections 

[3242. Repealed]. 
3243. Deposits; reports. 

CHAPTER 33-POST-9-11 EDUCATIONAL ASSISTANCE 

SUBCHAPTER I-DEFINITIONS 

Sec. 
3301. Definitions. 

SUBCHAPTER II-EDUCATIONAL ASSISTANCE 

Sec. 

3311. Educational assistance for service in the Armed Forces commencing 
on or 
after September 11, 2001: entitlement. 

3312. Educational assistance: duration. 

3313. Educational assistance: amount; payment. 

3314. Tutorial assistance. 

3315. Licensure and certification tests. 

3316. Supplemental educational assistance: members with critical skills 
or specialty; members serving additional service. 

3317. Public-private contributions for additional educational 
assistance. 

3318. Additional assistance: relocation or travel assistance for 
individual relocating or traveling significant distance for pursuit 
of a program of education. 

3319. Authority to transfer unused education benefits to family 
members. 

SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

Sec. 
3321. Time limitation for use of and eligibility for entitlement. 
3322. Bar to duplication of educational assistance benefits. 
3323. Administration. 
3324. Allocation of administration and costs. 


CHAPTER 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 

SUBCHAPTER I-PURPOSE 

Sec. 
3451. Purpose. 
3452. Definitions. 

SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 

Sec. 
3461. Eligibility; entitlement; duration. 
3462. Time limitations for completing a program of education. 
[3463. Repealed]. 


SUBCHAPTER III-ENROLLMENT 

Sec. 
3470. Selection of program. 
3471. Applications; approval. 
[3472. Repealed]. 
[3473. Repealed]. 
3474. Discontinuance for unsatisfactory conduct or progress. 
[3475. Repealed]. 
3476. Education outside the United States. 
[3477, 3478. Repealed]. 



Title 38, United States Code-Table of Sections 

SUBCHAPTER IV-PAYMENTS TO ELIGIBLE VETERANS; 
VETERAN-STUDENT SERVICES 


Sec. 
3481. Educational assistance allowance. 
3482. Computation of educational assistance allowances. 
[3482A. Repealed]. 
3483. Approval of courses. 
3484. Apprenticeship or other on-job training; correspondence 
courses. 
3485. Work-study allowance. 
[3486, 3487. Repealed]. 


SUBCHAPTER V-SPECIAL ASSISTANCE FOR THE 
EDUCATIONALLY DISADVANTAGED 


Sec. 
3490. Purpose. 
3491. Elementary and secondary education and preparatory 
educational assist


ance. 
3492. Tutorial assistance. 
3493. Effect on educational entitlement. 
[3495 to 3498. Repealed]. 

CHAPTER 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ 
EDUCATIONAL ASSISTANCE 


SUBCHAPTER I-DEFINITIONS 


Sec. 
3500. Purpose. 
3501. Definitions. 

SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 

Sec. 
3510. Eligibility and entitlement generally. 
3511. Duration of educational assistance. 
3512. Periods of eligibility. 
3513. Application. 
3514. Processing of applications. 


SUBCHAPTER III-PROGRAM OF EDUCATION 

Sec. 
3520. Educational and vocational counseling. 
3521. Approval of application. 
[3522. Repealed]. 
3523. Disapproval of enrollment in certain courses. 
3524. Discontinuance for unsatisfactory progress. 
[3525, 3526. Repealed]. 


SUBCHAPTER IV-PAYMENTS TO ELIGIBLE PERSONS 

Sec. 
3531. Educational assistance allowance. 
3532. Computation of educational assistance allowance. 
3533. Special assistance for the educationally disadvantaged. 
3534. Apprenticeship or other on-job training; correspondence 
courses. 
3535. Approval of courses. 
3536. Specialized vocational training courses. 
3537. Work-study allowance. 
[3538. Repealed]. 



Title 38, United States Code-Table of Sections 

SUBCHAPTER V-SPECIAL RESTORATIVE TRAINING 

Sec. 
3540. Purpose. 
3541. Entitlement to special restorative training. 
3542. Special training allowance. 
3543. Special administrative provisions. 


SUBCHAPTER VI-MISCELLANEOUS PROVISIONS 

Sec. 
3561. Authority and duties of Secretary. 
3562. Nonduplication of benefits. 
3563. Notification of eligibility. 
3564. Annual adjustment of amounts of educational assistance. 


SUBCHAPTER VII-PHILIPPINE COMMONWEALTH ARMY 
AND PHILIPPINE SCOUTS 


Sec. 
3565. Children of certain Philippine veterans. 
3566. Definitions. 


CHAPTER 36-ADMINISTRATION OF EDUCATIONAL 
BENEFITS 


SUBCHAPTER I-STATE APPROVING AGENCIES 


Sec. 

3670. Scope of approval. 

3671. Designation. 

3672. Approval of courses. 

3673. Approval activities: cooperation and coordination of activities. 

3674. Reimbursement of expenses. 

3674A. Evaluations of agency performance; qualifications and 
performance of 
agency personnel. 

3675. Approval of accredited courses. 

3676. Approval of nonaccredited courses. 

3677. Approval of training on the job. 

3678. Notice of approval of courses. 

3679. Disapproval of courses. 

SUBCHAPTER II-MISCELLANEOUS PROVISIONS 

Sec. 

3680. Payment of educational assistance or subsistence allowances. 

3680A. Disapproval of enrollment in certain courses. 

3681. Limitations on educational assistance. 

3682. Control by agencies of the United States. 

3683. Conflicting interests. 

3684. Reports by veterans, eligible persons, and institutions; 
reporting fee. 

3684A. Procedures relating to computer matching program. 

3685. Overpayments to eligible persons or veterans. 

3686. Correspondence courses. 

3687. Apprenticeship or other on-job training. 

3688. Measurement of courses. 

3689. Approval requirements for licensing and certification testing. 

3690. Overcharges by educational institutions; discontinuance of 
allowances; examination of records; false or misleading statements. 

3691. Change of program. 

3692. Advisory committee. 

3693. Compliance surveys. 

3694. Use of other Federal agencies. 

3695. Limitation on period of assistance under two or more programs. 

3696. Limitation on certain advertising, sales, and enrollment 
practices. 


Title 38, United States Code-Table of Sections 

3697. 
3697A. 
Funding of contract educational and vocational counseling.
Educational and vocational counseling. 
SUBCHAPTER III-REPEALED 
Sec. 

[3698, 3699. Repealed]. 

CHAPTER 37-HOUSING AND SMALL BUSINESS LOANS 

SUBCHAPTER I-GENERAL 

Sec. 
3701. Definitions. 
3702. Basic entitlement. 
3703. Basic provisions relating to loan guaranty and insurance. 
3704. Restrictions on loans. 
3705. Warranties. 
3706. Escrow of deposits and downpayments. 
3707. Adjustable rate mortgages.
3707A. Hybrid adjustable rate mortgages. 
3708. Authority to buy down interest rates: pilot program. 


SUBCHAPTER II-LOANS 

Sec. 
3710. Purchase or construction of homes. 
3711. Direct loans to veterans. 
3712. Loans to purchase manufactured homes and lots. 
3713. Release from liability under guaranty. 
3714. Assumptions; release from liability. 
[3715. Renumbered ï¿½ 3703(a)(2).] 
[3716. Renumbered ï¿½ 1732 and 1733.] 
[3717. Renumbered ï¿½ 1713.] 
[3717A. Renumbered ï¿½ 1714.] 
[3718. Repealed.] 
[3719. Renumbered ï¿½ 3712.] 


SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

Sec. 

3720. Powers of Secretary. 

3721. Incontestability. 

3722. Veterans Housing Benefit Program Fund. 

[3723. Repealed]. 

[3724. Repealed]. 

[3725. Repealed]. 

3726. Withholding of payments, benefits, etc. 

3727. Expenditures to correct or compensate for structural defects 
in mortgaged 
homes. 

3728. Exemption from State anti-usury provisions. 

3729. Loan fee. 

3730. Use of attorneys in court. 

3731. Appraisals. 

3732. Procedure on default. 

3733. Property management. 

3734. Annual submission of information on the Veterans Housing 
Benefit Pro

gram Fund and housing programs. 

[3735. Renumbered ï¿½ 2041]. 

3736. Reporting requirements. 

SUBCHAPTER IV-SMALL BUSINESS LOANS 

Sec. 
3741. Definitions. 
3742. Small business loan program. 



Title 38, United States Code-Table of Sections 

3743. Liability on loans. 
3744. Approval of loans by the Secretary. 
3745. Interest on loans. 
3746. Maturity of loans. 
3747. Eligible financial institutions. 
3748. Preference for disabled veterans. 
3749. Revolving fund. 
3750. Incorporation of other provisions by the Secretary. 
3751. Termination of program. 


SUBCHAPTER V-DIRECT HOUSING LOANS FOR NATIVE 
AMERICAN VETERANS 


Sec. 

3761. Direct housing loans to Native American veterans; program 
authority. 

3762. Direct housing loans to Native American veterans; program 
administration. 

3763. Native American Veteran Housing Loan Program Account. 

3764. Qualified non-Native American veterans. 

3765. Definitions. 

SUBCHAPTER VI-TRANSFERRED 

Sec. 
[3771. Repealed]. 
[3772 to 3775. Renumbered ï¿½ï¿½ 2051 to 2054]. 


CHAPTER 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT 
FOR CERTAIN DISABLED VETERANS AND MEMBERS OF 
THE ARMED FORCES 

Sec. 
3901. Definitions. 
3902. Assistance for providing automobile and adaptive equipment. 
3903. Limitations on assistance; special training courses. 
3904. Research and development. 


CHAPTER 41-JOB COUNSELING, TRAINING, AND 
PLACEMENT SERVICE FOR VETERANS 


Sec. 

4100. Findings. 

4101. Definitions. 

4102. Purpose. 

4102A. Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training; program functions; Regional Administrators. 

4103. Directors and Assistant Directors for Veteransï¿½ Employment and 
Training; 
additional Federal personnel. 

4103A. Disabled veteransï¿½ outreach program. 

4104. Local veteransï¿½ employment representatives. 

[4104A. Repealed]. 

4105. Cooperation of Federal agencies. 

4106. Estimate of funds for administration; authorization of 
appropriations. 

4107. Administrative controls; annual report. 

4108. Cooperation and coordination. 

4109. National Veteransï¿½ Employment and Training Services Institute. 

4110. Advisory Committee on Veterans Employment, Training, and Employer 
Outreach. 

4110A. Special unemployment study. 

4110B. Coordination and nonduplication. 

[4111. Repealed]. 

4112. Performance incentive awards for quality employment, training, and 
placement services. 

4113. Outstationing of Transition Assistance Program personnel. 

4114. Credentialing and licensure of veterans: demonstration project. 


Title 38, United States Code-Table of Sections 

CHAPTER 42-EMPLOYMENT AND TRAINING OF VETERANS 

Sec. 

4211. Definitions. 

4212. Veteransï¿½ employment emphasis under Federal contracts. 

4213. Eligibility requirements for veterans under Federal employment and 
training programs. 

4214. Employment within the Federal Government. 

4215. Priority of service for veterans in Department of Labor job 
training programs. 

CHAPTER 43-EMPLOYMENT AND REEMPLOYMENT RIGHTS 
OF MEMBERS OF THE UNIFORMED SERVICES 

SUBCHAPTER I-GENERAL 

Sec. 
4301. Purposes; sense of Congress. 
4302. Relation to other law and plans or agreements. 
4303. Definitions. 
4304. Character of service. 


SUBCHAPTER II-EMPLOYMENT AND REEMPLOYMENT 
RIGHTS AND LIMITATIONS; PROHIBITIONS 


Sec. 

4311. Discrimination against persons who serve in the uniformed services 
and acts of reprisal prohibited. 

4312. Reemployment rights of persons who serve in the uniformed services. 

4313. Reemployment positions. 

4314. Reemployment by the Federal Government. 

4315. Reemployment by certain Federal agencies. 

4316. Rights, benefits, and obligations of persons absent from employment 
for service in a uniformed service. 

4317. Health plans. 

4318. Employee pension benefit plans. 

4319. Employment and reemployment rights in foreign countries. 

SUBCHAPTER III-PROCEDURES FOR ASSISTANCE, 
ENFORCEMENT, AND INVESTIGATION 


Sec. 

4321. Assistance in obtaining reemployment or other employment rights or 
benefits. 

4322. Enforcement of employment or reemployment rights. 

4323. Enforcement of rights with respect to a State or private employer. 

4324. Enforcement of rights with respect to Federal executive agencies. 

4325. Enforcement of rights with respect to certain Federal agencies. 

4326. Conduct of investigation; subpoenas. 

4327. Noncompliance of Federal officials with deadlines; inapplicability 
of statutes of limitations. 

SUBCHAPTER IV-MISCELLANEOUS PROVISIONS 

Sec. 

4331. Regulations. 

4332. Reports. 

4333. Outreach. 

4334. Notice of rights and duties. 

4335. Training for Federal executive agency human resources personnel on 
employment and reemployment rights and limitations. 


Title 38, United States Code-Table of Sections 

PART IV-GENERAL ADMINISTRATIVE PROVISIONS 
CHAPTER 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 


SUBCHAPTER I-CLAIMS 
Sec. 
5100. Definition of claimant. 
5101. Claims and forms. 
5102. 
5103. 
5103A. 
5104. 
Application forms furnished upon request; notice to claimants of 
incomplete applications. 
Notice to claimants of required information and evidence. 
Duty to assist claimants. 
Decisions and notices of decisions. 
5105. 
5106. 
5107. 
5108. 
5109. 
5109A. 
5109B. 
Joint applications for social security and dependency and indemnity 
compensation. 
Furnishing of information by other agencies. 
Claimant responsibility; benefit of the doubt. 
Reopening disallowed claims. 
Independent medical opinions.
Revision of decisions on grounds of clear and unmistakable error. 
Expedited treatment of remanded claims. 
SUBCHAPTER II-EFFECTIVE DATES 
Sec. 
5110. Effective dates of awards. 
5111. 
5112. 
Commencement of period of payment.
Effective dates of reductions and discontinuances. 
5113. Effective dates of educational benefits. 
SUBCHAPTER III-PAYMENT OF BENEFITS 
Sec. 
5120. 
5121. 
5121A. 
Payment of benefits; delivery. 
Payment of certain accrued benefits upon death of a beneficiary.
Substitution in case of death of claimant. 
5122. 
5123. 
5124. 
5125. 
5126. 
Cancellation of checks mailed to deceased payees. 
Rounding down of pension rates. 
Acceptance of claimantï¿½s statement as proof of relationship. 
Acceptance of reports of private physician examinations. 
Benefits not to be denied based on lack of mailing address. 

CHAPTER 53-SPECIAL PROVISIONS RELATING TO 
BENEFITS 

Sec. 

5301. Nonassignability and exempt status of benefits.

5302. Waiver of recovery of claims by the United States. 

5302A. Collection of indebtedness: certain debts of members of the 
Armed Forces and veterans who die of injury incurred or aggravated in 
the line of 

duty in a combat zone.

5303. Certain bars to benefits. 

5303A. Minimum active-duty service requirement. 

5304. Prohibition against duplication of benefits. 

5305. Waiver of retired pay. 

5306. Renouncement of right to benefits. 

5307. Apportionment of benefits. 

5308. Withholding benefits of persons in territory of the enemy. 

5309. Payment of certain withheld benefits. 

5310. Payment of benefits for month of death. 

5311. Prohibition of certain benefit payments. 

5312. Annual adjustment of certain benefit rates. 

5313. Limitation on payment of compensation and dependency and indemnity 
compensation to persons incarcerated for conviction of a felony. 

5313A. Limitation on payment of clothing allowance to incarcerated 
veterans. 


Title 38, United States Code-Table of Sections 

5313B. Prohibition on providing certain benefits with respect to persons 
who are 

fugitive felons. 
5314. Indebtedness offsets. 
5315. Interest and administrative cost charges on delinquent payments of cer

tain amounts due the United States. 
5316. Authority to sue to collect certain debts. 
5317. Use of income information from other agencies: notice and 
verification. 
5317A. Use of income information from other agencies: independent 
verification 

required before termination or reduction of certain benefits and 
services. 
5318. Review of Social Security Administration death information. 
5319. Limitations on access to financial records. 

CHAPTER 55-MINORS, INCOMPETENTS, AND OTHER 
WARDS 


Sec. 
5501. Commitment actions. 
5502. Payments to and supervision of fiduciaries. 
5503. Hospitalized veterans and estates of incompetent institutionalized 
veterans. 
5504. Administration of trust funds. 
[5505. Repealed]. 
5506. Definition of fiduciary. 
5507. Inquiry, investigations, and qualification of fiduciaries. 
5508. Periodic onsite reviews of institutional fiduciaries. 
5509. Authority to require fiduciary to receive payments at regional 
offices of the Department when failing to provide required accounting. 
5510. Annual report. 

CHAPTER 57-RECORDS AND INVESTIGATIONS 

SUBCHAPTER I-RECORDS 

Sec. 
5701. Confidential nature of claims. 
5702. Furnishing of records. 
5703. Certification of records of District of Columbia. 
5704. Transcript of trial records. 
5705. Confidentiality of medical quality-assurance records. 


SUBCHAPTER II-INVESTIGATIONS 

Sec. 
5711. Authority to issue subpoenas. 
5712. Validity of affidavits. 
5713. Disobedience to subpoena. 


SUBCHAPTER III-INFORMATION SECURITY 

Sec. 
5721. Purpose.
5722. Policy. 
5723. Responsibilities. 
5724. Provision of credit protection and other services. 
5725. Contracts for data processing or maintenance. 
5726. Reports and notice to congress on data breaches. 
5727. Definitions. 
5728. Authorization of appropriations. 


CHAPTER 59-AGENTS AND ATTORNEYS 

Sec. 
5901. Prohibition against acting as claims agent or attorney. 
5902. Recognition of representatives of organizations. 
5903. Recognition with respect to particular claims. 



Title 38, United States Code-Table of Sections 

5904. Recognition of agents and attorneys generally. 
5905. Penalty for certain acts. 

CHAPTER 61-PENAL AND FORFEITURE PROVISIONS 

Sec. 
6101. Misappropriation by fiduciaries. 
6102. Fraudulent acceptance of payments. 
6103. Forfeiture for fraud. 
6104. Forfeiture for treason. 
6105. Forfeiture for subversive activities. 
6106. Misuse of benefits by fiduciaries. 
6107. Reissuance of benefits. 
6108. Authority for judicial orders of restitution. 


CHAPTER 63-OUTREACH ACTIVITIES 

Sec. 
6301. Purpose; definitions. 
6302. Biennial plan. 
6303. Outreach services. 
6304. Veterans assistance offices. 
6305. Outstationing of counseling and outreach personnel. 
6306. Use of other agencies. 
6307. Outreach for eligible dependents. 
6308. Biennial report to Congress. 


PART V-BOARDS, ADMINISTRATIONS, AND SERVICES 

CHAPTER 71-BOARD OF VETERANSï¿½ APPEALS 

Sec. 
7101. Composition of Board of Veteransï¿½ Appeals. 
7101A. Members of Board: appointment; pay; performance review. 
7102. Assignment of members of Board. 
7103. Reconsideration; correction of obvious errors. 
7104. Jurisdiction of the Board. 
7105. Filing of notice of disagreement and appeal. 
7105A. Simultaneously contested claims. 
7106. Administrative appeals. 
7107. Appeals: dockets; hearings. 
7108. Rejection of applications. 
7109. Independent medical opinions. 
[7110. Repealed]. 
7111. Revision of decisions on grounds of clear and unmistakable error. 
7112. Expedited treatment of remanded claims. 


CHAPTER 72-UNITED STATES COURT OF APPEALS FOR 
VETERANS CLAIMS 

SUBCHAPTER I-ORGANIZATION AND JURISDICTION 

Sec. 
7251. Status. 
7252. Jurisdiction; finality of decisions. 
7253. Composition. 
7254. Organization. 
7255. Offices. 
7256. Times and places of sessions. 
7257. Recall of retired judges. 


SUBCHAPTER II-PROCEDURE 

Sec. 
7261. Scope of review. 



Title 38, United States Code-Table of Sections 

7262. Fee for filing appeals. 
7263. Representation of parties; fee agreements. 
7264. Rules of practice and procedure. 
7265. Contempt authority; assistance to the Court. 
7266. Notice of appeal. 
7267. Decisions. 
7268. Availability of proceedings. 
7269. Publication of decisions. 


SUBCHAPTER III-MISCELLANEOUS PROVISIONS 

Sec. 
7281. Employees. 
7282. Budget and expenditures. 
7283. Disposition of fees. 
7284. Fee for transcript of record. 
7285. Practice and registration fees. 
7286. Judicial Conference of the Court. 
7287. Administration. 
7288. Annual report. 


SUBCHAPTER IV-DECISIONS AND REVIEW 

Sec. 
7291. Date when Court decision becomes final. 
7292. Review by United States Court of Appeals for the Federal Circuit. 


SUBCHAPTER V-RETIREMENT AND SURVIVORS 
ANNUITIES 


Sec. 
7296. Retirement of judges. 
7297. Survivor annuities. 
7298. Retirement Fund. 
7299. Limitation on activities of retired judges. 


CHAPTER 73-VETERANS HEALTH ADMINISTRATION -
ORGANIZATION AND FUNCTIONS 


SUBCHAPTER I-ORGANIZATION 


Sec. 
7301. Functions of Veterans Health Administration: in general. 
7302. Functions of Veterans Health Administration: health-care personnel 
education and training programs. 
7303. Functions of Veterans Health Administration: research programs. 
7304. Regulations. 
7305. Divisions of Veterans Health Administration. 
7306. Office of the Under Secretary for Health. 
7307. Office of Research Oversight. 
7308. Office of Rural Health. 

SUBCHAPTER II-GENERAL AUTHORITY AND 
ADMINISTRATION 


Sec. 
7311. Quality assurance. 
7312. Special medical advisory group. 
7313. Advisory committees: affiliated institutions. 
7314. Geriatric research, education, and clinical centers. 
7315. Geriatrics and Gerontology Advisory Committee. 
7316. Malpractice and negligence suits: defense by United States. 
7317. Hazardous research projects: indemnification of contractors. 
7318. National Center for Preventive Health. 
7319. Mammography quality standards. 



Title 38, United States Code-Table of Sections 

7320. Centers for mental illness research, education, and clinical 
activities. 

7321. Committee on Care of Severely Chronically Mentally Ill Veterans. 

7322. Breast cancer mammography policy. 

7323. Required consultations with nurses. 

7324. Annual report on use of authorities to enhance retention of 
experienced 
nurses. 

7325. Medical emergency preparedness centers. 

7326. Education and training programs on medical responses to 
consequences of terrorist activities. 

7327. Centers for research, education, and clinical activities on 
complex multi-
trauma associated with combat injuries. 

7328. Medical preparedness centers. 

7329. Parkinsonï¿½s Disease research, education, and clinical centers. 

7330. Multiple sclerosis centers of excellence. 

7330A. Epilepsy centers of excellence. 

SUBCHAPTER III-PROTECTION OF PATIENT RIGHTS 

Sec. 

7331. Informed consent. 

7332. Confidentiality of certain medical records. 

7333. Nondiscrimination against alcohol and drug abusers and persons 
infected 
with the human immunodeficiency virus.

7334. Regulations. 

SUBCHAPTER IV-RESEARCH CORPORATIONS 

Sec. 
7361. Authority to establish; status. 
7362. Purpose of corporations. 
7363. Board of directors; executive director. 
7364. General powers. 
7364A. Coverage of employees under certain Federal tort claims laws. 
7365. Applicable State law. 
7366. Accountability and oversight. 
[7367. Repealed]. 
[7368. Repealed]. 


CHAPTER 74-VETERANS HEALTH ADMINISTRATION -
PERSONNEL 


SUBCHAPTER I-APPOINTMENTS 


Sec. 

7401. Appointments in Veterans Health Administration. 

7402. Qualifications of appointees.

7403. Period of appointments; promotions. 

7404. Grades and pay scales. 

7405. Temporary full-time appointments, part-time appointments, and 
without-compensation appointments. 

7406. Residencies and internships.

7407. Administrative provisions for section 7405 and 7406 
appointments. 

7408. Appointment of additional employees. 

7409. Contracts for scarce medical specialist services. 

7410. Additional pay authorities. 

7411. Full-time board-certified physicians and dentists: reimbursement 
of continuing professional education expenses. 

SUBCHAPTER II-COLLECTIVE BARGAINING AND 
PERSONNEL ADMINISTRATION 


Sec. 
7421. Personnel administration: in general. 
7422. Collective bargaining. 
7423. Personnel administration: full-time employees. 
7424. Travel expenses of certain employees. 



Title 38, United States Code-Table of Sections 

7425. Employees: laws not applicable. 
7426. Retirement rights. 

SUBCHAPTER III-PAY FOR PHYSICIANS AND DENTISTS 

Sec. 
7431. Pay. 
7432. Pay of Under Secretary for Health. 
7433. Administrative matters. 


SUBCHAPTER IV-PAY FOR NURSES AND OTHER HEALTH
CARE PERSONNEL 


Sec. 
7451. Nurses and other health-care personnel: competitive pay. 
7452. Nurses and other health-care personnel: administration of pay. 
7453. Nurses: additional pay. 
7454. Physician assistants and other health care professionals: 
]additional pay. 
7455. Increases in rates of basic pay. 
7456. Nurses: special rules for weekend duty. 
7456A. Nurses: alternate work schedules. 
7457. On-call pay. 
7458. Recruitment and retention bonus pay. 


SUBCHAPTER V-DISCIPLINARY AND GRIEVANCE 
PROCEDURES 


Sec. 
7461. Adverse actions: section 7401(1) employees. 
7462. Major adverse actions involving professional conduct or 
competence. 
7463. Other adverse actions. 
7464. Disciplinary Appeals Boards. 


SUBCHAPTER VI-REGIONAL MEDICAL EDUCATION 
CENTERS 


Sec. 
7471. Designation of Regional Medical Education Centers. 
7472. Supervision and staffing of Centers. 
7473. Personnel eligible for training. 
7474. Consultation. 


CHAPTER 75-RENUMBERED CHAPTER 78 AND 
TRANSFERRED 


CHAPTER 76-HEALTH PROFESSIONALS EDUCATIONAL 
ASSISTANCE PROGRAM 


SUBCHAPTER I-GENERAL 


Sec. 
7601. Establishment of program; purpose. 
7602. Eligibility. 
7603. Application and acceptance. 
7604. Terms of agreement. 


SUBCHAPTER II-SCHOLARSHIP PROGRAM 

Sec. 
7611. Authority for program. 
7612. Eligibility; application; agreement. 
7613. Scholarship. 
7614. Part-time students. 
7615. Status of participants. 



Title 38, United States Code-Table of Sections 

7616. Obligated service.
7617. Breach of agreement: liability. 
7618. Expiration of program. 

SUBCHAPTER III-TUITION REIMBURSEMENT PROGRAM 

Sec. 
7621. Authority for program. 
7622. Eligibility; application; agreement.
7623. Obligated service. 
7624. Breach of agreement: liability. 
7625. Allocation and distribution of funding. 


SUBCHAPTER IV-ADMINISTRATIVE MATTERS 

Sec. 
7631. Periodic adjustments in amount of assistance.
7632. Annual report. 
7633. Regulations. 
7634. Breach of agreement; waiver of liability. 
7635. Service in other agencies. 
7636. Exemption of educational assistance payments from taxation. 


SUBCHAPTER V-STIPEND PROGRAM FOR MEMBERS OF 
THE SELECTED RESERVE 


Sec. 

7651. Authority for program. 

7652. Eligibility: individuals entitled to benefits under the GI Bill 
program for 
members of the Selected Reserve. 

7653. Amount of assistance. 

7654. Obligated service. 

7655. Breach of agreement; liability. 

SUBCHAPTER VI-EMPLOYEE INCENTIVE SCHOLARSHIP 
PROGRAM 


Sec. 
7671. Authority for program. 
7672. Eligibility; agreement.
7673. Scholarship. 
7674. Obligated service. 
7675. Breach of agreement: liability. 
[7676. Repealed]. 


SUBCHAPTER VII-EDUCATION DEBT REDUCTION 
PROGRAM 


Sec. 
7681. Authority for program. 
7682. Eligibility. 
7683. Education debt reduction. 
[7684. Repealed]. 


CHAPTER 77-VETERANS BENEFITS ADMINISTRATION 

SUBCHAPTER I-ORGANIZATION; GENERAL 

Sec. 
7701. Organization of the Administration. 
7703. Functions of the Administration. 


SUBCHAPTER II-QUALITY ASSURANCE 

Sec. 


Title 38, United States Code-Table of Sections 

7731. Establishment. 
7732. Functions. 
7732A. Employee certification. 
7733. Personnel. 
7734. Annual report to Congress. 
CHAPTER 78-VETERANSï¿½ CANTEEN SERVICE 
Sec. 
7801. 
7802. 
7803. 
7804. 
7805. 
7806. 
Purpose of Veteransï¿½ Canteen Service. 
Duties of Secretary with respect to Service. 
Operation of Service. 
Financing of Service. 
Revolving fund. 
Budget of Service. 
7807. Audit of accounts. 
7808. 
7809. 
Service to be independent unit. 
Child-care centers. 
7810. Exemption from personnel ceilings. 

CHAPTER 79-INFORMATION SECURITY EDUCATION 
ASSISTANCE PROGRAM 

Sec. 
7901. Programs; purpose. 
7902. Scholarship program. 
7903. Education debt reduction program. 
7904. Preferences in awarding financial assistance. 
7905. Requirement of honorable discharge for veterans receiving 
assistance. 
7906. Regulations. 
7907. Termination. 


PART VI-ACQUISITION AND DISPOSITION OF PROPERTY 

CHAPTER 81-ACQUISITION AND OPERATION OF HOSPITAL 
AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE 
LEASES OF REAL PROPERTY 

SUBCHAPTER I-ACQUISITION AND OPERATION OF 
MEDICAL FACILITIES 

Sec. 

8101. Definitions. 

8102. Acquisition of medical facilities. 

8103. Authority to construct and alter, and to acquire sites for, 
medical facilities. 

8104. Congressional approval of certain medical facility 
acquisitions. 

8105. Structural requirements. 

8106. Construction contracts. 

8107. Operational and construction plans for medical facilities. 

8108. Contributions to local authorities. 

8109. Parking facilities. 

8110. Operation of medical facilities. 

8111. Sharing of Department of Veterans Affairs and Department of 
Defense 
health care resources. 

8111A. Furnishing of health-care services to members of the Armed 
Forces during 

a war or national emergency. 

8112. Partial relinquishment of legislative jurisdiction. 

8113. Property formerly owned by National Home for Disabled Volunteer 
Soldiers. 

8114. Use of federally owned facilities; use of personnel. 

8115. Acceptance of certain property. 

8116. Nursing home revolving fund. 

8117. Emergency preparedness. 


Title 38, United States Code-Table of Sections 

8118. Authority for transfer of real property; Department of Veterans 
Affairs 
Capital Asset Fund. 

8119. Annual report on outpatient clinics. 

SUBCHAPTER II-PROCUREMENT AND SUPPLY 

Sec. 

8121. Revolving supply fund. 

8122. Authority to procure and dispose of property and to negotiate 
for common 
services. 

8123. Procurement of prosthetic appliances. 

8124. Grant of easements in Government-owned lands. 

8125. Procurement of health-care items. 

8126. Limitation on prices of drugs procured by Department and certain 
other 
Federal agencies. 

8127. Small business concerns owned and controlled by veterans: 
contracting goals and preferences. 

8128. Small business concerns owned and controlled by veterans: 
contracting 
priority. 

SUBCHAPTER III-STATE HOME FACILITIES FOR FURNISHING DOMICILIARY, 
NURSING HOME, AND HOSPITAL CARE 

Sec. 
8131. Definitions. 
8132. Declaration of purpose. 
8133. Authorization of appropriations. 
8134. General regulations. 
8135. Applications with respect to projects; payments. 
8136. Recapture provisions. 
8137. State control of operations. 
8138. Treatment of certain health facilities as State homes. 


SUBCHAPTER IV-SHARING OF MEDICAL FACILITIES, 
EQUIPMENT, AND INFORMATION 


Sec. 

8151. Statement of congressional purpose. 

8152. Definitions. 

8153. Sharing of health-care resources. 

8154. Exchange of medical information. 

8155. Pilot programs; grants to medical schools. 

8156. Coordination with health services development activities carried 
out under the National Health Planning and Resources Development Act 
of 1974. 

8157. Joint title to medical equipment. 

8158. Deposit in escrow. 

SUBCHAPTER V-ENHANCED-USE LEASES OF REAL 
PROPERTY 


Sec. 
8161. Definitions. 
8162. Enhanced-use leases. 
8163. Hearing and notice requirements regarding proposed leases. 
8164. Authority for disposition of leased property. 
8165. Use of proceeds. 
8166. Construction standards. 
8167. Exemption from State and local taxes. 
[8168. Repealed]. 
8169. Expiration. 



Title 38, United States Code-Table of Sections 

CHAPTER 82-ASSISTANCE IN ESTABLISHING NEW STATE 
MEDICAL SCHOOLS; GRANTS TO AFFILIATED MEDICAL 
SCHOOLS; ASSISTANCE TO HEALTH MANPOWER TRAINING INSTITUTIONS 

Sec. 
8201. Coordination with public health programs; administration. 


SUBCHAPTER I-PILOT PROGRAM FOR ASSISTANCE IN THE 
ESTABLISHMENT OF NEW STATE MEDICAL SCHOOLS 

Sec. 
8211. Declaration of purpose. 
8212. Authorization of appropriations. 
8213. Pilot program assistance. 
8214. Limitations. 


SUBCHAPTER II-GRANTS TO AFFILIATED MEDICAL 
SCHOOLS 


Sec. 
8221. Declaration of purpose. 
8222. Authorization of appropriations. 
8223. Grants. 


SUBCHAPTER III-ASSISTANCE TO PUBLIC AND NONPROFIT INSTITUTIONS OF 
HIGHER LEARNING, HOSPITALS AND OTHER HEALTH MANPOWER INSTITUTIONS 
AFFILIATED WITH THE DEPARTMENT TO INCREASE THE 
PRODUCTION OF PROFESSIONAL AND OTHER HEALTH 
PERSONNEL 

Sec. 
8231. Declaration of purpose. 
8232. Definition. 
8233. Grants. 


SUBCHAPTER IV-EXPANSION OF DEPARTMENT HOSPITAL 
EDUCATION AND TRAINING CAPACITY 

Sec. 

8241. Expenditures to remodel and make special allocations to 
Department hospitals for health manpower education and training. 

CHAPTER 83-ACCEPTANCE OF GIFTS AND BEQUESTS 

Sec. 
8301. Authority to accept gifts, devises, and bequests. 
8302. Legal proceedings. 
8303. Restricted gifts. 
8304. Disposition of property. 
8305. Savings provision. 


CHAPTER 85-DISPOSITION OF DECEASED VETERANSï¿½ 
PERSONAL PROPERTY 


SUBCHAPTER I-PROPERTY LEFT ON DEPARTMENT 
FACILITY 


Sec. 
8501. Vesting of property left by decedents. 
8502. Disposition of unclaimed personal property. 



Title 38, United States Code-Table of Sections 

8503. Notice of provisions of this subchapter. 
8504. Disposition of other unclaimed property. 
8505. Sale or other disposition of property. 
8506. Notice of sale. 
8507. Payment of small shipping charges. 
8508. Relinquishment of Federal jurisdiction. 
8509. Definitions. 
8510. Finality of decisions. 


SUBCHAPTER II-DEATH WHILE PATIENT OF DEPARTMENT 
FACILITY 

Sec. 
8520. Vesting of property left by decedents. 
8521. Presumption of contract for disposition of personalty. 
8522. Sale of assets accruing to the Fund. 
8523. Disbursements from the Fund. 
8524. Disposal of remaining assets. 
8525. Court actions. 
8526. Filing of claims for assets. 
8527. Notice of provisions of subchapter.



CHAPTER 1 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]



TITLE 38-VETERANSï¿½ BENEFITS 

Part Sec. 

I. General Provisions ....................................... 101


II. General Benefits ....................................... 1101


III. Readjustment and Related Benefits .......................... 3001


IV. General Administrative Provisions ............................ 5100


V. Boards, Administrations, and Services ...................... 7101


VI. Acquisition and Disposition of Property .................... 8101


PART I-GENERAL PROVISIONS 

Chapter Sec. 

1. General ...................................................... 101


3. Department of Veterans Affairs ......................... 301


5. Authority and Duties of the Secretary ...................... 501


7. Employees ................................................ 701


9. Security and Law Enforcement on Property Under 
the Jurisdiction of the Department ........................ 901 

1 




CHAPTER 1-GENERAL 

Sec. 

101. Definitions. 
102. Dependent parents. 
103. Special provisions relating to marriages. 
104. Approval of educational institutions. 
105. Line of duty and misconduct. 
106. Certain service deemed to be active service. 
107. Certain service deemed not to be active service. 
108. Seven-year absence presumption of death. 
109. Benefits for discharged members of allied forces. 
110. Preservation of disability ratings. 
111. Payments or allowances for beneficiary travel. 
112. Presidential memorial certificate program. 
113. Treatment of certain programs under sequestration procedures. 
114. Multiyear procurement. 
115. Acquisition of real property. 
116. Reports to Congress: cost information. 
ï¿½ 101. Definitions 

For the purposes of this title- 

(1) The terms ï¿½ï¿½Secretaryï¿½ï¿½ and ï¿½ï¿½Departmentï¿½ï¿½ mean the Secretary of 
Veterans Affairs and the Department of Veterans Affairs, 
respectively. 
(2) The term ï¿½ï¿½veteranï¿½ï¿½ means a person who served in the active 
military, naval, or air service, and who was discharged or released 
therefrom under conditions other than dishonorable. 
(3) The term ï¿½ï¿½surviving spouseï¿½ï¿½ means (except for purposes of 
chapter 19 of this title) a person of the opposite sex who was the 
spouse of a veteran at the time of the veteranï¿½s death, and who 
lived with the veteran continuously from the date of marriage to 
the date of the veteranï¿½s death (except where there was a separation 
which was due to the misconduct of, or procured by, the veteran 
without the fault of the spouse) and who has not remarried 
or (in cases not involving remarriage) has not since the death of 
the veteran, and after September 19, 1962, lived with another person 
and held himself or herself out openly to the public to be the 
spouse of such other person. 
(4)(A) The term ï¿½ï¿½childï¿½ï¿½ means (except for purposes of chapter 
19 of this title (other than with respect to a child who is an 
insurable dependent under subparagraph (B) or (C) of section 1965(10) 
of such chapter)and section 8502(b) of this title) a person who is 
unmarried and- 

(i) who is under the age of eighteen years; 
(ii) who, before attaining the age of eighteen years, became 
permanently incapable of self-support; or 
(iii) who, after attaining the age of eighteen years and 
until completion of education or training (but not after attaining the 
age of twenty-three years), is pursuing a course of instruction at an 
approved educational institution; 
3 


Sec. 101 CH. 1-GENERAL 

and who is a legitimate child, a legally adopted child, a stepchild who 
is a member of a veteranï¿½s household or was a member at the time of the 
veteranï¿½s death, or an illegitimate child 
but, as to the alleged father, only if acknowledged in writing 
signed by him, or if he has been judicially ordered to contribute 
to the childï¿½s support or has been, before his death, judicially 
decreed to be the father of such child, or if he is otherwise 
shown by evidence satisfactory to the Secretary to be the father of 
such child. A person shall be deemed, as of the date of 
death of a veteran, to be the legally adopted child of such veteran if 
such person was at the time of the veteranï¿½s death living in the 
veteranï¿½s household and was legally adopted by the 
veteranï¿½s surviving spouse before August 26, 1961, or within 
two years after the veteranï¿½s death; however, this sentence 
shall not apply if at the time of the veteranï¿½s death, such person was 
receiving regular contributions toward the personï¿½s 
support from some individual other than the veteran or the 
veteranï¿½s spouse, or from any public or private welfare organization 
which furnishes services or assistance for children. A 
person with respect to whom an interlocutory decree of adoption has 
been issued by an appropriate adoption authority 
shall be recognized thereafter as a legally adopted child, unless 
and until that decree is rescinded, if the child remains in the 
custody of the adopting parent or parents during the interlocutory 
period. A person who has been placed for adoption under 
an agreement entered into by the adopting parent or parents 
with any agency authorized under law to so act shall be recognized 
thereafter as a legally adopted child, unless and until 
such agreement is terminated, if the child remains in the custody of 
the adopting parent or parents during the period of 
placement for adoption under such agreement. A person described in 
clause (ii) of the first sentence of this subparagraph 
who was a member of a veteranï¿½s household at the time the 
person became 18 years of age and who is adopted by the veteran shall 
be recognized as a legally adopted child of the veteran regardless of 
the age of such person at the time of adoption. 

(B) For the purposes of subparagraph (A) of this paragraph, in 
the case of an adoption under the laws of any jurisdiction other 
than a State (as defined in section 101(20) of this title and including 
the Commonwealth of the Northern Mariana Islands)- 
(i) a person residing outside any of the States shall not be 
considered to be a legally adopted child of a veteran during the 
lifetime of such veteran (including for purposes of this subparagraph a 
Commonwealth Army veteran or new Philippine Scout, 
as defined in section 3566 of this title) unless such person- 
(I) was less than eighteen years of age at the time of 
adoption; 
(II) is receiving one-half or more of such personï¿½s annual support from 
such veteran; 
(III) is not in the custody of such personï¿½s natural parent, unless such 
natural parent is such veteranï¿½s spouse; 
and 



CH. 1-GENERAL Sec. 101 

(IV) is residing with such veteran (or in the case of divorce following 
adoption, with the divorced spouse who is also an adoptive or natural 
parent) except for periods during which such person is residing apart 
from such veteran (or such divorced spouse) for purposes of full-time 
attendance at an educational institution or during which such 
person or such veteran (or such divorced spouse) is confined in a 
hospital, nursing home, other health-care facility, or other 
institution; and (ii) a person shall not be considered to have been a 
legally adopted child of a veteran as of the date of such veteranï¿½s 
death and thereafter unless- 
(I) at any time within the one-year period immediately 
preceding such veteranï¿½s death, such veteran was entitled 
to and was receiving a dependentï¿½s allowance or similar 
monetary benefit under this title for such person; or 
(II) for a period of at least one year prior to such veteranï¿½s death, 
such person met the requirements of clause 
(i) of this subparagraph. 
(5) The term ï¿½ï¿½parentï¿½ï¿½ means (except for purposes of chapter 19 
of this title) a father, a mother, a father through adoption, a mother 
through adoption, or an individual who for a period of not less 
than one year stood in the relationship of a parent to a veteran at 
any time before the veteranï¿½s entry into active military, naval, or 
air service or if two persons stood in the relationship of a father 
or a mother for one year or more, the person who last stood in the 
relationship of father or mother before the veteranï¿½s last entry into 
active military, naval, or air service. 
(6) The term ï¿½ï¿½Spanish-American Warï¿½ï¿½ (A) means the period beginning on 
April 21, 1898, and ending on July 4, 1902, (B) includes 
the Philippine Insurrection and the Boxer Rebellion, and (C) in the 
case of a veteran who served with the United States military forces 
engaged in hostilities in the Moro Province, means the period beginning 
on April 21, 1898, and ending on July 15, 1903. 
(7) The term ï¿½ï¿½World War Iï¿½ï¿½ (A) means the period beginning on 
April 6, 1917, and ending on November 11, 1918, and (B) in the 
case of a veteran who served with the United States military forces 
in Russia, means the period beginning on April 6, 1917, and ending 
on April 1, 1920. 
(8) The term ï¿½ï¿½World War IIï¿½ï¿½ means (except for purposes of 
chapters 31 and 37 of this title) the period beginning on December 
7, 1941, and ending on December 31, 1946. 
(9) The term ï¿½ï¿½Korean conflictï¿½ï¿½ means the period beginning on 
June 27, 1950, and ending on January 31, 1955. 
(10) The term ï¿½ï¿½Armed Forcesï¿½ï¿½ means the United States Army, 
Navy, Marine Corps, Air Force, and Coast Guard, including the reserve 
components thereof. 
(11) The term ï¿½ï¿½period of warï¿½ï¿½ means the Spanish-American 
War, the Mexican border period, World War I, World War II, the 
Korean conflict, the Vietnam era, the Persian Gulf War, and the 
period beginning on the date of any future declaration of war by 
the Congress and ending on the date prescribed by Presidential 
proclamation or concurrent resolution of the Congress. 

Sec. 101 CH. 1-GENERAL 

(12) The term ï¿½ï¿½veteran of any warï¿½ï¿½ means any veteran who 
served in the active military, naval, or air service during a period 
of war. 
(13) The term ï¿½ï¿½compensationï¿½ï¿½ means a monthly payment made 
by the Secretary to a veteran because of service-connected disability, 
or to a surviving spouse, child, or parent of a veteran because of the 
service-connected death of the veteran occurring before 
January 1, 1957. 
(14) The term ï¿½ï¿½dependency and indemnity compensationï¿½ï¿½ 
means a monthly payment made by the Secretary to a surviving 
spouse, child, or parent (A) because of a service-connected death 
occurring after December 31, 1956, or (B) pursuant to the election of 
a surviving spouse, child, or parent, in the case of such a death 
occurring before January 1, 1957. 
(15) The term ï¿½ï¿½pensionï¿½ï¿½ means a monthly or other periodic 
payment made by the Secretary to a veteran because of service, 
age, or non-service-connected disability, or to a surviving spouse or 
child of a veteran because of the non-service-connected death of the 
veteran. 
(16) The term ï¿½ï¿½service-connectedï¿½ï¿½ means, with respect to disability 
or death, that such disability was incurred or aggravated, 
or that the death resulted from a disability incurred or aggravated, 
in line of duty in the active military, naval, or air service. 
(17) The term ï¿½ï¿½non-service-connectedï¿½ï¿½ means, with respect to 
disability or death, that such disability was not incurred or 
aggravated, or that the death did not result from a disability incurred 
or aggravated, in line of duty in the active military, naval, or air 
service. 
(18) The term ï¿½ï¿½discharge or releaseï¿½ï¿½ includes (A) retirement 
from the active military, naval, or air service, and (B) the 
satisfactory completion of the period of active military, naval, or air 
service for which a person was obligated at the time of entry into such 
service in the case of a person who, due to enlistment or reenlistment, 
was not awarded a discharge or release from such period of 
service at the time of such completion thereof and who, at such 
time, would otherwise have been eligible for the award of a discharge
or release under conditions other than dishonorable. 
(19) The term ï¿½ï¿½State homeï¿½ï¿½ means a home established by a 
State (other than a possession) for veterans disabled by age, disease, 
or otherwise who by reason of such disability are incapable 
of earning a living. Such term also includes such a home which 
furnishes nursing home care for veterans. 
(20) The term ï¿½ï¿½Stateï¿½ï¿½ means each of the several States, Territories, 
and possessions of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico. For the purpose of section 2303 and 
chapters 34 and 35 of this title, such term also includes the Canal 
Zone. 
(21) The term ï¿½ï¿½active dutyï¿½ï¿½ means- 
(A) full-time duty in the Armed Forces, other than active 
duty for training; 
(B) full-time duty (other than for training purposes) as a 
commissioned officer of the Regular or Reserve Corps of the 
Public Health Service (i) on or after July 29, 1945, or (ii) before 
that date under circumstances affording entitlement to ï¿½ï¿½full 




CH. 1-GENERAL Sec. 101 

military benefitsï¿½ï¿½ or (iii) at any time, for the purposes of 
chapter 13 of this title; 

(C) full-time duty as a commissioned officer of the National 
Oceanic and Atmospheric Administration or its predecessor organization 
the Coast and Geodetic Survey (i) on or after July 
29, 1945, or (ii) before that date (I) while on transfer to one of 
the Armed Forces, or (II) while, in time of war or national 
emergency declared by the President, assigned to duty on a 
project for one of the Armed Forces in an area determined by 
the Secretary of Defense to be of immediate military hazard, 
or (III) in the Philippine Islands on December 7, 1941, and 
continuously in such islands thereafter, or (iii) at any time, for the 
purposes of chapter 13 of this title; 
(D) service as a cadet at the United States Military, Air 
Force, or Coast Guard Academy, or as a midshipman at the 
United States Naval Academy; and 
(E) authorized travel to or from such duty or service. 
(22) The term ï¿½ï¿½active duty for trainingï¿½ï¿½ means- 
(A) full-time duty in the Armed Forces performed by Reserves for 
training purposes; 
(B) full-time duty for training purposes performed as a 
commissioned officer of the Reserve Corps of the Public Health 
Service (i) on or after July 29, 1945, or (ii) before that date 
under circumstances affording entitlement to ï¿½ï¿½full military 
benefitsï¿½ï¿½, or (iii) at any time, for the purposes of chapter 13 of 
this title; 
(C) in the case of members of the Army National Guard or 
Air National Guard of any State, full-time duty under section 
316, 502, 503, 504, or 505 of title 32, or the prior corresponding 
provisions of law; 
(D) duty performed by a member of a Senior Reserve Officersï¿½ Training 
Corps program when ordered to such duty for 
the purpose of training or a practice cruise under chapter 103 
of title 10 for a period of not less than four weeks and which 
must be completed by the member before the member is commissioned; and 
(E) authorized travel to or from such duty. 
The term does not include duty performed as a temporary member 
of the Coast Guard Reserve. 
(23) The term ï¿½ï¿½inactive duty trainingï¿½ï¿½ means- 
(A) duty (other than full-time duty) prescribed for Reserves 
(including commissioned officers of the Reserve Corps of the 
Public Health Service) by the Secretary concerned under section 206 of 
title 37 or any other provision of law; 
(B) special additional duties authorized for Reserves (including 
commissioned officers of the Reserve Corps of the Public Health 
Service) by an authority designated by the Secretary 
concerned and performed by them on a voluntary basis in connection 
with the prescribed training or maintenance activities 
of the units to which they are assigned; and 
(C) training (other than active duty for training) by a 
member of, or applicant for membership (as defined in section 
8140(g) of title 5) in, the Senior Reserve Officersï¿½ Training 
Corps prescribed under chapter 103 of title 10. 

Sec. 101 CH. 1-GENERAL 

In the case of a member of the Army National Guard or Air National 
Guard of any State, such term means duty (other than full-
time duty) under sections 316, 502, 503, 504, or 505 of title 32, or 
the prior corresponding provisions of law. Such term does not include 
(i) work or study performed in connection with correspondence courses, 
(ii) attendance at an educational institution in an inactive status, 
or (iii) duty performed as a temporary member of the 
Coast Guard Reserve. 

(24) The term ï¿½ï¿½active military, naval, or air serviceï¿½ï¿½ includes- 
(A) active duty; 
(B) any period of active duty for training during which the 
individual concerned was disabled or died from a disease or injury 
incurred or aggravated in line of duty; and 
(C) any period of inactive duty training during which the 
individual concerned was disabled or died- 
(i) from an injury incurred or aggravated in line of 
duty; or 
(ii) from an acute myocardial infarction, a cardiac arrest, or a 
cerebrovascular accident occurring during such 
training. 
(25) The term ï¿½ï¿½Secretary concernedï¿½ï¿½ means- 
(A) the Secretary of the Army, with respect to matters concerning the 
Army; 
(B) the Secretary of the Navy, with respect to matters concerning the 
Navy or the Marine Corps; 
(C) the Secretary of the Air Force, with respect to matters 
concerning the Air Force; 
(D) the Secretary of Homeland Security, with respect to 
matters concerning the Coast Guard; 
(E) the Secretary of Health and Human Services, with respect to matters 
concerning the Public Health Service; and 
(F) the Secretary of Commerce, with respect to matters 
concerning the National Oceanic and Atmospheric Administration or its 
predecessor organization the Coast and Geodetic 
Survey. 
(26) The term ï¿½ï¿½Reserveï¿½ï¿½ means a member of a reserve component of one 
of the Armed Forces. 
(27) The term ï¿½ï¿½reserve componentï¿½ï¿½ means, with respect to the 
Armed Forces- 
(A) the Army Reserve; 
(B) the Navy Reserve; 
(C) the Marine Corps Reserve; 
(D) the Air Force Reserve; 
(E) the Coast Guard Reserve; 
(F) the Army National Guard of the United States; and 
(G) the Air National Guard of the United States. 
(28) The term ï¿½ï¿½nursing home careï¿½ï¿½ means the accommodation 
of convalescents or other persons who are not acutely ill and not 
in need of hospital care, but who require nursing care and related 
medical services, if such nursing care and medical services are 
prescribed by, or are performed under the general direction of, persons 
duly licensed to provide such care. Such term includes services furnished 
in skilled nursing care facilities, in intermediate care facilities, and 
in combined facilities. It does not include domiciliary care. 

CH. 1-GENERAL Sec. 101 

(29) The term ï¿½ï¿½Vietnam eraï¿½ï¿½ means the following: 
(A) The period beginning on February 28, 1961, and ending on May 7, 1975, 
in the case of a veteran who served in the 
Republic of Vietnam during that period. 
(B) The period beginning on August 5, 1964, and ending on 
May 7, 1975, in all other cases. 
(30) The term ï¿½ï¿½Mexican border periodï¿½ï¿½ means the period beginning on 
May 9, 1916, and ending on April 5, 1917, in the case of 
a veteran who during such period served in Mexico, on the borders 
thereof, or in the waters adjacent thereto. 
(31) The term ï¿½ï¿½spouseï¿½ï¿½ means a person of the opposite sex who 
is a wife or husband. 
(32) The term ï¿½ï¿½former prisoner of warï¿½ï¿½ means a person who, 
while serving in the active military, naval or air service, was forcibly 
detained or interned in line of duty- 
(A) by an enemy government or its agents, or a hostile 
force, during a period of war; or 
(B) by a foreign government or its agents, or a hostile 
force, under circumstances which the Secretary finds to have 
been comparable to the circumstances under which persons 
have generally been forcibly detained or interned by enemy 
governments during periods of war. 
(33) The term ï¿½ï¿½Persian Gulf Warï¿½ï¿½ means the period beginning 
on August 2, 1990, and ending on the date thereafter prescribed by 
Presidential proclamation or by law. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1106; Pub. L. 86-195, Aug. 25, 
1959, 73 Stat. 424; Pub. L. 87-674, Sec. 1, Sept. 19, 1962, 76 Stat. 558; 
Pub. L. 87-815, Sec. 3, Oct. 15, 1962, 76 Stat. 927; Pub. L. 88-450, 
Sec. 4(c), (d), Aug. 19, 1964, 78 Stat. 504; Pub. L. 89-311, 
Sec. 2(c)(1), Oct. 31, 1965, 79 Stat. 1155; Pub. L. 89-358, Sec. 
4(d), Mar. 3, 1966, 80 Stat. 24; Pub. L. 90-77, title II, Sec. 201, 
Aug. 31, 1967, 81 Stat. 181; Pub. L. 91-24, Sec. 1(a), (b), 16, 
June 11, 1969, 83 Stat. 33, 35; Pub. L. 91-262, Sec. 1, May 21, 1970, 
84 Stat. 256; Pub. L. 91-588, Sec. 9(a), (b), Dec. 24, 
1970, 84 Stat. 1584; Pub. L. 91-621, Sec. 6(a)(1), (2), Dec. 31, 
1970, 84 Stat. 1864; Pub. L. 92-198, Sec. 5(a), Dec. 15, 1971, 85 Stat. 
664; Pub. L. 92-540, title IV, Sec. 407, Oct. 24, 1972, 86 Stat. 1092; 
Pub. L. 94-169, title I, Sec. 101(1), Dec. 23, 1975, 89 Stat. 1013; 
Pub. L. 94-417, Sec. 1(b), Sept. 21, 1976, 90 Stat. 1277; Pub. L. 95- 
126, Sec. 3, Oct. 8, 1977, 91 Stat. 1108; Pub. L. 95-202, title III, 
Sec. 309(a), Nov. 23, 1977, 91 Stat. 1446; Pub. L. 95-588, title III, 
Sec. 301, Nov. 4, 1978, 92 Stat. 2506; Pub. L. 96-22, title IV, Sec. 
401, June 13, 1979, 93 Stat. 62; Pub. L. 97-37, Sec. 3(a), Aug. 14, 
1981, 95 Stat. 936; Pub. L. 97-295, Sec. 4(2), (95)(A), Oct. 12, 
1982, 96 Stat. 1304, 1313; Pub. L. 97-306, title I, Sec. 113(a), 
Oct. 14, 1982, 96 Stat. 1432; Pub. L. 98-223, title II, Sec. 201, 
Mar. 2, 1984, 98 Stat. 41; Pub. L. 99-576, title VII, Sec. 702(1), 
Oct. 28, 1986, 100 Stat. 3301; Pub. L. 100-322, title I, Sec. 
103(a), title III, Sec. 311, May 20, 1988, 102 Stat. 493, 534; 
Pub. L. 100-456, div. A, title VI, Sec. 633(c), Sept. 29, 1988, 
102 Stat. 1987; Pub. L. 101-237, Sec. 2(a), Dec. 18, 1989, 103 Stat. 
2062; Pub. L. 102-25, title III, Sec. 332, Apr. 6, 1991, 105 Stat. 
88; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 
239; Pub. L. 102-54, Sec. 14(a)(1), June 13, 1991, 105 Stat. 282; 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6 
1991, 105 Stat. 404-406; Pub. L. 103-446, title XII, Sec. 1201(a)(1), 
Nov. 2, 1994, 108 Stat. 4682; Pub. L. 104-275, title V, Sec. 505(a), 
Oct. 9, 1996, 110 Stat. 3342; Pub. L. 106-419, title III, Sec. 301(a), 
Nov. 1, 2000, 114 Stat. 1852; Pub. L. 107-14, Sec. 4(a)(2), June 5, 
2001, 115 Stat. 26; Pub. L. 107- 296, title XVII, Sec. 1704(d), 
Nov. 25, 2002, 116 Stat. 2315; Pub. L. 109-163, div. 
A, title V, Sec. 515(e)(1), Jan. 6, 2006, 119 Stat. 3236; Pub. L. 
109-444, Sec. 8(b)(1), Dec. 21, 2006, 120 Stat. 3313; Pub. L. 109-461, 
title X, Secs. 1004(b)(1), 1006(b), Dec. 22, 2006, 120 Stat. 3466, 
3468; Pub. L. 110-389, title IV, Sec. 402(b), Oct. 10, 
2008, 122 Stat. 4174.) 




Sec. 102 CH. 1-GENERAL 10 

ï¿½ 102. Dependent parents 

(a) Dependency of a parent, which may arise before or after the 
death of a veteran, shall be determined in accordance with regulations 
prescribed by the Secretary. 
(b) Dependency of a parent shall not be denied (1) solely because of 
remarriage, or (2) in any case in any State where the 
monthly income for a mother or father does not exceed minimum 
levels which the Secretary shall prescribe by regulation, giving due 
regard to the marital status of the mother or father and additional 
members of the family whom the mother or father is under a moral 
or legal obligation to support. 
(c) For the purposes of this section, in determining monthly income the 
Secretary shall not consider any payments under laws administered by 
the Secretary because of disability or death or payments of bonus or 
similar cash gratuity by any State based upon 
service in the Armed Forces. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1109; Pub. L. 89-358, Sec. 
4(e), (f), Mar. 3, 1966, 80 Stat. 24; Pub. L. 92-540, title IV, Sec. 
408, Oct. 24, 1972, 86 Stat. 1092; Pub. L. 94-432, title IV, Sec. 402, 
Sept. 30, 1976, 90 Stat. 1372; Pub. L. 99-576, title VII, Sec. 701(1), 
Oct. 28, 1986, 100 Stat. 3289; Pub. L. 102-54, Sec. 14(a)(2), June 13, 
1991, 105 Stat. 282; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), 
Aug. 6, 1991, 105 Stat. 403-405.) 

ï¿½ 103. Special provisions relating to marriages 

(a) Whenever, in the consideration of any claim filed by a person as 
the widow or widower of a veteran for gratuitous death benefits under 
laws administered by the Secretary, it is established by 
evidence satisfactory to the Secretary that such person, without 
knowledge of any legal impediment, entered into a marriage with 
such veteran which, but for a legal impediment, would have been 
valid, and thereafter cohabited with the veteran for one year or 
more immediately before the veteranï¿½s death, or for any period of 
time if a child was born of the purported marriage or was born to 
them before such marriage, the purported marriage shall be 
deemed to be a valid marriage, but only if no claim has been filed 
by a legal widow or widower of such veteran who is found to be 
entitled to such benefits. No duplicate payments shall be made by 
virtue of this subsection. 
(b) Where a surviving spouse has been legally married to a veteran more 
than once, the date of original marriage will be used in determining 
whether the statutory requirement as to date of marriage has been met. 
(c) In determining whether or not a person is or was the 
spouse of a veteran, their marriage shall be proven as valid for the 
purposes of all laws administered by the Secretary according to the 
law of the place where the parties resided at the time of the marriage 
or the law of the place where the parties resided when the 
right to benefits accrued. 
(d)(1) The remarriage of the surviving spouse of a veteran shall 
not bar the furnishing of benefits to such person as the surviving 
spouse of the veteran if the remarriage is void, or has been annulled 
by a court with basic authority to render annulment decrees 
unless the Secretary determines that the annulment was secured 
through fraud by either party or collusion. 




11 CH. 1-GENERAL Sec. 104 

(2)(A) The remarriage of the surviving spouse of a veteran 
shall not bar the furnishing of benefits specified in paragraph (5) 
to such person as the surviving spouse of the veteran if the remarriage 
has been terminated by death or divorce unless the Secretary 
determines that the divorce was secured through fraud or collusion. 

(B) The remarriage after age 57 of the surviving spouse of a 
veteran shall not bar the furnishing of benefits specified in paragraph 
(5) to such person as the surviving spouse of the veteran. 
Notwithstanding the previous sentence, the remarriage after age 
55 of the surviving spouse of a veteran shall not bar the furnishing 
of benefits under section 1781 of this title to such person as the 
surviving spouse of the veteran. 
(3) If the surviving spouse of a veteran ceases living with another person 
and holding himself or herself out openly to the public 
as that personï¿½s spouse, the bar to granting that person benefits as 
the surviving spouse of the veteran shall not apply in the case of 
the benefits specified in paragraph (5). 
(4) The first month of eligibility for benefits for a surviving 
spouse by reason of paragraph (2)(A) or (3) shall be the month 
after- 
(A) the month of the termination of such remarriage, in 
the case of a surviving spouse described in paragraph (2)(A); 
or 
(B) the month of the cessation described in paragraph (3), 
in the case of a surviving spouse described in that paragraph. 
(5) Paragraphs (2)(A) and (3) apply with respect to benefits 
under the following provisions of this title: 
(A) Section 1311, relating to dependency and indemnity 
compensation. 
(B) Section 1781, relating to medical care for survivors and 
dependents of certain veterans. 
(C) Chapter 35, relating to educational assistance. 
(D) Chapter 37, relating to housing loans. 
(e) The marriage of a child of a veteran shall not bar recognition of
such child as the child of the veteran for benefit purposes 
if the marriage is void, or has been annulled by a court with basic 
authority to render annulment decrees unless the Secretary determines 
that the annulment was secured through fraud by either 
party or collusion. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1109; Pub. L. 87-674, Sec. 2, 
Sept. 19, 1962, 76 Stat. 558; Pub. L. 90-77, title I, Sec. 101(b), Aug. 
31, 1967, 81  Stat. 178; Pub. 

L. 91-376, Sec. 4, Aug. 12, 1970, 84 Stat. 789; Pub. L. 93-527, Sec. 
9(a), Dec. 21, 
1974, 88 Stat. 1705; Pub. L. 99-576, title VII, Sec. 701(2), Oct. 28, 
1986, 100 Stat. 
3290; Pub. L. 101-508, title VIII, Sec. 8004(a), Nov. 5, 1990, 104 
Stat. 1388-343; 
Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(i), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 403-405; Pub. L. 106-117, title V, Sec. 502(a), Nov. 30, 
1999, 113 Stat. 1574; Pub. L. 107- 135, title II, Sec. 208(e)(1), 
Jan. 23, 2002, 115 Stat. 2463; Pub. L. 107-330, title I, Sec. 101(a),
Dec. 6, 2002, 116 Stat. 2821; Pub. L. 108-183, title I, Sec. 101(a), 
title VII, Sec. 708(a)(1), Dec. 16, 2003, 117 Stat. 2652, 2673.) 
ï¿½ 104. Approval of educational institutions 

(a) For the purpose of determining whether or not benefits are 
payable under this title (except chapter 35 of this title) for a child 
over the age of eighteen years and under the age of twenty-three 
years who is attending a school, college, academy, seminary, tech

Sec. 105 CH. 1-GENERAL 12 

nical institute, university, or other educational institution, the 
Secretary may approve or disapprove such educational institutions. 

(b) The Secretary may not approve an educational institution 
under this section unless such institution has agreed to report to 
the Secretary the termination of attendance of any child. If any 
educational institution fails to report any such termination promptly, 
the approval of the Secretary shall be withdrawn. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1110; Pub. L. 91-24, Sec. 
1(c), June 11, 1969, 83 Stat. 33; Pub. L. 99-576, title VII, Sec. 701
(3), Oct. 28, 1986, 100 Stat. 3290; Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 105. Line of duty and misconduct 

(a) An injury or disease incurred during active military, naval, 
or air service will be deemed to have been incurred in line of duty 
and not the result of the veteranï¿½s own misconduct when the person on 
whose account benefits are claimed was, at the time the injury was 
suffered or disease contracted, in active military, naval, 
or air service, whether on active duty or on authorized leave, unless 
such injury or disease was a result of the personï¿½s own willful 
misconduct or abuse of alcohol or drugs. Venereal disease shall not 
be presumed to be due to willful misconduct if the person in service 
complies with the regulations of the appropriate service department 
requiring the person to report and receive treatment for such 
disease. 
(b) The requirement for line of duty will not be met if it appears 
that at the time the injury was suffered or disease contracted 
the person on whose account benefits are claimed (1) was avoiding 
duty by deserting the service or by absenting himself or herself 
without leave materially interfering with the performance of military 
duties; (2) was confined under sentence of court-martial involving an 
unremitted dishonorable discharge; or (3) was confined 
under sentence of a civil court for a felony (as determined under 
the laws of the jurisdiction where the person was convicted by such 
court). 
(c) For the purposes of any provision relating to the extension 
of a delimiting period under any education-benefit or rehabilitation 
program administered by the Secretary, the disabling effects of 
chronic alcoholism shall not be considered to be the result of willful 
misconduct. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1110; Pub. L. 99-576, title 
VII, Sec. 701(4), Oct. 28, 1986, 100 Stat. 3290; Pub. L. 100-689, 
title I, Sec. 109, Nov. 18, 1988, 102 Stat. 4170; Pub. L. 101-508, 
title VIII, Sec. 8052(a)(1), Nov. 5, 1990, 104 Stat. 1388- 
351; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991, 105 Stat. 403.) 

ï¿½ 106. Certain service deemed to be active service 

(a)(1) Service as a member of the Womenï¿½s Army Auxiliary 
Corps for ninety days or more by any woman who before October 
1, 1943, was honorably discharged for disability incurred or aggravated 
in line of duty which rendered her physically unfit to perform further 
service in the Womenï¿½s Army Auxiliary Corps or the Womenï¿½s Army Corps 
shall be considered active duty for the purposes 
of all laws administered by the Secretary. 

(2) Any person entitled to compensation or pension by reason 
of this subsection and to employeesï¿½ compensation based upon the 

13 CH. 1-GENERAL Sec. 106 

same service under subchapter I of chapter 81 of title 5 must elect 
which benefit she will receive. 

(b) Any person- 
(1) who has applied for enlistment or enrollment in the active 
military, naval, or air service and has been provisionally 
accepted and directed or ordered to report to a place for final 
acceptance into such service; or 
(2) who has been selected or drafted for service in the 
Armed Forces and has reported pursuant to the call of the personï¿½s 
local draft board and before rejection; or (3) who has been called into 
the Federal service as a member of the National Guard, but has not been 
enrolled for the 
Federal service; and 
who has suffered an injury or contracted a disease in line of duty 
while en route to or from, or at, a place for final acceptance or 
entry upon active duty, will, for the purposes of chapters 11, 13, 
19, 21, 31, and 39 of this title, and for purposes of determining 
service-connection of a disability under chapter 17 of this title, be 
considered to have been on active duty and to have incurred such 
disability in the active military, naval, or air service. 

(c) For the purposes of this title, an individual discharged or 
released from a period of active duty shall be deemed to have continued 
on active duty during the period of time immediately following the date 
of such discharge or release from such duty determined by the Secretary 
concerned to have been required for that 
individual to proceed to that individualï¿½s home by the most direct 
route, and in any event that individual shall be deemed to have 
continued on active duty until midnight of the date of such discharge or 
release. 
(d)(1) For the purposes of this title, any individual- 

(A) who, when authorized or required by competent authority, assumes an 
obligation to perform active duty for training or inactive duty training; 
and (B) who is disabled or dies from an injury or covered disease incurred 
while proceeding directly to or returning directly 
from such active duty for training or inactive duty training, as 
the case may be; 
shall be deemed to have been on active duty for training or inactive 
duty training, as the case may be, at the time such injury or covered 
disease was incurred. 

(2) In determining whether or not such individual was so authorized or 
required to perform such duty, and whether or not such 
individual was disabled or died from injury or covered disease so 
incurred, the Secretary shall take into account the hour on which 
such individual began so to proceed or to return; the hour on which 
such individual was scheduled to arrive for, or on which such individual 
ceased to perform, such duty; the method of travel employed; the 
itinerary; the manner in which the travel was performed; and the 
immediate cause of disability or death. 
(3) Whenever any claim is filed alleging that the claimant is 
entitled to benefits by reason of this subsection, the burden of proof 
shall be on the claimant. 
(4) For purposes of this subsection, the term ï¿½ï¿½covered diseaseï¿½ï¿½ 
means any of the following:


Sec. 107 CH. 1-GENERAL 14 

(A) Acute myocardial infarction. 
(B) A cardiac arrest. 
(C) A cerebrovascular accident. 
(e) Each person who has incurred a disability as a result of an 
injury or disease described in subsection (b) shall be entitled to the 
same rights, privileges, and benefits under title 5 as a preference 
eligible described in section 2108(3)(C) of title 5. 
(f) Service as a member of the Alaska Territorial Guard during 
World War II of any individual who was honorably discharged 
therefrom under section 8147 of the Department of Defense Appropriations 
Act, 2001, shall be considered active duty for purposes of 
all laws administered by the Secretary. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1110; Pub. L. 87-102, Sec. 1,
July 21, 1961, 
75 Stat. 219; Pub. L. 88-616, Oct. 2, 1964, 78 Stat. 994; Pub. L. 89-311, 
Sec. 5, Oct. 31, 1965, 79 Stat. 1156; Pub. L. 97-295, Sec. 4(3), 
Oct. 12, 1982, 96 Stat. 1305; Pub. L. 99-576, title VII, Sec. 701(5), 
Oct. 28, 1986, 100 Stat. 3291; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 106-259, title VIII,
Sec. 8147(a), Aug. 9, 2000, 114 Stat. 705; Pub. L. 106-419, title III, 
Sec. 301(b), Nov. 
1, 2000, 114 Stat. 1852.) 
ï¿½ 107. Certain service deemed not to be active service 

(a) Service before July 1, 1946, in the organized military forces 
of the Government of the Commonwealth of the Philippines, while 
such forces were in the service of the Armed Forces of the United 
States pursuant to the military order of the President dated July 
26, 1941, including among such military forces organized guerrilla 
forces under commanders appointed, designated, or subsequently 
recognized by the Commander in Chief, Southwest Pacific Area, or 
other competent authority in the Army of the United States, shall 
not be deemed to have been active military, naval, or air service 
for the purposes of any law of the United States conferring rights, 
privileges, or benefits upon any person by reason of the service of 
such person or the service of any other person in the Armed Forces, 
except benefits under- 
(1) contracts of National Service Life Insurance entered 
into before February 18, 1946; 
(2) chapter 10 of title 37; and 
(3) chapters 11, 13 (except section 1312(a)), 23, and 24 (to 
the extent provided for in section 2402(8)) of this title. 
Except as provided in subsection (c) or (d), payments under such 
chapters shall be made at a rate of $0.50 for each dollar authorized, 
and where annual income is a factor in entitlement to benefits, the 
dollar limitations in the law specifying such annual income 
shall apply at a rate of $0.50 for each dollar. Any payments made 
before February 18, 1946, to any such member under such laws 
conferring rights, benefits, or privileges shall not be deemed to 
have been invalid by reason of the circumstance that such memberï¿½s 
service was not service in the Armed Forces or any component 
thereof within the meaning of any such law. 

(b) Service in the Philippine Scouts under section 14 of the 
Armed Forces Voluntary Recruitment Act of 1945 shall not be 
deemed to have been active military, naval, or air service for the 
purposes of any of the laws administered by the Secretary except- 
(1) with respect to contracts of National Service Life Insurance 
entered into (A) before May 27, 1946, (B) under section 

15 CH. 1-GENERAL Sec. 108 

620 or 621 of the National Service Life Insurance Act of 1940, 
or (C) under section 1922 of this title; and 

(2) chapters 11, 13 (except section 1312(a)), 23, and 24 (to 
the extent provided for in section 2402(8)) of this title. 
Except as provided in subsection (c) or (d), payments under such 
chapters shall be made at a rate of $0.50 for each dollar authorized, 
and where annual income is a factor in entitlement to benefits, the 
dollar limitations in the law specifying such annual income 
shall apply at a rate of $0.50 for each dollar. 

(c) In the case of benefits under subchapters II and IV of chapter 11 
of this title and subchapter II of chapter 13 (except section 
1312(a)) of this title paid by reason of service described in 
subsection (a) or (b) to an individual residing in the United States 
who is a citizen of, or an alien lawfully admitted for permanent 
residence in, the United States, the second sentence of the applicable 
subsection shall not apply. 
(d)(1) With respect to benefits under chapter 23 of this title, in 
the case of an individual described in paragraph (2), the second 
sentence of subsection (a) or (b), as otherwise applicable, shall not 
apply. 

(2) Paragraph (1) applies to any individual whose service is described 
in subsection (a) and who dies after November 1, 2000, or 
whose service is described in subsection (b) and who dies after the 
date of the enactment of the Veterans Benefits Act of 2003, if the 
individual, on the individualï¿½s date of death- 
(A) is a citizen of, or an alien lawfully admitted for permanent 
residence in, the United States; 
(B) is residing in the United States; and 
(C) either- 
(i) is receiving compensation under chapter 11 of this 
title; or 
(ii) if the individualï¿½s service had been deemed to be 
active military, naval, or air service, would have been paid 
pension under section 1521 of this title without denial or 
discontinuance by reason of section 1522 of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1111; Pub. L. 87-268, 
Sec. 1(b), Sept. 21, 1961, 75 Stat. 566; Pub. L. 89-641, Sec. 2(a), 
Oct. 11, 1966, 80 Stat. 885; Pub. L. 97-295, Sec. 4(4), Oct. 12, 1982, 
96 Stat. 1305; Pub. L. 99-576, title VII, Sec. 701(6), Oct. 28, 1986, 
100 Stat. 3291; Pub. L. 102-83, Sec. 4(a)(1), 5(c)(1), Aug. 6, 1991, 
105 Stat. 403, 406; Pub. L. 103-446, title V, Sec. 507(a), Nov. 2, 
1994, 108 Stat. 4664; Pub. L. 106-377, Sec. 1(a)(1) [title V, Sec. 
501(a)(1)], Oct. 27, 2000, 114 Stat. 1441, 1441A-57; Pub. L. 106-419, 
title III, Secs. 331(b), 332(a), Nov. 1, 2000, 114 Stat. 1856; Pub. L. 
107-14, Sec. 8(a)(1), June 5, 2001, 115 Stat. 34; Pub. L. 107-330, 
title III, Sec. 308(g)(2), Dec. 6, 2002, 116 Stat. 2828; Pub. L. 
108-183, title II, Secs. 211(a), 212(a), Dec. 16, 2003, 117 Stat. 
2657, 2658.) 

ï¿½ 108. Seven-year absence presumption of death 

(a) No State law providing for presumption of death shall be 
applicable to claims for benefits under laws administered by the 
Secretary. 
(b) If evidence satisfactory to the Secretary is submitted establishing 
the continued and unexplained absence of any individual 
from that individualï¿½s home and family for seven or more years, 
and establishing that after diligent search no evidence of that 
individualï¿½s existence after the date of disappearance has been found 



Sec. 109 CH. 1-GENERAL 16 

or received, the death of such individual as of the date of the 
expiration of such period shall be considered as sufficiently proved. 

(c) Except in a suit brought pursuant to section 1984 of this 
title, the finding of death made by the Secretary shall be final and 
conclusive. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1112; Pub. L. 99-576, title 
VII, Sec. 701(7), Oct. 28, 1986, 100 Stat. 3291; Pub. L. 102-83, 
Sec. 4(a)(1), (b)(1), (2)(E), 5(c)(1), Aug. 
6, 1991, 105 Stat. 403-406.) 

ï¿½ 109. Benefits for discharged members of allied forces 

(a)(1) In consideration of reciprocal services extended to the 
United States, the Secretary, upon request of the proper officials of 
the government of any nation allied or associated with the United 
States in World War I (except any nation which was an enemy of 
the United States during World War II), or in World War II, may 
furnish to discharged members of the armed forces of such government, 
under agreements requiring reimbursement in cash of expenses so 
incurred, at such rates and under such regulations as the 
Secretary may prescribe, medical, surgical, and dental treatment, 
hospital care, transportation and traveling expenses, prosthetic 
appliances, education, training, or similar benefits authorized by the 
laws of such nation for its veterans, and services required in 
extending such benefits. Hospitalization in a Department facility 
shall not be afforded under this section, except in emergencies, unless 
there are available beds surplus to the needs of veterans of 
this country. The Secretary may also pay the court costs and other 
expenses incident to the proceedings taken for the commitment of 
such discharged members who are mentally incompetent to institutions 
for the care or treatment of the insane. 

(2) The Secretary, in carrying out the provisions of this subsection, 
may contract for necessary services in private, State, and 
other Government hospitals. 
(3) All amounts received by the Department as reimbursement 
for such services shall be credited to the current appropriation of 
the Department from which expenditures were made under this 
subsection. 
(b) Persons who served in the active service in the armed 
forces of any government allied with the United States in World 
War II and who at time of entrance into such active service were 
citizens of the United States shall, by virtue of such service, and 
if otherwise qualified, be entitled to the benefits of chapters 31 and 
37 of this title in the same manner and to the same extent as veterans 
of World War II are entitled. No such benefit shall be extended to any 
person who is not a resident of the United States at 
the time of filing claim, or to any person who has applied for and 
received the same or any similar benefit from the government in 
whose armed forces such person served. 
(c)(1) Any person who served during World War I or World 
War II as a member of any armed force of the Government of 
Czechoslovakia or Poland and participated while so serving in 
armed conflict with an enemy of the United States and has been 
a citizen of the United States for at least ten years shall, by virtue 
of such service, and upon satisfactory evidence thereof, be entitled 
to hospital and domiciliary care and medical services within the 




17 CH. 1-GENERAL Sec. 111 

United States under chapter 17 of this title to the same extent as 
if such service had been performed in the Armed Forces of the 
United States unless such person is entitled to, or would, upon 
application thereof, be entitled to, payment for equivalent care and 
services under a program established by the foreign government 
concerned for persons who served in its armed forces in World War 
I or World War II. 

(2) In order to assist the Secretary in making a determination 
of proper service eligibility under this subsection, each applicant 
for the benefits thereof shall furnish an authenticated certification 
from the French Ministry of Defense or the British War Office as 
to records in either such Office which clearly indicate military 
service of the applicant in the Czechoslovakian or Polish armed forces 
and subsequent service in or with the armed forces of France or 
Great Britain during the period of World War I or World War II. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1112; Pub. L. 94-491, 
Oct. 14, 1976, 90 Stat. 2363; Pub. L. 99-576, title VII, Sec. 701(8), 
Oct. 28, 1986, 100 Stat. 3291; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 110. Preservation of disability ratings 

A rating of total disability or permanent total disability which 
has been made for compensation, pension, or insurance purposes 
under laws administered by the Secretary, and which has been 
continuously in force for twenty or more years, shall not be reduced 
thereafter, except upon a showing that such rating was based on 
fraud. A disability which has been continuously rated at or above 
evaluation for twenty or more years for compensation purposes 
under laws administered by the Secretary shall not thereafter be 
rated at less than such evaluation, except upon a showing that 
such rating was based on fraud. The mentioned period shall be 
computed from the date determined by the Secretary as the date 
on which the status commenced for rating purposes. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1113; Pub. L. 87-825, Sec. 6, 
Oct. 15, 1962, 76 Stat. 950; Pub. L. 88-445, Sec. 1(a), (b), Aug. 19, 
1964, 78 Stat. 464; Pub. L. 91-32, June 23, 1969, 83 Stat. 38; Pub. L. 
102-83, Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 403-405.) 

ï¿½ 111. Payments or allowances for beneficiary travel 

(a) Under regulations prescribed by the President pursuant to 
the provisions of this section, the Secretary may pay the actual 
necessary expense of travel (including lodging and subsistence), or 
in lieu thereof an allowance based upon mileage traveled, of any 
person to or from a Department facility or other place in connection 
with vocational rehabilitation, counseling required by the Secretary 
pursuant to chapter 34 or 35 of this title, or for the purpose of 
examination, treatment, or care. In addition to the mileage allowance 
authorized by this section, there may be allowed reimbursement for 
the actual cost of ferry fares, and bridge, road, and tunnel tolls. 
(b)(1) Except as provided in subsection (c) of this section and 
notwithstanding subsection (g)(2)(A) of this section or any other 
provision of law, if, with respect to any fiscal year, the Secretary 
exercises the authority under this section to make any payments, 
the Secretary shall make the payments provided for in this section 




Sec. 111 CH. 1-GENERAL 18 

to or for the following persons for travel during such fiscal year for 
examination, treatment, or care for which the person is eligible: 

(A) A veteran or other person whose travel is in connection 
with treatment or care for a service-connected disability. 
(B) A veteran with a service-connected disability rated at 
30 percent or more. 
(C) A veteran receiving pension under section 1521 of this 
title. 
(D) A veteran (i) whose annual income (as determined 
under section 1503 of this title) does not exceed the maximum 
annual rate of pension which would be payable to such veteran 
if such veteran were eligible for pension under section 1521 of 
this title, or (ii) who is determined, under regulations prescribed by 
the Secretary, to be unable to defray the expenses 
of the travel for which payment under this section is claimed. 
(E) Subject to paragraph (3) of this subsection, a veteran 
or other person whose travel to or from a Department facility 
is medically required to be performed by a special mode of 
travel and who is determined under such regulations to be unable to 
defray the expenses of the travel for which payment 
under this section is claimed. 
(F) A veteran whose travel to a Department facility is incident to a 
scheduled compensation and pension examination. 
(2) The Secretary may make payments provided for in this section to or 
for any person not covered by paragraph (1) of this subsection for 
travel by such person for examination, treatment, or 
care. Such payments shall be made in accordance with regulations 
which the Secretary shall prescribe. 
(3)(A) Except as provided in subparagraph (B) of this paragraph, the 
Secretary shall not make payments under this section 
for travel performed by a special mode of travel unless (i) the travel 
by such mode is medically required and is authorized by the Secretary 
before the travel begins, or (ii) the travel by such mode is 
in connection with a medical emergency of such a nature that the 
delay incident to obtaining authorization from the Secretary to use 
that mode of travel would have been hazardous to the personï¿½s life 
or health. 

(B) In the case of travel by a person to or from a Department 
facility by special mode of travel, the Secretary may provide payment 
under this section to the provider of the transportation by 
special mode before determining the eligibility of such person for 
such payment if the Secretary determines that providing such payment is 
in the best interest of furnishing care and services. Such 
a payment shall be made subject to subsequently recovering from 
such person the amount of the payment if such person is determined to 
have been ineligible for payment for such travel. 
(c)(1) Except as otherwise provided in this subsection, the Secretary, 
in making a payment under this section to or for a person 
described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) 
of this section for travel for examination, treatment, or care, shall 
deduct from the amount otherwise payable an amount equal to $3 
for each one-way trip. 

(2) In the case of a person who is determined by the Secretary 
to be a person who is required to make six or more one-way trips 




19 CH. 1-GENERAL Sec. 111 

for needed examination, treatment, or care during the remainder of 
the calendar month in which the determination is made or during 
any subsequent calendar month during the one-year period following the 
last day of the month in which the determination is 
made, the amount deducted by the Secretary pursuant to paragraph (1) of 
this subsection from payments for trips made to or 
from such facility during any such month shall not exceed $18. 

(3) No deduction shall be made pursuant to paragraph (1) of 
this subsection in the case of a person whose travel to or from a 
Department facility is performed by a special mode of travel for 
which payment under this section is authorized under subsection 
(b)(3) of this section. 
(4) The Secretary may waive the deduction requirement of 
paragraph (1) of this subsection in the case of the travel of any 
veteran for whom the imposition of the deduction would cause severe 
financial hardship. The Secretary shall prescribe in regulations the 
conditions under which a finding of severe financial hardship is 
warranted for purposes of this paragraph. 
(d) Payment of the following expenses or allowances in connection with 
vocational rehabilitation, counseling, or upon termination 
of examination, treatment, or care, may be made before the completion 
of travel: 
(1) The mileage allowance authorized by subsection (a) of 
this section. 
(2) Actual local travel expenses. 
(3) The expense of hiring an automobile or ambulance, or 
the fee authorized for the services of a nonemployee attendant. 
(e) When any person entitled to mileage under this section requires an 
attendant (other than an employee of the Department) in 
order to perform such travel, the attendant may be allowed expenses of 
travel upon the same basis as such person. 
(f) The Secretary may provide for the purchase of printed reduced-fare 
requests for use by veterans and their authorized attendants when 
traveling at their own expense to or from any Department facility. 
(g)(1) Subject to paragraph (3), in determining the amount of 
allowances or reimbursement to be paid under this section, the 
Secretary shall use the mileage reimbursement rate for the use of 
privately owned vehicles by Government employees on official business 
(when a Government vehicle is available), as prescribed by the 
Administrator of General Services under section 5707(b) of title 5. 

(2) In no event shall payment be provided under this section- 
(A) unless the person claiming reimbursement has been 
determined, pursuant to regulations which the Secretary shall 
prescribe, to be unable to defray the expenses of such travel 
(except with respect to a person receiving benefits for or in 
connection with a service-connected disability under this title, a 
veteran receiving or eligible to receive pension under section 
1521 of this title, or a person whose annual income, determined in 
accordance with section 1503 of this title, does not exceed the maximum 
annual rate of pension which would be payable to such person if such 
person were eligible for pension 
under section 1521 of this title); 




Sec. 112 CH. 1-GENERAL 20 

(B) to reimburse for the cost of travel by privately owned 
vehicle in any amount in excess of the cost of such travel by 
public transportation unless (i) public transportation is not 
reasonably accessible or would be medically inadvisable, or (ii) the 
cost of such travel is not greater than the cost of public 
transportation; and 
(C) in excess of the actual expense incurred by such person 
as certified in writing by such person. 
(3) Subject to the availability of appropriations, the Secretary 
may modify the amount of allowances or reimbursement to be paid 
under this section using a mileage reimbursement rate in excess of 
that prescribed under paragraph (1). 
(h) The Secretary, in consultation and coordination with the 
Secretary of Transportation and appropriate representatives of 
veteransï¿½ service organizations, shall take all appropriate steps to 
facilitate the establishment and maintenance of a program under 
which such organizations, or individuals who are volunteering their 
services to the Department, would take responsibility for the 
transportation, without reimbursement from the Department, to 
Department facilities of veterans (primarily those residing in areas 
which are geographically accessible to such facilities) who seek 
services or benefits from the Department under chapter 17 or other 
provisions 
of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1113; Pub. L. 86-590, 
July 5, 1960, 74 Stat. 
329; Pub. L. 89-358, Sec. 4(g), Mar. 3, 1966, 80 Stat. 24; Pub. L. 
89-455, June 18, 1966, 80 Stat. 208; Pub. L. 94-581, title I, Sec. 
101, Oct. 21, 1976, 90 Stat. 2842; Pub. L. 96-151, title II, Sec. 
201(a), Dec. 20, 1979, 93 Stat. 1093; Pub. L. 97-295, Sec. 4(5), 
Oct. 12, 1982, 96 Stat. 1305; Pub. L. 100-322, title I, Sec. 108(a), 
(b)(1), (c)-(e)(1), May 20, 1988, 102 Stat. 496-498; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (6), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 103-446, title XII, Sec. 1201(e)(1), Nov. 2, 
1994, 108 Stat. 4685; Pub. L. 110-387, title IV, Sec. 401(a)(1), 
(b), Oct. 10, 2008, 122 Stat. 4122.) 

ï¿½ 112. Presidential memorial certificate program 

(a) At the request of the President the Secretary may conduct 
a program for honoring the memory of deceased veterans, discharged 
under honorable conditions, by preparing and sending to eligible 
recipients a certificate bearing the signature of the President and 
expressing the countryï¿½s grateful recognition of the veteranï¿½s service 
in the Armed Forces. The award of a certificate to one eligible 
recipient will not preclude authorization of another certificate if a 
request is received from some other eligible recipient. 
(b) For the purpose of this section an ï¿½ï¿½eligible recipientï¿½ï¿½ means 
the next of kin, a relative or friend upon request, or an authorized 
service representative acting on behalf of such relative or friend. 
(c) A certificate may not be furnished under the program under 
subsection (a) on behalf of a deceased person described in section 
2411(b) of this title. 
(Added Pub. L. 89-88, Sec. 1(a), July 24, 1965, 79 Stat. 264; amended 
Pub. L. 102- 83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405; Pub. L. 107-330, title II, Sec. 201(a), Dec. 6, 2002, 116 Stat. 
2823.) 





21 CH. 1-GENERAL Sec. 113 

ï¿½ 113. Treatment of certain programs under sequestration 
procedures 

(a) The following programs shall be exempt from sequestration 
or reduction under part C of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) or any other 
sequestration law and shall not be included in any report specifying 
reductions in Federal spending: 
(1) Benefits under chapter 21 of this title, relating to specially 
adapted housing and mortgage-protection life insurance 
for certain veterans with service-connected disabilities. 
(2) Benefits under section 2307 of this title, relating to 
burial benefits for veterans who die as the result of a service-
connected disability. 
(3) Benefits under chapter 39 of this title, relating to automobiles 
and adaptive equipment for certain disabled veterans 
and members of the Armed Forces. 
(4) Assistance and services under chapter 31 of this title, 
relating to training and rehabilitation for certain veterans with 
service-connected disabilities. 
(5) Benefits under chapter 35 of this title, relating to educational 
assistance for survivors and dependents of certain veterans with 
service-connected disabilities. 
(6) Benefits under subchapters I, II, and III of chapter 37 
of this title, relating to housing loans for certain veterans and 
for the spouses and surviving spouses of certain veterans. 
(b) The following accounts of the Department shall be exempt 
from sequestration or reduction under part C of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901 
et seq.) or any other sequestration law and shall not be included 
in any report specifying reductions in Federal spending: 
(1) The following life insurance accounts: 
(A) The National Service Life Insurance Fund authorized by section 1920 
of this title. 
(B) The Service-Disabled Veterans Insurance Fund authorized by section 
1922 of this title. 
(C) The Veterans Special Life Insurance Fund authorized by section 1923 
of this title. 
(D) The Veterans Reopened Insurance Fund authorized by section 1925 of 
this title. 
(E) The United States Government Life Insurance 
Fund authorized by section 1955 of this title. 
(F) The Veterans Insurance and Indemnity appropriation authorized by 
section 1919 of this title. 
(2) The following revolving fund accounts: 
(A) The Department of Veterans Affairs Special Therapeutic and 
Rehabilitation Activities Fund established by 
section 1718(c) of this title. 
(B) The Veteransï¿½ Canteen Service revolving fund authorized by section 
7804 of this title. 
(c)(1) A benefit under section 2301, 2302, 2303, 2306, or 2308 
of this title that is subject to reduction under a sequestration order 
or sequestration law shall be paid in accordance with the rates de


Sec. 113 CH. 1-GENERAL 22 

termined under the sequestration order or law (if any) in effect on 
the date of the death of the veteran concerned. 

(2) A benefit paid to, or on behalf of, an eligible veteran for 
pursuit of a program of education or training under chapter 30, 31, 
34, 35, or 36 of this title that is subject to a sequestration order 
or a sequestration law shall be paid in accordance with the rates 
determined under the sequestration order or law (if any) in effect 
during the period of education or training for which the benefit is 
paid. 
(3) In implementation of a sequestration order or law with respect to 
each account from which a benefit described in paragraph (1) or (2) of 
this subsection is paid (including the making of determinations of the 
amounts by which such benefits are to be reduced), the total of the 
amounts (as estimated by the Secretary 
after consultation with the Director of the Congressional Budget 
Office) by which payments of such benefit will be reduced by reason 
of such paragraph after the last day of the period during which 
such order or law is in effect shall be deemed to be additional 
reductions in the payments of such benefit made, and in new budget 
authority for such payments, during such period. 
(d) In computing the amount of new budget authority by which 
a budget account of the Department is to be reduced for a fiscal 
year under a report of the Director of the Office of Management 
and Budget, or under an order of the President under part C of the 
Balanced Budget and Emergency Deficit Control Act of 1985, the 
base from which the amount of the reduction for such account is 
determined shall be established without regard to any amount of 
new budget authority in such account (determined under section 
251(a)(6) of such Act) for any of the programs listed in subsection 
(a) of this section. 
(e) This section applies without regard to any other provision 
of law (whether enacted before, on, or after the date of the enactment 
of this section) unless such Act expressly provides that it is 
enacted as a limitation to this section. 
(f) For the purposes of this section: 
(1) The term ï¿½ï¿½sequestrationï¿½ï¿½ means a reduction in spending authority 
and loan guarantee commitments generally 
throughout the Government under the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) 
or any other law. 
(2) The term ï¿½ï¿½sequestration lawï¿½ï¿½ means a law enacted 
with respect to a sequestration under the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) 
or any other law (under the procedures specified in that Act or 
otherwise). 
(3) The term ï¿½ï¿½sequestration orderï¿½ï¿½ means an order of the 
President issued under part C of such Act. 
(Added Pub. L. 99-576, title VI, Sec. 601(a)(1), Oct. 28, 1986, 100 
Stat. 3287; amended Pub. L. 100-198, Sec. 12(a), Dec. 21, 1987, 101 
Stat. 1325; Pub. L. 100- 322, title IV, Sec. 411(b), (c), May 20, 
1988, 102 Stat. 547; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 
1991, 105 Stat. 239; Pub. L. 102-83, Sec. 4(a)(2)(B)(i), (3), (4), 
(b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 403-406.) 






23 CH. 1-GENERAL Sec. 114 

ï¿½ 114. Multiyear procurement 

(a) The Secretary may enter into a multiyear contract for the 
procurement of supplies or services if the Secretary makes each of 
the following determinations: 
(1) Appropriations are available for obligations that are 
necessary for total payments that would be required during the 
fiscal year in which the contract is entered into, plus the estimated 
amount of any cancellation charge payable under the 
contract. 
(2) The contract is in the best interest of the United States 
by reason of the effect that use of a multiyear, rather than one-
year, contract would have in- 
(A) reducing costs; 
(B) achieving economies in contract administration or 
in any other Department activities; 
(C) increasing quality of performance by or service 
from the contractors; or 
(D) encouraging effective competition. 
(3) During the proposed contract period- 
(A) there will be a continuing or recurring need for the 
supplies or services being procured; 
(B) there is not a substantial likelihood of substantial 
changes in the need for such supplies or services in terms 
of the total quantity of such supplies or services or of the 
rate of delivery of such supplies or services; and 
(C) the specifications for the supplies or services are 
expected to be reasonably stable. 
(4) The risks relating to the prospective contractorï¿½s ability 
to perform in accordance with the specifications and other 
terms of the contract are not excessive. 
(5) The use of a multiyear contract will not inhibit small 
business concerns in competing for the contract. 
(6) In the case of the procurement of a pharmaceutical 
item for which a patent has expired less than four years before 
the date on which the solicitation of offers is issued, there is 
no substantial likelihood that increased competition among potential 
contractors would occur during the term of the contract as the result 
of the availability of generic equivalents increasing during the term 
of the contract. (b)(1) A multiyear contract authorized by this 
section shall con
tain- 

(A) a provision that the obligation of the United States 
under the contract during any fiscal year which is included in 
the contract period and is subsequent to the fiscal year during 
which the contract is entered into is contingent on the availability of 
sufficient appropriations (as determined by the Secretary pursuant to 
paragraph (2)(A) of this subsection) if, at the time the contract is 
entered into, appropriations are not available to cover the total 
estimated payments that will be required during the full term of the 
contract; and (B) notwithstanding section 1502(a) of title 31, a 
provision for the payment of reasonable cancellation charges to 
compensate the contractor for nonrecurring, unrecovered costs, if 


Sec. 115 CH. 1-GENERAL 24 

any, if the performance is cancelled pursuant to the provision 

required by subparagraph (A) of this paragraph. 

(2)(A) If, during a fiscal year after the fiscal year during which 
a multiyear contract is entered into under this section, the Secretary 
determines that, in light of other funding needs involved in 
the operation of Department programs, the amount of funds appropriated 
for such subsequent fiscal year is not sufficient for such 
contract, the Secretary shall cancel such contract pursuant to the 
provisions required by paragraph (1)(A) of this subsection. 

(B) Cancellation charges under a multiyear contract shall be 
paid from the appropriated funds which were originally available 
for performance of the contract or the payment of cancellation costs 
unless such funds are not available in an amount sufficient to pay 
the entire amount of the cancellation charges payable under the 
contract. In a case in which such funds are not available in such 
amount, funds available for the procurement of supplies and services 
for use for the same purposes as the supplies or services procured 
through such contract shall be used to the extent necessary 
to pay such cost. 
(c) Nothing in this section shall be construed so as to restrict 
the Secretaryï¿½s exercise of the right to terminate for convenience a 
contract under any other provision of law which authorizes 
multiyear contracting. 
(d) The Secretary shall prescribe regulations for the implementation of 
this section. 
(e) For the purposes of this section: 
(1) The term ï¿½ï¿½appropriationsï¿½ï¿½ has the meaning given that 
term in section 1511 of title 31. 
(2) The term ï¿½ï¿½multiyear contractï¿½ï¿½ means a contract which 
by its terms is to remain in effect for a period which extends 
beyond the end of the fiscal year during which the contract is 
entered into but not beyond the end of the fourth fiscal year 
following such fiscal year. Such term does not include a contract for 
construction or for a lease of real property. 
(3) The term ï¿½ï¿½nonrecurring, unrecovered costsï¿½ï¿½ means 
those costs reasonably incurred by the contractor in performing 
a multiyear contract which (as determined under regulations 
prescribed under subsection (d) of this section) are generally 
incurred on a one-time basis. 
(Added Pub. L. 100-322, title IV, Sec. 404(a), May 20, 1988, 102 Stat. 
545; amended Pub. L. 101-237, title VI, Sec. 601(a), (b)(1), Dec. 18, 
1989, 103 Stat. 2094; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 115. Acquisition of real property 

For the purposes of sections 314, 315, 316, and 2406 of this 
title and subchapter I of chapter 81 of this title, the Secretary may 
acquire and use real property- 

(1) before title to the property is approved under section 
3111 of title 40; and 
(2) even though the property will be held in other than a 
fee simple interest in a case in which the Secretary determines 
that the interest to be acquired is sufficient for the purposes 
of the intended use. 

25 CH. 1-GENERAL Sec. 116 

(Added Pub. L. 102-86, title IV, Sec. 402(a), Aug. 14, 1991, 105 Stat. 
422; amended Pub. L. 102-83, Sec. 5(c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 103-446, title XII, Sec. 1201(d)(1), Nov. 2, 1994, 108 Stat. 
4684; Pub. L. 107-217, Sec. 3(j)(1), Aug. 21, 
2002, 116 Stat. 1300.) 

ï¿½ 116. Reports to Congress: cost information 

Whenever the Secretary submits to Congress, or any committee of 
Congress, a report that is required by law or by a joint explanatory 
statement of a committee of conference of the Congress, the Secretary 
shall include with the report- 

(1) a statement of the cost of preparing the report; and 
(2) a brief explanation of the methodology used in pre
paring that cost statement. 
(Added Pub. L. 106-419, title IV, Sec. 403(d)(1)(A), Nov. 1, 2000, 
114 Stat. 1864.) 


CHAPTER 3 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


27 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART I-GENERAL PROVISIONSï¿½ 

CHAPTER 3-DEPARTMENT OF VETERANS AFFAIRS 

Sec. 

301. Department. 
302. Seal. 
303. Secretary of Veterans Affairs. 
304. Deputy Secretary of Veterans Affairs. 
305. Under Secretary for Health. 
306. Under Secretary for Benefits. 
307. Under Secretary for Memorial Affairs. 
308. Assistant Secretaries; Deputy Assistant Secretaries. 
309. Chief Financial Officer. 
310. Chief Information Officer. 
311. General Counsel. 
312. Inspector General. 
312A. Director of Construction and Facilities Management. 
313. Availability of appropriations. 
314. Central Office. 
315. Regional offices. 
316. Colocation of regional offices and medical centers. 
317. Center for Minority Veterans. 
318. Center for Women Veterans. 
319. Office of Employment Discrimination Complaint Adjudication. 
320. Department of Veterans Affairs-Department of Defense Joint 
Executive 
Committee. 
321. Office of Survivors Assistance. 
322. Office of National Veterans Sports Programs and Special Events. 
ï¿½ 301. Department 

(a) The Department of Veterans Affairs is an executive department of 
the United States. 
(b) The purpose of the Department is to administer the laws 
providing benefits and other services to veterans and the dependents 
and the beneficiaries of veterans. 
(c) The Department is composed of the following: 
(1) The Office of the Secretary. 
(2) The Veterans Health Administration. 
(3) The Veterans Benefits Administration. 
(4) The National Cemetery Administration. 
(5) The Board of Veteransï¿½ Appeals. 
(6) The Veteransï¿½ Canteen Service. 
(7) The Board of Contract Appeals. 
(8) Such other offices and agencies as are established or 
designated by law or by the President or the Secretary. 
(9) Any office, agency, or activity under the control or supervision of 
any element named in paragraphs (1) through (8). 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 378; amended 
Pub. L. 105- 
368, title IV, Sec. 403(a)(2), Nov. 11, 1998, 112 Stat. 3338.) 

29 


Sec. 302 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 30 

ï¿½ 302. Seal 

(a) The Secretary of Veterans Affairs shall cause a seal of office 
to be made for the Department of such device as the President 
shall approve. Judicial notice shall be taken of the seal. 
(b) Copies of any public document, record, or paper belonging 
to or in the files of the Department, when authenticated by the seal 
and certified by the Secretary (or by an officer or employee of the 
Department to whom authority has been delegated in writing by 
the Secretary), shall be evidence equal with the original thereof. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 379.) 

ï¿½ 303. Secretary of Veterans Affairs 

There is a Secretary of Veterans Affairs, who is the head of the 
Department and is appointed by the President, by and with the advice 
and consent of the Senate. The Secretary is responsible for the 
proper execution and administration of all laws administered by 
the Department and for the control, direction, and management of 
the Department. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 379.) 

ï¿½ 304. Deputy Secretary of Veterans Affairs 

There is in the Department a Deputy Secretary of Veterans Affairs, who 
is appointed by the President, by and with the advice 
and consent of the Senate. The Deputy Secretary shall perform 
such functions as the Secretary shall prescribe. Unless the President 
designates another officer of the Government, the Deputy Secretary 
shall be Acting Secretary of Veterans Affairs during the absence or 
disability of the Secretary or in the event of a vacancy in 
the office of Secretary. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 379.) 

ï¿½ 305. Under Secretary for Health 

(a)(1) There is in the Department an Under Secretary for 
Health, who is appointed by the President, by and with the advice 
and consent of the Senate. 

(2) The Under Secretary for Health shall be appointed without 
regard to political affiliation or activity and solely- 
(A) on the basis of demonstrated ability in the medical profession, in 
health-care administration and policy formulation, 
or in health-care fiscal management; and 
(B) on the basis of substantial experience in connection 
with the programs of the Veterans Health Administration or 
programs of similar content and scope. 
(b) The Under Secretary for Health is the head of, and is directly 
responsible to the Secretary for the operation of, the Veterans Health 
Administration. 
(c)(1) Whenever a vacancy in the position of Under Secretary 
for Health occurs or is anticipated, the Secretary shall establish a 
commission to recommend individuals to the President for appointment to 
the position. 

(2) A commission established under this subsection shall be 
composed of the following members appointed by the Secretary: 

31 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 306 

(A) Three persons representing clinical care and medical 
research and education activities affected by the Veterans 
Health Administration. 
(B) Two persons representing veterans served by the Veterans Health 
Administration. 
(C) Two persons who have experience in the management 
of veterans health services and research programs, or programs of 
similar content and scope. 
(D) The Deputy Secretary of Veterans Affairs. 
(E) The Chairman of the Special Medical Advisory Group 
established under section 7312 of this title. 
(F) One person who has held the position of Under Secretary for Health 
(including service as Chief Medical Director 
of the Veteransï¿½ Administration), if the Secretary determines 
that it is desirable for such person to be a member of the commission. 
(3) A commission established under this subsection shall recommend at 
least three individuals for appointment to the position 
of Under Secretary for Health. The commission shall submit all 
recommendations to the Secretary. The Secretary shall forward the 
recommendations to the President with any comments the Secretary 
considers appropriate. Thereafter, the President may request the 
commission to recommend additional individuals for appointment. 
(4) The Assistant Secretary or Deputy Assistant Secretary of 
Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this subsection. 
(Added and amended Pub. L. 102-83, Sec. 2(a), 4(a)(3), (4), Aug. 6, 
1991, 105 Stat. 
379, 404; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 
106 Stat. 1984; Pub. 

L. 103-446, title XII, Sec. 1201(c)(1), (e)(2), Nov. 2, 1994, 108 
Stat. 4683, 4685; Pub. 
L. 108-422, title V, Sec. 503, Nov. 30, 2004, 118 Stat. 2396; Pub. L. 
109-461, title 
II, Sec. 210(a), Dec. 22, 2006, 120 Stat. 3418.) 
ï¿½ 306. Under Secretary for Benefits 

(a) There is in the Department an Under Secretary for Benefits, who is 
appointed by the President, by and with the advice and 
consent of the Senate. The Under Secretary for Benefits shall be 
appointed without regard to political affiliation or activity and 
solely on the basis of demonstrated ability in- 
(1) fiscal management; and 
(2) the administration of programs within the Veterans 
Benefits Administration or programs of similar content and 
scope. 
(b) The Under Secretary for Benefits is the head of, and is directly 
responsible to the Secretary for the operations of, the Veterans 
Benefits Administration. 
(c)(1) Whenever a vacancy in the position of Under Secretary 
for Benefits occurs or is anticipated, the Secretary shall establish 
a commission to recommend individuals to the President for appointment 
to the position. 

(2) A commission established under this subsection shall be 
composed of the following members appointed by the Secretary: 

Sec. 307 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 32 

(A) Three persons representing education and training, 
real estate, mortgage finance, and related industries, and survivor 
benefits activities affected by the Veterans Benefits Administration. 
(B) Two persons representing veterans served by the Veterans Benefits 
Administration. 
(C) Two persons who have experience in the management 
of veterans benefits programs or programs of similar content 
and scope. 
(D) The Deputy Secretary of Veterans Affairs. 
(E) The chairman of the Veteransï¿½ Advisory Committee on 
Education formed under section 3692 of this title. 
(F) One person who has held the position of Under Secretary for 
Benefits (including service as Chief Benefits Director 
of the Veteransï¿½ Administration), if the Secretary determines 
that it is desirable for such person to be a member of the commission. 
(3) A commission established under this subsection shall recommend at 
least three individuals for appointment to the position 
of Under Secretary for Benefits. The commission shall submit all 
recommendations to the Secretary. The Secretary shall forward the 
recommendations to the President with any comments the Secretary 
considers appropriate. Thereafter, the President may request the 
commission to recommend additional individuals for appointment. 
(4) The Assistant Secretary or Deputy Assistant Secretary of 
Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this subsection. 
(Added and amended Pub. L. 102-83, Sec. 2(a), 4(a)(3), (4), 
Aug. 6, 1991, 105 Stat. 
380, 404; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 
106 Stat. 1984; Pub. L. 103-446, title XII, Sec. 1201(c)(2), (e)(2), 
Nov. 2, 1994, 108 Stat. 4683, 4685; Pub. L. 109-461, title II, Sec. 
210(b), Dec. 22, 2006, 120 Stat. 3418.) 
ï¿½ 307. Under Secretary for Memorial Affairs 

There is in the Department an Under Secretary for Memorial 
Affairs, who is appointed by the President, by and with the advice 
and consent of the Senate. The Under Secretary is the head of the 
National Cemetery Administration as established in section 2400 of 
this title and shall perform such functions as may be assigned by 
the Secretary. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 381; amended 
Pub. L. 105-368, title IV, Sec. 403(a)(3), (c)(1)(A), Nov. 11, 1998, 
112 Stat. 3338.) 

ï¿½ 308. Assistant Secretaries; Deputy Assistant Secretaries 

(a) There shall be in the Department not more than seven Assistant 
Secretaries. Each Assistant Secretary shall be appointed by 
the President, by and with the advice and consent of the Senate. 
(b) The Secretary shall assign to the Assistant Secretaries 
responsibility for the administration of such functions and duties as 
the Secretary considers appropriate, including the following functions: 
(1) Budgetary and financial functions. 
(2) Personnel management and labor relations functions. 

33 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 310 

(3) Planning, studies, and evaluations. 
(4) Management, productivity, and logistic support functions. 
(5) Information management functions as required by section 3506 of 
title 44. 
(6) Capital facilities and real property program functions. 
(7) Equal opportunity functions. 
(8) Functions regarding the investigation of complaints of 
employment discrimination within the Department. 
(9) Functions regarding intergovernmental, public, and 
consumer information and affairs. 
(10) Procurement functions. 
(11) Operations, preparedness, security, and law enforcement functions. 
(c) Whenever the President nominates an individual for appointment as 
an Assistant Secretary, the President shall include in 
the communication to the Senate of the nomination a statement of 
the particular functions of the Department specified in subsection 
(b), and any other functions of the Department, the individual will 
exercise upon taking office. 
(d)(1) There shall be in the Department such number of Deputy Assistant 
Secretaries, not exceeding 19, as the Secretary may 
determine. Each Deputy Assistant Secretary shall be appointed by 
the Secretary and shall perform such functions as the Secretary 
prescribes. 

(2) At least two-thirds of the number of positions established 
and filled under paragraph (1) shall be filled by individuals who 
have at least five years of continuous service in the Federal civil 
service in the executive branch immediately preceding their appointment 
as a Deputy Assistant Secretary. For purposes of determining such 
continuous service of an individual, there shall be excluded any 
service by such individual in a position- 
(A) of a confidential, policy-determining, policy-making, or 
policy-advocating character; 
(B) in which such individual served as a noncareer appointee in the 
Senior Executive Service, as such term is defined in section 3132(a)(7) 
of title 5; or 
(C) to which such individual was appointed by the President. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 381; amended 
Pub. L. 107- 
287, Sec. 5(a)-(c), Nov. 7, 2002, 116 Stat. 2030.) 

ï¿½ 309. Chief Financial Officer 

The Secretary shall designate the Assistant Secretary whose 
functions include budgetary and financial functions as the Chief 
Financial Officer of the Department. The Chief Financial Officer 
shall advise the Secretary on financial management of the Department 
and shall exercise the authority and carry out the functions 
specified in section 902 of title 31. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 382.) 

ï¿½ 310. Chief Information Officer 

(a) The Chief Information Officer for the Department is designated 
pursuant to section 3506(a)(2) of title 44. 

Sec. 311 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 34 

(b) The Chief Information Officer performs the duties provided 
for chief information officers of executive agencies under chapter 35 
of title 44 and subtitle III of title 40. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 382; Pub. L. 
104-106, div. E, title LVI, Sec. 5604, Feb. 10, 1996, 110 Stat. 700; 
Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VIII, Sec. 
808(c)], Sept. 30, 1996, 110 Stat. 3009-394; Pub. L. 105-85, div. A, 
title X, Sec. 1073(h)(3), Nov. 18, 1997, 111 Stat. 1907; Pub. L. 107- 
217, Sec. 3(j)(2), Aug. 21, 2002, 116 Stat. 1300.) 

ï¿½ 311. General Counsel 

There is in the Department the Office of the General Counsel. 
There is at the head of the office a General Counsel, who is appointed 
by the President, by and with the advice and consent of the Senate. The 
General Counsel is the chief legal officer of the Department and 
provides legal assistance to the Secretary concerning the 
programs and policies of the Department. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 383.) 

ï¿½ 312. Inspector General 

(a) There is in the Department an Inspector General, who is 
appointed by the President, by and with the advice and consent of 
the Senate, as provided in the Inspector General Act of 1978 (5 
U.S.C. App.). The Inspector General performs the functions, has 
the responsibilities, and exercises the powers specified in that Act. 
(b)(1) The Secretary shall provide for not less than 40 full-time 
positions in the Office of Inspector General in addition to the number 
of such positions in that office on March 15, 1989. 

(2) The President shall include in the budget transmitted to 
the Congress for each fiscal year pursuant to section 1105 of title 
31 an estimate of the amount for the Office of Inspector General 
that is sufficient to provide for a number of full-time positions in 
that office that is not less than the number of full-time positions 
in that office on March 15, 1989, plus 40. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 383; amended 
Pub. L. 103- 446, title XII, Sec. 1201(e)(3), (g)(1), Nov. 2, 1994, 
108 Stat. 4685, 4687.) 

ï¿½ 312A. Director of Construction and Facilities Management 

(a) IN GENERAL.-(1) There is in the Department a Director of 
Construction and Facilities Management, who shall be appointed 
by the Secretary. 
(2) The position of Director of Construction and Facilities Management 
is a career reserved position, as such term is defined in 
section 3132(a)(8) of title 5. 
(3) The Director shall provide direct support to the Secretary 
in matters covered by the responsibilities of the Director under 
subsection (c). 
(4) The Director shall report to the Deputy Secretary in the 
discharge of the responsibilities of the Director under subsection 
(c). 
(b) QUALIFICATIONS.-Each individual appointed as Director of 
Construction and Facilities Management shall be an individual 
who- 
(1) holds an undergraduate or masterï¿½s degree in architectural design 
or engineering; and 

35 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 314 

(2) has substantive professional experience in the area of 
construction project management. 
(c) RESPONSIBILITIES.-(1) The Director of Construction and Facilities 
Management shall- 
(A) be responsible for overseeing and managing the planning, design, 
construction, and operation of facilities and infrastructure of the 
Department, including major and minor construction projects; and 
(B) perform such other functions as the Secretary shall 
prescribe. 
(2) In carrying out the oversight and management of construction and 
operation of facilities and infrastructure under this section, the 
Director shall be responsible for the following: 
(A) Development and updating of short-range and long-
range strategic capital investment strategies and plans of the 
Department. 
(B) Planning, design, and construction of facilities for the 
Department, including determining architectural and engineering 
requirements and ensuring compliance of the Department 
with applicable laws relating to the construction program of 
the Department. 
(C) Management of the short-term and long-term leasing of 
real property by the Department. 
(D) Repair and maintenance of facilities of the Department, including 
custodial services, building management and 
administration, and maintenance of roads, grounds, and infrastructure. 
(E) Management of procurement and acquisition processes 
relating to the construction and operation of facilities of the 
Department, including the award of contracts related to design, 
construction, furnishing, and supplies and equipment. 
(Added Pub. L. 109-461, title VIII, Sec. 811(a), Dec. 22, 2006, 120 
Stat. 3446.) 

ï¿½ 313. Availability of appropriations 

(a) Funds appropriated to the Department may remain available until 
expended. 
(b) Funds appropriated to the Department may not be used for 
a settlement of more than $1,000,000 on a construction contract 
unless- 
(1) the settlement is audited by an entity outside the Department for 
reasonableness and appropriateness of expenditures; and 
(2) the settlement is provided for specifically in an appro
priation law. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 383.) 

ï¿½ 314. Central Office 

The Central Office of the Department shall be in the District 
of Columbia. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 383.) 


Sec. 315 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 36 

ï¿½ 315. Regional offices 

(a) The Secretary may establish such regional offices and such 
other field offices within the United States, its Territories, 
Commonwealths, and possessions, as the Secretary considers necessary. 
(b) The Secretary may maintain a regional office in the Republic of 
the Philippines until December 31, 2009. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 384; amended 
Pub. L. 102- 291, Sec. 1(a), May 20, 1992, 106 Stat. 178; Pub. L. 
103-210, Sec. 2(c), Dec. 20, 1993, 107 Stat. 2497; Pub. L. 103-446, 
title V, Sec. 502, Nov. 2, 1994, 108 Stat. 4663; Pub. L. 106-117, 
title VIII, Sec. 802, Nov. 30, 1999, 113 Stat. 1586; Pub. L. 
108-183, title II, Sec. 213, Dec. 16, 2003, 117 Stat. 2658.) 

ï¿½ 316. Colocation of regional offices and medical centers 

(a) To provide for a more economical, efficient, and effective 
operation of such regional offices, the Secretary shall provide for the 
colocation of at least three regional offices with medical centers of 
the Department- 
(1) on real property under the jurisdiction of the Department of 
Veterans Affairs at such medical centers; or 
(2) on real property that is adjacent to such a medical center and is 
under the jurisdiction of the Department as a result 
of being conveyed to the United States for the purpose of such 
colocation. 
(b)(1) In carrying out this section and notwithstanding any 
other provision of law, the Secretary may lease, with or without 
compensation and for a period of not to exceed 35 years, to another 
party at not more than seven locations any of the real property 
described in paragraph (1) or (2) of subsection (a). 

(2) Such real property shall be used as the site of a facility- 
(A) constructed and owned by the lessee of such real property; and 
(B) leased under subsection (c)(1) to the Department for 
such use and such other activities as the Secretary determines 
are appropriate. 
(c)(1) The Secretary may enter into a lease for the use of any 
facility described in subsection (b)(2) for not more than 35 years 
under such terms and conditions as may be in the best interests 
of the Department. 

(2) Each agreement for such a lease shall provide- 
(A) that the obligation of the United States to make payments under 
the agreement is subject to the availability of appropriations for 
that purpose; and 
(B) that the ownership of the facility shall vest in the 
United States at the end of such lease. 
(d)(1) The Secretary may sublease any space in such a facility 
to another party at a rate not less than- 

(A) the rental rate paid by the Secretary for such space 
under subsection (c); plus 
(B) the amount the Secretary pays for the costs of administering such 
facility (including operation, maintenance, utility, 
and rehabilitation costs) which are attributable to such space. 
(2) In any such sublease, the Secretary shall include such 
terms relating to default and nonperformance as the Secretary considers 
appropriate to protect the interests of the United States. 

37 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 317 

(e) The Secretary shall use the receipts of any payment for the 
lease of real property under subsection (b) for the payment of the 
lease of a facility under subsection (c). 
(f)(1) Subject to paragraph (3)(A), the Secretary shall, not later 
than April 18, 1990, issue an invitation for offers with respect to 
three colocations to be carried out under this section. The invitation 
shall include, with respect to each such colocation, at least the 
following: 

(A) Identification of the site to be developed. 
(B) Minimum office space requirements for regional office 
activities. 
(C) Design criteria of the facility to be constructed. 
(D) A plan for meeting the security and parking needs for 
the facility and its occupants and visitors. 
(E) A statement of current and projected rents and other 
costs for regional office activities. 
(F) The estimated cost of construction of the facility concerned, the 
estimated annual cost of leasing space for regional 
office activities in the facility, and the estimated total annual 
cost of leasing all space in such facility. 
(G) A plan for securing appropriate licenses, easements, 
and rights-of-way. 
(H) A list of terms and conditions the Secretary has approved for 
inclusion in the lease agreement for the facility concerned. 
(2) Subject to paragraph (3)(B), the Secretary shall- 
(A) not later than one year after the date on which the invitation is 
issued under paragraph (1), enter into an agreement 
to carry out one colocation under this subsection; and 
(B) within 180 days after entering into the agreement referred to in 
subparagraph (A), enter into agreements to carry 
out two additional colocations, 
unless the Secretary determines that it is not economically feasible 
for the Department to undertake them, taking into consideration 
all of the tangible and intangible benefits associated with such 
colocations. 

(3) The Secretary shall- 
(A) at least 10 days before the issuance or other publication of the 
invitation referred to in paragraph (1), submit a 
copy of the invitation to the Committees on Veteransï¿½ Affairs 
of the Senate and House of Representatives; and 
(B) at least 30 days before entering into an agreement 
under paragraph (2), submit a copy to the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives of 
the proposals selected by the Secretary from those received in 
response to the invitation issued under paragraph (1). 
(g) The authority to enter into an agreement under this section 
shall expire on September 30, 1992.
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 384.)


ï¿½ 317. Center for Minority Veterans 

(a) There is in the Department a Center for Minority Veterans. 
There is at the head of the Center a Director. 

Sec. 317 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 38 

(b) The Director shall be a career or noncareer appointee in the 
Senior Executive Service. The Director shall be appointed for a 
term of six years. 
(c) The Director reports directly to the Secretary or the Deputy 
Secretary concerning the activities of the Center. 
(d) The Director shall perform the following functions with respect 
to veterans who are minorities: 
(1) Serve as principal adviser to the Secretary on the adoption and 
implementation of policies and programs affecting veterans who are 
minorities. 
(2) Make recommendations to the Secretary, the Under 
Secretary for Health, the Under Secretary for Benefits, and 
other Department officials for the establishment or improvement of 
programs in the Department for which veterans who 
are minorities are eligible. 
(3) Promote the use of benefits authorized by this title by 
veterans who are minorities and the conduct of outreach activities to 
veterans who are minorities, in conjunction with outreach activities 
carried out under chapter 77 of this title. 
(4) Disseminate information and serve as a resource center 
for the exchange of information regarding innovative and successful 
programs which improve the services available to veterans who are 
minorities. 
(5) Conduct and sponsor appropriate social and demographic research 
on the needs of veterans who are minorities 
and the extent to which programs authorized under this title 
meet the needs of those veterans, without regard to any law 
concerning the collection of information from the public. 
(6) Analyze and evaluate complaints made by or on behalf 
of veterans who are minorities about the adequacy and timeliness of 
services provided by the Department and advise the appropriate official 
of the Department of the results of such analysis or evaluation. 
(7) Consult with, and provide assistance and information 
to, officials responsible for administering Federal, State, local, 
and private programs that assist veterans, to encourage those 
officials to adopt policies which promote the use of those programs by 
veterans who are minorities. 
(8) Advise the Secretary when laws or policies have the effect of 
discouraging the use of benefits by veterans who are minorities. 
(9) Publicize the results of medical research which are of 
particular significance to veterans who are minorities. 
(10) Advise the Secretary and other appropriate officials on 
the effectiveness of the Departmentï¿½s efforts to accomplish the 
goals of section 492B of the Public Health Service Act (42 
U.S.C. 289a-2) with respect to the inclusion of minorities in 
clinical research and on particular health conditions affecting 
the health of members of minority groups which should be 
studied as part of the Departmentï¿½s medical research program 
and promote cooperation between the Department and other 
sponsors of medical research of potential benefit to veterans 
who are minorities. 

39 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 318 

(11) Provide support and administrative services to the Advisory 
Committee on Minority Veterans provided for under section 544 of this 
title. 
(12) Perform such other duties consistent with this section 
as the Secretary shall prescribe. 
(e) The Secretary shall ensure that the Director is furnished 
sufficient resources to enable the Director to carry out the functions 
of the Center in a timely manner. 
(f) The Secretary shall include in documents submitted to Congress by 
the Secretary in support of the Presidentï¿½s budget for each 
fiscal year- 
(1) detailed information on the budget for the Center; 
(2) the Secretaryï¿½s opinion as to whether the resources (including the 
number of employees) proposed in the budget for 
that fiscal year are adequate to enable the Center to comply 
with its statutory and regulatory duties; and 
(3) a report on the activities and significant accomplishments of the 
Center during the preceding fiscal year. 
(g) In this section- 
(1) The term ï¿½ï¿½veterans who are minoritiesï¿½ï¿½ means veterans who are 
minority group members. 
(2) The term ï¿½ï¿½minority group memberï¿½ï¿½ has the meaning 
given such term in section 544(d) of this title. 
(Added Pub. L. 103-446, title V, Sec. 509(a), Nov. 2, 1994, 108 Stat. 
4665; amended 
Pub. L. 104-275, title V, Sec. 501(a)-(c), Oct. 9, 1996, 110 Stat. 3340.) 

ï¿½ 318. Center for Women Veterans 

(a) There is in the Department a Center for Women Veterans. 
There is at the head of the Center a Director. 
(b) The Director shall be a career or noncareer appointee in the 
Senior Executive Service. The Director shall be appointed for a 
term of six years. 
(c) The Director reports directly to the Secretary or the Deputy 
Secretary concerning the activities of the Center. 
(d) The Director shall perform the following functions with respect to 
veterans who are women: 
(1) Serve as principal adviser to the Secretary on the adoption and 
implementation of policies and programs affecting veterans who are 
women. 
(2) Make recommendations to the Secretary, the Under 
Secretary for Health, the Under Secretary for Benefits, and 
other Department officials for the establishment or improvement of 
programs in the Department for which veterans who 
are women are eligible. 
(3) Promote the use of benefits authorized by this title by 
veterans who are women and the conduct of outreach activities 
to veterans who are women, in conjunction with outreach activities 
carried out under chapter 77 of this title. 
(4) Disseminate information and serve as a resource center 
for the exchange of information regarding innovative and successful 
programs which improve the services available to veterans who are women. 
(5) Conduct and sponsor appropriate social and demographic research on 
the needs of veterans who are women and 

Sec. 319 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 40 

the extent to which programs authorized under this title meet 
the needs of those veterans, without regard to any law concerning the 
collection of information from the public. 

(6) Analyze and evaluate complaints made by or on behalf 
of veterans who are women about the adequacy and timeliness 
of services provided by the Department and advise the appropriate 
official of the Department of the results of such analysis 
or evaluation. 
(7) Consult with, and provide assistance and information 
to, officials responsible for administering Federal, State, local, 
and private programs that assist veterans, to encourage those 
officials to adopt policies which promote the use of those programs by 
veterans who are women. 
(8) Advise the Secretary when laws or policies have the effect of 
discouraging the use of benefits by veterans who are 
women. 
(9) Publicize the results of medical research which are of 
particular significance to veterans who are women. 
(10) Advise the Secretary and other appropriate officials on 
the effectiveness of the Departmentï¿½s efforts to accomplish the 
goals of section 492B of the Public Health Service Act (42 
U.S.C. 289a-2) with respect to the inclusion of women in clinical 
research and on particular health conditions affecting 
womenï¿½s health which should be studied as part of the Departmentï¿½s 
medical research program and promote cooperation between the Department 
and other sponsors of medical research 
of potential benefit to veterans who are women. 
(11) Provide support and administrative services to the Advisory Committee 
on Women Veterans established under section 542 of this title. 
(12) Perform such other duties consistent with this section 
as the Secretary shall prescribe. 
(e) The Secretary shall ensure that the Director is furnished 
sufficient resources to enable the Director to carry out the functions 
of the Center in a timely manner. 
(f) The Secretary shall include in documents submitted to Congress by 
the Secretary in support of the Presidentï¿½s budget for each 
fiscal year- 
(1) detailed information on the budget for the Center; 
(2) the Secretaryï¿½s opinion as to whether the resources (including the 
number of employees) proposed in the budget for 
that fiscal year are adequate to enable the Center to comply 
with its statutory and regulatory duties; and 
(3) a report on the activities and significant accomplishments of the 
Center during the preceding fiscal year. 
(Added Pub. L. 103-446, title V, Sec. 509(a), Nov. 2, 1994, 108 Stat. 
4666; amended 
Pub. L. 104-275, title V, Sec. 501(a), (d), Oct. 9, 1996, 110 Stat. 
3340, 3341.) 

ï¿½ 319. Office of Employment Discrimination Complaint Adjudication 

(a)(1) There is in the Department an Office of Employment 
Discrimination Complaint Adjudication. There is at the head of the 
Office a Director. 


41 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 320 

(2) The Director shall be a career appointee in the Senior Executive 
Service. 
(3) The Director reports directly to the Secretary or the Deputy 
Secretary concerning matters within the responsibility of the Office. 
(b)(1) The Director is responsible for making the final agency 
decision within the Department on the merits of any employment 
discrimination complaint filed by an employee, or an applicant for 
employment, with the Department. The Director shall make such 
decisions in an impartial and objective manner. 

(2) No person may make any ex parte communication to the 
Director or to any employee of the Office with respect to a matter 
on which the Director has responsibility for making a final agency 
decision. 
(c) Whenever the Director has reason to believe that there has 
been retaliation against an employee by reason of the employee 
asserting rights under an equal employment opportunity law, the 
Director shall report the suspected retaliatory action directly to the 
Secretary or Deputy Secretary, who shall take appropriate action 
thereon. 
(d)(1) The Office shall employ a sufficient number of attorneys 
and other personnel as are necessary to carry out the functions of 
the Office. Attorneys shall be compensated at a level commensurate 
with attorneys employed by the Office of the General Counsel. 

(2) The Secretary shall ensure that the Director is furnished 
sufficient resources in addition to personnel under paragraph (1) to 
enable the Director to carry out the functions of the Office in a 
timely manner. 
(3) The Secretary shall ensure that any performance appraisal 
of the Director of the Office of Employment Discrimination Complaint 
Adjudication or of any employee of the Office does not take 
into consideration the record of the Director or employee in deciding 
cases for or against the Department. 
(Added Pub. L. 105-114, title I, Sec. 102(a)(1), Nov. 21, 1997, 111 
Stat. 2280.) 

ï¿½ 320. Department of Veterans Affairs-Department of Defense Joint 
Executive Committee 

(a) JOINT EXECUTIVE COMMITTEE.-(1) There is established an 
interagency committee to be known as the Department of Veterans 
Affairs-Department of Defense Joint Executive Committee (hereinafter 
in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). 
(2) The Committee is composed of- 
(A) the Deputy Secretary of Veterans Affairs and such 
other officers and employees of the Department of Veterans Affairs as 
the Secretary of Veterans Affairs may designate; and 
(B) the Under Secretary of Defense for Personnel and 
Readiness and such other officers and employees of the Department of 
Defense as the Secretary of Defense may designate. 
(b) ADMINISTRATIVE MATTERS.-(1) The Deputy Secretary of 
Veterans Affairs and the Under Secretary of Defense shall determine the 
size and structure of the Committee, as well as the administrative and 
procedural guidelines for the operation of the 
Committee. 

Sec. 321 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 42 

(2) The two Departments shall supply appropriate staff and resources to 
provide administrative support and services. Support for 
such purposes shall be provided at a level sufficient for the efficient 
operation of the Committee, including a subordinate Health Executive 
Committee, a subordinate Benefits Executive Committee, and 
such other committees or working groups as considered necessary 
by the Deputy Secretary and Under Secretary. 
(c) RECOMMENDATIONS.-(1) The Committee shall recommend 
to the Secretaries strategic direction for the joint coordination and 
sharing efforts between and within the two Departments under section 
8111 of this title and shall oversee implementation of those efforts. 
(2) The Committee shall submit to the two Secretaries and to 
Congress an annual report containing such recommendations as 
the Committee considers appropriate. 
(d) FUNCTIONS.-In order to enable the Committee to make 
recommendations in its annual report under subsection (c)(2), the 
Committee shall do the following: 
(1) Review existing policies, procedures, and practices relating to the 
coordination and sharing of resources between the 
two Departments. 
(2) Identify changes in policies, procedures, and practices 
that, in the judgment of the Committee, would promote mutually 
beneficial coordination, use, or exchange of use of services 
and resources of the two Departments, with the goal of improving the 
quality, efficiency and effectiveness of the delivery of 
benefits and services to veterans, service members, military retirees, 
and their families through an enhanced Department of 
Veterans Affairs and Department of Defense partnership. 
(3) Identify and assess further opportunities for the coordination and 
collaboration between the Departments that, in the 
judgment of the Committee, would not adversely affect the 
range of services, the quality of care, or the established priorities 
for benefits provided by either Department. 
(4) Review the plans of both Departments for the acquisition of 
additional resources, especially new facilities and major 
equipment and technology, in order to assess the potential effect of 
such plans on further opportunities for the coordination 
and sharing of resources. 
(5) Review the implementation of activities designed to 
promote the coordination and sharing of resources between the 
Departments. 
(Added Pub. L. 108-136, div. A, title V, Sec. 583(a)(1), Nov. 24, 2003, 
117 Stat. 1490.) 

ï¿½ 321. Office of Survivors Assistance 

(a) ESTABLISHMENT.-The Secretary shall establish in the Department an 
Office of Survivors Assistance (in this section referred 
to as the ï¿½ï¿½Officeï¿½ï¿½) to serve as a resource regarding all benefits and 
services furnished by the Department- 
(1) to survivors and dependents of deceased veterans; and 
(2) to survivors and dependents of deceased members of 
the Armed Forces. 

43 CH. 3-DEPARTMENT OF VETERANS AFFAIRS Sec. 322 

(b) ADVISORY DUTIES.-The Office shall serve as a primary advisor to the 
Secretary on all matters related to the policies, programs, legislative 
issues, and other initiatives affecting the survivors and dependents 
described in subsection (a). 
(c) GUIDANCE FROM STAKEHOLDERS.-In establishing the Office, the Secretary 
shall seek guidance from interested stakeholders. 
(d) RESOURCES.-The Secretary shall ensure that appropriate 
personnel, funding, and other resources are provided to the Office 
to carry out its responsibilities. 
(e) INCLUSION OF INFORMATION ON OFFICE IN ANNUAL REPORT 
ON DEPARTMENT ACTIVITIES.-The Secretary shall include in each 
annual Performance and Accountability report submitted by the 
Secretary to Congress a description of the activities of the Office 
during the fiscal year covered by such report. 
(Added Pub. L. 110-389, title II, Sec. 222(a), Oct. 10, 2008, 122 Stat. 
4156.) 

ï¿½ 322. Office of National Veterans Sports Programs and Special Events 

(a) ESTABLISHMENT.-There is in the Department an Office of 
National Veterans Sports Programs and Special Events. There is at 
the head of the Office a Director, who shall report to an appropriate 
official of the Veterans Benefits Administration, as determined by the 
Secretary, or to the Deputy Secretary or Secretary. 
(b) RESPONSIBILITIES OF DIRECTOR.-Subject to the direction of 
the Secretary, the Director- 
(1) shall establish and carry out qualifying programs and 
events; 
(2) may provide for sponsorship by the Department of 
qualifying programs and events; 
(3) may provide for, facilitate, and encourage participation 
by disabled veterans in qualifying programs and events; 
(4) shall, to the extent feasible, cooperate with the United 
States Paralympics, Inc., and its partners to promote the participation 
of disabled veterans and disabled members of the 
Armed Forces in sporting events sponsored by the United 
States Paralympics, Inc., and its partners; 
(5) shall seek sponsorships and donations from the private 
sector to defray costs of carrying out the responsibilities of the 
Director to the maximum extent feasible; and 
(6) may carry out such other responsibilities as the Secretary 
determines are appropriate. 
(c) QUALIFYING PROGRAM OR EVENT.-For purposes of this section, a qualifying 
program or event is a sports program or other 
event in which disabled veterans and disabled members of the 
Armed Forces participate and that is approved by the Secretary as 
being consistent with the goals and missions of the Department. 
(d) MONTHLY ASSISTANCE ALLOWANCE.-(1) Subject to the 
availability of appropriations for such purpose, the Secretary may 
provide a monthly assistance allowance to a veteran with a disability 
invited by the United States Paralympics, Inc., to compete 
for a slot on, or selected for, the Paralympic Team for any month 
in which the veteran is training or competing in any event sanc

Sec. 322 CH. 3-DEPARTMENT OF VETERANS AFFAIRS 44 

tioned by the United States Paralympics, Inc., or who is residing 
at a United States Paralympics, Inc., training center. 

(2) The amount of the monthly assistance payable to a veteran 
under paragraph (1) shall be equal to the monthly amount of subsistence 
allowance that would be payable to the veteran under 
chapter 31 of this title if the veteran were eligible for and entitled 
to rehabilitation under such chapter. 
(3) In providing assistance under this subsection, the Secretary 
shall give priority to veterans with service-connected disabilities. 
(4) There is authorized to be appropriated to carry out this 
subsection $2,000,000 for each of fiscal years 2010 through 2013. 
(e) LIMITATION ON STATUTORY CONSTRUCTION.-Nothing in this 
section shall be construed as a limitation on disabled sports and 
special events supported by the Department as of the date of the 
enactment of this section. 
(Added Pub. L. 110-389, title VII, Sec. 703(a), Oct. 10, 2008, 122 Stat. 
4183.) 


CHAPTER 5 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


45 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART I-GENERAL PROVISIONSï¿½


CHAPTER 5-AUTHORITY AND DUTIES OF THE 
SECRETARY


SUBCHAPTER I-GENERAL AUTHORITIES 

Sec. 

501. Rules and regulations. 
502. Judicial review of rules and regulations. 
503. Administrative error; equitable relief. 
505. Opinions of Attorney General. 
510. Authority to reorganize offices. 
511. Decisions of the Secretary; finality.
512. Delegation of authority; assignment of functions and duties. 
513. Contracts and personal services. 
515. Administrative settlement of tort claims. 
516. Equal employment responsibilities. 
SUBCHAPTER II-SPECIFIED FUNCTIONS 

521. Assistance to certain rehabilitation activities. 
521A. Assistance for United States Paralympics, Inc. 
522. Studies of rehabilitation of disabled persons. 
523. Coordination and promotion of other programs affecting veterans 
and their 
dependents. 
525. Publication of laws relating to veterans. 
527. Evaluation and data collection. 
529. Annual report to Congress. 
530. Annual report on program and expenditures for domestic response 
to weapons of mass destruction. 
531. Requirement relating to naming of Department property. 
532. Authority to advertise in national media. 
SUBCHAPTER III-ADVISORY COMMITTEES 

541. Advisory Committee on Former Prisoners of War. 
542. Advisory Committee on Women Veterans. 
543. Advisory Committee on Prosthetics and Special-Disabilities 
Programs. 
544. Advisory Committee on Minority Veterans. 
545. Advisory Committee on the Readjustment of Veterans. 
546. Advisory Committee on Disability Compensation. 
SUBCHAPTER I-GENERAL AUTHORITIES 

ï¿½ 501. Rules and regulations 

(a) The Secretary has authority to prescribe all rules and regulations 
which are necessary or appropriate to carry out the laws 
administered by the Department and are consistent with those 
laws, including- 
(1) regulations with respect to the nature and extent of 
proof and evidence and the method of taking and furnishing 
them in order to establish the right to benefits under such 
laws; 
(2) the forms of application by claimants under such laws; 
47 


Sec. 502 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 48 

(3) the methods of making investigations and medical examinations; and 
(4) the manner and form of adjudications and awards. 
(b) Any rule, regulation, guideline, or other published interpretation 
or order (and any amendment thereto) issued pursuant to 
the authority granted by this section or any other provision of this 
title shall contain citations to the particular section or sections of 
statutory law or other legal authority upon which such issuance is 
based. The citation to the authority shall appear immediately following 
each substantive provision of the issuance. 
(c) In applying section 552(a)(1) of title 5 to the Department, 
the Secretary shall ensure that subparagraphs (C), (D), and (E) of 
that section are complied with, particularly with respect to opinions 
and interpretations of the General Counsel. 
(d) The provisions of section 553 of title 5 shall apply, without 
regard to subsection (a)(2) of that section, to matters relating to 
loans, grants, or benefits under a law administered by the Secretary. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 386.) 

ï¿½ 502. Judicial review of rules and regulations 

An action of the Secretary to which section 552(a)(1) or 553 of 
title 5 (or both) refers is subject to judicial review. Such review 
shall be in accordance with chapter 7 of title 5 and may be sought 
only in the United States Court of Appeals for the Federal Circuit. 
However, if such review is sought in connection with an appeal 
brought under the provisions of chapter 72 of this title, the 
provisions of that chapter shall apply rather than the provisions of 
chapter 7 of title 5. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 386; amended 
Pub. L. 110- 
389, title I, Sec. 102, Oct. 10, 2008, 122 Stat. 4148.) 

ï¿½ 503. Administrative error; equitable relief 

(a) If the Secretary determines that benefits administered by 
the Department have not been provided by reason of administrative error 
on the part of the Federal Government or any of its employees, the 
Secretary may provide such relief on account of such 
error as the Secretary determines equitable, including the payment 
of moneys to any person whom the Secretary determines is equitably 
entitled to such moneys. 
(b) If the Secretary determines that a veteran, surviving 
spouse, child of a veteran, or other person has suffered loss as a 
consequence of reliance upon a determination by the Department 
of eligibility or entitlement to benefits, without knowledge that it 
was erroneously made, the Secretary may provide such relief on account 
of such error as the Secretary determines is equitable, including the 
payment of moneys to any person whom the Secretary 
determines is equitably entitled to such moneys. 
(c) Not later than April 1 of each year, the Secretary shall submit to 
Congress a report containing a statement as to the disposition of each 
case recommended to the Secretary for equitable relief 
under this section during the preceding calendar year. No report 
shall be required under this subsection after December 31, 2009. 

49 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 510 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 386; amended 
Pub. L. 106- 
419, title IV, Sec. 403(c)(1), Nov. 1, 2000, 114 Stat. 1864; Pub. L. 
109-233, title IV, 
Sec. 403, June 15, 2006, 120 Stat. 411.) 

ï¿½ 505. Opinions of Attorney General 

The Secretary may require the opinion of the Attorney General 
on any question of law arising in the administration of the Department. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 387.) 

ï¿½ 510. Authority to reorganize offices 

(a) Except to the extent inconsistent with law, the Secretary 
may- 
(1) consolidate, eliminate, abolish, or redistribute the functions of 
the Administrations, offices, facilities, or activities in 
the Department; 
(2) create new Administrations, offices, facilities, or activities in 
the Department; and 
(3) fix the functions of any such Administration, office, facility, or 
activity and the duties and powers of their respective 
executive heads. 
(b) The Secretary may not in any fiscal year implement an
administrative reorganization described in subsection (c) unless the 
Secretary first submits to the appropriate committees of the Congress a 
report containing a detailed plan and justification for the 
administrative reorganization. No action to carry out such 
reorganization may be taken after the submission of such report until 
the end of a 45-day period following the date of the submission of the 
report, not less than 30 days of which shall be days during which 
Congress shall have been in continuous session. For purposes of 
the preceding sentence, continuity of a session of Congress is broken 
only by adjournment sine die, and there shall be excluded from 
the computation of any period of continuity of session any day during 
which either House of Congress is not in session during an adjournment 
of more than three days to a day certain. 
(c) An administrative reorganization described in this subsection is 
an administrative reorganization of a covered field office 
or facility that involves a reduction during any fiscal year in the 
number of full-time equivalent employees with permanent duty stations 
at such office or facility- 
(1) by 15 percent or more; or 
(2) by a percent which, when added to the percent reduction made in 
the number of such employees with permanent 
duty stations at such office or facility during the preceding fiscal 
year, is 25 percent or more. 
(d)(1) Not less than 30 days before the date on which the im
plementation of any administrative reorganization described in 
paragraph (2) of a unit in the Central Office is to begin, the 
Secretary shall transmit to the Committees on Veteransï¿½ Affairs of the 
Senate and the House of Representatives a notification regarding 
the reorganization. 

(2) Paragraph (1) applies to an administrative reorganization 
of any unit of the Central Office that is the duty station for 30 or 
more employees if the reorganization involves a reduction in any 

Sec. 511 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 50 

fiscal year in the number of full-time equivalent employees with 
permanent duty station in such unit by 50 percent or more. 

(e) For purposes of this section, the term ï¿½ï¿½administrative 
reorganizationï¿½ï¿½ does not include a consolidation or redistribution of 
functions at a covered field office or facility, or between components 
of the Veterans Benefits Administration and the Veterans Health 
Administration at a Department medical and regional office center, 
if after the consolidation or redistribution the same number of full-
time equivalent employees continues to perform the affected functions 
at that field office, facility, or center. 
(f) For purposes of this section: 
(1) The term ï¿½ï¿½covered field office or facilityï¿½ï¿½ means a Department 
office or facility outside the Central Office that is the 
permanent duty station for 25 or more employees or that is a 
free-standing outpatient clinic. 
(2) The term ï¿½ï¿½detailed plan and justificationï¿½ï¿½ means, with 
respect to an administrative reorganization, a written report 
that, at a minimum, includes the following: 
(A) Specification of the number of employees by which 
each covered office or facility affected is to be reduced, the 
responsibilities of those employees, and the means by 
which the reduction is to be accomplished. 
(B) Identification of any existing or planned office or 
facility at which the number of employees is to be increased and 
specification of the number and responsibilities of the additional 
employees at each such office or facility. 
(C) A description of the changes in the functions carried out at any 
existing office or facility and the functions 
to be assigned to an office or facility not in existence on 
the date that the plan and justification are submitted pursuant to 
subsection (b). 
(D) An explanation of the reasons for the determination that the 
reorganization is appropriate and advisable 
in terms of the statutory missions and long-term goals of 
the Department. 
(E) A description of the effects that the reorganization 
may have on the provision of benefits and services to veterans and 
dependents of veterans (including the provision 
of benefits and services through offices and facilities of the 
Department not directly affected by the reorganization). 
(F) Estimates of the costs of the reorganization and of 
the cost impact of the reorganization, together with analyses 
supporting those estimates. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 387; 
amended Pub. L. 104- 
262, title III, Sec. 304, Oct. 9, 1996, 110 Stat. 3194.) 

ï¿½ 511. Decisions of the Secretary; finality 

(a) The Secretary shall decide all questions of law and fact necessary 
to a decision by the Secretary under a law that affects the 
provision of benefits by the Secretary to veterans or the dependents 
or survivors of veterans. Subject to subsection (b), the decision of 
the Secretary as to any such question shall be final and conclusive 

51 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 515 

and may not be reviewed by any other official or by any court, 
whether by an action in the nature of mandamus or otherwise. 

(b) The second sentence of subsection (a) does not apply to- 
(1) matters subject to section 502 of this title; 
(2) matters covered by sections 1975 and 1984 of this title; 
(3) matters arising under chapter 37 of this title; and 
(4) matters covered by chapter 72 of this title. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 388.) 
ï¿½ 512. Delegation of authority; assignment of functions and 
duties 

(a) Except as otherwise provided by law, the Secretary may assign 
functions and duties, and delegate, or authorize successive re-
delegation of, authority to act and to render decisions, with respect 
to all laws administered by the Department, to such officers and 
employees as the Secretary may find necessary. Within the limitations 
of such delegations, redelegations, or assignments, all official 
acts and decisions of such officers and employees shall have the 
same force and effect as though performed or rendered by the Secretary. 
(b) There shall be included on the technical and administrative 
staff of the Secretary such staff officers, experts, inspectors, and 
assistants (including legal assistants) as the Secretary may prescribe. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 389.) 

ï¿½ 513. Contracts and personal services 

The Secretary may, for purposes of all laws administered by 
the Department, accept uncompensated services, and enter into 
contracts or agreements with private or public agencies or persons 
(including contracts for services of translators without regard to 
any other law), for such necessary services (including personal 
services) as the Secretary may consider practicable. The Secretary 
may also enter into contracts or agreements with private concerns 
or public agencies for the hiring of passenger motor vehicles or 
aircraft for official travel whenever, in the Secretaryï¿½s judgment, such 
arrangements are in the interest of efficiency or economy. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 389.) 

ï¿½ 515. Administrative settlement of tort claims 

(a)(1) Notwithstanding the limitations contained in section 
2672 of title 28, the Secretary may settle a claim for money damages 
against the United States cognizable under section 1346(b) or 
2672 of title 28 or section 7316 of this title to the extent the 
authority to do so is delegated to the Secretary by the Attorney 
General. Such delegation may not exceed the authority delegated by 
the Attorney General to United States attorneys to settle claims for 
money damages against the United States. 

(2) For purposes of this subsection, the term ï¿½ï¿½settleï¿½ï¿½, with respect 
to a claim, means consider, ascertain, adjust, determine, and 
dispose of the claim, whether by full or partial allowance or by 
disallowance. 
(b) The Secretary may pay tort claims, in the manner authorized in the 
first paragraph of section 2672 of title 28, when such 

Sec. 516 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 52 

claims arise in foreign countries in connection with Department 
operations abroad. A claim may not be allowed under this subsection 
unless it is presented in writing to the Secretary within two years 
after the claim accrues. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 389.) 

ï¿½ 516. Equal employment responsibilities 

(a) The Secretary shall provide that the employment discrimination 
complaint resolution system within the Department be established and 
administered so as to encourage timely and fair resolution of concerns 
and complaints. The Secretary shall take steps 
to ensure that the system is administered in an objective, fair, and 
effective manner and in a manner that is perceived by employees 
and other interested parties as being objective, fair, and effective. 
(b) The Secretary shall provide- 
(1) that employees responsible for counseling functions associated with 
employment discrimination and for receiving, investigating, and 
processing complaints of employment discrimination shall be supervised 
in those functions by, and report to, 
an Assistant Secretary or a Deputy Assistant Secretary for 
complaint resolution management; and 
(2) that employees performing employment discrimination 
complaint resolution functions at a facility of the Department 
shall not be subject to the authority, direction, and control of 
the Director of the facility with respect to those functions. 
(c) The Secretary shall ensure that all employees of the Department 
receive adequate education and training for the purposes 
of this section and section 319 of this title. 
(d) The Secretary shall, when appropriate, impose disciplinary 
measures, as authorized by law, in the case of employees of the 
Department who engage in unlawful employment discrimination, including 
retaliation against an employee asserting rights under an 
equal employment opportunity law. 
(e)(1)(A) Not later than 45 days after the end of each calendar 
quarter, the Assistant Secretary for Human Resources and Administration 
shall submit to the Committees on Veteransï¿½ Affairs of the 
Senate and House of Representatives a report summarizing the 
employment discrimination complaints filed against the individuals 
referred to in paragraph (2) during such quarter. 

(B) Subparagraph (A) shall apply in the case of complaints 
filed against individuals on the basis of such individualsï¿½ personal 
conduct and shall not apply in the case of complaints filed solely 
on the basis of such individualsï¿½ positions as officials of the 
Department. 
(2) Paragraph (1) applies to the following officers and employees of 
the Department: 
(A) The Secretary. 
(B) The Deputy Secretary of Veterans Affairs. 
(C) The Under Secretary for Health and the Under Secretary for 
Benefits. 
(D) Each Assistant Secretary of Veterans Affairs and each 
Deputy Assistant Secretary of Veterans Affairs. 
(E) The Under Secretary of Veterans Affairs for Memorial 
Affairs. 

53 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 521 

(F) The General Counsel of the Department. 
(G) The Chairman of the Board of Veteransï¿½ Appeals. 
(H) The Chairman of the Board of Contract Appeals of the 
Department. 
(I) The director and the chief of staff of each medical center of the 
Department. 
(J) The director of each Veterans Integrated Services Network. 
(K) The director of each regional office of the Department. 
(L) Each program director of the Central Office of the Department. 
(3) Each report under this subsection- 
(A) may not disclose information which identifies the individuals 
filing, or the individuals who are the subject of, the 
complaints concerned or the facilities at which the discrimination 
identified in such complaints is alleged to have occurred; 
(B) shall summarize such complaints by type and by equal 
employment opportunity field office area in which filed; and 
(C) shall include copies of such complaints, with the information 
described in subparagraph (A) redacted. 
(4) Not later than April 1 each year, the Assistant Secretary 
shall submit to the committees referred to in paragraph (1)(A) a report 
on the complaints covered by paragraph (1) during the preceding year, 
including the number of such complaints filed during 
that year and the status and resolution of the investigation of such 
complaints. 
(f) The Secretary shall ensure that an employee of the Department who 
seeks counseling relating to employment discrimination 
may elect to receive such counseling from an employee of the Department 
who carries out equal employment opportunity counseling functions on a 
full-time basis rather than from an employee 
of the Department who carries out such functions on a part-time 
basis. 
(g) The number of employees of the Department whose duties 
include equal employment opportunity counseling functions as well 
as other, unrelated functions may not exceed 40 full-time equivalent 
employees. Any such employee may be assigned equal employment 
opportunity counseling functions only at Department facilities in 
remote geographic locations (as determined by the Secretary). The 
Secretary may waive the limitation in the preceding 
sentence in specific cases. 
(h) The provisions of this section shall be implemented in a 
manner consistent with procedures applicable under regulations 
prescribed by the Equal Employment Opportunity Commission. 
(Added Pub. L. 105-114, title I, Sec. 101(a)(1), Nov. 21, 1997, 111 
Stat. 2278; amended Pub. L. 105-368, title IV, Sec. 403(d)(2), 
Nov. 11, 1998, 112 Stat. 3339; Pub. L. 108-170, title IV, Sec. 
405(a), Dec. 6, 2003, 117 Stat. 2063.) 

SUBCHAPTER II-SPECIFIED FUNCTIONS 

ï¿½ 521. Assistance to certain rehabilitation activities 

(a) The Secretary may assist any organization named in or approved 
under section 5902 of this title in providing recreational ac

Sec. 521A CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 

tivities which would further the rehabilitation of disabled 
veterans. 
Such assistance may be provided only if- 

(1) the activities are available to disabled veterans on a 
national basis; and 
(2) a significant percentage of the individuals participating 
in the activities are eligible for rehabilitative services under 
chapter 17 of this title. 
(b) The Secretary may accept from any appropriate source contributions 
of funds and of other assistance to support the Secretaryï¿½s provision 
of assistance for such activities. 
(c)(1) Subject to paragraph (2), the Secretary may authorize the 
use, for purposes approved by the Secretary in connection with the 
activity involved, of the seal and other official symbols of the 
Department and the name ï¿½ï¿½Department of Veterans Affairsï¿½ï¿½ by- 

(A) any organization which provides an activity described 
in subsection (a) with assistance from the Secretary; and 
(B) any individual or entity from which the Secretary accepts a 
significant contribution under subsection (b) or an offer 
of such a contribution. 
(2) The use of such seal or name of any official symbol of the 
Department in an advertisement may be authorized by the Secretary 
under this subsection only if- 
(A) the Secretary has approved the advertisement; and 
(B) the advertisement contains a clear statement that no 
product, project, or commercial line of endeavor referred to in 
the advertisement is endorsed by the Department of Veterans 
Affairs. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 390.) 

ï¿½ 521A. Assistance for United States Paralympics, Inc 

(a) AUTHORIZATION TO PROVIDE ASSISTANCE.-The Secretary 
may award grants to the United States Paralympics, Inc., to plan, 
develop, manage, and implement an integrated adaptive sports program 
for disabled veterans and disabled members of the Armed 
Forces. 
(b) OVERSIGHT BY SECRETARY.-As a condition of receiving a 
grant under this section, the United States Paralympics, Inc., shall 
permit the Secretary to conduct such oversight of the use of grant 
funds as the Secretary determines is appropriate. The United 
States Paralympics, Inc., shall be responsible for the use of grant 
funds provided under this section. 
(c) APPLICATION REQUIREMENT.-(1) Before the Secretary may 
award a grant to the United States Paralympics, Inc., under this 
section, the United States Paralympics, Inc., shall submit to the 
Secretary an application that describes the activities to be carried 
out with the grant, including information on specific measurable 
goals and objectives to be achieved using grant funds. 
(2) The application shall include- 
(A) a detailed description of all partnerships referred to in 
paragraph (3) at the national and local levels that will be 
participating in such activities and the amount of grant funds that 
the United States Paralympics, Inc., proposes to make available for 
each of such partnerships; and 

CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 521A 

(B) for any fiscal year for which a grant is sought, the 
amount of private donations received by the United States 
Paralympics, Inc., expected to be expended to support operations during 
that fiscal year. 
(3) Partnerships referred to in this paragraph are agreements 
between the United States Paralympics, Inc., and organizations 
with significant experience in the training and support of disabled 
athletes and the promotion of disabled sports at the local and national 
levels. Such organizations may include Disabled Sports USA, 
Blaze Sports, Paralyzed Veterans of America, and Disabled American 
Veterans. The agreements shall detail the scope of activities 
and funding to be provided by the United States Paralympics, Inc., 
to the partner. 
(d) USE OF FUNDS.-(1) The United States Paralympics, Inc., 
with the assistance and cooperation of the Secretary and the heads 
of other appropriate Federal and State departments and agencies 
and partnerships referred to in subsection (c)(3), shall use a grant 
under this section to reimburse grantees with which the United 
States Paralympics, Inc., has entered into a partnership under 
subsection (c) for the direct costs of recruiting, supporting,
equipping, 
encouraging, scheduling, facilitating, supervising, and implementing 
the participation of disabled veterans and disabled members of the 
Armed Forces in the activities described in paragraph 
(3) by supporting a program described in paragraph (2). 
(2) A program described in this paragraph is a sports program 
that- 
(A) promotes basic physical activity, games, recreation, 
training, and competition; 
(B) is approved by the Secretary; and 
(C)(i) provides services and activities described in paragraph (3) for 
disabled veterans and disabled members of the 
Armed Forces; and 

(ii) may also provide services and activities described in 
paragraph (3) for individuals with disabilities who are not veterans or 
members of the Armed Forces, or both; except that 
funds made available to carry out this section may not be used 
to support those individuals with disabilities who are not veterans or 
members of the Armed Forces. 
(3) Activities described in this paragraph are- 
(A) instruction, participation, and competition in 
Paralympic sports; 
(B) training and technical assistance to program administrators, 
coaches, recreational therapists, instructors, Department employees, 
and other appropriate individuals; and 
(C) coordination, Paralympic classification of athletes, athlete 
assessment, sport-specific training techniques, program development 
(including programs at the local level), sports equipment, supplies, 
program evaluation, and other activities related to the implementation 
and operation of the program. 
(4) A grant made under this section may include, at the discretion of 
the Secretary, an amount for the administrative expenses 
of the United States Paralympics, Inc., but not to exceed five percent 
of the amount of the grant. 

Sec. 521A CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 

(5) Funds made available by the United States Paralympics, 
Inc., to a grantee under subsection (c) may include an amount for 
administrative expenses, but not to exceed ten percent of the 
amount of such funds. 
(e) OUTREACH REQUIREMENT.-As a condition of receiving a 
grant under this section, the United States Paralympics, Inc., shall 
agree to conduct a joint outreach campaign with the Secretary of 
Veterans Affairs to inform all eligible veterans and separating 
members of the Armed Forces with physical disabilities about the 
existence of the integrated adaptive sports program, as appropriate, 
and shall provide for, facilitate, and encourage participation 
of such veterans and separating members of the Armed Forces in 
programs under this section to the extent possible. 
(f) COORDINATION.-The Secretary shall ensure access to and 
use of appropriate Department sports, recreation, and fitness 
facilities by disabled veterans and disabled members of the Armed 
Forces participating in the integrated adaptive sports program to 
the maximum extent possible. The Secretary shall ensure that such 
access does not adversely affect any other assistance provided to 
veterans. 
(g) AUTHORIZATION OF APPROPRIATIONS.-There is authorized 
to be appropriated $8,000,000 for each of fiscal years 2010 through 
2013 to carry out this section. Amounts appropriated pursuant to 
this subsection shall remain available without fiscal year limitation. 
(h) SEPARATE ACCOUNTING.-The Department shall have a separate line 
item in budget proposals of the Department for funds to 
be appropriated to carry out this section. Funds appropriated to 
carry out this section shall not be commingled with any other funds 
appropriated to the Department. 
(i) LIMITATION ON USE OF FUNDS.-Except as provided in paragraphs (4) 
and (5) of subsection (d), funds appropriated to carry out 
this section may not be used to support or provide services to 
individuals who are not disabled veterans or disabled members of the 
Armed Forces. 
(j) ANNUAL REPORT TO SECRETARY.-(1) As a condition of receiving a 
grant under this section, the United States Paralympics, 
Inc., shall agree that by not later than 60 days after the last day 
of a fiscal year for which a grant is provided under this section, the 
United States Paralympics, Inc., shall submit to the Secretary a 
report setting forth in detail the use of the grant funds during that 
fiscal year, including the number of veterans who participated in 
the integrated adaptive sports program, including any programs 
carried out through a partnership under subsection (c)(3), and the 
administrative expenses of the integrated adaptive sports program. 
(2) A report under this subsection may be audited by the Secretary. 
(3) For any fiscal year after fiscal year 2010, the eligibility of 
the United States Paralympics, Inc., to receive a grant under this 
section shall be contingent upon the submission of the report under 
paragraph (1) for the preceding fiscal year. 
(k) ANNUAL REPORT TO CONGRESS.-For any fiscal year during 
which the Secretary provides assistance under this section, the Sec

57 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 525 

retary shall submit to Congress a report on the use of funds provided 
under this section. 

(l) TERMINATION.-The Secretary may only provide assistance 
under this section during fiscal years 2010 through 2013. 
(Added Pub. L. 110-389, title VII, Sec. 702(a), Oct. 10, 2008, 122 
Stat. 4181.) 

ï¿½ 522. Studies of rehabilitation of disabled persons 

(a) The Secretary may conduct studies and investigations, and 
prepare reports, relative to the rehabilitation of disabled persons, 
the relative abilities, aptitudes, and capacities of the several groups 
of the variously handicapped, and how their potentialities can best 
be developed and their services best used in gainful and suitable 
employment including the rehabilitation programs of foreign nations. 
(b) In carrying out this section, the Secretary (1) may cooperate 
with such public and private agencies as the Secretary considers 
advisable; and (2) may employ consultants who shall receive a 
reasonable per diem, as prescribed by the Secretary, for each day 
actually employed, plus necessary travel and other expenses. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 390.) 

ï¿½ 523. Coordination and promotion of other programs affecting veterans 
and their dependents 

(a) The Secretary shall seek to achieve (1) the maximum feasible 
effectiveness, coordination, and interrelationship of services 
among all programs and activities affecting veterans and their 
dependents carried out by and under all other departments, agencies, 
and instrumentalities of the executive branch, and (2) the maximum 
feasible coordination of such programs with programs carried 
out under this title. The Secretary shall actively promote the effective 
implementation, enforcement, and application of all provisions 
of law and regulations providing for special consideration, emphasis, 
or preference for veterans. 
(b) The Secretary shall seek to achieve the effective coordination of 
the provision, under laws administered by the Department, 
of benefits and services (and information about such benefits and 
services) with appropriate programs (and information about such 
programs) conducted by State and local governmental agencies and 
by private entities at the State and local level. In carrying out this 
subsection, the Secretary shall place special emphasis on veterans 
who are 65 years of age or older. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 390.) 

ï¿½ 525. Publication of laws relating to veterans 

(a) The Secretary may compile and publish all Federal laws relating to 
veteransï¿½ relief, including laws administered by the Department as well 
as by other agencies of the Government. Such 
compilation and publication shall be in such form as the Secretary 
considers advisable for the purpose of making currently available 
in convenient form for the use of the Department and full-time 
representatives of the several service organizations an annotated, 
indexed, and cross-referenced statement of the laws providing veteransï¿½ 
relief. 

Sec. 527 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 58 

(b) The Secretary may maintain such compilation on a current 
basis either by the publication, from time to time, of supplementary 
documents or by complete revision of the compilation. 
(c) The distribution of the compilation to the representatives of 
the several service organizations shall be as determined by the 
Secretary. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 391.) 

ï¿½ 527. Evaluation and data collection 

(a) The Secretary, pursuant to general standards which the 
Secretary shall prescribe in regulations, shall measure and evaluate on 
a continuing basis the effect of all programs authorized 
under this title, in order to determine their effectiveness in 
achieving stated goals in general, and in achieving such goals in 
relation 
to their cost, their effect on related programs, and their structure 
and mechanisms for delivery of services. Such information as the 
Secretary may consider necessary for purposes of such evaluations 
shall be made available to the Secretary, upon request, by all 
departments, agencies, and instrumentalities of the executive branch. 
(b) In carrying out this section, the Secretary shall collect, collate, 
and analyze on a continuing basis full statistical data regarding 
participation (including the duration thereof), provision of services, 
categories of beneficiaries, planning and construction of facilities, 
acquisition of real property, proposed excessing of land, accretion and 
attrition of personnel, and categorized expenditures attributable 
thereto, under all programs carried out under this title. 
(c) The Secretary shall make available to the public, and on a 
regular basis provide to the appropriate committees of the Congress, 
copies of all completed evaluative research studies and summaries of 
evaluations of program impact and effectiveness carried 
out, and tabulations and analyses of all data collected, under this 
section. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 391.) 

ï¿½ 529. Annual report to Congress 

The Secretary shall submit annually, at the close of each fiscal 
year, a report in writing to Congress. Each such report shall- 

(1) give an account of all moneys received and disbursed 
by the Department for such fiscal year; 
(2) describe the work done during such fiscal year; and 
(3) state the activities of the Department for such fiscal 
year. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 391.) 

ï¿½ 530. Annual report on program and expenditures for domestic response 
to weapons of mass destruction 

(a) The Secretary shall submit to the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives an annual report, to 
be submitted each year at the time that the President submits the 
budget for the next fiscal year under section 1105 of title 
31, on the activities of the Department relating to preparation for, 
and participation in, a domestic medical response to an attack 
involving weapons of mass destruction. 

59 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 532 

(b) Each report under subsection (a) shall include the following: 
(1) A statement of the amounts of funds and the level of 
personnel resources (stated in terms of full-time equivalent 
employees) expected to be used by the Department during the 
next fiscal year in preparation for a domestic medical response 
to an attack involving weapons of mass destruction, including 
the anticipated source of those funds and any anticipated 
shortfalls in funds or personnel resources to achieve the tasks 
assigned the Department by the President in connection with 
preparation for such a response. 
(2) A detailed statement of the funds expended and personnel 
resources (stated in terms of full-time equivalent employees) used 
during the fiscal year preceding the fiscal year 
during which the report is submitted in preparation for a domestic 
medical response to an attack involving weapons of 
mass destruction or in response to such an attack, including 
identification of the source of those funds and a description of 
how those funds were expended. 
(3) A detailed statement of the funds expended and expected to be 
expended, and the personnel resources (stated in 
terms of full-time equivalent employees) used and expected to 
be used, during the fiscal year during which the report is submitted 
in preparation for a domestic medical response to an attack involving
weapons of mass destruction or in response to 
such an attack, including identification of the source of funds 
expended and a description of how those funds were expended. 
(c) This section shall expire on January 1, 2009. 
(Added Pub. L. 105-368, title IX, Sec. 906(a), Nov. 11, 1998, 112 
Stat. 3361.) 
ï¿½ 531. Requirement relating to naming of Department property 

Except as expressly provided by law, a facility, structure, or 
real property of the Department, and a major portion (such as a 
wing or floor) of any such facility, structure, or real property, 
may 
be named only for the geographic area in which the facility, structure, 
or real property is located. 

(Added Pub. L. 105-368, title X, Sec. 1001(a)(1), Nov. 11, 1998, 112 
Stat. 3363.) 

ï¿½ 532. Authority to advertise in national media 

The Secretary may purchase advertising in national media outlets for 
the purpose of promoting awareness of benefits under laws 
administered by the Secretary, including promoting awareness of 
assistance provided by the Secretary, including assistance for programs 
to assist homeless veterans, to promote veteran-owned small 
businesses, and to provide opportunities for employment in the 
Department of Veterans Affairs and for education, training, 
compensation, pension, vocational rehabilitation, and healthcare 
benefits, and mental healthcare (including the prevention of suicide 
among veterans). 

(Added Pub. L. 110-389, title VIII, Sec. 809(a), Oct. 10, 2008, 122 
Stat. 4189.) 


Sec. 541 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 60 

SUBCHAPTER III-ADVISORY COMMITTEES 

ï¿½ 541. Advisory Committee on Former Prisoners of War 

(a)(1) The Secretary shall establish an advisory committee to 
be known as the Advisory Committee on Former Prisoners of War 
(hereinafter in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). 

(2)(A) The members of the Committee shall be appointed by 
the Secretary from the general public and shall include- 

(i) appropriate representatives of veterans who are former 
prisoners of war; 
(ii) individuals who are recognized authorities in fields pertinent to 
disabilities prevalent among former prisoners of war, 
including authorities in epidemiology, mental health, nutrition, 
geriatrics, and internal medicine; and 
(iii) appropriate representatives of disabled veterans. 
(B) The Committee shall also include, as ex officio members, 
the Under Secretary for Health and the Under Secretary for Benefits, or 
their designees. 
(3) The Secretary shall determine the number, terms of service, 
and pay and allowances of members of the Committee appointed by 
the Secretary, except that the term of service of any such member 
may not exceed three years. 
(b) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee with respect to the administration of 
benefits under this title for veterans who are former prisoners of war 
and the needs of such veterans with respect to compensation, health 
care, and rehabilitation. 
(c)(1) Not later than July 1 of each odd-numbered year through 
2009, the Committee shall submit to the Secretary a report on the 
programs and activities of the Department that pertain to veterans 
who are former prisoners of war. Each such report shall include- 

(A) an assessment of the needs of such veterans with respect to 
compensation, health care, and rehabilitation; 
(B) a review of the programs and activities of the Department designed 
to meet such needs; and 
(C) such recommendations (including recommendations for 
administrative and legislative action) as the Committee considers to 
be appropriate. 
(2) The Secretary shall, within 60 days after receiving each report 
under paragraph (1), submit to the Congress a copy of the report, 
together with any comments concerning the report that the 
Secretary considers appropriate. 
(3) The Committee may also submit to the Secretary such 
other reports and recommendations as the Committee considers
appropriate. 
(4) The Secretary shall submit with each annual report submitted to the 
Congress pursuant to section 529 of this title a summary of all reports 
and recommendations of the Committee submitted to the Secretary since 
the previous annual report of the Secretary submitted to the Congress 
pursuant to that section. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 392; amended 
Pub. L. 102- 405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 106-419, title IV, 
Sec. 403(c)(2), Nov. 1, 2000, 114 Stat. 1864; Pub. L. 108-454, title 
VIII, Sec. 803, 
Dec. 10, 2004, 118 Stat. 3626.) 


61 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 542 

ï¿½ 542. Advisory Committee on Women Veterans 

(a)(1) The Secretary shall establish an advisory committee to 
be known as the Advisory Committee on Women Veterans (hereinafter in 
this section referred to as ï¿½ï¿½the Committeeï¿½ï¿½). 

(2)(A) The Committee shall consist of members appointed by 
the Secretary from the general public, including- 

(i) representatives of women veterans; 
(ii) individuals who are recognized authorities in fields pertinent to 
the needs of women veterans, including the gender-
specific health-care needs of women; and 
(iii) representatives of both female and male veterans with 
service-connected disabilities, including at least one female veteran 
with a service-connected disability and at least one male 
veteran with a service-connected disability. 
(B) The Committee shall include, as ex officio members- 
(i) the Secretary of Labor (or a representative of the Secretary of 
Labor designated by the Secretary after consultation 
with the Assistant Secretary of Labor for Veteransï¿½ Employment); 
(ii) the Secretary of Defense (or a representative of the 
Secretary of Defense designated by the Secretary of Defense 
after consultation with the Defense Advisory Committee on 
Women in the Services); and 
(iii) the Under Secretary for Health and the Under Secretary for 
Benefits, or their designees. 
(C) The Secretary may invite representatives of other departments and 
agencies of the United States to participate in the meetings and other 
activities of the Committee. 
(3) The Secretary shall determine the number, terms of service, 
and pay and allowances of members of the Committee appointed by 
the Secretary, except that a term of service of any such member 
may not exceed three years. The Secretary may reappoint any such 
member for additional terms of service. 
(b) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee with respect to the administration of 
benefits by the Department for women veterans, reports and 
studies pertaining to women veterans and the needs of women veterans 
with respect to compensation, health care, rehabilitation, 
outreach, and other benefits and programs administered by the 
Department, including the Center for Women Veterans. 
(c)(1) Not later than July 1 of each even-numbered year, the 
Committee shall submit to the Secretary a report on the programs 
and activities of the Department that pertain to women veterans. 
Each such report shall include- 

(A) an assessment of the needs of women veterans with respect to 
compensation, health care, rehabilitation, outreach, 
and other benefits and programs administered by the Department; 
(B) a review of the programs and activities of the Department designed 
to meet such needs; and 
(C) such recommendations (including recommendations for 
administrative and legislative action) as the Committee considers 
appropriate. 

Sec. 543 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 62 

(2) The Secretary shall, within 60 days after receiving each report 
under paragraph (1), submit to the Congress a copy of the report, 
together with any comments concerning the report that the 
Secretary considers appropriate. 
(3) The Committee may also submit to the Secretary such 
other reports and recommendations as the Committee considers appropriate. 
(4) The Secretary shall submit with each annual report submitted to the 
Congress pursuant to section 529 of this title a summary of all reports 
and recommendations of the Committee submitted to the Secretary since the 
previous annual report of the Secretary submitted pursuant to such 
section. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 393; amended 
Pub. L. 102- 
405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 
104-275, title V, 
Sec. 501(e)(1), Oct. 9, 1996, 110 Stat. 3341; Pub. L. 106-419, title 
IV, Sec. 403(c)(3), 
Nov. 1, 2000, 114 Stat. 1864; Pub. L. 109-444, Sec. 5, Dec. 21, 2006, 
120 Stat. 3308; 
Pub. L. 109-461, title II, Sec. 208(b), title X, Sec. 1006(b), 
Dec. 22, 2006, 120 Stat.
3413, 3468; Pub. L. 110-387, title VIII, Sec. 808, Oct. 10, 2008, 
122 Stat. 4141.) 

ï¿½ 543. Advisory Committee on Prosthetics and Special-Disabilities 
Programs 

(a) There is in the Department an advisory committee known 
as the Advisory Committee on Prosthetics and Special-Disabilities 
Programs (hereinafter in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). 
(b) The objectives and scope of activities of the Committee shall 
relate to- 
(1) prosthetics and special-disabilities programs administered by the 
Secretary; 
(2) the coordination of programs of the Department for the 
development and testing of, and for information exchange regarding, 
prosthetic devices; 
(3) the coordination of Department and non-Department 
programs that involve the development and testing of prosthetic 
devices; and 
(4) the adequacy of funding for the prosthetics and special-
disabilities programs of the Department. 
(c) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee on the matters described in 
subsection (b). 
(d) Not later than January 15 of 1993, 1994, and 1995, the 
Committee shall submit to the Secretary and the Committees on 
Veteransï¿½ Affairs of the Senate and House of Representatives a report 
on the effectiveness of the prosthetics and special-disabilities 
programs administered by the Secretary during the preceding fiscal 
year. Not more than 60 days after the date on which any such report is 
received by the Secretary, the Secretary shall submit a report to such
committees commenting on the report of the Committee. 
(e) As used in this section, the term ï¿½ï¿½special-disabilities programsï¿½ï¿½ 
includes all programs administered by the Secretary for- 
(1) spinal-cord-injured veterans; 
(2) blind veterans; 
(3) veterans who have lost or lost the use of extremities; 
(4) hearing-impaired veterans; and 

63 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 544 

(5) other veterans with serious incapacities in terms of 
daily life functions. 
(Added Pub. L. 102-405, title I, Sec. 105(b)(1), Oct. 9, 1992, 106 
Stat. 1975.) 

ï¿½ 544. Advisory Committee on Minority Veterans 

(a)(1) The Secretary shall establish an advisory committee to 
be known as the Advisory Committee on Minority Veterans (hereinafter in 
this section referred to as ï¿½ï¿½the Committeeï¿½ï¿½). 

(2)(A) The Committee shall consist of members appointed by 
the Secretary from the general public, including- 

(i) representatives of veterans who are minority group 
members; 
(ii) individuals who are recognized authorities in fields pertinent to 
the needs of veterans who are minority group members; 
(iii) veterans who are minority group members and who 
have experience in a military theater of operations; and 
(iv) veterans who are minority group members and who do 
not have such experience. 
(B) The Committee shall include, as ex officio members, the following: 
(i) The Secretary of Labor (or a representative of the Secretary of 
Labor designated by the Secretary after consultation 
with the Assistant Secretary of Labor for Veteransï¿½ Employment). 
(ii) The Secretary of Defense (or a representative of the 
Secretary of Defense designated by the Secretary of Defense). 
(iii) The Secretary of the Interior (or a representative of 
the Secretary of the Interior designated by the Secretary of the 
Interior). 
(iv) The Secretary of Commerce (or a representative of the 
Secretary of Commerce designated by the Secretary of Commerce). 
(v) The Secretary of Health and Human Services (or a representative of 
the Secretary of Health and Human Services 
designated by the Secretary of Health and Human Services). 
(vi) The Under Secretary for Health and the Under Secretary for 
Benefits, or their designees. 
(C) The Secretary may invite representatives of other departments and 
agencies of the United States to participate in the meetings and other 
activities of the Committee. 
(3) The Secretary shall determine the number, terms of service, 
and pay and allowances of members of the Committee appointed by 
the Secretary, except that a term of service of any such member 
may not exceed three years. The Secretary may reappoint any such 
member for additional terms of service. 
(4) The Committee shall meet as often as the Secretary considers 
necessary or appropriate, but not less often than twice each 
fiscal year. 
(b) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee with respect to the administration of 
benefits by the Department for veterans who are minority 
group members, reports and studies pertaining to such veterans 
and the needs of such veterans with respect to compensation, 

Sec. 545 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 64 

health care, rehabilitation, outreach, and other benefits and programs
administered by the Department, including the Center for 
Minority Veterans. 

(c)(1) Not later than July 1 of each year, the Committee shall 
submit to the Secretary a report on the programs and activities of 
the Department that pertain to veterans who are minority group 
members. Each such report shall include- 

(A) an assessment of the needs of veterans who are minority group 
members with respect to compensation, health care, 
rehabilitation, outreach, and other benefits and programs administered 
by the Department; 
(B) a review of the programs and activities of the Department designed 
to meet such needs; and 
(C) such recommendations (including recommendations for 
administrative and legislative action) as the Committee considers 
appropriate. 
(2) The Secretary shall, within 60 days after receiving each report 
under paragraph (1), submit to Congress a copy of the report, 
together with any comments concerning the report that the Secretary 
considers appropriate. 
(3) The Committee may also submit to the Secretary such 
other reports and recommendations as the Committee considers appropriate. 
(4) The Secretary shall submit with each annual report submitted to the 
Congress pursuant to section 529 of this title a summary of all reports 
and recommendations of the Committee submitted to the Secretary since the 
previous annual report of the Secretary submitted pursuant to such 
section. 
(d) In this section, the term ï¿½ï¿½minority group memberï¿½ï¿½ means 
an individual who is- 
(1) Asian American; 
(2) Black; 
(3) Hispanic; 
(4) Native American (including American Indian, Alaskan 
Native, and Native Hawaiian); or 
(5) Pacific-Islander American. 
(e) The Committee shall cease to exist December 31, 2014. 
(Added Pub. L. 103-446, title V, Sec. 510(a), Nov. 2, 1994, 108 Stat. 
4668; amended 
Pub. L. 104-275, title V, Sec. 501(e)(2), (f), Oct. 9, 1996, 110 Stat. 
3341; Pub. L. 
106-117, title VIII, Sec. 803, Nov. 30, 1999, 113 Stat. 1586; 
Pub. L. 108-183, title 
VII, Sec. 703, Dec. 16, 2003, 117 Stat. 2671; Pub. L. 110-389, 
title VIII, Sec. 808, 
Oct. 10, 2008, 122 Stat. 4189.) 

ï¿½ 545. Advisory Committee on the Readjustment of Veterans 

(a)(1) There is in the Department the Advisory Committee on 
the Readjustment of Veterans (hereinafter in this section referred 
to as the ï¿½ï¿½Committeeï¿½ï¿½). 

(2) The Committee shall consist of not more than 18 members 
appointed by the Secretary from among individuals who- 
(A) have demonstrated significant civic or professional 
achievement; and 
(B) have experience with the provision of veterans benefits 
and services by the Department. 

65 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 545 

(3) The Secretary shall seek to ensure that members appointed 
to the Committee include individuals from a wide variety of geographic 
areas and ethnic backgrounds, individuals from veterans 
service organizations, individuals with combat experience, and 
women. 
(4) The Secretary shall determine the terms of service and pay 
and allowances of the members of the Committee, except that a 
term of service may not exceed two years. The Secretary may reappoint 
any member for additional terms of service. 
(b)(1) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee with respect to the provision by 
the Department of benefits and services to veterans in order to assist 
veterans in the readjustment to civilian life. 

(2)(A) In providing advice to the Secretary under this subsection, the 
Committee shall- 

(i) assemble and review information relating to the needs 
of veterans in readjusting to civilian life; 
(ii) provide information relating to the nature and character of 
psychological problems arising from service in the 
Armed Forces; 
(iii) provide an on-going assessment of the effectiveness of 
the policies, organizational structures, and services of the Department 
in assisting veterans in readjusting to civilian life; 
and 
(iv) provide on-going advice on the most appropriate means 
of responding to the readjustment needs of veterans in the future. 
(B) In carrying out its duties under subparagraph (A), the 
Committee shall take into special account the needs of veterans 
who have served in a theater of combat operations. 
(c)(1) Not later than March 31 of each year, 
the Committee shall submit to the Secretary a report on the programs 
and activities of the Department that relate to the readjustment of 
veterans to civilian life. Each such report shall include- 

(A) an assessment of the needs of veterans with respect to 
readjustment to civilian life; 
(B) a review of the programs and activities of the Department designed 
to meet such needs; and 
(C) such recommendations (including recommendations for 
administrative and legislative action) as the Committee considers 
appropriate. 
(2) Not later than 90 days after the receipt of a report under 
paragraph (1), the Secretary shall transmit to the Committees on 
Veteransï¿½ Affairs of the Senate and House of Representatives a 
copy of the report, together with any comments and recommendations 
concerning the report that the Secretary considers appropriate. 
(3) The Committee may also submit to the Secretary such 
other reports and recommendations as the Committee considers 
appropriate. 
(4) The Secretary shall submit with each annual report submitted to 
the Congress pursuant to section 529 of this title a summary of all 
reports and recommendations of the Committee sub

Sec. 546 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY 66 

mitted to the Secretary since the previous annual report of the 
Secretary submitted pursuant to that section. 

(d)(1) Except as provided in paragraph (2), the provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the 
activities of the Committee under this section. 

(2) Section 14 of such Act shall not apply to the Committee. 
(Added Pub. L. 104-262, title III, Sec. 333(a)(1), Oct. 9, 1996, 
110 Stat. 3199; 
amended Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 Stat. 35.) 

ï¿½ 546. Advisory Committee on Disability Compensation 

(a) ESTABLISHMENT.-(1) There is in the Department the Advisory 
Committee on Disability Compensation (in this section referred to 
as the ï¿½ï¿½Committeeï¿½ï¿½). 
(2) The Committee shall consist of not more than 18 members 
appointed by the Secretary from among individuals who- 
(A) have experience with the provision of disability compensation by 
the Department; or 
(B) are leading medical or scientific experts in relevant 
fields. 
(3)(A) Except as provided in subparagraph (B), the Secretary 
shall determine the terms of service and pay and allowances of the 
members of the Committee. 

(B) A term of service may not exceed four years and shall be 
staggered to ensure that the dates for the termination of the membersï¿½ 
terms are not all the same. 
(C) The Secretary may reappoint any member for one or more 
additional terms of service. 
(4) The Secretary shall select a Chair from among the members of the 
Committee. 
(b) RESPONSIBILITIES OF COMMITTEE.-(1) The Secretary shall, 
on a regular basis, consult with and seek the advice of the Committee 
with respect to the maintenance and periodic readjustment 
of the schedule for rating disabilities under section 1155 of this 
title. 
(2)(A) In providing advice to the Secretary under this subsection, the 
Committee shall- 

(i) assemble and review relevant information relating to 
the needs of veterans with disabilities; 
(ii) provide information relating to the nature and character of 
disabilities arising from service in the Armed Forces; 
(iii) provide an on-going assessment of the effectiveness of 
the schedule for rating disabilities; and 
(iv) provide on-going advice on the most appropriate means 
of responding to the needs of veterans relating to disability 
compensation in the future. 
(B) In carrying out its duties under subparagraph (A), the 
Committee shall take into special account the needs of veterans 
who have served in a theater of combat operations. 
(c) RESOURCES.-The Secretary shall ensure that appropriate 
personnel, funding, and other resources are provided to the Committee 
to carry out its responsibilities. 
(d) BIENNIAL REPORTS TO THE SECRETARY.-(1) Not later than 
October 31, 2010, and not less frequently than every two years 
thereafter, the Committee shall submit to the Secretary a report on 

67 CH. 5-AUTHORITY AND DUTIES OF THE SECRETARY Sec. 546 

the programs and activities of the Department that relate to the 
payment of disability compensation. Each such report shall include- 

(A) an assessment of the needs of veterans with respect to 
disability compensation; and 
(B) such recommendations (including recommendations for 
administrative or legislative action) as the Committee considers 
appropriate. 
(2) The Committee may submit to the Secretary such other reports and 
recommendations as the Committee considers appropriate. 
(e) BIENNIAL REPORTS TO CONGRESS.-(1) Not later than 90 
days after the receipt of a report required under subsection (d)(1), 
the Secretary shall transmit to the Committee on Veteransï¿½ Affairs 
of the Senate and the Committee on Veteransï¿½ Affairs of the House 
of Representatives a copy of such report, together with such comments 
and recommendations concerning such report as the Secretary considers 
appropriate. 
(2) The Secretary shall submit with each report required under 
paragraph (1) a summary of all reports and recommendations of 
the Committee submitted to the Secretary under subsection (d)(2) 
since the previous report transmitted by the Secretary under paragraph 
(1) of this subsection. 
(f) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.-(1) 
Except as provided in paragraph (2), the provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall apply to the activities of 
the Committee under this section. 
(Added Pub. L. 110-389, title II, Sec. 214(a), Oct. 10, 2008, 122 Stat. 
4152.) 


CHAPTER 7 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


69 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART I-GENERAL PROVISIONSï¿½ 

CHAPTER 7-EMPLOYEES 

Sec. 

701. Placement of employees in military installations. 
703. Miscellaneous authorities respecting employees. 
705. Telephone service for medical officers and facility directors. 
707. Benefits for employees at overseas offices who are United States 
citizens. 
709. Employment restrictions. 
711. Grade reductions. 
[712. Repealed.] 
ï¿½ 701. Placement of employees in military installations 

The Secretary may place employees of the Department in such 
Army, Navy, and Air Force installations as may be considered advisable 
for the purpose of adjudicating disability claims of, and giving aid and 
advice to, members of the Armed Forces who are about 
to be discharged or released from active military, naval, or air service. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 394.) 

ï¿½ 703. Miscellaneous authorities respecting employees 

(a) The Secretary may furnish and launder such wearing apparel as may be 
prescribed for employees in the performance of 
their official duties. 
(b) The Secretary may transport children of Department employees 
located at isolated stations to and from school in available 
Government-owned automotive equipment. 
(c) The Secretary may provide recreational facilities, supplies, 
and equipment for the use of patients in hospitals and employees 
in isolated installations. 
(d) The Secretary may provide for the preparation, shipment, 
installation, and display of exhibits, photographic displays, moving 
pictures, and other visual educational information and descriptive 
material. For the purposes of the preceding sentence, the Secretary 
may purchase or rent equipment. 
(e) The Secretary may reimburse employees for the cost of repairing or 
replacing their personal property damaged or destroyed 
by patients or domiciliary members while such employees are engaged in 
the performance of their official duties. 
(f)(1) The Secretary, upon determining that an emergency situation 
exists and that such action is necessary for the effective conduct of 
the affairs of the Department, may use Government-owned, 
or leased, vehicles to transport employees to and from their place 
of employment and the nearest adequate public transportation or, 

71 


Sec. 705 CH. 7-EMPLOYEES 72 

if such public transportation is either unavailable or not feasible to 
use, to and from their place of employment and their home. 

(2) The Secretary shall establish reasonable rates to cover the 
cost of the service rendered under this subsection, and all proceeds 
collected therefrom shall be applied to the applicable appropriation. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 394.) 

ï¿½ 705. Telephone service for medical officers and facility directors 

The Secretary may pay for official telephone service and rental 
in the field whenever incurred in case of official telephones for 
directors of centers, hospitals, independent clinics, domiciliaries, and 
medical officers of the Department where such telephones are installed 
in private residences or private apartments or quarters, 
when authorized under regulations prescribed by the Secretary. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 395.) 

ï¿½ 707. Benefits for employees at overseas offices who are 
United States citizens 

(a) The Secretary may, under such rules and regulations as 
may be prescribed by the President or the Presidentï¿½s designee, 
provide to personnel of the Department who are United States citizens 
and are assigned by the Secretary to the Department offices 
in the Republic of the Philippines allowances and benefits similar 
to those provided by the following provisions of law: 
(1) Section 905 of the Foreign Service Act of 1980 (relating 
to allowances to provide for the proper representation of the 
United States). 
(2) Sections 901(1), (2), (3), (4), (7), (8), (9), (11), and 
expenses). 
(3) Section 901(13) of the Foreign Service Act of 1980 (relating to 
transportation of automobiles). 
(4) Section 903 of the Foreign Service Act of 1980 (relating 
to the return of personnel to the United States on leave of absence). 
(5) Section 904(d) of the Foreign Service Act of 1980 (relating to 
payments by the United States of expenses for treating 
illness or injury of officers or employees and dependents requiring 
hospitalization). 
(6) Section 5724a(c) of title 5 (relating to subsistence expenses for 
60 days in connection with the return to the United 
States of the employee and such employeeï¿½s immediate family). 
(7) Section 5724a(d) of title 5 (relating to the sale and purchase of 
the residence or settlement of an unexpired lease of 
the employee when transferred from one station to another station and 
both stations are in the United States, its territories 
or possessions, or the Commonwealth of Puerto Rico). 
(b) The authority in subsection (a) supplements, but is not in 
lieu of, other allowances and benefits for overseas employees of the 
Department provided by title 5 and the Foreign Service Act of 1980 
(22 U.S.C. 3901 et seq.). 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 395; amended 
Pub. L. 104- 
201, div. A, title XVII, Sec. 1723(a)(2), Sept. 23, 1996, 110 Stat. 2759.) 


73 CH. 7-EMPLOYEES Sec. 711 

ï¿½ 709. Employment restrictions 

(a)(1) Notwithstanding section 3134(d) of title 5, the number of 
Senior Executive Service positions in the Department which are 
filled by noncareer appointees in any fiscal year may not at any 
time exceed 5 percent of the average number of senior executives 
employed in Senior Executive Service positions in the Department 
during the preceding fiscal year. 

(2) For purposes of this subsection, the average number of senior 
executives employed in Senior Executive Service positions in 
the Department during a fiscal year shall be equal to 25 percent 
of the sum of the total number of senior executives employed in 
Senior Executive Service positions in the Department on the last 
day of each quarter of such fiscal year. 
(b) The number of positions in the Department which may be 
excepted from the competitive service, on a temporary or permanent 
basis, because of their confidential or policy-determining character 
may not at any time exceed the equivalent of 15 positions. 
(c)(1) Political affiliation or activity may not be taken into account 
in connection with the appointment of any person to any position in or 
to perform any service for the Department or in the assignment or 
advancement of any employee in the Department. 

(2) Paragraph (1) shall not apply- 
(A) to the appointment of any person by the President 
under this title, other than the appointment of the Under Secretary for 
Health, the Under Secretary for Benefits, and the Inspector General; or 
(B) to the appointment of any person to (i) a Senior Executive Service 
position as a noncareer appointee, or (ii) a position 
that is excepted from the competitive service, on a temporary 
or permanent basis, because of the confidential or policy-determining 
character of the position. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 395; amended 
Pub. L. 102- 
405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984.) 

ï¿½ 711. Grade reductions 

(a) The Secretary may not implement a grade reduction described in 
subsection (b) unless the Secretary first submits to the 
Committees on Veteransï¿½ Affairs of the Senate and House of 
Representatives a report containing a detailed plan for such reduction 
and a detailed justification for the plan. The report shall include 
a determination by the Secretary (together with data supporting 
such determination) that, in the personnel area concerned, the 
Department has a disproportionate number of employees at the salary 
grade or grades selected for reduction in comparison to the number 
of such employees at the salary levels involved who perform comparable 
functions in other departments and agencies of the Federal 
Government and in non-Federal entities. Any grade reduction described 
in such report may not take effect until the end of a period 
of 90 calendar days (not including any day on which either House 
of Congress is not in session) after the report is received by the 
committees. 
(b) A grade reduction referred to in subsection (a) is a systematic 
reduction, for the purpose of reducing the average salary cost 

Sec. 712 CH. 7-EMPLOYEES 74 

for Department employees described in subsection (c), in the number of 
such Department employees at a specific grade level. 

(c) The employees referred to in subsection (b) are- 
(1) health-care personnel who are determined by the Secretary to be 
providing either direct patient-care services or 
services incident to direct patient-care services; 
(2) individuals who meet the definition of professional employee as set 
forth in section 7103(a)(15) of title 5; and 
(3) individuals who are employed as computer specialists. 
(d) Not later than the 45th day after the Secretary submits a 
report under subsection (a), the Comptroller General shall, upon 
request of either of such Committees, submit to such committees 
a report on the Secretaryï¿½s compliance with such subsection. The 
Comptroller General shall include in the report the Comptroller 
Generalï¿½s opinion as to the accuracy of the Secretaryï¿½s determination 
(and of the data supporting such determination) made under 
such subsection. 
(e) In the case of Department employees not described in subsection (c), 
the Secretary may not in any fiscal year implement a 
systematic reduction for the purpose of reducing the average salary 
cost for such Department employees that will result in a reduction 
in the number of such Department employees at any specific grade 
level at a rate greater than the rate of the reductions systematically 
being made in the numbers of employees at such grade level 
in all other agencies and departments of the Federal Government 
combined. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 396; amended 
Pub. L. 103- 
446, title XII, Sec. 1201(e)(5), Nov. 2, 1994, 108 Stat. 4685; Pub. L. 
104-316, title 
I, Sec. 119, Oct. 19, 1996, 110 Stat. 3836.) 

ï¿½ï¿½ 712. Repealed. Pub. L. 107-103, title V, Sec. 509(a)(1), Dec. 
27, 2001, 115 Stat. 997ï¿½ 


CHAPTER 9 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


75 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART I-GENERAL PROVISIONSï¿½ 

CHAPTER 9-SECURITY AND LAW ENFORCEMENT ON 
PROPERTY UNDER THE JURISDICTION OF THE DEPARTMENT 

Sec. 

901. Authority to prescribe rules for conduct and penalties for 
violations. 
902. Enforcement and arrest authority of Department police officers. 
903. Uniform allowance. 
904. Equipment and weapons. 
905. Use of facilities and services of other law enforcement agencies. 
ï¿½ 901. Authority to prescribe rules for conduct and penalties 
for violations 

(a)(1) The Secretary shall prescribe regulations to provide for 
the maintenance of law and order and the protection of persons 
and property on Department property. 

(2) In this chapter, the term ï¿½ï¿½Department propertyï¿½ï¿½ means 
land and buildings that are under the jurisdiction of the Department and 
are not under control of the Administrator of General 
Services. 
(b) Regulations under subsection (a) shall include- 
(1) rules for conduct on Department property; and 
(2) the penalties, within the limits specified in subsection 
(c), for violations of such rules. 
(c) Whoever violates any rule prescribed by regulation under 
subsection (b)(1) shall be fined in accordance with title 18 or 
imprisoned not more than six months, or both. The Secretary may 
prescribe by regulation a maximum fine less than that which would 
otherwise apply under the preceding sentence or a maximum term 
of imprisonment of a shorter period than that which would otherwise 
apply under the preceding sentence, or both. Any such regulation shall 
apply notwithstanding any provision of title 18 or any 
other law to the contrary. 
(d) The rules prescribed under subsection (a), together with the 
penalties for violations of such rules, shall be posted conspicuously 
on property to which they apply. 
(e) The Secretary shall consult with the Attorney General be
fore prescribing regulations under this section. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 397.) 

77 


Sec. 902 CH. 9-SECURITY AND LAW ENFORCEMENT 78 

ï¿½ 902. Enforcement and arrest authority of Department police officers 

(a)(1) Employees of the Department who are Department police 
officers shall, with respect to acts occurring on Department property, 
enforce- 

(A) Federal laws; 
(B) the rules prescribed under section 901 of this title; and 
(C) subject to paragraph (2), traffic and motor vehicle laws 
of a State or local government within the jurisdiction of which 
such Department property is located. 
(2) A law described in subparagraph (C) of paragraph (1) may 
be enforced under such subparagraph only as authorized by an express 
grant of authority under applicable State or local law. Any 
such enforcement shall be by the issuance of a citation for violation 
of such law. 
(3) Subject to regulations prescribed under subsection (b), a 
Department police officer may make arrests on Department property for a 
violation of a Federal law or any rule prescribed under 
section 901(a) of this title. 
(b) The Secretary shall prescribe regulations with respect to 
Department police officers. Such regulations shall include- 
(1) policies with respect to the exercise by Department police officers 
of the enforcement and arrest authorities provided 
by this section; 
(2) the scope and duration of training that is required for 
Department police officers, with particular emphasis on dealing with 
situations involving patients; and 
(3) rules limiting the carrying and use of weapons by Department police 
officers. 
(c) The Secretary shall consult with the Attorney General before 
prescribing regulations under paragraph (1) of subsection (b). 
(d) Rates of basic pay for Department police officers may be in
creased by the Secretary under section 7455 of this title. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 397.) 

ï¿½ 903. Uniform allowance 

(a) The Secretary may pay an allowance under this section for 
the purchase of uniforms to any Department police officer who is 
required to wear a prescribed uniform in the performance of official 
duties. 
(b) The amount of the allowance that the Secretary may pay 
under this section- 
(1) may be based on estimated average costs or actual 
costs; 
(2) may vary by geographic regions; and 
(3) except as provided in subsection (c), may not exceed 
$200 in a fiscal year for any police officer. 
(c) The amount of an allowance under this section may be increased 
to an amount up to $400 for not more than one fiscal year 
in the case of any Department police officer. In the case of a person 
who is appointed as a Department police officer on or after January 
1, 1990, an allowance in an amount established under this subsection
shall be paid at the beginning of such personï¿½s employment 

79 CH. 9-SECURITY AND LAW ENFORCEMENT Sec. 905 

as such an officer. In the case of any other Department police 
officer, an allowance in an amount established under this subsection 
shall be paid upon the request of the officer. 

(d) A police officer who resigns as a police officer less than one 
year after receiving an allowance in an amount established under 
this section shall repay to the Department a pro rata share of the 
amount paid, based on the number of months the officer was actually 
employed as such an officer during the twelve-month period 
following the date on which such officer began such employment or 
the date on which the officer submitted a request for such an 
allowance, as the case may be. 
(e) An allowance may not be paid to a Department police officer under 
this section and under section 5901 of title 5 for the 
same fiscal year. 
(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 398.) 

ï¿½ 904. Equipment and weapons 

The Secretary shall furnish Department police officers with 
such weapons and related equipment as the Secretary determines 
to be necessary and appropriate. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 399.) 

ï¿½ 905. Use of facilities and services of other law enforcement 
agencies 

With the permission of the head of the agency concerned, the 
Secretary may use the facilities and services of Federal, State, and 
local law enforcement agencies when it is economical and in the 
public interest to do so. 

(Added Pub. L. 102-83, Sec. 2(a), Aug. 6, 1991, 105 Stat. 399.) 


CHAPTER 11 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


81 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

PART II-GENERAL BENEFITS 

Chapter Sec. 

11. Compensation for Service-Connected Disability or 
Death ........................................................... 1101 

13. Dependency and Indemnity Compensation for Service-Connected 
Deaths ...... 1301 

15. Pension for Non-Service-Connected Disability or 
Death or for Service ............................................. 1501 

17. Hospital, Nursing Home, Domiciliary, and Medical 
Care ........................................................... 1701 

18. Benefits for Children of Vietnam Veterans and Certain Other Veterans ................................................. 1802 

19. Insurance ................................................ 1901


20. Benefits for Homeless Veterans ............................ 2001


21. Specially Adapted Housing for Disabled Veterans ... 2101 

23. Burial Benefits ......................................... 2301

24. National Cemeteries and Memorials ......................... 2400


83 


CHAPTER 11-COMPENSATION FOR SERVICE
CONNECTED DISABILITY OR DEATH


SUBCHAPTER I-GENERAL 

Sec. 

1101. Definitions. 

1102. Special provisions relating to surviving spouses. 

1103. Special provisions relating to claims based upon effects of 
tobacco products. 

1104. Cost-of-living-adjustments. 

SUBCHAPTER II-WARTIME DISABILITY COMPENSATION 

1110. Basic entitlement. 

1111. Presumption of sound condition. 

1112. Presumptions relating to certain diseases and disabilities. 

1113. Presumptions rebuttable. 

1114. Rates of wartime disability compensation. 

1115. Additional compensation for dependents. 

1116. Presumptions of service connection for diseases associated 
with exposure 
to certain herbicide agents; presumption of exposure for veterans 
who served in the Republic of Vietnam. 

1117. Compensation for disabilities occurring in Persian Gulf War 
veterans. 

1118. Presumptions of service connection for illnesses associated with 
service in 
the Persian Gulf during the Persian Gulf War. 

SUBCHAPTER III-WARTIME DEATH COMPENSATION 

1121. Basic entitlement. 
1122. Rates of wartime death compensation. 


SUBCHAPTER IV-PEACETIME DISABILITY COMPENSATION 

1131. Basic entitlement. 
1132. Presumption of sound condition. 
1133. Presumptions relating to certain diseases. 
1134. Rates of peacetime disability compensation. 
1135. Additional compensation for dependents. 
1137. Wartime presumptions for certain veterans. 


SUBCHAPTER V-PEACETIME DEATH COMPENSATION 

1141. Basic entitlement. 
1142. Rates of peacetime death compensation. 


SUBCHAPTER VI-GENERAL COMPENSATION PROVISIONS 

1151. Benefits for persons disabled by treatment or vocational 
rehabilitation. 

1152. Persons heretofore having a compensable status. 

1153. Aggravation. 

1154. Consideration to be accorded time, place, and circumstances of 
service. 

1155. Authority for schedule for rating disabilities. 

1156. Temporary disability ratings. 

1157. Combination of certain ratings. 

1158. Disappearance. 

1159. Protection of service connection. 

1160. Special consideration for certain cases of loss of paired organs 
or extremities. 

1161. Payment of disability compensation in disability severance cases. 

1162. Clothing allowance. 

1163. Trial work periods and vocational rehabilitation for certain 
veterans with 
total disability ratings. 

85 


Sec. 1101 CH. 11-DISABILITY COMPENSATION 

SUBCHAPTER I-GENERAL 

ï¿½ 1101. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½veteranï¿½ï¿½ includes a person who died in the active 
military, naval, or air service. 
(2) The term ï¿½ï¿½period of warï¿½ï¿½ includes, in the case of any veteran- 
(A) any period of service performed by such veteran after 
November 11, 1918, and before July 2, 1921, if such veteran 
served in the active military, naval, or air service after April 
5, 1917, and before November 12, 1918; and 
(B) any period of continuous service performed by such veteran after 
December 31, 1946, and before July 26, 1947, if such 
period began before January 1, 1947. 
(3) The term ï¿½ï¿½chronic diseaseï¿½ï¿½ includes- 
Anemia, primary 
Arteriosclerosis 
Arthritis 
Atrophy, progressive muscular 
Brain hemorrhage 
Brain thrombosis 
Bronchiectasis 
Calculi of the kidney, bladder, or gallbladder 
Cardiovascular-renal disease, including hypertension 
Cirrhosis of the liver 
Coccidioidomycosis 
Diabetes mellitus 
Encephalitis lethargica residuals 
Endocarditis 
Endocrinopathies 
Epilepsies 
Hansenï¿½s disease 
Hodgkinï¿½s disease 
Leukemia 
Lupus erythematosus, systemic 
Myasthenia gravis 
Myelitis 
Myocarditis 
Nephritis 
Organic diseases of the nervous system 
Osteitis deformans (Pagetï¿½s disease) 
Osteomalacia 
Palsy, bulbar 
Paralysis agitans 
Psychoses 
Purpura idiopathic, hemorrhagic 
Raynaudï¿½s disease 
Sarcoidosis 
Scleroderma 
Sclerosis, amyotrophic lateral 
Sclerosis, multiple 
Syringomyelia 
Thromboangiitis obliterans (Buergerï¿½s disease) 

CH. 11-DISABILITY COMPENSATION Sec. 1102 

Tuberculosis, active 

Tumors, malignant, or of the brain or spinal cord or pe

ripheral nerves 

Ulcers, peptic (gastric or duodenal) 
and such other chronic diseases as the Secretary may add to this 
list. 

(4) The term ï¿½ï¿½tropical diseaseï¿½ï¿½ includes-
Amebiasis 
Blackwater fever 
Cholera 
Dracontiasis 
Dysentery 
Filiariasis 
Hansenï¿½s disease 
Leishmaniasis, including kala-azar 
Loiasis 
Malaria 
Onchocerciasis 
Oroya fever 
Pinta 
Plague 
Schistosomiasis 
Yaws 
Yellow fever
and such other tropical diseases as the Secretary may add to this 
list.
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1118, Sec. 301; Pub. L. 
94-433, title IV, 
Sec. 401(2), (3), 404(1), Sept. 30, 1976, 90 Stat. 1377, 1378; Pub. L. 
98-160, title 
VII, Sec. 702(2), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 100-322, title 
III, Sec. 313, 
May 20, 1988, 102 Stat. 535; renumbered Sec. 1101 and amended Pub. L. 
102-83, 
Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)


ï¿½ 1102. Special provisions relating to surviving spouses 

(a) No compensation shall be paid to the surviving spouse of 
a veteran under this chapter unless such surviving spouse was 
married to such veteran- 
(1) before the expiration of fifteen years after the termination of the 
period of service in which the injury or disease 
causing the death of the veteran was incurred or aggravated; 
or 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. 
(b) Subsection (a) shall not be applicable to any surviving 
spouse who, with respect to date of marriage, could have qualified 
as a surviving spouse for death compensation under any law administered 
by the Secretary in effect on December 31, 1957. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1119, Sec. 302; Pub. L. 86-491, 
June 8, 1960, 74 Stat. 161; Pub. L. 90-77, title I, Sec. 101(a), Aug. 31, 
1967, 81 Stat. 178; Pub. L. 94-433, title IV, Sec. 404(2)-(4), Sept. 30, 
1976, 90 Stat. 1378; renumbered Sec. 1102 and amended Pub. L. 102-83, 
Sec. 4(a)(1), 5(a), Aug. 6, 1991, 105 Stat. 
403, 406.) 


Sec. 1103 CH. 11-DISABILITY COMPENSATION 

ï¿½ 1103. Special provisions relating to claims based upon effects of 
tobacco products 

(a) Notwithstanding any other provision of law, a veteranï¿½s disability 
or death shall not be considered to have resulted from personal injury 
suffered or disease contracted in the line of duty in the 
active military, naval, or air service for purposes of this title on the 
basis that it resulted from injury or disease attributable to the use 
of tobacco products by the veteran during the veteranï¿½s service. 
(b) Nothing in subsection (a) shall be construed as precluding 
the establishment of service connection for disability or death from 
a disease or injury which is otherwise shown to have been incurred 
or aggravated in active military, naval, or air service or which became 
manifest to the requisite degree of disability during any applicable 
presumptive period specified in section 1112 or 1116 of this 
title. 
(Added Pub. L. 105-178, title VIII, Sec. 8202(a)(1), as added Pub. L. 
105-206, title IX, Sec. 9014(a), July 22, 1998, 112 Stat. 865.) 

ï¿½ 1104. Cost-of-living adjustments 

(a) In the computation of cost-of-living adjustments for fiscal 
years 1998 through 2013 in the rates of, and dollar limitations 
applicable to, compensation payable under this chapter, such 
adjustments shall be made by a uniform percentage that is no more than 
the percentage equal to the social security increase for that fiscal 
year, with all increased monthly rates and limitations (other than 
increased rates or limitations equal to a whole dollar amount) 
rounded down to the next lower whole dollar amount. 
(b) For purposes of this section, the term ï¿½ï¿½social security 
increaseï¿½ï¿½ means the percentage by which benefit amounts payable 
under title II of the Social Security Act (42 U.S.C. 401 et seq.) are 
increased for any fiscal year as a result of a determination under 
section 215(i) of such Act (42 U.S.C. 415(i)). 
(Added Pub. L. 105-33, title VIII, Sec. 8031(a)(1), Aug. 5, 1997, 111 
Stat. 668, Sec. 
1103; renumbered Sec. 1104, Pub. L. 105-368, title X, Sec. 1005(a), 
Nov. 11, 1998, 
112 Stat. 3364; amended Pub. L. 107-103, title II, Sec. 205, 
Dec. 27, 2001, 115 Stat. 
990; Pub. L. 108-183, title VII, Sec. 706, Dec. 16, 2003, 117 
Stat. 2672.) 

SUBCHAPTER II-WARTIME DISABILITY COMPENSATION 

ï¿½ 1110. Basic entitlement 

For disability resulting from personal injury suffered or disease 
contracted in line of duty, or for aggravation of a preexisting injury 
suffered or disease contracted in line of duty, in the active military, 
naval, or air service, during a period of war, the United States will 
pay to any veteran thus disabled and who was discharged or released 
under conditions other than dishonorable from the period of 
service in which said injury or disease was incurred, or preexisting 
injury or disease was aggravated, compensation as provided in this 
subchapter, but no compensation shall be paid if the disability is 
a result of the veteranï¿½s own willful misconduct or abuse of alcohol 
or drugs. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1119, Sec. 310; Pub. L. 
101-508, title VIII, 
Sec. 8052(a)(2), Nov. 5, 1990, 104 Stat. 1388-351; renumbered Sec. 
1110, Pub. L. 
102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-178, 
title VIII, Sec. 


CH. 11-DISABILITY COMPENSATION Sec. 1112 

8202(a), June 9, 1998, 112 Stat. 492; Pub. L. 105-206, title IX, 
Sec. 9014(a), July 
22, 1998, 112 Stat. 865.) 

ï¿½ 1111. Presumption of sound condition 

For the purposes of section 1110 of this title, every veteran 
shall be taken to have been in sound condition when examined, 
accepted, and enrolled for service, except as to defects, infirmities, 
or disorders noted at the time of the examination, acceptance, and 
enrollment, or where clear and unmistakable evidence demonstrates 
that the injury or disease existed before acceptance and enrollment 
and was not aggravated by such service. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1119, Sec. 311; renumbered 
Sec. 1111 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ 1112. Presumptions relating to certain diseases and disabilities 

(a) For the purposes of section 1110 of this title, and subject 
to the provisions of section 1113 of this title, in the case of any 
veteran who served for ninety days or more during a period of war- 
(1) a chronic disease becoming manifest to a degree of 10 
percent or more within one year from the date of separation 
from such service; 
(2) a tropical disease, and the resultant disorders or disease 
originating because of therapy, administered in connection 
with such diseases, or as a preventative thereof, becoming 
manifest to a degree of 10 percent or more within one year 
from the date of separation from such service, or at a time 
when standard or accepted treatises indicate that the incubation period 
thereof commenced during such service; 
(3) active tuberculous disease developing a 10 percent degree of 
disability or more within three years from the date of 
separation from such service; 
(4) multiple sclerosis developing a 10 percent degree of disability or 
more within seven years from the date of separation 
from such service; 
(5) Hansenï¿½s disease developing a 10 percent degree of disability or 
more within three years from the date of separation 
from such service; 
shall be considered to have been incurred in or aggravated by such 
service, notwithstanding there is no record of evidence of such disease
during the period of service. 

(b)(1) For the purposes of section 1110 of this title and subject 
to the provisions of section 1113 of this title, in the case of a 
veteran who is a former prisoner of war- 

(A) a disease specified in paragraph (2) which became 
manifest to a degree of 10 percent or more after active military, 
naval, or air service shall be considered to have been incurred in or 
aggravated by such service, notwithstanding that 
there is no record of such disease during the period of service; 
and 
(B) if the veteran was detained or interned as a prisoner 
of war for not less than thirty days, a disease specified in paragraph 
(3) which became manifest to a degree of 10 percent or 
more after active military, naval, or air service shall be consid

Sec. 1112 CH. 11-DISABILITY COMPENSATION 

ered to have been incurred in or aggravated by such service, 
notwithstanding that there is no record of such disease during 
the period of service. 

(2) The diseases specified in this paragraph are the following: 
(A) Psychosis. 
(B) Any of the anxiety states. 
(C) Dysthymic disorder (or depressive neurosis). 
(D) Organic residuals of frostbite, if the Secretary determines that 
the veteran was detained or interned in climatic 
conditions consistent with the occurrence of frostbite. 
(E) Post-traumatic osteoarthritis. 
(F) Osteoporosis, if the Secretary determines that the veteran has 
post-traumatic stress disorder (PTSD). 
(3) The diseases specified in this paragraph are the following: 
(A) Avitaminosis. 
(B) Beriberi (including beriberi heart disease). 
(C) Chronic dysentery. 
(D) Helminthiasis. 
(E) Malnutrition (including optic atrophy associated with 
malnutrition). 
(F) Pellagra. 
(G) Any other nutritional deficiency. 
(H) Cirrhosis of the liver. 
(I) Peripheral neuropathy except where directly related to 
infectious causes. 
(J) Irritable bowel syndrome. 
(K) Peptic ulcer disease. 
(L) Atherosclerotic heart disease or hypertensive vascular 
disease (including hypertensive heart disease) and their complications 
(including myocardial infarction, congestive heart 
failure and arrhythmia). 
(M) Stroke and its complications. 
(c)(1) For the purposes of section 1110 of this title, and subject 
to the provisions of section 1113 of this title, a disease specified in 
paragraph (2) of this subsection becoming manifest in a radiation-
exposed veteran shall be considered to have been incurred in or 
aggravated during active military, naval, or air service, 
notwithstanding that there is no record of evidence of such disease 
during a period of such service. 

(2) The diseases referred to in paragraph (1) of this subsection 
are the following: 
(A) Leukemia (other than chronic lymphocytic leukemia). 
(B) Cancer of the thyroid. 
(C) Cancer of the breast. 
(D) Cancer of the pharynx. 
(E) Cancer of the esophagus. 
(F) Cancer of the stomach. 
(G) Cancer of the small intestine. 
(H) Cancer of the pancreas. 
(I) Multiple myeloma. 
(J) Lymphomas (except Hodgkinï¿½s disease). 
(K) Cancer of the bile ducts. 
(L) Cancer of the gall bladder. 

CH. 11-DISABILITY COMPENSATION Sec. 1112 

(M) Primary liver cancer (except if cirrhosis or hepatitis B 
is indicated). 
(N) Cancer of the salivary gland. 
(O) Cancer of the urinary tract. 
(P) Bronchiolo-alveolar carcinoma. 
(Q) Cancer of the bone. 
(R) Cancer of the brain. 
(S) Cancer of the colon. 
(T) Cancer of the lung. 
(U) Cancer of the ovary. 
(3) For the purposes of this subsection: 
(A) The term ï¿½ï¿½radiation-exposed veteranï¿½ï¿½ means (i) a veteran who, 
while serving on active duty, participated in a radiation-risk activity, 
or (ii) an individual who, while a member 
of a reserve component of the Armed Forces, participated in a 
radiation-risk activity during a period of active duty for training or 
inactive duty training. 
(B) The term ï¿½ï¿½radiation-risk activityï¿½ï¿½ means any of the following: 
(i) Onsite participation in a test involving the atmospheric detonation 
of a nuclear device (without regard to 
whether the nation conducting the test was the United 
States or another nation). 
(ii) The occupation of Hiroshima or Nagasaki, Japan, 
by United States forces during the period beginning on August 6, 1945, 
and ending on July 1, 1946. 
(iii) Internment as prisoner of war in Japan (or service 
on active duty in Japan immediately following such internment) during 
World War II which (as determined by the 
Secretary) resulted in an opportunity for exposure to ionizing radiation 
comparable to that of veterans described in 
clause (ii) of this subparagraph. 
(iv) Service in a capacity which, if performed as an 
employee of the Department of Energy, would qualify the 
individual for inclusion as a member of the Special Exposure Cohort 
under section 3621(14) of the Energy Employees Occupational Illness 
Compensation Program Act of 
2000 (42 U.S.C. 7384l(14)). 
(4) A radiation-exposed veteran who receives a payment under 
the provisions of the Radiation Exposure Compensation Act of 1990 
(42 U.S.C. 2210 note) shall not be deprived, by reason of the receipt 
of that payment, of receipt of compensation to which that veteran 
is entitled by reason of paragraph (1), but there shall be deducted 
from payment of such compensation the amount of the payment 
under that Act. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1120, Sec. 312; Pub. L. 
86-187, Aug. 25, 1959, 73 Stat. 418; Pub. L. 86-188, Aug. 25, 1959, 
73 Stat. 418; Pub. L. 87-645, Sec. 3, Sept. 7, 1962, 76 Stat. 442; 
Pub. L. 91-376, Sec. 3(a), (b), Aug. 12, 1970, 84 Stat. 788, 789; 
Pub. L. 97-37, Sec. 4(a), Aug. 14, 1981, 95 Stat. 936; Pub. L. 98- 
223, title I, Sec. 101(c), 111, Mar. 2, 1984, 98 Stat. 38, 40; Pub. 
L. 99-576, title I, Sec. 108(a), Oct. 28, 1986, 100 Stat. 3252; Pub.
L. 100-321, Sec. 2(a), May 20, 1988, 102 Stat. 485; Pub. L. 100-322, 
title III, Sec. 312, May 20, 1988, 102 Stat. 534; renumbered Sec. 
1112 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-86, title I, Sec. 
104(a), 105, Aug. 14, 1991, 105 Stat. 415; Pub. L. 102-578, Sec. 
2(a), Oct. 30, 1992, 106 Stat. 4774; Pub. L. 103-446, title V, Sec. 
501(a), Nov. 2, 1994, 108 Stat. 4663; Pub. L. 106-117, title 

Sec. 1113 CH. 11-DISABILITY COMPENSATION 

V, Sec. 503, Nov. 30, 1999, 113 Stat. 1575; Pub. L. 108-183, title 
II, Sec. 201, Dec. 16, 2003, 117 Stat. 2656; Pub. L. 108-454, title 
III, Secs. 302(a), 306(a), (b), Dec. 10, 2004, 118 Stat. 3610, 3612; 
Pub. L. 109-233, title IV, Sec. 401, June 15, 2006, 120 Stat. 407; 
Pub. L. 110-389, title I, Sec. 106, Oct. 10, 2008, 122 Stat. 4149.) 

ï¿½ 1113. Presumptions rebuttable 

(a) Where there is affirmative evidence to the contrary, or evidence to 
establish that an intercurrent injury or disease which is 
a recognized cause of any of the diseases or disabilities within the 
purview of section 1112, 1116, 1117, or 1118 of this title, has been 
suffered between the date of separation from service and the onset 
of any such diseases or disabilities, or the disability is due to the 
veteranï¿½s own willful misconduct, service-connection pursuant to 
section 1112, 1116, or 1118 of this title, or payments of compensation 
pursuant to section 1117 of this title, will not be in order. 
(b) Nothing in section 1112, 1116, 1117, or 1118 of this title, 
subsection (a) of this section, or section 5 of Public Law 98-542 (38 
U.S.C. 1154 note) shall be construed to prevent the granting of 
service-connection for any disease or disorder otherwise shown by 
sound judgment to have been incurred in or aggravated by active 
military, naval, or air service. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1120, Sec. 313; Pub. L. 
102-4, Sec. 2(b), Feb. 6, 1991, 105 Stat. 13; renumbered Sec. 1113 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 103-446, title I, Sec. 106(b), title V, Sec. 501(b)(1), 
Nov. 2, 1994, 108 Stat. 4651, 4663; Pub. L. 105-277, div. C, title 
XVI, Sec. 1602(b), Oct. 21, 1998, 112 Stat. 2681-744.) 

ï¿½ 1114. Rates of wartime disability compensation 

For the purposes of section 1110 of this title- 

(a) if and while the disability is rated 10 percent the 
monthly compensation shall be $117; 
(b) if and while the disability is rated 20 percent the 
monthly compensation shall be $230; 
(c) if and while the disability is rated 30 percent the 
monthly compensation shall be $356; 
(d) if and while the disability is rated 40 percent the 
monthly compensation shall be $512; 
(e) if and while the disability is rated 50 percent the 
monthly compensation shall be $728; 
(f) if and while the disability is rated 60 percent the 
monthly compensation shall be $921; 
(g) if and while the disability is rated 70 percent the 
monthly compensation shall be $1,161; 
(h) if and while the disability is rated 80 percent the 
monthly compensation shall be $1,349; 
(i) if and while the disability is rated 90 percent the 
monthly compensation shall be $1,517; 
(j) if and while the disability is rated as total the monthly 
compensation shall be $2,527; 
(k) if the veteran, as the result of service-connected disability, 
has suffered the anatomical loss or loss of use of one 
or more creative organs, or one foot, or one hand, or both buttocks, 
or blindness of one eye, having only light perception, has 
suffered complete organic aphonia with constant inability to 
communicate by speech, or deafness of both ears, having ab

CH. 11-DISABILITY COMPENSATION Sec. 1114 

sence of air and bone conduction, or, in the case of a woman 
veteran, has suffered the anatomical loss of 25 percent or more 
of tissue from a single breast or both breasts in combination 
(including loss by mastectomy or partial mastectomy) or has 
received radiation treatment of breast tissue, the rate of compensation 
therefor shall be $91 per month for each such loss 
or loss of use independent of any other compensation provided 
in subsections (a) through (j) or subsection (s) of this section 
but in no event to exceed $3,145 per month; and in the event 
the veteran has suffered one or more of the disabilities heretofore 
specified in this subsection, in addition to the requirement for any 
of the rates specified in subsections (l) through 

(n) of this section, the rate of compensation shall be increased 
by $91 per month for each such loss or loss of use, but in no 
event to exceed $4,412 per month; 
(l) if the veteran, as the result of service-connected disability, has 
suffered the anatomical loss or loss of use of both 
feet, or of one hand and one foot, or is blind in both eyes, with 
5/200 visual acuity or less, or is permanently bedridden or with 
such significant disabilities as to be in need of regular aid and 
attendance, the monthly compensation shall be $3,145; 
(m) if the veteran, as the result of service-connected disability, has 
suffered the anatomical loss or loss of use of both 
hands, or of both legs at a level, or with complications, preventing 
natural knee action with prostheses in place, or of one 
arm and one leg at levels, or with complications, preventing 
natural elbow and knee action with prostheses in place, or has 
suffered blindness in both eyes having only light perception, or 
has suffered blindness in both eyes, rendering such veteran so 
significantly disabled as to be in need of regular aid and attendance, the 
monthly compensation shall be $3,470; 
(n) if the veteran, as the result of service-connected disability, has 
suffered the anatomical loss or loss of use of both 
arms at levels, or with complications, preventing natural elbow 
action with prostheses in place, has suffered the anatomical 
loss of both legs so near the hip as to prevent the use of prosthetic 
appliances, or has suffered the anatomical loss of one 
arm and one leg so near the shoulder and hip as to prevent 
the use of prosthetic appliances, or has suffered the anatomical 
loss of both eyes, or has suffered blindness without light perception in 
both eyes, the monthly compensation shall be 
$3,948; 
(o) if the veteran, as the result of service-connected disability, has 
suffered disability under conditions which would 
entitle such veteran to two or more of the rates provided in one 
or more subsections (l) through (n) of this section, no condition 
being considered twice in the determination, or if the veteran 
has suffered bilateral deafness (and the hearing impairment in 
either one or both ears is service connected) rated at 60 percent or more 
disabling and the veteran has also suffered service-connected total 
blindness with 20/200 visual acuity or less, 
or if the veteran has suffered service-connected total deafness 
in one ear or bilateral deafness (and the hearing impairment 
in either one or both ears is service connected) rated at 40 per

Sec. 1114 CH. 11-DISABILITY COMPENSATION 

cent or more disabling and the veteran has also suffered service-
connected blindness having only light perception or less, or 
if the veteran has suffered the anatomical loss of both arms so 
near the shoulder as to prevent the use of prosthetic appliances, the 
monthly compensation shall be $4,412; 

(p) in the event the veteranï¿½s service-connected disabilities 
exceed the requirements for any of the rates prescribed in this 
section, the Secretary may allow the next higher rate or an 
intermediate rate, but in no event in excess of $4,412. In the 
event the veteran has suffered service-connected blindness 
with 5/200 visual acuity or less and (1) has also suffered bilateral 
deafness (and the hearing impairment in either one or 
both ears is service connected) rated at no less than 30 percent 
disabling, the Secretary shall allow the next higher rate, or (2) 
has also suffered service-connected total deafness in one ear or 
service-connected anatomical loss or loss of use of one hand or 
one foot, the Secretary shall allow the next intermediate rate, 
but in no event in excess of $4,412. In the event the veteran 
has suffered service-connected blindness, having only light perception 
or less, and has also suffered bilateral deafness (and 
the hearing impairment in either one or both ears is service 
connected) rated at 10 or 20 percent disabling, the Secretary 
shall allow the next intermediate rate, but in no event in excess of 
$4,412. In the event the veteran has suffered the anatomical loss or 
loss of use, or a combination of anatomical loss 
and loss of use, of three extremities, the Secretary shall allow 
the next higher rate or intermediate rate, but in no event in 
excess of $4,412. Any intermediate rate under this subsection 
shall be established at the arithmetic mean, rounded down to 
the nearest dollar, between the two rates concerned; 
ï¿½(q) Repealed. Pub. L. 90-493, Sec. 4(a), Aug. 19, 1968, 82 
Stat. 809.ï¿½ 

(r) Subject to section 5503(c) of this title, if any veteran, 
otherwise entitled to compensation authorized under subsection (o) of 
this section, at the maximum rate authorized 
under subsection (p) of this section, or at the intermediate rate 
authorized between the rates authorized under subsections (n) 
and (o) of this section and at the rate authorized under subsection (k) 
of this section, is in need of regular aid and attendance, then, in 
addition to such compensation- 
(1) the veteran shall be paid a monthly aid and attendance allowance at 
the rate of $1,893; or 
(2) if the veteran, in addition to such need for regular 
aid and attendance, is in need of a higher level of care, 
such veteran shall be paid a monthly aid and attendance 
allowance at the rate of $2,820, in lieu of the allowance authorized in 
clause (1) of this subsection, if the Secretary 
finds that the veteran, in the absence of the provision of 
such care, would require hospitalization, nursing home 
care, or other residential institutional care. 
For the purposes of clause (2) of this subsection, need for a 
higher level of care shall be considered to be need for personal 
health-care services provided on a daily basis in the veteranï¿½s 
home by a person who is licensed to provide such services or 


CH. 11-DISABILITY COMPENSATION Sec. 1114 

who provides such services under the regular supervision of a 
licensed health-care professional. The existence of the need for 
such care shall be determined by a physician employed by the 
Department or, in areas where no such physician is available, 
by a physician carrying out such function under contract or fee 
arrangement based on an examination by such physician. For 
the purposes of section 1134 of this title, such allowance shall 
be considered as additional compensation payable for disability. 

(s) If the veteran has a service-connected disability rated 
as total, and (1) has additional service-connected disability or 
disabilities independently ratable at 60 percent or more, or, (2) 
by reason of such veteranï¿½s service-connected disability or disabilities, 
is permanently housebound, then the monthly compensation shall be $2,829. 
For the purpose of this subsection, 
the requirement of ï¿½ï¿½permanently houseboundï¿½ï¿½ will be considered to have 
been met when the veteran is substantially confined to such veteranï¿½s 
house (ward or clinical areas, if institutionalized) or immediate 
premises due to a service-connected 
disability or disabilities which it is reasonably certain will remain 
throughout such veteranï¿½s lifetime. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1120, Sec. 314; Pub. L. 85-782, 
Sec. 2, Aug. 
27, 1958, 72 Stat. 936; Pub. L. 86-663, Sec. 1, July 14, 1960, 74 Stat. 
528; Pub. L. 87-645, Sec. 1(a), 2(a), Sept. 7, 1962, 76 Stat. 441; 
Pub. L. 88-20, Sec. 1, May 15, 1963, 77 Stat. 17; Pub. L. 88-22, Sec. 1, 
May 15, 1963, 77 Stat. 18; Pub. L. 89- 311, Sec. 1(a), 3(d), (e), Oct. 
31, 1965, 79 Stat. 1154, 1155; Pub. L. 90-77, title IV, Sec. 401, Aug. 
31, 1967, 81 Stat. 190; Pub. L. 90-493, Sec. 1(a), 4(a), Aug. 19, 1968, 
82 Stat. 808, 809; Pub. L. 91-376, Sec. 1(a), Aug. 12, 1970, 84 Stat. 
787; Pub. L. 92-328, title I, Sec. 101(a), June 30, 1972, 86 Stat. 393; 
Pub. L. 93-295, title I, Sec. 101(a), May 31, 1974, 88 Stat. 181; Pub. 
L. 94-71, title I, Sec. 101(a), Aug. 5, 1975, 89 Stat. 395; Pub. L. 
94-433, title I, Sec. 101(a), title IV, Sec. 401(4), (5), 404(6)- 
(8), Sept. 30, 1976, 90 Stat. 1374, 1377, 1378; Pub. L. 95-117, 
title I, Sec. 101(a), Oct. 3, 1977, 91 Stat. 1063; Pub. L. 95-479, 
title I, Sec. 101(a)-(d), Oct. 18, 1978, 92 Stat. 1560, 1561; Pub. L. 
96-128, title I, Sec. 101(a), 104, 105, Nov. 28, 1979, 93 Stat. 982, 
984; Pub. L. 96-385, title I, Sec. 101(a), Oct. 7, 1980, 94 Stat. 1528; 
Pub. L. 97-66, title I, Sec. 101(a), 104, Oct. 17, 1981, 95 Stat. 1026, 
1027; Pub. L. 97-253, title IV, Sec. 404(a), 405(b), Sept. 8, 1982, 96 
Stat. 803; Pub. L. 97-306, title I, Sec. 101(a), 107, 111(a), (b), 
Oct. 14, 1982, 96 Stat. 1429, 1431, 1432; Pub. L. 98- 223, title I, 
Sec. 101(a), 112, Mar. 2, 1984, 98 Stat. 37, 40; Pub. L. 98-543, title I, 
Sec. 101(a), Oct. 24, 1984, 98 Stat. 2735; Pub. L. 99-238, title I, 
Sec. 101(a), Jan. 13, 1986, 99 Stat. 1765; Pub. L. 99-576, title I, 
Sec. 101(a), 109(b), Oct. 28, 1986, 100 Stat. 3250, 3253; Pub. L. 
100-227, title I, Sec. 101(a), Dec. 31, 1987, 101 Stat. 1552; Pub. L. 
100-687, div. B, title XI, Sec. 1101(a), Nov. 18, 1988, 102 Stat. 4123; 
Pub. L. 101-237, title I, Sec. 101(a), Dec. 18, 1989, 103 Stat. 2062; 
Pub. L. 102- 3, Sec. 2(a), Feb. 6, 1991, 105 Stat. 7; Pub. L. 102-40, 
title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered Sec. 
1114 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102- 152, Sec. 
2(a), Nov. 12, 1991, 105 Stat. 985; Pub. L. 103-78, Sec. 1, Aug. 13, 
1993, 107 Stat. 767; Pub. L. 103-140, Sec. 2, Nov. 11, 1993, 107 Stat. 
1485; Pub. L. 105- 98, Sec. 2(a), Nov. 19, 1997, 111 Stat. 2155; 
Pub. L. 106-118, Sec. 2(a), Nov. 30, 1999, 113 Stat. 1601; Pub. L. 
106-419, title III, Sec. 302, Nov. 1, 2000, 114 Stat. 1853; Pub. L. 
107-94, Sec. 2(a), Dec. 21, 2001, 115 Stat. 900; Pub. L. 107-103, title 
II, Sec. 204(b)(1), Dec. 27, 2001, 115 Stat. 990; Pub. L. 107-330, 
title I, Sec. 102, title III, Sec. 309(a), Dec. 6, 2002, 116 Stat. 
2821, 2829; Pub. L. 108-454, title III, Sec. 307(a), Dec. 10, 2004, 
118 Stat. 3612; Pub. L. 109-111, Sec. 2(a), Nov. 22, 2005, 119 Stat. 
2362; Pub. L. 109-233, title V, Sec. 502(1), (2), June 15, 2006, 120 Stat. 
415; Pub. L. 109-444, Sec. 9(a), Dec. 21, 2006, 120 Stat. 3314; Pub. L. 
109-461, title X, Secs. 1005(a), 1006(b), Dec. 22, 2006, 120 Stat. 3466, 
3468; Pub. L. 110-157, title I, Sec. 101, Dec. 26, 2007, 121 Stat. 
1831; Pub. L. 110-324, Sec. 3(a), Sept. 24, 2008, 
122 Stat. 3550.) 

Sec. 1115 CH. 11-DISABILITY COMPENSATION 

ï¿½ 1115. Additional compensation for dependents 

Any veteran entitled to compensation at the rates provided in 
section 1114 of this title, and whose disability is rated not less than 
30 percent, shall be entitled to additional compensation for dependents 
in the following monthly amounts: 

(1) If and while rated totally disabled and- 
(A) has a spouse but no child, $142; 
(B) has a spouse and one or more children, $245 plus 
$71 for each child in excess of one; 
(C) has no spouse but one or more children, $96 plus 
$71 for each child in excess of one; 
(D) has a parent dependent upon such veteran for support, then, in 
addition to the above amounts, $114 for each 
parent so dependent; 
(E) notwithstanding the other provisions of this paragraph, the monthly 
payable amount on account of a spouse 
who is (i) a patient in a nursing home or (ii) blind, or so 
nearly blind or significantly disabled as to need or require 
the regular aid and attendance of another person, shall be 
$271 for a totally disabled veteran and proportionate 
amounts for partially disabled veterans in accordance with 
paragraph (2) of this section; and 
(F) notwithstanding the other provisions of this paragraph, the monthly 
amount payable on account of each 
child who has attained the age of eighteen years and who 
is pursuing a course of instruction at an approved educational 
institution shall be $227 for a totally disabled veteran and 
proportionate amounts for partially disabled veterans in accordance with 
paragraph (2) of this section. 
(2) If and while rated partially disabled, but not less than 
30 percent, in an amount having the same ratio to the amount 
specified in paragraph (1) of this section as the degree of disability 
bears to total disability. The amounts payable under 
this paragraph, if not a multiple of $1, shall be rounded down 
to the nearest dollar. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1121, Sec. 315; Pub. L. 86-499, 
Sec. 1, June 
8, 1960, 74 Stat. 165; Pub. L. 89-137, Sec. 1(b), Aug. 26, 1965, 79 Stat.
576; Pub. L. 89-311, Sec. 2(a), (b), Oct. 31, 1965, 79 Stat. 1154, 1155;
Pub. L. 91-376, Sec. 2, Aug. 12, 1970, 84 Stat. 788; Pub. L. 92-328, 
title I, Sec. 102, June 30, 1972, 86Stat. 394; Pub. L. 93-295, title I, 
Sec. 102, May 31, 1974, 88 Stat. 181; Pub. L. 94- 71, title I, Sec. 102, 
Aug. 5, 1975, 89 Stat. 396; Pub. L. 94-433, title I, Sec. 102, title IV, 
Sec. 404(9)-(11), Sept. 30, 1976, 90 Stat. 1375, 1378; Pub. L. 95-117, 
title I, Sec. 102, Oct. 3, 1977, 91 Stat. 1064; Pub. L. 95-479, title I, 
Sec. 102, Oct. 18, 1978, 92 Stat. 1562; Pub. L. 96-128, title I, Sec. 102, 
Nov. 28, 1979, 93 Stat. 983; Pub. L. 96-385, title I, Sec. 102, Oct. 7, 
1980, 94 Stat. 1529; Pub. L. 97-66, title I, Sec. 102, Oct. 17, 1981, 95 
Stat. 1027; Pub. L. 97-253, title IV, Sec. 404(b), 405(c), Sept. 8, 1982, 96 
Stat. 803; Pub. L. 97-306, title I, Sec. 102, 107, Oct. 14, 1982, 96 
Stat. 1430, 1431; Pub. L. 98-223, title I, Sec. 102, Mar. 2, 1984, 98 Stat. 
38; Pub. L. 98-543, title I, Sec. 102, Oct. 24, 1984, 98 Stat. 2736; Pub. L. 
99-238, title I, Sec. 102, Jan. 13, 1986, 99 Stat. 1766; Pub. L. 99-576, 
title I, Sec. 102, Oct. 28, 1986, 100 Stat. 3251; Pub. L. 100-227, 
title I, Sec. 102, Dec. 31, 1987, 101 Stat. 1553; Pub. L. 100-687, div. 
B, title XI, Sec. 1102, Nov. 18, 1988, 102 Stat. 4123; Pub. L. 101-237, 
title I, Sec. 102, Dec. 18, 1989, 103 Stat. 2063; Pub. L. 102-3, Sec. 
3, Feb. 6, 1991, 105 Stat. 8; renumbered Sec. 1115 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-152, 
Sec. 3, Nov. 12, 1991, 105 Stat. 986; Pub. L. 103-78, Sec. 2, Aug. 13, 
1993, 107 Stat. 768; Pub. L. 103- 140, Sec. 3, Nov. 11, 1993, 107 
Stat. 1486; Pub. L. 105-98, Sec. 3, Nov. 19, 1997, 111 Stat. 2156; 
Pub. L. 106-118, Sec. 3, Nov. 30, 1999, 113 Stat. 1602; Pub. L. 107- 

CH. 11-DISABILITY COMPENSATION Sec. 1116 

94, Sec. 3, Dec. 21, 2001, 115 Stat. 901; Pub. L. 107-330, title III, 
Sec. 309(b), Dec. 6, 2002, 116 Stat. 2830; Pub. L. 108-454, title III, 
Sec. 307(b), Dec. 10, 2004, 118 Stat. 3613; Pub. L. 109-111, Sec. 
2(b), Nov. 22, 2005, 119 Stat. 2363; Pub. L. 109- 233, title V, Sec. 
502(3), June 15, 2006, 120 Stat. 415; Pub. L. 109-444, Sec. 9(b), 
Dec. 21, 2006, 120 Stat. 3314; Pub. L. 109-461, title X, Secs. 
1005(b), 1006(b), Dec. 22, 2006, 120 Stat. 3467, 3468; Pub. L. 
110-324, Sec. 3(b), Sept. 24, 2008, 122 Stat. 
3551.) 

ï¿½ 1116. Presumptions of service connection for diseases associated 
with exposure to certain herbicide agents; 
presumption of exposure for veterans who served 
in the Republic of Vietnam 

(a)(1) For the purposes of section 1110 of this title, and subject 
to section 1113 of this title- 

(A) a disease specified in paragraph (2) of this subsection 
becoming manifest as specified in that paragraph in a veteran 
who, during active military, naval, or air service, served in the 
Republic of Vietnam during the period beginning on January 
9, 1962, and ending on May 7, 1975; and 
(B) each additional disease (if any) that (i) the Secretary 
determines in regulations prescribed under this section warrants a 
presumption of service-connection by reason of having 
positive association with exposure to an herbicide agent, and 
(ii) becomes manifest within the period (if any) prescribed in 
such regulations in a veteran who, during active military, 
naval, or air service, served in the Republic of Vietnam during 
the period beginning on January 9, 1962, and ending on May 
7, 1975, and while so serving was exposed to that herbicide 
agent, 
shall be considered to have been incurred in or aggravated by such 
service, notwithstanding that there is no record of evidence of such 
disease during the period of such service. 

(2) The diseases referred to in paragraph (1)(A) of this subsection are 
the following: (A) Non-Hodgkinï¿½s lymphoma becoming manifest to a degree 
of disability of 10 percent or more. (B) Each soft-tissue sarcoma 
becoming manifest to a degree of disability of 10 percent or more other 
than osteosarcoma, chondrosarcoma, Kaposiï¿½s sarcoma, or mesothelioma. 
(C) Chloracne or another acneform disease consistent with 
chloracne becoming manifest to a degree of disability of 10 percent or
more within one year after the last date on which the 
veteran performed active military, naval, or air service in the 
Republic of Vietnam during the period beginning on January 
9, 1962, and ending on May 7, 1975. 
(D) Hodgkinï¿½s disease becoming manifest to a degree of 
disability of 10 percent or more. 
(E) Porphyria cutanea tarda becoming manifest to a degree 
of disability of 10 percent or more within a year after the last 
date on which the veteran performed active military, naval, or 
air service in the Republic of Vietnam during the period beginning on 
January 9, 1962, and ending on May 7, 1975. 

Sec. 1116 CH. 11-DISABILITY COMPENSATION 

(F) Respiratory cancers (cancer of the lung, bronchus, larynx, or 
trachea) becoming manifest to a degree of disability of 
10 percent or more. 
(G) Multiple myeloma becoming manifest to a degree of 
disability of 10 percent or more. 
(H) Diabetes Mellitus (Type 2). 
(3) For purposes of this section, the term ï¿½ï¿½herbicide agentï¿½ï¿½ 
means a chemical in an herbicide used in support of the United 
States and allied military operations in the Republic of Vietnam 
during the period beginning on January 9, 1962, and ending on 
May 7, 1975. 
(b)(1) Whenever the Secretary determines, on the basis of 
sound medical and scientific evidence, that a positive association 
exists between (A) the exposure of humans to an herbicide agent, 
and (B) the occurrence of a disease in humans, the Secretary shall 
prescribe regulations providing that a presumption of service connection 
is warranted for that disease for the purposes of this section. 

(2) In making determinations for the purpose of this subsection, the 
Secretary shall take into account (A) reports received 
by the Secretary from the National Academy of Sciences under section 3 of 
the Agent Orange Act of 1991, and (B) all other sound 
medical and scientific information and analyses available to the 
Secretary. In evaluating any study for the purpose of making such 
determinations, the Secretary shall take into consideration whether 
the results are statistically significant, are capable of replication, 
and withstand peer review. 
(3) An association between the occurrence of a disease in humans and 
exposure to an herbicide agent shall be considered to be 
positive for the purposes of this section if the credible evidence for 
the association is equal to or outweighs the credible evidence 
against the association. 
(c)(1)(A) Not later than 60 days after the date on which the 
Secretary receives a report from the National Academy of Sciences 
under section 3 of the Agent Orange Act of 1991, the Secretary 
shall determine whether a presumption of service connection is 
warranted for each disease covered by the report. If the Secretary 
determines that such a presumption is warranted, the Secretary, 
not later than 60 days after making the determination, shall issue 
proposed regulations setting forth the Secretaryï¿½s determination. 

(B) If the Secretary determines that a presumption of service 
connection is not warranted, the Secretary, not later than 60 days 
after making the determination, shall publish in the Federal Register a 
notice of that determination. The notice shall include an explanation 
of the scientific basis for that determination. If the disease already 
is included in regulations providing for a presumption 
of service connection, the Secretary, not later than 60 days after 
publication of the notice of a determination that the presumption 
is not warranted, shall issue proposed regulations removing the 
presumption for the disease. 
(2) Not later than 90 days after the date on which the Secretary 
issues any proposed regulations under this subsection, the 
Secretary shall issue final regulations. Such regulations shall be 
effective on the date of issuance. 

CH. 11-DISABILITY COMPENSATION Sec. 1117 

(d) Whenever a disease is removed from regulations prescribed 
under this section- 
(1) a veteran who was awarded compensation for such disease on the 
basis of the presumption provided in subsection (a) 
before the effective date of the removal shall continue to be 
entitled to receive compensation on that basis; and 
(2) a survivor of a veteran who was awarded dependency 
and indemnity compensation for the death of a veteran resulting from 
such disease on the basis of such presumption shall 
continue to be entitled to receive dependency and indemnity 
compensation on such basis. 
(e) Subsections (b) through (d) shall cease to be effective on 
September 30, 2015. 
(f) For purposes of establishing service connection for a disability 
or death resulting from exposure to a herbicide agent, including a 
presumption of service-connection under this section, a 
veteran who, during active military, naval, or air service, served in 
the Republic of Vietnam during the period beginning on January 
9, 1962, and ending on May 7, 1975, shall be presumed to have 
been exposed during such service to an herbicide agent containing 
dioxin or 2,4-dichlorophenoxyacetic acid, and may be presumed to 
have been exposed during such service to any other chemical compound in 
an herbicide agent, unless there is affirmative evidence 
to establish that the veteran was not exposed to any such agent 
during that service. 
(Added Pub. L. 102-4, Sec. 2(a)(1), Feb. 6, 1991, 105 Stat. 11, Sec. 
316; renumbered 
Sec. 1116 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406;
Pub. L. 103-446, title V, Sec. 505, title XII, Sec. 1201(e)(6), Nov. 2, 
1994, 108 Stat. 
4664, 4685; Pub. L. 104-275, title V, Sec. 505(b), Oct. 9, 1996, 110 
Stat. 3342; Pub. 

L. 106-419, title IV, Sec. 404(a)(1), Nov. 1, 2000, 114 Stat. 1864; 
Pub. L. 107-103, 
title II, Sec. 201(a)(1)(A), (b)-(c)(2)(A), (d)(1), Dec. 27, 2001, 
115 Stat. 987, 988.) 
ï¿½ 1117. Compensation for disabilities occurring in Persian 
Gulf War veterans 

(a)(1) The Secretary may pay compensation under this subchapter to a 
Persian Gulf veteran with a qualifying chronic disability that became 
manifest- 

(A) during service on active duty in the Armed Forces in 
the Southwest Asia theater of operations during the Persian 
Gulf War; or 
(B) to a degree of 10 percent or more during the presumptive period 
prescribed under subsection (b). 
(2) For purposes of this subsection, the term ï¿½qualifying chronic 
disabilityï¿½ means a chronic disability resulting from any of the 
following (or any combination of any of the following): 
(A) An undiagnosed illness. 
(B) A medically unexplained chronic multisymptom illness 
(such as chronic fatigue syndrome, fibromyalgia, and irritable 
bowel syndrome) that is defined by a cluster of signs or symptoms. 
(C) Any diagnosed illness that the Secretary determines in 
regulations prescribed under subsection (d) warrants a presumption of 
service-connection. 
(b) The Secretary shall prescribe by regulation the period of 
time following service in the Southwest Asia theater of operations 

Sec. 1117 CH. 11-DISABILITY COMPENSATION 100 

during the Persian Gulf War that the Secretary determines is 
appropriate for presumption of service connection for purposes of this 
section. The Secretaryï¿½s determination of such period of time shall 
be made following a review of any available credible medical or 
scientific evidence and the historical treatment afforded disabilities 
for which manifestation periods have been established and shall 
take into account other pertinent circumstances regarding the 
experiences of veterans of the Persian Gulf War. 

(c)(1) Whenever the Secretary determines under section 1118(c) 
of this title that a presumption of service connection previously 
established under this section is no longer warranted- 

(A) a veteran who was awarded compensation under this 
section on the basis of the presumption shall continue to be entitled 
to receive compensation under this section on that basis; 
and 
(B) a survivor of a veteran who was awarded dependency 
and indemnity compensation for the death of a veteran resulting from 
the disease on the basis of the presumption before 
that date shall continue to be entitled to receive dependency 
and indemnity compensation on that basis. 
(2) This subsection shall cease to be effective on September 30, 
2011. 
(d)(1) The Secretary shall prescribe regulations to carry out 
this section. 

(2) Those regulations shall include the following: 
(A) A description of the period and geographical area or 
areas of military service in connection with which compensation under 
this section may be paid. 
(B) A description of the illnesses for which compensation 
under this section may be paid. 
(C) A description of any relevant medical characteristic 
(such as a latency period) associated with each such illness. 
(e) A disability for which compensation under this subchapter 
is payable shall be considered to be service connected for purposes 
of all other laws of the United States. 
(f) For purposes of this section, the term ï¿½ï¿½Persian Gulf veteranï¿½ï¿½ 
means a veteran who served on active duty in the Armed 
Forces in the Southwest Asia theater of operations during the Persian 
Gulf War. 
(g) For purposes of this section, signs or symptoms that may 
be a manifestation of an undiagnosed illness or a chronic multi-
symptom illness include the following: 
(1) Fatigue. 
(2) Unexplained rashes or other dermatological signs or 
symptoms. 
(3) Headache. 
(4) Muscle pain. 
(5) Joint pain. 
(6) Neurological signs and symptoms. 
(7) Neuropsychological signs or symptoms. 
(8) Signs or symptoms involving the upper or lower respiratory system. 
(9) Sleep disturbances. 
(10) Gastrointestinal signs or symptoms. 

101 CH. 11-DISABILITY COMPENSATION Sec. 1118 

(11) Cardiovascular signs or symptoms. 
(12) Abnormal weight loss. 
(13) Menstrual disorders. 
(h)(1) If the Secretary determines with respect to a medical research 
project sponsored by the Department that it is necessary for 
the conduct of the project that Persian Gulf veterans in receipt of 
compensation under this section or section 1118 of this title 
participate in the project without the possibility of loss of service 
connection under either such section, the Secretary shall provide that 
service connection granted under either such section for disability 
of a veteran who participated in the research project may not be 
terminated. Except as provided in paragraph (2), notwithstanding 
any other provision of law any grant of service-connection protected 
under this subsection shall remain service-connected for purposes 
of all provisions of law under this title. 

(2) Paragraph (1) does not apply in a case in which- 
(A) the original award of compensation or service connection was 
based on fraud; or 
(B) it is clearly shown from military records that the person 
concerned did not have the requisite service or character 
of discharge. 
(3) The Secretary shall publish in the Federal Register a list 
of medical research projects sponsored by the Department for 
which service connection granted under this section or section 1118 
of this title may not be terminated pursuant to paragraph (1). 
(Added Pub. L. 103-446, title I, Sec. 106(a)(1), Nov. 2, 1994, 108 
Stat. 4650; amended Pub. L. 105-277, div. C, title XVI, Sec. 1602(c), 
Oct. 21, 1998, 112 Stat. 2681- 
744; Pub. L. 107-103, title II, Secs. 202(a), (b)(1), (d)(1), 203(a), 
Dec. 27, 2001, 115 
Stat. 988, 989; Pub. L. 109-233, title V, Sec. 503(1), June 15, 
2006, 120 Stat. 415.) 

ï¿½ 1118. Presumptions of service connection for illnesses associated 
with service in the Persian Gulf duringthe Persian Gulf War 

(a)(1) For purposes of section 1110 of this title, and subject to 
section 1113 of this title, each illness, if any, described in paragraph 
(2) shall be considered to have been incurred in or aggravated by 
service referred to in that paragraph, notwithstanding 
that there is no record of evidence of such illness during the period 
of such service. 

(2) An illness referred to in paragraph (1) is any diagnosed or 
undiagnosed illness that- 
(A) the Secretary determines in regulations prescribed 
under this section to warrant a presumption of service connection by 
reason of having a positive association with exposure 
to a biological, chemical, or other toxic agent, environmental or 
wartime hazard, or preventive medicine or vaccine known or 
presumed to be associated with service in the Armed Forces in 
the Southwest Asia theater of operations during the Persian 
Gulf War; and 
(B) becomes manifest within the period, if any, prescribed 
in such regulations in a veteran who served on active duty in 
that theater of operations during that war and by reason of 
such service was exposed to such agent, hazard, or medicine or 
vaccine. 

Sec. 1118 CH. 11-DISABILITY COMPENSATION 102 

(3) For purposes of this subsection, a veteran who served on active 
duty in the Southwest Asia theater of operations during the 
Persian Gulf War and has an illness described in paragraph (2) 
shall be presumed to have been exposed by reason of such service 
to the agent, hazard, or medicine or vaccine associated with the 
illness in the regulations prescribed under this section unless there 
is conclusive evidence to establish that the veteran was not exposed 
to the agent, hazard, or medicine or vaccine by reason of such service. 
(4) For purposes of this section, signs or symptoms that may 
be a manifestation of an undiagnosed illness include the signs and 
symptoms listed in section 1117(g) of this title. 
(b)(1)(A) Whenever the Secretary makes a determination described in 
subparagraph (B), the Secretary shall prescribe regulations providing 
that a presumption of service connection is warranted for the illness 
covered by that determination for purposes 
of this section. 

(B) A determination referred to in subparagraph (A) is a determination 
based on sound medical and scientific evidence that a 
positive association exists between- 
(i) the exposure of humans or animals to a biological, 
chemical, or other toxic agent, environmental or wartime hazard, or 
preventive medicine or vaccine known or presumed to 
be associated with service in the Southwest Asia theater of operations 
during the Persian Gulf War; and 
(ii) the occurrence of a diagnosed or undiagnosed illness in 
humans or animals. 
(2)(A) In making determinations for purposes of paragraph (1), 
the Secretary shall take into account- 

(i) the reports submitted to the Secretary by the National 
Academy of Sciences under section 1603 of the Persian Gulf 
War Veterans Act of 1998; and 
(ii) all other sound medical and scientific information and 
analyses available to the Secretary. 
(B) In evaluating any report, information, or analysis for purposes of 
making such determinations, the Secretary shall take into 
consideration whether the results are statistically significant, are 
capable of replication, and withstand peer review. 
(3) An association between the occurrence of an illness in humans or 
animals and exposure to an agent, hazard, or medicine or 
vaccine shall be considered to be positive for purposes of this 
subsection if the credible evidence for the association is equal to or 
outweighs the credible evidence against the association. 
(c)(1) Not later than 60 days after the date on which the Secretary 
receives a report from the National Academy of Sciences 
under section 1603 of the Persian Gulf War Veterans Act of 1998, 
the Secretary shall determine whether or not a presumption of 
service connection is warranted for each illness, if any, covered by 
the report. 

(2) If the Secretary determines under this subsection that a 
presumption of service connection is warranted, the Secretary 
shall, not later than 60 days after making the determination, issue 
proposed regulations setting forth the Secretaryï¿½s determination. 

103 CH. 11-DISABILITY COMPENSATION Sec. 1122 

(3)(A) If the Secretary determines under this subsection that a 
presumption of service connection is not warranted, the Secretary 
shall, not later than 60 days after making the determination, publish 
in the Federal Register a notice of the determination. The notice shall 
include an explanation of the scientific basis for the determination. 

(B) If an illness already presumed to be service connected 
under this section is subject to a determination under subparagraph 
(A), the Secretary shall, not later than 60 days after publication of 
the notice under that subparagraph, issue proposed regulations removing 
the presumption of service connection for the illness. 
(4) Not later than 90 days after the date on which the Secretary issues 
any proposed regulations under this subsection, the 
Secretary shall issue final regulations. Such regulations shall be
effective on the date of issuance. 
(d) Whenever the presumption of service connection for an illness under 
this section is removed under subsection (c)- 
(1) a veteran who was awarded compensation for the illness on the basis 
of the presumption before the effective date 
of the removal of the presumption shall continue to be entitled 
to receive compensation on that basis; and 
(2) a survivor of a veteran who was awarded dependency 
and indemnity compensation for the death of a veteran resulting from 
the illness on the basis of the presumption before that 
date shall continue to be entitled to receive dependency and indemnity 
compensation on that basis. 
(e) Subsections (b) through (d) shall cease to be effective on 
September 30, 2011. 
(Added Pub. L. 105-277, div. C, title XVI, Sec. 1602(a)(1), Oct. 21, 
1998, 112 Stat. 
2681-742; amended Pub. L. 107-103, title II, Sec. 202(b)(2), (d)(1), 
Dec. 27, 2001, 
115 Stat. 989.) 

SUBCHAPTER III-WARTIME DEATH COMPENSATION 

ï¿½ 1121. Basic entitlement 

The surviving spouse, child or children, and dependent parent 
or parents of any veteran who died before January 1, 1957 as the 
result of injury or disease incurred in or aggravated by active 
military, naval, or air service, in line of duty, during a period of war, 
shall be entitled to receive compensation at the monthly rates 
specified in section 1122 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1122, Sec. 321; Pub. L. 
92-197, Sec. 6, Dec. 
15, 1971, 85 Stat. 662; Pub. L. 94-433, title IV, Sec. 404(12), Sept. 
30, 1976, 90 Stat. 1378; renumbered Sec. 1121 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 1122. Rates of wartime death compensation 

(a) The monthly rates of death compensation shall be as follows: 
(1) Surviving spouse but no child, $87; 
(2) Surviving spouse with one child, $121 (with $29 for 
each additional child); 
(3) No surviving spouse but one child, $67; 

Sec. 1131 CH. 11-DISABILITY COMPENSATION 104 

(4) No surviving spouse but two children, $94 (equally divided); 
(5) No surviving spouse but three children, $122 (equally 
divided) (with $23 for each additional child, total amount to be 
equally divided); 
(6) Dependent parent, $75; 
(7) Both dependent parents, $40 each. 
(b) The monthly rate of death compensation payable to a surviving 
spouse or dependent parent under subsection (a) of this section shall 
be increased by $79 if the payee is (1) a patient in a 
nursing home or (2) blind, or so nearly blind or significantly 
disabled as to need or require the regular aid and attendance of a
nother person. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1122, Sec. 322; Pub. L. 
91-96, Sec. 7, Oct. 
27, 1969, 83 Stat. 146; Pub. L. 91-588, Sec. 3(a), Dec. 24, 1970, 
84 Stat. 1583; Pub. 

L. 92-197, Sec. 9, Dec. 15, 1971, 85 Stat. 662; Pub. L. 93-295, 
title II, Sec. 204, 
May 31, 1974, 88 Stat. 183; Pub. L. 94-169, title II, Sec. 202, 
Dec. 23, 1975, 89 Stat. 
1021; Pub. L. 94-432, title IV, Sec. 401, Sept. 30, 1976, 90 Stat. 
1372; Pub. L. 94- 
433, title IV, Sec. 404(13)-(17), Sept. 30, 1976, 90 Stat. 1378, 
1379; Pub. L. 95-204, 
title III, Sec. 301, Dec. 2, 1977, 91 Stat. 1459; renumbered Sec. 
1122, Pub. L. 102- 
83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 109-233, title 
V, Sec. 502(3), June 
15, 2006, 120 Stat. 415.) 
SUBCHAPTER IV-PEACETIME DISABILITY COMPENSATION 

ï¿½ 1131. Basic entitlement 

For disability resulting from personal injury suffered or disease 
contracted in line of duty, or for aggravation of a preexisting injury 
suffered or disease contracted in line of duty, in the active military, 
naval, or air service, during other than a period of war, the United 
States will pay to any veteran thus disabled and who was discharged or 
released under conditions other than dishonorable from 
the period of service in which said injury or disease was incurred, 
or preexisting injury or disease was aggravated, compensation as 
provided in this subchapter, but no compensation shall be paid if 
the disability is a result of the veteranï¿½s own willful misconduct or 
abuse of alcohol or drugs. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1122, Sec. 331; Pub. L. 
101-508, title VIII, 
Sec. 8052(a)(3), Nov. 5, 1990, 104 Stat. 1388-351; renumbered Sec. 
1131, Pub. L. 
102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-178, title
VIII, Sec. 
8202(b), June 9, 1998, 112 Stat. 492; Pub. L. 105-206, title IX, Sec. 
9014(a), July 
22, 1998, 112 Stat. 865.) 

ï¿½ 1132. Presumption of sound condition 

For the purposes of section 1131 of this title, every person employed 
in the active military, naval, or air service for six months 
or more shall be taken to have been in sound condition when examined, 
accepted and enrolled for service, except as to defects, infirmities, 
or disorders noted at the time of the examination, acceptance and 
enrollment, or where evidence or medical judgment is 
such as to warrant a finding that the disease or injury existed before 
acceptance and enrollment. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1122, Sec. 332; renumbered 
Sec. 1132 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 


105 CH. 11-DISABILITY COMPENSATION Sec. 1137 

ï¿½ 1133. Presumptions relating to certain diseases 

(a) For the purposes of section 1131 of this title, and subject 
to the provisions of subsections (b) and (c) of this section, any 
veteran who served for six months or more and contracts a tropical 
disease or a resultant disorder or disease originating because of 
therapy administered in connection with a tropical disease, or as 
a preventative thereof, shall be deemed to have incurred such disability 
in the active military, naval, or air service when it is shown 
to exist within one year after separation from active service, or at 
a time when standard and accepted treatises indicate that the incubation 
period thereof commenced during active service. 
(b) Service-connection shall not be granted pursuant to subsection (a), in 
any case where the disease or disorder is shown by 
clear and unmistakable evidence to have had its inception before 
or after active military, naval, or air service. 
(c) Nothing in this section shall be construed to prevent the 
granting of service-connection for any disease or disorder otherwise 
shown by sound judgment to have been incurred in or aggravated 
by active military, naval, or air service. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1123, Sec. 333; renumbered Sec. 
1133 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1134. Rates of peacetime disability compensation 

For the purposes of section 1131 of this title, the compensation 
payable for the disability shall be that specified in section 1114 of 
this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1123, Sec. 334; Pub. L. 92-328, 
title I, Sec. 
108(a), June 30, 1972, 86 Stat. 396; renumbered Sec. 1134 and amended 
Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1135. Additional compensation for dependents 

Any veteran entitled to compensation at the rates provided in 
section 1134 of this title, and whose disability is rated not less than 
30 percent, shall be entitled to additional monthly compensation 
for dependents as provided in section 1115 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1123, Sec. 335; Pub. L. 92-328, 
title I, Sec. 
108(b), June 30, 1972, 86 Stat. 396; Pub. L. 98-543, title I, Sec. 112(a),
Oct. 24, 
1984, 98 Stat. 2740; renumbered Sec. 1135 and amended Pub. L. 102-83, 
Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ï¿½ 1136. Vacantï¿½ 

ï¿½ 1137. Wartime presumptions for certain veterans 

For the purposes of this subchapter and subchapter V of this 
chapter and notwithstanding the provisions of sections 1132 and 
1133 of this subchapter, the provisions of sections 1111, 1112, and 
1113 of this chapter shall be applicable in the case of any veteran 
who served in the active military, naval, or air service after December 
31, 1946. 

(Added Pub. L. 89-358, Sec. 7(a), Mar. 3, 1966, 80 Stat. 27, Sec. 337; 
amended Pub. 

L. 93-295, title II, Sec. 205, May 31, 1974, 88 Stat. 183; renumbered 
Sec. 1137 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

Sec. 1141 CH. 11-DISABILITY COMPENSATION 106 

SUBCHAPTER V-PEACETIME DEATH COMPENSATION 

ï¿½ 1141. Basic entitlement 

The surviving spouse, child or children, and dependent parent 
or parents of any veteran who died before January 1, 1957, as the 
result of injury or disease incurred in or aggravated by active 
military, naval, or air service, in line of duty, during other than a 
period of war, shall be entitled to receive compensation as hereinafter 
provided in this subchapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1123, Sec. 341; Pub. L. 
92-197, Sec. 6, Dec.
15, 1971, 85 Stat. 662; Pub. L. 94-433, title IV, Sec. 404(18), Sept. 
30, 1976, 90 Stat. 
1379; renumbered Sec. 1141, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 1142. Rates of peacetime death compensation 

For the purposes of section 1141 of this title, the monthly rates 
of death compensation payable shall be those specified in section 
1122 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1124, Sec. 342; Pub. L. 
93-295, title II, Sec. 
206(a), May 31, 1974, 88 Stat. 183; renumbered Sec. 1142 and amended 
Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ï¿½ 1143. Vacantï¿½ 

SUBCHAPTER VI-GENERAL COMPENSATION PROVISIONS 

ï¿½ 1151. Benefits for persons disabled by treatment or vocational 
rehabilitation 

(a) Compensation under this chapter and dependency and indemnity 
compensation under chapter 13 of this title shall be 
awarded for a qualifying additional disability or a qualifying death 
of a veteran in the same manner as if such additional disability or 
death were service-connected. For purposes of this section, a 
disability or death is a qualifying additional disability or qualifying 
death if the disability or death was not the result of the veteranï¿½s 
willful misconduct and- 
(1) the disability or death was caused by hospital care, 
medical or surgical treatment, or examination furnished the 
veteran under any law administered by the Secretary, either 
by a Department employee or in a Department facility as defined in 
section 1701(3)(A) of this title, and the proximate 
cause of the disability or death was- 
(A) carelessness, negligence, lack of proper skill, error 
in judgment, or similar instance of fault on the part of the 
Department in furnishing the hospital care, medical or 
surgical treatment, or examination; or 
(B) an event not reasonably foreseeable; or 
(2) the disability or death was proximately caused (A) by 
the provision of training and rehabilitation services by the Secretary 
(including by a service-provider used by the Secretary 
for such purpose under section 3115 of this title) as part of an 
approved rehabilitation program under chapter 31 of this title, 
or (B) by participation in a program (known as a ï¿½ï¿½compensated 
work therapy programï¿½ï¿½) under section 1718 of this title. 
(b)(1) Where an individual is, on or after December 1, 1962, 
awarded a judgment against the United States in a civil action 


107 CH. 11-DISABILITY COMPENSATION Sec. 1153 

brought pursuant to section 1346(b) of title 28 or, on or after 
December 1, 1962, enters into a settlement or compromise under section 
2672 or 2677 of title 28 by reason of a disability or death treated 
pursuant to this section as if it were service-connected, then (except 
as otherwise provided in paragraph (2)) no benefits shall be 
paid to such individual for any month beginning after the date 
such judgment, settlement, or compromise on account of such disability 
or death becomes final until the aggregate amount of benefits which 
would be paid but for this subsection equals the total 
amount included in such judgment, settlement, or compromise. 

(2) In the case of a judgment, settlement, or compromise covered by 
paragraph (1) that becomes final on or after the date of the 
enactment of this paragraph and that includes an amount that is 
specifically designated for a purpose for which benefits are provided 
under chapter 21 or 39 of this title (hereinafter in this paragraph 
referred to as the ï¿½ï¿½offset amountï¿½ï¿½), if such judgment, settlement, 
or compromise becomes final before the date of the award of 
benefits under chapter 21 or 39 for the purpose for which the offset 
amount was specifically designated- 
(A) the amount of such award shall be reduced by the offset amount; and 
(B) if the offset amount is greater than the amount of such 
award, the excess amount received pursuant to the judgment, 
settlement or compromise, shall be offset against benefits otherwise 
payable under this chapter. 
(c) A qualifying additional disability under this section shall be 
treated in the same manner as if it were a service-connected disability 
for purposes of the following provisions of this title: 
(1) Chapter 21, relating to specially adapted housing. 
(2) Chapter 39, relating to automobiles and adaptive 
equipment. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1124, Sec. 351; Pub. L. 
87-825, Sec. 3, Oct. 15, 1962, 76 Stat. 950; Pub. L. 91-24, Sec. 3, 
June 11, 1969, 83 Stat. 33; Pub. L. 94-433, title IV, Sec. 404(19), 
Sept. 30, 1976, 90 Stat. 1379; Pub. L. 98-223, title II, Sec. 213(1), 
Mar. 2, 1984, 98 Stat. 46; renumbered Sec. 1151 and amended Pub. 

L. 102-83, Sec. 4(a)(1), 5(a), Aug. 6, 1991, 105 Stat. 403, 406; 
Pub. L. 104-204, title IV, Sec. 422(a), Sept. 26, 1996, 110 Stat. 
2926; Pub. L. 106-419, title III, Sec. 303, Nov. 1, 2000, 114 Stat. 
1853; Pub. L. 108-454, title III, Sec. 304(a), (c), Dec. 10, 
2004, 118 Stat. 3611.) 
ï¿½ 1152. Persons heretofore having a compensable status 

The death and disability benefits of this chapter shall,
notwithstanding the service requirements thereof, be granted to 
persons 
heretofore recognized by law as having a compensable status, 
including persons whose claims are based on war or peacetime service 
rendered before April 21, 1898. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1124, Sec. 352; renumbered 
Sec. 1152, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1153. Aggravation 

A preexisting injury or disease will be considered to have been 
aggravated by active military, naval, or air service, where there is 
an increase in disability during such service, unless there is a 
specific finding that the increase in disability is due to the natural 
progress of the disease. 


Sec. 1154 CH. 11-DISABILITY COMPENSATION 108 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1124, Sec. 353; renumbered 
Sec. 1153, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1154. Consideration to be accorded time, place, and circumstances of 
service 

(a) The Secretary shall include in the regulations pertaining to 
service-connection of disabilities (1) additional provisions in effect 
requiring that in each case where a veteran is seeking service-
connection for any disability due consideration shall be given to the 
places, types, and circumstances of such veteranï¿½s service as shown 
by such veteranï¿½s service record, the official history of each 
organization in which such veteran served, such veteranï¿½s medical 
records, and all pertinent medical and lay evidence, and (2) the 
provisions required by section 5 of the Veteransï¿½ Dioxin and Radiation 
Exposure Compensation Standards Act (Public Law 98-542; 
98 Stat. 2727). 
(b) In the case of any veteran who engaged in combat with the 
enemy in active service with a military, naval, or air organization 
of the United States during a period of war, campaign, or expedition, 
the Secretary shall accept as sufficient proof of service-connection of 
any disease or injury alleged to have been incurred in or aggravated by 
such service satisfactory lay or other evidence of service incurrence 
or aggravation of such injury or disease, if consistent 
with the circumstances, conditions, or hardships of such service, 
notwithstanding the fact that there is no official record of such 
incurrence or aggravation in such service, and, to that end, shall 
resolve every reasonable doubt in favor of the veteran. Service-
connection of such injury or disease may be rebutted by clear and 
convincing evidence to the contrary. The reasons for granting or 
denying service-connection in each case shall be recorded in full. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1124, Sec. 354; Pub. L. 
94-433, title IV, 
Sec. 404(20), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 98-542, Sec. 
4, Oct. 24, 1984, 
98 Stat. 2727; Pub. L. 102-54, Sec. 14(b)(1), June 13, 1991, 105 
Stat. 282; renumbered Sec. 1154 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 
105 Stat. 404-406.) 

ï¿½ 1155. Authority for schedule for rating disabilities 

The Secretary shall adopt and apply a schedule of ratings of 
reductions in earning capacity from specific injuries or combination 
of injuries. The ratings shall be based, as far as practicable, upon 
the average impairments of earning capacity resulting from such 
injuries in civil occupations. The schedule shall be constructed so 
as to provide ten grades of disability and no more, upon which payments 
of compensation shall be based, namely, 10 percent, 20 percent, 
30 percent, 40 percent, 50 percent, 60 percent, 70 percent, 80 
percent, 90 percent, and total, 100 percent. The Secretary shall 
from time to time readjust this schedule of ratings in accordance 
with experience. However, in no event shall such a readjustment 
in the rating schedule cause a veteranï¿½s disability rating in effect 
on the effective date of the readjustment to be reduced unless an 
improvement in the veteranï¿½s disability is shown to have occurred. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1125, Sec. 355; Pub. L. 
98-223, title I, Sec. 
101(c), Mar. 2, 1984, 98 Stat. 38; renumbered Sec. 1155 and 
amended Pub. L. 102- 
83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406; 
Pub. L. 102-86, title 
I, Sec. 103(a), Aug. 14, 1991, 105 Stat. 414.) 


109 CH. 11-DISABILITY COMPENSATION Sec. 1156 

ï¿½ 1156. Temporary disability ratings 

(a) ASSIGNMENT OF TEMPORARY RATINGS.-(1) For the purpose 
of providing disability compensation under this chapter to 
veterans, 
the Secretary shall assign a temporary disability rating to a veteran 
as follows: 
(A) To a veteran who- 
(i) was discharged or released from active duty not 
more than 365 days before the date such veteran submits 
a claim for disability compensation under this chapter; 
(ii) has one or more disabilities for which a rating of 
total is not immediately assignable- 
(I) under the regular provisions of the schedule of 
ratings; or 
(II) on the basis of individual unemployability; 
and 
(iii) has one or more- 
(I) severe disabilities that result in substantially 
gainful employment not being feasible or advisable; or 
(II) healed, unhealed, or incompletely healed 
wounds or injuries that make material impairment of 
employability likely. 
(B) To a veteran who, as a result of a highly stressful in-
service event, has a mental disorder that is severe enough to 
bring about the veteranï¿½s discharge or release from active duty. 
(C) To a veteran who has a service-connected disability 
that requires hospital treatment or observation in a Department of 
Veterans Affairs or approved hospital for a period in 
excess of 21 days. 
(D) To a veteran who has a service-connected disability 
that has required convalescent care or treatment at hospital 
discharge (regular discharge or release to non-bed care) or outpatient 
release that meets the requirements of regulations prescribed by the 
Secretary. 
(2) With respect to a veteran described in paragraph (1)(A), the 
Secretary may assign a temporary disability rating to such veteran 
regardless of whether such veteran has obtained a medical examination 
or a medical opinion concerning such veteranï¿½s disability. 
(3) With respect to a veteran described in paragraph (1)(B), the 
Secretary shall schedule a medical examination for such veteran 
not later than six months after the separation or discharge of such 
veteran from active duty. 
(b) TERMINATION OF TEMPORARY DISABILITY RATINGS.-(1) Except as provided 
in paragraph (2), a temporary disability rating assigned to a veteran 
under this section shall remain in effect as follows: 
(A) For a veteran who is assigned a temporary disability 
rating under subsection (a)(1)(A), until the later of the date 
that is- 
(i) 12 months after the date of discharge or release 
from active duty; or 
(ii) provided in regulations prescribed by the Secretary. 

Sec. 1157 CH. 11-DISABILITY COMPENSATION 110 

(B) For a veteran who is assigned a temporary disability 
rating under subsection (a)(1)(B), until the date on which a rating 
decision is issued to such veteran following the medical examination 
scheduled under subsection (a)(3). 
(C) For a veteran who is assigned a temporary disability 
rating under subsection (a)(1)(C), until the later of the date 
that is- 
(i) the last day of the month in which the veteran is 
discharged from the hospital as described in such subsection (a)(1)(C); 
or 
(ii) provided in regulations prescribed by the Secretary. 
(D) For a veteran who is assigned a temporary disability 
rating under subsection (a)(1)(D), until the date that is provided in 
regulations prescribed by the Secretary. 
(2) The Secretary may extend a temporary disability rating assigned to a 
veteran under subsection (a) beyond the applicable termination date 
under paragraph (1) if the Secretary determines that 
such an extension is appropriate. 
(c) REGULATIONS.-The Secretary shall prescribe regulations to 
carry out the provisions of this section. 
(d) CONSTRUCTION.-Nothing in this section shall be construed 
to preclude the Secretary from providing a temporary disability rating 
under an authority other than this section. 
(Added Pub. L. 110-389, title II, Sec. 211(a), Oct. 10, 2008, 122 Stat. 
4149.) 

ï¿½ 1157. Combination of certain ratings 

The Secretary shall provide for the combination of ratings and 
pay compensation at the rates prescribed in subchapter II of this 
chapter to those veterans who served during a period of war and 
during any other time, who have suffered disability in line of duty 
in each period of service. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1125, Sec. 357; renumbered 
Sec. 1157 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1158. Disappearance 

Where a veteran receiving compensation under this chapter 
disappears, the Secretary may pay the compensation otherwise 
payable to the veteran to such veteranï¿½s spouse, children, and parents. 
Payments made to such spouse, child, or parent under the 
preceding sentence shall not exceed the amounts payable to each 
if the veteran had died from service-connected disability. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1125, Sec. 358; Pub. L. 86-212, 
Sept. 1, 1959, 73 Stat. 436; Pub. L. 94-433, title IV, Sec. 404(21), 
Sept. 30, 1976, 90 Stat. 1379; renumbered Sec. 1158 and amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), 
Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1159. Protection of service connection 

Service connection for any disability or death granted under 
this title which has been in force for ten or more years shall not 
be severed on or after January 1, 1962, except upon a showing that 
the original grant of service connection was based on fraud or it is 
clearly shown from military records that the person concerned did 
not have the requisite service or character of discharge. The men


111 CH. 11-DISABILITY COMPENSATION Sec. 1160 

tioned period shall be computed from the date determined by the 
Secretary as the date on which the status commenced for rating 
purposes. 

(Added Pub. L. 86-501, Sec. 1, June 10, 1960, 74 Stat. 195, Sec. 359; 
amended Pub. 

L. 87-825, Sec. 6, Oct. 15, 1962, 76 Stat. 950; renumbered Sec. 1159 and 
amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.) 
ï¿½ 1160. Special consideration for certain cases of loss of 
paired organs or extremities 

(a) Where a veteran has suffered- 
(1) impairment of vision in one eye as a result of service-
connected disability and impairment of vision in the other eye 
as a result of non-service-connected disability not the result of 
the veteranï¿½s own willful misconduct and- 
(A) the impairment of vision in each eye is rated at a 
visual acuity of 20/200 or less; or 
(B) the peripheral field of vision for each eye is 20 degrees or less; 
(2) the loss or loss of use of one kidney as a result of service-
connected disability and involvement of the other kidney as 
a result of non-service-connected disability not the result of the 
veteranï¿½s own willful misconduct; 
(3) deafness compensable to a degree of 10 percent or more 
in one ear as a result of service-connected disability and deafness in 
the other ear as the result of non-service-connected disability not the 
result of the veteranï¿½s own willful misconduct; 
(4) the loss or loss of use of one hand or one foot as a result of 
service-connected disability and the loss or loss of use 
of the other hand or foot as a result of non-service-connected 
disability not the result of the veteranï¿½s own willful misconduct; or 
(5) permanent service-connected disability of one lung, 
rated 50 percent or more disabling, in combination with a non-
service-connected disability of the other lung that is not the result 
of the veteranï¿½s own willful misconduct, 
the Secretary shall assign and pay to the veteran the applicable 
rate of compensation under this chapter as if the combination of 
disabilities were the result of service-connected disability. 

(b) If a veteran described in subsection (a) of this section receives 
any money or property of value pursuant to an award in a 
judicial proceeding based upon, or a settlement or compromise of, 
any cause of action for damages for the non-service-connected disability 
described in such subsection, the increase in the rate of 
compensation otherwise payable under this section shall not be 
paid for any month following a month in which any such money or 
property is received until such time as the total of the amount of 
such increase that would otherwise have been payable equals the 
total of the amount of any such money received and the fair market 
value of any such property received. 
(Added Pub. L. 87-610, Sec. 1, Aug. 28, 1962, 76 Stat. 406, Sec. 360; 
amended Pub. 

L. 89-311, Sec. 3(a), (b), Oct. 31, 1965, 79 Stat. 1155; Pub. L. 94-433, 
title IV, Sec. 404(22), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 98-160, 
title VII, Sec. 702(3), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 99-576, 
title I, Sec. 109(a)(1), Oct. 28, 1986, 100 Stat. 3253; renumbered Sec. 
1160 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 107-330, title I, Sec. 103, Dec. 6, 

Sec. 1161 CH. 11-DISABILITY COMPENSATION 112 

2002, 116 Stat. 2822; Pub. L. 110-157, title I, Sec. 102, Dec. 26, 
2007, 121 Stat. 
1831.) 

ï¿½ 1161. Payment of disability compensation in disability severance cases 

The deduction of disability severance pay from disability compensation, 
to the extent required by section 1212(d) of title 10, 
shall be made at a monthly rate not in excess of the rate of 
compensation to which the former member would be entitled based on 
the degree of such former memberï¿½s disability as determined on the 
initial Department rating. 

(Added Pub. L. 91-241, May 7, 1970, 84 Stat. 203, Sec. 361; amended 
Pub. L. 94- 
433, title IV, Sec. 404(23), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 
98-160, title VII, 
Sec. 702(4), Nov. 21, 1983, 97 Stat. 1009; renumbered Sec. 1161 and 
amended Pub. L. 102-83, Sec. 4(a)(3), (4), 5(a), Aug. 6, 1991, 105 
Stat. 404, 406; Pub. L. 110-181, div. A, title XVI, Sec. 1646(c), 
as added Pub. L. 110-389, title I, Sec. 103(a)(2), Oct. 10, 2008, 
122 Stat. 4148.) 
ï¿½ 1162. Clothing allowance 

The Secretary under regulations which the Secretary shall prescribe, 
shall pay a clothing allowance of $677 per year to each veteran who- 

(1) because of a service-connected disability, wears or uses 
a prosthetic or orthopedic appliance (including a wheelchair) 
which the Secretary determines tends to wear out or tear the 
clothing of the veteran; or 
(2) uses medication which (A) a physician has prescribed 
for a skin condition which is due to a service-connected disability,
and (B) the Secretary determines causes irreparable 
damage to the veteranï¿½s outergarments. 
(Added Pub. L. 92-328, title I, Sec. 103(a), June 30, 1972, 86 Stat. 
394, Sec. 362; 
amended Pub. L. 94-71, title I, Sec. 103, Aug. 5, 1975, 89 Stat. 
396; Pub. L. 94-433, title III, Sec. 301, title IV, Sec. 404(24), 
Sept. 30, 1976, 90 Stat. 1377, 1379; Pub. L. 95-117, title III,
Sec. 301, Oct. 3, 1977, 91 Stat. 1065; Pub. L. 95-479, title 
I, Sec. 103, Oct. 18, 1978, 92 Stat. 1562; Pub. L. 96-128, title I,
Sec. 103, Nov. 28, 1979, 93 Stat. 984; Pub. L. 96-385, title I, 
Sec. 103, Oct. 7, 1980, 94 Stat. 1529; Pub. L. 97-66, title I, Sec. 
103, Oct. 17, 1981, 95 Stat. 1027; Pub. L. 97-253, title IV, Sec. 
405(d), Sept. 8, 1982, 96 Stat. 804; Pub. L. 97-306, title I, Sec. 103, 
107, Oct. 14, 1982, 96 Stat. 1430, 1431; Pub. L. 98-223, title I, 
Sec. 103, Mar. 2, 1984, 98 Stat. 38; Pub. L. 98-543, title I, Sec. 
103, Oct. 24, 1984, 98 Stat. 2736; Pub. L. 99-238, title I, Sec. 103, 
Jan. 13, 1986, 99 Stat. 1766; Pub. L. 99-576, title I, Sec. 103, Oct. 
28, 1986, 100 Stat. 3251; Pub. L. 100-227, title I, Sec. 103, Dec. 
31, 1987, 101 Stat. 1553; Pub. L. 100-687, div. B, title XI, Sec. 
1103, Nov. 18, 1988, 102 Stat. 4124; Pub. L. 101-237, title I, Sec. 
103, 112, Dec. 18, 1989, 103 Stat. 2063, 2065; Pub. L. 102-3, Sec. 
4, Feb. 6, 1991, 105 Stat. 8; renumbered Sec. 1162, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-152, Sec. 4, 
Nov. 12, 1991, 105 Stat. 986; Pub. L. 103-78, Sec. 3, Aug. 13, 1993, 
107 Stat. 768; Pub. L. 103- 140, Sec. 4, Nov. 11, 1993, 107 Stat. 
1486; Pub. L. 105-98, Sec. 4, Nov. 19, 1997, 111 Stat. 2156; Pub. 
L. 106-118, Sec. 4, Nov. 30, 1999, 113 Stat. 1602; Pub. L. 107-94, 
Sec. 4, Dec. 21, 2001, 115 Stat. 901; Pub. L. 107-330, title III, 
Sec. 309(c), Dec. 6, 2002, 116 Stat. 2830; Pub. L. 108-454, title III, 
Sec. 307(c), Dec. 10, 2004, 118 Stat. 3613; Pub. L. 109-111, Sec. 2(c), 
Nov. 22, 2005, 119 Stat. 2363; Pub. L. 109-444, Sec. 9(c), Dec. 21, 
2006, 120 Stat. 3315; Pub. L. 109-461, title X, Secs. 1005(c), 1006(b), 
Dec. 22, 2006, 120 Stat. 3467, 3468; Pub. L. 110-324, Sec. 3(c), 
Sept. 24, 2008, 122 Stat. 3551.) 

ï¿½ 1163. Trial work periods and vocational rehabilitation for 
certain veterans with total disability ratings 

(a)(1) The disability rating of a qualified veteran who begins to 
engage in a substantially gainful occupation after January 31, 


113 CH. 11-DISABILITY COMPENSATION Sec. 1163 

1985, may not be reduced on the basis of the veteran having secured 
and followed a substantially gainful occupation unless the 
veteran maintains such an occupation for a period of 12 consecutive 
months. 

(2) For purposes of this section, the term ï¿½ï¿½qualified veteranï¿½ï¿½ 
means a veteran who has a service-connected disability, or service-
connected disabilities, not rated as total but who has been awarded 
a rating of total disability by reason of inability to secure or follow 
a substantially gainful occupation as a result of such disability or 
disabilities. 
(b) The Secretary shall make counseling services described in 
section 3104(a)(2) of this title and placement and postplacement 
services described in section 3104(a)(5) of this title available to 
each qualified veteran (whether or not the veteran is participating 
in a vocational rehabilitation program under chapter 31 of this 
title). 
(c)(1) In the case of each award after January 31, 1985, of a 
rating of total disability described in subsection (a)(2) of this 
section to a veteran, the Secretary shall provide to the veteran, at the 
time that notice of the award is provided to the veteran, a statement 
providing- 

(A) notice of the provisions of this section; 
(B) information explaining the purposes and availability of 
and eligibility for, and the procedures for pursuing, a vocational 
rehabilitation program under chapter 31 of this title; 
and 
(C) a summary description of the scope of services and assistance 
available under that chapter. 
(2) After providing the notice required under paragraph (1) of 
this subsection, the Secretary shall offer the veteran the opportunity 
for an evaluation under section 3106(a) of this title. 
(Added Pub. L. 98-543, title I, Sec. 111(a)(1), Oct. 24, 1984, 98 Stat. 
2738, Sec. 363; amended Pub. L. 100-687, div. B, title XIII, Sec. 1301, 
Nov. 18, 1988, 102 Stat. 4127; renumbered Sec. 1163 and amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 102-291, Sec. 2(a), May 20, 1992, 106 Stat. 178; Pub. 
L. 102-568, title IV, Sec. 401(a)-(d)(1), Oct. 29, 1992, 106 Stat. 
4336.) 


CHAPTER 13 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


115 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½


CHAPTER 13-DEPENDENCY AND INDEMNITY 
COMPENSATION FOR SERVICE-CONNECTED DEATHS


SUBCHAPTER I-GENERAL 

Sec. 
1301. Definitions. 
1302. Determination of pay grade. 
1303. Cost-of-living adjustments. 
1304. Special provisions relating to surviving spouses. 


SUBCHAPTER II-DEPENDENCY AND INDEMNITY COMPENSATION 

1310. Deaths entitling survivors to dependency and indemnity 
compensation. 
1311. Dependency and indemnity compensation to a surviving spouse. 
1312. Benefits in certain cases of in-service or service-connected 
deaths. 
1313. Dependency and indemnity compensation to children. 
1314. Supplemental dependency and indemnity compensation to children. 
1315. Dependency and indemnity compensation to parents. 
1316. Dependency and indemnity compensation in cases of prior deaths. 
1317. Restriction on payments under this chapter. 
1318. Benefits for survivors of certain veterans rated totally disabled 
at time of 


death. 

SUBCHAPTER III-CERTIFICATIONS 

1321. Certifications with respect to pay grade. 
1322. Certifications with respect to social security entitlement. 
1323. Certifications with respect to circumstances of death. 

SUBCHAPTER I-GENERAL 

ï¿½ 1301. Definitions 

As used in this chapter-
The term ï¿½ï¿½veteranï¿½ï¿½ includes a person who died in the active 
military, naval, or air service. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1126, Sec. 401; Pub. L. 
91-24, Sec. 4(a), 
June 11, 1969, 83 Stat. 33; Pub. L. 91-96, Sec. 5, Oct. 27, 1969, 
83 Stat. 145; renumbered Sec. 1301, Pub. L. 102-83, Sec. 5(a), Aug. 
6, 1991, 105 Stat. 406.) 

ï¿½ 1302. Determination of pay grade 

(a) With respect to a veteran who died in the active military, 
naval, or air service, such veteranï¿½s pay grade shall be determined 
as of the date of such veteranï¿½s death or as of the date of a promotion 
after death while in a missing status. 
(b) With respect to a veteran who did not die in the active military, 
naval, or air service, such veteranï¿½s pay grade shall be determined as 
of- 
(1) the time of such veteranï¿½s last discharge or release 
from active duty under conditions other than dishonorable; or 
117 


Sec. 1303 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 118 

(2) the time of such veteranï¿½s discharge or release from 
any period of active duty for training or inactive duty training, 
if such veteranï¿½s death results from service-connected disability 
incurred during such period and if such veteran was not thereafter 
discharged or released under conditions other than dishonorable from 
active duty. 
(c) The pay grade of any veteran described in section 106(b) of 
this title shall be that to which such veteran would have been assigned 
upon final acceptance or entry upon active duty. 
(d) If a veteran has satisfactorily served on active duty for a 
period of six months or more in a pay grade higher than that specified 
in subsection (a) or (b) and any subsequent discharge or release from 
active duty was under conditions other than dishonorable, the higher pay 
grade shall be used if it will result in greater 
monthly payments to such veteranï¿½s surviving spouse under this 
chapter. The determination as to whether an individual has served 
satisfactorily for the required period in a higher pay grade shall be 
made by the Secretary of the department in which such higher pay 
grade was held. 
(e) The pay grade of any person not otherwise described in this 
section, but who had a compensable status on the date of such personï¿½s 
death under laws administered by the Secretary, shall be determined by 
the head of the department under which such person 
performed the services by which such person obtained such status 
(taking into consideration such personï¿½s duties and responsibilities) 
and certified to the Secretary. For the purposes of this chapter, 
such person shall be deemed to have been on active duty while performing 
such services. (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1126, Sec. 402; 
Pub. L. 86-492, June 8, 1960, 74 Stat. 161; Pub. L. 89-622, Sec. 1, Oct. 
4, 1966, 80 Stat. 873; Pub. L. 91- 96, Sec. 1, Oct. 27, 1969, 83 Stat. 
144; Pub. L. 92-169, Sec. 2, Nov. 24, 1971, 85 Stat. 489; Pub. L. 94-433, 
title IV, Sec. 405(1)-(3), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 102-54, 
Sec. 14(b)(2), June 13, 1991, 105 Stat. 283; renumbered Sec. 1302 
and amended Pub. L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 
403-406.) 

ï¿½ 1303. Cost-of-living adjustments 

(a) In the computation of cost-of-living adjustments for fiscal 
years 1998 through 2013 in the rates of dependency and indemnity 
compensation payable under this chapter, such adjustments (except 
as provided in subsection (b)) shall be made by a uniform percentage 
that is no more than the percentage equal to the social security 
increase for that fiscal year, with all increased monthly rates (other 
than increased rates equal to a whole dollar amount) rounded down 
to the next lower whole dollar amount. 
(b) For purposes of this section, the term ï¿½ï¿½social security increaseï¿½ï¿½ 
means the percentage by which benefit amounts payable 
under title II of the Social Security Act (42 U.S.C. 401 et seq.) are 
increased for any fiscal year as a result of a determination under 
section 215(i) of such Act (42 U.S.C. 415(i)). 
(Added Pub. L. 105-33, title VIII, Sec. 8031(b)(1), Aug. 5, 1997, 111 
Stat. 668; amended Pub. L. 107-103, title II, Sec. 205, Dec. 27, 2001, 
115 Stat. 990; Pub. L. 
108-183, title VII, Sec. 706, Dec. 16, 2003, 117 Stat. 2672.) 


119 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1311 

ï¿½ 1304. Special provisions relating to surviving spouses 

No dependency and indemnity compensation shall be paid to 
the surviving spouse of a veteran dying after December 31, 1956, 
unless such surviving spouse was married to such veteran- 

(1) before the expiration of fifteen years after the termination of the 
period of service in which the injury or disease 
causing the death of the veteran was incurred or aggravated; 
or 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. (Pub. L. 85-857, Sept. 2, 1958, 72 
Stat. 1127, Sec. 404; Pub. L. 90-77, title I, Sec. 101(a), Aug. 31, 
1967, 81 
Stat. 178; Pub. L. 94-433, title IV, Sec. 405(4), (5), Sept. 30, 1976, 90 
Stat. 1379; renumbered Sec. 1304, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406.) 

SUBCHAPTER II-DEPENDENCY AND INDEMNITY 
COMPENSATION 


ï¿½ 1310. Deaths entitling survivors to dependency and indemnity 
compensation 

(a) When any veteran dies after December 31, 1956, from a 
service-connected or compensable disability, the Secretary shall pay 
dependency and indemnity compensation to such veteranï¿½s surviving spouse, 
children, and parents. The standards and criteria for 
determining whether or not a disability is service-connected shall 
be those applicable under chapter 11 of this title. 
(b) Dependency and indemnity compensation shall not be paid 
to the surviving spouse, children, or parents of any veteran dying 
after December 31, 1956, unless such veteran (1) was discharged 
or released under conditions other than dishonorable from the period of 
active military, naval, or air service in which the disability 
causing such veteranï¿½s death was incurred or aggravated, or (2) 
died while in the active military, naval, or air service. 
(c) A person who receives a payment under the provisions of 
the Radiation Exposure Compensation Act of 1990 (42 U.S.C. 2210 
note) shall not be deprived, by reason of the receipt of that payment,
of receipt of dependency and indemnity compensation to 
which that person is otherwise entitled, but there shall be deducted 
from payment of such dependency and indemnity compensation the 
amount of the payment under that Act. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1127, Sec. 410; Pub. L. 
94-433, title IV, Sec. 405(7), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 
95-479, title II, Sec. 204, Oct. 18, 1978, 92 Stat. 1564; Pub. L. 
97-306, title I, Sec. 112(a), Oct. 14, 1982, 96 Stat. 1432; Pub. L. 
100-687, div. B, title XIV, Sec. 1403(b), Nov. 18, 1988, 102 Stat. 4131; 
renumbered Sec. 1310 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 108-454, title III, 
Sec. 302(b), Dec. 10, 2004, 
118 Stat. 3610.) 

ï¿½ 1311. Dependency and indemnity compensation to a surviving spouse 

(a)(1) Dependency and indemnity compensation shall be paid to 
a surviving spouse at the monthly rate of $1,091. 

(2) The rate under paragraph (1) shall be increased by $233 in 
the case of the death of a veteran who at the time of death was 

Sec. 1311 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 120 

in receipt of or was entitled to receive (or but for the receipt of 
retired pay or retirement pay was entitled to receive) compensation 
for a service-connected disability that was rated totally disabling 
for a continuous period of at least eight years immediately preceding 
death. In determining the period of a veteranï¿½s disability for 
purposes of the preceding sentence, only periods in which the veteran 
was married to the surviving spouse shall be considered. 

(3) In the case of dependency and indemnity compensation paid 
to a surviving spouse that is predicated on the death of a veteran 
before January 1, 1993, the monthly rate of such compensation 
shall be the amount based on the pay grade of such veteran, as set 
forth in the following table, if the amount is greater than the total 
amount determined with respect to that veteran under paragraphs 
(1) and (2): 
Pay grade Monthly rate Pay grade Monthly 

rate 

E-1 ....................... $1,091 W-4 ..................... $1,305
E-2 ....................... $1,091 O-1 ...................... $1,153
E-3 ....................... $1,091 O-2 ...................... $1,191
E-4 ....................... $1,091 O-3 ...................... $1,274
E-5 ....................... $1,091 O-4 ...................... $1,349
E-6 ....................... $1,091 O-5 ...................... $1,485
E-7 ....................... $1,129 O-6 ...................... $1,674
E-8 ....................... $1,191 O-7 ...................... $1,808
E-9 ....................... $1,2421 O-8 ...................... $1,985
W-1 ...................... $1,153 O-9 ...................... $2,123
W-2 ...................... $1,198 O-10 .................... $2,3282
W-3 ...................... $1,234 .............................. ........................


1 If the veteran served as sergeant major of the Army, senior enlisted 
advisor of the Navy, chief master sergeant of the Air Force, sergeant 
major of the Marine Corps, or master chief petty officer of the Coast 
Guard, at the applicable time designated by section 1302 of this title, 
the surviving spouseï¿½s rate shall be $1,342. 

2 If the veteran served as Chairman or Vice-Chairman of the Joint 
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, 
Chief of Staff of the Air Force, Commandant of the Marine Corps, or 
Commandant of the Coast Guard, at the applicable time designated by 
section 1302 of this title, the surviving spouseï¿½s rate shall be $2,499. 

(b) If there is a surviving spouse with one or more children 
below the age of eighteen of a deceased veteran, the dependency 
and indemnity compensation paid monthly to the surviving spouse 
shall be increased by $271 for each such child. 
(c) The monthly rate of dependency and indemnity compensation payable 
to a surviving spouse shall be increased by $271 if the 
spouse is (1) a patient in a nursing home or (2) blind, or so nearly 
blind or significantly disabled as to need or require the regular aid 
and attendance of another person. 
(d) The monthly rate of dependency and indemnity compensation payable 
to a surviving spouse shall be increased by $128 if the 
surviving spouse is, by reason of disability, permanently housebound but 
does not qualify for the aid and attendance allowance 
under subsection (c) of this section. For the purposes of this 
subsection, the requirement of ï¿½ï¿½permanently houseboundï¿½ï¿½ will be con

121 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1311 

sidered to have been met when the surviving spouse is substantially 
confined to such surviving spouseï¿½s home (ward or clinical 
areas, if institutionalized) or immediate premises by reason of a 
disability or disabilities which it is reasonably certain will remain 
throughout such surviving spouseï¿½s lifetime. 

(e) In the case of an individual who is eligible for dependency 
and indemnity compensation under this section by reason of section 
103(d)(2)(B) of this title who is also eligible for benefits under 
another provision of law by reason of such individualï¿½s status as the 
surviving spouse of a veteran, then, notwithstanding any other 
provision of law (other than section 5304(b)(3) of this title), no 
reduction in benefits under such other provision of law shall be made by 
reason of such individualï¿½s eligibility for benefits under this section. 
(f)(1) Subject to paragraphs (2) and (3), if there is a surviving 
spouse with one or more children below the age of 18, the dependency and 
indemnity compensation paid monthly to the surviving 
spouse shall be increased by $250, regardless of the number of such 
children. 

(2) Dependency and indemnity compensation shall be increased 
under this subsection only for months occurring during the two-
year period beginning on the date on which entitlement to dependency and 
indemnity compensation commenced. 
(3) The increase in dependency and indemnity compensation of 
a surviving spouse under this subsection shall cease beginning with 
the first month commencing after the month in which all children 
of the surviving spouse have attained the age of 18. 
(4) Dependency and indemnity compensation under this subsection is in 
addition to any other dependency and indemnity compensation payable under 
this chapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1127, Sec. 411; Pub. L. 87-268, 
Sec. 1(b), 
Sept. 21, 1961, 75 Stat. 566; Pub. L. 88-21, Sec. 1, May 15, 1963, 77 
Stat. 17; Pub.

L. 88-134, Sec. 1, Oct. 5, 1963, 77 Stat. 223; Pub. L. 91-24, Sec. 4(b), 
June 11, 1969, 83 Stat. 33; Pub. L. 91-96, Sec. 3, Oct. 27, 1969, 83 Stat. 
144; Pub. L. 91-588, Sec. 3(a), Dec. 24, 1970, 84 Stat. 1583; Pub. L. 
92-197, Sec. 1, Dec. 15, 1971, 85 Stat. 660; Pub. L. 92-455, Sec. 4, 
Oct. 2, 1972, 86 Stat. 761; Pub. L. 93-295, title II, Sec. 201, May 31, 
1974, 88 Stat. 182; Pub. L. 94-71, title II, Sec. 201, Aug. 5, 1975, 89 
Stat. 396; Pub. L. 94-433, title II, Sec. 201, Sept. 30, 1976, 90 Stat. 
1375; Pub. L.95-117, title II, Sec. 201, Oct. 3, 1977, 91 Stat. 1064; 
Pub. L. 95-479, title II, Sec. 201, Oct. 18, 1978, 92 Stat. 1562; Pub. 
L. 96-128, title II, Sec. 201, Nov. 28, 1979, 93 Stat. 984; Pub. L. 
96-385, title II, Sec. 201, Oct. 7, 1980, 94 Stat. 1529; Pub. L. 97-66, 
title II, Sec. 201, Oct. 17, 1981, 95 Stat. 1028; Pub. L. 97-253, 
title IV, Sec. 405(e), Sept. 8, 1982, 96 Stat. 804; Pub. L. 97-306, 
title I, Sec. 104, 107, Oct. 14, 1982, 96 Stat. 1430, 1431; Pub. L. 
98-223, title I, Sec. 104, Mar. 2, 1984, 98 Stat. 38; Pub. L. 98-543, 
title I, Sec. 104, Oct. 24, 1984, 98 Stat. 2736; Pub. L. 99- 238, 
title I, Sec. 104, Jan. 13, 1986, 99 Stat. 1766; Pub. L. 99-576, 
title I, Sec. 104, Oct. 28, 1986, 100 Stat. 3251; Pub. L. 100-180, 
div. A, title XIII, Sec. 1314(d)((1)), Dec. 4, 1987, 101 Stat. 1176; 
Pub. L. 100-227, title I, Sec. 104, Dec. 31, 1987, 101 Stat. 1554; 
Pub. L. 100-687, div. B, title XI, Sec. 1104, Nov. 18, 1988, 102 Stat. 
4124; Pub. L. 101-237, title I, Sec. 104, Dec. 18, 1989, 103 Stat. 
2063; Pub. L. 102- 3, Sec. 5, Feb. 6, 1991, 105 Stat. 9; renumbered 
Sec. 1311 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; Pub. L. 102-152, Sec. 5, Nov. 12, 1991, 105 Stat. 986; 
Pub. L. 102-568, title I, Sec. 102(a), (b), Oct. 29, 1992, 106 Stat. 
4321, 4322; Pub. L. 103-78, Sec. 4, Aug. 13, 1993, 107 Stat. 768; 
Pub. L. 103- 140, Sec. 5, Nov. 11, 1993, 107 Stat. 1486; Pub. L. 
105-98, Sec. 5, Nov. 19, 1997, 111 Stat. 2156; Pub. L. 105-178, title 
VIII, Sec. 8207(a), June 9, 1998, 112 Stat. 495; Pub. L. 106-117, 
title V, Sec. 502(b), Nov. 30, 1999, 113 Stat. 1574; Pub. L. 106-118, 
Sec. 5, Nov. 30, 1999, 113 Stat. 1602; Pub. L. 107-94, Sec. 5, Dec. 21, 
2001, 115 Stat. 901; Pub. L. 107-330, title III, Sec. 309(d), Dec. 6, 
2002, 116 Stat. 2830; Pub. L. 108-183, title I, Sec. 101(b), Dec. 16, 
2003, 117 Stat. 2652; Pub. L. 108-454, title III, Secs. 301(a), 307(d), 
Dec. 10, 2004, 118 Stat. 3610, 3613; Pub. L. 

Sec. 1312 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 122 

109-111, Sec. 2(d), Nov. 22, 2005, 119 Stat. 2363; Pub. L. 109-233, 
title V, Sec. 
502(3), June 15, 2006, 120 Stat. 415; Pub. L. 109-361, Sec. 4, Oct. 16, 
2006, 120 Stat. 2063; Pub. L. 109-444, Sec. 9(d), Dec. 21, 2006, 120 
Stat. 3315; Pub. L. 109-461, title X, Secs. 1005(d), 1006(b), Dec. 22, 
2006, 120 Stat. 3467, 3468; Pub. L. 110- 
324, Sec. 3(d), Sept. 24, 2008, 122 Stat. 3551.) 

ï¿½ 1312. Benefits in certain cases of in-service or service-connected 
deaths 

(a) In the case of any veteran- 
(1) who dies after December 31, 1956, and is not a fully 
and currently insured individual (as defined in section 214 of 
the Social Security Act (42 U.S.C. 414)) at the time of such veteranï¿½s 
death; and 
(2) whose death occurs- 
(A) while on active duty, active duty for training, or 
inactive duty training; or 
(B) as the result of a service-connected disability incurred after 
September 15, 1940; and 
(3) who leaves one or more survivors who are not entitled 
for any month to monthly benefits under section 202 of the Social 
Security Act (42 U.S.C. 402) on the basis of such veteranï¿½s 
wages and self-employment income but who would, upon application 
therefor, be entitled to such benefits if such veteran had 
been fully and currently insured at the time of such veteranï¿½s 
death; 
the Secretary shall pay for such month benefits under this section 
to each such survivor in an amount equal to the amount of the benefits 
which would have been paid for such month to such survivor 
under title II of the Social Security Act (42 U.S.C. 401 et seq.), if 
such veteran had been both fully and currently insured at the time 
of such veteranï¿½s death and if such survivor had filed application 
therefor on the same date on which application for benefits under 
this section is filed with the Secretary. 

(b) In any case where the amount of dependency and indemnity 
compensation payable under this chapter to a surviving spouse 
who has children is less than the amount of pension which would 
be payable to (1) such surviving spouse, or (2) such children if the 
surviving spouse were not entitled, under chapter 15 of this title 
had the death occurred under circumstances authorizing payment 
of death pension, the Secretary shall pay dependency and indemnity 
compensation to such surviving spouse in an amount equal to 
such amount of pension. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1128, Sec. 412; Pub. L. 
87-268, Sec. 1(a), 
Sept. 21, 1961, 75 Stat. 566; Pub. L. 89-466, June 22, 1966, 80 Stat. 
217; Pub. L. 
94-433, title IV, Sec. 405(9), Sept. 30, 1976, 90 Stat. 1379; Pub. L. 
98-223, title II, 
Sec. 213(2), Mar. 2, 1984, 98 Stat. 46; Pub. L. 102-54, Sec. 14(b)(3), 
June 13, 1991, 
105 Stat. 283; renumbered Sec. 1312 and amended Pub. L. 102-83, Sec. 
4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1313. Dependency and indemnity compensation to children 

(a) Whenever there is no surviving spouse of a deceased veteran 
entitled to dependency and indemnity compensation, dependency and 
indemnity compensation shall be paid in equal shares to 
the children of the deceased veteran at the following monthly rates: 
(1) one child, $462; 

123 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1314 

(2) two children, $663; 
(3) three children, $865; and 
(4) more than three children, $865, plus $165 for each 
child in excess of three. 
(b) If dependency and indemnity compensation has been 
awarded under this section to a veteranï¿½s child or children and the 
entitlement to dependency and indemnity compensation under this 
section of an additional child of that veteran who is over the age 
of eighteen years and who had previously been entitled to dependency 
and indemnity compensation under this section before becoming eighteen 
years of age is later reestablished effective retroactively upon 
determination that such child is pursuing a course of 
instruction at an approved educational institution, the amount payable 
retroactively to the additional child is the amount equal to the 
difference between the total of the increased award payable under 
this section to the children of the deceased veteran for the retroactive 
period and the prior total award for such purpose for that 
period. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1128, Sec. 413; Pub. L. 88-21, 
Sec. 2, May 15, 1963, 77 Stat. 17; Pub. L. 89-730, Sec. 4, Nov. 2, 
1966, 80 Stat. 1159; Pub. L. 91-262, Sec. 2, May 21, 1970, 84 Stat. 
256; Pub. L. 92-197, Sec. 2, Dec. 15, 1971, 85 Stat. 660; Pub. L. 
93-295, title II, Sec. 202, May 31, 1974, 88 Stat. 182; Pub. 

L. 94-71, title II, Sec. 202, Aug. 5, 1975, 89 Stat. 397; Pub. L. 
94-433, title II, Sec. 202, Sept. 30, 1976, 90 Stat. 1376; Pub. L. 
95-117, title II, Sec. 202, Oct. 3, 1977, 91 Stat. 1065; Pub. L. 
95-479, title II, Sec. 202, Oct. 18, 1978, 92 Stat. 1563; Pub. 
L. 96-128, title II, Sec. 202, Nov. 28, 1979, 93 Stat. 985; Pub. L. 
96-385, title II, Sec. 202, Oct. 7, 1980, 94 Stat. 1530; Pub. L. 
97-66, title II, Sec. 202, 204(a), Oct. 17, 1981, 95 Stat. 1029; 
Pub. L. 97-253, title IV, Sec. 405(f), Sept. 8, 1982, 96 Stat. 
804; Pub. L. 97-306, title I, Sec. 105, 107, Oct. 14, 1982, 96 Stat. 
1431; Pub. L. 98- 223, title I, Sec. 105, Mar. 2, 1984, 98 Stat. 39; 
Pub. L. 98-543, title I, Sec. 105, Oct. 24, 1984, 98 Stat. 2737; 
Pub. L. 99-238, title I, Sec. 105, Jan. 13, 1986, 99 Stat. 1767; 
Pub. L. 99-576, title I, Sec. 105, title VII, Sec. 703(a)(1), 
Oct. 28, 1986, 100 Stat. 3252, 3302; Pub. L. 100-227, title I, Sec. 
105, Dec. 31, 1987, 101 Stat. 1554; Pub. L. 100-687, div. B, title XI, 
Sec. 1105(a), Nov. 18, 1988, 102 Stat. 4124; Pub. L. 101-237, title I, 
Sec. 105(a), Dec. 18, 1989, 103 Stat. 2064; Pub. L. 102-3, Sec. 
6(a), Feb. 6, 1991, 105 Stat. 9; renumbered Sec. 1313, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-152, Sec. 6(a), 
Nov. 12, 1991, 105 Stat. 987; Pub. L. 103-78, Sec. 5(a), Aug. 13, 1993, 
107 Stat. 768; Pub. L. 103-140, Sec. 6(a), Nov. 11, 1993, 107 Stat. 
1487; Pub. L. 105-98, Sec. 6(a), Nov. 19, 1997, 111 Stat. 2157; Pub. 
L. 106-118, Sec. 6(a), Nov. 30, 1999, 113 Stat. 1603; Pub. L. 107-94, 
Sec. 6(a), Dec. 21, 2001, 115 Stat. 902; Pub. L. 107-330, title III, 
Sec. 309(e)(1), Dec. 6, 2002, 116 Stat. 2831; Pub. L. 108-454, title 
III, Sec. 307(e)(1), Dec. 10, 2004, 118 Stat. 3614; Pub. L. 109-111, 
Sec. 2(e)(1), Nov. 22, 2005, 119 Stat. 2364; Pub. L. 109-444, Sec. 
9(e)(1), Dec. 21, 2006, 120 Stat. 3315; Pub. L. 109-461, title X, 
Secs. 1005(e)(1), 1006(b), Dec. 22, 2006, 120 Stat. 3468; Pub. L. 
110-324, Sec. 3(e)(1), Sept. 24, 2008, 122 Stat. 3552.) 
ï¿½ 1314. Supplemental dependency and indemnity compensation to children 

(a) In the case of a child entitled to dependency and indemnity 
compensation who has attained the age of eighteen and who, while 
under such age, became permanently incapable of self-support, the 
dependency and indemnity compensation paid monthly to such 
child shall be increased by $271. 
(b) If dependency and indemnity compensation is payable 
monthly to a person as a surviving spouse and there is a child (of 
such personï¿½s deceased spouse) who has attained the age of eighteen 
and who, while under such age, became permanently incapable 
of self-support, dependency and indemnity compensation shall be 

Sec. 1315 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 124 

paid monthly to each such child, concurrently with the payment of 
dependency and indemnity compensation to the surviving spouse, 
in the amount of $462. 

(c) If dependency and indemnity compensation is payable 
monthly to a person as a surviving spouse and there is a child (of 
such personï¿½s deceased spouse), who has attained the age of eighteen 
and who, while under the age of twenty-three, is pursuing a 
course of instruction at an educational institution approved under 
section 104 of this title, dependency and indemnity compensation 
shall be paid monthly to each such child, concurrently with the 
payment of dependency and indemnity compensation to the surviving 
spouse, in the amount of $230. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1128, Sec. 414; Pub. L. 88-21, 
Sec. 3, May 15, 1963, 77 Stat. 17; Pub. L. 89-311, Sec. 2(c)(2), Oct. 
31, 1965, 79 Stat. 1155; Pub. 

L. 89-730, Sec. 5, Nov. 2, 1966, 80 Stat. 1159; Pub. L. 91-262, Sec. 3, 
May 21, 1970, 84 Stat. 256; Pub. L. 92-197, Sec. 3, Dec. 15, 1971, 85 
Stat. 661; Pub. L. 93-295, title II, Sec. 203, May 31, 1974, 88 Stat. 
183; Pub. L. 94-71, title II, Sec. 203, Aug. 5, 1975, 89 Stat. 397; 
Pub. L. 94-433, title II, Sec. 203, title IV, Sec. 405(10), Sept. 
30, 1976, 90 Stat. 1376, 1380; Pub. L. 95-117, title II, Sec. 203, Oct. 
3, 1977, 91 Stat. 1065; Pub. L. 95-479, title II, Sec. 203, Oct. 18, 
1978, 92 Stat. 1563; Pub. L. 96-128, title II, Sec. 203, Nov. 28, 1979, 
93 Stat. 985; Pub. L. 96-385, title II, Sec. 203, Oct. 7, 1980, 94 
Stat. 1530; Pub. L. 97-66, title II, Sec. 203, Oct. 17, 1981, 95 
Stat. 1029; Pub. L. 97-253, title IV, Sec. 405(g), Sept. 8, 1982, 96 
Stat. 804; Pub. L. 97-306, title I, Sec. 106, 107, Oct. 14, 1982, 96 
Stat. 1431; Pub. L. 98-223, title I, Sec. 106, Mar. 2, 1984, 98 Stat. 
39; Pub. L. 98-543, title I, Sec. 106, Oct. 24, 1984, 98 Stat. 2737; 
Pub. L. 99-238, title I, Sec. 106, Jan. 13, 1986, 99 Stat. 1767; Pub. 
L. 99-576, title I, Sec. 106, Oct. 28, 1986, 100 Stat. 3252; Pub. L. 
100-227, title I, Sec. 106, Dec. 31, 1987, 101 Stat. 1555; Pub. L. 
100-687, div. B, title XI, Sec. 1105(b), Nov. 18, 1988, 102 Stat. 4124; 
Pub. L. 101-237, title I, Sec. 105(b), Dec. 18, 1989, 103 Stat. 2064; 
Pub. L. 102-3, Sec. 6(b), Feb. 6, 1991, 105 Stat. 9; renumbered Sec. 
1314, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
102-152, Sec. 6(b), Nov. 12, 1991, 105 Stat. 987; Pub. L. 103-78, Sec. 
5(b), Aug. 13, 1993, 107 Stat. 769; Pub. L. 103-140, Sec. 6(b), Nov. 
11, 1993, 107 Stat. 1487; Pub. L. 105-98, Sec. 6(b), Nov. 19, 1997, 
111 Stat. 2157; Pub. L. 106-118, Sec. 6(b), Nov. 30, 1999, 113 Stat. 
1603; Pub. L. 107-94, Sec. 6(b), Dec. 21, 2001, 115 Stat. 902; Pub. L. 
107-330, title III, Sec. 309(e)(2), Dec. 6, 2002, 116 Stat. 2831; Pub. 
L. 108- 454, title III, Sec. 307(e)(2), Dec. 10, 2004, 118 Stat. 3614; 
Pub. L. 109-111, Sec. 2(e)(2), Nov. 22, 2005, 119 Stat. 2364; Pub. L. 
109-444, Sec. 9(e)(2), Dec. 21, 2006, 120 Stat. 3315; Pub. L. 109-461, 
title X, Secs. 1005(e)(2), 1006(b), Dec. 22, 2006, 120 Stat. 3468; 
Pub. L. 110-324, Sec. 3(e)(2), Sept. 24, 2008, 122 Stat. 3552.) 
ï¿½ 1315. Dependency and indemnity compensation to parents 

(a)(1) Except as provided in paragraph (2), dependency and indemnity 
compensation shall be paid monthly to parents of a deceased veteran in 
the amounts prescribed by this section. 

(2) Under regulations prescribed by the Secretary, benefits 
under this section may be paid less frequently than monthly if the 
amount of the annual benefit is less than 4 percent of the maximum 
annual rate payable under this section. 
(b)(1) Except as provided in paragraph (4) of this subsection, 
if there is only one parent, the monthly rate of dependency and indemnity 
compensation paid to such parent shall be $163, as increased from time to 
time under section 5312(b)(1) of this title and 
reduced by an amount, based upon the amount of such parentï¿½s annual income, 
determined in accordance with regulations which the 
Secretary shall prescribe under section 5312(b)(2) of this title. 

(2) In no case may the amount of dependency and indemnity 
compensation payable to any parent under this subsection be less 
than $5 monthly. 

125 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1315 

(3) In no case may dependency and indemnity compensation be 
paid under paragraph (1) of this subsection to any parent if the annual 
income of such parent exceeds $4,038, as increased from time 
to time under section 5312 of this title. 
(4) If there is only one parent and such parent has remarried 
and is living with such parentï¿½s spouse, dependency and indemnity 
compensation shall be paid to such parent under either paragraph 
(1) of this subsection or under subsection (d) of this section, 
whichever will result in the greater amount of such compensation being 
paid to such parent. In such a case of remarriage the total combined 
annual income of the parent and such parentï¿½s spouse shall 
be counted in determining the monthly rate of dependency and indemnity
compensation under the appropriate formula. 
(c)(1) Except as provided in subsection (d) of this section, if 
there are two parents, but they are not living together, the monthly 
rate of dependency and indemnity compensation paid to each such 
parent shall be $115, as increased from time to time under section 
5312(b)(1) of this title and reduced by an amount, based upon the 
amount of such parentï¿½s annual income, determined in accordance 
with regulations which the Secretary shall prescribe under section 
5312(b)(2) of this title. 

(2) In no case may the amount of dependency and indemnity 
compensation payable to any parent under this subsection be less 
than $5 monthly. 
(3) In no case may dependency and indemnity compensation be 
paid under paragraph (1) of this subsection to any parent if the annual 
income of such parent exceeds $4,038, as increased from time 
to time under section 5312 of this title. 
(d)(1) If there are two parents who are living together, or if a 
parent has remarried and is living with such parentï¿½s spouse, the 
monthly rate of dependency and indemnity compensation paid to 
such parent shall be $109, as increased from time to time under 
section 5312(b)(1) of this title and reduced by an amount, based 
upon the amount of the combined annual income of the parents or 
the parent and the parentï¿½s spouse, determined in accordance with 
regulations which the Secretary shall prescribe under section 
5312(b)(2) of this title. 

(2) In no case may the amount of dependency and indemnity 
compensation payable to any parent under this subsection be less 
than $5 monthly. 
(3) In no case may dependency and indemnity compensation be 
paid under this subsection to a parent if the total combined annual 
income of the parent and such parentï¿½s spouse exceeds $5,430, as 
increased from time to time under section 5312 of this title. 
(e) The Secretary may require as a condition of granting or 
continuing dependency and indemnity compensation to a parent 
that such parent, other than one who has attained seventy-two 
years of age and has been paid dependency and indemnity compensation 
during two consecutive calendar years, file for a calendar 
year with the Secretary (on the form prescribed by the Secretary) 
a report showing the total income which such parent expects to receive 
in that year and the total income which such parent received 
in the preceding year. The parent or parents shall notify the Secretary 
whenever there is a material change in annual income. 

Sec. 1315 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 126 

(f)(1) In determining income under this section, all payments 
of any kind or from any source shall be included, except- 

(A) payments of the six-monthsï¿½ death gratuity; 
(B) donations from public or private relief or welfare organizations; 
(C) payments under this chapter (except section 1312(a)) 
and chapters 11 and 15 of this title and under the first sentence of 
section 9(b) of the Veteransï¿½ Pension Act of 1959; 
(D) lump-sum death payments under title II of the Social 
Security Act (42 U.S.C. 401 et seq.); 
(E) payments of bonus or similar cash gratuity by any 
State based upon service in the Armed Forces; 
(F) payments under policies of servicemembersï¿½ group life 
insurance, United States Government life insurance or national service 
life insurance, and payments of servicemenï¿½s indemnity; 
(G) 10 percent of the amount of payments to an individual 
under public or private retirement, annuity, endowment, or 
similar plans or programs; 
(H) amounts equal to amounts paid by a parent of a deceased veteran for- 
(i) a deceased spouseï¿½s just debts, 
(ii) the expenses of the spouseï¿½s last illness to the extent such 
expenses are not reimbursed under chapter 51 of 
this title, and 
(iii) the expenses of the spouseï¿½s burial to the extent 
that such expenses are not reimbursed under chapter 23 
or chapter 51 of this title; 
(I) reimbursements of any kind for any casualty loss (as 
defined in regulations which the Secretary shall prescribe), but 
the amount excluded under this clause may not exceed the 
greater of the fair market value or the reasonable replacement 
value of the property involved at the time immediately preceding the 
loss; 
(J) amounts equal to amounts paid by a parent of a deceased veteran for- 
(i) the expenses of the veteranï¿½s last illness, and 
(ii) the expenses of such veteranï¿½s burial to the extent 
that such expenses are not reimbursed under chapter 23 
of this title; 
(K) profit realized from the disposition of real or personal 
property other than in the course of a business; 
(L) payments received for discharge of jury duty or obligatory civic 
duties; 
(M) payments of annuities elected under subchapter I of 
chapter 73 of title 10. 
(2) Where a fraction of a dollar is involved, annual income 
shall be fixed at the next lower dollar. 
(3) The Secretary may provide by regulation for the exclusion 
from income under this section of amounts paid by a parent for unusual 
medical expenses. 
(g) The monthly rate of dependency and indemnity compensation payable 
to a parent shall be increased by $85, as increased 
from time to time under section 5312 of this title, if such parent 

127 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1316 

is (1) a patient in a nursing home or (2) blind, or so nearly blind 
or significantly disabled as to need or require the regular aid and 
attendance of another person. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1129, Sec. 415; Pub. L. 
87-268, Sec. 1(b), Sept. 21, 1961, 75 Stat. 566; Pub. L. 88-21, Sec. 
4, May 15, 1963, 77 Stat. 17; Pub. L. 89-730, Sec. 1, 2, Nov. 2, 1966, 
80 Stat. 1157, 1158; Pub. L. 90-275, Sec. 2, Mar. 28, 1968, 82 Stat. 
66; Pub. L. 91-588, Sec. 2, 8(a), Dec. 24, 1970, 84 Stat. 1582, 
1584; Pub. L. 92-197, Sec. 4, Dec. 15, 1971, 85 Stat. 661; Pub. L. 
92-425, Sec. 6(1), Sept. 21, 1972, 86 Stat. 713; Pub. L. 93-177, 
Sec. 4, Dec. 6, 1973, 87 Stat. 695; Pub. L. 93-527, Sec. 7, Dec. 21, 
1974, 88 Stat. 1704; Pub. L. 94-169, title II, Sec. 201, Dec. 23, 1975, 
89 Stat. 1019; Pub. L. 94-432, title III, Sec. 301, Sept. 30, 1976, 90 
Stat. 1371; Pub. L. 95-204, title II, Sec. 201, Dec. 2, 1977, 91 Stat.
1457; Pub. L. 95-588, title II, Sec. 201, Nov. 4, 1978, 92 Stat. 2505; 
Pub. L. 96-466, title VI, Sec. 605(c)(1), Oct. 17, 1980, 94 Stat. 2211; 
Pub. L. 97-295, Sec. 4(10), Oct. 12, 1982, 96 Stat. 1305; Pub. L. 
100-687, div. B, title XIV, Sec. 1402(a), Nov. 18, 1988, 102 Stat. 
4129; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 
239; renumbered Sec. 1315 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-86, 
title I, Sec. 102, Aug. 14, 1991, 105 Stat. 414; Pub. L. 103-271, Sec. 
9(a), July 1, 1994, 108 Stat. 743; Pub. L. 104-275, title IV, Sec. 
405(c)(1), Oct. 9, 1996, 110 Stat. 3340; Pub. L. 109-233, title V, 
Sec. 502(3), June 15, 2006, 120 Stat. 415.) 
ï¿½ 1316. Dependency and indemnity compensation in cases of 
prior deaths 

(a)(1) Any person who is eligible as a surviving spouse or child 
for death compensation by reason of a death occurring before January 
1, 1957, may receive dependency and indemnity compensation 
upon application therefor. 

(2) Any person who is eligible as a parent, or, but for such personï¿½s 
annual income, would be eligible as a parent, for death compensation by 
reason of a death occurring before January 1, 1957, may receive 
dependency and indemnity compensation upon application therefor; 
however, the annual income limitations established 
by section 1315 of this title shall apply to each such parent. 
(b)(1) Whenever the surviving spouse of a veteran has been 
granted dependency and indemnity compensation by reason of this 
section, payments to such surviving spouse and to the children of 
the veteran shall thereafter be made under this chapter, and shall 
not thereafter be made to them by reason of the death of the veteran 
under (A) other provisions of law administered by the Secretary providing 
for the payment of compensation or pension, or (B) 
subchapter I of chapter 81 of title 5. 

(2) Whenever the child or parent of any veteran is granted dependency 
and indemnity compensation, payments shall not thereafter be made to such 
child or parent by reason of the death of the veteran under (A) other
provisions of law administered by the Secretary providing for the payment 
of compensation or pension, or (B) 
subchapter I of chapter 81 of title 5. 
(c) If children of a deceased individual are receiving death compensation,
and all such children have not applied for dependency 
and indemnity compensation, (1) dependency and indemnity compensation paid 
to each child who has applied therefor shall not exceed the amounts which 
would be paid if the application had been made by, or on behalf of, all 
such children, and (2) benefits paid under other provisions of law 
administered by the Secretary providing for the payment of compensation or 
pension, or under subchapter I of chapter 81 of title 5, to each child who 
has not so ap

Sec. 1317 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 128 

plied therefor shall not exceed the amounts which would be paid 
to such child if no such application had been made. 

(d) If there are two parents of a deceased individual eligible for 
benefits by reason of subsection (a), and an application for dependency 
and indemnity compensation is not made by both parents, (1) 
dependency and indemnity compensation paid to the parent who 
applies therefor shall not exceed the amounts which would be paid 
to such parent if both parents had so applied, and (2) benefits paid 
under other provisions of law administered by the Secretary providing 
for the payment of compensation, or under subchapter I of 
chapter 81 of title 5, to the parent who has not so applied therefor 
shall not exceed the amounts which would be paid to such parent 
if no such application had been made. 
(e)(1) Except as provided in paragraphs (3) and (4), no person 
who, on January 1, 1957, was a principal or contingent beneficiary 
of any payments under the Servicemenï¿½s Indemnity Act of 1951 
may receive any such payments based upon the death giving rise 
to such payments after such person has been granted dependency 
and indemnity compensation based upon that death. No principal 
or contingent beneficiary who has assigned such beneficiaryï¿½s interest 
in payments under the Servicemenï¿½s Indemnity Act of 1951 
after June 28, 1956, may receive any payments under this chapter 
based upon the death giving rise to such payments until the portion of 
the indemnity so assigned is no longer payable to any person. 

(2) Where a beneficiary is barred from the receipt of payments 
under the Servicemenï¿½s Indemnity Act of 1951 by virtue of the first 
sentence of paragraph (1), no payments of the portion of indemnity 
in which such beneficiary had an interest shall be made to any 
other beneficiary. 
(3) In the case of a child who has applied for dependency and 
indemnity compensation pursuant to this section or prior corresponding
provisions of law, and who is or becomes a beneficiary 
under the Servicemenï¿½s Indemnity Act of 1951 by reason of the 
death giving rise to such childï¿½s eligibility for dependency and 
indemnity compensation, the Secretary shall determine and pay to 
such child for each month, or part thereof, payments under this 
chapter or under such Act, whichever payment the Secretary determines 
to be the greater amount. 
(4) Notwithstanding paragraph (2), where a child receives dependency 
and indemnity compensation under this chapter, and 
thereafter dies, the portion of servicemenï¿½s indemnity in which 
such child had an interest may be paid (subject to paragraph (3)) 
to another child of the person by reason of whose death such 
servicemenï¿½s indemnity was payable. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1130, Sec. 416; Pub. L. 
94-433, title IV, 
Sec. 405(11)-(16), Sept. 30, 1976, 90 Stat. 1380; Pub. L. 97-295, 
Sec. 4(11), Oct. 12, 
1982, 96 Stat. 1305; renumbered Sec. 1316 and amended Pub. L. 
102-83, Sec. 
4(a)(1), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
403-406.) 

ï¿½ 1317. Restriction on payments under this chapter 

(a) Except as provided in subsection (b), no person eligible for 
dependency and indemnity compensation by reason of any death 
occurring after December 31, 1956, shall be eligible by reason of 

129 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1318 

such death for any payments under (1) provisions of law administered 
by the Secretary providing for the payment of death compensation or 
death pension, or (2) subchapter I of chapter 81 of 
title 5. 

(b) A surviving spouse who is eligible for dependency and indemnity 
compensation may elect to receive death pension instead 
of such compensation. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1132, Sec. 417; Pub. L. 
91-291, Sec. 13(a), (b), June 25, 1970, 84 Stat. 332; Pub. L. 92-197,
Sec. 5, Dec. 15, 1971, 85 Stat. 662; Pub. L. 97-295, Sec. 4(11), 
Oct. 12, 1982, 96 Stat. 1305; renumbered Sec. 1317 and amended Pub. L. 
102-83, Sec. 4(a)(1), 5(a), Aug. 6, 1991, 105 Stat. 403, 406; Pub. 

L. 103-446, title I, Sec. 111(a), Nov. 2, 1994, 108 Stat. 4654.) 
ï¿½ 1318. Benefits for survivors of certain veterans rated totally disabled 
at time of death 

(a) The Secretary shall pay benefits under this chapter to the 
surviving spouse and to the children of a deceased veteran described in 
subsection (b) of this section in the same manner as if 
the veteranï¿½s death were service connected. 
(b) A deceased veteran referred to in subsection (a) of this section is 
a veteran who dies, not as the result of the veteranï¿½s own 
willful misconduct, and who was in receipt of or entitled to receive 
(or but for the receipt of retired or retirement pay was entitled to 
receive) compensation at the time of death for a service-connected 
disability rated totally disabling if- 
(1) the disability was continuously rated totally disabling 
for a period of 10 or more years immediately preceding death; 
(2) the disability was continuously rated totally disabling 
for a period of not less than five years from the date of such 
veteranï¿½s discharge or other release from active duty; or 
(3) the veteran was a former prisoner of war who died 
after September 30, 1999, and the disability was continuously 
rated totally disabling for a period of not less than one year 
immediately preceding death. 
(c) Benefits may not be paid under this chapter by reason of 
this section to a surviving spouse of a veteran unless- 
(1) the surviving spouse was married to the veteran for 
one year or more immediately preceding the veteranï¿½s death; or 
(2) a child was born of the marriage or was born to them 
before the marriage. 
(d) If a surviving spouse or a child receives any money or property 
of value pursuant to an award in a judicial proceeding based 
upon, or a settlement or compromise of, any cause of action for 
damages for the death of a veteran described in subsection (a) of 
this section, benefits under this chapter payable to such surviving 
spouse or child by virtue of this section shall not be paid for any 
month following a month in which any such money or property is 
received until such time as the total amount of such benefits that 
would otherwise have been payable equals the total of the amount 
of the money received and the fair market value of the property 
received. 
(e) For purposes of sections 1448(d) and 1450(c) of title 10, 
eligibility for benefits under this chapter by virtue of this section 

Sec. 1321 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION 130 

shall be deemed eligibility for dependency and indemnity compensation 
under section 1311(a) of this title. 

(Added Pub. L. 100-687, div. B, title XIV, Sec. 1403(a)(1), Nov. 18, 
1988, 102 Stat. 4130, Sec. 418; amended Pub. L. 101-237, title I, 
Sec. 113, Dec. 18, 1989, 103 Stat. 2065; renumbered Sec. 1318 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 106-117, title V, Sec. 501(b), Nov. 
30, 1999, 113 Stat. 1573; Pub. L. 106-419, title IV, Sec. 404(a)(2), 
Nov. 1, 2000, 114 
Stat. 1864.) 

SUBCHAPTER III-CERTIFICATIONS 

ï¿½ 1321. Certifications with respect to pay grade 

The Secretary concerned shall, at the request of the Secretary, 
certify to the Secretary the pay grade of deceased persons with respect 
to whose deaths applications for benefits are filed under this 
chapter. The certification of the Secretary concerned shall be binding 
upon the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1132, Sec. 421; Pub. L. 91-96, 
Sec. 4, Oct. 
27, 1969, 83 Stat. 145; Pub. L. 94-433, title IV, Sec. 405(17), Sept. 
30, 1976, 90 Stat. 
1380; renumbered Sec. 1321 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), 
Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1322. Certifications with respect to social security entitlement 

(a) Determinations required by section 1312(a) of this title 
(other than a determination required by section 1312(a)(2) of this 
title) as to whether any survivor described in section 1312(a)(3) of 
this title of a deceased individual would be entitled to benefits 
under section 202 of the Social Security Act (42 U.S.C. 402) for any 
month and as to the amount of the benefits which would be paid 
for such month, if the deceased veteran had been a fully and currently 
insured individual at the time of such veteranï¿½s death, shall 
be made by the Commissioner of Social Security, and shall be certified 
by the Commissioner to the Secretary upon request of the 
Secretary. 
(b) The Secretary shall pay to the Commissioner of Social Security an
amount equal to the costs which will be incurred in making 
determinations and certifications under subsection (a). Such payments 
shall be made with respect to the costs incurred during such 
period (but not shorter than a calendar quarter) as the Secretary 
and the Commissioner may prescribe, with the amount of such payments to 
be made on the basis of estimates made by the Commissioner after 
consultation with the Secretary. The amount payable 
for any period shall be increased or reduced to compensate for any 
underpayment or overpayment, as the case may be, of the costs incurred 
in any preceding period. 
(c) Except with respect to determinations made under subsection (a) of 
this section, the Secretary shall prescribe such regulations as may be 
necessary to carry out the provisions of this section 
and section 1312(a) of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1132, Sec. 422; Pub. L. 
87-268, Sec. 1(b), (c), Sept. 21, 1961, 75 Stat. 566; Pub. L. 94-433, 
title IV, Sec. 405(18), Sept. 30, 1976, 90 Stat. 1380; Pub. L. 97-295, 
Sec. 4(12), (95)(A), Oct. 12, 1982, 96 Stat. 1305, 1313; renumbered Sec. 
1322 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(A), (E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 108-183, title VII, 
Sec. 708(c)(1), Dec. 16, 2003, 117 Stat. 2673.) 


131 CH. 13-DEPENDENCY AND INDEMNITY COMPENSATION Sec. 1323 

ï¿½ 1323. Certifications with respect to circumstances of death 

Whenever the Secretary determines on the basis of a claim for 
benefits filed with the Secretary that a death occurred under the 
circumstances referred to in section 1476(a) of title 10, the 
Secretary 
shall certify that fact to the Secretary concerned. In all other 
cases, the Secretary shall make the determination referred to in 
such section at the request of the Secretary concerned. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1133, Sec. 423; Pub. L. 
94-433, title IV, 
Sec. 405(19), Sept. 30, 1976, 90 Stat. 1380; Pub. L. 102-54, Sec. 
14(b)(4), June 13, 1991, 105 Stat. 283; renumbered Sec. 1323 and 
amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), (3)(A), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 


CHAPTER 15 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


133 




CHAPTER 15-PENSION FOR NON-SERVICE-CONNECTED 
DISABILITY OR DEATH OR FOR SERVICE 

SUBCHAPTER I-GENERAL 

Sec. 
1501. Definitions. 
1502. Determinations with respect to disability. 
1503. Determinations with respect to annual income. 
1504. Persons heretofore having a pensionable status. 
1505. Payment of pension during confinement in penal institutions. 
1506. Resource reports and overpayment adjustments. 
1507. Disappearance. 
1508. Frequency of payment of pension benefits. 


SUBCHAPTER II-VETERANSï¿½ PENSIONS 

Service Pension 

1511. Indian War veterans. 
1512. Spanish-American War veterans. 
1513. Veterans 65 years of age and older. 

Non-Service-Connected Disability Pension 

1521. Veterans of a period of war. 
1522. Net worth limitation. 
1523. Combination of ratings. 
1524. Vocational training for certain pension recipients. 
1525. Protection of health-care eligibility. 


SUBCHAPTER III-PENSIONS TO SURVIVING SPOUSES AND CHILDREN 

Wars Before World War I 

1532. Surviving spouses of Civil War veterans. 
1533. Children of Civil War veterans. 
1534. Surviving spouses of Indian War veterans. 
1535. Children of Indian War veterans. 
1536. Surviving spouses of Spanish-American War veterans. 
1537. Children of Spanish-American War veterans. 


Other Periods of War 

1541. Surviving spouses of veterans of a period of war. 
1542. Children of veterans of a period of war. 
1543. Net worth limitation. 

SUBCHAPTER IV-ARMY, NAVY, AIR FORCE, AND COAST GUARD MEDAL OF 
HONOR ROLL 

1560. Medal of Honor Roll; persons eligible. 
1561. Certificate. 
1562. Special provisions relating to pension.


135 


Sec. 1501 CH. 15-PENSION FOR NON-SERVICE-CONNECTED 
DISABILITY/DEATH 136 

SUBCHAPTER I-GENERAL 

ï¿½ 1501. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½Indian Warsï¿½ï¿½ means the campaigns, engagements, and 
expeditions of the United States military forces against 
Indian tribes or nations, service in which has been recognized 
heretofore as pensionable service. 
(2) The term ï¿½ï¿½World War Iï¿½ï¿½ includes, in the case of any veteran, 
any period of service performed by such veteran after November 11, 
1918, and before July 2, 1921, if such veteran served in the 
active military, naval, or air service after April 5, 1917, and before 
November 12, 1918. 
(3) The term ï¿½ï¿½Civil War veteranï¿½ï¿½ includes a person who served 
in the military or naval forces of the Confederate States of America 
during the Civil War, and the term ï¿½ï¿½active military or naval serviceï¿½ï¿½ 
includes active service in those forces. 
(4) The term ï¿½ï¿½period of warï¿½ï¿½ means the Mexican border period, 
World War I, World War II, the Korean conflict, the Vietnam era, 
the Persian Gulf War, and the period beginning on the date of any 
future declaration of war by the Congress and ending on the date 
prescribed by Presidential proclamation or concurrent resolution of 
the Congress. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1134, Sec. 501; Pub. L. 
94-169, title I, Sec. 
106(1), Dec. 23, 1975, 89 Stat. 1017; Pub. L. 95-588, title I, Sec. 
101, Nov. 4, 1978, 
92 Stat. 2497; Pub. L. 102-25, title III, Sec. 333(a), Apr. 6, 1991, 
105 Stat. 88; renumbered Sec. 1501, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1502. Determinations with respect to disability 

(a) For the purposes of this chapter, a person shall be considered to 
be permanently and totally disabled if such person is any 
of the following: 
(1) A patient in a nursing home for long-term care because 
of disability. 
(2) Disabled, as determined by the Commissioner of Social 
Security for purposes of any benefits administered by the Commissioner. 
(3) Unemployable as a result of disability reasonably certain to 
continue throughout the life of the person. 
(4) Suffering from- 
(A) any disability which is sufficient to render it impossible for the 
average person to follow a substantially 
gainful occupation, but only if it is reasonably certain that 
such disability will continue throughout the life of the person; or 
(B) any disease or disorder determined by the Secretary to be of such a 
nature or extent as to justify a determination that persons suffering 
therefrom are permanently and totally disabled. 
(b) For the purposes of this chapter, a person shall be considered to 
be in need of regular aid and attendance if such person is 
(1) a patient in a nursing home or (2) blind, or so nearly blind or 
significantly disabled as to need or require the regular aid and 
attendance of another person. 

137 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 
1503 

(c) For the purposes of this chapter, the requirement of ï¿½ï¿½permanently 
houseboundï¿½ï¿½ will be considered to have been met when 
the veteran is substantially confined to such veteranï¿½s house (ward 
or clinical areas, if institutionalized) or immediate premises due to 
a disability or disabilities which it is reasonably certain will remain 
throughout such veteranï¿½s lifetime. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1134, Sec. 502; Pub. L. 
88-664, Sec. 6(b), 
Oct. 13, 1964, 78 Stat. 1095; Pub. L. 90-77, title I, Sec. 102, 
Aug. 31, 1967, 81 Stat. 
178; Pub. L. 94-169, title I, Sec. 106(2), Dec. 23, 1975, 89 Stat. 
1017; Pub. L. 94- 
432, title II, Sec. 201, Sept. 30, 1976, 90 Stat. 1369; Pub. L. 
101-508, title VIII, Sec. 
8002(a), Nov. 5, 1990, 104 Stat. 1388-342; renumbered Sec. 1502 and 
amended Pub. 

L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 107- 
103, title II, Sec. 206(a), Dec. 27, 2001, 115 Stat. 990; Pub. L. 
109-233, title V, Sec. 
502(3), June 15, 2006, 120 Stat. 415.) 
ï¿½ 1503. Determinations with respect to annual income 

(a) In determining annual income under this chapter, all payments of 
any kind or from any source (including salary, retirement 
or annuity payments, or similar income, which has been waived, 
irrespective of whether the waiver was made pursuant to statute, 
contract, or otherwise) shall be included except- 
(1) donations from public or private relief or welfare organizations; 
(2) payments under this chapter; 
(3) amounts equal to amounts paid by a spouse of a veteran for the 
expenses of such veteranï¿½s last illness, and by a 
surviving spouse or child of a deceased veteran for- 
(A) such veteranï¿½s just debts, 
(B) the expenses of such veteranï¿½s last illness, and 
(C) the expenses of such veteranï¿½s burial to the extent 
such expenses are not reimbursed under chapter 23 of this 
title; 
(4) amounts equal to amounts paid- 
(A) by a veteran for the last illness and burial of such 
veteranï¿½s deceased spouse or child, or 
(B) by the spouse of a living veteran or the surviving 
spouse of a deceased veteran for the last illness and burial 
of a child of such veteran; 
(5) reimbursements of any kind for any casualty loss (as 
defined in regulations which the Secretary shall prescribe), but 
the amount excluded under this clause may not exceed the 
greater of the fair market value or reasonable replacement 
value of the property involved at the time immediately preceding the 
loss; 
(6) profit realized from the disposition of real or personal 
property other than in the course of a business; 
(7) amounts in joint accounts in banks and similar institutions 
acquired by reason of death of other joint owner; 
(8) amounts equal to amounts paid by a veteran, veteransï¿½ 
spouse, or surviving spouse or by or on behalf of a veteranï¿½s 
child for unreimbursed medical expenses, to the extent that 
such amounts exceed 5 percent of the maximum annual rate 
of pension (including any amount of increased pension payable 
on account of family members but not including any amount of 
pension payable because a person is in need of regular aid and 

Sec. 1504 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/
DEATH 138 

attendance or because a person is permanently housebound) 
payable to such veteran, surviving spouse, or child; 

(9) in the case of a veteran or surviving spouse pursuing 
a course of education or vocational rehabilitation or training, 
amounts equal to amounts paid by such veteran or surviving 
spouse for such course of education or vocational rehabilitation 
or training, including (A) amounts paid for tuition, fees, books, 
and materials, and (B) in the case of such a veteran or surviving 
spouse in need of regular aid and attendance, unreimbursed amounts 
paid for unusual transportation expenses in 
connection with the pursuit of such course of education or vocational
rehabilitation or training, to the extent that such 
amounts exceed the reasonable expenses which would have 
been incurred by a nondisabled person using an appropriate 
means of transportation (public transportation, if reasonably 
available); 
(10) in the case of a child, any current-work income received during 
the year, to the extent that the total amount of 
such income does not exceed an amount equal to the sum of- 
(A) the lowest amount of gross income for which an income tax return 
is required under section 6012(a) of the 
Internal Revenue Code of 1986, to be filed by an individual 
who is not married (as determined under section 7703 of 
such Code), is not a surviving spouse (as defined in section 
2(a) of such Code), and is not a head of household (as defined in 
section 2(b) of such Code); and 
(B) if the child is pursuing a course of postsecondary 
education or vocational rehabilitation or training, the 
amount paid by such child for such course of education or 
vocational rehabilitation or training, including the amount 
paid for tuition, fees, books, and materials; and 
(11) lump-sum proceeds of any life insurance policy on a 
veteran, for purposes of pension under subchapter III of this 
chapter. 
(b) Where a fraction of a dollar is involved, annual income 
shall be fixed at the next lower dollar. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1134, Sec. 503; Pub. 
L. 86-211, Sec. 2(a), 
Aug. 29, 1959, 73 Stat. 432; Pub. L. 87-268, Sec. 1(b), Sept. 
21, 1961, 75 Stat. 566; 
Pub. L. 88-664, Sec. 1, Oct. 13, 1964, 78 Stat. 1094; Pub. L. 
90-77, title I, Sec. 103, 
Aug. 31, 1967, 81 Stat. 178; Pub. L. 91-588, Sec. 7, Dec. 24, 
1970, 84 Stat. 1584; 
Pub. L. 92-198, Sec. 2, Dec. 15, 1971, 85 Stat. 664; Pub. L. 
92-425, Sec. 6(2), Sept. 
21, 1972, 86 Stat. 713; Pub. L. 94-169, title I, Sec. 101(2)(A), 
106(3)-(8), Dec. 23, 
1975, 89 Stat. 1013, 1017; Pub. L. 95-588, title I, Sec. 102, 
Nov. 4, 1978, 92 Stat. 
2497; Pub. L. 97-295, Sec. 4(13), Oct. 12, 1982, 96 Stat. 1305; 
Pub. L. 100-687, div. 
B, title XIV, Sec. 1402(b), Nov. 18, 1988, 102 Stat. 4130; 
Pub. L. 102-54, Sec. 
14(b)(5), June 13, 1991, 105 Stat. 283; renumbered Sec. 1503 
and amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 108-454, 
title III, Sec. 303, Dec. 10, 2004, 118 Stat. 3611.) 

ï¿½ 1504. Persons heretofore having a pensionable status 

The pension benefits of subchapters II and III of this chapter 
shall, notwithstanding the service requirements of such sub-
chapters, be granted to persons heretofore recognized by law as 
having a pensionable status. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1134, Sec. 504; 
renumbered Sec. 1504, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

139 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 
Sec. 1506 

ï¿½ 1505. Payment of pension during confinement in penal 
institutions 

(a) No pension under public or private laws administered by 
the Secretary shall be paid to or for an individual who has been 
imprisoned in a Federal, State, local, or other penal institution or 
correctional facility as a result of conviction of a felony or 
misdemeanor for any part of the period beginning sixty-one days after 
such individualï¿½s imprisonment begins and ending when such individualï¿½s 
imprisonment ends. 
(b) Where any veteran is disqualified for pension for any period 
solely by reason of subsection (a) of this section, the Secretary may 
apportion and pay to such veteranï¿½s spouse or children the pension 
which such veteran would receive for that period but for this section. 
(c) Where any surviving spouse or child of a veteran is disqualified 
for pension for any period solely by reason of subsection 
(a) of this section, the Secretary may (1) if the surviving spouse is 
so disqualified, pay to the child, or children, the pension which 
would be payable if there were no such surviving spouse or (2) if 
a child is so disqualified, pay to the surviving spouse or other 
children, as applicable, the pension which would be payable if there 
were no such child. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1134, Sec. 505; Pub. L. 
94-169, title I, Sec. 
106(9)-(11), Dec. 23, 1975, 89 Stat. 1017; renumbered Sec. 1505 and 
amended Pub. 

L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
403-406; Pub. L. 
109-461, title X, Sec. 1002(a), Dec. 22, 2006, 120 Stat. 3464.) 
ï¿½ 1506. Resource reports and overpayment adjustments 

As a condition of granting or continuing pension under section 
1521, 1541, or 1542 of this title, the Secretary- 

(1) may require from any person who is an applicant for 
or a recipient of pension such information, proofs, and evidence 
as the Secretary determines to be necessary in order to determine the 
annual income and the value of the corpus of the estate of such person, 
and of any spouse or child for whom the 
person is receiving or is to receive increased pension (such a 
child is hereinafter in this subsection referred to as a ï¿½ï¿½dependent 
childï¿½ï¿½), and, in the case of a child applying for or in receipt 
of pension under section 1542 of this title (hereinafter in this 
subsection referred to as a ï¿½ï¿½surviving childï¿½ï¿½), of any person 
with whom such child is residing who is legally responsible for 
such childï¿½s support; 
(2) may require that any such applicant or recipient file for 
a calendar year with the Department (on such form as may be 
prescribed for such purpose by the Secretary) a report showing- 
(A) the annual income which such applicant or recipient (and any such 
spouse or dependent child) received during the preceding year, the 
corpus of the estate of such applicant or recipient (and of any such 
spouse or dependent 
child) at the end of such year, and in the case of a surviving child, 
the income and corpus of the estate of any 
person with whom such child is residing who is legally responsible for 
such childï¿½s support; 

Sec. 1507 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 140 

(B) such applicantï¿½s or recipientï¿½s estimate for the then 
current year of the annual income such applicant or recipient (and any 
such spouse or dependent child) expects to receive and of any expected 
increase in the value of the corpus of the estate of such applicant or 
recipient (and for any 
such spouse or dependent child); and 
(C) in the case of a surviving child, an estimate for the 
then current year of the annual income of any person with 
whom such child is residing who is legally responsible for 
such childï¿½s support and of any expected increase in the 
value of the corpus of the estate of such person; 
(3) shall require that any such applicant or recipient 
promptly notify the Secretary whenever there is a material 
change in the annual income of such applicant or recipient (or 
of any such spouse or dependent child) or a material change 
in the value of the corpus of the estate of such applicant or recipient 
(or of any such spouse or dependent child), and in the 
case of a surviving child, a material change in the annual income or 
value of the corpus of the estate of any person with 
whom such child is residing who is legally responsible for such 
childï¿½s support; and 
(4) shall require that any such applicant or recipient applying for or 
in receipt of increased pension on account of a 
person who is a spouse or child of such applicant or recipient 
promptly notify the Secretary if such person ceases to meet the 
applicable definition of spouse or child. 
(Added Pub. L. 86-211, Sec. 2(b), Aug. 29, 1959, 73 Stat. 432, Sec. 
506; amended 
Pub. L. 88-664, Sec. 2, Oct. 13, 1964, 78 Stat. 1094; Pub. L. 91-588, 
Sec. 6, Dec. 
24, 1970, 84 Stat. 1584; Pub. L. 94-169, title I, Sec. 106(12)-(14), 
Dec. 23, 1975, 89 
Stat. 1017; Pub. L. 95-588, title I, Sec. 103, Nov. 4, 1978, 92 Stat. 
2498; Pub. L. 
96-466, title VI, Sec. 605(c)(2), Oct. 17, 1980, 94 Stat. 2211; 
renumbered Sec. 1506 
and amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 
105 Stat. 404-406; Pub. L. 103-271, Sec. 9(b), July 1, 1994, 108 
Stat. 743.) 

ï¿½ 1507. Disappearance 

Where a veteran receiving pension under subchapter II of this 
chapter disappears, the Secretary may pay the pension otherwise 
payable to such veteranï¿½s spouse and children. In applying the 
provisions of this section, the Secretary may presume, without reports 
pursuant to section 1506(a) of this title, that the status of the 
veteran at the time of disappearance, with respect to permanent and 
total disability, income, and net worth, continues unchanged. Payments 
made to a spouse or child under this section shall not exceed 
the amount to which each would be entitled if the veteran died of 
a non-service-connected disability. 

(Added Pub. L. 89-467, Sec. 1(a), June 22, 1966, 80 Stat. 218, Sec. 
507; amended 
Pub. L. 94-169, title I, Sec. 106(15), Dec. 23, 1975, 89 Stat. 1017; 
renumbered Sec. 
1507 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1508. Frequency of payment of pension benefits 

(a) Except as provided under subsection (b) of this section, benefits 
under sections 1521, 1541, and 1542 of this title shall be paid 
monthly. 

141 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 
1511 

(b) Under regulations which the Secretary shall prescribe, benefits 
under sections 1521, 1541, and 1542 of this title may be paid 
less frequently than monthly if the amount of the annual benefit 
is less than 4 percent of the maximum annual rate payable to a 
veteran under section 1521(b) of this title. 
(Added Pub. L. 95-588, title I, Sec. 104(a), Nov. 4, 1978, 92 Stat. 
2499, Sec. 508; 
amended Pub. L. 102-54, Sec. 14(b)(6), June 13, 1991, 105 Stat. 
283; renumbered 
Sec. 1508 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 
105 Stat. 404-406.) 

SUBCHAPTER II-VETERANSï¿½ PENSIONS 

SERVICE PENSION 

ï¿½ï¿½ 1510. Vacantï¿½ 

ï¿½ 1511. Indian War veterans 

(a) The Secretary shall pay to each veteran of the Indian Wars 
who meets the service requirements of this section a pension at the 
following monthly rate: 
(1) $101.59; or 
(2) $135.45 if the veteran is in need of regular aid and attendance. 
(b) A veteran meets the service requirements of this section if 
such veteran served in one of the Indian Wars- 
(1) for thirty days or more; or 
(2) for the duration of such Indian War; 
in any military organization, whether or not such service was the 
result of regular muster into the service of the United States, if 
such service was under the authority or by the approval of the 
United States or any State. 
(c)(1) Any veteran eligible for pension under this section shall, 
if such veteran so elects, be paid pension at the rates prescribed 
by section 1521 of this title, and under the conditions (other than 
the service requirements) applicable to pension paid under that 
section to veterans of World War I. If pension is paid pursuant to 
such an election, the election shall be irrevocable, except as 
provided in paragraph (2). 

(2) The Secretary shall pay each month to each veteran of the 
Indian Wars who is receiving, or entitled to receive, pension based 
on a need of regular aid and attendance, whichever amount is 
greater (A) that provided by paragraph (2) of subsection (a) of this 
section, or (B) that which is payable to the veteran under section 
1521 of this title if such veteran has elected, or would be payable 
if such veteran were to elect, to receive pension under such section 
pursuant to paragraph (1) of this subsection. Each change in the 
amount of pension payment required by this paragraph shall be 
effective as of the first day of the month during which the facts of 
the particular case warrant such change, and shall be made without 
specific application therefor. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1135, Sec. 511; Pub. L. 
86-670, Sec. 1, July 
14, 1960, 74 Stat. 545; Pub. L. 90-77, title I, Sec. 111(a), Aug. 
31, 1967, 81 Stat. 
181; Pub. L. 94-169, title I, Sec. 106(16), Dec. 23, 1975, 89 Stat. 
1017; renumbered 
Sec. 1511 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 
105 Stat. 404-406.) 


Sec. 1512 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/
DEATH 142 

ï¿½ 1512. Spanish-American War veterans 

(a)(1) The Secretary shall pay to each veteran of the Spanish-
American War who meets the service requirements of this subsection 
a pension at the following monthly rate: 

(A) $101.59; or 
(B) $135.45 if the veteran is in need of regular aid and attendance. 
(2) A veteran meets the service requirements of this subsection 
if such veteran served in the active military or naval service- 
(A) for ninety days or more during the Spanish-American 
War; 
(B) during the Spanish-American War and was discharged 
or released from such service for a service-connected disability; 
or 
(C) for a period of ninety consecutive days or more and 
such period began or ended during the Spanish-American War. 
(3)(A) Any veteran eligible for pension under this subsection 
shall, if such veteran so elects, be paid pension at the rates 
prescribed by section 1521 of this title (except the rate provided under 
subsection (g) of such section), and under the conditions (other than 
the service requirements) applicable to pension paid under that 
section to veterans of a period of war. If pension is paid pursuant 
to such an election, the election shall be irrevocable. 

(B) The Secretary shall pay each month to each Spanish-American War 
veteran who is receiving, or entitled to receive, pension 
based on a need of regular aid and attendance, whichever amount 
is greater (i) that provided by subparagraph (B) of subsection (a)(1) 
of this section, or (ii) that which is payable to the veteran under 
section 1521 of this title as in effect on December 31, 1978, under 
regulations which the Secretary shall prescribe. Each change in the 
amount of pension payment required by this subparagraph shall be 
effective as of the first day of the month during which the facts of 
the particular case warrant such change, and shall be made without 
specific application therefor. 
(b)(1) The Secretary shall pay to each veteran of the Spanish-
American War who does not meet the service requirements of subsection 
(a), but who meets the service requirements of this subsection, a 
pension at the following monthly rate: 

(A) $67.73; or 
(B) $88.04 if the veteran is in need of regular aid and attendance. 
(2) A veteran meets the service requirements of this subsection 
if such veteran served in the active military or naval service- 
(A) for seventy days or more during the Spanish-American 
War; or 
(B) for a period of seventy consecutive days or more and 
such period began or ended during the Spanish-American War. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1135, Sec. 512; Pub. L. 
86-670, Sec. 2, July 14, 1960, 74 Stat. 545; Pub. L. 90-77, title I, 
Sec. 111(b), Aug. 31, 1967, 81 Stat. 181; Pub. L. 94-169, title I, 
Sec. 106(17), Dec. 23, 1975, 89 Stat. 1017; Pub. L. 95-588, title I, 
Sec. 105, Nov. 4, 1978, 92 Stat. 2500; renumbered Sec. 1512 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406.) 


143 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 
Sec. 1521 

ï¿½ 1513. Veterans 65 years of age and older 

(a) The Secretary shall pay to each veteran of a period of war 
who is 65 years of age or older and who meets the service requirements 
of section 1521 of this title (as prescribed in subsection (j) 
of that section) pension at the rates prescribed by section 1521 of 
this title and under the conditions (other than the permanent and 
total disability requirement) applicable to pension paid under that 
section. 
(b) If a veteran is eligible for pension under both this section 
and section 1521 of this title, pension shall be paid to the veteran 
only under section 1521 of this title. 
(Added Pub. L. 107-103, title II, Sec. 207(a)(1), Dec. 27, 2001, 115 
Stat. 991; amended Pub. L. 109-233, title V, Sec. 503(2), June 15, 
2006, 120 Stat. 416.) 

NON-SERVICE-CONNECTED DISABILITY PENSION 

ï¿½ 1521. Veterans of a period of war 

(a) The Secretary shall pay to each veteran of a period of war 
who meets the service requirements of this section (as prescribed 
in subsection (j) of this section) and who is permanently and totally 
disabled from non-service-connected disability not the result of the 
veteranï¿½s willful misconduct, pension at the rate prescribed by this 
section, as increased from time to time under section 5312 of this 
title. 
(b) If the veteran is unmarried (or married but not living with 
or reasonably contributing to the support of such veteranï¿½s spouse) 
and there is no child of the veteran in the custody of the veteran 
or to whose support the veteran is reasonably contributing, and unless 
the veteran is entitled to pension at the rate provided by subsection 
(d)(1) or (e) of this section, pension shall be paid to the veteran at 
the annual rate of $3,550, reduced by the amount of the 
veteranï¿½s annual income. 
(c) If the veteran is married and living with or reasonably 
contributing to the support of such veteranï¿½s spouse, or if there is a 
child of the veteran in the custody of the veteran or to whose support 
the veteran is reasonably contributing, pension shall be paid 
to the veteran at the annual rate of $4,651, unless the veteran is 
entitled to pension at the rate provided by subsection (d)(2), (e), or 
(f) of this section. If the veteran has two or more such family 
members, such annual rate shall be increased by $600 for each such 
family member in excess of one. The rate payable shall be reduced 
by the amount of the veteranï¿½s annual income and, subject to subsection 
(h)(1) of this section, the amount of annual income of such 
family members. 
(d)(1) If the veteran is in need of regular aid and attendance, 
the annual rate of pension payable to the veteran under subsection 

(b) of this section shall be $5,680, reduced by the amount of the 
veteranï¿½s annual income. 
(2) If the veteran is in need of regular aid and attendance, the 
annual rate of pension payable to the veteran under subsection (c) 
of this section shall be $6,781. If such veteran has two or more 
family members, as described in subsection (c) of this section, the 
annual rate of pension shall be increased by $600 for each such 
family member in excess of one. The rate payable shall be reduced 

Sec. 1521 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 144 

by the amount of the veteranï¿½s annual income and, subject to subsection 
(h)(1) of this section, the amount of annual income of such 
family members. 

(e) If the veteran has a disability rated as permanent and total 
and (1) has additional disability or disabilities independently ratable 
at 60 per centum or more, or (2) by reason of a disability or 
disabilities, is permanently housebound but does not qualify for 
pension at the aid and attendance rate provided by subsection (d) 
of this section, the annual rate of pension payable to the veteran 
under subsection (b) of this section shall be $4,340 and the annual 
rate of pension payable to the veteran under subsection (c) of this 
section shall be $5,441. If such veteran has two or more family 
members, as described in subsection (c) of this section, the annual 
rate of pension shall be increased by $600 for each such family 
member in excess of one. The rate payable shall be reduced by the 
amount of the veteranï¿½s annual income and, subject to subsection 
(h)(1) of this section, the annual income of such family members. 
(f)(1) If two veterans are married to one another and each 
meets the disability and service requirements prescribed in subsections 
(a) and (j), respectively, of this section, or the age and service 
requirements prescribed in section 1513 of this title, the annual rate 
of pension payable to such veterans shall be a combined 
annual rate of $4,651. 

(2) If either such veteran is in need of regular aid and attendance, 
the annual rate provided by paragraph (1) of this subsection 
shall be $6,781. If both such veterans are in need of regular aid 
and attendance, such rate shall be $8,911. 
(3) If either such veteran would be entitled (if not married to 
a veteran) to pension at the rate provided by subsection (e) of this 
section, the annual rate provided by paragraph (1) of this subsection 
shall be $5,441. If both such veterans would be entitled (if 
not married to one another) to such rate, such rate shall be $6,231. 
(4) If one such veteran is in need of regular aid and attendance 
and the other would be entitled (if not married to a veteran) to the 
rate provided for under subsection (e) of this section, the annual 
rate provided by paragraph (1) of this subsection shall be $7,571. 
(5) The annual rate provided by paragraph (1), (2), (3), or (4) 
of this subsection, as appropriate, shall (A) be increased by $600 
for each child of such veterans (or of either such veteran) who is 
in the custody of either or both such veterans or to whose support 
either such veteran is, or both such veterans are, reasonably 
contributing, and (B) be reduced by the amount of the annual income 
of both such veterans and, subject to subsection (h)(1) of this 
section, the annual income of each such child. 
(g) The annual rate of pension payable under subsection (b), 
(c), (d), (e), or (f) of this section to any veteran who is a veteran 
of a period of war shall be increased by $800 if veterans of such 
period of war were not provided educational benefits or home loan 
benefits similar to those provided to veterans of later periods of 
war under chapters 34 and 37, respectively, of this title or under 
prior corresponding provisions of law. 
(h) For the purposes of this section: 
(1) In determining the annual income of a veteran, if there 
is a child of the veteran who is in the custody of the veteran 

145 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1522 

or to whose support the veteran is reasonably contributing, 
that portion of the annual income of the child that is reasonably 
available to or for the veteran shall be considered to be 
income of the veteran, unless in the judgment of the Secretary 
to do so would work a hardship on the veteran. 

(2) A veteran shall be considered as living with a spouse, 
even though they reside apart, unless they are estranged. 
(i) If the veteran is entitled under this section to pension on 
the basis of such veteranï¿½s own service and is also entitled to pension 
on the basis of any other personï¿½s service, the Secretary shall 
pay such veteran only the greater benefit. 
(j) A veteran meets the service requirements of this section if 
such veteran served in the active military, naval, or air service- 
(1) for ninety days or more during a period of war; 
(2) during a period of war and was discharged or released 
from such service for a service-connected disability; 
(3) for a period of ninety consecutive days or more and 
such period began or ended during a period of war; or 
(4) for an aggregate of ninety days or more in two or more 
separate periods of service during more than one period of war. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1136, Sec. 521; Pub. L. 
86-211, Sec. 3(a), Aug. 29, 1959, 73 Stat. 433; Pub. L. 87-101, Sec. 1, 
July 21, 1961, 75 Stat. 218; Pub. L. 88-664, Sec. 3(a), (b), 5, 6(a), 
7, Oct. 13, 1964, 78 Stat. 1094, 1095; Pub. L. 90-77, title I, Sec. 
104, title II, Sec. 202(a)-(c), Aug. 31, 1967, 81 Stat. 179, 182; 
Pub. L. 90-275, Sec. 1(a), (b), Mar. 28, 1968, 82 Stat. 64, 65; Pub. 
L. 91-588, Sec. 1(a), (b), 3(b), 9(c), Dec. 24, 1970, 84 Stat. 1580, 
1583, 1584; Pub. L. 92-198, Sec. 1(a), (b), 5(b), Dec. 15, 1971, 85 
Stat. 663, 664; Pub. L. 93-177, Sec. 1(a), (b), Dec. 6, 1973, 87 Stat. 
694; Pub. L. 93-527, Sec. 2, Dec. 21, 1974, 88 Stat. 1702; Pub. L. 
94-169, title I, Sec. 102, 106(18), Dec. 23, 1975, 89 Stat. 1014, 1018; 
Pub. L. 94-432, title II, Sec. 202, Sept. 30, 1976, 90 Stat. 1369; Pub. 
L. 95-204, title I, Sec. 101, Dec. 2, 1977, 91 Stat. 1455; Pub. L. 
95-588, title I, Sec. 106(a), Nov. 4, 1978, 92 Stat. 2500; Pub. L. 
102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 1521 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 107-103, title II, 
Sec. 207(b)(1), Dec. 27, 2001, 
115 Stat. 991.) 
ï¿½ 1522. Net worth limitation 

(a) The Secretary shall deny or discontinue the payment of 
pension to a veteran under section 1513 or 1521 of this title when 
the corpus of the estate of the veteran or, if the veteran has a 
spouse, the corpus of the estates of the veteran and of the veteranï¿½s 
spouse is such that under all the circumstances, including 
consideration of the annual income of the veteran, the veteranï¿½s spouse, 
and the veteranï¿½s children, it is reasonable that some part of the 
corpus of such estates be consumed for the veteranï¿½s maintenance. 
(b) The Secretary shall deny or discontinue the payment of increased 
pension under subsection (c), (d), (e), or (f) of section 1521 
of this title on account of a child when the corpus of such childï¿½s 
estate is such that under all the circumstances, including 
consideration of the veteranï¿½s and spouseï¿½s income, and the income of 
the veteranï¿½s children, it is reasonable that some part of the corpus of 
such childï¿½s estate be consumed for the childï¿½s maintenance. During 
the period such denial or discontinuance remains in effect, such 
child shall not be considered as the veteranï¿½s child for purposes of 
this chapter. 

Sec. 1523 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 146 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1136, Sec. 522; Pub. L. 86-211, 
Sec. 3(b), Aug. 29, 1959, 73 Stat. 434; Pub. L. 95-588, title I, Sec. 
107, Nov. 4, 1978, 92 Stat. 2502; renumbered Sec. 1522 and amended Pub. 
L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 107-103, title II, Sec. 207(b)(2), Dec. 
27, 2001, 115 Stat. 991.) 

ï¿½ 1523. Combination of ratings 

(a) The Secretary shall provide that, for the purpose of determining 
whether or not a veteran is permanently and totally disabled, ratings 
for service-connected disabilities may be combined 
with ratings for non-service-connected disabilities. 
(b) Where a veteran, by virtue of subsection (a), is found to be 
entitled to a pension under section 1521 of this title, and is entitled 
to compensation for a service-connected disability, the Secretary 
shall pay such veteran the greater benefit. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1136, Sec. 523; Pub. L. 
94-169, title I, Sec. 106(19), Dec. 23, 1975, 89 Stat. 1018; renumbered 
Sec. 1523 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1524. Vocational training for certain pension recipients 

(a)(1) In the case of a veteran under age 45 who is awarded 
a pension during the program period, the Secretary shall, based on 
information on file with the Department of Veterans Affairs, make 
a preliminary finding whether such veteran, with the assistance of 
a vocational training program under this section, has a good potential 
for achieving employment. If such potential is found to exist, 
the Secretary shall solicit from the veteran an application for 
vocational training under this section. If the veteran thereafter 
applies for such training, the Secretary shall provide the veteran 
with an evaluation, which may include a personal interview, to determine 
whether the achievement of a vocational goal is reasonably feasible. 

(2) If a veteran who is 45 years of age or older and is awarded 
pension during the program period, or a veteran who was awarded 
pension before the beginning of the program period, applies for 
vocational training under this section and the Secretary makes a 
preliminary finding on the basis of information in the application that, 
with the assistance of a vocational training program under subsection 
(b) of this section, the veteran has a good potential for 
achieving employment, the Secretary shall provide the veteran 
with an evaluation in order to determine whether the achievement 
of a vocational goal by the veteran is reasonably feasible. Any such 
evaluation shall include a personal interview by a Department employee 
trained in vocational counseling. 
(3) For the purposes of this section, the term ï¿½ï¿½program periodï¿½ï¿½ 
means the period beginning on February 1, 1985, and ending on 
December 31, 1995. 
(b)(1) If the Secretary, based upon an evaluation under subsection (a) 
of this section, determines that the achievement of a vocational goal 
by a veteran is reasonably feasible, the veteran shall 
be offered and may elect to pursue a vocational training program 
under this subsection. If the veteran elects to pursue such a program, 
the program shall be designed in consultation with the veteran in 
order to meet the veteranï¿½s individual needs and shall be 


147 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1524 

set forth in an individualized written plan of vocational 
rehabilitation of the kind described in section 3107 of this title. 

(2)(A) Subject to subparagraph (B) of this paragraph, a vocational 
training program under this subsection shall consist of vocationally 
oriented services and assistance of the kind provided under 
chapter 31 of this title and such other services and assistance of 
the kind provided under that chapter as are necessary to enable 
the veteran to prepare for and participate in vocational training or 
employment. 

(B) A vocational training program under this subsection- 
(i) may not exceed 24 months unless, based on a determination by the 
Secretary that an extension is necessary in 
order for the veteran to achieve a vocational goal identified (before 
the end of the first 24 months of such program) in the 
written plan formulated for the veteran, the Secretary grants 
an extension for a period not to exceed 24 months; 
(ii) may not include the provision of any loan or subsistence allowance 
or any automobile adaptive equipment of the 
kind provided under chapter 39 of this title; and 
(iii) may include a program of education at an institution 
of higher learning (as defined in sections 3452(b) and 3452(f), 
respectively, of this title) only in a case in which the Secretary 
determines that the program involved is predominantly vocational in 
content. 
(3) When a veteran completes a vocational training program 
under this subsection, the Secretary may provide the veteran with 
counseling of the kind described in section 3104(a)(2) of this title, 
placement and postplacement services of the kind described in section 
3104(a)(5) of this title, and training of the kind described in 
section 3104(a)(6) of this title during a period not to exceed 18 
months beginning on the date of such completion. 
(4) A veteran may not begin pursuit of a vocational training 
program under this subsection after the later of (A) December 31, 
1995, or (B) the end of a reasonable period of time, as determined 
by the Secretary, following either the evaluation of the veteran 
under subsection (a) of this section or the award of pension to the 
veteran as described in subsection (a)(2) of this section. Any 
determination by the Secretary of such a reasonable period of time shall 
be made pursuant to regulations which the Secretary shall prescribe. 
(c) In the case of a veteran who has been determined to have 
a permanent and total non-service-connected disability and who, 
not later than one year after the date the veteranï¿½s eligibility for 
counseling under subsection (b)(3) of this section expires, secures 
employment within the scope of a vocational goal identified in the 
veteranï¿½s individualized written plan of vocational rehabilitation (or 
in a related field which requires reasonably developed skills and 
the use of some or all of the training or services furnished the 
veteran under such plan), the evaluation of the veteran as having a 
permanent and total disability may not be terminated by reason of 
the veteranï¿½s capacity to engage in such employment until the veteran 
first maintains such employment for a period of not less than 
12 consecutive months. 

Sec. 1525 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 148 

(d) A veteran who pursues a vocational training program under 
subsection (b) of this section shall have the benefit of the provisions 
of subsection (a) of section 1525 of this title beginning at such time 
as the veteranï¿½s entitlement to pension is terminated by reason of 
income from work or training (as defined in subsection (b)(1) of 
that section) without regard to the date on which the veteranï¿½s 
entitlement to pension is terminated. 
(e) Payments by the Secretary for education, training, and 
other services and assistance under subsection (b) of this section 
(other than the services of Department employees) shall be made 
from the Department appropriations account from which payments 
for pension are made. 
(Added Pub. L. 98-543, title III, Sec. 301(a)(1), Oct. 24, 1984, 98 
Stat. 2744, Sec. 524; amended Pub. L. 99-576, title VII, 
Sec. 703(b)(1), Oct. 28, 1986, 100 Stat. 3303; 
Pub. L. 100-227, title II, Sec. 202, Dec. 31, 1987, 101 Stat. 1555; 
Pub. L. 100-687, div. B, title XIII, Sec. 1303(a), (b), Nov. 18, 
1988, 102 Stat. 4128; Pub. L. 101-237, title I, Sec. 114, Dec. 18, 
1989, 103 Stat. 2065; renumbered Sec. 1524 and amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 102-291, Sec. 2(b), May 20, 1992, 106 Stat. 178; 
Pub. L. 102-568, title IV, Sec. 402(a)-(c)(2)(A), Oct. 29, 1992, 106 
Stat. 4337; Pub. L. 103-446, title 
XII, Sec. 1201(g)(2), Nov. 2, 1994, 108 Stat. 4687.) 

ï¿½ 1525. Protection of health-care eligibility 

(a) In the case of a veteran whose entitlement to pension is terminated 
after January 31, 1985, by reason of income from work or 
training, the veteran shall retain for a period of three years 
beginning on the date of such termination all eligibility for care and 
services under such chapter that the veteran would have had if the 
veteranï¿½s entitlement to pension had not been terminated. Care 
and services for which such a veteran retains eligibility include, 
when applicable, drugs and medicines under section 1712(d) of this 
title. 
(b) For purposes of this section, the term ï¿½ï¿½terminated by reason of 
income from work or trainingï¿½ï¿½ means terminated as a result 
of the veteranï¿½s receipt of earnings from activity performed for 
remuneration or with gain, but only if the veteranï¿½s annual income 
from sources other than such earnings would, taken alone, not result in 
the termination of the veteranï¿½s pension. (Added Pub. L. 98-543, title 
III, Sec. 301(a)(1), Oct. 24, 1984, 98 Stat. 2746, Sec. 525; amended 
Pub. L. 99-272, title XIX, Sec. 19011(d)(1), Apr. 7, 1986, 100 Stat. 
378; Pub. L. 99-576, title VII, Sec. 703(b)(2), Oct. 28, 1986, 100 
Stat. 3303; Pub. L. 100-687, div. B, title XIII, Sec. 1303(c), Nov. 18, 
1988, 102 Stat. 4128; renumbered Sec. 1525 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-291, 
Sec. 2(c), May 20, 1992, 106 Stat. 178; Pub. L. 102-568, title IV, Sec. 
403(a), (b)(1), Oct. 29, 1992, 106 Stat. 4337; Pub. L. 104-262, title I, 
Sec. 101(e)(1), Oct. 9, 1996, 110 Stat. 3180.) 

149 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1534 

SUBCHAPTER III-PENSIONS TO SURVIVING SPOUSES AND 
CHILDREN 

WARS BEFORE WORLD WAR I 

ï¿½ï¿½ 1531. Vacantï¿½ 

ï¿½ 1532. Surviving spouses of Civil War veterans 

(a) The Secretary shall pay to the surviving spouse of each 
Civil War veteran who met the service requirements of this section 
a pension at the following monthly rate: 
(1) $40.64 if such surviving spouse is below seventy years 
of age; or 
(2) $70 if such surviving spouse is seventy years of age or 
older. 
(b) If there is a child of the veteran, the rate of pension paid 
to the surviving spouse under subsection (a) shall be increased by 
$8.13 per month for each such child. 
(c) A veteran met the service requirements of this section if 
such veteran served for ninety days or more in the active military 
or naval service during the Civil War, as heretofore defined under 
public laws administered by the Veteransï¿½ Administration, or if 
such veteran was discharged or released from such service upon a 
surgeonï¿½s certificate of disability. 
(d) No pension shall be paid to a surviving spouse of a veteran 
under this section unless such surviving spouse was married to 
such veteran- 
(1) before June 27, 1905; or 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. (Pub. L. 85-857, Sept. 2, 1958, 72 
Stat. 1137, Sec. 532; Pub. L. 90-77, title I, Sec. 101(a), 105, Aug. 
31, 1967, 81 Stat. 178, 179; Pub. L. 94-169, title I, Sec. 106(20)- 
(23), Dec. 23, 1975, 89 Stat. 1018; Pub. L. 102-54, Sec. 14(b)(7), 
June 13, 1991, 105 Stat. 283; renumbered Sec. 1532 and amended Pub. L. 
102-83, Sec. 4(a)(1), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
403-406; Pub. L. 103-446, title XII, Sec. 
1201(a)(2), Nov. 2, 1994, 108 Stat. 4682.) 

ï¿½ 1533. Children of Civil War veterans 

Whenever there is no surviving spouse entitled to pension 
under section 1532 of this title, the Secretary shall pay to the 
children of each Civil War veteran who met the service requirements 
of section 1532 of this title a pension at the monthly rate of $73.13 
for one child, plus $8.13 for each additional child, with the total 
amount equally divided. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1137, Sec. 533; Pub. L. 
94-169, title I, Sec. 106(25), Dec. 23, 1975, 89 Stat. 1018; renumbered 
Sec. 1533 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1534. Surviving spouses of Indian War veterans 

(a) The Secretary shall pay to the surviving spouse of each Indian War 
veteran who met the service requirements of section 1511 
of this title a pension at the following monthly rate: 
(1) $40.64 if such surviving spouse is below seventy years 
of age; or 

Sec. 1535 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 150 

(2) $70 if such surviving spouse is seventy years of age or 
older. 
(b) If there is a child of the veteran, the rate of pension paid 
to the surviving spouse under subsection (a) shall be increased by 
$8.13 per month for each such child. 
(c) No pension shall be paid to a surviving spouse of a veteran 
under this section unless such surviving spouse was married to 
such veteran- 
(1) before March 4, 1917; or 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. (Pub. L. 85-857, Sept. 2, 1958, 72 
Stat. 1137, Sec. 534; Pub. L. 90-77, title I, Sec. 101(a), 105, Aug. 
31, 1967, 81 Stat. 178, 179; Pub. L. 94-169, title I, Sec. 106(26)- 
(29), Dec. 23, 1975, 89 Stat. 1018; Pub. L. 102-54, Sec. 14(b)(7), 
June 13, 1991, 105 Stat. 283; renumbered Sec. 1534 and amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1535. Children of Indian War veterans 

Whenever there is no surviving spouse entitled to pension 
under section 1534 of this title, the Secretary shall pay to the 
children of each Indian War veteran who met the service requirements 
of section 1511 of this title a pension at the monthly rate of $73.13 
for one child, plus $8.13 for each additional child, with the total 
amount equally divided. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1137, Sec. 535; Pub. L. 
94-169, title I, Sec. 106(31), Dec. 23, 1975, 89 Stat. 1018; 
renumbered Sec. 1535 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1536. Surviving spouses of Spanish-American War veterans 

(a) The Secretary shall pay to the surviving spouse of each 
Spanish-American War veteran who met the service requirements 
of section 1512(a) of this title a pension at the monthly rate of $70, 
unless such surviving spouse was the spouse of the veteran during 
such veteranï¿½s service in the Spanish-American War, in which case 
the monthly rate shall be $75. 
(b) If there is a child of the veteran, the rate of pension paid 
to the surviving spouse under subsection (a) shall be increased by 
$8.13 per month for each such child. 
(c) No pension shall be paid to a surviving spouse of a veteran 
under this section unless such surviving spouse was married to 
such veteran- 
(1) before January 1, 1938; or 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. (d)(1) Any surviving spouse eligible 
for pension under this section shall, if such surviving spouse so 
elects, be paid pension at the rates prescribed by section 1541 of this 
title, and under the conditions (other than the service requirements) 
applicable to pension paid under that section to surviving spouses of 
veterans of a period of war. If pension is paid pursuant to such an 
election, the election shall be irrevocable. 

(2) The Secretary shall pay each month to the surviving spouse 
of each Spanish-American War veteran who is receiving, or entitled 

151 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1541 

to receive, pension based on a need of regular aid and attendance, 
whichever amount is greater (A) that which is payable to such surviving 
spouse under subsections (a) and (b) of this section as increased by 
section 544 of this title, as in effect on December 31, 
1978; or (B) that which is payable under section 1541 of this title, 
as in effect on December 31, 1978, as increased by such section 
544, as in effect on such date, to a surviving spouse of a World War 
I veteran with the same annual income and corpus of estate. Each 
change in the amount of pension required by this paragraph shall 
be effective as of the first day of the month during which the facts 
of the particular case warrant such change, and shall be made 
without specific application therefor. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1138, Sec. 536; Pub. L. 90-77, 
title I, Sec. 101(a), 105, Aug. 31, 1967, 81 Stat. 178, 179; Pub. L. 
92-328, title I, Sec. 107, June 30, 1972, 86 Stat. 395; Pub. L. 94-169, 
title I, Sec. 106(32)-(37), Dec. 23, 1975, 89 Stat. 1018, 1019; Pub. L. 
95-588, title I, Sec. 108, Nov. 4, 1978, 92 Stat. 2502; renumbered 
Sec. 1536 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1537. Children of Spanish-American War veterans 

Whenever there is no surviving spouse entitled to pension 
under section 1536 of this title, the Secretary shall pay to the 
children of each Spanish-American War veteran who met the service 
requirements of section 1512(a) of this title a pension at the monthly 
rate of $73.13 for one child, plus $8.13 for each additional child, 
with the total amount equally divided. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1138, Sec. 537; Pub. L. 94-169, 
title I, Sec. 106(39), Dec. 23, 1975, 89 Stat. 1019; renumbered Sec. 
1537 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406.) 

OTHER PERIODS OF WAR 

ï¿½ 1541. Surviving spouses of veterans of a period of war 

(a) The Secretary shall pay to the surviving spouse of each veteran of 
a period of war who met the service requirements prescribed in section 
1521(j) of this title, or who at the time of death was receiving (or 
entitled to receive) compensation or retirement pay for a service-
connected disability, pension at the rate prescribed by this section, 
as increased from time to time under section 5312 of this title. 
(b) If no child of the veteran is in the custody of the surviving 
spouse, pension shall be paid to the surviving spouse at the annual 
rate of $2,379, reduced by the amount of the surviving spouseï¿½s annual 
income. (c) If there is a child of the veteran in the custody of the 
surviving spouse, pension shall be paid to the surviving spouse at the 
annual rate of $3,116. If the surviving spouse has custody of two 
or more such children, the annual pension rate shall be increased 
by $600 for each such child in excess of one. In each case, the rate 
payable shall be reduced by the amount of the surviving spouseï¿½s 
annual income and, subject to subsection (g) of this section, the 
annual income of each such child. (d)(1) If a surviving spouse who is 
entitled to pension under subsection (b) of this section is in need of 
regular aid and attendance, the annual rate of pension payable to such 
surviving spouse 


Sec. 1541 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 152 

shall be $3,806, reduced by the amount of the surviving spouseï¿½s 
annual income. 

(2) If a surviving spouse who is entitled to pension under subsection 
(c) of this section is in need of regular aid and attendance, 
the annual rate of pension payable to the surviving spouse shall be 
$4,543. If there are two or more children of the veteran in such 
surviving spouseï¿½s custody, the annual rate of pension shall be 
increased by $600 for each such child in excess of one. The rate 
payable shall be reduced by the amount of the surviving spouseï¿½s annual 
income and, subject to subsection (g) of this section, the annual 
income of each such child. (e)(1) If the surviving spouse is 
permanently housebound but does not qualify for pension at the aid and 
attendance rate provided by subsection (d) of this section, the annual 
rate of pension payable to such surviving spouse under subsection (b) 
of this section shall be $2,908 and the annual rate of pension payable 
to such surviving spouse under subsection (c) of this section shall be 
$3,645. If there are two or more children of the veteran in such 
surviving spouseï¿½s custody, the annual rate of pension shall be 
increased by $600 for each such child in excess of one. The rate 
payable shall be reduced by the amount of the surviving spouseï¿½s annual 
income and, subject to subsection (g) of this section, the income of 
any child of the veteran for whom the surviving spouse is 
receiving increased pension. 

(2) For purposes of paragraph (1) of this subsection, the requirement 
of ï¿½ï¿½permanently houseboundï¿½ï¿½ shall be met when the surviving spouse is 
substantially confined to such surviving spouseï¿½s house (ward or 
clinical areas, if institutionalized) or immediate premises by reason 
of a disability or disabilities reasonably certain to remain throughout 
such surviving spouseï¿½s lifetime. (f) No pension shall be paid under 
this section to a surviving spouse of a veteran unless the spouse was 
married to the veteran- (1) before (A) December 14, 1944, in the case 
of a surviving spouse of a Mexican border period or World War I veteran, 
(B) January 1, 1957, in the case of a surviving spouse of a World 
War II veteran, (C) February 1, 1965, in the case of a surviving 
spouse of a Korean conflict veteran, (D) May 8, 1985, in the 
case of a surviving spouse of a Vietnam era veteran, or (E) 
January 1, 2001, in the case of a surviving spouse of a veteran 
of the Persian Gulf War; 
(2) for one year or more; or 
(3) for any period of time if a child was born of the marriage, or was 
born to them before the marriage. 
(g) In determining the annual income of a surviving spouse for 
the purposes of this section, if there is a child of the veteran in the 
custody of the surviving spouse, that portion of the annual income 
of the child that is reasonably available to or for the surviving 
spouse shall be considered to be income of the surviving spouse, 
unless in the judgment of the Secretary to do so would work a 
hardship on the surviving spouse. 
(h) As used in this section and section 1542 of this title, the 
term ï¿½ï¿½veteranï¿½ï¿½ includes a person who has completed at least two 
years of honorable active military, naval, or air service, as certified 

153 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1543 

by the Secretary concerned, but whose death in such service was 
not in line of duty. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1138, Sec. 541; Pub. L. 
86-211, Sec. 4, Aug. 29, 1959, 73 Stat. 434; Pub. L. 88-664, Sec. 3(c), 
(d), Oct. 13, 1964, 78 Stat. 1095; Pub. L. 90-77, title I, Sec. 101(a), 
106, title II, Sec. 202(d)-(f), Aug. 31, 1967, 81 Stat. 178, 179, 182; 
Pub. L. 90-275, Sec. 1(c), (d), Mar. 28, 1968, 82 Stat. 65, 66; Pub. L. 
91-588, Sec. 1(c), (d), 9(d), Dec. 24, 1970, 84 Stat. 1581, 1584; Pub. L. 
92- 198, Sec. 1(c)-(e), Dec. 15, 1971, 85 Stat. 663, 664; Pub. L. 93-177 
Sec. 1(c), (d), 2, Dec. 6, 1973, 87 Stat. 695; Pub. L. 93-527, Sec. 3, 
Dec. 21, 1974, 88 Stat. 1703; Pub. L. 94-169, title I, Sec. 101(2)(B), 
(C), (H), 103, 106(40), Dec. 23, 1975, 89 Stat. 1013, 1014, 1016, 1019; 
Pub. L. 94-432, title II, Sec. 203, Sept. 30, 1976, 90 Stat. 1370; 
Pub. L. 95-204, title I, Sec. 102, Dec. 2, 1977, 91 Stat. 1456; Pub. L. 
95-588, title I, Sec. 109(a), Nov. 4, 1978, 92 Stat. 2503; Pub. L. 
102-25, title III, Sec. 333(b), Apr. 6, 1991, 105 Stat. 88; Pub. L. 
102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 1541 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1542. Children of veterans of a period of war 

The Secretary shall pay to each child (1) who is the child of 
a deceased veteran of a period of war who met the service requirements 
prescribed in section 1521(j) of this title, or who at the time 
of death was receiving (or entitled to receive) compensation or 
retirement pay for a service-connected disability, and (2) who is not 
in the custody of a surviving spouse eligible for pension under section 
1541 of this title, pension at the annual rate of $600, as increased 
from time to time under section 5312 of this title and reduced by the 
amount of such childï¿½s annual income; or, if such child is residing 
with a person who is legally responsible for such childï¿½s support, at 
an annual rate equal to the amount by which the appropriate annual rate 
provided under section 1541(c) of this title exceeds the sum of the 
annual income of such child and such person, but in no event may such 
annual rate of pension exceed the amount by which $600, as increased 
from time to time under section 5312 of this title, exceeds the annual 
income of such child. The 
appropriate annual rate under such section 1541(c) for the purposes of 
the preceding sentence shall be determined in accordance 
with regulations which the Secretary shall prescribe. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1138, Sec. 542; Pub. L. 
86-211, Sec. 4, Aug. 29, 1959, 73 Stat. 435; Pub. L. 88-664, Sec. 4, 
Oct. 13, 1964, 78 Stat. 1095; Pub. L. 90-77, title I, Sec. 107, 
title II, Sec. 202(g), (h), Aug. 31, 1967, 81 Stat. 180, 182; 
Pub. L. 91-588, Sec. 3(c), 9(e), Dec. 24, 1970, 84 Stat. 1583, 1585; 
Pub. L. 92-198, Sec. 1(f), Dec. 15, 1971, 85 Stat. 664; Pub. L. 93-177, 
Sec. 3, Dec. 6, 1973, 87 Stat. 695; Pub. L. 93-527, Sec. 4, Dec. 21, 
1974, 88 Stat. 1703; Pub. L. 94-169, title I, Sec. 101(2)(D), 104, Dec. 
23, 1975, 89 Stat. 1014, 1016; Pub. L. 94-432, title II, Sec. 204, 
Sept. 30, 1976, 90 Stat. 1371; Pub. L. 95-204, title I, Sec. 103, 
Dec. 2, 1977, 91 Stat. 1457; Pub. L. 95-588, title I, Sec. 110(a), 
Nov. 4, 1978, 92 Stat. 2504; Pub. L. 102-40, title IV, Sec. 402(d)(1), 
May 7, 1991, 105 Stat. 239; renumbered Sec. 1542 and amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406.) 
ï¿½ 1543. Net worth limitation 

(a)(1) The Secretary shall deny or discontinue payment of pension to a 
surviving spouse under section 1541 of this title when the 
corpus of the estate of the surviving spouse is such that under all 
the circumstances, including consideration of the income of the 
surviving spouse and the income of any child from whom the surviving 
spouse is receiving increased pension, it is reasonable that some 


Sec. 1544 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 154 

part of the corpus of such estate be consumed for the surviving 
spouseï¿½s maintenance. 

(2) The Secretary shall deny or discontinue the payment of increased 
pension under subsection (c), (d), or (e) of section 1541 of this title 
on account of a child when the corpus of such childï¿½s estate is such 
that under all the circumstances, including consideration of the income 
of the surviving spouse and such child and the income of any other 
child for whom the surviving spouse is receiving increased pension, it 
is reasonable that some part of the corpus of the childï¿½s estate be 
consumed for the childï¿½s maintenance. During the period such denial or 
discontinuance remains in effect, such child shall not be considered as 
the surviving spouseï¿½s child for purposes of this chapter. 
(b) The Secretary shall deny or discontinue payment of pension 
to a child under section 1542 of this title when the corpus of the 
estate of the child is such that under all the circumstances, including 
consideration of the income of the child, the income of any person with 
whom such child is residing who is legally responsible for such childï¿½s 
support, and the corpus of the estate of such person, it is reasonable 
that some part of the corpus of such estates be consumed for the 
childï¿½s maintenance. (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1138, 
Sec. 543; Pub. L. 86-211, Sec. 4, Aug. 29, 1959, 73 Stat. 435; Pub. L. 
94-169, title I, Sec. 101(2)(E), Dec. 23, 1975, 89 Stat. 1014; Pub. L. 
95-588, title I, Sec. 111, Nov. 4, 1978, 92 Stat. 2504; renumbered Sec. 
1543 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½SURVIVING SPOUSES OF VETERANS OF ALL PERIODS OF WARREPEALEDï¿½ 

ï¿½ï¿½ 1544. Vacantï¿½ 

SUBCHAPTER IV-ARMY, NAVY, AIR FORCE, AND COAST 
GUARD MEDAL OF HONOR ROLL 


ï¿½ 1560. Medal of Honor Roll; persons eligible 

(a) There shall be in the Department of the Army, the Department of the 
Navy, the Department of the Air Force, and the Department of Homeland 
Security, respectively, a roll designated as 
the ï¿½ï¿½Army, Navy, Air Force, and Coast Guard Medal of Honor 
Rollï¿½ï¿½. 
(b) Upon written application to the Secretary concerned, that 
Secretary shall enter and record on such roll the name of each 
surviving person who has served on active duty in the armed forces 
of the United States and who has been awarded a medal of honor 
for distinguishing such person conspicuously by gallantry and 
intrepidity at the risk of such personï¿½s life above and beyond the call 
of duty while so serving. 
(c) Applications for entry on such roll shall be made in the 
form and under regulations prescribed by the Secretary concerned, 
and shall indicate whether or not the applicant desires to receive 
the special pension provided by section 1562 of this title. Proper 
blanks and instructions shall be furnished by the Secretary concerned, 
without charge upon the request of any person claiming the 
benefits of this subchapter. 

155 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH Sec. 1562 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1139, Sec. 560; Pub. L. 
87-138, Sec. 1, Aug. 14, 1961, 75 Stat. 338; Pub. L. 88-77, Sec. 5(1), 
July 25, 1963, 77 Stat. 95; Pub. L. 88-651, Oct. 13, 1964, 78 Stat. 
1078; Pub. L. 89-311, Sec. 4, Oct. 31, 1965, 79 Stat. 1156; Pub. L. 
91-24, Sec. 5, June 11, 1969, 83 Stat. 33; Pub. L. 94-169, title 
I, Sec. 106(41), Dec. 23, 1975, 89 Stat. 1019; renumbered Sec. 1560 and 
amended Pub. L. 102-83, Sec. 4(b)(4)(A), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 405, 406; Pub. L. 107-296, title XVII, Sec. 1704(d), Nov. 
25, 2002, 116 Stat. 2315.) ï¿½ 1561. Certificate 

(a) The Secretary concerned shall determine whether or not 
each applicant is entitled to have such personï¿½s name entered on 
the Army, Navy, Air Force, and Coast Guard Medal of Honor Roll. 
If the official award of the Medal of Honor to the applicant, or the 
official notice to such person thereof, shows that the Medal of 
Honor was awarded to the applicant for an act described in section 
1560 of this title, such award or notice shall be sufficient to entitle 
the applicant to have such personï¿½s name entered on such roll without 
further investigation; otherwise all official correspondence, orders, 
reports, recommendations, requests, and other evidence on 
file in any public office or department shall be considered. 
(b) Each person whose name is entered on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll shall be furnished a 
certificate of service and of the act of heroism, gallantry, bravery, 
or intrepidity for which the Medal of Honor was awarded, of enrollment 
on such roll, and, if such person has indicated such personï¿½s 
desire to receive the special pension provided by section 1562 of 
this title, of such personï¿½s right to such special pension. 
(c) The Secretary concerned shall deliver to the Secretary a 
certified copy of each certificate issued under subsection (b) in 
which the right of the person named in the certificate to the special 
pension provided by section 1562 of this title is set forth. Such copy 
shall authorize the Secretary to pay such special pension to the 
person named in the certificate. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1139, Sec. 561; Pub. L. 
87-138, Sec. 2(a), Aug. 14, 1961, 75 Stat. 338; Pub. L. 88-77, Sec. 
5(2), July 25, 1963, 77 Stat. 95; Pub. L. 94-169, title I, Sec. 
106(42), (43), Dec. 23, 1975, 89 Stat. 1019; renumbered Sec. 1561 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 404-406.) 

ï¿½ 1562. Special provisions relating to pension 

(a) The Secretary shall pay monthly to each person whose 
name has been entered on the Army, Navy, Air Force, and Coast 
Guard Medal of Honor roll, and a copy of whose certificate has 
been delivered to the Secretary under subsection (c) of section 1561 
of this title, a special pension at the rate of $1,000, as adjusted 
from time to time under subsection (e), beginning as of the date of 
application therefor under section 1560 of this title. 
(b) The receipt of special pension shall not deprive any person 
of any other pension or other benefit, right, or privilege to which 
such person is or may hereafter be entitled under any existing or 
subsequent law. Special pension shall be paid in addition to all 
other payments under laws of the United States. 
(c) Special pension shall not be subject to any attachment, execution, 
levy, tax lien, or detention under any process whatever. 
(d) If any person has been awarded more than one medal of 
honor, such person shall not receive more than one special pension. 

Sec. 1562 CH. 15-PENSION FOR NON-SERVICE-CONNECTED DISABILITY/DEATH 156 

(e) Effective as of December 1 each year, the Secretary shall 
increase the amount of monthly special pension payable under subsection 
(a) as of November 30 of such year by the same percentage 
as the percentage by which benefit amounts payable under title II 
of the Social Security Act (42 U.S.C. 401 et seq.) are increased 
effective December 1 of such year as a result of a determination 
under section 215(i) of that Act (42 U.S.C. 415(i)). 
(f)(1) The Secretary shall pay, in a lump sum, to each person 
who is in receipt of special pension payable under this section an 
amount equal to the total amount of special pension that the person 
would have received during the period beginning on the first 
day of the first month beginning after the date of the act for which 
the person was awarded the Medal of Honor and ending on the last 
day of the month preceding the month in which the personï¿½s special 
pension in fact commenced. 

(2) For each month of a period referred to in paragraph (1), the 
amount of special pension payable to a person shall be determined 
using the rate of special pension that was in effect for such month, 
and shall be payable only if the person would have been entitled 
to payment of special pension for such month under laws for eligibility 
for special pension (with the exception of the eligibility law 
requiring a person to have been awarded a Medal of Honor) in effect at 
the beginning of such month. (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 
1140, Sec. 562; Pub. L. 87-138, Sec. 3, Aug. 14, 1961, 75 Stat. 339; 
Pub. L. 88-77, Sec. 5(2), July 25, 1963, 77 Stat. 95; Pub. 

L. 94-169, title I, Sec. 106(44), (45), Dec. 23, 1975, 89 Stat. 1019; 
Pub. L. 95-479, title III, Sec. 302, Oct. 18, 1978, 92 Stat. 1565; 
renumbered Sec. 1562 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 103-161, Sec. 
1(a), Nov. 30, 1993, 107 Stat. 1967; Pub. L. 105-368, title III, Sec. 
301(a), Nov. 11, 1998, 112 Stat. 3332; Pub. L. 107-330, title III, Sec. 
304(a)-(c), Dec. 
6, 2002, 116 Stat. 2826.) 

CHAPTER 17 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


157 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½


CHAPTER 17-HOSPITAL, NURSING HOME, 
DOMICILIARY, AND MEDICAL CARE


SUBCHAPTER I-GENERAL 

Sec. 

1701. Definitions. 

1702. Presumptions: psychosis after service in World War II and 
following periods of war; mental illness following service in the 
Persian Gulf War. 

1703. Contracts for hospital care and medical services in non-
Department facilities. 

1704. Preventive health services: annual report. 

1705. Management of health care: patient enrollment system. 

1706. Management of health care: other requirements. 

1707. Limitations. 

1708. Temporary lodging. 

SUBCHAPTER II-HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND 
MEDICAL TREATMENT 

1710. Eligibility for hospital, nursing home, and domiciliary care.

1710A. Required nursing home care. 

1710B. Extended care services. 

1710C. Traumatic brain injury: plans for rehabilitation and 
reintegration into the 
community. 

1710D. Traumatic brain injury: comprehensive plan for long-term 
rehabilitation. 

1710E. Traumatic brain injury: use of non-Departmental facilities for 
rehabilitation. 

1711. Care during examinations and in emergencies. 

1712. Dental care; drugs and medicines for certain disabled veterans; 
vaccines. 

1712A. Eligibility for readjustment counseling and related mental 
health services. 

1712B. Counseling for former prisoners of war. 

[1713. Renumbered.] 

1714. Fitting and training in use of prosthetic appliances; guide dogs; 
service 
dogs. 

1715. Tobacco for hospitalized veterans. 

1716. Hospital care by other agencies of the United States. 

1717. Home health services; invalid lifts and other devices. 

1718. Therapeutic and rehabilitative activities. 

1719. Repair or replacement of certain prosthetic and other appliances. 

1720. Transfers for nursing home care; adult day health care. 

1720A. Treatment and rehabilitative services for persons with drug or 
alcohol dependency. 

1720B. Respite care. 

1720C. Noninstitutional alternatives to nursing home care. 

1720D. Counseling and treatment for sexual trauma. 

1720E. Nasopharyngeal radium irradiation. 

1720F. Comprehensive program for suicide prevention among veterans. 

SUBCHAPTER III-MISCELLANEOUS PROVISIONS RELATING TO HOSPITAL 
AND NURSING HOME CARE AND MEDICAL TREATMENT OF VETERANS 

1721. Power to make rules and regulations. 

1722. Determination of inability to defray necessary expenses; income 
thresholds. 

1722A. Copayment for medications. 

159 


Sec. 1701 CH. 17-MEDICAL CARE 160 

1723. Furnishing of clothing. 
1724. Hospital care, medical services, and nursing home care abroad. 
1725. Reimbursement for emergency treatment. 
1726. Reimbursement for loss of personal effects by natural disaster. 
1727. Persons eligible under prior law. 
1728. Reimbursement of certain medical expenses. 
1729. Recovery by the United States of the cost of certain care and 
services. 
1729A. Department of Veterans Affairs Medical Care Collections Fund. 
1729B. Consolidated patient accounting centers. 
1730. Community residential care. 


SUBCHAPTER IV-HOSPITAL CARE AND MEDICAL TREATMENT FOR 
VETERANS IN THE REPUBLIC OF THE PHILIPPINES 


1731. Assistance to the Republic of the Philippines. 
1732. Contracts and grants to provide for the care and treatment of 
United States veterans by the Veterans Memorial Medical Center. 
1733. Supervision of program by the President. 
1734. Hospital and nursing home care and medical services in the United 
States. 
1735. Definitions. 

SUBCHAPTER V-PAYMENTS TO STATE HOMES 

1741. Criteria for payment. 
1742. Inspections of such homes; restrictions on beneficiaries. 
1743. Applications. 
1744. Hiring and retention of nurses: payments to assist States. 
1745. Nursing home care and medications for veterans with service-
connected 


disabilities. 

SUBCHAPTER VI-SICKLE CELL ANEMIA 

1751. Screening, counseling, and medical treatment. 
1752. Research. 
1753. Voluntary participation; confidentiality. 
1754. Reports. 


SUBCHAPTER VII-TRANSFERRED] 

[1771 to 1774. Renumbered.] 

SUBCHAPTER VIII-HEALTH CARE OF PERSONS OTHER THAN VETERANS 

1781. Medical care for survivors and dependents of certain veterans. 
1782. Counseling, training, and mental health services for immediate 
family members. 
1783. Bereavement counseling. 
1784. Humanitarian care. 
1785. Care and services during certain disasters and emergencies. 

SUBCHAPTER I-GENERAL 

ï¿½ 1701. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½disabilityï¿½ï¿½ means a disease, injury, or other 
physical or mental defect. 
(2) The term ï¿½ï¿½veteran of any warï¿½ï¿½ includes any veteran awarded the 
Medal of Honor. 
(3) The term ï¿½ï¿½facilities of the Departmentï¿½ï¿½ means- 
(A) facilities over which the Secretary has direct jurisdiction; 
(B) Government facilities for which the Secretary contracts; and 
(C) public or private facilities at which the Secretary provides 
recreational activities for patients receiving care under 
section 1710 of this title. 

161 CH. 17-MEDICAL CARE Sec. 1701 

(4) The term ï¿½ï¿½non-Department facilitiesï¿½ï¿½ means facilities other 
than Department facilities. 
(5) The term ï¿½ï¿½hospital careï¿½ï¿½ includes- 
(A)(i) medical services rendered in the course of the hospitalization 
of any veteran, and (ii) travel and incidental expenses pursuant to the 
provisions of section 111 of this title; 

(B) such mental health services, consultation, professional 
counseling, marriage and family counseling, and training for 
the members of the immediate family or legal guardian of a 
veteran, or the individual in whose household such veteran certifies an 
intention to live, as the Secretary considers appropriate for the 
effective treatment and rehabilitation of a veteran or dependent or 
survivor of a veteran receiving care under 
the last sentence of section 1781(b) of this title; and 
(C)(i) medical services rendered in the course of the hospitalization 
of a dependent or survivor of a veteran receiving 
care under the last sentence of section 1781(b) of this title, and 

(ii) travel and incidental expenses for such dependent or survivor 
under the terms and conditions set forth in section 111 
of this title. 
(6) The term ï¿½ï¿½medical servicesï¿½ï¿½ includes, in addition to medical 
examination, treatment, and rehabilitative services, the following: 
(A) Surgical services. 
(B) Dental services and appliances as described in sections 
1710 and 1712 of this title. 
(C) Optometric and podiatric services. 
(D) Preventive health services. 
(E) Noninstitutional extended care services, including alternatives to 
institutional extended care that the Secretary 
may furnish directly, by contract, or through provision of case 
management by another provider or payer. 
(F) In the case of a person otherwise receiving care or services under 
this chapter- 
(i) wheelchairs, artificial limbs, trusses, and similar 
appliances; 
(ii) special clothing made necessary by the wearing of 
prosthetic appliances; and 
(iii) such other supplies or services as the Secretary 
determines to be reasonable and necessary. 
(G) Travel and incidental expenses pursuant to section 111 
of this title. 
(7) The term ï¿½ï¿½domiciliary careï¿½ï¿½ includes necessary medical 
services and travel and incidental expenses pursuant to the provisions 
of section 111 of this title. 
(8) The term ï¿½ï¿½rehabilitative servicesï¿½ï¿½ means such professional, 
counseling, and guidance services and treatment programs as are 
necessary to restore, to the maximum extent possible, the physical, 
mental, and psychological functioning of an ill or disabled person. 
(9) The term ï¿½ï¿½preventive health servicesï¿½ï¿½ means- 
(A) periodic medical and dental examinations; 
(B) patient health education (including nutrition education); 
(C) maintenance of drug use profiles, patient drug monitoring, and drug 
utilization education; 

Sec. 1702 CH. 17-MEDICAL CARE 162 

(D) mental health preventive services; 
(E) substance abuse prevention measures; 
(F) immunizations against infectious disease; 
(G) prevention of musculoskeletal deformity or other 
gradually developing disabilities of a metabolic or degenerative 
nature; 
(H) genetic counseling concerning inheritance of genetically determined 
diseases; 
(I) routine vision testing and eye care services; 
(J) periodic reexamination of members of likely target populations 
(high-risk groups) for selected diseases and for functional decline of 
sensory organs, together with attendant appropriate remedial 
intervention; and 
(K) such other health-care services as the Secretary may 
determine to be necessary to provide effective and economical 
preventive health care. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1141, Sec. 601; Pub. L. 
86-598, July 7, 1960, 74 Stat. 335; Pub. L. 86-639, Sec. 2, July 12, 
1960, 74 Stat. 472; Pub. L. 88-481, Aug. 22, 1964, 78 Stat. 593; Pub. 
L. 90-612, Sec. 2, Oct. 21, 1968, 82 Stat. 1202; Pub. L. 93-82, 
title I, Sec. 101, Aug. 2, 1973, 87 Stat. 179; Pub. L. 94-581, title 
I, Sec. 102, title II, Sec. 202(b), Oct. 21, 1976, 90 Stat. 2843, 2855; 
Pub. L. 95-520, Sec. 5, Oct. 26, 1978, 92 Stat. 1820; Pub. L. 96-22, 
title I, Sec. 102(c), title II, Sec. 201(a), June 13, 1979, 93 Stat. 
48, 54; Pub. L. 96-151, title II, Sec. 201(b), 202, Dec. 20, 1979, 93 
Stat. 1093, 1094; Pub. L. 97-72, title I, Sec. 101, Nov. 3, 1981, 95 Stat. 
1047; Pub. L. 97-251, Sec. 4, Sept. 8, 1982, 96 Stat. 716; Pub. L. 
98-105, Sept. 30, 1983, 97 Stat. 730; Pub. L. 98-160, title I, Sec. 
106(a), Nov. 21, 1983, 97 Stat. 998; Pub. L. 98-528, title I, Sec. 
103(a), Oct. 19, 1984, 98 Stat. 2688; Pub. L. 99-108, Sec. 2, Sept. 
30, 1985, 99 Stat. 481; Pub. L. 99-166, title I, Sec. 102(a), Dec. 3, 
1985, 99 Stat. 943; Pub. L. 99-272, title XIX, Sec. 19011(d)(2), 
19012(a), Apr. 7, 1986, 100 Stat. 378, 380; Pub. L. 99-576, title II, 
Sec. 203, Oct. 28, 1986, 100 Stat. 3255; Pub. 

L. 100-322, title I, Sec. 131, May 20, 1988, 102 Stat. 506; Pub. L. 
102-54, Sec. 
14(b)(8), June 13, 1991, 105 Stat. 283; renumbered Sec. 1701 and 
amended Pub. L. 102-83, Sec. 4(a)(2)(E), (3)-(5), (b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-585, 
title V, Sec. 513, Nov. 4, 1992, 106 Stat. 4958; Pub. L. 103- 
446, title XII, Sec. 1202(b)(1), Nov. 2, 1994, 108 Stat. 4689; Pub. 
L. 104-262, title I, Secs. 101(d)(1), 103(a), Oct. 9, 1996, 110 Stat. 
3179, 3182; Pub. L. 106-117, title I, Sec. 101(b), Nov. 30, 1999, 113 
Stat. 1548; Pub. L. 107-135, title II, Sec. 208(a)(1), (e)(2), Jan. 
23, 2002, 115 Stat. 2461, 2463; Pub. L. 107-330, title III, Sec. 
308(g)(3), Dec. 6, 2002, 116 Stat. 2828; Pub. L. 108-170, title I, 
Secs. 104(a), 106(a), Dec. 6, 2003, 117 Stat. 2044, 2045; Pub. L. 
110-387, title III, Sec. 301(a)(1), title VIII, Sec. 801, Oct. 10, 
2008, 122 Stat. 4120, 4140.) ï¿½ 1702. Presumptions: psychosis after 
service in World War II and following periods of war; mental 
illnessafter service in the Persian Gulf War 

(a) PSYCHOSIS.-For the purposes of this chapter, any veteran 
of World War II, the Korean conflict, the Vietnam era, or the Persian 
Gulf War who developed an active psychosis (1) within two 
years after discharge or release from the active military, naval, or 
air service, and (2) before July 26, 1949, in the case of a veteran 
of World War II, before February 1, 1957, in the case of a veteran 
of the Korean conflict, before May 8, 1977, in the case of a Vietnam 
era veteran, or before the end of the two-year period beginning on 
the last day of the Persian Gulf War, in the case of a veteran of 
the Persian Gulf War, shall be deemed to have incurred such disability 
in the active military, naval, or air service. (b) MENTAL ILLNESS.-For 
purposes of this chapter, any veteran of the Persian Gulf War who 
develops an active mental illness 163 CH. 17-MEDICAL CARE Sec. 1703 

(other than psychosis) shall be deemed to have incurred such disability 
in the active military, naval, or air service if such veteran 
develops such disability- 

(1) within two years after discharge or release from the active 
military, naval, or air service; and 
(2) before the end of the two-year period beginning on the 
last day of the Persian Gulf War. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1141, Sec. 602; Pub. L. 90-77, 
title II, Sec. 203(a), Aug. 31, 1967, 81 Stat. 183; Pub. L. 97-295, 
Sec. 4(16), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99-576, title VII, 
Sec. 701(20), Oct. 28, 1986, 100 Stat. 3292; Pub. L. 102-25, title III, 
Sec. 334(b), Apr. 6, 1991, 105 Stat. 88; renumbered Sec. 1702, Pub. L. 
102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 110- 
181, div. A, title XVII, Sec. 1708(a)(1), (2), Jan. 28, 2008, 122 Stat. 
493, 494.) 

ï¿½ 1703. Contracts for hospital care and medical services in 
non-Department facilities 

(a) When Department facilities are not capable of furnishing 
economical hospital care or medical services because of geographical 
inaccessibility or are not capable of furnishing the care 
or services required, the Secretary, as authorized in section 1710 
of this title, may contract with non-Department facilities in order 
to furnish any of the following: 
(1) Hospital care or medical services to a veteran for the 
treatment of- 
(A) a service-connected disability; 
(B) a disability for which a veteran was discharged or 
released from the active military, naval, or air service; or 
(C) a disability of a veteran who has a total disability 
permanent in nature from a service-connected disability. 
(2) Medical services for the treatment of any disability of- 
(A) a veteran described in section 1710(a)(1)(B) of this 
title; 
(B) a veteran who (i) has been furnished hospital care, 
nursing home care, domiciliary care, or medical services, 
and (ii) requires medical services to complete treatment incident to 
such care or services; or 
(C) a veteran described in section 1710(a)(2)(E) of this 
title, or a veteran who is in receipt of increased pension, 
or additional compensation or allowances based on the 
need of regular aid and attendance or by reason of being 
permanently housebound (or who, but for the receipt of retired pay, 
would be in receipt of such pension, compensation, or allowance), if 
the Secretary has determined, based on an examination by a physician 
employed by the Department (or, in areas where no such physician is 
available, by a physician carrying out such function under a contract 
or fee arrangement), that the medical condition of such veteran 
precludes appropriate treatment in Department facilities. 
(3) Hospital care or medical services for the treatment of 
medical emergencies which pose a serious threat to the life or 
health of a veteran receiving medical services in a Department 
facility or nursing home care under section 1720 of this title 
until such time following the furnishing of care in the non-De

Sec. 1703 CH. 17-MEDICAL CARE 164 

partment facility as the veteran can be safely transferred to a 
Department facility. 

(4) Hospital care for women veterans. 
(5) Hospital care, or medical services that will obviate the 
need for hospital admission, for veterans in a State (other than 
the Commonwealth of Puerto Rico) not contiguous to the contiguous 
States, except that the annually determined hospital 
patient load and incidence of the furnishing of medical services 
to veterans hospitalized or treated at the expense of the Department 
in Government and non-Department facilities in each 
such noncontiguous State shall be consistent with the patient 
load or incidence of the furnishing of medical services for veterans 
hospitalized or treated by the Department within the 48 
contiguous States and the Commonwealth of Puerto Rico. 
(6) Diagnostic services necessary for determination of eligibility 
for, or of the appropriate course of treatment in connection with, 
furnishing medical services at independent Department out-patient 
clinics to obviate the need for hospital admission. 
(7) Outpatient dental services and treatment, and related 
dental appliances, for a veteran described in section 
1712(a)(1)(F) of this title. 
(8) Diagnostic services (on an inpatient or outpatient basis) 
for observation or examination of a person to determine eligibility 
for a benefit or service under laws administered by the 
Secretary. 
(b) In the case of any veteran for whom the Secretary contracts 
to furnish care or services in a non-Department facility pursuant 
to a provision of subsection (a) of this section, the Secretary shall 
periodically review the necessity for continuing such contractual 
arrangement pursuant to such provision. 
(c) The Secretary shall include in the budget documents which 
the Secretary submits to Congress for any fiscal year a detailed 
report on the furnishing of contract care and services during the most 
recently completed fiscal year under this section, sections 1712A, 
1720, 1720A, 1724, and 1732 of this title, and section 115 of the 
Veteransï¿½ Benefits and Services Act of 1988 (Public Law 100-322; 
102 Stat. 501). 
(d)(1) The Secretary shall conduct a program of recovery audits 
for fee basis contracts and other medical services contracts for the 
care of veterans under this section, and for beneficiaries under 
sections 1781, 1782, and 1783 of this title, with respect to 
overpayments resulting from processing or billing errors or fraudulent 
charges in payments for non-Department care and services. The 
program shall be conducted by contract. 

(2) Amounts collected, by setoff or otherwise, as the result of 
an audit under the program conducted under this subsection shall 
be available, without fiscal year limitation, for the purposes for 
which funds are currently available to the Secretary for medical 
care and for payment to a contractor of a percentage of the amount 
collected as a result of an audit carried out by the contractor. 
(3) The Secretary shall allocate all amounts collected under 
this subsection with respect to a designated geographic service area 

165 CH. 17-MEDICAL CARE Sec. 1704 

of the Veterans Health Administration, net of payments to the 
contractor, to that region. 

(4) The authority of the Secretary under this subsection terminates on 
September 30, 2013. (Added Pub. L. 99-272, title XIX, Sec. 19012(b)(1), 
Apr. 7, 1986, 100 Stat. 380, Sec. 603; amended Pub. L. 99-166, title I, 
Sec. 102(b)(1), Dec. 3, 1985, 99 Stat. 943; Pub. L. 99-272, title XIX,
Sec. 19012(c)(5)(A), Apr. 7, 1986, 100 Stat. 382; Pub. L. 100-322, 
title I, Sec. 101(e)(3), 104, 112(a), May 20, 1988, 102 Stat. 492, 493, 
499; Pub. L. 100-687, div. B, title XV, Sec. 1503(a)(1), Nov. 18, 
1988, 102 Stat. 4133; Pub. L.102-54, Sec. 14(b)(9), June 13, 1991, 
105 Stat. 283; renumbered Sec. 1703 and amended Pub. L. 102-83, Sec. 
4(a)(1), (3)-(5), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 403-406; Pub. L. 102-585, title V, Sec. 501, Nov. 4, 1992, 106 
Stat. 4955; Pub. L. 104-262, title I, Sec. 104(b), Oct. 9, 1996, 110 
Stat. 3184; Pub. L. 108-422, title VI, Sec. 601, Nov. 30, 2004, 118 
Stat. 2396; Pub. L. 109-13, div. A, title VI, Sec. 6080, May 11, 2005, 
119 Stat. 302; Pub. L. 110-387, title VIII, Sec. 802, Oct.
10, 2008, 122 Stat. 4141.) 
ï¿½ 1704. Preventive health services: annual report 

Not later than October 31 each year, the Secretary shall submit to the 
Committees on Veteransï¿½ Affairs of the Senate and 
House of Representatives a report on preventive health services. 
Each such report shall include the following: 

(1) A description of the programs and activities of the Department with 
respect to preventive health services during the 
preceding fiscal year, including a description of the following: 
(A) The programs conducted by the Department- 
(i) to educate veterans with respect to health promotion and disease 
prevention; and 
(ii) to provide veterans with preventive health screenings and other 
clinical services, with such description setting forth the types of 
resources used by the Department to conduct such screenings and 
services and the number of veterans reached by such screenings and 
services. 
(B) The means by which the Secretary addressed the 
specific preventive health services needs of particular 
groups of veterans (including veterans with service-connected 
disabilities, elderly veterans, low-income veterans, 
women veterans, institutionalized veterans, and veterans 
who are at risk for mental illness). 
(C) The manner in which the provision of such services was coordinated 
with the activities of the Medical and 
Prosthetic Research Service of the Department and the 
National Center for Preventive Health. 
(D) The manner in which the provision of such services was integrated 
into training programs of the Department, including initial and 
continuing medical training of 
medical students, residents, and Department staff. 
(E) The manner in which the Department participated 
in cooperative preventive health efforts with other governmental and 
private entities (including State and local 
health promotion offices and not-for-profit organizations). 
(F) The specific research carried out by the Department with respect to 
the long-term relationships among 
screening activities, treatment, and morbidity and mortality outcomes. 

Sec. 1705 CH. 17-MEDICAL CARE 166 

(G) The cost effectiveness of such programs and activities, including 
an explanation of the means by which the 
costs and benefits (including the quality of life of veterans 
who participate in such programs and activities) of such 
programs and activities are measured. 
(2) A specific description of research activities on preventive health 
services carried out during that period using employees, funds, 
equipment, office space, or other support services of the Department,
with such description setting forth- 
(A) the source of funds for those activities; 
(B) the articles or publications (including the authors 
of the articles and publications) in which those activities 
are described; 
(C) the Federal, State, or local governmental entity or 
private entity, if any, with which such activities were carried out; and 
(D) the clinical, research, or staff education projects 
for which funding applications were submitted (including 
the source of the funds applied for) and upon which a decision is 
pending or was denied. 
(3) An accounting of the expenditure of funds during that 
period by the National Center for Preventive Health under section 7318 
of this title. 
(Added Pub. L. 102-585, title V, Sec. 512(a), Nov. 4, 1992, 106 Stat. 
4957.) 

ï¿½ 1705. Management of health care: patient enrollment system 

(a) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary, in 
accordance with regulations the Secretary shall prescribe, shall 
establish and operate a system of annual patient enrollment. The 
Secretary shall manage the enrollment of veterans in accordance with 
the following priorities, in the order listed: 
(1) Veterans with service-connected disabilities rated 50 
percent or greater. 
(2) Veterans with service-connected disabilities rated 30 
percent or 40 percent. 
(3) Veterans who are former prisoners of war or who were 
awarded the Purple Heart, veterans with service-connected disabilities 
rated 10 percent or 20 percent, and veterans described 
in subparagraphs (B) and (C) of section 1710(a)(2) of this title. 
(4) Veterans who are in receipt of increased pension based 
on a need of regular aid and attendance or by reason of being 
permanently housebound and other veterans who are catastrophically 
disabled. 
(5) Veterans not covered by paragraphs (1) through (4) 
who are unable to defray the expenses of necessary care as determined 
under section 1722(a) of this title. 
(6) All other veterans eligible for hospital care, medical 
services, and nursing home care under section 1710(a)(2) of 
this title. 
(7) Veterans described in section 1710(a)(3) of this title 
who are eligible for treatment as a low-income family under 
section 3(b) of the United States Housing Act of 1937 (42 

167 CH. 17-MEDICAL CARE Sec. 1706 

U.S.C. 1437a(b)) for the area in which such veterans reside, regardless 
of whether such veterans are treated as single person families under 
paragraph (3)(A) of such section 3(b) or as families under paragraph 
(3)(B) of such section 3(b). 
(8) Veterans described in section 1710(a)(3) of this title 
who are not covered by paragraph (7). 
(b) In the design of an enrollment system under subsection (a), 
the Secretary- 
(1) shall ensure that the system will be managed in a manner to ensure 
that the provision of care to enrollees is timely 
and acceptable in quality; 
(2) may establish additional priorities within each priority 
group specified in subsection (a), as the Secretary determines 
necessary; and 
(3) may provide for exceptions to the specified priorities 
where dictated by compelling medical reasons. 
(c)(1) The Secretary may not provide hospital care or medical 
services to a veteran under paragraph (2) or (3) of section 1710(a) 
of this title unless the veteran enrolls in the system of patient
enrollment established by the Secretary under subsection (a). 

(2) The Secretary shall provide hospital care and medical services 
under section 1710(a)(1) of this title, and under subparagraph 
(B) of section 1710(a)(2) of this title, for the 12-month period 
following such veteranï¿½s discharge or release from service, to any 
veteran referred to in such sections for a disability specified in the
applicable subparagraph of such section, notwithstanding the failure 
of the veteran to enroll in the system of patient enrollment referred 
to in subsection (a) of this section. 
(Added Pub. L. 104-262, title I, Sec. 104(a)(1), Oct. 9, 1996, 110 
Stat. 3182; amended Pub. L. 106-117, title I, Sec. 112(2), Nov. 30, 
1999, 113 Stat. 1556; Pub. L. 107-135, title II, Sec. 202(a), Jan. 23, 
2002, 115 Stat. 2457; Pub. L. 107-330, title III, 
Sec. 308(g)(4), Dec. 6, 2002, 116 Stat. 2828.) 

ï¿½ 1706. Management of health care: other requirements 

(a) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary shall, to 
the extent feasible, design, establish and manage health care programs 
in such a manner as to promote cost-effective delivery of 
health care services in the most clinically appropriate setting. 
(b)(1) In managing the provision of hospital care and medical 
services under such section, the Secretary shall ensure that the 
Department (and each geographic service area of the Veterans Health 
Administration) maintains its capacity to provide for the specialized
treatment and rehabilitative needs of disabled veterans (including 
veterans with spinal cord dysfunction, blindness, amputations, and 
mental illness) within distinct programs or facilities of 
the Department that are dedicated to the specialized needs of those 
veterans in a manner that (A) affords those veterans reasonable access 
to care and services for those specialized needs, and (B) ensures that 
overall capacity of the Department to provide such services is not 
reduced below the capacity of the Department (and each 
geographic service area of the Veterans Health Administration), 
nationwide, to provide those services, as of October 9, 1996. The 
Secretary shall carry out this paragraph in consultation with the 


Sec. 1706 CH. 17-MEDICAL CARE 168 

Advisory Committee on Prosthetics and Special Disabilities Programs and 
the Committee on Care of Severely Chronically Mentally Ill Veterans. 

(2) For purposes of paragraph (1), the capacity of the Department (and 
each geographic service area of the Veterans Health Administration) to 
provide for the specialized treatment and rehabilitative needs of 
disabled veterans (including veterans with spinal cord dysfunction, 
traumatic brain injury, blindness, prosthetics and sensory aids, and 
mental illness) within distinct programs or facilities shall be 
measured for seriously mentally ill veterans as follows 
(with all such data to be provided by geographic service area and 
totaled nationally): 
(A) For mental health intensive community-based care, the 
number of discrete intensive care teams constituted to provide 
such intensive services to seriously mentally ill veterans and 
the number of veterans provided such care. 
(B) For opioid substitution programs, the number of patients treated 
annually and the amounts expended. 
(C) For dual-diagnosis patients, the number treated annually and the 
amounts expended. 
(D) For substance-use disorder programs- 
(i) the number of beds (whether hospital, nursing 
home, or other designated beds) employed and the average 
bed occupancy of such beds; 
(ii) the percentage of unique patients admitted directly 
to outpatient care during the fiscal year who had two or 
more additional visits to specialized outpatient care within 
30 days of their first visit, with a comparison from 1996 
until the date of the report; 
(iii) the percentage of unique inpatients with substance-use disorder 
diagnoses treated during the fiscal 
year who had one or more specialized clinic visits within 
three days of their index discharge, with a comparison 
from 1996 until the date of the report; 
(iv) the percentage of unique outpatients seen in a facility or 
geographic service area during the fiscal year who 
had one or more specialized clinic visits, with a comparison 
from 1996 until the date of the report; and 
(v) the rate of recidivism of patients at each specialized clinic in 
each geographic service area of the Veterans 
Health Administration. 
(E) For mental health programs, the number and type of 
staff that are available at each facility to provide specialized 
mental health treatment, including satellite clinics, outpatient 
programs, and community-based outpatient clinics, with a comparison 
from 1996 to the date of the report. 
(F) The number of such clinics providing mental health 
care, the number and type of mental health staff at each such 
clinic, and the type of mental health programs at each such 
clinic. 
(G) The total amounts expended for mental health during 
the fiscal year. 
(3) For purposes of paragraph (1), the capacity of the Department (and 
each geographic service area of the Veterans Health Ad

169 CH. 17-MEDICAL CARE Sec. 1706 

ministration) to provide for the specialized treatment and 
rehabilitative needs of disabled veterans within distinct programs or 
facilities shall be measured for veterans with spinal cord dysfunction, 
traumatic brain injury, blindness, or prosthetics and sensory aids 
as follows (with all such data to be provided by geographic service 
area and totaled nationally): 

(A) For spinal cord injury and dysfunction specialized centers and for 
blind rehabilitation specialized centers, the number of staffed beds 
and the number of full-time equivalent employees assigned to provide 
care at such centers. 
(B) For prosthetics and sensory aids, the annual amount 
expended. 
(C) For traumatic brain injury, the number of patients 
treated annually and the amounts expended. 
(4) In carrying out paragraph (1), the Secretary may not use 
patient outcome data as a substitute for, or the equivalent of, 
compliance with the requirement under that paragraph for maintenance of 
capacity. 
(5)(A) Not later than April 1 of each year through 2008, the 
Secretary shall submit to the Committees on Veteransï¿½ Affairs of 
the Senate and House of Representatives a report on the Secretaryï¿½s 
compliance, by facility and by service-network, with the requirements 
of this subsection. Each such report shall include information on 
recidivism rates associated with substance-use disorder 
treatment. 

(B) In preparing each report under subparagraph (A), the Secretary 
shall use standardized data and data definitions. 
(C) Each report under subparagraph (A) shall be audited by 
the Inspector General of the Department, who shall submit to Congress a 
certification as to the accuracy of each such report. 
(6)(A) To ensure compliance with paragraph (1), the Under 
Secretary for Health shall prescribe objective standards of job 
performance for employees in positions described in subparagraph (B) 
with respect to the job performance of those employees in carrying 
out the requirements of paragraph (1). Those job performance 
standards shall include measures of workload, allocation of resources, 
and quality-of-care indicators. 

(B) Positions described in this subparagraph are positions in 
the Veterans Health Administration that have responsibility for 
allocating and managing resources applicable to the requirements of 
paragraph (1). 
(C) The Under Secretary shall develop the job performance 
standards under subparagraph (A) in consultation with the Advisory 
Committee on Prosthetics and Special Disabilities Programs 
and the Committee on Care of Severely Chronically Mentally Ill 
Veterans. 
(c) The Secretary shall ensure that each primary care health 
care facility of the Department develops and carries out a plan to 
provide mental health services, either through referral or direct 
provision of services, to veterans who require such services. 
(Added Pub. L. 104-262, title I, Sec. 104(a)(1), Oct. 9, 1996, 110 
Stat. 3183; Pub. 

L. 105-368, title IX, 903(a), title X, Sec. 1005(b)(2), Nov. 11, 1998, 
112 Stat. 3360, 3365; Pub. L. 107-95, Sec. 8(a), Dec. 21, 2001, 115 
Stat. 919; Pub. L. 107-135, title Sec. 1707 CH. 17-MEDICAL CARE 170 

II, Sec. 203, Jan. 23, 2002, 115 Stat. 2458; Pub. L. 109-461, 
title II, Sec. 208(a), 
Dec. 22, 2006, 120 Stat. 3413.) 

ï¿½ 1707. Limitations 

(a) Funds appropriated to carry out this chapter may not be 
used for purposes that are inconsistent with the Assisted Suicide 
Funding Restriction Act of 1997 (42 U.S.C. 14401 et seq.). 
(b) The Secretary may furnish sensori-neural aids only in accordance 
with guidelines prescribed by the Secretary. (Added Pub. L. 105-12, 
Sec. 9(i)(1), Apr. 30, 1997, 111 Stat. 27; amended Pub. L. 
107-135, title II, Sec. 208(a)(2), (f)(2), Jan. 23, 2002, 115 Stat. 
2462, 2464; Pub. L. 
107-330, title III, Sec. 308(g)(5), Dec. 6, 2002, 116 Stat. 2829.) 

ï¿½ 1708. Temporary lodging 

(a) The Secretary may furnish persons described in subsection 
(b) with temporary lodging in a Fisher house or other appropriate 
facility in connection with the examination, treatment, or care of 
a veteran under this chapter or, as provided for under subsection 
(e)(5), in connection with benefits administered under this title. 
(b) Persons to whom the Secretary may provide lodging under 
subsection (a) are the following: 
(1) A veteran who must travel a significant distance to receive 
care or services under this title. 
(2) A member of the family of a veteran and others who 
accompany a veteran and provide the equivalent of familial 
support for such veteran. 
(c) In this section, the term ï¿½ï¿½Fisher houseï¿½ï¿½ means a housing 
facility that- 
(1) is located at, or in proximity to, a Department medical 
facility; 
(2) is available for residential use on a temporary basis by 
patients of that facility and others described in subsection 
(b)(2); and 
(3) is constructed by, and donated to the Secretary by, the 
Zachary and Elizabeth M. Fisher Armed Services Foundation. 
(d) The Secretary may establish charges for providing lodging 
under this section. The proceeds from such charges shall be credited 
to the medical services account and shall be available until expended 
for the purposes of providing such lodging. 
(e) The Secretary shall prescribe regulations to carry out this 
section. Such regulations shall include provisions- 
(1) limiting the duration of lodging provided under this 
section; 
(2) establishing standards and criteria under which 
charges are established for such lodging under subsection (d); 
(3) establishing criteria for persons considered to be accompanying a 
veteran under subsection (b)(2); 
(4) establishing criteria for the use of the premises of temporary 
lodging facilities under this section; and 
(5) establishing any other limitations, conditions, and priorities that 
the Secretary considers appropriate with respect to 
lodging under this section. 
(Added Pub. L. 106-419, title II, Sec. 221(a), Nov. 1, 2000, 114 Stat. 
1844; amended 
Pub. L. 110-387, title IX, Sec. 901(a)(8), Oct. 10, 2008, 122 Stat. 
4142.) 


171 CH. 17-MEDICAL CARE Sec. 1710 

SUBCHAPTER II-HOSPITAL, NURSING HOME, OR 
DOMICILIARY CARE AND MEDICAL TREATMENT 


ï¿½ 1710. Eligibility for hospital, nursing home, and domiciliary care 

(a)(1) The Secretary (subject to paragraph (4)) shall furnish 
hospital care and medical services which the Secretary determines 
to be needed- 

(A) to any veteran for a service-connected disability; and 
(B) to any veteran who has a service-connected disability 
rated at 50 percent or more. 
(2) The Secretary (subject to paragraph (4)) shall furnish hospital 
care and medical services, and may furnish nursing home 
care, which the Secretary determines to be needed to any veteran- 
(A) who has a compensable service-connected disability 
rated less than 50 percent or, with respect to nursing home 
care during any period during which the provisions of section 
1710A(a) of this title are in effect, a compensable service-connected 
disability rated less than 70 percent; 
(B) whose discharge or release from active military, naval, 
or air service was for a disability that was incurred or aggravated in 
the line of duty; 
(C) who is in receipt of, or who, but for a suspension pursuant to 
section 1151 of this title (or both a suspension and the 
receipt of retired pay), would be entitled to disability compensation, 
but only to the extent that such veteranï¿½s continuing eligibility for 
such care is provided for in the judgment 
or settlement provided for in such section; 
(D) who is a former prisoner of war or who was awarded 
the Purple Heart; 
(E) who is a veteran of the Mexican border period or of 
World War I; 
(F) who was exposed to a toxic substance, radiation, or 
other conditions, as provided in subsection (e); or 
(G) who is unable to defray the expenses of necessary care 
as determined under section 1722(a) of this title. 
(3) In the case of a veteran who is not described in paragraphs 
(1) and (2), the Secretary may, to the extent resources and facilities 
are available and subject to the provisions of subsections (f) and 
(g), furnish hospital care, medical services, and nursing home care 
which the Secretary determines to be needed. 
(4) The requirement in paragraphs (1) and (2) that the Secretary 
furnish hospital care and medical services, the requirement 
in section 1710A(a) of this title that the Secretary provide nursing 
home care, the requirement in section 1710B of this title that the 
Secretary provide a program of extended care services, and the 
requirement in section 1745 of this title to provide nursing home 
care and prescription medicines to veterans with service-connected 
disabilities in State homes shall be effective in any fiscal year 
only to 
the extent and in the amount provided in advance in appropriations 
Acts for such purposes. 
(5) During any period during which the provisions of section 
1710A(a) of this title are not in effect, the Secretary may furnish 
nursing home care which the Secretary determines is needed to 

Sec. 1710 CH. 17-MEDICAL CARE 172 

any veteran described in paragraph (1), with the priority for such 
care on the same basis as if provided under that paragraph. 

(b)(1) The Secretary may furnish to a veteran described in 
paragraph (2) of this subsection such domiciliary care as the 
Secretary determines is needed for the purpose of the furnishing of 
medical services to the veteran. 

(2) This subsection applies in the case of the following veterans: 
(A) Any veteran whose annual income (as determined 
under section 1503 of this title) does not exceed the maximum 
annual rate of pension that would be applicable to the veteran 
if the veteran were eligible for pension under section 1521(d) 
of this title. 
(B) Any veteran who the Secretary determines has no adequate means 
of support. 
(c) While any veteran is receiving hospital care or nursing 
home care in any Department facility, the Secretary may, within 
the limits of Department facilities, furnish medical services to 
correct or treat any non-service-connected disability of such veteran, 
in addition to treatment incident to the disability for which such 
veteran is hospitalized, if the veteran is willing, and the Secretary 
finds such services to be reasonably necessary to protect the health 
of such veteran. The Secretary may furnish dental services and 
treatment, and related dental appliances, under this subsection for 
a non-service-connected dental condition or disability of a veteran 
only (1) to the extent that the Secretary determines that the dental 
facilities of the Department to be used to furnish such services, 
treatment, or appliances are not needed to furnish services, 
treatment, or appliances for dental conditions or disabilities 
described 
in section 1712(a) of this title, or (2) if (A) such non-service-
connected dental condition or disability is associated with or 
aggravating a disability for which such veteran is receiving hospital 
care, 
or (B) a compelling medical reason or a dental emergency requires 
furnishing dental services, treatment, or appliances (excluding the 
furnishing of such services, treatment, or appliances of a routine 
nature) to such veteran during the period of hospitalization under 
this section. 
(d) In no case may nursing home care be furnished in a hospital not 
under the direct jurisdiction of the Secretary except as 
provided in section 1720 of this title. 
(e)(1)(A) A Vietnam-era herbicide-exposed veteran is eligible 
(subject to paragraph (2)) for hospital care, medical services, and 
nursing home care under subsection (a)(2)(F) for any disability, 
notwithstanding that there is insufficient medical evidence to conclude 
that such disability may be associated with such exposure. 

(B) A radiation-exposed veteran is eligible for hospital care, 
medical services, and nursing home care under subsection (a)(2)(F) 
for any disease suffered by the veteran that is- 
(i) a disease listed in section 1112(c)(2) of this title; or 
(ii) any other disease for which the Secretary, based on the 
advice of the Advisory Committee on Environmental Hazards, 
determines that there is credible evidence of a positive association 
between occurrence of the disease in humans and exposure 
to ionizing radiation. 

173 CH. 17-MEDICAL CARE Sec. 1710 

(C) Subject to paragraphs (2) and (3) of this subsection, a veteran 
who served on active duty in the Southwest Asia theater of 
operations during the Persian Gulf War is eligible for hospital care, 
medical services, and nursing home care under subsection (a)(2)(F) 
for any disability, notwithstanding that there is insufficient medical 
evidence to conclude that such disability may be associated 
with such service. 
(D) Subject to paragraphs (2) and (3), a veteran who served on 
active duty in a theater of combat operations (as determined by the 
Secretary in consultation with the Secretary of Defense) during a 
period of war after the Persian Gulf War, or in combat against a 
hostile force during a period of hostilities (as defined in section 
1712A(a)(2)(B) of this title) after November 11, 1998, is eligible for 
hospital care, medical services, and nursing home care under subsection 
(a)(2)(F) for any illness, notwithstanding that there is insufficient 
medical evidence to conclude that such condition is attributable to 
such service. 
(E) Subject to paragraph (2), a veteran who participated in a 
test conducted by the Department of Defense Deseret Test Center 
as part of a program for chemical and biological warfare testing 
from 1962 through 1973 (including the program designated as 
ï¿½ï¿½Project Shipboard Hazard and Defense (SHAD)ï¿½ï¿½ and related land-
based tests) is eligible for hospital care, medical services, and 
nursing home care under subsection (a)(2)(F) for any illness, 
notwithstanding that there is insufficient medical evidence to conclude 
that such illness is attributable to such testing. 
(2)(A) In the case of a veteran described in paragraph (1)(A), 
hospital care, medical services, and nursing home care may not be 
provided under subsection (a)(2)(F) with respect to- 

(i) a disability that is found, in accordance with guidelines 
issued by the Under Secretary for Health, to have resulted 
from a cause other than an exposure described in paragraph 
(4)(A)(ii); or 
(ii) a disease for which the National Academy of Sciences, 
in a report issued in accordance with section 3 of the Agent Orange 
Act of 1991, has determined that there is limited or suggestive 
evidence of the lack of a positive association between 
occurrence of the disease in humans and exposure to a herbicide agent. 
(B) In the case of a veteran described in subparagraph (C), (D), 
or (E) of paragraph (1), hospital care, medical services, and nursing 
home care may not be provided under subsection (a)(2)(F) with respect 
to a disability that is found, in accordance with guidelines 
issued by the Under Secretary for Health, to have resulted from a 
cause other than the service or testing described in such subparagraph. 
(3) Hospital care, medical services, and nursing home care may 
not be provided under or by virtue of subsection (a)(2)(F)- 
(A) in the case of care for a veteran described in paragraph 
(1)(A), after December 31, 2002; 
(B) in the case of care for a veteran described in paragraph 
(1)(C), after December 31, 2002; and 
(C) in the case of care for a veteran described in paragraph 
(1)(D) who- 

Sec. 1710 CH. 17-MEDICAL CARE 174 

(i) is discharged or released from the active military, 
naval, or air service after the date that is five years before 
the date of the enactment of the National Defense Authorization Act 
for Fiscal Year 2008, after a period of five years 
beginning on the date of such discharge or release; or 
(ii) is so discharged or released more than five years 
before the date of the enactment of that Act and who did 
not enroll in the patient enrollment system under section 
1705 of this title before such date, after a period of three 
years beginning on the date of the enactment of that Act. 
(4) For purposes of this subsection- 
(A) The term ï¿½ï¿½Vietnam-era herbicide-exposed veteranï¿½ï¿½ 
means a veteran (i) who served on active duty in the Republic 
of Vietnam during the during the period beginning on January 
9, 1962, and ending on May 7, 1975, and (ii) who the Secretary 
finds may have been exposed during such service to dioxin or 
was exposed during such service to a toxic substance found in 
a herbicide or defoliant used for military purposes during such 
period. 
(B) The term ï¿½ï¿½radiation-exposed veteranï¿½ï¿½ has the meaning 
given that term in section 1112(c)(3) of this title. 
(5) When the Secretary first provides care for veterans using 
the authority provided in paragraph (1)(D), the Secretary shall 
establish a system for collection and analysis of information on the 
general health status and health care utilization patterns of 
veterans receiving care under that paragraph. Not later than 18 
months after first providing care under such authority, the Secretary 
shall submit to Congress a report on the experience under 
that authority. The Secretary shall include in the report any 
recommendations of the Secretary for extension of that authority. 
(f)(1) The Secretary may not furnish hospital care or nursing 
home care (except if such care constitutes hospice care) under this 
section to a veteran who is eligible for such care under subsection 
(a)(3) of this section unless the veteran agrees to pay to the United 
States the applicable amount determined under paragraph (2) or 

(4) of this subsection. 
(2) A veteran who is furnished hospital care or nursing home 
care under this section and who is required under paragraph (1) of 
this subsection to agree to pay an amount to the United States in 
order to be furnished such care shall be liable to the United States 
for an amount equal to- 
(A) the lesser of- 
(i) the cost of furnishing such care, as determined by 
the Secretary; or 
(ii) the amount determined under paragraph (3) of this 
subsection; and 
(B) before September 30, 2010, an amount equal to $10 for 
every day the veteran receives hospital care and $5 for every 
day the veteran receives nursing home care. 
(3)(A) In the case of hospital care furnished during any 365
day period, the amount referred to in paragraph (2)(A)(ii) of this 
subsection is- 

(i) the amount of the inpatient Medicare deductible, plus 
(ii) one-half of such amount for each 90 days of care (or frac

175 CH. 17-MEDICAL CARE Sec. 1710 

tion thereof) after the first 90 days of such care during such 
365-day period. 

(B) In the case of nursing home care furnished during any 365day
period, the amount referred to in paragraph (2)(A)(ii) of this 
subsection is the amount of the inpatient Medicare deductible for 
each 90 days of such care (or fraction thereof) during such 365-day 
period. 
(C)(i) Except as provided in clause (ii) of this subparagraph, in 
the case of a veteran who is admitted for nursing home care under 
this section after being furnished, during the preceding 365-day 
period, hospital care for which the veteran has paid the amount of 
the inpatient Medicare deductible under this subsection and who 
has not been furnished 90 days of hospital care in connection with 
such payment, the veteran shall not incur any liability under 
paragraph (2) of this subsection with respect to such nursing home care 
until- 

(I) the veteran has been furnished, beginning with the first 
day of such hospital care furnished in connection with such 
payment, a total of 90 days of hospital care and nursing home 
care; or 
(II) the end of the 365-day period applicable to the hospital 
care for which payment was made, 
whichever occurs first. 


(ii) In the case of a veteran who is admitted for nursing home 
care under this section after being furnished, during any 365-day 
period, hospital care for which the veteran has paid an amount 
under subparagraph (A)(ii) of this paragraph and who has not been 
furnished 90 days of hospital care in connection with such payment, the 
amount of the liability of the veteran under paragraph 
(2) of this subsection with respect to the number of days of such 
nursing home care which, when added to the number of days of 
such hospital care, is 90 or less, is the difference between the 
inpatient Medicare deductible and the amount paid under such 
subparagraph until- 
(I) the veteran has been furnished, beginning with the first 
day of such hospital care furnished in connection with such 
payment, a total of 90 days of hospital care and nursing home 
care; or 
(II) the end of the 365-day period applicable to the hospital 
care for which payment was made, 
whichever occurs first. 


(D) In the case of a veteran who is admitted for hospital care 
under this section after having been furnished, during the preceding 
365-day period, nursing home care for which the veteran 
has paid the amount of the inpatient Medicare deductible under 
this subsection and who has not been furnished 90 days of nursing 
home care in connection with such payment, the veteran shall not 
incur any liability under paragraph (2) of this subsection with 
respect to such hospital care until- 
(i) the veteran has been furnished, beginning with the first 
day of such nursing home care furnished in connection with 
such payment, a total of 90 days of nursing home care and hospital 
care; or 

Sec. 1710 CH. 17-MEDICAL CARE 176 

(ii) the end of the 365-day period applicable to the nursing 
home care for which payment was made, 
whichever occurs first. 
(E) A veteran may not be required to make a payment under 
this subsection for hospital care or nursing home care furnished 
under this section during any 90-day period in which the veteran 
is furnished medical services under paragraph (3) of subsection (a) 
to the extent that such payment would cause the total amount paid 
by the veteran under this subsection for hospital care and nursing 
home care furnished during that period and under subsection (g) 
for medical services furnished during that period to exceed the 
amount of the inpatient Medicare deductible in effect on the first 
day of such period. 
(F) A veteran may not be required to make a payment under 
this subsection or subsection (g) for any days of care in excess of 
360 days of care during any 365-calendar-day period. 
(4) In the case of a veteran covered by this subsection who is 
also described by section 1705(a)(7) of this title, the amount for 
which the veteran shall be liable to the United States for hospital 
care under this subsection shall be an amount equal to 20 percent 
of the total amount for which the veteran would otherwise be liable 
for such care under subparagraphs (2)(B) and (3)(A) but for this 
paragraph. 
(5) For the purposes of this subsection, the term ï¿½ï¿½inpatient 
Medicare deductibleï¿½ï¿½ means the amount of the inpatient hospital 
deductible in effect under section 1813(b) of the Social Security Act 
(42 U.S.C. 1395e(b)) on the first day of the 365-day period applicable 
under paragraph (3) of this subsection. 
(g)(1) The Secretary may not furnish medical services (except 
if such care constitutes hospice care) under subsection (a) of this 
section (including home health services under section 1717 of this 
title) to a veteran who is eligible for hospital care under this 
chapter by reason of subsection (a)(3) of this section unless the 
veteran 
agrees to pay to the United States in the case of each outpatient 
visit the applicable amount or amounts established by the Secretary by 
regulation. 

(2) A veteran who is furnished medical services under subsection (a) of 
this section and who is required under paragraph (1) 
of this subsection to agree to pay an amount to the United States 
in order to be furnished such services shall be liable to the United 
States, in the case of each visit in which such services are furnished 
to the veteran, for an amount which the Secretary shall establish by 
regulation. 
(3) This subsection does not apply with respect to home health 
services under section 1717 of this title to the extent that such 
services are for improvements and structural alterations. 
(h) Nothing in this section requires the Secretary to furnish 
care to a veteran to whom another agency of Federal, State, or 
local government has a duty under law to provide care in an institution 
of such government. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1141, Sec. 610; Pub. L. 87-583, 
Sec. 1, Aug. 
14, 1962, 76 Stat. 381; Pub. L. 89-358, Sec. 8, Mar. 3, 1966, 80 Stat. 
27; Pub. L. 
89-785, title III, Sec. 304, Nov. 7, 1966, 80 Stat. 1377; Pub. L. 
91-500, Sec. 4, Oct. 
22, 1970, 84 Stat. 1096; Pub. L. 93-82, title I, Sec. 102, Aug. 2, 
1973, 87 Stat. 180; 


177 CH. 17-MEDICAL CARE Sec. 1710A 

Pub. L. 94-581, title II, Sec. 202(d), 210(a)(1), Oct. 21, 1976, 90 
Stat. 2855, 2862; 
Pub. L. 96-22, title I, Sec. 102(a), June 13, 1979, 93 Stat. 47; 
Pub. L. 97-37, Sec. 
5(a), Aug. 14, 1981, 95 Stat. 936; Pub. L. 97-72, title I, Sec. 
102(a), Nov. 3, 1981, 
95 Stat. 1047; Pub. L. 98-160, title VII, Sec. 701, Nov. 21, 1983, 
97 Stat. 1008; Pub. 

L. 99-166, title I, Sec. 103, Dec. 3, 1985, 99 Stat. 944; Pub. L. 
99-272, title XIX, Sec. 19011(a), (d)(3), Apr. 7, 1986, 100 Stat. 
372, 379; Pub. L. 99-576, title II, Sec. 237(a), (b)(1), Oct. 28, 
1986, 100 Stat. 3267; Pub. L. 100-322, title I, Sec. 102(a), May 20, 
1988, 102 Stat. 492; Pub. L. 100-687, div. B, title XII, Sec. 1202, 
Nov. 18, 1988, 102 Stat. 4125; Pub. L. 101-508, title VIII, Sec. 
8013(a), Nov. 5, 1990, 104 Stat. 1388-346; Pub. L. 102-4, Sec. 5, 
Feb. 6, 1991, 105 Stat. 15; Pub. L. 102-54, Sec. 14(b)(10), June 13, 
1991, 105 Stat. 283; renumbered Sec. 1710 and amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984; Pub. L. 103-210, Sec. 1(a), 2(a), Dec. 20, 1993, 107 Stat. 
2496, 2497; Pub. L. 103-446, title XII, Sec. 1201(d)(2), Nov. 2, 1994, 
108 Stat. 4684; Pub. L. 103-452, title I, Sec. 103(a)(1), Nov. 2, 1994, 
108 Stat. 4786; Pub. L. 104-110, title I, Sec. 101(a)(1), Feb. 13, 
1996, 110 Stat. 768; Pub. L. 104-262, title I, Secs. 101(a), (b), 
(d)(2)-(4), 102(a), Oct. 9, 1996, 110 Stat. 3178, 3179, 3181; Pub. L.
104-275, title V, Sec. 505(c), Oct. 9, 1996, 110 Stat. 3342; Pub. L. 
105-33, title VIII, Secs. 8021(a)(1), 8023(b)(1), (2), Aug. 5, 1997, 
111 Stat. 664, 667; Pub. L. 105-114, title II, Sec. 209(a), title IV, 
Sec. 402(a), Nov. 21, 1997, 111 Stat. 2290, 2294; Pub. L. 105-368, 
title I, Sec. 102(a), title X, Sec. 1005(b)(3), Nov. 11, 1998, 112 
Stat. 3321, 3365; Pub. L. 106-117, title I, Secs. 101(f), 112(1), 
title II, Sec. 201(b), Nov. 30, 1999, 113 Stat. 1550, 1556, 1561; 
Pub. L. 106-419, title II, Sec. 224(b), Nov. 1, 2000, 114 Stat. 1846; 
Pub. L. 107-135, title II, Secs. 202(b), 209(a), 211, Jan. 23, 2002, 
115 Stat. 2457, 2464, 2465; Pub. L. 107-330, title III, Sec. 308(g)(6), 
Dec. 6, 2002, 116 Stat. 2829; Pub. L. 108-170, title I, Sec. 102, 
Dec. 6, 2003, 117 Stat. 2044; Pub. L. 109-444, Sec. 2(a), Dec. 21, 
2006, 120 Stat. 3304; Pub. L. 109-461, title II, Sec. 211(a)(3)(B), 
title X, Secs. 1003, 1006(b), Dec. 22, 2006, 120 Stat. 3419, 3465, 
3468; Pub. L. 110-161, div. I, title II, Sec. 231, Dec. 26, 2007, 121 
Stat. 2273; Pub. L. 110-181, div. A, title XVII, Sec. 1707, Jan. 28, 
2008, 122 Stat. 493; Pub. L. 110-329, div. E, title II, Sec. 224, Sept. 
30, 2008, 122 Stat. 3713; Pub. L. 110-387, title IV, Sec. 409, title 
VIII, Secs. 803, 804(a), Oct. 10, 2008, 122 Stat. 4130, 4141.) 
ï¿½ 1710A. Required nursing home care 

(a) The Secretary (subject to section 1710(a)(4) of this title) 
shall provide nursing home care which the Secretary determines is 
needed (1) to any veteran in need of such care for a service-connected 
disability, and (2) to any veteran who is in need of such care 
and who has a service-connected disability rated at 70 percent or 
more. 
(b)(1) The Secretary shall ensure that a veteran described in 
subsection (a) who continues to need nursing home care is not, 
after placement in a Department nursing home, transferred from 
the facility without the consent of the veteran, or, in the event the 
veteran cannot provide informed consent, the representative of the 
veteran. 

(2) Nothing in subsection (a) may be construed as authorizing 
or requiring that a veteran who is receiving nursing home care in 
a Department nursing home on the date of the enactment of this 
section be displaced, transferred, or discharged from the facility. 
(c) The Secretary shall ensure that nursing home care provided 
under subsection (a) is provided in an age-appropriate manner. 
(d) The provisions of subsection (a) shall terminate on December 31, 
2013. (Added Pub. L. 106-117, title I, Sec. 101(a)(1), Nov. 30, 1999, 
113 Stat. 1547; amended Pub. L. 106-419, title II, Sec. 224(a), Nov. 1, 
2000, 114 Stat. 1846; Pub. L. 108-170, title I, Sec. 106(b), Dec. 6, 
2003, 117 Stat. 2046; Pub. L. 110-181, div. A, title XVII, Sec. 
1706(b), Jan. 28, 2008, 122 Stat. 493; Pub. L. 110-387, title VIII, 
Sec. 805, Oct. 10, 2008, 122 Stat. 4141.) 

Sec. 1710B CH. 17-MEDICAL CARE 178 

ï¿½ 1710B. Extended care services 

(a) The Secretary (subject to section 1710(a)(4) of this title and 
subsection (c) of this section) shall operate and maintain a program 
to provide extended care services to eligible veterans in accordance 
with this section. Such services shall include the following: 
(1) Geriatric evaluation. 
(2) Nursing home care (A) in facilities operated by the Secretary, 
and (B) in community-based facilities through contracts 
under section 1720 of this title. 
(3) Domiciliary services under section 1710(b) of this title. 
(4) Adult day health care under section 1720(f) of this title. 
(5) Such other noninstitutional alternatives to nursing 
home care as the Secretary may furnish as medical services 
under section 1701(10) of this title. 
(6) Respite care under section 1720B of this title. 
(b) The Secretary shall ensure that the staffing and level of extended 
care services provided by the Secretary nationally in facilities of the 
Department during any fiscal year is not less than the 
staffing and level of such services provided nationally in facilities 
of the Department during fiscal year 1998. 
(c)(1) Except as provided in paragraph (2), the Secretary may 
not furnish extended care services for a non-service-connected 
disability other than in the case of a veteran who has a compensable 
service-connected disability unless the veteran agrees to pay to the 
United States a copayment (determined in accordance with subsection 
(d)) for any period of such services in a year after the first 
21 days of such services provided that veteran in that year. 

(2) Paragraph (1) shall not apply- 
(A) to a veteran whose annual income (determined under 
section 1503 of this title) is less than the amount in effect 
under section 1521(b) of this title; 
(B) to a veteran being furnished hospice care under this 
section; or 
(C) with respect to an episode of extended care services 
that a veteran is being furnished by the Department on November 30, 
1999. 
(d)(1) A veteran who is furnished extended care services under 
this chapter and who is required under subsection (c) to pay an 
amount to the United States in order to be furnished such services 
shall be liable to the United States for that amount. 

(2) In implementing subsection (c), the Secretary shall develop 
a methodology for establishing the amount of the copayment for 
which a veteran described in subsection (c) is liable. That 
methodology shall provide for- 
(A) establishing a maximum monthly copayment (based on 
all income and assets of the veteran and the spouse of such 
veteran); 
(B) protecting the spouse of a veteran from financial hardship by 
not counting all of the income and assets of the veteran 
and spouse (in the case of a spouse who resides in the community) 
as available for determining the copayment obligation; 
and 

179 CH. 17-MEDICAL CARE Sec. 1710C 

(C) allowing the veteran to retain a monthly personal allowance. 
(e)(1) There is established in the Treasury of the United States 
a revolving fund known as the Department of Veterans Affairs Extended 
Care Fund (hereinafter in this section referred to as the 
ï¿½ï¿½fundï¿½ï¿½). Amounts in the fund shall be available, without fiscal year 
limitation and without further appropriation, exclusively for the 
purpose of providing extended care services under subsection (a). 

(2) All amounts received by the Department under this section 
shall be deposited in or credited to the fund. 
(Added Pub. L. 106-117, title I, Sec. 101(c)(1), Nov. 30, 1999, 
113 Stat. 1548; amended Pub. L. 107-14, Sec. 8(a)(2), (16), June 5, 
2001, 115 Stat. 34, 35; Pub. L. 107- 
103, title V, Sec. 509(b), Dec. 27, 2001, 115 Stat. 997; Pub. L. 
108-422, title II, Sec. 
204, Nov. 30, 2004, 118 Stat. 2382.) 

ï¿½ 1710C. Traumatic brain injury: plans for rehabilitation 
and reintegration into the community 

(a) PLAN REQUIRED.-The Secretary shall, for each individual 
who is a veteran or member of the Armed Forces who receives inpatient 
or outpatient rehabilitative hospital care or medical services provided 
by the Department for a traumatic brain injury- 
(1) develop an individualized plan for the rehabilitation 
and reintegration of the individual into the community; and 
(2) provide such plan in writing to the individual- 
(A) in the case of an individual receiving inpatient 
care, before the individual is discharged from inpatient 
care or after the individualï¿½s transition from serving on active duty 
as a member of the Armed Forces to receiving 
outpatient care provided by the Department; or 
(B) as soon as practicable following a diagnosis of 
traumatic brain injury by a Department health care provider. 
(b) CONTENTS OF PLAN.-Each plan developed under subsection 
(a) shall include, for the individual covered by such plan, the 
following: 
(1) Rehabilitation objectives for improving the physical, 
cognitive, and vocational functioning of the individual with the 
goal of maximizing the independence and reintegration of such 
individual into the community. 
(2) Access, as warranted, to all appropriate rehabilitative 
components of the traumatic brain injury continuum of care, 
and where appropriate, to long-term care services. 
(3) A description of specific rehabilitative treatments and 
other services to achieve the objectives described in paragraph 
(1), which shall set forth the type, frequency, duration, and location 
of such treatments and services. 
(4) The name of the case manager designated in accordance with 
subsection (d) to be responsible for the implementation of such plan. 
(5) Dates on which the effectiveness of such plan will be 
reviewed in accordance with subsection (f). 
(c) COMPREHENSIVE ASSESSMENT.-(1) Each plan developed 
under subsection (a) shall be based on a comprehensive assessment, 
developed in accordance with paragraph (2), of- 

Sec. 1710C CH. 17-MEDICAL CARE 180 

(A) the physical, cognitive, vocational, and neuropsychological and 
social impairments of the individual; and 
(B) the family education and family support needs of the 
individual after the individual is discharged from inpatient 
care or at the commencement of and during the receipt of outpatient 
care and services. 
(2) The comprehensive assessment required under paragraph 
(1) with respect to an individual is a comprehensive assessment of 
the matters set forth in that paragraph by a team, composed by the 
Secretary for purposes of the assessment, of individuals with expertise 
in traumatic brain injury, including any of the following: 
(A) A neurologist. 
(B) A rehabilitation physician. 
(C) A social worker. 
(D) A neuropsychologist. 
(E) A physical therapist. 
(F) A vocational rehabilitation specialist. 
(G) An occupational therapist. 
(H) A speech language pathologist. 
(I) A rehabilitation nurse. 
(J) An educational therapist. 
(K) An audiologist. 
(L) A blind rehabilitation specialist. 
(M) A recreational therapist. 
(N) A low vision optometrist. 
(O) An orthotist or prosthetist. 
(P) An assistive technologist or rehabilitation engineer. 
(Q) An otolaryngology physician. 
(R) A dietician. 
(S) An opthamologist. 
(T) A psychiatrist. 
(d) CASE MANAGER.-(1) The Secretary shall designate a case 
manager for each individual described in subsection (a) to be 
responsible for the implementation of the plan developed for that 
individual under that subsection and the coordination of the 
individualï¿½s medical care. 
(2) The Secretary shall ensure that each case manager has specific 
expertise in the care required by the individual for whom the 
case manager is designated, regardless of whether the case manager
obtains such expertise through experience, education, or training. 
(e) PARTICIPATION AND COLLABORATION IN DEVELOPMENT OF 
PLANS.-(1) The Secretary shall involve each individual described 
in subsection (a), and the family or legal guardian of such 
individual, in the development of the plan for such individual under 
that subsection to the maximum extent practicable. 
(2) The Secretary shall collaborate in the development of a 
plan for an individual under subsection (a) with a State protection 
and advocacy system if- 
(A) the individual covered by the plan requests such collaboration; or 
(B) in the case of such an individual who is incapacitated, 
the family or guardian of the individual requests such collaboration. 

181 CH. 17-MEDICAL CARE Sec. 1710D 

(3) In the case of a plan required by subsection (a) for a member of 
the Armed Forces who is serving on active duty, the Secretary shall 
collaborate with the Secretary of Defense in the development of such 
plan. 
(4) In developing vocational rehabilitation objectives required 
under subsection (b)(1) and in conducting the assessment required 
under subsection (c), the Secretary shall act through the Under 
Secretary for Health in coordination with the Vocational Rehabilitation 
and Employment Service of the Department of Veterans Affairs. 
(f) EVALUATION.- 
(1) PERIODIC REVIEW BY SECRETARY.-The Secretary shall 
periodically review the effectiveness of each plan developed 
under subsection (a). The Secretary shall refine each such plan 
as the Secretary considers appropriate in light of such review. 
(2) REQUEST FOR REVIEW BY VETERANS.-In addition to the 
periodic review required by paragraph (1), the Secretary shall 
conduct a review of the plan for an individual under paragraph 
(1) at the request of the individual, or in the case of an individual 
who is incapacitated, at the request of the guardian or 
designee of the individual. 
(g) STATE DESIGNATED PROTECTION AND ADVOCACY SYSTEM DEFINED.-In this 
section, the term ï¿½ï¿½State protection and advocacy 
systemï¿½ï¿½ means a system established in a State under subtitle C of 
the Developmental Disabilities Assistance and Bill of Rights Act of 
2000 (42 U.S.C. 15041 et seq.) to protect and advocate for the 
rights of persons with development disabilities. 
(Added Pub. L. 110-181, div. A, title XVII, Sec. 1702(a), Jan. 28, 
2008, 122 Stat. 
486.) 

ï¿½ 1710D. Traumatic brain injury: comprehensive program 
for long-term rehabilitation 

(a) COMPREHENSIVE PROGRAM.-In developing plans for the rehabilitation 
and reintegration of individuals with traumatic brain 
injury under section 1710C of this title, the Secretary shall develop 
and carry out a comprehensive program of long-term care for post-
acute traumatic brain injury rehabilitation that includes residential, 
community, and home-based components utilizing interdisciplinary 
treatment teams. 
(b) LOCATION OF PROGRAM.-The Secretary shall carry out the 
program developed under subsection (a) in each Department 
polytrauma rehabilitation center designated by the Secretary. 
(c) ELIGIBILITY.-A veteran is eligible for care under the program 
developed under subsection (a) if the veteran is otherwise eligible to 
receive hospital care and medical services under section 
1710 of this title and- 
(1) served on active duty in a theater of combat operations 
(as determined by the Secretary in consultation with the Secretary of 
Defense) during a period of war after the Persian 
Gulf War, or in combat against a hostile force during a period 
of hostilities (as defined in section 1712A(a)(2)(B) of this title) 
after November 11, 1998; 
(2) is diagnosed as suffering from moderate to severe traumatic brain 
injury; and 

Sec. 1710E CH. 17-MEDICAL CARE 182 

(3) is unable to manage routine activities of daily living 
without supervision or assistance, as determined by the Secretary. 
(d) REPORT.-Not later than one year after the date of the enactment of 
this section, and annually thereafter, the Secretary 
shall submit to the Committees on Veteransï¿½ Affairs of the Senate 
and the House of Representatives a report containing the following 
information: 
(1) A description of the operation of the program. 
(2) The number of veterans provided care under the program during the 
year preceding such report. 
(3) The cost of operating the program during the year preceding such 
report. 
(Added Pub. L. 110-181, div. A, title XVII, Sec. 1702(a), Jan. 28, 
2008, 122 Stat. 
488.) 

ï¿½ 1710E. Traumatic brain injury: use of non-Department facilities for 
rehabilitation 

(a) COOPERATIVE AGREEMENTS.-The Secretary, in implementing and 
carrying out a plan developed under section 1710C of 
this title, may provide hospital care and medical services through 
cooperative agreements with appropriate public or private entities 
that have established long-term neurobehavioral rehabilitation and 
recovery programs. 
(b) AUTHORITIES OF STATE PROTECTION AND ADVOCACY SYSTEMS.-Nothing in 
subtitle C of the Developmental Disabilities Assistance and Bill of 
Rights Act of 2000 shall be construed as preventing a State protection 
and advocacy system (as defined in section 1710C(g) of this title) 
from exercising the authorities described 
in such subtitle with respect to individuals provided rehabilitative 
treatment or services under section 1710C of this title in a non-
Department facility. 
(Added Pub. L. 110-181, div. A, title XVII, Sec. 1703(a), Jan. 28, 
2008, 122 Stat. 
489.) 

ï¿½ 1711. Care during examinations and in emergencies 

(a) The Secretary may furnish hospital care incident to physical 
examinations where such examinations are necessary in carrying out 
the provisions of other laws administered by the Secretary. 
ï¿½(b) Repealed. Pub. L. 107-135, title II, Sec. 208(d), Jan. 23, 
2002, 115 Stat. 2463.ï¿½ 

(c)(1) The Secretary may contract with any organization named 
in, or approved by the Secretary under, section 5902 of this title 
to provide for the furnishing by the Secretary, on a reimbursable 
basis (as prescribed by the Secretary), of emergency medical services 
to individuals attending any national convention of such organization, 
except that reimbursement shall not be required for services furnished 
under this subsection to the extent that the individual receiving such 
services would otherwise be eligible under 
this chapter for medical services. 

(2) The authority of the Secretary to enter into contracts under 
this subsection shall be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriation Acts. 

183 CH. 17-MEDICAL CARE Sec. 1712 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1142, Sec. 611; Pub. L. 
94-581, title II, Sec. 202(e), 210(a)(2), Oct. 21, 1976, 90 Stat. 2856, 
2862; Pub. L. 96-22, title II, Sec. 202, June 13, 1979, 93 Stat. 54; 
Pub. L. 96-128, title V, Sec. 501(a), Nov. 28, 1979, 93 Stat. 987; 
Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 1711 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 107-135, title II, 
Sec. 208(d), Jan. 23, 2002, 115 
Stat. 2463.) 

ï¿½ 1712. Dental care; drugs and medicines for certain disabled veterans; 
vaccines 

(a)(1) Outpatient dental services and treatment, and related 
dental appliances, shall be furnished under this section only for a 
dental condition or disability- 

(A) which is service-connected and compensable in degree; 
(B) which is service-connected, but not compensable in degree, but only 
if- 
(i) the dental condition or disability is shown to have 
been in existence at the time of the veteranï¿½s discharge or 
release from active military, naval, or air service; 
(ii) the veteran had served on active duty for a period 
of not less than 180 days or, in the case of a veteran who 
served on active duty during the Persian Gulf War, 90 
days immediately before such discharge or release; 
(iii) application for treatment is made within 180 days 
after such discharge or release, except that (I) in the case 
of a veteran who reentered active military, naval, or air 
service within 90 days after the date of such veteranï¿½s 
prior discharge or release from such service, application 
may be made within 180 days from the date of such veteranï¿½s subsequent 
discharge or release from such service, 
and (II) if a disqualifying discharge or release has been 
corrected by competent authority, application may be made 
within 180 days after the date of correction; and 
(iv) the veteranï¿½s certificate of discharge or release 
from active duty does not bear a certification that the veteran was 
provided, within the 90-day period immediately 
before the date of such discharge or release, a complete 
dental examination (including dental X-rays) and all appropriate dental 
services and treatment indicated by the 
examination to be needed; 
(C) which is a service-connected dental condition or disability due to 
combat wounds or other service trauma, or of a 
former prisoner of war; 
(D) which is associated with and is aggravating a disability 
resulting from some other disease or injury which was incurred 
in or aggravated by active military, naval, or air service; 
(E) which is a non-service-connected condition or disability 
of a veteran for which treatment was begun while such veteran 
was receiving hospital care under this chapter and such services and 
treatment are reasonably necessary to complete such 
treatment; 
(F) from which a veteran who is a former prisoner of war 
is suffering; 
(G) from which a veteran who has a service-connected disability rated 
as total is suffering; or 

Sec. 1712 CH. 17-MEDICAL CARE 184 

(H) the treatment of which is medically necessary (i) in 
preparation for hospital admission, or (ii) for a veteran otherwise 
receiving care or services under this chapter. 
(2) The Secretary concerned shall at the time a member of the 
Armed Forces is discharged or released from a period of active 
military, naval, or air service of not less than 180 days or, in the case 
of a veteran who served on active duty during the Persian Gulf 
War, 90 days provide to such member a written explanation of the 
provisions of clause (B) of paragraph (1) of this subsection and 
enter in the service records of the member a statement signed by 
the member acknowledging receipt of such explanation (or, if the 
member refuses to sign such statement, a certification from an officer 
designated for such purpose by the Secretary concerned that 
the member was provided such explanation). 
(3) The total amount which the Secretary may expend for furnishing, 
during any twelve-month period, outpatient dental services, treatment, 
or related dental appliances to a veteran under 
this section through private facilities for which the Secretary has 
contracted under clause (1), (2), or (5) of section 1703(a) of this 
title may not exceed $1,000 unless the Secretary determines, prior to 
the furnishing of such services, treatment, or appliances and based 
on an examination of the veteran by a dentist employed by the 
Department (or, in an area where no such dentist is available, by a 
dentist conducting such examination under a contract or fee 
arrangement), that the furnishing of such services, treatment, or 
appliances at such cost is reasonably necessary. 
(4)(A) Except as provided in subparagraph (B) of this paragraph, in 
any year in which the Presidentï¿½s Budget for the fiscal 
year beginning October 1 of such year includes an amount for 
expenditures for contract dental care under the provisions of this 
subsection and section 1703 of this title during such fiscal year in 
excess of the level of expenditures made for such purpose during fiscal 
year 1978, the Secretary shall, not later than February 15 of 
such year, submit a report to the appropriate committees of the 
Congress justifying the requested level of expenditures for contract 
dental care and explaining why the application of the criteria 
prescribed in section 1703 of this title for contracting with private 
facilities and in the second sentence of section 1710(c) of this title 
for furnishing incidental dental care to hospitalized veterans will not 
preclude the need for expenditures for contract dental care in excess 
of the fiscal year 1978 level of expenditures for such purpose. 
In any case in which the amount included in the Presidentï¿½s Budget for 
any fiscal year for expenditures for contract dental care 
under such provisions is not in excess of the level of expenditures 
made for such purpose during fiscal year 1978 and the Secretary 
determines after the date of submission of such budget and before 
the end of such fiscal year that the level of expenditures for such 
contract dental care during such fiscal year will exceed the fiscal 
year 1978 level of expenditures, the Secretary shall submit a report 
to the appropriate committees of the Congress containing both a 
justification (with respect to the projected level of expenditures for 
such fiscal year) and an explanation as required in the preceding 
sentence in the case of a report submitted pursuant to such sentence. 
Any report submitted pursuant to this paragraph shall in


185 CH. 17-MEDICAL CARE Sec. 1712 

clude a comment by the Secretary on the effect of the application 
of the criteria prescribed in the second sentence of section 1710(c) 
of this title for furnishing incidental dental care to hospitalized 
veterans. 

(B) A report under subparagraph (A) of this paragraph with respect to a 
fiscal year is not required if, in the documents submitted 
by the Secretary to the Congress in justification for the amounts 
included for Department programs in the Presidentï¿½s Budget, the 
Secretary specifies with respect to contract dental care described in 
such subparagraph- 
(i) the actual level of expenditures for such care in the fiscal year 
preceding the fiscal year in which such Budget is submitted; 
(ii) a current estimate of the level of expenditures for such 
care in the fiscal year in which such Budget is submitted; and 
(iii) the amount included in such Budget for such care. 
(b) Dental services and related appliances for a dental condition or 
disability described in paragraph (1)(B) of subsection (a) 
shall be furnished on a one-time completion basis, unless the services 
rendered on a one-time completion basis are found unacceptable within 
the limitations of good professional standards, in which 
event such additional services may be afforded as are required to 
complete professionally acceptable treatment. 
(c) Dental appliances, wheelchairs, artificial limbs, trusses, 
special clothing, and similar appliances to be furnished by the 
Secretary under this section may be procured by the Secretary either 
by purchase or by manufacture, whichever the Secretary determines may 
be advantageous and reasonably necessary. 
(d) The Secretary shall furnish to each veteran who is receiving 
additional compensation or allowance under chapter 11 of this 
title, or increased pension as a veteran of a period of war, by reason 
of being permanently housebound or in need of regular aid and 
attendance, such drugs and medicines as may be ordered on prescription 
of a duly licensed physician as specific therapy in the 
treatment of any illness or injury suffered by such veteran. The 
Secretary shall continue to furnish such drugs and medicines so ordered 
to any such veteran in need of regular aid and attendance 
whose pension payments have been discontinued solely because 
such veteranï¿½s annual income is greater than the applicable maximum 
annual income limitation, but only so long as such veteranï¿½s 
annual income does not exceed such maximum annual income limitation by 
more than $1,000. 
(e) In order to assist the Secretary of Health and Human Services in 
carrying out national immunization programs under other 
provisions of law, the Secretary may authorize the administration 
of immunizations to eligible veterans who voluntarily request such 
immunizations in connection with the provision of care for a disability 
under this chapter in any Department health care facility. 
Any such immunization shall be made using vaccine furnished by 
the Secretary of Health and Human Services at no cost to the Department. 
For such purpose, notwithstanding any other provision 
of law, the Secretary of Health and Human Services may provide 
such vaccine to the Department at no cost. Section 7316 of this title 

Sec. 1712A CH. 17-MEDICAL CARE 186 

shall apply to claims alleging negligence or malpractice on the part 
of Department personnel granted immunity under such section. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1142, Sec. 612; Pub. L. 86-639, 
Sec. 1, July 12, 1960, 74 Stat. 472; Pub. L. 87-377, Sec. 1, Oct. 4, 
1961, 75 Stat. 806; Pub. L. 87-583, Sec. 2, Aug. 14, 1962, 76 Stat. 
381; Pub. L. 88-430, Aug. 14, 1964, 78 Stat. 438; Pub. L. 88-450, 
Sec. 7, Aug. 19, 1964, 78 Stat. 504; Pub. L. 88-664, Sec. 8, Oct. 13, 
1964, 78 Stat. 1096; Pub. L. 90-77, title II, Sec. 203(b), Aug. 31, 
1967, 81 Stat. 183; Pub. L. 91-102, Oct. 30, 1969, 83 Stat. 168; Pub. 
L. 91-500, Sec. 2, 3, Oct. 22, 1970, 84 Stat. 1096; Pub. L. 91-588, 
Sec. 4, 9(f), Dec. 24, 1970, 84 Stat. 1583, 1585; Pub. L. 93-82, 
title I, Sec. 103(a), Aug. 2, 1973, 87 Stat. 180; Pub. L. 94-581, title 
I, Sec. 103(a), title II, Sec. 202(f), 210(a)(3), Oct. 21, 1976, 90 Stat. 
2844, 2856, 2862; Pub. L. 95-588, title III, Sec. 302, Nov. 4, 1978, 92 
Stat. 2506; Pub. L. 96-22, title I, Sec. 101, 102(b), June 13, 1979, 93 
Stat. 47; Pub. L. 96-151, title II, Sec. 203, 204, Dec. 20, 1979, 93 
Stat. 1094; Pub. L. 97-35, title XX, Sec. 2002(a), Aug. 13, 1981, 95 
Stat. 781; Pub. L. 97-37, Sec. 3(b), 5(b), (c), Aug. 14, 1981, 95 Stat. 
936, 937; Pub. L. 97-72, title I, Sec. 102(b), 103(a), (b), Nov. 3, 1981, 
95 Stat. 1048, 1049; Pub. L. 97-295, Sec. 4(17), (95)(A), Oct. 12, 1982, 
96 Stat. 1306, 1313; Pub. L. 99-166, title I, Sec. 104, Dec. 3, 1985, 
99 Stat. 944; Pub. L. 99-272, title XIX, Sec. 19011(b), 19012(c)(1), 
(2), Apr. 7, 1986, 100 Stat. 375, 382; Pub. L. 99-576, title II, Sec. 
202, 231(b), 237(b)(2), title VII, Sec. 702(5), Oct. 28, 1986, 100 
Stat. 3254, 3263, 3267, 3301; Pub. L. 100-322, title I, Sec. 101(a)-
(c), (d)(2), (e)(1), (2), (f), (g)(1), (h)(1), 106, May 20, 1988, 102 
Stat. 489-492, 494; Pub. L. 101-508, title VIII, Sec. 8013(b), Nov. 5, 
1990, 104 Stat. 1388-346; Pub. L. 102-25, title III, Sec. 334(a), (c), 
Apr. 6, 1991, 105 Stat. 88, 89; renumbered Sec. 1712 and amended Pub. L. 
102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), (5), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 102-86, title III, Sec. 301, 302, 
Aug. 14, 1991, 105 Stat. 416; Pub. 

L. 102-585, title I, Sec. 103, Nov. 4, 1992, 106 Stat. 4946; Pub. L. 
103-210, Sec. 1(b), Dec. 20, 1993, 107 Stat. 2496; Pub. L. 103-446, 
title XII, Sec. 1201(d)(3), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 103-
452, title I, Sec. 101(e), 103(a)(2), Nov. 2, 1994, 108 Stat. 4784, 
4786; Pub. L. 104-110, title I, Sec. 101(a)(2), Feb. 13, 1996, 110 Stat. 
768; Pub. L. 104-262, title I, Sec. 101(b)(2)-(c)(2)(A), Oct. 9, 1996, 
110 Stat. 3179; Pub. L. 106-419, title IV, Sec. 404(a)(3), Nov. 1, 
2000, 114 Stat. 1864; Pub. L. 108-170, title I, Sec. 101(a), Dec. 6, 
2003, 117 Stat. 2043; Pub. L. 110-181, div. A, title 
XVII, Sec. 1709, Jan. 28, 2008, 122 Stat. 494.) 
ï¿½ 1712A. Eligibility for readjustment counseling and related 
mental health services 

(a)(1)(A) Upon the request of any veteran referred to in subparagraph 
(B), the Secretary shall furnish counseling to the veteran to assist 
the veteran in readjusting to civilian life. Such counseling may 
include a general mental and psychological assessment 
of the veteran to ascertain whether such veteran has mental or 
psychological problems associated with readjustment to civilian life. 

(B) Subparagraph (A) applies to the following veterans: 
(i) Any veteran who served on active duty- 
(I) in a theater of combat operations (as determined by 
the Secretary in consultation with the Secretary of Defense) during 
the Vietnam era; or 
(II) after May 7, l975, in an area at a time during 
which hostilities occurred in that area. 
(ii) Any veteran (other than a veteran covered by clause 
(i)) who served on active duty during the Vietnam era who 
seeks or is furnished such counseling before January 1, 2004. 
(iii) Any veteran who served on active duty- 
(I) in a theater of combat operations (as determined by 
the Secretary in consultation with the Secretary of Defense) during a 
period of war after the Persian Gulf War; 
or 

187 CH. 17-MEDICAL CARE Sec. 1712A 

(II) in combat against a hostile force during a period 
of hostilities (as defined in paragraph (2)(B)) after November 11, 1998. 
(2)(A) Upon the request of any veteran (other than a veteran 
covered by paragraph (1)) who served in the active military, naval, 
or air service in a theater of combat operations (as so determined) 
during a period of war, or in any other area during a period in 
which hostilities (as defined in subparagraph (B)) occurred in such 
area, the Secretary may furnish counseling to the veteran to assist 
the veteran in readjusting to civilian life. 

(B) For the purposes of subparagraph (A), the term ï¿½ï¿½hostilitiesï¿½ï¿½ 
means an armed conflict in which the members of the Armed 
Forces are subjected to danger comparable to the danger to which 
members of the Armed Forces have been subjected in combat with 
enemy armed forces during a period of war, as determined by the 
Secretary in consultation with the Secretary of Defense. 
(3) Upon request of a veteran described in paragraph (1)(B)(iii), 
the Secretary shall provide the veteran a preliminary general mental 
health assessment as soon as practicable after receiving the request, 
but not later than 30 days after receiving the request. 
(b)(1) If, on the basis of the assessment furnished under subsection 
(a) of this section, a physician or psychologist employed by 
the Department (or, in areas where no such physician or psychologist 
is available, a physician or psychologist carrying out such function 
under a contract or fee arrangement with the Secretary) determines 
that the provision of mental health services to such veteran 
is necessary to facilitate the successful readjustment of the veteran 
to civilian life, such veteran shall, within the limits of Department 
facilities, be furnished such services on an outpatient basis. For the 
purposes of furnishing such mental health services, the counseling 
furnished under subsection (a) of this section shall be considered to 
have been furnished by the Department as a part of hospital care. 
Any hospital care and other medical services considered necessary 
on the basis of the assessment furnished under subsection (a) of 
this section shall be furnished only in accordance with the eligibility 
criteria otherwise set forth in this chapter (including the eligibility 
criteria set forth in section 1784 of this title). 

(2) Mental health services furnished under paragraph (1) of 
this subsection may, if determined to be essential to the effective 
treatment and readjustment of the veteran, include such consultation, 
counseling, training, services, and expenses as are described 
in sections 1782 and 1783 of this title. 
(c) The Under Secretary for Health may provide for such training of 
professional, paraprofessional, and lay personnel as is necessary to 
carry out this section effectively, and, in carrying out this 
section, may utilize the services of paraprofessionals, individuals 
who are volunteers working without compensation, and individuals 
who are veteran-students (as described in section 3485 of this title) 
in initial intake and screening activities. 
(d)(1) In furnishing counseling and related mental health services 
under subsections (a) and (b) of this section, the Secretary 
shall have available the same authority to enter into contracts with 
private facilities that is available to the Secretary (under sections 
1703(a)(2) and 1710(a)(1)(B) of this title) in furnishing medical 


Sec. 1712B CH. 17-MEDICAL CARE 188 

services to veterans suffering from total service-connected 
disabilities. 

(2) Before furnishing counseling or related mental health services 
described in subsections (a) and (b) of this section through a 
contract facility, as authorized by this subsection, the Secretary 
shall approve (in accordance with criteria which the Secretary shall 
prescribe by regulation) the quality and effectiveness of the program 
operated by such facility for the purpose for which the counseling or 
services are to be furnished. 
(3) The authority of the Secretary to enter into contracts under 
this subsection shall be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriation Acts. 
(e) The Secretary, in cooperation with the Secretary of Defense, 
shall take such action as the Secretary considers appropriate to notify 
veterans who may be eligible for assistance under this section 
of such potential eligibility. 
(f) For the purposes of this section: 
(1) The term ï¿½ï¿½centerï¿½ï¿½ means a facility which is operated by 
the Department for the provision of services under this section 
and which (A) is situated apart from Department general 
health-care facilities, or (B) was so situated but has been relocated 
to a Department general health-care facility. 
(2) The term ï¿½ï¿½Department general health-care facilityï¿½ï¿½ 
means a health-care facility which is operated by the Department for 
the furnishing of health-care services under this chapter, not limited 
to services provided through the program established under this section. 
(Added Pub. L. 96-22, title I, Sec. 103(a)(1), June 13, 1979, 93 Stat. 
48, Sec. 612A; amended Pub. L. 96-128, title V, Sec. 501(b), Nov. 28, 
1979, 93 Stat. 987; Pub. L. 97-72, title I, Sec. 104(a)(1), (b), Nov. 
3, 1981, 95 Stat. 1049; Pub. L. 98-160, title I, Sec. 101, Nov. 21, 
1983, 97 Stat. 993; Pub. L. 99-166, title I, Sec. 105, 106, Dec. 3, 
1985, 99 Stat. 944, 945; Pub. L. 99-272, title XIX, Sec. 19011(d)(4), 
19012(c)(3), Apr. 7, 1986, 100 Stat. 379, 382; Pub. L. 99-576, title 
II, Sec. 204, title VII, Sec. 702(6), Oct. 28, 1986, 100 Stat. 3255, 
3302; Pub. L. 100-322, title I, Sec. 107(a)- (e), May 20, 1988, 102 
Stat. 494-496; Pub. L. 100-687, div. B, title XV, Sec. 1501(a), Nov. 
18, 1988, 102 Stat. 4132; Pub. L. 102-25, title III, Sec. 334(d), 
Apr. 6, 1991, 105 Stat. 89; Pub. L. 102-54, Sec. 14(b)(11), June 13, 
1991, 105 Stat. 283; renumbered Sec. 1712A and amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), (6), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 404-406; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 
9, 1992, 106 Stat. 1984; Pub. L. 104-262, title I, Sec. 101(d)(5), 
title III, Sec. 331, Oct. 9, 1996, 110 Stat. 3180, 3197; Pub. L. 
106-117, title II, Sec. 205(a), Nov. 30, 1999, 113 Stat. 1563; 
Pub. L. 107-135, title II, Sec. 208(e)(3)(A), Jan. 23, 2002, 
115 Stat. 2463; Pub. L. 110-181, div. A, title XVII, Sec. 1708(b), 
Jan. 28, 2008, 122 Stat. 494; Pub. L. 110-387, title IX, Sec. 
901(a)(1), Oct. 10, 2008, 122 Stat. 4142.) 

ï¿½ 1712B. Counseling for former prisoners of war 

The Secretary may establish a program under which, upon the 
request of a veteran who is a former prisoner of war, the Secretary, 
within the limits of Department facilities, furnishes counseling to 
such veteran to assist such veteran in overcoming the psychological 
effects of the veteranï¿½s detention or internment as a prisoner of 
war. 

(Added Pub. L. 99-166, title I, Sec. 107(a), Dec. 3, 1985, 99 Stat. 
945, Sec. 612B; renumbered Sec. 1712B and amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406.) 


189 CH. 17-MEDICAL CARE Sec. 1716 

ï¿½ï¿½ 1713. Renumbered 1781ï¿½ 

ï¿½ 1714. Fitting and training in use of prosthetic appliances; 
guide dogs; service dogs 

(a) Any veteran who is entitled to a prosthetic appliance shall 
be furnished such fitting and training, including institutional 
training, in the use of such appliance as may be necessary, whether in 
a Department facility or other training institution, or by outpatient 
treatment, including such service under contract, and including 
travel and incidental expenses (under the terms and conditions set 
forth in section 111 of this title) to and from such veteranï¿½s home 
to such hospital or training institution. 
(b) The Secretary may provide guide dogs trained for the aid 
of the blind to veterans who are enrolled under section 1705 of this 
title. The Secretary may also provide such veterans with mechanical or 
electronic equipment for aiding them in overcoming the disability of 
blindness. 
(c) The Secretary may, in accordance with the priority specified 
in section 1705 of this title, provide- 
(1) service dogs trained for the aid of the hearing impaired 
to veterans who are hearing impaired and are enrolled under 
section 1705 of this title; and 
(2) service dogs trained for the aid of persons with spinal 
cord injury or dysfunction or other chronic impairment that 
substantially limits mobility to veterans with such injury, 
dysfunction, or impairment who are enrolled under section 1705 
of this title. 
(d) In the case of a veteran provided a dog under subsection 
(b) or (c), the Secretary may pay travel and incidental expenses for 
that veteran under the terms and conditions set forth in section 
111 of this title to and from the veteranï¿½s home for expenses incurred 
in becoming adjusted to the dog. (Pub. L. 85-857, Sept. 2, 1958, 72 
Stat. 1143, Sec. 614; Pub. L. 93-82, title I, Sec. 103(b), Aug. 2, 
1973, 87 Stat. 181; Pub. L. 94-581, title II, Sec. 210(a)(5), Oct. 21, 
1976, 90 Stat. 2862; Pub. L. 96-151, title II, Sec. 201(c), Dec. 20, 
1979, 93 Stat. 1093; renumbered Sec. 1714 and amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 107-135, title II, Sec. 201(a), 
(b)(1), Jan. 23, 2002, 115 Stat. 2456, 2457.) 

ï¿½ 1715. Tobacco for hospitalized veterans 

The Secretary may furnish tobacco to veterans receiving hospital or 
domiciliary care. (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1143, Sec. 
615; renumbered Sec. 1715 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1716. Hospital care by other agencies of the United States 

When so specified in an appropriation or other Act, the Secretary may 
make allotments and transfers to the Departments of 
Health and Human Services (Public Health Service), the Army, 
Navy, Air Force, or Interior, for disbursement by them under the 
various headings of their appropriations, of such amounts as are 
necessary for the care and treatment of veterans entitled to 
hospitalization from the Department under this chapter. The amounts 
to be charged the Department for care and treatment of veterans 


Sec. 1717 CH. 17-MEDICAL CARE 190 

in hospitals shall be calculated on the basis of a per diem rate 
approved by the Office of Management and Budget. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1143, Sec. 616; Pub. L. 
94-581, title II, Sec. 202(g), Oct. 21, 1976, 90 Stat. 2856; Pub. L. 
97-295, Sec. 4(95)(A), Oct. 12, 1982, 96 Stat. 1313; renumbered Sec. 
1716 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1717. Home health services; invalid lifts and other devices 

(a)(1) As part of medical services furnished to a veteran under 
section 1710(a) of this title, the Secretary may furnish such home 
health services as the Secretary finds to be necessary or appropriate 
for the effective and economical treatment of the veteran. 

(2) Improvements and structural alterations may be furnished 
as part of such home health services only as necessary to assure 
the continuation of treatment for the veteranï¿½s disability or to 
provide access to the home or to essential lavatory and sanitary 
facilities. The cost of such improvements and structural alterations (or 
the amount of reimbursement therefor) under this subsection may 
not exceed- 
(A) $4,100 in the case of medical services furnished under 
section 1710(a)(1) of this title, or for a disability described in 
section 1710(a)(2)(C) of this title; or 
(B) $1,200 in the case of medical services furnished under 
any other provision of section 1710(a) of this title. 
(3) The Secretary may furnish home health services to a veteran in any 
setting in which the veteran is residing. The Secretary 
may not furnish such services in such a manner as to relieve any 
other person or entity of a contractual obligation to furnish services 
to the veteran. When home health services are furnished in a setting 
other than the veteranï¿½s home, such services may not include 
any structural improvement or alteration. 
(b) The Secretary may furnish an invalid lift, or any type of 
therapeutic or rehabilitative device, as well as other medical 
equipment and supplies (excluding medicines), if medically indicated, to 
any veteran who is receiving (1) compensation under section 
1114(l)-(p) of this title (or the comparable rates provided pursuant 
to section 1134 of this title), or (2) pension under chapter 15 of this 
title by reason of being in need of regular aid and attendance. 
(c) The Secretary may furnish devices for assisting in overcoming the 
handicap of deafness (including telecaptioning television decoders) to 
any veteran who is profoundly deaf and is entitled to compensation on 
account of hearing impairment. 
(d)(1) In the case of a member of the Armed Forces who, as determined 
by the Secretary, has a disability permanent in nature incurred or 
aggravated in the line of duty in the active military, 
naval, or air service, the Secretary may furnish improvements and 
structural alterations for such member for such disability or as 
otherwise described in subsection (a)(2) while such member is 
hospitalized or receiving outpatient medical care, services, or 
treatment for such disability if the Secretary determines that such 
member is likely to be discharged or released from the Armed 
Forces for such disability. 

(2) The furnishing of improvements and alterations under 
paragraph (1) in connection with the furnishing of medical services 

191 CH. 17-MEDICAL CARE Sec. 1718 

described in subparagraph (A) or (B) of subsection (a)(2) shall be 
subject to the limitation specified in the applicable subparagraph. 
(Added Pub. L. 86-211, Sec. 5, Aug. 29, 1959, 73 Stat. 435, Sec. 617; 
amended Pub. L. 88-450, Sec. 6(a), (c), Aug. 19, 1964, 78 Stat. 504; 
Pub. L. 90-77, title I, Sec. 109, Aug. 31, 1967, 81 Stat. 180; Pub. L. 
90-493, Sec. 3(a), Aug. 19, 1968, 82 Stat. 809; Pub. L. 97-295, Sec. 
4(18), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 98-528, title I, Sec. 
107, Oct. 19, 1984, 98 Stat. 2690; Pub. L. 99-576, title II, Sec. 
202(2), Oct. 28, 1986, 100 Stat. 3254; Pub. L. 100-322, title I, Sec. 
101(d), May 20, 1988, 102 Stat. 491; renumbered Sec. 1717 and amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 404-406; Pub. L. 102-405, title I, Sec. 101(a), Oct. 9, 1992, 
106 Stat. 1973; Pub. L. 104-262, title I, Sec. 101(d)(6), Oct. 9, 1996, 
110 Stat. 3180; Pub. L. 105-114, title IV, Sec. 402(b), Nov. 21, 1997, 
111 Stat. 2294; Pub. L. 110-289, div. B, title VI, Sec. 2601, July 30, 
2008, 122 Stat. 2858.) 
ï¿½ 1718. Therapeutic and rehabilitative activities 

(a) In providing rehabilitative services under this chapter, the 
Secretary, upon the recommendation of the Under Secretary for 
Health, may use the services of patients and members in Department 
health care facilities for therapeutic and rehabilitative purposes. 
Such patients and members shall not under these circumstances be held 
or considered as employees of the United 
States for any purpose. The Secretary shall prescribe the conditions 
for the use of such services. 
(b)(1) In furnishing rehabilitative services under this chapter, 
the Secretary, upon the recommendation of the Under Secretary for 
Health, may enter into a contract or other arrangement with any 
appropriate source (whether or not an element of the Department 
of Veterans Affairs or of any other Federal entity) to provide for 
therapeutic work for patients and members in Department health 
care facilities. 

(2) Notwithstanding any other provision of law, the Secretary 
may also furnish rehabilitative services under this subsection 
through contractual arrangements with nonprofit entities to provide for 
such therapeutic work for such patients. The Secretary 
shall establish appropriate fiscal, accounting, management, record-
keeping, and reporting requirements with respect to the activities 
of any such nonprofit entity in connection with such contractual 
arrangements. 
(c)(1) There is hereby established in the Treasury of the United 
States a revolving fund known as the Department of Veterans Affairs 
Special Therapeutic and Rehabilitation Activities Fund (hereinafter in 
this section referred to as the ï¿½ï¿½fundï¿½ï¿½) for the purpose of 
furnishing rehabilitative services authorized in subsection (b) or 
(d). Such amounts of the fund as the Secretary may determine to 
be necessary to establish and maintain operating accounts for the 
various rehabilitative services activities may be deposited in checking 
accounts in other depositaries selected or established by the 
Secretary. 

(2) All funds received by the Department under contractual arrangements 
made under subsection (b) or (d), or by nonprofit entities described in 
subsection (b)(2), shall be deposited in or credited to the fund, and 
the Secretary shall distribute out of the fund moneys to participants 
at rates not less than the wage rates specified 
in the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) and 
regulations prescribed thereunder for work of similar character. 

Sec. 1718 CH. 17-MEDICAL CARE 192 

(3) The Under Secretary for Health shall prepare, for inclusion 
in the annual report submitted to Congress under section 529 of 
this title, a description of the scope and achievements of activities 
carried out under this section (including pertinent data regarding 
productivity and rates of distribution) during the prior twelve 
months and an estimate of the needs of the program of therapeutic 
and rehabilitation activities to be carried out under this section for 
the ensuing fiscal year. 
(d) In providing to a veteran rehabilitative services under this 
chapter, the Secretary may furnish the veteran with the following: 
(1) Work skills training and development services. 
(2) Employment support services. 
(3) Job development and placement services. 
(e) In providing rehabilitative services under this chapter, the 
Secretary shall take appropriate action to make it possible for the 
patient to take maximum advantage of any benefits to which such 
patient is entitled under chapter 31, 34, or 35 of this title, and, if 
the patient is still receiving treatment of a prolonged nature under 
this chapter, the provision of rehabilitative services under this 
chapter shall be continued during, and coordinated with, the pursuit of 
education and training under such chapter 31, 34, or 35. 
(f) The Secretary shall prescribe regulations to ensure that the 
priorities set forth in section 1705 of this title shall be applied, 
insofar as practicable, to participation in therapeutic and 
rehabilitation activities carried out under this section. 
(g)(1) The Secretary may not consider any of the matters stated in 
paragraph (2) as a basis for the denial or discontinuance of 
a rating of total disability for purposes of compensation or pension 
based on the veteranï¿½s inability to secure or follow a substantially 
gainful occupation as a result of disability. 

(2) Paragraph (1) applies to the following: 
(A) A veteranï¿½s participation in an activity carried out 
under this section. 
(B) A veteranï¿½s receipt of a distribution as a result of participation 
in an activity carried out under this section. 
(C) A veteranï¿½s participation in a program of rehabilitative 
services that (i) is provided as part of the veteranï¿½s care furnished by 
a State home and (ii) is approved by the Secretary 
as conforming appropriately to standards for activities carried 
out under this section. 
(D) A veteranï¿½s receipt of payment as a result of participation in a 
program described in subparagraph (C). 
(3) A distribution of funds made under this section and a payment made 
to a veteran under a program of rehabilitative services 
described in paragraph (2)(C) shall be considered for the purposes 
of chapter 15 of this title to be a donation from a public or private 
relief or welfare organization. 
(Added Pub. L. 87-574, Sec. 2(1), Aug. 6, 1962, 76 Stat. 308, Sec. 618; 
amended Pub. 

L. 94-581, title I, Sec. 105(a), Oct. 21, 1976, 90 Stat. 2845; Pub. L. 
98-543, title III, Sec. 303, Oct. 24, 1984, 98 Stat. 2748; Pub. L. 
99-576, title II, Sec. 205, Oct. 28, 1986, 100 Stat. 3256; Pub. L. 
102-54, Sec. 10, 14(b)(12), June 13, 1991, 105 Stat. 273, 284; 
renumbered Sec. 1718 and amended Pub. L. 102-83, Sec. 2(c)(3), 4(a)(3), 
(4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 402, 
404-406; Pub. L. 102-86, title V, Sec. 506(a)(1), Aug. 14, 1991, 105 
Stat. 426; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 
106 Stat. 1984; Pub. L. 102-585, title IV, Sec. 401, Nov. 4, 

193 CH. 17-MEDICAL CARE Sec. 1720 

1992, 106 Stat. 4953; Pub. L. 103-446, title XII, Sec. 1201(i)(1), 
Nov. 2, 1994, 108 Stat. 4688; Pub. L. 104-262, title I, Sec. 101(d)(7), 
Oct. 9, 1996, 110 Stat. 3180; Pub. L. 108-170, title I, Sec. 104(b), 
Dec. 6, 2003, 117 Stat. 2045; Pub. L. 109-444, Sec. 8(a)(1), Dec. 21, 
2006, 120 Stat. 3313; Pub. L. 109-461, title X, Secs. 1004(a)(1), 
1006(b), Dec. 22, 2006, 120 Stat. 3465, 3468.) 
ï¿½ 1719. Repair or replacement of certain prosthetic and 
other appliances 

The Secretary may repair or replace any artificial limb, truss, 
brace, hearing aid, spectacles, or similar appliance (not including 
dental appliances) reasonably necessary to a veteran and belonging 
to such veteran which was damaged or destroyed by a fall or other 
accident caused by a service-connected disability for which such 
veteran is in receipt of, or but for the receipt of retirement pay 
would be entitled to, disability compensation. 

(Added Pub. L. 87-850, Sec. 1(a), Oct. 23, 1962, 76 Stat. 1126, Sec. 
619; amended Pub. L. 94-581, title II, Sec. 210(a)(6), Oct. 21, 1976, 
90 Stat. 2862; renumbered Sec. 1719 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1720. Transfers for nursing home care; adult day health 
care 

(a)(1) Subject to subsection (b) of this section, the Secretary 
may transfer to a non-Department nursing home, for care at the 
expense of the United States- 

(A) a veteran- 
(i) who has been furnished care by the Secretary in a 
facility under the direct jurisdiction of the Secretary; and 
(ii) who the Secretary determines- 
(I) requires a protracted period of nursing home 
care which can be furnished in the non-Department 
nursing home; and 
(II) in the case of a veteran who has been furnished hospital care 
in a facility under the direct jurisdiction of the Secretary, has 
received maximum benefits from such care; and 
(B) a member of the Armed Forces- 
(i) who has been furnished care in a hospital of the 
Armed Forces; 
(ii) who the Secretary concerned determines has received maximum 
benefits from such care but requires a 
protracted period of nursing home care; and 
(iii) who upon discharge from the Armed Forces will 
become a veteran. 
(2) The Secretary may transfer a person to a nursing home 
under this subsection only if the Secretary determines that the cost 
to the United States of the care of such person in the nursing home 
will not exceed- 
(A) the amount equal to 45 percent of the cost of care furnished by 
the Department in a general hospital under the direct jurisdiction of 
the Secretary (as such cost may be determined annually by the Secretary); 
or 
(B) the amount equal to 50 percent of such cost, if such 
higher amount is determined to be necessary by the Secretary 

Sec. 1720 CH. 17-MEDICAL CARE 194 

(upon the recommendation of the Under Secretary for Health) 
to provide adequate care. 

(3) Nursing home care may not be furnished under this subsection at 
the expense of the United States for more than six 
months in the aggregate in connection with any one transfer except- 
(A) in the case of a veteran- 
(i) who is transferred to a non-Department nursing 
home from a hospital under the direct jurisdiction of the 
Secretary; and 
(ii) whose hospitalization was primarily for a service-
connected disability; 
(B) in a case in which the nursing home care is required 
for a service-connected disability; or 
(C) in a case in which, in the judgment of the Secretary, 
a longer period of nursing home care is warranted. 
(4) A veteran who is furnished care by the Secretary in a hospital or 
domiciliary facility in Alaska or Hawaii may be furnished 
nursing home care at the expense of the United States under this 
subsection even if such hospital or domiciliary facility is not under 
the direct jurisdiction of the Secretary. 
(b) No veteran may be transferred or admitted to any institution for 
nursing home care under this section, unless such institution is 
determined by the Secretary to meet such standards as the 
Secretary may prescribe. The standards prescribed and any report 
of inspection of institutions furnishing care to veterans under this 
section made by or for the Secretary shall, to the extent possible, 
be made available to all Federal, State, and local agencies charged 
with the responsibility of licensing or otherwise regulating or 
inspecting such institutions. 
(c)(1)(A) In furnishing nursing home care, adult day health 
care, or other extended care services under this section, the Secretary 
may enter into agreements for furnishing such care or services with- 

(i) in the case of the medicare program, a provider of services that has 
entered into a provider agreement under section 
1866(a) of the Social Security Act (42 U.S.C. 1395cc(a)); and 
(ii) in the case of the medicaid program, a provider participating under 
a State plan under title XIX of such Act (42 
U.S.C. 1396 et seq.). 
(B) In entering into an agreement under subparagraph (A) 
with a provider of services described in clause (i) of that subparagraph 
or a provider described in clause (ii) of that subparagraph, 
the Secretary may use the procedures available for entering into 
provider agreements under section 1866(a) of the Social Security 
Act. 
(2) In applying the provisions of section 2(b)(1) of the Service 
Contract Act of 1965 (41 U.S.C. 351(b)(1)) with respect to any contract 
entered into under this section to provide nursing home care 
of veterans, the payment of wages not less than those specified in 
section 6(b) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(b)) shall be deemed to constitute compliance with such provisions. 

195 CH. 17-MEDICAL CARE Sec. 1720 

(d)(1) Subject to subsection (b) of this section, the Secretary 
may authorize for any veteran requiring nursing home care for a 
service-connected disability direct admission for such care at the 
expense of the United States to any non-Department nursing home. 
The Secretary may also authorize a direct admission to such a 
nursing home for nursing home care for any veteran who has been 
discharged from a hospital under the direct jurisdiction of the 
Secretary and who is currently receiving medical services as part of 
home health services from the Department. 

(2) Direct admission authorized by paragraph (1) of this subsection 
may be authorized upon determination of need therefor- 
(A) by a physician employed by the Department; or 
(B) in areas where no such physician is available, by a 
physician carrying out such function under contract or fee arrangement, 
based on an examination by such physician. 

(3) The amount which may be paid for such care and the 
length of care available under this subsection shall be the same as 
authorized under subsection (a) of this section. 
(e)(1) The cost of intermediate care for purposes of payment by 
the United States pursuant to subsection (a)(2)(B) of this section 
shall be determined by the Secretary except that the rate of 
reimbursement shall be commensurately less than that provided for 
nursing home care. 

(2) For the purposes of this section, the term ï¿½ï¿½non-Department 
nursing homeï¿½ï¿½ means a public or private institution not under the 
direct jurisdiction of the Secretary which furnishes nursing home 
care. 
(f)(1)(A) The Secretary may furnish adult day health care services to 
a veteran enrolled under section 1705(a) of this title who 
would otherwise require nursing home care. 

(B) The Secretary may provide in-kind assistance (through the 
services of Department employees and the sharing of other Department 
resources) to a facility furnishing care to veterans under subparagraph 
(A) of this paragraph. Any such in-kind assistance shall 
be provided under a contract or agreement between the Secretary 
and the facility concerned. The Secretary may provide such assistance 
only for use solely in the furnishing of adult day health care 
and only if, under such contract or agreement, the Department receives 
reimbursement for the full cost of such assistance, including 
the cost of services and supplies and normal depreciation and 
amortization of equipment. Such reimbursement may be made by reduction 
in the charges to the United States or by payment to the 
United States. Any funds received through such reimbursement 
shall be credited to funds allotted to the Department facility that 
provided the assistance. 
(2) The Secretary may conduct, at facilities over which the Secretary 
has direct jurisdiction, programs for the furnishing of adult 
day health care to veterans who are eligible for such care under 
paragraph (1) of this subsection, except that necessary travel and 
incidental expenses (or transportation in lieu thereof) may be 
furnished under such a program only under the terms and conditions 
set forth in section 111 of this title. The furnishing of care under 
any such program shall be subject to the limitations that are appli

Sec. 1720A CH. 17-MEDICAL CARE 196 

cable to the duration of adult day health care furnished under 
paragraph (1) of this subsection. 

(Added Pub. L. 88-450, Sec. 2(a), Aug. 19, 1964, 78 Stat. 500, Sec. 
620; amended Pub. L. 90-429, July 26, 1968, 82 Stat. 446; Pub. L. 
90-612, Sec. 1, 3, Oct. 21, 1968, 82 Stat. 1202; Pub. L. 91-101, Oct. 
30, 1969, 83 Stat. 167; Pub. L. 93-82, title I, Sec. 104, Aug. 2, 1973, 
87 Stat. 182; Pub. L. 94-581, title I, Sec. 106, title II, Sec. 202(h), 
210(a)(7), Oct. 21, 1976, 90 Stat. 2847, 2856, 2863; Pub. L. 97-295, Sec. 
4(19), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 98-160, title I, Sec. 103(a)
(1), (2), Nov. 21, 1983, 97 Stat. 995; Pub. L. 99-166, title I, Sec. 
108(a)-(c), Dec. 3, 1985, 99 Stat. 946, 947; Pub. L. 99-272, title XIX, 
Sec. 19011(d)(5), Apr. 7, 1986, 100 Stat. 379; Pub. L. 100-322, title I, 
Sec. 103(b), 111(a), May 20, 1988, 102 Stat. 493, 499; renumbered Sec. 
1720 and amended Pub. L. 102-83, Sec. 4(a)(2)(A)(ii), (3)-(5), (b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406; Pub. L. 102-405, 
title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 104-262, 
title I, Sec. 101(d)(8), Oct. 9, 1996, 110 Stat. 3180; Pub. L. 105-114, 
title IV, Sec. 402(c), Nov. 21, 1997, 111 Stat. 2294; Pub. L. 106-117, 
title I, Sec. 101(d), Nov. 30, 1999, 113 Stat. 1549; Pub. 

L. 108-170, title I, Sec. 105, Dec. 6, 2003, 117 Stat. 2045.) 
ï¿½ 1720A. Treatment and rehabilitative services for persons 
with drug or alcohol dependency 

(a) The Secretary, in consultation with the Secretary of Labor 
and the Director of the Office of Personnel Management, may take 
appropriate steps to (1) urge all Federal agencies and appropriate 
private and public firms, organizations, agencies, and persons to 
provide appropriate employment and training opportunities for veterans 
who have been provided treatment and rehabilitative services under this 
title for alcohol or drug dependence or abuse disabilities and have 
been determined by competent medical authority 
to be sufficiently rehabilitated to be employable, and (2) provide all 
possible assistance to the Secretary of Labor in placing such veterans 
in such opportunities. 
(b) Upon receipt of an application for treatment and rehabilitative 
services under this title for an alcohol or drug dependence or 
abuse disability from any individual who has been discharged or 
released from active military, naval, or air service but who is not 
eligible for such treatment and services, the Secretary shall- 
(1) provide referral services to assist such individual, to 
the maximum extent practicable, in obtaining treatment and 
rehabilitative services from sources outside the Department; 
and 
(2) if pertinent, advise such individual of such individualï¿½s 
rights to apply to the appropriate military, naval, or air service 
and the Department for review of such individualï¿½s discharge 
or release from such service. 
(c)(1) Any person serving in the active military, naval, or air 
service who is determined by the Secretary concerned to have an 
alcohol or drug dependence or abuse disability may be transferred 
to any facility in order for the Secretary to furnish care or treatment 
and rehabilitative services for such disability. Care and services 
provided to a member so transferred shall be provided as if 
such member were a veteran. Any transfer of any such member for 
such care and services shall be made pursuant to such terms as 
may be agreed upon by the Secretary concerned and the Secretary, 
subject to the provisions of sections 1535 and 1536 of title 31. 

(2) No person serving in the active military, naval, or air service may 
be transferred pursuant to an agreement made under 

197 CH. 17-MEDICAL CARE Sec. 1720C 

paragraph (1) of this subsection unless such person requests such 
transfer in writing for a specified period of time. No such person 
transferred pursuant to such a request may be furnished such care 
and services by the Secretary beyond the period of time specified 
in such request unless such person requests in writing an extension for 
a further specified period of time and such request is approved by the 
Secretary. 

(d)(1) The Secretary shall ensure that each medical center of 
the Department develops and carries out a plan to provide treatment for 
substance use disorders, either through referral or direct 
provision of services, to veterans who require such treatment. 

(2) Each plan under paragraph (1) shall make available clinically 
proven substance abuse treatment methods, including opioid 
substitution therapy, to veterans with respect to whom a qualified 
medical professional has determined such treatment methods to be 
appropriate. 
(Added Pub. L. 96-22, title I, Sec. 104(a), June 13, 1979, 93 Stat. 50, 
Sec. 620A; amended Pub. L. 96-128, title V, Sec. 501(c), Nov. 28, 1979, 93 
Stat. 987; Pub. L. 
97-251, Sec. 6, Sept. 8, 1982, 96 Stat. 716; Pub. L. 97-258, Sec. 3(k)(1), 
Sept. 13, 1982, 96 Stat. 1065; Pub. L. 99-108, Sec. 3, Sept. 30, 1985, 99 
Stat. 481; Pub. L. 99-166, title I, Sec. 101(a), (b)(1), Dec. 3, 1985, 99 
Stat. 942, 943; Pub. L. 100-687, div. B, title XV, Sec. 1509, Nov. 18, 
1988, 102 Stat. 4137; Pub. L. 100-689, title V, Sec. 502(a)(1), (b), 
Nov. 18, 1988, 102 Stat. 4179; Pub. L. 102-54, Sec. 14(b)(13), 
June 13, 1991, 105 Stat. 284; renumbered Sec. 1720A and amended Pub. L. 
102- 83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 102- 86, title III, Sec. 303, Aug. 14, 1991, 
105 Stat. 416; Pub. L. 103-452, title I, Sec. 103(b), Nov. 2, 1994, 108 
Stat. 4786; Pub. L. 104-110, title I, Sec. 101(b), Feb. 13, 1996, 110 
Stat. 768; Pub. L. 105-114, title IV, Sec. 202(b), Nov. 21, 1997, 111 
Stat. 2287; Pub. L. 106-117, title I, Sec. 114, Nov. 30, 1999, 113 
Stat. 1558; Pub. L. 106- 419, title IV, Sec. 404(a)(4), Nov. 1, 2000, 
114 Stat. 1864; Pub. L. 107-95, Sec. 8(c), 
Dec. 21, 2001, 115 Stat. 920.) 

ï¿½ 1720B. Respite care 

(a) The Secretary may furnish respite care services to a veteran who is 
enrolled to receive care under section 1710 of this title. (b) For the 
purpose of this section, the term ï¿½ï¿½respite care servicesï¿½ï¿½ means care 
and services which- 
(1) are of limited duration; 
(2) are furnished on an intermittent basis to a veteran who 
is suffering from a chronic illness and who resides primarily at 
home; and 
(3) are furnished for the purpose of helping the veteran to 
continue residing primarily at home. 
(c) In furnishing respite care services, the Secretary may enter 
into contract arrangements. 
(Added Pub. L. 99-576, title II, Sec. 201(a)(1), Oct. 28, 1986, 100 
Stat. 3254, Sec. 620B; amended Pub. L. 101-237, title II, Sec. 201(a), 
Dec. 18, 1989, 103 Stat. 2066; renumbered Sec. 1720B and amended Pub. 
L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 102-585, title V, Sec. 502, Nov. 
4, 1992, 106 Stat. 4955; Pub. L. 106-117, title I, Sec. 101(e), Nov. 
30, 1999, 113 Stat. 
1549.) 

ï¿½ 1720C. Noninstitutional alternatives to nursing home care 

(a) The Secretary may furnish medical, rehabilitative, and 
health-related services in noninstitutional settings for veterans 
who are eligible under this chapter for, and are in need of, nursing 

Sec. 1720D CH. 17-MEDICAL CARE 198 

home care. The Secretary shall give priority for participation in 
such program to veterans who- 

(1) are in receipt of, or are in need of, nursing home care 
primarily for the treatment of a service-connected disability; or 
(2) have a service-connected disability rated at 50 percent 
or more. 
(b)(1) Under the program conducted pursuant to subsection (a), 
the Secretary shall (A) furnish appropriate health-related services 
solely through contracts with appropriate public and private agencies 
that provide such services, and (B) designate Department 
health-care employees to furnish case management services to veteran 
furnished services under the program. 

(2) For the purposes of paragraph (1), the term ï¿½ï¿½case management 
servicesï¿½ï¿½ includes the coordination and facilitation of all services 
furnished to a veteran by the Department of Veterans Affairs, 
either directly or through contract, including assessment of needs, 
planning, referral (including referral for services to be furnished by 
the Department, either directly or through a contract, or by an entity 
other than the Department), monitoring, reassessment, and followup. 
(c) The Secretary may provide in-kind assistance (through the 
services of Department of Veterans Affairs employees and the sharing of 
other Department resources) to a facility furnishing services 
to veterans under subsection (b)(1)(A). Any such in-kind assistance 
shall be provided under a contract between the Department and 
the facility concerned. The Secretary may provide such assistance 
only for use solely in the furnishing of appropriate services under 
this section and only if, under such contract, the Department receives 
reimbursement for the full cost of such assistance (including 
the cost of services and supplies and normal depreciation and 
amortization of equipment). Such reimbursement may be made by reduction 
in the charges to the United States or by payment to the 
United States. Any funds received through such reimbursement 
shall be credited to funds allotted to the Department facility that 
provided the assistance. 
(d) The total cost of providing services or in-kind assistance in 
the case of any veteran for any fiscal year under the program may 
not exceed 65 percent of the cost that would have been incurred by 
the Department during that fiscal year if the veteran had been 
furnished, instead, nursing home care under section 1710 of this title 
during that fiscal year. 
(e) The authority of the Secretary to enter into contracts under 
this section shall be effective for any fiscal year only to the extent 
that appropriations are available. 
(Added Pub. L. 101-366, title II, Sec. 201(a)(1), Aug. 15, 1990, 104 
Stat. 437, Sec. 
620C; renumbered Sec. 1720C and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-452, title I, Sec. 
103(c), Nov. 2, 1994, 108 Stat. 
4786; Pub. L. 104-110, title I, Sec. 101(c), Feb. 13, 1996, 110 Stat. 
768; Pub. L. 105- 
114, title II, Sec. 206(a)-(b)(2), Nov. 21, 1997, 111 Stat. 2289.) 

ï¿½ 1720D. Counseling and treatment for sexual trauma 

(a)(1) The Secretary shall operate a program under which the 
Secretary provides counseling and appropriate care and services to 
veterans who the Secretary determines require such counseling and 


199 CH. 17-MEDICAL CARE Sec. 1720D 

care and services to overcome psychological trauma, which in the 
judgment of a mental health professional employed by the Department, 
resulted from a physical assault of a sexual nature, battery 
of a sexual nature, or sexual harassment which occurred while the 
veteran was serving on active duty or active duty for training. 

(2) In furnishing counseling to a veteran under this subsection, 
the Secretary may provide such counseling pursuant to a contract 
with a qualified mental health professional if (A) in the judgment 
of a mental health professional employed by the Department, the 
receipt of counseling by that veteran in facilities of the Department 
would be clinically inadvisable, or (B) Department facilities are not 
capable of furnishing such counseling to that veteran economically 
because of geographical inaccessibility. 
(b)(1) The Secretary shall give priority to the establishment 
and operation of the program to provide counseling and care and 
services under subsection (a). In the case of a veteran eligible for 
counseling and care and services under subsection (a), the Secretary 
shall ensure that the veteran is furnished counseling and 
care and services under this section in a way that is coordinated 
with the furnishing of such care and services under this chapter. 

(2) In establishing a program to provide counseling under subsection 
(a), the Secretary shall- 
(A) provide for appropriate training of mental health professionals and 
such other health care personnel as the Secretary determines necessary 
to carry out the program effectively; 
(B) seek to ensure that such counseling is furnished in a 
setting that is therapeutically appropriate, taking into account 
the circumstances that resulted in the need for such counseling; and 
(C) provide referral services to assist veterans who are not 
eligible for services under this chapter to obtain those from 
sources outside the Department. 
(c) The Secretary shall provide information on the counseling 
and treatment available to veterans under this section. Efforts by 
the Secretary to provide such information- 
(1) shall include availability of a toll-free telephone number 
(commonly referred to as an 800 number); 
(2) shall ensure that information about the counseling and 
treatment available to veterans under this section- 
(A) is revised and updated as appropriate; 
(B) is made available and visibly posted at appropriate 
facilities of the Department; and 
(C) is made available through appropriate public information services; 
and 
(3) shall include coordination with the Secretary of Defense seeking to 
ensure that individuals who are being separated from active military, 
naval, or air service are provided 
appropriate information about programs, requirements, and 
procedures for applying for counseling and treatment under 
this section. 
(d) In this section, the term ï¿½ï¿½sexual harassmentï¿½ï¿½ means repeated, 
unsolicited verbal or physical contact of a sexual nature 
which is threatening in character. 

Sec. 1720E CH. 17-MEDICAL CARE 200 

(Added Pub. L. 102-585, title I, Sec. 102(a)(1), Nov. 4, 1992, 106 Stat. 
4945; amended Pub. L. 103-452, title I, Sec. 101(a)-(d), (f)(1), 
(2)(A), (g)(1), Nov. 2, 1994, 108 Stat. 4783, 4784; Pub. L. 105-368, 
title IX, Sec. 902, Nov. 11, 1998, 112 Stat. 3360; Pub. L. 106-117, 
title I, Sec. 115(a)-(c), Nov. 30, 1999, 113 Stat. 1558; Pub. L. 108- 
422, title III, Sec. 301, Nov. 30, 2004, 118 Stat. 2382.) 

ï¿½ 1720E. Nasopharyngeal radium irradiation 

(a) The Secretary may provide any veteran a medical examination, and 
hospital care, medical services, and nursing home care, 
which the Secretary determines is needed for the treatment of any 
cancer of the head or neck which the Secretary finds may be associated 
with the veteranï¿½s receipt of nasopharyngeal radium irradiation 
treatments in active military, naval, or air service. 
(b) The Secretary shall provide care and services to a veteran 
under subsection (a) only on the basis of evidence in the service 
records of the veteran which document nasopharyngeal radium irradiation 
treatment in service, except that, notwithstanding the absence of such 
documentation, the Secretary may provide such care 
to a veteran who- 
(1) served as an aviator in the active military, naval, or air 
service before the end of the Korean conflict; or 
(2) underwent submarine training in active naval service 
before January 1, 1965. 
(Added Pub. L. 105-368, title IX, Sec. 901(a), Nov. 11, 1998, 112 
Stat. 3360.) 

ï¿½ 1720F. Comprehensive program for suicide prevention 
among veterans 

(a) ESTABLISHMENT.-The Secretary shall develop and carry 
out a comprehensive program designed to reduce the incidence of 
suicide among veterans incorporating the components described in 
this section. 
(b) STAFF EDUCATION.-In carrying out the comprehensive program under 
this section, the Secretary shall provide for mandatory 
training for appropriate staff and contractors (including all medical 
personnel) of the Department who interact with veterans. This 
training shall cover information appropriate to the duties being 
performed by such staff and contractors. The training shall include 
information on- 
(1) recognizing risk factors for suicide; 
(2) proper protocols for responding to crisis situations involving 
veterans who may be at high risk for suicide; and 
(3) best practices for suicide prevention. 
(c) HEALTH ASSESSMENTS OF VETERANS.-In carrying out the 
comprehensive program, the Secretary shall direct that medical 
staff offer mental health in their overall health assessment when 
veterans seek medical care at a Department medical facility (including 
a center established under section 1712A of this title) and 
make referrals, at the request of the veteran concerned, to 
appropriate counseling and treatment programs for veterans who show 
signs or symptoms of mental health problems. 
(d) DESIGNATION OF SUICIDE PREVENTION COUNSELORS.-In 
carrying out the comprehensive program, the Secretary shall designate 
a suicide prevention counselor at each Department medical 
facility other than centers established under section 1712A of this 
title. Each counselor shall work with local emergency rooms, police 

201 CH. 17-MEDICAL CARE Sec. 1720F 

departments, mental health organizations, and veterans service 
organizations to engage in outreach to veterans and improve the 
coordination of mental health care to veterans. 

(e) BEST PRACTICES RESEARCH.-In carrying out the comprehensive program, 
the Secretary shall provide for research on 
best practices for suicide prevention among veterans. Research 
shall be conducted under this subsection in consultation with the 
heads of the following entities: 
(1) The Department of Health and Human Services. 
(2) The National Institute of Mental Health. 
(3) The Substance Abuse and Mental Health Services Administration. 
(4) The Centers for Disease Control and Prevention. 
(f) SEXUAL TRAUMA RESEARCH.-In carrying out the comprehensive program, 
the Secretary shall provide for research on 
mental health care for veterans who have experienced sexual trauma 
while in military service. The research design shall include 
consideration of veterans of a reserve component. 
(g) 24-HOUR MENTAL HEALTH CARE.-In carrying out the comprehensive 
program, the Secretary shall provide for mental health 
care availability to veterans on a 24-hour basis. 
(h) HOTLINE.-In carrying out the comprehensive program, the 
Secretary may provide for a toll-free hotline for veterans to be 
staffed by appropriately trained mental health personnel and available 
at all times. 
(i) OUTREACH AND EDUCATION FOR VETERANS AND FAMILIES.- 
In carrying out the comprehensive program, the Secretary shall 
provide for outreach to and education for veterans and the families 
of veterans, with special emphasis on providing information to veterans 
of Operation Iraqi Freedom and Operation Enduring Freedom and the 
families of such veterans. Education to promote mental health shall 
include information designed to- 
(1) remove the stigma associated with mental illness; 
(2) encourage veterans to seek treatment and assistance 
for mental illness; 
(3) promote skills for coping with mental illness; and 
(4) help families of veterans with- 
(A) understanding issues arising from the readjustment of veterans to 
civilian life; 
(B) identifying signs and symptoms of mental illness; 
and 
(C) encouraging veterans to seek assistance for mental 
illness. 
(j) PEER SUPPORT COUNSELING PROGRAM.-(1) In carrying out 
the comprehensive program, the Secretary may establish and carry 
out a peer support counseling program, under which veterans shall 
be permitted to volunteer as peer counselors- 
(A) to assist other veterans with issues related to mental 
health and readjustment; and 
(B) to conduct outreach to veterans and the families of veterans. 
(2) In carrying out the peer support counseling program under 
this subsection, the Secretary shall provide adequate training for 
peer counselors. 

Sec. 1721 CH. 17-MEDICAL CARE 202 

(k) OTHER COMPONENTS.-In carrying out the comprehensive 
program, the Secretary may provide for other actions to reduce the 
incidence of suicide among veterans that the Secretary considers 
appropriate. 
(Added Pub. L. 110-110, Sec. 3(a)(1), Nov. 5, 2007, 121 Stat. 1031.) 

SUBCHAPTER III-MISCELLANEOUS PROVISIONS RELATING 

TO HOSPITAL AND NURSING HOME CARE AND MEDICAL 

TREATMENT OF VETERANS 

ï¿½ 1721. Power to make rules and regulations 

Rules and regulations prescribed under section 501(a) of this 
title shall include rules and regulations to promote good conduct on 
the part of persons who are receiving hospital, nursing home, and 
domiciliary care and medical services in Department facilities. The 
Secretary may prescribe in rules and regulations under such section 
limitations in connection with the furnishing of such care and 
services during a period of national emergency (other than a period 
of war or an emergency described in section 8111A of this title). 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1143, Sec. 621; Pub. L. 
94-581, title II, Sec. 202(j), 210(a)(8), Oct. 21, 1976, 90 Stat. 
2856, 2863; Pub. L. 100-322, title I, Sec. 133, May 20, 1988, 102 
Stat. 507; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 
1991, 105 Stat. 239; renumbered Sec. 1721 and amended Pub. L. 102-83, 
Sec. 2(c)(1), 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 402, 404-406.) 

ï¿½ 1722. Determination of inability to defray necessary expenses; 
income thresholds 

(a) For the purposes of section 1710(a)(2)(G) of this title, a veteran 
shall be considered to be unable to defray the expenses of necessary 
care if- 
(1) the veteran is eligible to receive medical assistance 
under a State plan approved under title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.); 
(2) the veteran is in receipt of pension under section 1521 
of this title; or 
(3) the veteranï¿½s attributable income is not greater than 
the amount set forth in subsection (b). 
(b)(1) For purposes of subsection (a)(3), the income threshold 
for the calendar year beginning on January 1, 1990, is- 

(A) $17,240 in the case of a veteran with no dependents; 
and 
(B) $20,688 in the case of a veteran with one dependent, 
plus $1,150 for each additional dependent. 
(2) For a calendar year beginning after December 31, 1990, the 
amounts in effect for purposes of this subsection shall be the 
amounts in effect for the preceding calendar year as adjusted under 
subsection (c) of this section. 
(c) Effective on January 1 of each year, the amounts in effect 
under subsection (b) of this section shall be increased by the 
percentage by which the maximum rates of pension were increased 
under section 5312(a) of this title during the preceding calendar 
year. 
(d)(1) Notwithstanding the attributable income of a veteran, 
the Secretary may refuse to make a determination described in 


203 CH. 17-MEDICAL CARE Sec. 1722 

paragraph (2) of this subsection if the corpus of the estate of the 
veteran is such that under all the circumstances it is reasonable 
that some part of the corpus of the estate of the veteran be 
consumed for the veteranï¿½s maintenance. 

(2) A determination described in this paragraph is a determination 
that for purposes of subsection (a)(3) of this section a veteranï¿½s 
attributable income is not greater than the amount determined under 
subsection (b) of this section. 
(3) For the purposes of paragraph (1) of this subsection, the 
corpus of the estate of a veteran shall be determined in the same 
manner as the manner in which determinations are made of the 
corpus of the estates of persons under section 1522 of this title. 
(e)(1) In order to avoid a hardship to a veteran described in 
paragraph (2) of this subsection, the Secretary may deem the veteran 
to have an attributable income during the previous year not 
greater than the amount determined under subsection (b) of this 
section. 

(2) A veteran is described in this paragraph for the purposes 
of subsection (a) of this section if- 
(A) the veteran has an attributable income greater than 
the amount determined under subsection (b) of this section; 
and 
(B) the current projections of such veteranï¿½s income for the 
current year are that the veteranï¿½s income for such year will 
be substantially below the amount determined under subsection (b). 
(f) For purposes of this section: 
(1) The term ï¿½ï¿½attributable incomeï¿½ï¿½ means the income of a 
veteran for the previous year determined in the same manner 
as the manner in which a determination is made of the total 
amount of income by which the rate of pension for such veteran under 
section 1521 of this title would be reduced if such 
veteran were eligible for pension under that section. 
(2) The term ï¿½ï¿½corpus of the estate of the veteranï¿½ï¿½ includes 
the corpus of the estates of the veteranï¿½s spouse and dependent 
children, if any. 
(3) The term ï¿½ï¿½previous yearï¿½ï¿½ means the calendar year preceding the 
year in which the veteran applies for care or services under section 
1710(a) of this title. 
(g) For the purposes of section 1724(c) of this title, the fact that 
a veteran is- 
(1) eligible to receive medical assistance under a State 
plan approved under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.); 
(2) a veteran with a service-connected disability; or 
(3) in receipt of pension under any law administered by 
the Secretary, 
shall be accepted as sufficient evidence of such veteranï¿½s inability 
to defray necessary expenses. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1144, Sec. 622; Pub. L. 
89-612, Sec. 1, Sept. 
30, 1966, 80 Stat. 859; Pub. L. 91-500, Sec. 1, Oct. 22, 1970, 84 Stat. 
1096; Pub. 

L. 94-581, title II, Sec. 202(k), 210(a)(9), Oct. 21, 1976, 90 Stat. 
2856, 2863; Pub. 
L. 96-330, title IV, Sec. 401(a), Aug. 26, 1980, 94 Stat. 1051; 
Pub. L. 99-272, title 
XIX, Sec. 19011(c)(1), Apr. 7, 1986, 100 Stat. 376; Pub. L. 
100-322, title I, Sec. 
102(b), May 20, 1988, 102 Stat. 493; Pub. L. 101-508, title VIII, 
Sec. 8013(c), Nov. 

Sec. 1722A CH. 17-MEDICAL CARE 204 

5, 1990, 104 Stat. 1388-346; Pub. L. 102-40, title IV, Sec. 
402(d)(1), May 7, 1991, 
105 Stat. 239; renumbered Sec. 1722 and amended Pub. L. 102-83, 
Sec. 4(a)(1), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406; 
Pub. L. 104-262, title I, 
Sec. 101(d)(9), Oct. 9, 1996, 110 Stat. 3180.) 

ï¿½ 1722A. Copayment for medications 

(a)(1) Subject to paragraph (2), the Secretary shall require a 
veteran to pay the United States $2 for each 30-day supply of 
medication furnished such veteran under this chapter on an 
outpatient basis for the treatment of a non-service-connected disability 
or condition. If the amount supplied is less than a 30-day supply, 
the amount of the charge may not be reduced. 

(2) The Secretary may not require a veteran to pay an amount 
in excess of the cost to the Secretary for medication described in 
paragraph (1). 
(3) Paragraph (1) does not apply- 
(A) to a veteran with a service-connected disability rated 
50 percent or more; 
(B) to a veteran who is a former prisoner of war; or 
(C) to a veteran whose annual income (as determined 
under section 1503 of this title) does not exceed the maximum 
annual rate of pension which would be payable to such veteran 
if such veteran were eligible for pension under section 1521 of 
this title. 
(b) The Secretary, pursuant to regulations which the Secretary 
shall prescribe, may- 
(1) increase the copayment amount in effect under subsection (a); and 
(2) establish a maximum monthly and a maximum annual 
pharmaceutical copayment amount under subsection (a) for 
veterans who have multiple outpatient prescriptions. 
(c) Amounts collected under this section shall be deposited in 
the Department of Veterans Affairs Medical Care Collections Fund. 
(Added Pub. L. 101-508, title VIII, Sec. 8012(a)(1), Nov. 5, 1990, 
104 Stat. 1388- 
345, Sec. 622A; renumbered Sec. 1722A, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 
Stat. 406; amended Pub. L. 102-139, title V, Sec. 518(a), Oct. 28, 
1991, 105 Stat. 
779; Pub. L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. 
L. 102-568, title 
VI, Sec. 605(a), 606(a), Oct. 29, 1992, 106 Stat. 4343; Pub. L. 
103-66, title XII, Sec. 
12002(b), Aug. 10, 1993, 107 Stat. 414; Pub. L. 103-446, title XII, 
Sec. 1201(e)(7), 
Nov. 2, 1994, 108 Stat. 4685; Pub. L. 105-33, title VIII, Sec. 
8021(b), 8023(b)(3), 
Aug. 5, 1997, 111 Stat. 665, 667; Pub. L. 106-117, title II, Sec. 
201(a), Nov. 30, 
1999, 113 Stat. 1560; Pub. L. 108-7, div. K, title I, Sec. 113(c), 
Feb. 20, 2003, 117 
Stat. 482; Pub. L. 108-170, title I, Sec. 101(b), Dec. 6, 2003, 
117 Stat. 2043.) 

ï¿½ 1723. Furnishing of clothing 

The Secretary shall not furnish clothing to persons who are in 
Department facilities, except (1) where the furnishing of such 
clothing to indigent persons is necessary to protect health or 
sanitation, 
and (2) where the Secretary furnishes veterans with special clothing 
made necessary by the wearing of prosthetic appliances. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1144, Sec. 623; Pub. L. 
94-581, title II, Sec. 
210(a)(10), Oct. 21, 1976, 90 Stat. 2863; renumbered Sec. 1723 and 
amended Pub. 

L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 
105 Stat. 404-406.) 

205 CH. 17-MEDICAL CARE Sec. 1725 

ï¿½ 1724. Hospital care, medical services, and nursing home 
care abroad 

(a) Except as provided in subsections (b) and (c), the Secretary 
shall not furnish hospital or domiciliary care or medical services 
outside any State. 
(b)(1) The Secretary may furnish hospital care and medical 
services outside a State to a veteran who is otherwise eligible to 
receive hospital care and medical services if the Secretary determines 
that such care and services are needed for the treatment of 
a service-connected disability of the veteran or as part of a 
rehabilitation program under chapter 31 of this title. 

(2) Care and services for a service-connected disability of a veteran 
who is not a citizen of the United States may be furnished 
under this subsection only- 
(A) if the veteran is in the Republic of the Philippines or 
in Canada; or 
(B) if the Secretary determines, as a matter of discretion 
and pursuant to regulations which the Secretary shall prescribe, that 
it is appropriate and feasible to furnish such care 
and services. 
(c) Within the limits of those facilities of the Veterans Memorial 
Medical Center at Manila, Republic of the Philippines, for 
which the Secretary may contract, the Secretary may furnish necessary 
hospital care to a veteran for any non-service-connected disability if 
such veteran is unable to defray the expenses of necessary 
hospital care. The Secretary may enter into contracts to carry out 
this section. 
(d) The Secretary may furnish nursing home care, on the same 
terms and conditions set forth in section 1720(a) of this title, to any 
veteran who has been furnished hospital care in the Philippines 
pursuant to this section, but who requires a protracted period of 
nursing home care. 
(e) Within the limits of an outpatient clinic in the Republic of 
the Philippines that is under the direct jurisdiction of the Secretary, 
the Secretary may furnish a veteran who has a service-connected 
disability with such medical services as the Secretary determines to be 
needed. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1144, Sec. 624; Pub. L. 86-152, 
Aug. 11, 
1959, 73 Stat. 332; Pub. L. 86-624, Sec. 25(a), July 12, 1960, 74 Stat. 
418; Pub. L. 
87-815, Sec. 4, Oct. 15, 1962, 76 Stat. 927; Pub. L. 93-82, title I, 
Sec. 108, Aug. 
2, 1973, 87 Stat. 186; Pub. L. 94-581, title II, Sec. 202(l), 
210(a)(11), Oct. 21, 1976, 
90 Stat. 2856, 2863; Pub. L. 95-520, Sec. 3(a), Oct. 26, 1978, 92 
Stat. 1820; Pub. 

L. 97-72, title I, Sec. 107(a), Nov. 3, 1981, 95 Stat. 1051; Pub. L. 
97-295, Sec. 4(20), 
Oct. 12, 1982, 96 Stat. 1306; Pub. L. 100-322, title I, Sec. 105, 
May 20, 1988, 102 
Stat. 493; renumbered Sec. 1724 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 106-377,
Sec. 1(a)(1) [title V, 
Sec. 501(c)], Oct. 27, 2000, 114 Stat. 1441, 1441A-58.) 
ï¿½ 1725. Reimbursement for emergency treatment 

(a) GENERAL AUTHORITY.-(1) Subject to subsections (c) and 
(d), the Secretary shall reimburse a veteran described in subsection 
(b) for the reasonable value of emergency treatment furnished the 
veteran in a non-Department facility. 
(2) In any case in which reimbursement is authorized under 
subsection (a)(1), the Secretary, in the Secretaryï¿½s discretion, may, 

Sec. 1725 CH. 17-MEDICAL CARE 206 

in lieu of reimbursing the veteran, make payment of the reasonable 
value of the furnished emergency treatment directly- 

(A) to a hospital or other health care provider that furnished the 
treatment; or 
(B) to the person or organization that paid for such treatment on 
behalf of the veteran. 
(b) ELIGIBILITY.-(1) A veteran referred to in subsection (a)(1) 
is an individual who is an active Department health-care participant 
who is personally liable for emergency treatment furnished 
the veteran in a non-Department facility. 
(2) A veteran is an active Department health-care participant 
if- 
(A) the veteran is enrolled in the health care system established 
under section 1705(a) of this title; and 
(B) the veteran received care under this chapter within the 
24-month period preceding the furnishing of such emergency 
treatment. 
(3) A veteran is personally liable for emergency treatment furnished 
the veteran in a non-Department facility if the veteran- 
(A) is financially liable to the provider of emergency treatment for 
that treatment; 
(B) has no entitlement to care or services under a health-
plan contract (determined, in the case of a health-plan contract 
as defined in subsection (f)(2)(B) or (f)(2)(C), without regard to 
any requirement or limitation relating to eligibility for care or 
services from any department or agency of the United States); 
(C) has no other contractual or legal recourse against a 
third party that would, in whole or in part, extinguish such liability 
to the provider; and 
(D) is not eligible for reimbursement for medical care or 
services under section 1728 of this title. 
(c) LIMITATIONS ON REIMBURSEMENT.-(1) The Secretary, in accordance with 
regulations prescribed by the Secretary, shall- 
(A) establish the maximum amount payable under subsection (a); 
(B) delineate the circumstances under which such payments may be made, 
to include such requirements on requesting reimbursement as the 
Secretary shall establish; and 
(C) provide that in no event may a payment under that 
subsection include any amount for which the veteran is not 
personally liable. 
(2) Subject to paragraph (1), the Secretary may provide reimbursement 
under this section only after the veteran or the provider 
of emergency treatment has exhausted without success all claims 
and remedies reasonably available to the veteran or provider 
against a third party for payment of such treatment. 
(3) Payment by the Secretary under this section on behalf of 
a veteran to a provider of emergency treatment shall, unless rejected 
and refunded by the provider within 30 days of receipt, extinguish any 
liability on the part of the veteran for that treatment. 
Neither the absence of a contract or agreement between the Secretary 
and the provider nor any provision of a contract, agreement, 
or assignment to the contrary shall operate to modify, limit, or negate 
the requirement in the preceding sentence. 

207 CH. 17-MEDICAL CARE Sec. 1725 

(d) INDEPENDENT RIGHT OF RECOVERY.-(1) In accordance with 
regulations prescribed by the Secretary, the United States shall 
have the independent right to recover any amount paid under this 
section when, and to the extent that, a third party subsequently 
makes a payment for the same emergency treatment. 
(2) Any amount paid by the United States to the veteran (or 
the veteranï¿½s personal representative, successor, dependents, or 
survivors) or to any other person or organization paying for such 
treatment shall constitute a lien in favor of the United States 
against any recovery the payee subsequently receives from a third 
party for the same treatment. 
(3) Any amount paid by the United States to the provider that 
furnished the veteranï¿½s emergency treatment shall constitute a lien 
against any subsequent amount the provider receives from a third 
party for the same emergency treatment for which the United 
States made payment. 
(4) The veteran (or the veteranï¿½s personal representative, successor,
dependents, or survivors) shall ensure that the Secretary is 
promptly notified of any payment received from any third party for 
emergency treatment furnished to the veteran. The veteran (or the 
veteranï¿½s personal representative, successor, dependents, or survivors) 
shall immediately forward all documents relating to such 
payment, cooperate with the Secretary in the investigation of such 
payment, and assist the Secretary in enforcing the United States 
right to recover any payment made under subsection (c)(3). 
(e) WAIVER.-The Secretary, in the Secretaryï¿½s discretion, may 
waive recovery of a payment made to a veteran under this section 
that is otherwise required by subsection (d)(1) when the Secretary 
determines that such waiver would be in the best interest of the 
United States, as defined by regulations prescribed by the Secretary. 
(f) DEFINITIONS.-For purposes of this section: 
(1) The term ï¿½ï¿½emergency treatmentï¿½ï¿½ means medical care 
or services furnished, in the judgment of the Secretary- 
(A) when Department or other Federal facilities are 
not feasibly available and an attempt to use them beforehand would not 
be reasonable; 
(B) when such care or services are rendered in a medical emergency of 
such nature that a prudent layperson 
reasonably expects that delay in seeking immediate medical attention 
would be hazardous to life or health; and 
(C) until- 
(i) such time as the veteran can be transferred 
safely to a Department facility or other Federal facility 
and such facility is capable of accepting such transfer; 
or 
(ii) such time as a Department facility or other 
Federal facility accepts such transfer if- 
(I) at the time the veteran could have been 
transferred safely to a Department facility or 
other Federal facility, no Department facility or 
other Federal facility agreed to accept such transfer; and 

Sec. 1726 CH. 17-MEDICAL CARE 208 

(II) the non-Department facility in which such 
medical care or services was furnished made and 
documented reasonable attempts to transfer the 
veteran to a Department facility or other Federal 
facility. 
(2) The term ï¿½ï¿½health-plan contractï¿½ï¿½ includes any of the following: 
(A) An insurance policy or contract, medical or hospital service 
agreement, membership or subscription contract, or similar arrangement 
under which health services 
for individuals are provided or the expenses of such services are paid. 
(B) An insurance program described in section 1811 of 
the Social Security Act (42 U.S.C. 1395c) or established by 
section 1831 of that Act (42 U.S.C. 1395j). 
(C) A State plan for medical assistance approved 
under title XIX of such Act (42 U.S.C. 1396 et seq.). 
(D) A workersï¿½ compensation law or plan described in 
section 1729(a)(2)(A) of this title. 
(E) A law of a State or political subdivision described 
in section 1729(a)(2)(B) of this title. 
(3) The term ï¿½ï¿½third partyï¿½ï¿½ means any of the following: 
(A) A Federal entity. 
(B) A State or political subdivision of a State. 
(C) An employer or an employerï¿½s insurance carrier. 
(D) An automobile accident reparations insurance carrier. 
(E) A person or entity obligated to provide, or to pay 
the expenses of, health services under a health-plan contract. 
(Added Pub. L. 106-117, title I, Sec. 111(a), Nov. 30, 1999, 113 Stat. 
1553; amended 
Pub. L. 110-387, title IV, Sec. 402(a), Oct. 10, 2008, 122 Stat. 4123.) 

ï¿½ 1726. Reimbursement for loss of personal effects by natural disaster 

The Secretary shall, under regulations which the Secretary 
shall prescribe, reimburse veterans in Department hospitals and 
domiciliaries for any loss of personal effects sustained by fire, 
earthquake, or other natural disaster while such effects were 
stored in designated locations in Department hospitals or domiciliaries. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1144, Sec. 627; Pub. L. 93-82, 
title I, Sec. 
105, Aug. 2, 1973, 87 Stat. 183; Pub. L. 94-581, title II, Sec. 
210(a)(12), Oct. 21, 
1976, 90 Stat. 2863; renumbered Sec. 1726 and amended Pub. L. 102-83, 
Sec. 
4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1727. Persons eligible under prior law 

Persons who have a status which would, under the laws in effect on 
December 31, 1957, entitle them to the medical services, 
hospital and domiciliary care, and other benefits, provided for in 
this chapter, but who do not meet the service requirements contained in 
this chapter, shall be entitled to such benefits notwithstanding 
failure to meet such service requirements. 


209 CH. 17-MEDICAL CARE Sec. 1729 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1144, Sec. 627; Pub. L. 
94-581, title II, Sec. 
202(m), Oct. 21, 1976, 90 Stat. 2856; renumbered Sec. 1727 Pub. L. 
102-83, Sec. 
5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1728. Reimbursement of certain medical expenses 

(a) The Secretary shall, under such regulations as the Secretary 
prescribes, reimburse veterans eligible for hospital care or 
medical services under this chapter for the customary and usual 
charges of emergency treatment (including travel and incidental 
expenses under the terms and conditions set forth in section 111 of 
this title) for which such veterans have made payment, from 
sources other than the Department, where such emergency treatment was 
rendered to such veterans in need thereof for any of the 
following: 
(1) An adjudicated service-connected disability. 
(2) A non-service-connected disability associated with and 
held to be aggravating a service-connected disability. 
(3) Any disability of a veteran if the veteran has a total 
disability permanent in nature from a service-connected disability. 
(4) Any illness, injury, or dental condition of a veteran 
who- 
(A) is a participant in a vocational rehabilitation program (as defined 
in section 3101(9) of this title); and 
(B) is medically determined to have been in need of 
care or treatment to make possible the veteranï¿½s entrance 
into a course of training, or prevent interruption of a 
course of training, or hasten the return to a course of 
training which was interrupted because of such illness, injury, or 
dental condition. 
(b) In any case where reimbursement would be in order under 
subsection (a) of this section, the Secretary may, in lieu of
reimbursing such veteran, make payment of the reasonable value of 
emergency treatment directly- 
(1) to the hospital or other health facility furnishing the 
emergency treatment; or 
(2) to the person or organization making such expenditure 
on behalf of such veteran. 
(c) In this section, the term ï¿½ï¿½emergency treatmentï¿½ï¿½ has the 
meaning given such term in section 1725(f)(1) of this title. 
(Added Pub. L. 93-82, title I, Sec. 106(a), Aug. 2, 1973, 87 Stat. 183, 
Sec. 628; 
amended Pub. L. 94-581, title II, Sec. 202(n), 210(a)(13), Oct. 21, 
1976, 90 Stat. 
2856, 2863; Pub. L. 96-151, title II, Sec. 201(d), Dec. 20, 1979, 93 
Stat. 1093; Pub. 

L. 101-237, title II, Sec. 202(a), Dec. 18, 1989, 103 Stat. 2066; Pub. 
L. 102-54, Sec. 
14(b)(14), June 13, 1991, 105 Stat. 284; renumbered Sec. 1728 and 
amended Pub. 
L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404- 
406; Pub. L. 110-387, title IV, Sec. 402(b), Oct. 10, 2008, 122 Stat. 
4123.) 
ï¿½ 1729. Recovery by the United States of the cost of certain 
care and services 

(a)(1) Subject to the provisions of this section, in any case in 
which a veteran is furnished care or services under this chapter for 
a non-service-connected disability described in paragraph (2) of this 
subsection, the United States has the right to recover or collect 
reasonable charges for such care or services (as determined by the Sec


Sec. 1729 CH. 17-MEDICAL CARE 210 

retary) from a third party to the extent that the veteran (or the 
provider of the care or services) would be eligible to receive payment 
for such care or services from such third party if the care or 
services had not been furnished by a department or agency of the 
United States. 

(2) Paragraph (1) of this subsection applies to a non-serviceconnected 
disability- 
(A) that is incurred incident to the veteranï¿½s employment 
and that is covered under a workersï¿½ compensation law or plan 
that provides for payment for the cost of health care and services 
provided to the veteran by reason of the disability; 
(B) that is incurred as the result of a motor vehicle accident to which 
applies a State law that requires the owners or 
operators of motor vehicles registered in that State to have in 
force automobile accident reparations insurance; 
(C) that is incurred as the result of a crime of personal violence that 
occurred in a State, or a political subdivision of a 
State, in which a person injured as the result of such a crime 
is entitled to receive health care and services at such Stateï¿½s 
or subdivisionï¿½s expense for personal injuries suffered as the 
result of such crime; 
(D) that is incurred by a veteran- 
(i) who does not have a service-connected disability; 
and 
(ii) who is entitled to care (or payment of the expenses 
of care) under a health-plan contract; or 
(E) for which care and services are furnished before October 1, 2010, 
under this chapter to a veteran who- 
(i) has a service-connected disability; and 
(ii) is entitled to care (or payment of the expenses of 
care) under a health-plan contract. 
(3) In the case of a health-plan contract that contains a requirement 
for payment of a deductible or copayment by the veteran- 
(A) the veteranï¿½s not having paid such deductible or copayment with 
respect to care or services furnished under this 
chapter shall not preclude recovery or collection under this section; 
and 
(B) the amount that the United States may collect or recover under this 
section shall be reduced by the appropriate 
deductible or copayment amount, or both. 
(b)(1) As to the right provided in subsection (a) of this section, 
the United States shall be subrogated to any right or claim that 
the veteran (or the veteranï¿½s personal representative, successor, 
dependents, or survivors) may have against a third party. 

(2)(A) In order to enforce any right or claim to which the 
United States is subrogated under paragraph (1) of this subsection, 
the United States may intervene or join in any action or proceeding 
brought by the veteran (or the veteranï¿½s personal representative, 
successor, dependents, or survivors) against a third party. 

(B) The United States may institute and prosecute legal proceedings 
against the third party if- 
(i) an action or proceeding described in subparagraph (A) 
of this paragraph is not begun within 180 days after the first 

211 CH. 17-MEDICAL CARE Sec. 1729 

day on which care or services for which recovery is sought are 
furnished to the veteran by the Secretary under this chapter; 

(ii) the United States has sent written notice by certified 
mail to the veteran at the veteranï¿½s last-known address (or to 
the veteranï¿½s personal representative or successor) of the intention 
of the United States to institute such legal proceedings; 
and 
(iii) a period of 60 days has passed following the mailing 
of such notice. 
(C) A proceeding under subparagraph (B) of this paragraph 
may not be brought after the end of the six-year period beginning 
on the last day on which the care or services for which recovery is 
sought are furnished. 
(c)(1) The Secretary may compromise, settle, or waive any 
claim which the United States has under this section. 

(2)(A) The Secretary, after consultation with the Comptroller 
General of the United States, shall prescribe regulations for the 
purpose of determining reasonable charges for care or services 
under subsection (a)(1) of this section. Any determination of such 
charges shall be made in accordance with such regulations. 

(B) Such regulations shall provide that the reasonable charges 
for care or services sought to be recovered or collected from a third-
party liable under a health-plan contract may not exceed the 
amount that such third party demonstrates to the satisfaction of 
the Secretary it would pay for the care or services if provided by 
facilities (other than facilities of departments or agencies of the 
United States) in the same geographic area. 
(C) Not later than 45 days after the date on which the Secretary 
prescribes such regulations (or any amendment to such regulations), 
the Comptroller General shall submit to the Committees 
on Veteransï¿½ Affairs of the Senate and the House of Representatives 
the Comptroller Generalï¿½s comments on and recommendations 
regarding such regulations (or amendment). 
(d) Any contract or agreement into which the Secretary enters 
with a person under section 3718 of title 31 for collection services 
to recover indebtedness owed the United States under this section 
shall provide, with respect to such services, that such person is 
subject to sections 5701 and 7332 of this title. 
(e) A veteran eligible for care or services under this chapter- 
(1) may not be denied such care or services by reason of 
this section; and 
(2) may not be required by reason of this section to make 
any copayment or deductible payment in order to receive such 
care. 
(f) No law of any State or of any political subdivision of a 
State, and no provision of any contract or other agreement, shall 
operate to prevent recovery or collection by the United States 
under this section or with respect to care or services furnished 
under section 1784 of this title. 
ï¿½(g) Repealed. Pub. L. 105-33, title VIII, Sec. 8023(b)(4), Aug. 
5, 1997, 111 Stat. 667ï¿½ 

(h)(1) Subject to paragraph (3) of this subsection, the Secretary 
shall make available medical records of a veteran described in 
paragraph (2) of this subsection for inspection and review by rep


Sec. 1729 CH. 17-MEDICAL CARE 212 

resentatives of the third party concerned for the sole purposes of 
permitting the third party to verify- 

(A) that the care or services for which recovery or collection is 
sought were furnished to the veteran; and 
(B) that the provision of such care or services to the veteran meets 
criteria generally applicable under the health-plan 
contract involved. 
(2) A veteran described in this paragraph is a veteran who is 
a beneficiary of a health-plan contract under which recovery or 
collection is sought under this section from the third party concerned 
for the cost of the care or services furnished to the veteran. 
(3) Records shall be made available under this subsection 
under such conditions to protect the confidentiality of such records 
as the Secretary shall prescribe in regulations. 
(i) For purposes of this section- 
(1)(A) The term ï¿½ï¿½health-plan contractï¿½ï¿½ means an insurance 
policy or contract, medical or hospital service agreement, membership 
or subscription contract, or similar arrangement, under 
which health services for individuals are provided or the expenses of 
such services are paid. 

(B) Such term does not include- 
(i) an insurance program described in section 1811 of 
the Social Security Act (42 U.S.C. 1395c) or established by 
section 1831 of such Act (42 U.S.C. 1395j); 
(ii) a State plan for medical assistance approved under 
title XIX of such Act (42 U.S.C. 1396 et seq.); 
(iii) a workersï¿½ compensation law or plan described in 
subparagraph (A) of subsection (a)(2) of this section; or 
(iv) a program, plan, or policy under a law described 
in subparagraph (B) or (C) of such subsection. 
(2) The term ï¿½ï¿½paymentï¿½ï¿½ includes reimbursement and indemnification. 
(3) The term ï¿½ï¿½third partyï¿½ï¿½ means- 
(A) a State or political subdivision of a State; 
(B) an employer or an employerï¿½s insurance carrier; 
(C) an automobile accident reparations insurance carrier; or 
(D) a person obligated to provide, or to pay the expenses of, health 
services under a health-plan contract. 
(Added Pub. L. 97-72, title I, Sec. 106(a)(1), Nov. 3, 1981, 95 Stat. 
1050, Sec. 629; 
amended Pub. L. 99-272, title XIX, Sec. 19013(a), Apr. 7, 1986, 100 
Stat. 382; Pub. 

L. 100-322, title II, Sec. 202, May 20, 1988, 102 Stat. 509; Pub. L. 
101-508, title 
VIII, Sec. 8011(a)-(c), Nov. 5, 1990, 104 Stat. 1388-344; Pub. L. 
102-40, title IV, 
Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered Sec. 1729 
and amended Pub. 
L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 
102-568, title VI, Sec. 604, Oct. 29, 1992, 106 Stat. 4343; Pub. L. 
103-66, title XII, 
Sec. 12003, Aug. 10, 1993, 107 Stat. 414; Pub. L. 104-262, title I, 
Sec. 101(d)(10), 
Oct. 9, 1996, 110 Stat. 3180; Pub. L. 105-33, title VIII, Secs. 
8022, 8023(b)(4), (d), 
Aug. 5, 1997, 111 Stat. 665, 667; Pub. L. 107-135, title II, Secs. 
208(e)(4), 209(b), 
Jan. 23, 2002, 115 Stat. 2463, 2464; Pub. L. 110-161, div. I, title 
II, Sec. 232, Dec. 
26, 2007, 121 Stat. 2273; Pub. L. 110-329, div. E, title II, Sec. 
225, Sept. 30, 2008, 
122 Stat. 3713; Pub. L. 110-387, title VIII, Sec. 804(b), Oct. 10, 
2008, 122 Stat. 
4141.) 

213 CH. 17-MEDICAL CARE Sec. 1729A 

ï¿½ 1729A. Department of Veterans Affairs Medical Care Collections Fund 

(a) There is in the Treasury a fund to be known as the Department of 
Veterans Affairs Medical Care Collections Fund. 
(b) Amounts recovered or collected under any of the following 
provisions of law shall be deposited in the fund: 
(1) Section 1710(f) of this title. 
(2) Section 1710(g) of this title. 
(3) Section 1711 of this title. 
(4) Section 1722A of this title. 
(5) Section 1725 of this title. 
(6) Section 1729 of this title. 
(7) Section 1784 of this title. 
(8) Section 8165(a) of this title. 
(9) Section 113 of the Veterans Millennium Health Care 
and Benefits Act (Public Law 106-117; 38 U.S.C. 8111 note). 
(10) Public Law 87-693, popularly known as the ï¿½ï¿½Federal 
Medical Care Recovery Actï¿½ï¿½ (42 U.S.C. 2651 et seq.), to the extent 
that a recovery or collection under that law is based on 
medical care or services furnished under this chapter. 
(c)(1) Subject to the provisions of appropriations Acts, amounts 
in the fund shall be available, without fiscal year limitation, to the 
Secretary for the following purposes: 

(A) Furnishing medical care and services under this chapter, to be 
available during any fiscal year for the same purposes and subject to 
the same limitations (other than with respect to the period of 
availability for obligation) as apply to 
amounts appropriated from the general fund of the Treasury 
for that fiscal year for medical care. 
(B) Expenses of the Department for the identification, billing, 
auditing, and collection of amounts owed the United States 
by reason of medical care and services furnished under this 
chapter. 
(2) Amounts available under paragraph (1) may not be used for 
any purpose other than a purpose set forth in subparagraph (A) or 
(B) of that paragraph. 
(d) Of the total amount recovered or collected by the Department during 
a fiscal year under the provisions of law referred to 
in subsection (b) and made available from the fund, the Secretary 
shall make available to each Department health care facility of the 
Department an amount that bears the same ratio to the total 
amount so made available as the amount recovered or collected by 
such facility during that fiscal year under such provisions of law 
bears to such total amount recovered or collected during that fiscal 
year. The Secretary shall make available to each facility the entirety 
of the amount specified to be made available to such facility 
by the preceding sentence. 
(e) Amounts recovered or collected under the provisions of law 
referred to in subsection (b) shall be treated for the purposes of 
sections 251 and 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901, 902) as offsets to discretionary 
appropriations (rather than as offsets to direct spending) to the ex

Sec. 1729B CH. 17-MEDICAL CARE 214 

tent that such amounts are made available for expenditure in 
appropriations Acts for the purposes specified in subsection (c). 
(Added Pub. L. 105-33, title VIII, Sec. 8023(a), Aug. 5, 1997, 111 
Stat. 665; Pub. 

L. 106-117, title I, Sec. 111(b)(1), title II, Sec. 203, Nov. 30, 
1999, 113 Stat. 1556, 
1561; Pub. L. 107-135, title II, Sec. 208(e)(5), Jan. 23, 2002, 115 
Stat. 2463; Pub. 
L. 108-7, div. K, title I, Sec. 113(b), Feb. 20, 2003, 117 Stat. 
482; Pub. L. 108-183, 
title VII, Sec. 708(a)(2), Dec. 16, 2003, 117 Stat. 2673.) 
ï¿½ 1729B. Consolidated patient accounting centers 

(a) IN GENERAL.-Not later than five years after the date of the 
enactment of this section, the Secretary of Veterans Affairs shall 
establish not more than seven consolidated patient accounting centers 
for conducting industry-modeled regionalized billing and collection 
activities of the Department. 
(b) FUNCTIONS.-The centers shall carry out the following functions: 
(1) Reengineer and integrate all business processes of the 
revenue cycle of the Department. 
(2) Standardize and coordinate all activities of the Department 
related to the revenue cycle for all health care services 
furnished to veterans for non-service-connected medical conditions. 
(3) Apply commercial industry standards for measures of 
access, timeliness, and performance metrics with respect to 
revenue enhancement of the Department. 
(4) Apply other requirements with respect to such revenue 
cycle improvement as the Secretary may specify. 
(Added Pub. L. 110-387, title IV, Sec. 406(a), Oct. 10, 2008, 122 Stat. 
4129. 

ï¿½ 1730. Community residential care 

(a) Subject to this section and regulations to be prescribed by 
the Secretary under this section, the Secretary may assist a veteran by 
referring such veteran for placement in, and aiding such 
veteran in obtaining placement in, a community residential-care facility 
if- 
(1) at the time of initiating the assistance the Secretary- 
(A) is furnishing the veteran medical services on an 
outpatient basis or hospital, domiciliary, or nursing home 
care; or 
(B) has furnished the veteran such care or services 
within the preceding 12 months; and 
(2) placement of the veteran in a community residential-
care facility is appropriate. 
(b)(1) The Secretary may not provide assistance under sub
section (a) of this section with respect to a community residential-
care facility unless such facility is approved by the Secretary for 
the purposes of this section. 

(2) The Secretaryï¿½s approval of a facility for the purposes of 
this section shall be based upon the Secretaryï¿½s determination, 
after inspection of the facility, that the facility meets the standards 
established in regulations prescribed under this section. Such 
standards shall include the following: 

215 CH. 17-MEDICAL CARE Sec. 1730 

(A) Health and safety criteria, including a requirement of 
compliance with applicable State laws and local ordinances relating 
to health and safety. 
(B) A requirement that the costs charged for care by a facility be 
reasonable, as determined by the Secretary, giving 
consideration to such factors as (i) the level of care, supervision, 
and other services to be provided, (ii) the cost of goods 
and services in the geographic area in which the facility is located, 
and (iii) comparability with other facilities in such area 
providing similar services. 
(C) Criteria for determining the resources that a facility 
needs in order to provide an appropriate level of services to 
veterans. 
(D) Such other criteria as the Secretary determines are appropriate to 
protect the welfare of veterans placed in a facility 
under this section. 
(3) Payment of the charges of a community residential-care facility for 
any care or service provided to a veteran whom the Secretary has 
referred to that facility under this section is not the responsibility 
of the United States or of the Department. 
(c)(1) In order to determine continued compliance by community 
residential-care facilities that have been approved under subsection 
(b) of this section with the standards established in regulations 
prescribed under this section, the Secretary shall provide for 
periodic inspection of such facilities. 

(2) If the Secretary determines that a facility is not in compliance 
with such standards, the Secretary (in accordance with regulations 
prescribed under this section)- 
(A) shall cease to refer veterans to such facility; and 
(B) may, with the permission of the veteran (or the person 
or entity authorized by law to give permission on behalf of the 
veteran), assist in removing a veteran from such facility. Regulations 
prescribed to carry out this paragraph shall provide for 
reasonable notice and, upon request made on behalf of the facility, a 
hearing before any action authorized by this paragraph 
is taken. 
(d) The Secretary shall prescribe regulations to carry out this 
section. Such regulations shall include the standards required by 
subsection (b) of this section. 
(e)(1) To the extent possible, the Secretary shall make available each 
report of an inspection of a community residential-care 
facility under subsection (b)(2) or (c)(1) of this section to each 
Federal, State, and local agency charged with the responsibility of 
licensing or otherwise regulating or inspecting such facility. 

(2) The Secretary shall make the standards prescribed in regulations 
under subsection (d) of this section available to all Federal, 
State, and local agencies charged with the responsibility of licensing 
or otherwise regulating or inspecting community residential-
care facilities. 
(f) For the purpose of this section, the term ï¿½ï¿½community residential-
care facilityï¿½ï¿½ means a facility that provides room and board 
and such limited personal care for and supervision of residents as 
the Secretary determines, in accordance with regulations pre

Sec. 1731 CH. 17-MEDICAL CARE 216 

scribed under this section, are necessary for the health, safety, and 
welfare of residents. 

(Added Pub. L. 98-160, title I, Sec. 104(a), Nov. 21, 1983, 97 Stat. 
996, Sec. 630; 
amended Pub. L. 102-54, Sec. 14(b)(15), June 13, 1991, 105 Stat. 284; 
renumbered 
Sec. 1730 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406.) 

SUBCHAPTER IV-HOSPITAL CARE AND MEDICAL TREAT

MENT FOR VETERANS IN THE REPUBLIC OF THE PHIL

IPPINES 

ï¿½ 1731. Assistance to the Republic of the Philippines 

The President is authorized to assist the Republic of the Philippines 
in fulfilling its responsibility in providing medical care and 
treatment for Commonwealth Army veterans and new Philippine 
Scouts in need of such care and treatment for service-connected 
disabilities and non-service-connected disabilities under certain 
conditions. 

(Added Pub. L. 93-82, title I, Sec. 107(a), Aug. 2, 1973, 87 Stat. 
184, Sec. 631; 
amended Pub. L. 97-72, title I, Sec. 107(b), Nov. 3, 1981, 95 Stat. 
1052; renumbered 
Sec. 1731, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1732. Contracts and grants to provide for the care and 

treatment of United States veterans by the Vet

erans Memorial Medical Center 

(a) The President, with the concurrence of the Republic of the 
Philippines, may authorize the Secretary to enter into contracts 
with the Veterans Memorial Medical Center, with the approval of 
the appropriate department of the Government of the Republic of 
the Philippines, covering the period beginning on October 1, 1981, 
and ending on September 30, 1994, under which the United 
States- 
(1) will provide for payments for hospital care and medical 
services (including nursing home care) in the Veterans Memorial 
Medical Center, as authorized by section 1724 of this title 
and on the terms and conditions set forth in such section, to 
eligible United States veterans at a per diem rate to be jointly 
determined for each fiscal year by the two Governments to be 
fair and reasonable; and 
(2) may provide that payments for such hospital care and 
medical services provided to eligible United States veterans 
may consist in whole or in part of available medicines, medical 
supplies, and equipment furnished by the Secretary to the Veterans 
Memorial Medical Center at valuations therefor as determined by 
the Secretary, who may furnish such medicines, medical supplies, 
and equipment through the revolving supply fund 
pursuant to section 8121 of this title. 
(b)(1) To further assure the effective care and treatment of 
United States veterans in the Veterans Memorial Medical Center, 
there is authorized to be appropriated for each fiscal year during 
the period beginning on October 1, 1981, and ending on September 
30, 1990, the sum of $1,000,000 to be used by the Secretary for 
making grants to the Veterans Memorial Medical Center for the 
purpose of assisting the Republic of the Philippines in the replace


217 CH. 17-MEDICAL CARE Sec. 1734 

ment and upgrading of equipment and in rehabilitating the physical 
plant and facilities of such center. 

(2) Grants under this subsection shall be made on such terms 
and conditions as prescribed by the Secretary. Such terms and 
conditions may include a requirement of prior approval by the 
Secretary of the uses of the funds provided by such grants. 
(3) Funds for such grants may be provided only from appropriations 
made to the Department for the specific purpose of making such grants. 
(c) The Secretary may stop payments under a contract or grant 
under this section upon reasonable notice as stipulated by the 
contract or grant if the Republic of the Philippines and the Veterans 
Memorial Medical Center do not maintain the medical center in a 
well-equipped and effective operating condition as determined by 
the Secretary. 
(d)(1) The authority of the Secretary to enter into contracts and 
to make grants under this section is effective for any fiscal year 
only to the extent that appropriations are available for that 
purpose. 

(2) Appropriations made for the purpose of this section shall 
remain available until expended. 
(Added Pub. L. 93-82, title I, Sec. 107(a), Aug. 2, 1973, 87 Stat. 
184, Sec. 632; 
amended Pub. L. 94-581, title II, Sec. 210(a)(14), Oct. 21, 1976, 
90 Stat. 2863; Pub.

L. 95-520, Sec. 3(b), Oct. 26, 1978, 92 Stat. 1820; Pub. L. 97-72, 
title I, Sec. 
107(c)(1), Nov. 3, 1981, 95 Stat. 1052; Pub. L. 99-576, title II, 
Sec. 206(a)(1), Oct. 
28, 1986, 100 Stat. 3256; Pub. L. 100-687, div. B, title XV, Sec. 
1502(a), (b), Nov. 
18, 1988, 102 Stat. 4132; Pub. L. 102-40, title IV, Sec. 402(d)(1), 
May 7, 1991, 105 
Stat. 239; renumbered Sec. 1732 and amended Pub. L. 102-83, Sec. 
4(a)(3), (4), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. 
L. 102-86, title III,
Sec. 304(a), Aug. 14, 1991, 105 Stat. 416; Pub. L. 102-585, title V, 
Sec. 503, Nov. 
4, 1992, 106 Stat. 4955.) 
ï¿½ 1733. Supervision of program by the President 

The President, or any officer of the United States to whom the 
President may delegate authority under this section, may from 
time to time prescribe such rules and regulations and impose such 
conditions on the receipt of financial aid as may be necessary to 
carry out this subchapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1146, Sec. 633; Pub. L. 
94-581, title II, Sec. 
210(a)(15), Oct. 21, 1976, 90 Stat. 2863; renumbered Sec. 1733, 
Pub. L. 102-83, Sec.
5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1734. Hospital and nursing home care and medical services in the 
United States 

(a) The Secretary shall furnish hospital and nursing home care 
and medical services to any individual described in subsection (b) 
in the same manner, and subject to the same terms and conditions, 
as apply to the furnishing of such care and services to individuals 
who are veterans as defined in section 101(2) of this title. Any 
disability of an individual described in subsection (b) that is a 
service-
connected disability for purposes of this subchapter (as provided 
for 
under section 1735(2) of this title) shall be considered to be a 
service-connected disability for purposes of furnishing care and 
services 
under the preceding sentence. 
(b) Subsection (a) applies to any individual who is a Commonwealth 
Army veteran or new Philippine Scout and who- 

Sec. 1735 CH. 17-MEDICAL CARE 218 

(1) is residing in the United States; and 
(2) is a citizen of the United States or an alien lawfully admitted 
to the United States for permanent residence. 
(Added Pub. L. 96-22, title I, Sec. 106(a), June 13, 1979, 93 Stat. 
53, Sec. 634; renumbered Sec. 1734 and amended Pub. L. 102-83, Sec. 
4(a)(3), (4), (b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 106-377, Sec. 1(a)(1) 
[title V, Sec. 
501(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A-57; Pub. L. 108-170, 
title I, Sec. 103, 
Dec. 6, 2003, 117 Stat. 2044.) 

ï¿½ 1735. Definitions 

For the purposes of this subchapter- 

(1) The term ï¿½ï¿½Commonwealth Army veteransï¿½ï¿½ means persons 
who served before July 1, 1946, in the organized military forces of 
the Government of the Philippines, while such forces were in the 
service of the Armed Forces pursuant to the military order of the 
President dated July 26, 1941, including among such military 
forces organized guerrilla forces under commanders appointed, 
designated, or subsequently recognized by the Commander in Chief, 
Southwest Pacific Area, or other competent authority in the Army 
of the United States, and who were discharged or released from 
such service under conditions other than dishonorable. The term 
ï¿½ï¿½new Philippine Scoutsï¿½ï¿½ means persons who served in the Philippine 
Scouts under section 14 of the Armed Forces Voluntary Recruitment Act 
of 1945, and who were discharged or released from 
such service under conditions other than dishonorable. 
(2) The term ï¿½ï¿½service-connected disabilitiesï¿½ï¿½ means disabilities 
determined by the Secretary under laws administered by the Secretary 
to have been incurred in or aggravated by the service described in 
paragraph (1) in line of duty. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1146, Sec. 634; Pub. L. 
89-612, Sec. 3, Sept. 
30, 1966, 80 Stat. 861; renumbered Sec. 635, Pub. L. 96-22, title I, 
Sec. 106(a), June 
13, 1979, 93 Stat. 53; renumbered Sec. 1735 and amended Pub. L. 
102-83, Sec. 
4(a)(1), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 403-406.) 

SUBCHAPTER V-PAYMENTS TO STATE HOMES 

ï¿½ 1741. Criteria for payment 

(a)(1) Except as provided in section 1745 of this title, the Secretary 
shall pay each State at the per diem rate of- 

(A) $8.70 for domiciliary care; and 
(B) $20.35 for nursing home care and hospital care, 
for each veteran receiving such care in a State home, if such veteran 
is eligible for such care in a Department facility. 
(2) The Secretary may pay each State per diem at a rate determined 
by the Secretary for each veteran receiving extended care 
services described in any of paragraphs (4) through (6) of section 
1710B(a) of this title under a program administered by a State 
home, if such veteran is eligible for such care under laws 
administered by the Secretary. 
(b) In no case shall the payments made with respect to any 
veteran under this section exceed one-half of the cost of the 
veteransï¿½ care in such State home. 
(c) Whenever the Secretary makes a determination pursuant to 
section 1720(a)(2)(A) of this title that the cost of care furnished by 
the Department in a general hospital under the direct jurisdiction 

219 CH. 17-MEDICAL CARE Sec. 1743 

of the Secretary has increased, the Secretary may, effective no 
earlier than the date of such determination, increase the rates paid 
under subsection (a) of this section by a percentage not greater 
than the percentage by which the Secretary has determined that 
such cost of care has increased. 

(d) Subject to section 1743 of this title, the payment of per 
diem for care furnished in a State home facility shall commence on 
the date of the completion of the inspection for recognition of the 
facility under section 1742(a) of this title if the Secretary 
determines, as a result of that inspection, that the State home 
meets the 
standards described in such section. 
(e) Payments to States pursuant to this section shall not be 
considered a liability of a third party, or otherwise be used to 
offset 
or reduce any other payment made to assist veterans. 
(f) Any State home that requests payment or reimbursement 
for services provided to a veteran under this section shall provide 
to the Secretary such information as the Secretary considers necessary 
to identify each individual veteran eligible for payment 
under such section. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1146, Sec. 641; Pub. L. 
86-625, July 12, 
1960, 74 Stat. 424; Pub. L. 87-819, Sec. 1, Oct. 15, 1962, 76 Stat. 
935; Pub. L. 88- 
450, Sec. 3(a), Aug. 19, 1964, 78 Stat. 500; Pub. L. 90-432, Sec. 1, 
July 26, 1968, 
82 Stat. 448; Pub. L. 91-178, Sec. 1, Dec. 30, 1969, 83 Stat. 836; 
Pub. L. 93-82, 
title IV, Sec. 403(a), Aug. 2, 1973, 87 Stat. 196; Pub. L. 94-417, 
Sec. 1(a), Sept. 21, 
1976, 90 Stat. 1277; Pub. L. 94-581, title II, Sec. 202(o), Oct. 21, 
1976, 90 Stat. 
2856; Pub. L. 96-151, title I, Sec. 101(b)(1), Dec. 20, 1979, 93 
Stat. 1092; Pub. L. 
98-160, title I, Sec. 105(a), Nov. 21, 1983, 97 Stat. 998; Pub. L. 
100-322, title I, 
Sec. 134(a), May 20, 1988, 102 Stat. 507; renumbered Sec. 1741 and 
amended Pub. 

L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404- 
406; Pub. L. 102-585, title IV, Sec. 406, Nov. 4, 1992, 106 Stat. 
4954; Pub. L. 104- 
66, title I, Sec. 1141(a), Dec. 21, 1995, 109 Stat. 726; Pub. L. 
104-262, title III, Sec. 
342(a), Oct. 9, 1996, 110 Stat. 3206; Pub. L. 106-117, title I, 
Sec. 101(g), Nov. 30, 
1999, 113 Stat. 1550; Pub. L. 108-422, title II, Sec. 202, Nov. 
30, 2004, 118 Stat. 
2382; Pub. L. 109-461, title II, Sec. 211(a)(3)(A), (b)(2), Dec. 
22, 2006, 120 Stat. 
3419, 3420.) 
ï¿½ 1742. Inspections of such homes; restrictions on beneficiaries 

(a) The Secretary may inspect any State home at such times 
as the Secretary deems necessary. No payment or grant may be 
made to any home under this subchapter unless such home is 
determined by the Secretary to meet such standards as the Secretary 
shall prescribe, which standards with respect to nursing home care 
shall be no less stringent than those prescribed pursuant to section 
1720(b) of this title. 
(b) The Secretary may ascertain the number of persons on account of 
whom payments may be made under this subchapter on 
account of any State home, but shall have no authority over the 
management or control of any State home. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1146, Sec. 642; Pub. L. 
94-581, title I, Sec. 
107(a), title II, Sec. 210(a)(16), Oct. 21, 1976, 90 Stat. 2847, 
2863; renumbered Sec. 
1742 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1743. Applications 

Payments on account of any veteran cared for in a State home 
shall be made under this subchapter only from the date the Sec


Sec. 1744 CH. 17-MEDICAL CARE 220 

retary receives a request for determination of such veteranï¿½s 
eligibility; however, if such request is received by the Secretary 
within 
ten days after care of such veteran begins, payments shall be made 
on account of such veteran from the date care began. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1147, Sec. 643; Pub. L. 
97-251, Sec. 7, Sept. 
8, 1982, 96 Stat. 716; renumbered Sec. 1743 and amended Pub. L. 
102-83, Sec. 
4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1744. Hiring and retention of nurses: payments to assist 
States 

(a) PAYMENT PROGRAM.-The Secretary shall make payments 
to States under this section for the purpose of assisting State 
homes in the hiring and retention of nurses and the reduction of 
nursing shortages at State homes. 
(b) ELIGIBLE RECIPIENTS.-Payments to a State for a fiscal 
year under this section shall, subject to submission of an 
application, be made to any State that during that fiscal year- 
(1) receives per diem payments under this subchapter for 
that fiscal year; and 
(2) has in effect an employee incentive scholarship program or 
other employee incentive program at a State home designed to 
promote the hiring and retention of nursing staff and 
to reduce nursing shortages at that home. 
(c) USE OF FUNDS RECEIVED.-A State may use an amount received under 
this section only to provide funds for a program described in 
subsection (b)(2). Any program shall meet such criteria 
as the Secretary may prescribe. In prescribing such criteria, the 
Secretary shall take into consideration the need for flexibility and 
innovation. 
(d) LIMITATIONS ON AMOUNT OF PAYMENT.-(1) A payment 
under this section may not be used to provide more than 50 percent 
of the costs for a fiscal year of the employee incentive scholarship 
or other employee incentive program for which the payment is 
made. 
(2) The amount of the payment to a State under this section 
for any fiscal year is, for each State home in that State with a 
program described in subsection (b)(2), the amount equal to 2 percent 
of the amount of payments estimated to be made to that State, for 
that State home, under section 1741 of this title for that fiscal 
year. 
(e) APPLICATIONS.-A payment under this section for any fiscal 
year with respect to any State home may only be made based upon 
an application submitted by the State seeking the payment with 
respect to that State home. Any such application shall describe the 
nursing shortage at the State home and the employee incentive 
scholarship program or other employee incentive program described 
in subsection (c) for which the payment is sought. 
(f) SOURCE OF FUNDS.-Payments under this section shall be 
made from funds available for other payments under this subchapter. 
(g) DISBURSEMENT.-Payments under this section to a State 
home shall be made as part of the disbursement of payments under 
section 1741 of this title with respect to that State home. 

221 CH. 17-MEDICAL CARE Sec. 1745 

(h) USE OF CERTAIN RECEIPTS.-The Secretary shall require as 
a condition of any payment under this section that, in any case in 
which the State home receives a refund payment made by an employee 
in breach of the terms of an agreement for employee assistance 
that used funds provided under this section, the payment 
shall be returned to the State homeï¿½s incentive program account 
and credited as a non-Federal funding source. 
(i) ANNUAL REPORT FROM PAYMENT RECIPIENTS.-Any State 
home receiving a payment under this section for any fiscal year, 
shall, as a condition of the payment, be required to agree to 
provide 
to the Secretary a report setting forth in detail the use of funds 
received through the payment, including a descriptive analysis of 
how effective the incentive program has been on nurse staffing in 
the State home during that fiscal year. The report for any fiscal 
year shall be provided to the Secretary within 60 days of the close 
of the fiscal year and shall be subject to audit by the Secretary. 
Eligibility for a payment under this section for any later fiscal year 
is contingent upon the receipt by the Secretary of the annual report 
under this subsection for the previous fiscal year in accordance 
with this subsection. 
(j) REGULATIONS.-The Secretary shall prescribe regulations to 
carry out this section. The regulations shall include the 
establishment of criteria for the award of payments under this 
section. 
(Added Pub. L. 108-422, title II, Sec. 201(a)(1), Nov. 30, 2004, 
118 Stat. 2380.) 

ï¿½ 1745. Nursing home care and medications for veterans 
with service-connected disabilities 

(a)(1) The Secretary shall pay each State home for nursing 
home care at the rate determined under paragraph (2), in any case 
in which such care is provided to any veteran as follows: 

(A) Any veteran in need of such care for a service-connected 
disability. 
(B) Any veteran who- 
(i) has a service-connected disability rated at 70 percent or 
more; and 
(ii) is in need of such care. 
(2) The rate determined under this paragraph with respect to 
a State home is the lesser of- 
(A) the applicable or prevailing rate payable in the geographic 
area in which the State home is located, as determined 
by the Secretary, for nursing home care furnished in a non-
Department nursing home (as that term is defined in section 
1720(e)(2) of this title); or 
(B) a rate not to exceed the daily cost of care, as determined 
by the Secretary, following a report to the Secretary by 
the director of the State home. 
(3) Payment by the Secretary under paragraph (1) to a State 
home for nursing home care provided to a veteran described in that 
paragraph constitutes payment in full to the State home for such 
care furnished to that veteran. 
(b) The Secretary shall furnish such drugs and medicines as 
may be ordered on prescription of a duly licensed physician as 
specific therapy in the treatment of illness or injury to any 
veteran as follows: 

Sec. 1751 CH. 17-MEDICAL CARE 222 

(1) Any veteran who- 
(A) is not being provided nursing home care for which 
payment is payable under subsection (a); and 
(B) is in need of such drugs and medicines for a service-connected 
disability. 
(2) Any veteran who- 
(A) has a service-connected disability rated at 50 percent or more; 
(B) is not being provided nursing home care for which 
payment is payable under subsection (a); and 
(C) is in need of such drugs and medicines. 
(c) Any State home that requests payment or reimbursement 
for services provided to a veteran under this section shall provide 
to the Secretary such information as the Secretary considers 
necessary to identify each individual veteran eligible for payment 
under such section. 
(Added and amended Pub. L. 109-461, title II, Sec. 211(a)(1), (2), 
(b)(1), Dec. 22, 
2006, 120 Stat. 3418, 3419.) 

SUBCHAPTER VI-SICKLE CELL ANEMIA 

ï¿½ 1751. Screening, counseling, and medical treatment 

The Secretary is authorized to carry out a comprehensive program of 
providing sickle cell anemia screening, counseling, treatment, and 
information under the provisions of this chapter. 

(Added Pub. L. 93-82, title I, Sec. 109(a), Aug. 2, 1973, 87 Stat. 
186, Sec. 651; renumbered Sec. 1751 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406.) 

ï¿½ 1752. Research 

The Secretary is authorized to carry out research and research 
training in the diagnosis, treatment, and control of sickle cell 
anemia based upon the screening examinations and treatment provided 
under this subchapter. 

(Added Pub. L. 93-82, title I, Sec. 109(a), Aug. 2, 1973, 87 Stat. 
186, Sec. 652; renumbered Sec. 1752 and amended Pub. L. 102-83, 
Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406.) 

ï¿½ 1753. Voluntary participation; confidentiality 

(a) The participation by any person in any program or portion 
thereof under this subchapter shall be wholly voluntary and shall 
not be a prerequisite to eligibility for or receipt of any other 
service 
or assistance from, or to participation in, any other program under 
this title. 
(b) Patient records prepared or obtained under this subchapter 
shall be held confidential in the same manner and under the same 
conditions prescribed in section 7332 of this title. 
(Added Pub. L. 93-82, title I, Sec. 109(a), Aug. 2, 1973, 87 
Stat. 187, Sec. 653; 
amended Pub. L. 94-581, title I, Sec. 111(b), Oct. 21, 1976, 90 
Stat. 2852; Pub. L. 
102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 1753, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1754. Reports 

The Secretary shall include in the annual report to the Congress 
required by section 529 of this title a comprehensive report 


223 CH. 17-MEDICAL CARE Sec. 1781 

on the administration of this subchapter, including such 
recommendations for additional legislation as the Secretary deems 
necessary. 

(Added Pub. L. 93-82, title I, Sec. 109(a), Aug. 2, 1973, 87 Stat. 
187, Sec. 654; renumbered Sec. 1754 and amended Pub. L. 102-83, 
Sec. 2(c)(3), 4(b)(1), (2)(E), 5(a), 
Aug. 6, 1991, 105 Stat. 402, 404-406.) 

ï¿½ï¿½ 1761 to 1764. Repealed. Pub. L. 102-585, title V, Sec. 
514(a), Nov. 4, 1992, 106 Stat. 4958ï¿½ 

SUBCHAPTER VII-TRANSFERRED 

ï¿½ï¿½ï¿½ 1771 to 1774. Renumbered ï¿½ï¿½ 2031 to 2034ï¿½ 

SUBCHAPTER VIII-HEALTH CARE OF PERSONS OTHER 
THAN VETERANS 


ï¿½ 1781. Medical care for survivors and dependents of certain 
veterans 

(a) The Secretary is authorized to provide medical care, in accordance 
with the provisions of subsection (b) of this section, for- 
(1) the spouse or child of a veteran who has a total disability, 
permanent in nature, resulting from a service-connected disability, 
(2) the surviving spouse or child of a veteran who (A) died 
as a result of a service-connected disability, or (B) at the time 
of death had a total disability permanent in nature, resulting 
from a service-connected disability, and 
(3) the surviving spouse or child of a person who died in 
the active military, naval, or air service in the line of duty and 
not due to such personï¿½s own misconduct, 
who are not otherwise eligible for medical care under chapter 55 
of title 10 (CHAMPUS). 

(b) In order to accomplish the purposes of subsection (a) of this 
section, the Secretary shall provide for medical care in the same or 
similar manner and subject to the same or similar limitations as 
medical care is furnished to certain dependents and survivors of active 
duty and retired members of the Armed Forces under chapter 
55 of title 10 (CHAMPUS), by- 
(1) entering into an agreement with the Secretary of Defense under 
which that Secretary shall include coverage for 
such medical care under the contract, or contracts, that Secretary 
enters into to carry out such chapter 55, and under 
which the Secretary of Veterans Affairs shall fully reimburse 
the Secretary of Defense for all costs and expenditures made 
for the purposes of affording the medical care authorized pursuant to 
this section; or 
(2) contracting in accordance with such regulations as the 
Secretary shall prescribe for such insurance, medical service, 
or health plans as the Secretary deems appropriate. 
In cases in which Department medical facilities are equipped to 
provide the care and treatment, the Secretary is also authorized to 
carry out such purposes through the use of such facilities not being 
utilized for the care of eligible veterans. A dependent or survivor 
receiving care under the preceding sentence shall be eligible for the 


Sec. 1781 CH. 17-MEDICAL CARE 224 

same medical services as a veteran, including services under sections 
1782 and 1783 of this title. 

(c) For the purposes of this section, a child between the ages 
of eighteen and twenty-three (1) who is eligible for benefits under 
subsection (a) of this section, (2) who is pursuing a full-time course 
of instruction at an educational institution approved under chapter 
36 of this title, and (3) who, while pursuing such course of 
instruction, incurs a disabling illness or injury (including a 
disabling illness or injury incurred between terms, semesters, or 
quarters or 
during a vacation or holiday period) which is not the result of such 
childï¿½s own willful misconduct and which results in such childï¿½s 
inability to continue or resume such childï¿½s chosen program of 
education at an approved educational institution shall remain eligible 
for benefits under this section until the end of the six-month period 
beginning on the date the disability is removed, the end of the two-
year period beginning on the date of the onset of the disability, or 
the twenty-third birthday of the child, whichever occurs first. 
(d)(1)(A) An individual otherwise eligible for medical care 
under this section who is also entitled to hospital insurance benefits 
under part A of the medicare program is eligible for medical 
care under this section only if the individual is also enrolled in the 
supplementary medical insurance program under part B of the 
medicare program. 

(B) The limitation in subparagraph (A) does not apply to an individual 
who- 
(i) has attained 65 years of age as of June 5, 2001; and 
(ii) is not enrolled in the supplementary medical insurance 
program under part B of the medicare program as of that date. 
(2) Subject to paragraph (3), if an individual described in paragraph 
(1) receives medical care for which payment may be made 
under both this section and the medicare program, the amount 
payable for such medical care under this section shall be the 
amount by which (A) the costs for such medical care exceed (B) the 
sum of- 
(i) the amount payable for such medical care under the 
medicare program; and 
(ii) the total amount paid or payable for such medical care 
by third party payers other than the medicare program. 
(3) The amount payable under this subsection for medical care 
may not exceed the total amount that would be paid under subsection
(b) if payment for such medical care were made solely 
under subsection (b). 
(4) In this subsection: 
(A) The term ï¿½ï¿½medicare programï¿½ï¿½ means the program of 
health insurance administered by the Secretary of Health and 
Human Services under title XVIII of the Social Security Act 
(42 U.S.C. 1395 et seq.). 
(B) The term ï¿½ï¿½third partyï¿½ï¿½ has the meaning given that 
term in section 1729(i)(3) of this title. 
(Added Pub. L. 93-82, title I, Sec. 103(b), Aug. 2, 1973, 87 
Stat. 181, Sec. 613; 
amended Pub. L. 94-581, title I, Sec. 104, title II, Sec. 
210(a)(4), Oct. 21, 1976, 90 
Stat. 2845, 2862; Pub. L. 96-151, title II, Sec. 205(a), Dec. 
20, 1979, 93 Stat. 1094; 
Pub. L. 97-72, title I, Sec. 105, Nov. 3, 1981, 95 Stat. 1050; 
Pub. L. 97-251, Sec. 
5(a), Sept. 8, 1982, 96 Stat. 716; renumbered Sec. 1713 and 
amended Pub. L. 102- 
83, Sec. 4(a)(3), (4), (b)(1), (2)(B), (E), 5(a), Aug. 6, 1991, 
105 Stat. 404-406; Pub. 


225 CH. 17-MEDICAL CARE Sec. 1783 

L. 102-190, title VII, Sec. 704(b)(2), Dec. 5, 1991, 105 Stat. 
1402; Pub. L. 107-14, 
Sec. 3, June 5, 2001, 115 Stat. 25; renumbered Sec. 1781 and 
amended Pub. L. 107- 
135, title II, Sec. 208(c), Jan. 23, 2002, 115 Stat. 2463; 
Pub. L. 107-330, title III, 
Sec. 308(g)(8), Dec. 6, 2002, 116 Stat. 2829.) 
ï¿½ 1782. Counseling, training, and mental health services for 
immediate family members 

(a) COUNSELING FOR FAMILY MEMBERS OF VETERANS RECEIVING SERVICE-
CONNECTED TREATMENT.-In the case of a veteran 
who is receiving treatment for a service-connected disability 
pursuant to paragraph (1) or (2) of section 1710(a) of this 
title, the Secretary shall provide to individuals described in 
subsection (c) such 
consultation, professional counseling, marriage and family 
counseling, training, and mental health services as are necessary in 
connection with that treatment. 
(b) COUNSELING FOR FAMILY MEMBERS OF VETERANS RECEIVING NON-SERVICE-
CONNECTED TREATMENT.-In the case of a veteran who is eligible to 
receive treatment for a non-service-connected disability under the 
conditions described in paragraph (1), 
(2), or (3) of section 1710(a) of this title, the Secretary may, in 
the 
discretion of the Secretary, provide to individuals described in 
subsection (c) such consultation, professional counseling, marriage 
and 
family counseling, training, and mental health services as are
necessary in connection with that treatment. 
(c) ELIGIBLE INDIVIDUALS.-Individuals who may be provided 
services under this subsection are- 
(1) the members of the immediate family or the legal 
guardian of a veteran; or 
(2) the individual in whose household such veteran certifies an 
intention to live. 
(d) TRAVEL AND TRANSPORTATION AUTHORIZED.-Services provided under 
subsections (a) and (b) may include, under the terms 
and conditions set forth in section 111 of this title, travel and 
incidental expenses of individuals described in subsection (c) in the 
case of any of the following: 
(1) A veteran who is receiving care for a service-connected 
disability. 
(2) A dependent or survivor receiving care under the last 
sentence of section 1783(b) of this title. 
(Added Pub. L. 107-135, title II, Sec. 208(b), Jan. 23, 2002, 115 
Stat. 2462; amended 
Pub. L. 110-387, title III, Sec. 301(a)(2), Oct. 10, 2008, 122 
Stat. 4120.) 

ï¿½ 1783. Bereavement counseling 

(a) DEATHS OF VETERANS.-In the case of an individual who 
was a recipient of services under section 1782 of this title at the 
time of the death of the veteran, the Secretary may provide bereavement 
counseling to that individual in the case of a death- 
(1) that was unexpected; or 
(2) that occurred while the veteran was participating in a 
hospice program (or a similar program) conducted by the Secretary. 
(b) DEATHS IN ACTIVE SERVICE.-(1) The Secretary may provide bereavement 
counseling to an individual who is a member of 
the immediate family of a member of the Armed Forces who dies 

Sec. 1784 CH. 17-MEDICAL CARE 226 

in the active military, naval, or air service in the line of duty and 
under circumstances not due to the personï¿½s own misconduct. 

(2) For purposes of this subsection, the members of the immediate family 
of a member of the Armed Forces described in paragraph (1) include the 
parents of such member. 
(c) PROVISION OF COUNSELING THROUGH VET CENTERS.-Bereavement counseling 
may be provided under this section through 
the facilities and personnel of centers for the provision of 
readjustment counseling and related mental health services under section 
1712A of this title. 
(d) BEREAVEMENT COUNSELING DEFINED.-For purposes of this 
section, the term ï¿½ï¿½bereavement counselingï¿½ï¿½ means such counseling 
services, for a limited period, as the Secretary determines to be 
reasonable and necessary to assist an individual with the emotional and 
psychological stress accompanying the death of another 
individual. 
(Added Pub. L. 107-135, title II, Sec. 208(b), Jan. 23, 2002, 115 Stat. 
2463; amended 
Pub. L. 109-461, title II, Sec. 216, Dec. 22, 2006, 120 Stat. 3424.) 

ï¿½ 1784. Humanitarian care 

The Secretary may furnish hospital care or medical services as 
a humanitarian service in emergency cases, but the Secretary shall 
charge for such care and services at rates prescribed by the Secretary. 

(Added Pub. L. 107-135, title II, Sec. 208(b), Jan. 23, 2002, 115 Stat. 
2463.) 

ï¿½ 1785. Care and services during certain disasters and emergencies 

(a) AUTHORITY TO PROVIDE HOSPITAL CARE AND MEDICAL 
SERVICES.-During and immediately following a disaster or emergency 
referred to in subsection (b), the Secretary may furnish hospital care 
and medical services to individuals responding to, involved in, or 
otherwise affected by that disaster or emergency. 
(b) COVERED DISASTERS AND EMERGENCIES.-A disaster or 
emergency referred to in this subsection is any disaster or emergency 
as follows: 
(1) A major disaster or emergency declared by the President under the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.). 
(2) A disaster or emergency in which the National Disaster 
Medical System established pursuant to section 2811(b) of the 
Public Health Service Act (42 U.S.C. 300hh-11(b)) is activated 
by the Secretary of Health and Human Services under paragraph (3)(A) 
of that section or as otherwise authorized by law. 
(c) APPLICABILITY TO ELIGIBLE INDIVIDUALS WHO ARE VETERANS.-The 
Secretary may furnish care and services under this 
section to an individual described in subsection (a) who is a veteran 
without regard to whether that individual is enrolled in the system 
of patient enrollment under section 1705 of this title. 
(d) REIMBURSEMENT FROM OTHER FEDERAL DEPARTMENTS AND 
AGENCIES.-(1) The cost of any care or services furnished under 
this section to an officer or employee of a department or agency of 
the United States other than the Department or to a member of 
the Armed Forces shall be reimbursed at such rates as may be 

227 CH. 17-MEDICAL CARE Sec. 1785 

agreed upon by the Secretary and the head of such department or 
agency or the Secretary concerned, in the case of a member of the 
Armed Forces, based on the cost of the care or service furnished. 

(2) Amounts received by the Department under this subsection 
shall be credited to the Medical Care Collections Fund under section 
1729A of this title. 
(e) REPORT TO CONGRESSIONAL COMMITTEES.-Within 60 days 
of the commencement of a disaster or emergency referred to in 
subsection (b) in which the Secretary furnishes care and services 
under this section (or as soon thereafter as is practicable), the 
Secretary shall submit to the Committees on Veteransï¿½ Affairs of the 
Senate and the House of Representatives a report on the Secretaryï¿½s 
allocation of facilities and personnel in order to furnish 
such care and services. 
(f) REGULATIONS.-The Secretary shall prescribe regulations 
governing the exercise of the authority of the Secretary under this 
section. 
(Added Pub. L. 107-287, Sec. 4(a)(1), Nov. 7, 2002, 116 Stat. 2028; 
amended Pub. 

L. 109-444, Sec. 8(a)(2), Dec. 21, 2006, 120 Stat. 3313; Pub. L. 
109-461, title X, 
Secs. 1004(a)(2), 1006(b), Dec. 22, 2006, 120 Stat. 3465, 3468.) 

CHAPTER 18 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


229 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½ 

CHAPTER 18-BENEFITS FOR CHILDREN OF VIETNAM 
VETERANS AND CERTAIN OTHER VETERANS 

Sec. 
[1801. Repealed.] 

SUBCHAPTER I-CHILDREN OF VIETNAM VETERANS BORN WITH SPINA 

BIFIDA 
1802. 
1803. 
Spina bifida conditions cHealth care. 
overed. 
1804. 
1805. 
1806. 
Vocational training and rehabilitation. 
Monetary allowance. 
Repealed.]. 

SUBCHAPTER II-CHILDREN OF WOMEN VIETNAM VETERANS BORN WITH 
CERTAIN BIRTH DEFECTS 

1811. Definitions. 
1812. Covered birth defects. 
1813. Health care. 
1814. Vocational training. 
1815. Monetary allowance. 
1816. Regulations. 

SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS 
BORN WITH SPINA BIFIDA 

1821. Benefits for children of certain Korea service veterans born 
with spina 
bifida. 
[1822. Renumbered.] 

SUBCHAPTER IV-GENERAL PROVISIONS 

1831. Definitions. 
1832. Applicability of certain administrative provisions. 
1833. Treatment of receipt of monetary allowance and other benefits. 
1834. Nonduplication of benefits.


ï¿½ï¿½ 1801. Repealed. Pub. L. 106-419, title IV, Sec. 401(c)(1), 
Nov. 1, 2000, 114 Stat. 1860ï¿½ 

SUBCHAPTER I-CHILDREN OF VIETNAM VETERANS BORN 
WITH SPINA BIFIDA 

ï¿½ 1802. Spina bifida conditions covered 

This subchapter applies with respect to all forms and manifestations of 
spina bifida except spina bifida occulta. 

(Added Pub. L. 104-201, title IV, Sec. 421(b), Sept. 26, 1996, 110 
Stat. 2923; amended Pub. L. 106-419, title IV, Sec. 401(e)(1), Nov. 1, 
2000, 114 Stat. 1860; Pub. L. 
107-14, Sec. 8(b)(3), June 5, 2001, 115 Stat. 36.) 

231 


Sec. 1803 CH. 18-CHILDREN OF VIETNAM VETERANS 232 

ï¿½ 1803. Health care 

(a) In accordance with regulations which the Secretary shall 
prescribe, the Secretary shall provide a child of a Vietnam veteran 
who is suffering from spina bifida with health care under this section. 
(b) The Secretary may provide health care under this section 
directly or by contract or other arrangement with any health care 
provider. 
(c) For the purposes of this section- 
(1) The term ï¿½ï¿½health careï¿½ï¿½- 
(A) means home care, hospital care, nursing home 
care, outpatient care, preventive care, habilitative and rehabilitative 
care, case management, and respite care; and 
(B) includes- 
(i) the training of appropriate members of a childï¿½s 
family or household in the care of the child; and 
(ii) the provision of such pharmaceuticals, supplies, equipment,
devices, appliances, assistive technology, direct transportation costs 
to and from approved sources of health care, and other materials as 
the Secretary determines necessary. 
(2) The term ï¿½ï¿½health care providerï¿½ï¿½ includes specialized 
spina bifida clinics, health care plans, insurers, organizations, 
institutions, and any other entity or individual furnishing 
health care services that the Secretary determines are authorized under 
this section. 
(3) The term ï¿½ï¿½home careï¿½ï¿½ means outpatient care, 
habilitative and rehabilitative care, preventive health services, 
and health-related services furnished to an individual in the 
individualï¿½s home or other place of residence. 
(4) The term ï¿½ï¿½hospital careï¿½ï¿½ means care and treatment for 
a disability furnished to an individual who has been admitted 
to a hospital as a patient. 
(5) The term ï¿½ï¿½nursing home careï¿½ï¿½ means care and treatment for a 
disability furnished to an individual who has been 
admitted to a nursing home as a resident. 
(6) The term ï¿½ï¿½outpatient careï¿½ï¿½ means care and treatment 
of a disability, and preventive health services, furnished to an 
individual other than hospital care or nursing home care. 
(7) The term ï¿½ï¿½preventive careï¿½ï¿½ means care and treatment 
furnished to prevent disability or illness, including periodic 
examinations, immunizations, patient health education, and such 
other services as the Secretary determines necessary to provide 
effective and economical preventive health care. 
(8) The term ï¿½ï¿½habilitative and rehabilitative careï¿½ï¿½ means 
such professional, counseling, and guidance services and treatment 
programs (other than vocational training under section 
1804 of this title) as are necessary to develop, maintain, or 
restore, to the maximum extent practicable, the functioning of a 
disabled person. 
(9) The term ï¿½ï¿½respite careï¿½ï¿½ means care furnished on an 
intermittent basis for a limited period to an individual who re

233 CH. 18-CHILDREN OF VIETNAM VETERANS Sec. 1804 

sides primarily in a private residence when such care will help 
the individual to continue residing in such private residence. 

(Added Pub. L. 104-204, title IV, Sec. 421(b)(1), Sept. 26, 1996, 
110 Stat. 2923; 
amended Pub. L. 105-368, title X, Sec. 1005(b)(4), Nov. 11, 1998, 
112 Stat. 3365; 
Pub. L. 110-387, title IV, Sec. 408(a), Oct. 10, 2008, 122 Stat. 
4130.) 

ï¿½ 1804. Vocational training and rehabilitation 

(a) Pursuant to such regulations as the Secretary may prescribe, 
the Secretary may provide vocational training under this 
section to a child of a Vietnam veteran who is suffering from spina 
bifida if the Secretary determines that the achievement of a 
vocational goal by such child is reasonably feasible. 
(b) Any program of vocational training for a child under this 
section shall- 
(1) be designed in consultation with the child in order to 
meet the childï¿½s individual needs; 
(2) be set forth in an individualized written plan of vocational 
rehabilitation; and 
(3) be designed and developed before the date specified in 
subsection (d)(3) so as to permit the beginning of the program 
as of the date specified in that subsection. 
(c)(1) A vocational training program for a child under this sec
tion- 

(A) shall consist of such vocationally oriented services and 
assistance, including such placement and post-placement services and 
personal and work adjustment training, as the Secretary determines 
are necessary to enable the child to prepare 
for and participate in vocational training or employment; and 
(B) may include a program of education at an institution 
of higher learning if the Secretary determines that the program of 
education is predominantly vocational in content. 
(2) A vocational training program under this section may not 
include the provision of any loan or subsistence allowance or any 
automobile adaptive equipment. 
(d)(1) Except as provided in paragraph (2) and subject to subsection 
(e)(2), a vocational training program under this section may 
not exceed 24 months. 

(2) The Secretary may grant an extension of a vocational training 
program for a child under this section for up to 24 additional 
months if the Secretary determines that the extension is necessary 
in order for the child to achieve a vocational goal identified (before 
the end of the first 24 months of such program) in the written plan 
of vocational rehabilitation formulated for the child pursuant to 
subsection (b). 
(3) A vocational training program under this section may begin 
on the childï¿½s 18th birthday, or on the successful completion of the 
childï¿½s secondary schooling, whichever first occurs, except that, if 
the child is above the age of compulsory school attendance under 
applicable State law and the Secretary determines that the childï¿½s 
best interests will be served thereby, the vocational training program 
may begin before the childï¿½s 18th birthday. 
(e)(1) A child who is pursuing a program of vocational training 
under this section and is also eligible for assistance under a program 
under chapter 35 of this title may not receive assistance 


Sec. 1805 CH. 18-CHILDREN OF VIETNAM VETERANS 234 

under both such programs concurrently. The child shall elect (in 
such form and manner as the Secretary may prescribe) the program under 
which the child is to receive assistance. 

(2) The aggregate period for which a child may receive assistance under 
this section and chapter 35 of this title may not exceed 
48 months (or the part-time equivalent thereof). 
(Added Pub. L. 104-204, title IV, Sec. 421(b)(1), Sept. 26, 1996, 110 
Stat. 2924; 
amended Pub. L. 105-114, title IV, Sec. 404(c), Nov. 21, 1997, 111
Stat. 2295; Pub. 

L. 108-183, title VII, Sec. 708(a)(3), Dec. 16, 2003, 117 Stat. 2673.) 
ï¿½ 1805. Monetary allowance 

(a) The Secretary shall pay a monthly allowance under this 
section to any child of a Vietnam veteran for any disability resulting 
from spina bifida suffered by such child. 
(b)(1) The amount of the allowance paid to a child under this 
section shall be based on the degree of disability suffered by the 
child, as determined in accordance with such schedule for rating 
disabilities resulting from spina bifida as the Secretary may prescribe. 

(2) The Secretary shall, in prescribing the rating schedule for 
the purposes of this section, establish three levels of disability upon 
which the amount of the allowance provided by this section shall 
be based. 
(3) The amounts of the allowance shall be $200 per month for 
the lowest level of disability prescribed, $700 per month for the 
intermediate level of disability prescribed, and $1,200 per month for 
the highest level of disability prescribed. Such amounts are subject 
to adjustment under section 5312 of this title. 
(Added Pub. L. 104-204, title IV, Sec. 421(b)(1), Sept. 26, 1996, 110 
Stat. 2925; 
amended Pub. L. 106-419, title IV, Sec. 401(c)(2), (e)(2), Nov. 1, 
2000, 114 Stat. 
1860.) 

ï¿½ï¿½ 1806. Repealed. Pub. L. 106-419, title IV, Sec. 401(c)(3), 
Nov. 1, 2000, 114 Stat. 1860ï¿½ 

SUBCHAPTER II-CHILDREN OF WOMEN VIETNAM 
VETERANS BORN WITH CERTAIN BIRTH DEFECTS 


ï¿½ 1811. Definitions 

In this subchapter: 

(1) The term ï¿½ï¿½eligible childï¿½ï¿½ means an individual who- 
(A) is the child (as defined in section 1821(1) of this 
title) of a woman Vietnam veteran; and 
(B) was born with one or more covered birth defects. 
(2) The term ï¿½ï¿½covered birth defectï¿½ï¿½ means a birth defect 
identified by the Secretary under section 1812 of this title. 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 
Stat. 1857; amended 
Pub. L. 108-183, title I, Sec. 102(d)(1), Dec. 16, 2003, 117 Stat. 
2654.) 

ï¿½ 1812. Covered birth defects 

(a) IDENTIFICATION.-The Secretary shall identify the birth defects of 
children of women Vietnam veterans that- 
(1) are associated with the service of those veterans in the 
Republic of Vietnam during the Vietnam era; and 
(2) result in permanent physical or mental disability. 

235 CH. 18-CHILDREN OF VIETNAM VETERANS Sec. 1815 

(b) LIMITATIONS.-(1) The birth defects identified under subsection (a) 
may not include birth defects resulting from the following: 
(A) A familial disorder. 
(B) A birth-related injury. 
(C) A fetal or neonatal infirmity with well-established 
causes. 
(2) In any case where affirmative evidence establishes that a 
covered birth defect of a child of a woman Vietnam veteran results 
from a cause other than the active military, naval, or air service 
of that veteran in the Republic of Vietnam during the Vietnam era, 
no benefits or assistance may be provided the child under this 
subchapter. 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 
Stat. 1857.) 

ï¿½ 1813. Health care 

(a) NEEDED CARE.-The Secretary shall provide an eligible 
child such health care as the Secretary determines is needed by the 
child for that childï¿½s covered birth defects or any disability that is 
associated with those birth defects. 
(b) AUTHORITY FOR CARE TO BE PROVIDED DIRECTLY OR BY 
CONTRACT.-The Secretary may provide health care under this section 
directly or by contract or other arrangement with a health care 
provider. 
(c) DEFINITIONS.-For purposes of this section, the definitions 
in section 1803(c) of this title shall apply with respect to the 
provision of health care under this section, except that for such 
purposes- (1) the reference to ï¿½ï¿½specialized spina bifida clinicï¿½ï¿½ in 
paragraph 
(2) of that section shall be treated as a reference to a 
specialized clinic treating the birth defect concerned under this 
section; and 
(2) the reference to ï¿½ï¿½vocational training under section 1804 
of this titleï¿½ï¿½ in paragraph (8) of that section shall be treated 
as a reference to vocational training under section 1814 of this 
title. 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 
Stat. 1857.) 

ï¿½ 1814. Vocational training 

(a) AUTHORITY.-The Secretary may provide a program of vocational 
training to an eligible child if the Secretary determines that 
the achievement of a vocational goal by the child is reasonably 
feasible. 
(b) APPLICABLE PROVISIONS.-Subsections (b) through (e) of 
section 1804 of this title shall apply with respect to any program 
of vocational training provided under subsection (a). 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 
Stat. 1858.) 

ï¿½ 1815. Monetary allowance 

(a) MONETARY ALLOWANCE.-The Secretary shall pay a monthly allowance 
to any eligible child for any disability resulting from 
the covered birth defects of that child. 

Sec. 1816 CH. 18-CHILDREN OF VIETNAM VETERANS 236 

(b) SCHEDULE FOR RATING DISABILITIES.-(1) The amount of 
the monthly allowance paid under this section shall be based on 
the degree of disability suffered by the child concerned, as determined 
in accordance with a schedule for rating disabilities resulting from 
covered birth defects that is prescribed by the Secretary. 
(2) In prescribing a schedule for rating disabilities for the purposes 
of this section, the Secretary shall establish four levels of 
disability upon which the amount of the allowance provided by this 
section shall be based. The levels of disability established may take 
into account functional limitations, including limitations on 
cognition, communication, motor abilities, activities of daily 
living, and 
employability. 
(c) AMOUNT OF MONTHLY ALLOWANCE.-The amount of the 
monthly allowance paid under this section shall be as follows: 
(1) In the case of a child suffering from the lowest level of 
disability prescribed in the schedule for rating disabilities 
under subsection (b), $100. 
(2) In the case of a child suffering from the lower intermediate level 
of disability prescribed in the schedule for rating 
disabilities under subsection (b), the greater of- 
(A) $214; or 
(B) the monthly amount payable under section 
1805(b)(3) of this title for the lowest level of disability prescribed 
for purposes of that section. 
(3) In the case of a child suffering from the higher intermediate level 
of disability prescribed in the schedule for rating 
disabilities under subsection (b), the greater of- 
(A) $743; or 
(B) the monthly amount payable under section 
1805(b)(3) of this title for the intermediate level of disability 
prescribed for purposes of that section. 
(4) In the case of a child suffering from the highest level 
of disability prescribed in the schedule for rating disabilities 
under subsection (b), the greater of- 
(A) $1,272; or 
(B) the monthly amount payable under section 
1805(b)(3) of this title for the highest level of disability 
prescribed for purposes of that section. 
(d) INDEXING TO SOCIAL SECURITY BENEFIT INCREASES.- 
Amounts under paragraphs (1), (2)(A), (3)(A), and (4)(A) of subsection 
(c) shall be subject to adjustment from time to time under 
section 5312 of this title. 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 Stat. 
1858.) 

ï¿½ 1816. Regulations 

The Secretary shall prescribe regulations for purposes of the 
administration of this subchapter. 
(Added Pub. L. 106-419, title IV, Sec. 401(a), Nov. 1, 2000, 114 Stat. 
1859.) 


237 CH. 18-CHILDREN OF VIETNAM VETERANS Sec. 1831 

SUBCHAPTER III-CHILDREN OF CERTAIN KOREA SERVICE 
VETERANS BORN WITH SPINA BIFIDA 

ï¿½ 1821. Benefits for children of certain Korea service veterans born 
with spina bifida 

(a) BENEFITS AUTHORIZED.-The Secretary may provide to any 
child of a veteran of covered service in Korea who is suffering from 
spina bifida the health care, vocational training and rehabilitation, 
and monetary allowance required to be paid to a child of a Vietnam 
veteran who is suffering from spina bifida under subchapter I of 
this chapter as if such child of a veteran of covered service in Korea 
were a child of a Vietnam veteran who is suffering from spina 
bifida under such subchapter. 
(b) SPINA BIFIDA CONDITIONS COVERED.-This section applies 
with respect to all forms and manifestations of spina bifida, except 
spina bifida occulta. 
(c) VETERAN OF COVERED SERVICE IN KOREA.-For purposes of 
this section, a veteran of covered service in Korea is any individual, 
without regard to the characterization of that individualï¿½s service, 
who- 
(1) served in the active military, naval, or air service in or 
near the Korean demilitarized zone (DMZ), as determined by 
the Secretary in consultation with the Secretary of Defense, 
during the period beginning on September 1, 1967, and ending 
on August 31, 1971; and 
(2) is determined by the Secretary, in consultation with 
the Secretary of Defense, to have been exposed to a herbicide 
agent during such service in or near the Korean demilitarized 
zone. 
(d) HERBICIDE AGENT.-For purposes of this section, the term 
ï¿½ï¿½herbicide agentï¿½ï¿½ means a chemical in a herbicide used in support 
of United States and allied military operations in or near the Korean 
demilitarized zone, as determined by the Secretary in consultation with 
the Secretary of Defense, during the period beginning on September 1, 
1967, and ending on August 31, 1971. 
(Added Pub. L. 108-183, title I, Sec. 102(a)(2), Dec. 16, 2003, 117 
Stat. 2653.) 

SUBCHAPTER IV-GENERAL PROVISIONS 

ï¿½ 1831. Definitions 

In this chapter: 

(1) The term ï¿½ï¿½childï¿½ï¿½ means the following: 
(A) For purposes of subchapters I and II of this chapter, an 
individual, regardless of age or marital status, 
who- 
(i) is the natural child of a Vietnam veteran; and 
(ii) was conceived after the date on which that veteran first entered 
the Republic of Vietnam during the 
Vietnam era. 
(B) For purposes of subchapter III of this chapter, an 
individual, regardless of age or marital status, who- 
(i) is the natural child of a veteran of covered 
service in Korea (as determined for purposes of section 
1821 of this title); and 

Sec. 1832 CH. 18-CHILDREN OF VIETNAM VETERANS 238 

(ii) was conceived after the date on which that veteran first entered 
service described in subsection (c) of 
that section. 
(2) The term ï¿½ï¿½Vietnam veteranï¿½ï¿½ means an individual who 
performed active military, naval, or air service in the Republic 
of Vietnam during the Vietnam era, without regard to the 
characterization of that individualï¿½s service. 
(3) The term ï¿½ï¿½Vietnam eraï¿½ï¿½ with respect to- 
(A) subchapter I of this chapter, means the period beginning on January 
9, 1962, and ending on May 7, 1975; 
and 
(B) subchapter II of this chapter, means the period beginning on 
February 28, 1961, and ending on May 7, 1975. 
(Added Pub. L. 106-419, title IV, Sec. 401(b), Nov. 1, 2000, 114 Stat. 
1859, Sec. 
1821; renumbered Sec. 1831, and amended, Pub. L. 108-183, title I, 
Sec. 102(a)(1), 
(b), Dec. 16, 2003, 117 Stat. 2653, 2654.) 

ï¿½ 1832. Applicability of certain administrative provisions 

(a) APPLICABILITY OF CERTAIN PROVISIONS RELATING TO COMPENSATION.-The 
provisions of this title specified in subsection (b) 
apply with respect to benefits and assistance under this chapter in 
the same manner as those provisions apply to compensation paid 
under chapter 11 of this title. 
(b) SPECIFIED PROVISIONS.-The provisions of this title referred 
to in subsection (a) are the following: 
(1) Section 5101(c). 
(2) Subsections (a), (b)(2), (g), and (i) of section 5110. 
(3) Section 5111. 
(4) Subsection (a) and paragraphs (1), (6), (9), and (10) of 
subsection (b) of section 5112. 
(Added Pub. L. 106-419, title IV, Sec. 401(b), Nov. 1, 2000, 114 Stat. 
1859, Sec. 
1822; renumbered Sec. 1832, Pub. L. 108-183, title I, Sec. 102(a)(1), 
Dec. 16, 2003, 
117 Stat. 2653.) 

ï¿½ 1833. Treatment of receipt of monetary allowance and 
other benefits 

(a) COORDINATION WITH OTHER BENEFITS PAID TO THE RECIPIENT.-
Notwithstanding any other provision of law, receipt by an individual of 
a monetary allowance under this chapter shall not impair, infringe, or 
otherwise affect the right of the individual to receive any other 
benefit to which the individual is otherwise entitled 
under any law administered by the Secretary. 
(b) COORDINATION WITH BENEFITS BASED ON RELATIONSHIP OF 
RECIPIENTS.-Notwithstanding any other provision of law, receipt 
by an individual of a monetary allowance under this chapter shall 
not impair, infringe, or otherwise affect the right of any other 
individual to receive any benefit to which such other individual is 
entitled under any law administered by the Secretary based on the 
relationship of such other individual to the individual who receives 
such monetary allowance. 
(c) MONETARY ALLOWANCE NOT TO BE CONSIDERED AS INCOME 
OR RESOURCES FOR CERTAIN PURPOSES.-Notwithstanding any 
other provision of law, a monetary allowance paid an individual 
under this chapter shall not be considered as income or resources 

239 CH. 18-CHILDREN OF VIETNAM VETERANS Sec. 1834 

in determining eligibility for, or the amount of benefits under, any 
Federal or federally assisted program. 

(Added Pub. L. 106-419, title IV, Sec. 401(b), Nov. 1, 2000, 114 Stat. 
1860, Sec. 
1823; renumbered Sec. 1833, Pub. L. 108-183, title I, Sec. 102(a)(1), 
Dec. 16, 2003, 
117 Stat. 2653.) 

ï¿½ 1834. Nonduplication of benefits 

(a) MONETARY ALLOWANCE.-In the case of an eligible child 
under subchapter II of this chapter whose only covered birth defect 
is spina bifida, a monetary allowance shall be paid under subchapter I 
of this chapter. In the case of an eligible child under subchapter II 
of this chapter who has spina bifida and one or more additional covered 
birth defects, a monetary allowance shall be paid 
under subchapter II of this chapter. In the case of a child eligible 
for benefits under subchapter I or II of this chapter who is also 
eligible for benefits under subchapter III of this chapter, a monetary 
allowance shall be paid under the subchapter of this chapter elected by 
the child. 
(b) VOCATIONAL REHABILITATION.-An individual may only be 
provided one program of vocational training under this chapter. 
(Added Pub. L. 106-419, title IV, Sec. 401(b), Nov. 1, 2000, 114 Stat. 
1860, Sec. 
1824; renumbered Sec. 1834 and amended, Pub. L. 108-183, title I, Sec. 
102(a)(1), 
(c), Dec. 16, 2003, 117 Stat. 2653, 2654.) 


CHAPTER 19 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


241 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½ 

CHAPTER 19-INSURANCE 

SUBCHAPTER I-NATIONAL SERVICE LIFE INSURANCE 

Sec. 

1901. Definitions. 

1902. Premium rates and policy values. 

1903. Amount of insurance. 

1904. Plans of insurance. 

1905. Renewal. 

1906. Policy provisions. 

1907. Payment or use of dividends. 

1908. Premium payments. 

1909. Effective date of insurance. 

1910. Incontestability. 

1911. Forfeiture. 

1912. Total disability waiver. 

1913. Death before six monthsï¿½ total disability. 

1914. Statutory total disabilities. 

1915. Total disability income provision. 

1916. Insurance which matured before August 1, 1946. 

1917. Insurance maturing on or after August 1, 1946. 

1918. Assignments. 

1919. National Service Life Insurance appropriation. 

1920. National Service Life Insurance Fund. 

1921. Extra hazard costs. 

1922. Service disabled veteransï¿½ insurance. 

1922A. Supplemental service disabled veteransï¿½ insurance for totally 
disabled veterans. 

1923. Veteransï¿½ Special Life Insurance. 

1924. In-service waiver of premiums. 

1925. Limited period for acquiring insurance. 

1926. Authority for higher interest rates for amounts payable to 
beneficiaries. 

1927. Authority for higher monthly installments payable to certain 
annuitants. 

1928. Authority for payment of interest on settlements. 

1929. Authority to adjust premium discount rates. 

SUBCHAPTER II-UNITED STATES GOVERNMENT LIFE INSURANCE 

1940. Definition. 
1941. Amount of insurance. 
1942. Plans of insurance. 
1943. Premiums. 
1944. Policy provisions. 
1945. Renewal. 
1946. Dividends to pay premiums. 
1947. Incontestability. 
1948. Total disability provision. 
1949. Change of beneficiary. 
1950. Payment to estates. 
1951. Payment of insurance. 
1952. Optional settlement. 
1953. Assignments. 
1954. Forfeiture. 
1955. United States Government Life Insurance Fund. 


243 


Sec. 1901 CH. 19-INSURANCE 244 

1956. Military and naval insurance appropriation. 
1957. Extra hazard costs. 
1958. Statutory total permanent disability. 
1959. Waiver of disability for reinstatement. 
1960. Waiver of premium payments on due date. 
1961. Authority for higher interest rates for amounts payable to 
beneficiaries. 
1962. Authority for higher monthly installments payable to certain 
annuitants. 
1963. Authority for payment of interest on settlements. 


SUBCHAPTER III-SERVICEMEMBERSï¿½ GROUP LIFE INSURANCE 

1965. Definitions. 
1966. Eligible insurance companies. 
1967. Persons insured; amount. 
1968. Duration and termination of coverage; conversion. 
1969. Deductions; payment; investment; expenses. 
1970. Beneficiaries; payment of insurance. 
1971. Basic tables of premiums; readjustment of rates. 
1972. Benefit certificates. 
1973. Forfeiture. 
1974. Advisory Council on Servicemembersï¿½ Group Life Insurance. 
1975. Jurisdiction of District Courts. 
1976. Effective date. 
1977. Veteransï¿½ Group Life Insurance. 
1978. Reinstatement. 
1979. Incontestability. 
1980. Option to receive accelerated death benefit. 
1980A. Traumatic injury protection. 


SUBCHAPTER IV-GENERAL 

1981. Replacement of surrendered and expired insurance. 
1982. Administrative cost. 
1983. Settlements for minors or incompetents. 
1984. Suits on insurance. 
1985. Decisions by the Secretary. 
1986. Deposits in and disbursements from trust funds. 
1987. Penalties. 
1988. Savings provision.


SUBCHAPTER I-NATIONAL SERVICE LIFE INSURANCE 

ï¿½ 1901. Definitions 

For the purposes of this subchapter- 

(1) The term ï¿½ï¿½insuranceï¿½ï¿½ means National Service Life Insurance. 
(2) The terms ï¿½ï¿½widowï¿½ï¿½ or ï¿½ï¿½widowerï¿½ï¿½ mean a person who was 
the lawful spouse of the insured at the maturity of the insurance. 
(3) The term ï¿½ï¿½childï¿½ï¿½ means a legitimate child, an adopted child, 
and, if designated as beneficiary by the insured, a stepchild or an 
illegitimate child. 
(4) The terms ï¿½ï¿½parentï¿½ï¿½, ï¿½ï¿½fatherï¿½ï¿½, and ï¿½ï¿½motherï¿½ï¿½ mean a father, 
mother, father through adoption, mother through adoption, persons 
who have stood in loco parentis to a member of the military or 
naval forces at any time before entry into active service for a period 
of not less than one year, and a stepparent, if designated as 
beneficiary by the insured. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 701; renumbered 
Sec. 1901, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1902. Premium rates and policy values 

Premium rates for insurance shall be the net rates based upon 
the American Experience Table of Mortality and interest at the 


245 CH. 19-INSURANCE Sec. 1904 

rate of 3 per centum per annum. All cash, loan, paid-up, and extended 
values, and all other calculations in connection with insurance, shall 
be based upon said American Experience Table of Mortality and interest 
at the rate of 3 per centum per annum. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 702; renumbered 
Sec. 1902, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1903. Amount of insurance 

Insurance shall be issued in any multiple of $500 and the 
amount of insurance with respect to any one person shall be not 
less than $1,000 or more than $10,000. No person may carry a combined 
amount of National Service Life Insurance and United States 
Government life insurance in excess of $10,000 at any one time. 
The limitations of this section shall not apply to the additional paid 
up insurance the purchase of which is authorized under section 
1907 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 703; Pub. L. 92-188, 
Sec. 1, Dec. 
15, 1971, 85 Stat. 645; renumbered Sec. 1903 and amended Pub. L. 102-83, 
Sec. 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1904. Plans of insurance 

(a) Insurance may be issued on the following plans: Five-year 
level premium term, ordinary life, twenty-payment life, thirty-payment 
life, twenty-year endowment, endowment at age sixty, and 
endowment at age sixty-five. Level premium term insurance may 
be converted as of the date when any premium becomes or has become due, 
or exchanged as of the date of the original policy, upon 
payment of the difference in reserve, at any time while such insurance 
is in force and within the term period to any of the foregoing 
permanent plans of insurance, except that conversion to an endowment 
plan may not be made while the insured is totally disabled. 
(b) Under such regulations as the Secretary may promulgate a 
policy of participating insurance may be converted to or exchanged 
for insurance issued under this subsection on a modified life plan. 
Insurance issued under this subsection shall be on the same terms 
and conditions as the insurance which it replaces, except (1) the 
premium rates for such insurance shall be based on the 1958 
Commissioners Standard Ordinary Basic Table of Mortality and interest 
at the rate of 3 per centum per annum; (2) all cash, loan, paid-
up, and extended values shall be based on the 1958 Commissioners 
Standard Ordinary Basic Table of Mortality and interest at the 
rate of 3 per centum per annum; and (3) at the end of the day preceding 
the sixty-fifth birthday of the insured the face value of the 
modified life insurance policy or the amount of extended term insurance 
thereunder shall be automatically reduced by one-half 
thereof, without any reduction in premium. 
(c) Under such regulations as the Secretary may promulgate, 
a policy of nonparticipating insurance may be converted to or exchanged 
for insurance issued under this subsection on a modified 
life plan. Insurance issued under this subsection shall be on the 
same terms and conditions as the insurance which it replaces, except 
that (1) term insurance issued under section 621 of the National 
Service Life Insurance Act of 1940 shall be deemed for the 
purposes of this subsection to have been issued under section 

Sec. 1904 CH. 19-INSURANCE 246 

1923(b) of this title; and (2) at the end of the day preceding the 
sixty-fifth birthday of the insured the face value of the modified life 
insurance policy or the amount of extended term insurance thereunder 
shall be automatically reduced by one-half thereof, without 
any reduction in premium. Any person eligible for insurance under 
section 1922(a), or section 1925 of this title may be granted a 
modified life insurance policy under this subsection which, subject 
to exception (2) above, shall be issued on the same terms and conditions 
specified in section 1922(a) or section 1925, whichever is applicable. 

(d) Any insured whose modified life insurance policy is in force 
by payment or waiver of premiums on the day before the insuredï¿½s 
sixty-fifth birthday may upon written application and payment of 
premiums made before such birthday be granted National Service 
Life Insurance, on an ordinary life plan, without physical examination, 
in an amount of not less than $500, in multiples of $250, but 
not in excess of one-half of the face amount of the modified life 
insurance policy in force on the day before the insuredï¿½s sixty-fifth 
birthday. Insurance issued under this subsection shall be effective 
on the sixty-fifth birthday of the insured. The premium rate, cash, 
loan, paid-up, and extended values on the ordinary life insurance 
issued under this subsection shall be based on the same mortality 
tables and interest rates as the insurance issued under the modified 
life policy. Settlements on policies involving annuities on insurance 
issued under this subsection shall be based on the same mortality or 
annuity tables and interest rates as such settlements on 
the modified life policy. If the insured is totally disabled on the day 
before the insuredï¿½s sixty-fifth birthday and premiums on the insuredï¿½s 
modified life insurance policy are being waived under section 1912 of 
this title or the insured is entitled on that date to 
waiver under such section the insured shall be automatically granted the 
maximum amount of insurance authorized under this subsection and premiums 
on such insurance shall be waived during 
the continuous total disability of the insured. 
(e) After June 30, 1972, and under such regulations as the Secretary may 
promulgate, insurance may be converted to or exchanged for insurance on a 
modified life plan under the same 
terms and conditions as are set forth in subsections (b) and (c) of 
this section except that at the end of the day preceding the seventieth 
birthday of the insured the face value of the modified life insurance 
policy or the amount of extended insurance thereunder 
shall be automatically reduced by one-half thereof, without any 
reduction in premium. Any insured whose modified life insurance 
policy issued under this subsection is in force by payment or waiver 
of premiums on the day before the insuredï¿½s seventieth birthday 
may be granted insurance on the ordinary life plan upon the same 
terms and conditions as are set forth in subsection (d) of this 
section except that in applying such provisions the seventieth birthday 
is to be substituted for the sixty-fifth birthday. Notwithstanding 
any other provision of law or regulations the Secretary under such 
terms and conditions as the Secretary determines to be reasonable 
and practicable and upon written application and payment of the 
required premiums, reserves, or other necessary amounts made 
within one year from the effective date of this subsection by an 
insured having in force a modified life plan issued under subsection 

247 CH. 19-INSURANCE Sec. 1907 

(b) or (c) of this section, including any replacement insurance 
issued under subsection (d) of this section or other provision of this 
title, can exchange such insurance without proof of good health for 
an amount of insurance issued under this subsection equal to the 
insurance then in force or which was in force on the day before 
such insuredï¿½s sixty-fifth birthday, whichever is the greater. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 704; Pub. L. 
88-664, Sec. 12(b), 
Oct. 13, 1964, 78 Stat. 1098; Pub. L. 92-193, Dec. 15, 1971, 85 
Stat. 648; Pub. L. 
97-295, Sec. 4(21), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99-576, 
title VII, Sec. 
701(21), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1904 and 
amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1905. Renewal 

All level premium term policies, except as otherwise provided 
in this section, shall cease and terminate at the expiration of the 
term period. At the expiration of any term period any five-year 
level premium term policy which has not been exchanged or converted 
to a permanent plan of insurance and which is not lapsed 
shall be renewed as level premium term insurance without application 
for a successive five-year period at the premium rate for the 
attained age without medical examination. However, renewal will 
be effected in cases where the policy is lapsed only if the insured 
makes application for reinstatement and renewal of the term policy 
within five years after the date of lapse, and reinstatement in such 
cases shall be under the terms and conditions prescribed by the 
Secretary. In any case in which the insured is shown by evidence 
satisfactory to the Secretary to be totally disabled at the expiration 
of the level premium term period of the insurance under conditions 
which would entitle the insured to continued insurance protection 
but for such expiration, the insurance, if subject to renewal under 
this section, shall be automatically renewed for an additional period 
of five years at the premium rate for the then attained age, 
unless the insured has elected insurance on some other available 
plan. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 705; Pub. L. 
91-291, Sec. 8, June 
25, 1970, 84 Stat. 331; Pub. L. 99-576, title VII, Sec. 701(22), 
Oct. 28, 1986, 100 
Stat. 3292; renumbered Sec. 1905 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1906. Policy provisions 


Provisions for cash, loan, paid-up, and extended values, dividends 
from gains and savings, refund of unearned premiums, and 
such other provisions as may be found to be reasonable and practicable 
may be provided for in the policy of insurance from time to 
time by regulations promulgated by the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 706; renumbered 
Sec. 1906 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1907. Payment or use of dividends 

(a) Until and unless the Secretary has received from the insured a 
request or directive in writing exercising any other dividend option 
allowable under the insuredï¿½s policy, any dividend accumulations and 
unpaid dividends shall be applied in payment of 
premiums becoming due on insurance subsequent to the date the 
dividend is payable after January 1, 1952. 

Sec. 1908 CH. 19-INSURANCE 248 

(b) No claim by an insured for payment in cash of a special dividend 
declared prior to January 1, 1952, shall be processed by the 
Secretary unless such claim was received within six years after 
such dividend was declared. Whenever any claim for payment of a 
special dividend, the processing of which is barred by this subsection, 
is received by the Secretary, it shall be returned to the 
claimant, with a copy of this subsection, and such action shall be 
a complete response without further communication. 
(c) The Secretary, upon application in writing made by the insured for
insurance under this subsection, and without proof of 
good health, is authorized to apply any dividend due and payable 
on national service life insurance after the date of such application 
to purchase paid up insurance. Also, the Secretary, upon application in 
writing made by the insured during the one-year period beginning 
September 1, 1991, and without proof of good health, is authorized to 
apply any national service life insurance dividend credits and deposits 
of such insured existing at the date of the insuredï¿½s 
application to purchase paid up insurance. After September 1, 
1992, the Secretary may, from time to time, provide for further 
one-year periods during which insureds may purchase additional 
paid up insurance from existing dividend credits and deposits. Any 
such period for the purchase of additional paid up insurance may 
be allowed only if the Secretary determines in the case of any such 
period that it would be actuarially and administratively sound to 
do so. Any dividends, dividend credits, or deposits on endowment 
policies may be used under this subsection only to purchase additional 
paid up endowment insurance which matures concurrently 
with the basic policy. Any dividends, dividend credits, or deposits 
on policies (other than endowment policies) may be used under this 
section only to purchase additional paid up whole life insurance. 
The paid up insurance granted under this subsection shall be in 
addition to any insurance otherwise authorized under this title, or 
under prior provisions of law. The paid up insurance granted under 
this subsection shall be issued on the same terms and conditions 
as are contained in the standard policies of national service life 
insurance except (1) the premium rates for such insurance and all 
cash and loan values thereon shall be based on such table of mortality 
and rate of interest per annum as may be prescribed by the 
Secretary; (2) the total disability income provision authorized 
under section 1915 of this title may not be added to insurance 
issued under this section; and (3) the insurance shall include such 
other changes in terms and conditions as the Secretary determines 
to be reasonable and practicable. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 707; Pub. L. 
91-291, Sec. 9, June 
25, 1970, 84 Stat. 331; Pub. L. 92-188, Sec. 2, Dec. 15, 1971, 85 
Stat. 645; Pub. 

L. 97-295, Sec. 4(22), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99-576, 
title VII, Sec. 
701(23), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1907 and 
amended Pub. L. 
102-83, Sec. 4(a)(2)(A)(iii)(I), (C)(i), (b)(1), (2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 
403-406; Pub. L. 102-86, title II, Sec. 203, Aug. 14, 1991, 105 
Stat. 416.) 
ï¿½ 1908. Premium payments 

The Secretary shall, by regulations, prescribe the time and 
method of payment of the premiums on insurance, but payments 
of premiums in advance shall not be required for periods of more 
than one month each, and may at the election of the insured be de


249 CH. 19-INSURANCE Sec. 1911 

ducted from the insuredï¿½s active-service pay or be otherwise made. 
An amount equal to the first premium due under a National Service 
Life Insurance policy may be advanced from current appropriations for 
active-service pay to any person in the active service in 
the Army, Navy, Air Force, Marine Corps, or Coast Guard, which 
amount shall constitute a lien upon any service or other pay accruing 
to the person for whom such advance was made and shall be 
collected therefrom if not otherwise paid. No disbursing or certifying 
officer shall be responsible for any loss incurred by reason of 
such advance. Any amount so advanced in excess of available service or 
other pay shall constitute a lien on the policy within the provisions 
of section 5301(b) of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 708; Pub. L. 
99-576, title VII, 
Sec. 701(24), Oct. 28, 1986, 100 Stat. 3292; Pub. L. 102-40, title IV, 
Sec. 402(d)(1), 
May 7, 1991, 105 Stat. 239; renumbered Sec. 1908 and amended Pub. L. 
102-83, 
Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1909. Effective date of insurance 

Insurance may be made effective, as specified in the application, not 
later than the first day of the calendar month following 
the date of application therefor, but the United States shall not be 
liable thereunder for death occurring before such effective date. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 709; renumbered 
Sec. 1909, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1910. Incontestability 

Subject to the provisions of section 1911 of this title all contracts 
or policies of insurance heretofore or hereafter issued, reinstated, 
or converted shall be incontestable from the date of issue, 
reinstatement, or conversion except for fraud, nonpayment of premium, 
or on the ground that the applicant was not a member of 
the military or naval forces of the United States. However, in any 
case in which a contract or policy of insurance is canceled or voided 
after March 16, 1954, because of fraud, the Secretary shall refund 
to the insured, if living, or, if deceased, to the person designated 
as beneficiary (or if none survives, to the estate of the insured) all 
money, without interest, paid as premiums on such contract or policy 
for any period subsequent to two years after the date such 
fraud induced the Secretary to issue, reinstate, or convert such 
insurance less any dividends, loan, or other payment made to the 
insured under such contract or policy. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 710; renumbered 
Sec. 1910 and 
amended Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(II), (b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 403-406.) 

ï¿½ 1911. Forfeiture 

Any person guilty of mutiny, treason, spying, or desertion, or 
who, because of conscientious objections, refuses to perform service 
in the Armed Forces of the United States or refuses to wear the 
uniform of such force, shall forfeit all rights to National Service 
Life Insurance. No insurance shall be payable for death inflicted as 
a lawful punishment for crime or for military or naval offense, 
except when inflicted by an enemy of the United States; but the cash 
surrender value, if any, of such insurance on the date of such death 


Sec. 1912 CH. 19-INSURANCE 250 

shall be paid to the designated beneficiary, if living, or otherwise 
to the beneficiary or beneficiaries within the permitted class in 
accordance with the order specified in section 1916(b) of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 711; renumbered 
Sec. 1911 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ 1912. Total disability waiver 

(a) Upon application by the insured and under such regulations 
as the Secretary may promulgate, payment of premiums on insurance 
may be waived during the continuous total disability of the 
insured, which continues or has continued for six or more consecutive 
months, if such disability began (1) after the date of the insuredï¿½s 
application for insurance, (2) while the insurance was in 
force under premium-paying conditions, and (3) before the insuredï¿½s 
sixty-fifth birthday. Notwithstanding any other provision of this 
chapter, in any case in which the total disability of the insured 
commenced on or after the insuredï¿½s sixtieth birthday but before 
the insuredï¿½s sixty-fifth birthday, the Secretary shall not grant 
waiver of any premium becoming due prior to January 1, 1965. 
(b) The Secretary, upon any application made after August 1, 
1947, shall not grant waiver of any premium becoming due more 
than one year before the receipt by the Secretary of application for 
the same, except as provided in this section. Any premiums paid 
for months during which waiver is effective shall be refunded. The 
Secretary shall provide by regulations for examination or 
reexamination of an insured claiming benefits under this section, 
and may 
deny benefits for failure to cooperate. If it is found that an insured 
is no longer totally disabled, the waiver of premiums shall cease as 
of the date of such finding and the policy of insurance may be 
continued by payment of premiums as provided in said policy. In any 
case in which the Secretary finds that the insuredï¿½s failure to make 
timely application for waiver of premiums or the insuredï¿½s failure 
to submit satisfactory evidence of the existence or continuance of 
total disability was due to circumstances beyond the insuredï¿½s control, 
the Secretary may grant waiver or continuance of waiver of 
premiums. 
(c) If the insured dies without filing application for waiver, the 
beneficiary, within one year after the death of the insured, or, if 
the beneficiary is insane or a minor, within one year after removal 
of such legal disability, may file application for waiver with evidence 
of the insuredï¿½s right to waiver under this section. Premium 
rates shall be calculated without charge for the cost of waiver of 
premiums provided in this section and no deduction from benefits 
otherwise payable shall be made on account thereof. 
(d) In any case in which an insured has been denied or would 
have been denied premium waiver under section 602(n) of the National 
Service Life Insurance Act of 1940 or this section solely because the 
insured became totally disabled between the date of valid 
application for insurance and the subsequent effective date thereof, 
and in which it is shown that (1) the total disability was incurred 
in line of duty between October 8, 1940, and July 31, 1946, inclusive, 
or June 27, 1950, and April 30, 1951, inclusive, and (2) the 
insured remained continuously so totally disabled to the date of 
death or June 8, 1960, whichever is earlier, the Secretary may 

251 CH. 19-INSURANCE Sec. 1914 

grant waiver of premiums from the beginning of and during the 
continuous total disability of such insured. Application for waiver 
of premiums under this subsection must be filed by the insured or, 
in the event of the insuredï¿½s death, by the beneficiary within two 
years after June 8, 1960, except that if the insured or the beneficiary 
be insane or a minor within the two-year period, application 
for such waiver may be filed within two years after removal of such 
legal disability, or if an insane insured shall die before the removal 
of the disability, application may be filed by the beneficiary within 
two years after the insuredï¿½s death. No insurance shall be placed 
in force under this subsection in any case in which there was an 
award of benefits under the Servicemenï¿½s Indemnity Act of 1951 or 
of gratuitous insurance under section 1922(b) of this title. The 
amount of insurance placed in force hereunder together with any 
other United States Government life insurance or national service 
life insurance in force at the time of death, or at the time of the 
insuredï¿½s application for waiver hereunder, may not exceed $10,000 
and shall be reduced by the amount of any gratuitous insurance 
awarded under the National Service Life Insurance Act of 1940. 
Waiver of premiums under this subsection shall render the insurance 
nonparticipating during the period such premium waiver is in 
effect. The cost of waiver of premium and death benefits paid as 
a result of this subsection shall be borne by the United States. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 712; Pub. L. 
86-497, June 8, 
1960, 74 Stat. 164; Pub. L. 88-364, July 7, 1964, 78 Stat. 302; 
Pub. L. 97-295, Sec. 
4(23), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99-576, title VII, Sec. 
701(25), Oct. 28, 
1986, 100 Stat. 3292; renumbered Sec. 1912 and amended Pub. L. 102-83, 
Sec. 
4(a)(2)(C)(ii), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1913. Death before six monthsï¿½ total disability 

Whenever premiums are not waived under section 1912 of this 
title solely because the insured died prior to the continuance of 
total disability for six months, and proof of such facts, satisfactory 
to the Secretary, is filed by the beneficiary with the Department 
within one year after the insuredï¿½s death, the insurance shall be 
deemed to be in force at the date of the death, and the unpaid 
premiums shall become a lien against the proceeds of the insurance. 
If the beneficiary is insane or a minor, proof of such facts may be 
filed within one year after removal of such legal disability. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 713; Pub. L.
99-576, title VII, 
Sec. 701(26), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1913 and 
amended 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1914. Statutory total disabilities 

Without prejudice to any other cause of disability, the permanent loss 
of the use of both feet, of both hands, or of both eyes, or 
of one foot and one hand, or of one foot and one eye, or of one hand 
and one eye, or the total loss of hearing of both ears, or the organic 
loss of speech, shall be deemed total disability for insurance purposes. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 714; renumbered 
Sec. 1914, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

Sec. 1915 CH. 19-INSURANCE 252 

ï¿½ 1915. Total disability income provision 

The Secretary shall, except as hereinafter provided, upon application 
by the insured and proof of good health satisfactory to the 
Secretary and payment of such extra premium as the Secretary 
shall prescribe, include in any National Service Life Insurance policy 
on the life of the insured (except a policy issued under section 
620 of the National Service Life Insurance Act of 1940, or section 
1922 of this title) provisions whereby an insured who is shown to 
have become totally disabled for a period of six consecutive months 
or more commencing after the date of such application and before 
attaining the age of sixty-five and while the payment of any premium is 
not in default, shall be paid monthly disability benefits 
from the first day of the seventh consecutive month of and during 
the continuance of such total disability of $10 for each $1,000 of 
such insurance in effect when such benefits become payable. The 
total disability provision authorized under this section shall not be 
issued unless application therefor is made either prior to the 
insuredï¿½s fifty-fifth birthday, or before the insuredï¿½s sixtieth birthday 
and prior to January 1, 1966. The total disability provision authorized 
under this section shall not be added to a policy containing the 
total disability coverage heretofore issued under section 602(v) of 
the National Service Life Insurance Act of 1940, or the provisions 
of this section as in effect before January 1, 1965, except upon 
surrender of such total disability coverage, proof of good health, if 
required, satisfactory to the Secretary, and payment of such extra 
premium as the Secretary shall determine is required in such 
cases. Participating policies containing additional provisions for the 
payment of disability benefits may be separately classified for the 
purpose of dividend distribution from otherwise similar policies not 
containing such benefits. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 715; Pub. L. 
88-355, July 7, 1964,78 Stat. 272; renumbered Sec. 1915 and amended 
Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1916. Insurance which matured before August 1, 1946 

(a) Insurance which matured before August 1, 1946, is payable 
in the following manner: 
(1) If the beneficiary to whom payment is first made was 
under thirty years of age at the time of maturity, in two hundred and 
forty equal monthly installments. 
(2) If the beneficiary to whom payment is first made was 
thirty or more years of age at the time of maturity, in equal 
monthly installments for one hundred and twenty months certain, with 
such payments continuing during the remaining lifetime of such 
beneficiary. 
(3) If elected by the insured or a beneficiary entitled to 
make such an election under prior provisions of law, as a refund life 
income in monthly installments payable for such period certain as may 
be required in order that the sum of the 
installments certain, including a last installment of such reduced 
amount as may be necessary, shall equal the face value 
of the contract, less any indebtedness, with such payments continuing 
throughout the lifetime of the first beneficiary. A refund life income 
optional settlement is not available in any 

253 CH. 19-INSURANCE Sec. 1916 

case in which such settlement would result in payments of installments 
over a shorter period than one hundred and twenty 
months. If the mode of payment is changed to a refund life income in 
accordance with prior provisions of law, after payment 
has commenced, payment of monthly installments will be adjusted as of 
the date of maturity of such policy with credit 
being allowed for payments previously made on the insurance. 

(b) Such insurance shall be payable only to a widow, widower, 
child, parent, brother or sister of the insured. Any installments 
certain of such insurance remaining unpaid at the death of any 
beneficiary shall be paid in equal monthly installments in an amount 
equal to the monthly installments paid to the first beneficiary, to 
the person or persons then in being within the following classes, 
and in the order named, unless designated by the insured in a different 
order: 
(1) To the widow or widower of the insured, if living. 
(2) If no widow or widower, to the child or children of the 
insured, if living, in equal shares. 
(3) If no widow, widower, or child, to the parent or parents 
of the insured who last bore that relationship, if living, in 
equal shares. 
(4) If no widow, widower, child, or parent, to the brothers 
and sisters of the insured, if living, in equal shares. 
(c) The provisions of this section shall not be construed to enlarge the 
classes of beneficiaries heretofore authorized under section 602(d) of 
the National Service Life Insurance Act of 1940, for 
payment of gratuitous insurance. 
(d) If no beneficiary of insurance which matured before August 
1, 1946, was designated by the insured or if the designated beneficiary 
did not survive the insured, the beneficiary shall be determined in 
accordance with the order specified in subsection (b) and 
the insurance shall be payable in equal monthly installments in 
accordance with subsection (a). The right of any beneficiary to payment 
of any installments of such insurance shall be conditioned 
upon his or her being alive to receive such payments. No person 
shall have a vested right to any installment or installments of any 
such insurance and any installments not paid to a beneficiary during 
such beneficiaryï¿½s lifetime shall be paid to the beneficiary or 
beneficiaries within the permitted class next entitled to priority, as 
provided in subsection (b). 
(e) No installments of insurance which matured before August 
1, 1946, shall be paid to the heirs or legal representatives as such 
of the insured or of any beneficiary, and if no person within the 
permitted class survives to receive the insurance or any part thereof 
no payment of the unpaid installments shall be made, except 
that if the reserve of a contract of converted National Service Life 
Insurance, together with dividends accumulated thereon, less any 
indebtedness under such contract, exceeds the aggregate amount 
paid to beneficiaries, the excess shall be paid to the estate of the 
insured unless the estate of the insured would escheat under the 
laws of the insuredï¿½s place of residence, in which event no payment 
shall be made. When the amount of an individual monthly payment 
of such insurance is less than $5, such amount may, in the discre

Sec. 1917 CH. 19-INSURANCE 254 

tion of the Secretary, be allowed to accumulate without interest 
and be disbursed annually. 

(f) Any payments of insurance made to a person, represented 
by the insured to be within the permitted class of beneficiaries, 
shall be deemed to have been properly made and to satisfy fully the 
obligation of the United States under such insurance policy to the 
extent of such payments. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 716; Pub. L. 
99-576, title VII, 
Sec. 701(27), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1916 
and amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 
102-86, title V, Sec. 506(a)(2), Aug. 14, 1991, 105 Stat. 426.) 

ï¿½ 1917. Insurance maturing on or after August 1, 1946 

(a) The insured shall have the right to designate the beneficiary or 
beneficiaries of insurance maturing on or after August 1, 
1946, and shall, subject to regulations, at all times have the right 
to change the beneficiary or beneficiaries of such insurance without 
the consent of such beneficiary or beneficiaries. 
(b) Insurance maturing on or after August 1, 1946, shall be 
payable in accordance with the following optional modes of settlement: 
(1) In one sum. 
(2) In equal monthly installments of from thirty-six to two 
hundred and forty in number, in multiples of twelve. 
(3) In equal monthly installments for one hundred and 
twenty months certain with such payments continuing during 
the remaining lifetime of the first beneficiary. 
(4) As a refund life income in monthly installments payable for such 
period certain as may be required in order that 
the sum of the installments certain, including a last installment of
such reduced amount as may be necessary, shall equal 
the face value of the contract, less any indebtedness, with such 
payments continuing throughout the lifetime of the first beneficiary; 
however, such optional settlement shall not be available in any case 
in which such settlement would result in payments of installments over 
a shorter period than one hundred 
and twenty months. 
(c) Except as provided in the second and third sentences of this 
subsection, unless the insured elects some other mode of settlement, 
such insurance shall be payable to the designated beneficiary 
or beneficiaries in thirty-six equal monthly installments. The first 
beneficiary may elect to receive payment under any option which 
provides for payment over a longer period of time than the option 
elected by the insured, or if no option has been elected by the 
insured, in excess of thirty-six months. In the case of insurance 
maturing after September 30, 1981, and for which no option has been 
elected by the insured, the first beneficiary may elect to receive 
payment in one sum. If the option selected requires payment to any 
one beneficiary of monthly installments of less than $10, the 
amount payable to such beneficiary shall be paid in such maximum 
number of monthly installments as are a multiple of twelve as will 
provide a monthly installment of not less than $10. If the present 
value of the amount payable at the time any person initially becomes 
entitled to payment thereof is not sufficient to pay at least 

255 CH. 19-INSURANCE Sec. 1918 

twelve monthly installments of not less than $10 each, such 
amount shall be payable in one sum. Options (3) and (4) shall not 
be available if any firm, corporation, legal entity (including the 
estate of the insured), or trustee is beneficiary. 

(d) If the beneficiary of such insurance is entitled to a lump-
sum settlement but elects some other mode of settlement and dies 
before receiving all the benefits due and payable under such mode 
of settlement, the present value of the remaining unpaid amount 
shall be payable to the estate of the beneficiary. If no beneficiary 
is designated by the insured, or if the designated beneficiary does 
not survive the insured, or if a designated beneficiary not entitled 
to a lump-sum settlement survives the insured, and dies before 
receiving all the benefits due and payable, then the commuted value 
of the remaining unpaid insurance (whether accrued or not) shall 
be paid in one sum to the estate of the insured. In no event shall 
there be any payment to the estate of the insured or of the 
beneficiary of any sums unless it is shown that any sums paid 
will not 
escheat. 
(e) Under such regulations as the Secretary may promulgate, 
the cash surrender value of any policy of insurance or the proceeds 
of an endowment contract which matures by reason of completion 
of the endowment period may be paid to the insured under option 
(2) or (4) of this section. All settlements under option (4), however, 
shall be calculated on the basis of The Annuity Table for 1949. If 
the option selected requires payment of monthly installments of 
less than $10, the amount payable shall be paid in such maximum 
number of monthly installments as are a multiple of twelve as will 
provide a monthly installment of not less than $10. 
(f)(1) Following the death of the insured and in a case not covered 
by subsection (d)- 

(A) if the first beneficiary otherwise entitled to payment of 
the insurance does not make a claim for such payment within 
two years after the death of the insured, payment may be 
made to another beneficiary designated by the insured, in the 
order of precedence as designated by the insured, as if the first 
beneficiary had predeceased the insured; and 
(B) if, within four years after the death of the insured, no 
claim has been filed by a person designated by the insured as 
a beneficiary and the Secretary has not received any notice in 
writing that any such claim will be made, payment may 
(notwithstanding any other provision of law) be made to such person 
as may in the judgment of the Secretary be equitably entitled thereto. 
(2) Payment of insurance under paragraph (1) shall be a bar 
to recovery by any other person. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1152, Sec. 717; Pub. L. 
91-291, Sec. 10, 
June 25, 1970, 84 Stat. 331; Pub. L. 97-66, title IV, Sec. 403(a),
Oct. 17, 1981, 95 
Stat. 1031; renumbered Sec. 1917 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 108-183, title I, 
Sec. 103(a), Dec. 16, 
2003, 117 Stat. 2655.) 

ï¿½ 1918. Assignments 

(a) Assignments of all or any part of the beneficiaryï¿½s interest 
may be made by a designated beneficiary to a widow, widower, 

Sec. 1919 CH. 19-INSURANCE 256 

child, father, mother, grandfather, grandmother, brother, or sister 
of the insured, when the designated contingent beneficiary, if any, 
joins the beneficiary in the assignment, and if the assignment is 
delivered to the Secretary before any payments of the insurance 
shall have been made to the beneficiary. However, an interest in 
an annuity, when assigned, shall be payable in equal monthly 
installments in such multiple of twelve as most nearly equals the 
number of installments certain under such annuity, or in two hundred 
and forty installments, whichever is the lesser. The provisions 
of this subsection shall not be applicable to insurance maturing 
after July 26, 1962. 

(b) Except as to insurance granted under the provisions of section 
1922(b) of this title, any person to whom insurance maturing 
after July 26, 1962, is payable may assign all or any portion of 
such personï¿½s interest in such insurance to a widow, widower, child, 
father, mother, grandfather, grandmother, brother, or sister of the 
insured when the designated contingent beneficiary, if any, joins 
the beneficiary in the assignment. Such joinder shall not be required 
in any case in which the insurance proceeds are payable in 
a lump sum. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1153, Sec. 718; Pub. L. 
87-557, Sec. 1, July 
27, 1962, 76 Stat. 245; Pub. L. 96-128, title III, Sec. 304, Nov. 28, 
1979, 93 Stat. 
986; Pub. L. 97-295, Sec. 4(24), Oct. 12, 1982, 96 Stat. 1306; 
renumbered Sec. 1918 
and amended Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(III), 5(a), (c)(1), 
Aug. 6, 1991, 105 
Stat. 403, 406.) 

ï¿½ 1919. National Service Life Insurance appropriation 

(a) The National Service Life Insurance appropriation is continued and 
there is authorized to be appropriated, out of any 
money in the Treasury not otherwise appropriated, such sums as 
may be necessary to carry out the provisions of this chapter and 
the provisions heretofore prescribed in the National Service Life 
Insurance Act of 1940, or related Acts, for the payment of liabilities 
under National Service Life Insurance. Payment from this appropriation 
shall be made upon and in accordance with awards by the 
Secretary. 
(b) All premiums heretofore and hereafter paid on insurance 
issued or reinstated under section 602(v)(1) of the National Service 
Life Insurance Act of 1940 where the requirement of good health 
was waived under such section because of a service-incurred injury 
or disability shall be credited directly to the National Service Life 
Insurance appropriation and any payments of benefits heretofore 
and hereafter made on such insurance shall be made directly from 
such appropriation. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 719; Pub. L. 
98-160, title VII, 
Sec. 702(5), Nov. 21, 1983, 97 Stat. 1009; renumbered Sec. 1919 and 
amended Pub. 

L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406; 
Pub. L. 105- 
368, title III, Sec. 304(a), Nov. 11, 1998, 112 Stat. 3334.) 
ï¿½ 1920. National Service Life Insurance Fund 

(a) The National Service Life Insurance Fund heretofore created in the 
Treasury is continued as a permanent trust fund. Except as otherwise 
provided in this chapter, all premiums paid on 
account of National Service Life Insurance shall be deposited and 
covered into the Treasury to the credit of such fund, which, to

257 CH. 19-INSURANCE Sec. 1921 

gether with interest earned thereon, shall be available for the payment 
of liabilities under such insurance, including payment of dividends and 
refunds of unearned premiums, and for the reimbursement of administrative 
costs under subsection (c). Payments from 
this fund shall be made upon and in accordance with awards by the 
Secretary. 

(b) The Secretary is authorized to set aside out of such fund 
such reserve amounts as may be required under accepted actuarial 
principles to meet all liabilities under such insurance; and the 
Secretary of the Treasury is authorized to invest and reinvest such 
fund, or any part thereof, in interest-bearing obligations of the 
United States or in obligations guaranteed as to principal and interest 
by the United States, and to sell such obligations for the purposes of 
such fund. 
(c)(1) For each fiscal year for which this subsection is in effect, 
the Secretary shall, from the National Service Life Insurance Fund, 
reimburse the ï¿½ï¿½General operating expensesï¿½ï¿½ account of the Department 
for the amount of administrative costs determined under 
paragraph (2) for that fiscal year. Such reimbursement shall be 
made from any surplus earnings for that fiscal year that are available 
for dividends on such insurance after claims have been paid 
and actuarially determined reserves have been set aside. However, 
if the amount of such administrative costs exceeds the amount of 
such surplus earnings, such reimbursement shall be made only to 
the extent of such surplus earnings. 

(2) The Secretary shall determine the administrative costs to 
the Department for a fiscal year for which this subsection is in 
effect which, in the judgment of the Secretary, are properly 
allocable 
to the provision of National Service Life Insurance (and to the 
provision of any total disability income insurance added to the 
provision of such insurance). 
(3) This subsection shall be in effect only with respect to fiscal 
year 1996. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 720; renumbered 
Sec. 1920 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 
105 Stat. 404-406; 
Pub. L. 104-99, title II, Sec. 201(b), Jan. 26, 1996, 110 Stat. 36.) 

ï¿½ 1921. Extra hazard costs 

(a) The United States shall bear the excess mortality cost and 
the cost of waiver of premiums on account of total disability traceable 
to the extra hazard of military or naval service, as such hazard may be 
determined by the Secretary. 
(b) Whenever benefits under insurance become payable because 
of the death of the insured as the result of disease or injury 
traceable to the extra hazard of military or naval service, as such 
hazard may be determined by the Secretary, the liability for payment 
of such benefits shall be borne by the United States in an amount 
which, when added to the reserve of the policy at the time of death 
of the insured will equal the then value of such benefits under such 
policy. Where life contingencies are involved in the calculation of 
the value of such benefits of insurance heretofore or hereafter 
matured, the calculation of such liability or liabilities shall be 
based 
upon such mortality table or tables as the Secretary may prescribe 
with interest at the rate of 3 per centum per annum. The Secretary 

Sec. 1922 CH. 19-INSURANCE 258 

shall transfer from time to time from the National Service Life 
Insurance appropriation to the National Service Life Insurance Fund 
such sums as may be necessary to carry out the provisions of this 
section. 

(c) Whenever the premiums under insurance are waived because of the 
total disability of the insured as the result of disease 
or injury traceable to the extra hazard of military or naval service, 
as such hazard may be determined by the Secretary, the premiums 
so waived shall be paid by the United States and the Secretary 
shall transfer from time to time an amount equal to the amount 
of such premiums from the National Service Life Insurance appropriation 
to the National Service Life Insurance Fund. 
(d) Whenever benefits under the total disability income provision 
become, or have become, payable because of total disability of 
the insured as a result of disease or injury traceable to the extra 
hazard of the military or naval service, as such hazard may be 
determined by the Secretary, the liability shall be borne by the 
United States, and the Secretary shall transfer from the National 
Service Life Insurance appropriation to the National Service Life 
Insurance Fund from time to time any amounts which become, or 
have become, payable to the insured on account of such total 
disability, and to transfer from the National Service Life Insurance 
Fund to the National Service Life Insurance appropriation the 
amount of the reserve held on account of the total disability benefit. 
When a person receiving such payments on account of total 
disability recovers from such disability, and is then entitled to 
continue protection under the total disability income provision, the 
Secretary shall transfer to the National Service Life Insurance 
Fund a sum sufficient to set up the then required reserve on such 
total disability benefit. 
(e) Any disability for which a waiver was required as a condition to 
tendering a person a commission under Public Law 816, 
Seventy-seventh Congress, shall be deemed to be a disability resulting 
from an injury or disease traceable to the extra hazard of 
military or naval service for the purpose of applying this section. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 721; renumbered 
Sec. 1921 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1922. Service disabled veteransï¿½ insurance 

(a) Any person who is released from active military, naval, or 
air service, under other than dishonorable conditions on or after 
April 25, 1951, and is found by the Secretary to be suffering from 
a disability or disabilities for which compensation would be payable 
if 10 per centum or more in degree and except for which such person 
would be insurable according to the standards of good health 
established by the Secretary, shall, upon application in writing 
made within two years from the date service-connection of such 
disability is determined by the Secretary and payment of premiums 
as provided in this subchapter, be granted insurance by the United 
States against the death of such person occurring while such insurance 
is in force. If such a person is shown by evidence satisfactory 
to the Secretary to have been mentally incompetent during any 
part of the two-year period, application for insurance under this 
section may be filed within two years after a guardian is appointed 

259 CH. 19-INSURANCE Sec. 1922 

or within two years after the removal of such disability as determined 
by the Secretary, whichever is the earlier date. If the guardian was 
appointed or the removal of the disability occurred before 
January 1, 1959, application for insurance under this section may 
be made within two years after that date. Insurance granted under 
this section shall be issued upon the same terms and conditions as 
are contained in the standard policies of National Service Life 
Insurance except (1) the premium rates for such insurance shall be 
based on the Commissioners 1941 Standard Ordinary Table of Mortality 
and interest at the rate of 2 1/4 per centum per annum; (2) 
all cash, loan, paid-up, and extended values shall be based upon 
the Commissioners 1941 Standard Ordinary Table of Mortality and 
interest at the rate of 2 1/4 per centum per annum; (3) all settlements 
on policies involving annuities shall be calculated on the 
basis of The Annuity Table for 1949, and interest at the rate of 2 
1/4 per centum per annum; (4) insurance granted under this section 
shall be on a nonparticipating basis and all premiums and 
other collections therefor shall be credited directly to a revolving 
fund in the Treasury of the United States, and any payments on 
such insurance shall be made directly from such fund; and (5) 
administrative costs to the Government for the costs of the program 
of insurance under this section shall be paid from premiums credited 
to the fund under paragraph (4), and payments for claims 
against the fund under paragraph (4) for amounts in excess of 
amounts credited to such fund under that paragraph (after such 
administrative costs have been paid) shall be paid from appropriations 
to the fund. Appropriations to such fund are hereby authorized. As to 
insurance issued under this section, waiver of premiums 
pursuant to section 602(n) of the National Service Life Insurance 
Act of 1940 and section 1912 of this title shall not be denied on the 
ground that the service-connected disability became total before the 
effective date of such insurance. 

(b)(1) Any person who, on or after April 25, 1951, was otherwise 
qualified for insurance under the provisions of section 620 of 
the National Service Life Insurance Act of 1940, or under subsection 
(a) of this section, but who did not apply for such insurance 
and who is shown by evidence satisfactory to the Secretary (A) to 
have been mentally incompetent from a service-connected disability, 
(i) at the time of release from active service, or (ii) during 
any part of the two-year period from the date the service connection 
of a disability is first determined by the Secretary, or (iii) after 
release from active service but is not rated service-connected 
disabled by the Secretary until after death; and (B) to have remained 
continuously so mentally incompetent until date of death; and (C) 
to have died before the appointment of a guardian, or within two 
years after the appointment of a guardian; shall be deemed to have 
applied for and to have been granted such insurance, as of the date 
of death, in an amount which, together with any other United 
States Government or National Service life insurance in force, shall 
aggregate $10,000. The date to be used for determining whether 
such person was insurable according to the standards of good 
health established by the Secretary, except for the service-connected 
disability, shall be the date of release from active service or 


Sec. 1922A CH. 19-INSURANCE 260 

the date the person became mentally incompetent, whichever is the 
later. 

(2) Payments of insurance granted under subsection (b)(1) of 
this section shall be made only to the following beneficiaries and 
in the order named- 
(A) to the widow or widower of the insured, if living and 
while unremarried; 
(B) if no widow or widower entitled thereto, to the child or 
children of the insured, if living, in equal shares; 
(C) if no widow or widower or child entitled thereto, to the 
parent or parents of the insured who last bore that relationship, if 
living, in equal shares. 
(3) No application for insurance payments under this subsection shall
be valid unless filed with the Secretary within two 
years after the date of death of the insured or before January 1, 
1961, whichever is the later, and the relationship of the applicant 
shall be proved as of the date of death of the insured by evidence 
satisfactory to the Secretary. Persons shown by evidence satisfactory 
to the Secretary to have been mentally or legally incompetent 
at the time the right to apply for death benefits expires, may make 
such application at any time within one year after the removal of 
such disability. 
(4) Notwithstanding section 1917 of this title, insurance under 
this subsection shall be payable to the beneficiary determined 
under paragraph (2) of this subsection in a lump sum. 
(c) The premium rate of any term insurance issued under this 
section shall not exceed the renewal age 70 premium rate. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1155, Sec. 722; renumbered 
Sec. 1922 and 
amended Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(IV), (D)(i), (b)(1), 
(2)(E), 5(a), (c)(1), Aug.
6, 1991, 105 Stat. 403-406; Pub. L. 102-86, title II, Sec. 201(a), 
202(a), Aug. 14, 
1991, 105 Stat. 415, 416; Pub. L. 103-446, title XII, Sec. 1201(i)(2), 
Nov. 2, 1994, 
108 Stat. 4688; Pub. L. 106-419, title III, Sec. 311(a), Nov. 1, 
2000, 114 Stat. 1854; 
Pub. L. 110-389, title IV, Sec. 404, Oct. 10, 2008, 122 Stat. 
4175.) 

ï¿½ 1922A. Supplemental service disabled veteransï¿½ insurance 
for totally disabled veterans 

(a) Any person insured under section 1922(a) of this title who 
qualifies for a waiver of premiums under section 1912 of this title 
is eligible, as provided in this section, for supplemental insurance 
in an amount not to exceed $20,000. 
(b) To qualify for supplemental insurance under this section a 
person must file with the Secretary an application for such insurance. 
Such application must be filed not later than (1) October 31, 
1993, or (2) the end of the one-year period beginning on the date 
on which the Secretary notifies the person that the person is entitled 
to a waiver of premiums under section 1912 of this title, 
whichever is later. 
(c) Supplemental insurance granted under this section shall be 
granted upon the same terms and conditions as insurance granted 
under section 1922(a) of this title, except that such insurance may 
not be granted to a person under this section unless the application 
is made for such insurance before the person attains 65 years of 
age. 
(d) No waiver of premiums shall be made in the case of any 
person for supplemental insurance granted under this section. 

261 CH. 19-INSURANCE Sec. 1923 

(Added Pub. L. 102-568, title II, Sec. 203(a), Oct. 29, 1992, 106 
Stat. 4324; amended 
Pub. L. 103-446, title XII, Sec. 1201(f)(1), Nov. 2, 1994, 108 Stat. 
4687.) 

ï¿½ 1923. Veteransï¿½ Special Life Insurance 

(a) Insurance heretofore granted under the provisions of section 621 
of the National Service Life Insurance Act of 1940, against 
the death of the policyholder occurring while such insurance is in 
force, is subject to the same terms and conditions as are contained 
in standard policies of National Service Life Insurance on the five-
year level premium term plan except (1) such insurance may not 
be exchanged for or converted to insurance on any other plan; (2) 
the premium rates for such insurance shall be based on the 
Commissioners 1941 Standard Ordinary Table of Mortality and interest 
at the rate of 2 1/4 per centum per annum; (3) all settlements on 
policies involving annuities shall be calculated on the basis of The 
Annuity Table for 1949, and interest at the rate of 2 1/4 per centum 
per annum; (4) all premiums and other collections on such insurance 
and any total disability provisions added thereto shall be 
credited to a revolving fund in the Treasury of the United States, 
which, together with interest earned thereon, shall be available for 
the payment of liabilities under such insurance and any total 
disability provisions added thereto, including payments of dividends 
and refunds of unearned premiums, and for the reimbursement of 
administrative costs under subsection (d). 
(b) Any term insurance heretofore issued under section 621 of 
the National Service Life Insurance Act of 1940, may be converted 
to a permanent plan of insurance or exchanged for a policy of limited 
convertible five-year level premium term insurance issued 
under this subsection. Insurance issued under this subsection shall 
be issued upon the same terms and conditions as are contained in 
the standard policies of National Service Life Insurance except (1) 
after September 1, 1960, limited convertible term insurance may 
not be issued or renewed on the term plan after the insuredï¿½s 
fiftieth birthday; (2) the premium rates for such limited convertible 
term or permanent plan insurance shall be based on table X-18 
(1950-54 Intercompany Table of Mortality) and interest at the rate 
of 2 1/2 per centum per annum; (3) all settlements on policies 
involving annuities on insurance issued under this subsection shall 
be calculated on the basis of The Annuity Table for 1949, and 
interest at the rate of 2 1/2 per centum per annum; (4) all cash, 
loan, 
paid-up, and extended values, and, except as otherwise provided in 
this subsection, all other calculations in connection with insurance 
issued under this subsection shall be based on table X-18 (1950- 
54 Intercompany Table of Mortality) and interest at the rate of 2 
1/2 per centum per annum; (5) all premiums and other collections 
on insurance issued under this subsection and any total disability 
income provisions added thereto shall be credited directly to the 
revolving fund referred to in subsection (a) of this section, which 
together with interest earned thereon, shall be available for the 
payment of liabilities under such insurance and any total disability 
provisions added thereto, including payments of dividends and refunds 
of unearned premiums. 
(c) The Secretary is authorized to invest in, and the Secretary 
of the Treasury is authorized to sell and retire, special interest

Sec. 1924 CH. 19-INSURANCE 262 

bearing obligations of the United States for the account of the 
revolving fund with a maturity date as may be agreed upon by the 
two Secretaries. The rate of interest on such obligations shall be 
fixed by the Secretary of the Treasury at a rate equal to the rate 
of interest, computed as of the end of the month preceding the date 
of issue of such obligations, borne by all marketable interest-
bearing obligations of the United States then forming a part of the 
public debt that are not due or callable until after the expiration 
of five 
years from the date of original issue; except that where such 
average rate is not a multiple of one-eighth of 1 per centum, the rate 
of interest of such obligations shall be the multiple of one-eighth 
of 1 per centum nearest such average rate. 

(d)(1) For each fiscal year for which this subsection is in effect, 
the Secretary shall, from the Veteransï¿½ Special Life Insurance 
Fund, reimburse the ï¿½ï¿½General operating expensesï¿½ï¿½ account of the 
Department for the amount of administrative costs determined 
under paragraph (2) for that fiscal year. Such reimbursement shall 
be made from any surplus earnings for that fiscal year that are 
available for dividends on such insurance after claims have been 
paid and actuarially determined reserves have been set aside. 
However, if the amount of such administrative costs exceeds the 
amount of such surplus earnings, such reimbursement shall be 
made only to the extent of such surplus earnings. 

(2) The Secretary shall determine the administrative costs to 
the Department for a fiscal year for which this subsection is in 
effect which, in the judgment of the Secretary, are properly allocable 
to the provision of Veteransï¿½ Special Life Insurance (and to the 
provision of any total disability income insurance added to the 
provision of such insurance). 
(3) This subsection shall be in effect only with respect to fiscal 
year 1996. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1157, Sec. 723; Pub. L. 
85-896, Sept. 2, 
1958, 72 Stat. 1716; Pub. L. 87-223, Sept. 13, 1961, 75 Stat. 495; 
Pub. L. 93-289, 
Sec. 2(a), May 24, 1974, 88 Stat. 165; renumbered Sec. 1923 and 
amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(C), (E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 104- 
99, title II, Sec. 201(b), Jan. 26, 1996, 110 Stat. 36.) 

ï¿½ 1924. In-service waiver of premiums 

(a) Waiver of all premiums on five-year level premium term insurance 
and that portion of any permanent insurance premiums 
representing the cost of the pure insurance risk, as determined by 
the Secretary, granted on National Service Life Insurance or 
United States Government life insurance under section 622 of the 
National Service Life Insurance Act of 1940 and in effect on 
January 1, 1959, shall, unless canceled, continue in effect 
according to 
the provisions of such section for the remainder of the insuredï¿½s 
continuous active service and for one hundred and twenty days 
thereafter. Such premium waiver renders the contract of insurance 
nonparticipating during the period the waiver is in effect. 
(b) Whenever benefits become payable because of the maturity 
of such insurance while under the premium waiver continued by 
this section, liability for payment of such benefits shall be borne by 
the United States in an amount which, when added to any reserve 
of the policy at the time of maturity, will equal the then value of 

263 CH. 19-INSURANCE Sec. 1925 

such benefits under such policy. Where life contingencies are involved 
in the calculation of the value of such benefits, the calculation of 
such liability or liabilities shall be based upon such mortality table 
or tables as the Secretary may prescribe with interest 
at the rate of 2 1/4 per centum per annum as to insurance issued 
under sections 620 and 621 of the National Service Life Insurance 
Act of 1940, at the rate of 3 per centum per annum as to other National 
Service Life Insurance, and 3 1/2 per centum per annum as 
to United States Government life insurance. The Secretary shall 
transfer from time to time from the National Service Life Insurance 
appropriation to the National Service Life Insurance Fund 

and from the military and naval insurance appropriation to the 
United States Government Life Insurance Fund such sums as may 
be necessary to carry out the provisions of this section. 

(c) In any case in which insurance continued in force under 
this section matures on or after January 1, 1972, an amount equal 
to the amount of premiums, less dividends, waived on and after 
that date shall be placed as an indebtedness against the insurance 
and, unless otherwise paid, shall be deducted from the proceeds. In 
such case, the liability of the Government under subsection (b) of 
this section shall be reduced by the amount so deducted from the 
proceeds. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1157, Sec. 724; Pub. L. 
92-197, Sec. 7, Dec. 
15, 1971, 85 Stat. 662; renumbered Sec. 1924 and amended Pub. L. 
102-83, Sec. 
4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1925. Limited period for acquiring insurance 

(a) Any person (other than a person referred to in subsection 
(f) of this section) heretofore eligible to apply for National Service 
Life Insurance after October 7, 1940, and before January 1, 1957, 
who is found by the Secretary to be suffering (1) from a service-
connected disability or disabilities for which compensation would be 
payable if 10 percent or more in degree and except for which such 
person would be insurable according to the standards of good 
health established by the Secretary; or (2) from a non-service-
connected disability which renders such person uninsurable according 
to the standards of good health established by the Secretary and 
such person establishes to the satisfaction of the Secretary that 
such person is unable to obtain commercial life insurance at a 
substandard rate, shall, upon application in writing made before May 
2, 1966, compliance with the health requirements of this section 
and payment of the required premiums, be granted insurance 
under this section. 
(b) If, notwithstanding the applicantï¿½s service-connected disability, 
such person is insurable according to the standards of good 
health established by the Secretary, the insurance granted under 
this section shall be issued upon the same terms and conditions as 
are contained in the standard policies of National Service Life 
Insurance except (1) five-year level premium term insurance may not 
be issued; (2) the net premium rates shall be based on the 1958 
Commissioners Standard Ordinary Basic Mortality Table, increased at 
the time of issue by such an amount as the Secretary 
determines to be necessary for sound actuarial operations, and 
thereafter such premiums may be adjusted as the Secretary deter

Sec. 1925 CH. 19-INSURANCE 264 

mines to be so necessary but at intervals of not less than two 
years; (3) an additional premium to cover administrative costs to 
the Government as determined by the Secretary at times of issue 
shall be charged for insurance issued under this subsection and for 
any total disability income provision attached thereto, and thereafter 
such costs may be adjusted as the Secretary determines to be 
necessary but at intervals of not less than five years; (4) all cash, 
loan, extended and paid-up insurance values shall be based on the 
1958 Commissioners Standard Ordinary Basic Mortality Table; (5) 
all settlements on policies involving annuities shall be calculated 
on the basis of The Annuity Table for 1949; (6) all calculations in 
connection with insurance issued under this subsection shall be 
based on interest at the rate of 3 1/2 percent per annum; and (7) 
the insurance shall include such other changes in terms and conditions 
as the Secretary determines to be reasonable and practicable. 

(c) If the applicantï¿½s service-connected disability or disabilities 
render the applicant uninsurable according to the standards of 
good health established by the Secretary, or if the applicant has a 
non-service-connected disability which renders the applicant 
uninsurable according to the standards of good health established by 
the Secretary and such person establishes to the satisfaction of the 
Secretary that such person is unable to obtain commercial life 
insurance at a substandard rate and such uninsurability existed as 
of the date of approval of this section, the insurance granted under 
this section shall be issued upon the same terms and conditions as 
are contained in standard policies of National Service Life 
Insurance, except (1) five-year level premium term insurance may not be 
issued; (2) the premiums charged for the insurance issued under 
this subsection shall be increased at the time of issue by such an 
amount as the Secretary determines to be necessary for sound actuarial 
operations and thereafter such premiums may be adjusted 
from time to time as the Secretary determines to be necessary; for 
the purpose of any increase at time of issue or later adjustment the 
service-connected group and the non-service-connected group may 
be separately classified; (3) an additional premium to cover 
administrative costs to the Government as determined by the Secretary 
at the time of issue shall be charged for insurance issued under 
this subsection and for any total disability income provision 
attached thereto (for which the insured may subsequently become 
eligible) and thereafter such costs may be adjusted as the Secretary 
determines to be necessary but at intervals of not less than five 
years and for this purpose the service-connected and non-
serviceconnected can be separately classified; (4) all settlements on 
policies involving annuities shall be calculated on the basis of The 
Annuity Table for 1949; (5) all calculations in connection with 
insurance issued under this subsection shall be based on interest at the 
rate of 3 1/2 percent per annum; and (6) the insurance shall include 
such other changes in terms and conditions as the Secretary 
determines to be reasonable and practicable. 
(d)(1) All premiums and collections on insurance issued pursuant to 
this section and any total disability income provision attached 
thereto shall be credited to the Veterans Reopened Insurance Fund, a 
revolving fund established in the Treasury of the 
United States, and all payments on such insurance and any total 


265 CH. 19-INSURANCE Sec. 1925 

disability provision attached thereto, including payments of dividends 
and refunds of unearned premiums, shall be made from that 
fund and the interest earned on the assets of that fund. For actuarial 
and accounting purposes, the assets and liabilities (including 
liabilities for repayment of advances hereinafter authorized, and 
adjustment of premiums) attributable to the insured groups established 
under this section shall be separately determined. Such 
amounts in the Veterans Special Term Insurance Fund in the 
Treasury, not exceeding $1,650,000 in the aggregate, as may hereafter 
be determined by the Secretary to be in excess of the actuarial 
liabilities of that fund, including contingency reserves, shall 
be available for transfer to the Veterans Reopened Insurance Fund 
as needed to provide initial capital. Any amounts so transferred 
shall be repaid to the Treasury over a reasonable period of time 
with interest as determined by the Secretary of the Treasury taking 
into consideration the average yield on all marketable interest-
bearing obligations of the United States of comparable maturities 
then forming a part of the public debt. 

(2) The Secretary is authorized to set aside out of the revolving 
fund established under this section such reserve amounts as may 
be required under accepted actuarial principles to meet all liabilities 
on insurance issued under this section and any total disability 
income provision attached thereto. The Secretary of the Treasury 
is authorized to invest in and to sell and retire special interest-
bearing obligations of the United States for the account of the 
revolving fund. Such obligations issued for this purpose shall have 
maturities fixed with due regard for the needs of the fund and 
shall bear interest at a rate equal to the average market yield 
(computed by the Secretary of the Treasury on the basis of market 
quotations as of the end of the calendar month next preceding the 
date of issue) on all marketable interest-bearing obligations of the 
United States then forming a part of the public debt which are not 
due or callable until after the expiration of four years from the end 
of such calendar month; except that where such average market 
yield is not a multiple of one-eighth of 1 percent, the rate of 
interest of such obligation shall be the multiple of one-eighth of 1 
percent nearest such market yield. 
(3) Notwithstanding the provisions of section 1982 of this title, 
the Secretary shall, from time to time, determine the administrative 
costs to the Government which in the Secretaryï¿½s judgment are 
properly allocable to insurance issued under this section and any 
total disability income provision attached thereto, and shall transfer 
from the revolving fund, the amount of such cost allocable to 
the Department to the appropriation ï¿½ï¿½General Operating Expenses, 
Department of Veterans Affairsï¿½ï¿½, and the remainder of such cost to 
the general fund receipts in the Treasury. The initial administrative 
costs of issuing insurance under this section and any total disability 
income provision attached thereto shall be so transferred 
over such period of time as the Secretary determines to be reasonable 
and practicable. 
(e) Notwithstanding the provisions of section 1982 of this title, 
a medical examination (including any supplemental examination or 
tests) when required of an applicant for issuance of insurance 
under this section or any total disability income provisions at

Sec. 1926 CH. 19-INSURANCE 266 

tached thereto shall be at the applicantï¿½s own expense by a duly 
licensed physician. 

(f) No insurance shall be granted under this section to any person 
referred to in section 107 of this title or to any person while 
on active duty or active duty for training under a call or order to 
such duty for a period of thirty-one days or more. 
(Added Pub. L. 88-664, Sec. 12(a), Oct. 13, 1964, 78 Stat. 1096, Sec. 
725; amended 
Pub. L. 89-40, June 14, 1965, 79 Stat. 130; Pub. L. 96-128, title III, 
Sec. 301, Nov. 
28, 1979, 93 Stat. 985; Pub. L. 97-295, Sec. 4(25), Oct. 12, 1982, 96 
Stat. 1306; Pub. 

L. 99-576, title VII, Sec. 701(28), Oct. 28, 1986, 100 Stat. 3292; 
renumbered Sec. 
1925 and amended Pub. L. 102-83, Sec. 4(a)(2)(B)(ii), (3), (4), (b)(1), 
(2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 403-406.) 
ï¿½ 1926. Authority for higher interest rates for amounts payable to 
beneficiaries 

Notwithstanding sections 1902, 1923, and 1925 of this title, if 
the beneficiary of an insurance policy receives the proceeds of such 
policy under a settlement option under which such proceeds are 
paid in equal monthly installments over a limited period of months, 
the interest that may be added to each such installment may be 
at a rate that is higher than the interest rate prescribed in the 
appropriate section of this subchapter. The Secretary may from time 
to time establish a higher interest rate under the preceding sentence 
only in accordance with a determination that such higher 
rate is administratively and actuarially sound for the program of 
insurance concerned. Any such higher interest rate shall be paid on 
the unpaid balance of such monthly installments. 

(Added Pub. L. 96-128, title III, Sec. 302(a), Nov. 28, 1979, 93 Stat. 
986, Sec. 726; 
renumbered Sec. 1926 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1927. Authority for higher monthly installments payable to 
certain annuitants 

(a) Subject to subsections (b) and (c) of this section, the Secretary 
may from time to time adjust the dollar amount of the 
monthly installments payable to a beneficiary of National Service 
Life Insurance, Veterans Special Life Insurance, or Veterans Reopened 
Insurance who is receiving the proceeds of such insurance 
under a life annuity settlement option. The Secretary may make 
such an adjustment only if the Secretary determines that the 
adjustment is administratively and actuarially sound for the program 
of insurance concerned. The Secretary may make such an adjustment 
without regard to the provisions of sections 1902, 1923, and 
1925 of this title with respect to interest rates and the use of 
mortality tables. 
(b) The Secretary shall determine the amount in the trust 
funds in the Treasury held for payment of proceeds to National 
Service Life Insurance, Veterans Special Life Insurance, and 
Veterans Reopened Insurance beneficiaries attributable to interest and 
mortality gains on the reserves held for annuity accounts. Such 
amount shall be available for distribution to the life annuitants 
referred to in subsection (a) of this section as a fixed percentage of, 
and in addition to, the monthly installment amount to which the 
annuitants are entitled under this subchapter. For the purposes of 

267 CH. 19-INSURANCE Sec. 1940 

this section, gains on the reserves are defined as funds attributable 
solely to annuity accounts that are in excess of actuarial liabilities. 

(c) The monthly amount of an annuity authorized in sections 
1902, 1923, and 1925 of this title, as adjusted under this section, 
may not be less than the monthly amount of such annuity that 
would otherwise be applicable without regard to this section. 
(Added Pub. L. 100-322, title III, Sec. 331(a)(1), May 20, 1988, 102 
Stat. 536, Sec. 
727; renumbered Sec. 1927 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1928. Authority for payment of interest on settlements 

(a) Subject to subsection (b) of this section, the Secretary may 
pay interest on the proceeds of a participating National Service 
Life Insurance, Veteransï¿½ Special Life Insurance, and Veterans Reopened 
Insurance policy from the date the policy matures to the 
date of payment of the proceeds to the beneficiary or, in the case 
of an endowment policy, to the policyholder. 
(b)(1) The Secretary may pay interest under subsection (a) of 
this section only if the Secretary determines that the payment of 
such interest is administratively and actuarially sound for the 
settlement option involved. 

(2) Interest paid under subsection (a) of this section shall be 
at the rate that is established by the Secretary for dividends held 
on credit or deposit in policyholdersï¿½ accounts under the insurance 
program involved. 
(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(a)(1), Nov. 18, 
1988, 102 Stat. 
4128, Sec. 728; renumbered Sec. 1928 and amended Pub. L. 102-83, Sec. 
4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1929. Authority to adjust premium discount rates 

(a) Notwithstanding sections 1902, 1923, and 1925 of this title 
and subject to subsection (b) of this section, the Secretary may from 
time to time adjust the discount rates for premiums paid in advance on 
National Service Life Insurance, Veteransï¿½ Special Life Insurance, and 
Veterans Reopened Insurance. 
(b)(1) In adjusting a discount rate pursuant to subsection (a) 
of this section, the Secretary may not set such rate at a rate lower 
than the rate authorized for the program of insurance involved 
under section 1902, 1923, or 1925 of this title. 

(2) The Secretary may make an adjustment under subsection 
(a) of this section only if the Secretary determines that the 
adjustment is administratively and actuarially sound for the program of 
insurance involved. 
(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(b)(1), Nov. 18, 
1988, 102 Stat. 
4129, Sec. 729; renumbered Sec. 1929 and amended Pub. L. 102-83, Sec. 
4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 

SUBCHAPTER II-UNITED STATES GOVERNMENT LIFE 
INSURANCE 


ï¿½ 1940. Definition 

For the purposes of this subchapter, the term ï¿½ï¿½insuranceï¿½ï¿½ 
means United States Government life insurance. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 740; renumbered 
Sec. 1940, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

Sec. 1941 CH. 19-INSURANCE 268 

ï¿½ 1941. Amount of insurance 

United States Government life insurance shall be issued 
against death or total permanent disability in any multiple of $500 
and not less than $1,000 or more than $10,000. No person may 
carry a combined amount of National Service Life Insurance and 
United States Government life insurance in excess of $10,000 at 
any one time. The limitations of this section shall not apply to the 
additional paid up insurance the purchase of which is authorized 
under section 1907 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 741; Pub. L. 
92-188, Sec. 1, Dec. 
15, 1971, 85 Stat. 645; renumbered Sec. 1941 and amended Pub. L. 
102-83, Sec. 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1942. Plans of insurance 

(a) Regulations shall provide for the right to convert insurance 
on the five-year level premium term plan into ordinary life, twenty-
payment life, endowment maturing at age sixty-two, and into other 
usual forms of insurance as may be prescribed by the Secretary. 
Provision shall be made for reconversion of any such policies to a 
higher premium rate or, upon proof of good health satisfactory to 
the Secretary, to a lower premium rate, in accordance with regulations 
to be issued by the Secretary. No reconversion shall be made 
to a five-year level premium term policy. 
(b) An insured who on or after the insuredï¿½s sixty-fifth birthday 
has a five-year level premium term policy of insurance in force by 
payment of premiums may exchange such policy for insurance on 
a special endowment at age ninety-six plan upon written application; 
payment of the required premium; and surrender of the five-
year level premium term policy and any total disability provision 
attached thereto with all rights, title, and interests thereunder. 
However, if it is found by the Secretary subsequent to the exchange 
that prior thereto the term policy matured because of total permanent 
disability of the insured or that the insured was entitled to 
total disability benefits under the total disability provision attached 
to such policy, the insured, upon surrender of the special endowment at 
age ninety-six policy and any provision for waiver of premiums issued 
under subsection (c) of this section with all rights, 
title, and interest thereunder, will be entitled to benefits payable 
under the prior contract. In such case, the cash value less any 
indebtedness on the endowment policy shall be refunded together 
with any premiums paid on a provision for waiver of premiums. Insurance 
on the special endowment at age ninety-six plan shall be 
issued at the attained age of the insured upon the same terms and 
conditions as are contained in standard policies of United States 
Government Life Insurance except: 
(1) the insurance shall not mature and no benefits shall be 
paid thereunder because of total permanent disability; 
(2) the premiums for such insurance shall be as prescribed 
by the Secretary; 
(3) such insurance cannot be exchanged, converted, or reconverted to 
any other plan of insurance; 
(4) all cash, loan, paid-up, and extended term insurance 
values shall be as prescribed by the Secretary; and 

269 CH. 19-INSURANCE Sec. 1943 

(5) the insurance shall be subject to such other changes in 
terms and conditions as the Secretary determines to be reasonable and 
practicable. 
(c) The Secretary shall, upon application made by the insured 
at the same time as the insured exchanges the term policy for an 
endowment policy issued under the provisions of subsection (b) of 
this section, and upon payment of such extra premium as the Secretary 
shall prescribe, include in such endowment policy a provision for waiver 
of premiums on the policy and on the provision during the total 
permanent disability of the insured, if such disability 
began after the date of such application and while the policy and 
the provision are in force by payment of premiums. The Secretary 
shall not grant waiver of any premium becoming due more than 
one year before receipt by the Secretary of claim for the same, except 
as provided in this subsection. Any premiums paid for months 
during which waiver is effective shall be refunded. The Secretary 
shall provide by regulations for examination or reexamination of an 
insured claiming waiver of premiums under this subsection, and 
may deny waiver for failure to cooperate. If it is found that an 
insured is no longer totally and permanently disabled, the waiver of 
premiums shall cease as of the date of such finding and the policy 
and provision may be continued by payment of premiums as provided 
therein. In any case in which the Secretary finds that the insuredï¿½s 
failure to make timely claim for waiver of premiums, or to 
submit satisfactory evidence of the existence or continuance of total 
permanent disability was due to circumstances beyond the insuredï¿½s 
control, the Secretary may grant waiver or continuance of 
waiver of premiums. If the insured dies without filing claim for 
waiver, the beneficiary, within one year after the death of the 
insured, or, if the beneficiary is insane or a minor, within one year 
after removal of such legal disability, may file claim for waiver 
with evidence of the insuredï¿½s right to waiver under this subsection. 
Policies containing a provision for waiver of premiums 
issued under this subsection may be separately classified for the 
purpose of dividend distribution from otherwise similar policies not 
containing such provision. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 742; Pub. L. 
87-549, July 25, 
1962, 76 Stat. 219; Pub. L. 99-576, title VII, Sec. 701(29), Oct. 28, 
1986, 100 Stat. 
3292; renumbered Sec. 1942 and amended Pub. L. 102-83, Sec. 
4(a)(2)(C)(iii), (b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1943. Premiums 

The premium rates for insurance shall be the net rates based 
upon the American Experience Table of Mortality and interest at 
3 1/2 percent per annum. Regulations shall prescribe the time and 
method of payment of premiums, but payments of premiums in advance 
shall not be required for periods of more than one month 
each, and may be deducted from the pay or deposit of the insured 
or be otherwise made at the insuredï¿½s election. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 743; Pub. L. 
97-295, Sec. 4(26), 
Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, Sec. 701(30), 
Oct. 28, 1986, 
100 Stat. 3293; renumbered Sec. 1943, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 
Stat. 406.) 


Sec. 1944 CH. 19-INSURANCE 270 

ï¿½ 1944. Policy provisions 

(a) Provisions for maturity at certain ages, for continuous 
installments during the lifetime of the insured or beneficiaries, or 
both, for refund of premiums, cash, loan, paid-up and extended values, 
dividends from gains and savings, and such other provisions 
for the protection and advantage of and for alternative benefits to 
the insured and the beneficiaries as may be found to be reasonable 
and practicable may be provided for in insurance contracts or from 
time to time by regulations. 
(b) All calculations on insurance shall be based upon the American 
Experience Table of Mortality and interest at 3 1/2 percent per 
annum, except that no deduction shall be made for continuous 
installments during the life of the insured in case the insuredï¿½s total 
and permanent disability continues more than two hundred and 
forty months. 
(c) On and after July 19, 1939, the rate of interest charged on 
any loan secured by a lien on insurance shall not exceed 5 percent 
per annum. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 744; Pub. L. 
97-295, Sec. 4(26), 
Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, Sec. 701(30), 
Oct. 28, 1986, 
100 Stat. 3293; renumbered Sec. 1944, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 1945. Renewal 

At the expiration of any term period any insurance policy 
issued on the five-year level premium term plan which has not 
been exchanged or converted to a permanent plan of insurance and 
which is not lapsed shall be renewed as level premium term insurance
without application for a successive five-year period at the 
premium rate for the attained age without medical examination. 
However, renewal shall be effected in cases where the policy is 
lapsed only if the insured makes application for reinstatement and 
renewal of the insuredï¿½s term policy within five years after the date 
of lapse, and reinstatement in such cases shall be under the terms 
and conditions prescribed by the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 745; Pub. L. 
91-291, Sec. 11, 
June 25, 1970, 84 Stat. 331; Pub. L. 99-576, title VII, Sec. 701(30), 
Oct. 28, 1986, 
100 Stat. 3293; renumbered Sec. 1945 and amended Pub. L. 102-83, 
Sec. 4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1946. Dividends to pay premiums 

Until and unless the Secretary has received from the insured 
a request in writing for payment of dividends in cash or that the 
dividends be placed on deposit in accordance with the provisions of 
the insuredï¿½s policy, any regular annual dividends shall be applied 
in payment of premiums becoming due on insurance after the date 
the dividend is payable on or after December 31, 1958. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 746; Pub. L. 
99-576, title VII, 
Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1946 and 
amended 
Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(V), 5(a), Aug. 6, 1991, 105 Stat. 
403, 406.) 

ï¿½ 1947. Incontestability 

Subject to the provisions of section 1954 of this title all contracts 
or policies of insurance heretofore or hereafter issued, rein


271 CH. 19-INSURANCE Sec. 1948 

stated, or converted shall be incontestable from the date of 
issuance, reinstatement, or conversion, except for fraud, nonpayment of 
premiums, or on the ground that the applicant was not 
a member of the military or naval forces of the United States. The 
insured under such contract or policy may, without prejudicing the 
insuredï¿½s rights, elect to make claim to the Department or to bring 
suit under section 1984 of this title on any prior contract or policy, 
and if found entitled thereto, shall, upon surrender of any subsequent 
contract or policy, be entitled to payments under the prior 
contract or policy. In any case in which a contract or policy of 
insurance is canceled or voided after March 16, 1954, because of 
fraud, the Secretary shall refund to the insured, if living, or, if 
deceased, to the person designated as beneficiary (or if none survives, 
to the estate of the insured) all money, without interest, paid as 
premiums on such contract or policy for any period subsequent to 
two years after the date such fraud induced the Secretary to issue, 
reinstate, or convert such insurance less any dividends, loan, or 
other payment made to the insured under such contract or policy. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 747; Pub. L. 
99-576, title VII, 
Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1947 
and amended 
Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(VI), (3), (4), (b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 403-406.) 

ï¿½ 1948. Total disability provision 

The Secretary shall include in United States Government life 
insurance policies provision whereby an insured, who is totally 
disabled as a result of disease or injury for a period of four 
consecutive months or more before attaining the age of sixty-five 
years and 
before default in payment of any premium, shall be paid disability 
benefits at the rate of $5.75 monthly for each $1,000 of insurance 
in force when total disability benefits become payable. The amount 
of such monthly payment under the provisions of this section shall 
not be reduced because of payment of permanent and total disability 
benefits under the insurance policy. Such payments shall be 
effective as of the first day of the fifth consecutive month, and shall 
be made monthly during the continuance of such total disability. 
Such payments shall be concurrent with or independent of permanent and 
total disability benefits under the insurance policy. In addition to 
the monthly disability benefits the payment of premiums 
on the life insurance and for the total disability benefits authorized 
by this section shall be waived during the continuance of such total 
disability. Regulations shall provide for reexaminations of 
beneficiaries under this section; and, in the event that it is found 
that an insured is no longer totally disabled, the waiver of premiums 
and payment of benefits shall cease and the insurance policy, including 
the total disability provision, may be continued by payment 
of premiums as provided in said policy and the total disability 
provision. Neither the dividends nor the amount payable in any 
settlement under any United States Government life insurance policy 
shall be decreased because of disability benefits granted under the 
provisions of this section. The payment of total disability benefits 
shall not prejudice the right of any insured, who is totally and 
permanently disabled, to permanent and total disability benefits under 
the insuredï¿½s insurance policy. The provision authorized by this sec


Sec. 1949 CH. 19-INSURANCE 272 

tion shall not be included in any United States Government life 
insurance policy heretofore or hereafter issued, except upon 
application, payment of premium by the insured, and proof of good health 
satisfactory to the Secretary. The benefit granted under this section 
shall be on the basis of multiples of $500, and not less than $1,000 
or more than the amount of insurance in force at time of application. 
The Secretary shall determine the amount of the monthly premium to cover 
the benefits of this section, and in order to continue 
such benefits in force the monthly premiums shall be payable until 
the insured attains the age of sixty-five years or until the prior 
maturity of the policy. In all other respects such monthly premium 
shall be payable under the same terms and conditions as the regular
monthly premium on the United States Government life insurance policy. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 748; Pub. L. 97-295, 
Sec. 4(27), 
Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, Sec. 701(30), 
Oct. 28, 1986, 
100 Stat. 3293; renumbered Sec. 1948 and amended Pub. L. 102-83, Sec. 
4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1949. Change of beneficiary 

Subject to regulations, the insured shall at all times have the 
right to change the beneficiary or beneficiaries of a United States 
Government life insurance policy without the consent of such 
beneficiary or beneficiaries. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1160, Sec. 749; renumbered 
Sec. 1949, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1950. Payment to estates 

If no beneficiary of insurance is designated by the insured, either 
while alive or by last will, or if the designated beneficiary does 
not survive the insured, then there shall be paid to the estate of 
the insured the present value of the remaining unpaid monthly 
installments. If the designated beneficiary survives the insured and 
dies before receiving all of the installments of insurance payable 
and applicable, then there shall be paid to the estate of such 
beneficiary the present value of the remaining unpaid monthly 
installments. No payments shall be made to any estate which under the 
laws of the residence of the insured or the beneficiary, as the case 
may be, would escheat, but same shall escheat to the United States 
and be credited to the United States Government Life Insurance 
Fund. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1160, Sec. 750; Pub. L. 
99-576, title VII, 
Sec. 701(31), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1950,
Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1951. Payment of insurance 

United States Government life insurance, except as provided in 
this subchapter, shall be payable in two hundred and forty equal 
monthly installments. When the amount of an individual monthly 
payment is less than $5, such amount may in the discretion of the 
Secretary be allowed to accumulate without interest and be disbursed 
annually. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 751; renumbered 
Sec. 1951 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.) 


273 CH. 19-INSURANCE Sec. 1952 

ï¿½ 1952. Optional settlement 

(a) The Secretary may provide in insurance contracts for optional 
settlements, to be selected by the insured, whereby such insurance 
may be made payable either in one sum or in installments 
for thirty-six months or more. A provision may also be included in 
such contracts authorizing the beneficiary to elect to receive payment 
of the insurance in installments for thirty-six months or 
more, but only if the insured has not exercised the right of election 
as provided in this subchapter. Even though the insured may have 
exercised the right of election the beneficiary may elect to receive 
such insurance in installments spread over a greater period of time 
than that selected by the insured. Notwithstanding any provision 
to the contrary in any insurance contract, the beneficiary may, in 
the case of insurance maturing after September 30, 1981, and for 
which the insured has not exercised the right of election of the 
insured as provided in this subchapter, elect to receive payment of 
the insurance in one sum. 
(b) Under such regulations as the Secretary may promulgate, 
the cash surrender value of any policy of insurance or the proceeds 
of an endowment contract which matures by reason of completion 
of the endowment period may be paid to the insured (1) in equal 
monthly installments of from thirty-six to two hundred and forty 
in number, in multiples of twelve; or (2) as a refund life income in 
monthly installments payable for such periods certain as may be 
required in order that the sum of the installments certain, including 
a last installment of such reduced amount as may be necessary, 
shall equal the cash value of the contract, less any indebtedness, 
with such payments continuing throughout the lifetime of the insured. 
However, all settlements under option (2) above shall be calculated 
on the basis of The Annuity Table for 1949. If the option 
selected requires payment of monthly installments of less than $10, 
the amount payable shall be paid in such maximum number of 
monthly installments as are a multiple of twelve as will provide a 
monthly installment of not less than $10. 
(c)(1) Following the death of the insured and in a case not covered 
by section 1950 of this title- 

(A) if the first beneficiary otherwise entitled to payment of 
the insurance does not make a claim for such payment within 
two years after the death of the insured, payment may be 
made to another beneficiary designated by the insured, in the 
order of precedence as designated by the insured, as if the first 
beneficiary had predeceased the insured; and 
(B) if, within four years after the death of the insured, no 
claim has been filed by a person designated by the insured as 
a beneficiary and the Secretary has not received any notice in 
writing that any such claim will be made, payment may (notwithstanding 
any other provision of law) be made to such person as may in the 
judgment of the Secretary be equitably entitled thereto. 
(2) Payment of insurance under paragraph (1) shall be a bar 
to recovery by any other person. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 752; Pub. L. 91-291, 
Sec. 12, 
June 25, 1970, 84 Stat. 332; Pub. L. 97-66, title IV, Sec. 403(b), Oct.
17, 1981, 95 
Stat. 1031; Pub. L. 99-576, title VII, Sec. 701(32), Oct. 28, 1986, 100 
Stat. 3293; 


Sec. 1953 CH. 19-INSURANCE 274 

renumbered Sec. 1952 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), Aug. 
6, 1991, 105 Stat. 404-406; Pub. L. 108-183, title I, Sec. 103(b), Dec. 
16, 2003, 117 
Stat. 2655.) 

ï¿½ 1953. Assignments 

Any person to whom United States Government life insurance 
shall be payable may assign such personï¿½s interest in such insurance to 
the spouse, child, grandchild, parent, brother, sister, uncle, 
aunt, nephew, niece, brother-in-law, or sister-in-law of the insured. 
Insofar as applicable, the definitions contained in section 3 of the 
World War Veteransï¿½ Act, 1924, in effect on December 31, 1958, 
shall apply to this section. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 753; Pub. L. 
96-128, title III, 
Sec. 304, Nov. 28, 1979, 93 Stat. 986; renumbered Sec. 1953, Pub. L. 
102-83, Sec. 
5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1954. Forfeiture 

No yearly renewable term insurance or United States Government life 
insurance shall be payable for death inflicted as a lawful 
punishment for crime or military offense, except when inflicted by 
the enemy. In such cases the cash surrender value of United States 
Government life insurance, if any, on the date of such death shall 
be paid to the designated beneficiary if living, or if there be no 
designated beneficiary alive at the death of the insured the said value 
shall be paid to the estate of the insured. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 754; renumbered 
Sec. 1954, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1955. United States Government Life Insurance Fund 

(a) All premiums paid on account of United States Government 
life insurance shall be deposited and covered into the Treasury to 
the credit of the United States Government Life Insurance Fund 
and shall be available for the payment of losses, dividends, refunds, 
and other benefits provided for under such insurance, including 
such liabilities as shall have been or shall hereafter be reduced to 
judgment in a district court of the United States or the United 
States District Court for the District of Columbia, and for the 
reimbursement of administrative costs under subsection (c). Payments 
from this fund shall be made upon and in accordance with awards 
by the Secretary. 
(b) The Secretary is authorized to set aside out of the funds so 
collected such reserve funds as may be required, under accepted 
actuarial principles, to meet all liabilities under such insurance; and 
the Secretary of the Treasury is authorized to invest and reinvest 
the said United States Government Life Insurance Fund, or any 
part thereof, in interest-bearing obligations of the United States or 
bonds of the Federal farm-loan banks and to sell said obligations 
of the United States or the bonds of the Federal farm-loan banks 
for the purposes of such Fund. 
(c)(1) For each fiscal year for which this subsection is in effect, 
the Secretary shall, from the United States Government Life Insurance 
Fund, reimburse the ï¿½ï¿½General operating expensesï¿½ï¿½ account of 
the Department for the amount of administrative costs determined 
under paragraph (2) for that fiscal year. Such reimbursement shall 
be made from any surplus earnings for that fiscal year that are 


275 CH. 19-INSURANCE Sec. 1957 

available for dividends on such insurance after claims have been 
paid and actuarially determined reserves have been set aside. However, 
if the amount of such administrative costs exceeds the 
amount of such surplus earnings, such reimbursement shall be 
made only to the extent of such surplus earnings. 

(2) The Secretary shall determine the administrative costs to 
the Department for a fiscal year for which this subsection is in effect 
which, in the judgment of the Secretary, are properly allocable 
to the provision of United States Government Life Insurance (and 
to the provision of any total disability income insurance added to 
the provision of such insurance). 
(3) This subsection shall be in effect only with respect to fiscal 
year 1996. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 755; renumbered 
Sec. 1955 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 
105 Stat. 404-406; 
Pub. L. 104-99, title II, Sec. 201(b), Jan. 26, 1996, 110 Stat. 36.) 

ï¿½ 1956. Military and naval insurance appropriation 

All sums heretofore or hereafter appropriated for the military 
and naval insurance appropriation and all premiums collected for 
yearly renewable term insurance deposited and covered into the 
Treasury to the credit of this appropriation shall be made available 
to the Department. All premiums that may hereafter be collected 
for yearly renewable term insurance shall be deposited and covered 
into the Treasury for the credit of this appropriation. Such sum is 
made available for the payment of the liabilities of the United 
States incurred under contracts of yearly renewable term insurance. 
Payments from this appropriation shall be made upon and in 
accordance with the awards by the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1162, Sec. 756; renumbered 
Sec. 1956 and 
amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 
6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1957. Extra hazard costs 

(a) The United States shall bear the excess mortality and disability 
cost resulting from the hazards of war on United States 
Government life insurance. 
(b) Whenever benefits under United States Government life insurance 
become, or have become, payable because of total permanent disability 
of the insured or because of the death of the insured 
as a result of disease or injury traceable to the extra hazard of the 
military or naval service, as such hazard may be determined by the 
Secretary, the liability shall be borne by the United States. In such 
cases the Secretary shall transfer from the military and naval insurance 
appropriation to the United States Government Life Insurance Fund a sum 
which, together with the reserve of the policy at 
the time of maturity by total permanent disability or death, will 
equal the then value of such benefits. When a person receiving 
total permanent disability benefits under a United States Government 
life insurance policy recovers from such disability and is then 
entitled to continue a reduced amount of insurance, the Secretary 
shall transfer to the military and naval insurance appropriation all 
of the loss reserve to the credit of such policy claim except a sum 
sufficient to set up the then required reserve on the reduced 

Sec. 1958 CH. 19-INSURANCE 276 

amount of the insurance that may be continued, which sum shall 
be retained in the United States Government Life Insurance Fund 
for the purpose of such reserve. 

(c) Whenever benefits under the total disability provision become, or 
have become, payable because of total disability of the insured as a 
result of disease or injury traceable to the extra hazard 
of the military or naval service, as such hazard may be determined 
by the Secretary, the liability shall be borne by the United States, 
and the Secretary shall transfer from the military and naval insurance 
appropriation to the United States Government Life Insurance Fund from 
time to time any amounts which become or have 
become payable to the insured on account of such total disability, 
and shall transfer from the United States Government Life Insurance 
Fund to the military and naval insurance appropriation the 
amount of the reserve held on account of the total disability benefit. 
When a person receiving such payments on account of total 
disability recovers from such disability and is then entitled to 
continued protection under the total disability provision, the Secretary 
shall transfer to the United States Government Life Insurance 
Fund a sum sufficient to set up the then required reserve on such 
total disability benefit. 
(d) Any disability for which a waiver was required as a condition to 
tendering a person a commission under Public Law 816, 
Seventy-seventh Congress, shall be deemed to be a disability resulting 
from an injury or disease traceable to the extra hazard of 
military or naval service for the purpose of applying this section. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1162, Sec. 757; renumbered 
Sec. 1957 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1958. Statutory total permanent disability 

Without prejudice to any other cause of disability, the permanent loss 
of the use of both feet, of both hands, or of both eyes, or 
of one foot and one hand, or of one foot and one eye, or of one hand 
and one eye, or the loss of hearing of both ears, or the organic loss 
of speech, shall be deemed total permanent disability for insurance 
purposes. This section shall be deemed to be in effect on and after 
April 6, 1917, and shall apply only to automatic insurance, yearly 
renewable term insurance, and United States Government life insurance 
issued prior to December 15, 1936. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 758; renumbered 
Sec. 1958, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1959. Waiver of disability for reinstatement 

(a) In the event that all provisions of the rules and regulations 
other than the requirements as to the physical condition of the 
applicant have been complied with, an application for reinstatement, 
in whole or in part, of lapsed United States Government life insurance 
may be approved if made within two years after the date of 
lapse and if the applicantï¿½s disability is the result of an injury or 
disease, or of an aggravation thereof, suffered or contracted in the 
active military or naval service during the period beginning April 
6, 1917, and ending July 2, 1921, and the applicant during the 
applicantï¿½s lifetime submits proof satisfactory to the Secretary showing 
that the applicant is not totally and permanently disabled. As 

277 CH. 19-INSURANCE Sec. 1960 

a condition to the acceptance of an application for reinstatement 
under this section, the applicant shall be required to pay all the 
back monthly premiums which would have become payable if such 
insurance had not lapsed, together with interest at the rate of 5 
per centum per annum, compounded annually, on each premium 
from the date said premium is due by the terms of the policy. 

(b) Premium liens established under the provisions of section 
304 of the World War Veteransï¿½ Act, 1924, shall continue to bear 
interest at the rate of 5 per centum per annum, compounded annually, 
and will be deducted from any settlement of insurance to 
which they are attached. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 759; Pub. L. 99-576, 
title VII, 
Sec. 701(33), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1959 and
amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1960. Waiver of premium payments on due date 

(a) The Secretary is authorized to provide by regulations for 
waiving the payment of premiums on United States Government 
life insurance on the due date thereof and the insurance may be 
deemed not to lapse in the cases of the following persons: (1) those 
who are confined in hospital under the Department for a compensable 
disability during the period while they are so confined; (2) 
those who are rated as temporarily totally disabled by reason of 
any injury or disease entitling them to compensation during the period 
of such total disability and while they are so rated; (3) those 
who, while mentally incompetent and for whom no legal guardian 
had been or has been appointed, allowed or may allow their insurance 
to lapse during the period for which they have been or hereafter may 
be rated mentally incompetent, or until a guardian has 
notified the Department of the guardianï¿½s qualification, but not 
later than six months after appointment of a guardian. In mentally 
incompetent cases the waiver is to be made without application and 
retroactive when necessary. Relief from payment of premiums on 
the due date thereof shall be for full calendar months, beginning 
with the month in which said confinement to hospital, the temporary 
total disability rating, or the mental incompetency began or 
begins and ending with that month during the half or major fraction of 
which such persons are no longer entitled to waiver as provided above. 
(b) All premiums the payment of which when due is waived as 
provided in this section shall bear interest at the rate of 5 percent 
per annum, compounded annually, from the due date of each premium, and 
if not paid by the insured shall be deducted from the 
insurance in any settlement thereunder, or when the same matures 
either because of permanent total disability or death. In the event 
any lien or other indebtedness established by this section or prior 
corresponding provision of law exists against any policy of United 
States Government life insurance in excess of the then cash surrender 
value thereof at the time of the termination of such policy 
of insurance for any reason other than by death or total permanent 
disability the Secretary is authorized to transfer and pay from the 
military and naval insurance appropriation to the United States 
Government Life Insurance Fund a sum equal to the amount such 
lien or indebtedness exceeds the then cash surrender value. 

Sec. 1961 CH. 19-INSURANCE 278 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 760; Pub. L. 
97-295, Sec. 4(28), 
Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, Sec. 701(34), 
Oct. 28, 1986, 
100 Stat. 3293; renumbered Sec. 1960 and amended Pub. L. 102-83, Sec. 
4(a)(3), 
(4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1961. Authority for higher interest rates for amounts payable to 
beneficiaries 

Notwithstanding section 1944(b) of this title, if the beneficiary 
of an insurance policy issued under the provisions of this subchapter 
receives the proceeds of such policy under a settlement option under 
which such proceeds are paid in equal monthly installments over a 
limited period of months, the interest that may be 
added to each such installment may be at a rate that is higher 
than the interest rate prescribed in such section. The Secretary 
may from time to time establish a higher interest rate under the 
preceding sentence only in accordance with a determination that 
such higher rate is administratively and actuarially sound. Any 
such higher interest rate shall be paid on the unpaid balance of 
such monthly installments. 

(Added Pub. L. 96-128, title III, Sec. 303(a), Nov. 28, 1979, 93 Stat. 
986, Sec. 761; 
renumbered Sec. 1961 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1962. Authority for higher monthly installments payable to 
certain annuitants 

(a) Subject to subsections (b) and (c) of this section, the Secretary 
may from time to time adjust the dollar amount of the 
monthly installments payable to a beneficiary of United States 
Government Life Insurance who is receiving the proceeds of such 
insurance under a life annuity settlement option. The Secretary 
may make such an adjustment only if the Secretary determines 
that the adjustment is administratively and actuarially sound. The 
Secretary may make such an adjustment without regard to the provisions 
of section 1944 of this title with respect to interest rates 
and the use of mortality tables. 
(b) The Secretary shall determine the amount in the trust fund 
in the Treasury held for payment of proceeds to United States Government 
Life Insurance beneficiaries attributable to interest and 
mortality gains on the reserves held for annuity accounts. Such 
amount shall be available for distribution to the life annuitants 
referred to in subsection (a) of this section as a fixed percentage of, 
and in addition to, the monthly installment amount to which the 
annuitants are entitled under this subchapter. For the purposes of 
this section, gains on the reserves are defined as funds attributable 
solely to annuity accounts that are in excess of actuarial liabilities. 
(c) The monthly amount of an annuity authorized in section 
1944 of this title, as adjusted under this section, may not be less 
than the monthly amount of such annuity that would otherwise be 
applicable without regard to this section. 
(Added Pub. L. 100-322, title III, Sec. 331(b)(1), May 20, 1988, 102 
Stat. 536, Sec. 
762; renumbered Sec. 1962 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 404-406.) 


279 CH. 19-INSURANCE Sec. 1965 

ï¿½ 1963. Authority for payment of interest on settlements 

(a) Subject to subsection (b) of this section, the Secretary may 
pay interest on the proceeds of a United States Government Life 
Insurance policy from the date the policy matures to the date of 
payment of the proceeds to the beneficiary or, in the case of an 
endowment policy, to the policyholder. 
(b)(1) The Secretary may pay interest under subsection (a) of 
this section only if the Secretary determines that the payment of 
such interest is administratively and actuarially sound for the 
settlement option involved. 

(2) Interest paid under subsection (a) shall be at the rate that 
is established by the Secretary for dividends held on credit or 
deposit in policyholdersï¿½ accounts. 
(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(a)(2), Nov. 
18, 1988, 102 Stat. 
4128, Sec. 763; renumbered Sec. 1963 and amended Pub. L. 102-83, 
Sec. 4(b)(1), 
(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

SUBCHAPTER III-SERVICEMEMBERSï¿½ GROUP LIFE 
INSURANCE 


ï¿½ 1965. Definitions 

For the purpose of this subchapter- 

(1) The term ï¿½ï¿½active dutyï¿½ï¿½ means- 
(A) full-time duty in the Armed Forces, other than active duty for 
training; 
(B) full-time duty (other than for training purposes) as 
a commissioned officer of the Regular or Reserve Corps of 
the Public Health Service; 
(C) full-time duty as a commissioned officer of the National 
Oceanic and Atmospheric Administration; and 
(D) full-time duty as a cadet or midshipman at the 
United States Military Academy, United States Naval 
Academy, United States Air Force Academy, or the United 
States Coast Guard Academy. 
(2) The term ï¿½ï¿½active duty for trainingï¿½ï¿½ means- 
(A) full-time duty in the Armed Forces performed by 
Reserves for training purposes; 
(B) full-time duty for training purposes performed as 
a commissioned officer of the Reserve Corps of the Public 
Health Service; 
(C) full-time duty as a member, cadet, or midshipman 
of the Reserve Officers Training Corps while attending 
field training or practice cruises; and 
(D) in the case of members of the National Guard or 
Air National Guard of any State, full-time duty under sections 316,
502, 503, 504, or 505 of title 32, United States 
Code. 
(3) The term ï¿½ï¿½inactive duty trainingï¿½ï¿½ means- 
(A) duty (other than full-time duty) prescribed or authorized for 
Reserves (including commissioned officers of 
the Reserve Corps of the Public Health Service) which 
duty is scheduled in advance by competent authority to 
begin at a specific time and place; and 

Sec. 1965 CH. 19-INSURANCE 280 

(B) in the case of a member of the National Guard or 
Air National Guard of any State, such term means duty 
(other than full-time duty) which is scheduled in advance 
by competent authority to begin at a specific time and 
place under sections 316, 502, 503, 504, or 505 of title 32, 
United States Code. 
(4) The terms ï¿½ï¿½active duty for trainingï¿½ï¿½ and ï¿½ï¿½inactive duty 
trainingï¿½ï¿½ do not include duty performed as a temporary member of 
the Coast Guard Reserve, and the term ï¿½ï¿½inactive duty 
trainingï¿½ï¿½ does not include (A) work or study performed in 
connection with correspondence courses, or (B) attendance at an 
educational institution in an inactive status. 
(5) The term ï¿½ï¿½memberï¿½ï¿½ means- 
(A) a person on active duty, active duty for training, 
or inactive duty training in the uniformed services in a 
commissioned, warrant, or enlisted rank, or grade, or as a 
cadet or midshipman of the United States Military Academy, United 
States Naval Academy, United States Air 
Force Academy, or the United States Coast Guard Academy; 
(B) a person who volunteers for assignment to the 
Ready Reserve of a uniformed service and is assigned to a 
unit or position in which such person may be required to 
perform active duty, or active duty for training, and each 
year will be scheduled to perform at least twelve periods 
of inactive duty training that is creditable for retirement 
purposes under chapter 1223 of title 10 (or under chapter 
67 of that title as in effect before the effective date of the 
Reserve Officer Personnel Management Act); 
(C) a person who volunteers for assignment to a mobilization category 
in the Individual Ready Reserve, as defined in section 12304(i)(1) of 
title 10; and 
(D) a member, cadet, or midshipman of the Reserve 
Officers Training Corps while attending field training or 
practice cruises. 
(6) The term ï¿½ï¿½uniformed servicesï¿½ï¿½ means the Army, Navy, 
Air Force, Marine Corps, Coast Guard, the commissioned corps 
of the Public Health Service, and the commissioned corps of 
the National Oceanic and Atmospheric Administration. 
(7) The terms ï¿½ï¿½widowï¿½ï¿½ or ï¿½ï¿½widowerï¿½ï¿½ means a person who 
is the lawful spouse of the insured member at the time of his 
death. 
(8) The term ï¿½ï¿½childï¿½ï¿½ means a legitimate child, a legally 
adopted child, an illegitimate child as to the mother, or an 
illegitimate child as to the alleged father, only if (A) he 
acknowledged the child in writing signed by him; or (B) he has been 
judicially ordered to contribute to the childï¿½s support; or (C) he 
has been, before his death, judicially decreed to be the father 
of such child; or (D) proof of paternity is established by a certified 
copy of the public record of birth or church record of baptism showing 
that the insured was the informant and was 
named as father of the child; or (E) proof of paternity is established 
from service department or other public records, such as 

281 CH. 19-INSURANCE Sec. 1966 

school or welfare agencies, which show that with his knowledge the 
insured was named as the father of the child. 

(9) The term ï¿½ï¿½parentï¿½ï¿½ means a father of a legitimate child, 
mother of a legitimate child, father through adoption, mother 
through adoption, mother of an illegitimate child, and father of 
an illegitimate child but only if (A) he acknowledged paternity 
of the child in writing signed by him before the childï¿½s death; 
or (B) he has been judicially ordered to contribute to the childï¿½s 
support; or (C) he has been judicially decreed to be the father 
of such child; or (D) proof of paternity is established by a certified 
copy of the public record of birth or church record of baptism showing 
that the claimant was the informant and was 
named as father of the child; or (E) proof of paternity is established 
from service department or other public records, such as 
school or welfare agencies, which show that with his knowledge the 
claimant was named as father of the child. No person 
who abandoned or willfully failed to support a child during the 
childï¿½s minority, or consented to the childï¿½s adoption may be 
recognized as a parent for the purpose of this subchapter. However, the 
immediately preceding sentence shall not be applied 
so as to require duplicate payments in any case in which insurance 
benefits have been paid prior to receipt in the administrative office 
established under subsection 1966(b) of this title of 
sufficient evidence to clearly establish that the person so paid 
could not qualify as a parent solely by reason of such sentence. 
(10) The term ï¿½ï¿½insurable dependentï¿½ï¿½, with respect to a 
member, means the following: 
(A) The memberï¿½s spouse. 
(B) The memberï¿½s child, as defined in the first sentence of section
101(4)(A) of this title. 
(C) The memberï¿½s stillborn child. 
(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 880, Sec. 
765; amended 
Pub. L. 91-291, Sec. 1, June 25, 1970, 84 Stat. 326; Pub. L. 92-185, 
Sec. 1, Dec. 
15, 1971, 85 Stat. 642; Pub. L. 92-315, June 20, 1972, 86 Stat. 227; 
Pub. L. 93- 
289, Sec. 3, 10(1), May 24, 1974, 88 Stat. 165, 172; Pub. L. 99-576, 
title VII, Sec. 
701(35), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 102-54, Sec. 14(b)(16), 
June 13, 1991, 
105 Stat. 284; renumbered Sec. 1965 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-337, div. A, title VI, Sec. 
651(a), title XVI, 
Sec. 1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L. 104-275, 
title IV, Sec. 
402(a), Oct. 9, 1996, 110 Stat. 3337; Pub. L. 106-419, title IV, Sec. 
313(a), Nov. 1, 
2000, 114 Stat. 1854; Pub. L. 107-14, Sec. 4(a)(1), June 5, 2001, 115 
Stat. 26; Pub. 

L. 109-13, div. A, title I, Sec. 1032(a)(1), May 11, 2005, 119 Stat. 
257; Pub. L. 109- 
233, title V, Sec. 502(c)(1), June 15, 2006, 120 Stat. 415; Pub. L. 
110-389, title IV, 
Sec. 402(a), Oct. 10, 2008, 122 Stat. 4174.) 
ï¿½ 1966. Eligible insurance companies 

(a) The Secretary is authorized, without regard to section 3709 
of the Revised Statutes, as amended (41 U.S.C. 5), to purchase 
from one or more life insurance companies a policy or policies of 
group life insurance to provide the benefits specified in this 
subchapter. Each such life insurance company must (1) be licensed to 
issue life insurance in each of the fifty States of the United States 
and in the District of Columbia, and (2) as of the most recent December 
31 for which information is available to the Secretary, have 
in effect at least 1 percent of the total amount of group life insur

Sec. 1967 CH. 19-INSURANCE 282 

ance which all life insurance companies have in effect in the 
United States. 

(b) The life insurance company or companies issuing such policy or 
policies shall establish an administrative office at a place and 
under a name designated by the Secretary. 
(c) The Secretary shall arrange with the life insurance company or 
companies issuing any policy or policies under this subchapter to 
reinsure, under conditions approved by the Secretary, 
portions of the total amount of insurance under such policy or policies 
with such other life insurance companies (which meet qualifying criteria 
set forth by the Secretary) as may elect to participate 
in such reinsurance. 
(d) The Secretary may at any time discontinue any policy or 
policies which the Secretary has purchased from any insurance 
company under this subchapter. 
(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 880, Sec. 766; 
amended 
Pub. L. 97-295, Sec. 4(29), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, 
title VII, 
Sec. 701(36), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1966 and 
amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.) 

ï¿½ 1967. Persons insured; amount 

(a)(1) Subject to an election under paragraph (2), any policy of 
insurance purchased by the Secretary under section 1966 of this 
title shall automatically insure the following persons against death: 

(A) In the case of any member of a uniformed service on 
active duty (other than active duty for training)- 
(i) the member; and 
(ii) each insurable dependent of the member. 
(B) Any member of a uniformed service on active duty for 
training or inactive duty training scheduled in advance by competent 
authority. 
(C) In the case of any member of the Ready Reserve of a 
uniformed service who meets the qualifications set forth in 
subparagraph (B) or (C) of section 1965(5) of this title- 
(i) the member; and 
(ii) each insurable dependent of the member. 
(2)(A) A member may elect in writing not to be insured under 
this subchapter. 

(B) A member may elect in writing not to insure the memberï¿½s 
spouse under this subchapter. 
(3)(A) Subject to subparagraphs (B) and (C), the amount for 
which a person is insured under this subchapter is as follows: 

(i) In the case of a member, $400,000. 
(ii) In the case of a memberï¿½s spouse, $100,000. 
(iii) In the case of a memberï¿½s child, $10,000. 
(B) A member may elect in writing to be insured or to insure 
the memberï¿½s spouse in an amount less than the amount provided 
for under subparagraph (A). The member may not elect to insure 
the memberï¿½s child in an amount less than $10,000. The amount 
of insurance so elected shall, in the case of a member, be evenly 
divisible by $50,000 and, in the case of a memberï¿½s spouse,,(!1) be 
evenly divisible by $10,000. 

283 CH. 19-INSURANCE Sec. 1967 

(C) In no case may the amount of insurance coverage under 
this subsection of a memberï¿½s spouse exceed the amount of insurance 
coverage of the member. 
(4)(A) An insurable dependent of a member is not insured 
under this chapter unless the member is insured under this subchapter. 

(B) An insurable dependent who is a child may not be insured 
at any time by the insurance coverage under this chapter of more 
than one member. If an insurable dependent who is a child is otherwise 
eligible to be insured by the coverage of more than one 
member under this chapter, the child shall be insured by the coverage 
of the member whose eligibility for insurance under this subchapter 
occurred first, except that if that member does not have 
legal custody of the child, the child shall be insured by the coverage 
of the member who has legal custody of the child. 
(5) The insurance shall be effective with respect to a member 
and the insurable dependents of the member on the latest of the 
following dates: 
(A) The first day of active duty or active duty for training. 
(B) The beginning of a period of inactive duty training 
scheduled in advance by competent authority. 
(C) The first day a member of the Ready Reserve meets 
the qualifications set forth in subparagraph (B) or (C) of section 
1965(5) of this title. 
(D) The date certified by the Secretary to the Secretary 
concerned as the date Servicemembersï¿½ Group Life Insurance 
under this subchapter for the class or group concerned takes 
effect. 
(E) In the case of an insurable dependent who is a spouse, 
the date of marriage of the spouse to the member. 
(F) In the case of an insurable dependent who is a child, 
the date of birth of such child or, if the child is not the natural 
child of the member, the date on which the child acquires status as an 
insurable dependent of the member. 
(b) Any member (other than one who has elected not to be insured under 
this subchapter for the period or periods of duty involved)- 
(1) who, when authorized or required by competent authority, assumes an 
obligation to perform (for less than thirty-one 
days) active duty, or active duty for training, or inactive duty 
training scheduled in advance by competent authority; and 
(2) who is rendered uninsurable at standard premium 
rates according to the good health standards approved by the 
Secretary, or dies within one hundred and twenty days thereafter, from a 
disability, or aggravation of a preexisting disability, incurred by such 
member while proceeding directly to 
or returning directly from such active duty, active duty for 
training, or inactive duty training as the case may be; 
shall be deemed to have been on active duty, active duty for training, or 
inactive duty training, as the case may be, and to have been 
insured under this subchapter at the time such disability was incurred 
or aggravated, and if death occurs within one hundred and 
twenty days thereafter as a result of such disability to have been 
insured at the time of death. In determining whether or not such 


Sec. 1967 CH. 19-INSURANCE 284 

individual was so authorized or required to perform such duty, and 
whether or not such member was rendered uninsurable or died 
within one hundred and twenty days thereafter from a disability so 
incurred or aggravated, there shall be taken into account the call 
or order to duty, the orders and authorizations of competent authority, 
the hour on which the member began to so proceed or to 
return, the hour on which such member was scheduled to arrive 
for, or on which such member ceased to perform such duty; the 
method of travel employed; such memberï¿½s itinerary; the manner in 
which the travel was performed; and the immediate cause of disability 
or death. Whenever any claim is filed alleging that the 
claimant is entitled to benefits by reason of this subsection, the 
burden of proof shall be on the claimant. 

(c) If a person eligible for insurance under this subchapter is 
not so insured, or is insured for less than the maximum amount 
provided for the person under subparagraph (A) of subsection 
(a)(3), by reason of an election made by a member under subparagraph 
(B) of that subsection, the person may thereafter be insured 
under this subchapter in the maximum amount or any lesser 
amount elected as provided in such subparagraph (B) upon written 
application by the member, proof of good health of each person 
(other than a child) to be so insured, and compliance with such 
other terms and conditions as may be prescribed by the Secretary. 
Any former member insured under Veteransï¿½ Group Life Insurance 
who again becomes eligible for Servicemembersï¿½ Group Life Insurance 
and declines such coverage solely for the purpose of maintaining such 
memberï¿½s Veteransï¿½ Group Life Insurance in effect shall 
upon termination of coverage under Veteransï¿½ Group Life Insurance 
be automatically insured under Servicemembersï¿½ Group Life Insurance, 
if otherwise eligible therefor. 
(d) Whenever a member has the opportunity to make an election under 
subsection (a) not to be insured under this subchapter, 
or to be insured under this subchapter in an amount less than the 
maximum amount in effect under paragraph (3)(A)(i) of that subsection, 
and at such other times periodically thereafter as the Secretary 
concerned considers appropriate, the Secretary concerned 
shall furnish to the member general information concerning life 
insurance. Such information shall include- 
(1) the purpose and role of life insurance in financial planning; 
(2) the difference between term life insurance and whole 
life insurance; 
(3) the availability of commercial life insurance; and 
(4) the relationship between Servicemembersï¿½ Group Life 
Insurance and Veteransï¿½ Group Life Insurance. 
(e) The effective date and time for any change in benefits 
under the Servicemembersï¿½ Group Life Insurance Program shall be 
based on the date and time according to the time zone immediately 
west of the International Date Line. 
(f)(1) If a member who is married and who is eligible for insurance 
under this section makes an election under subsection 
(a)(2)(A) not to be insured under this subchapter, the Secretary 
concerned shall notify the memberï¿½s spouse, in writing, of that 
election. 


285 CH. 19-INSURANCE Sec. 1968 

(2) In the case of a member who is married and who is insured 
under this section and whose spouse is designated as a beneficiary 
of the member under this subchapter, whenever the member makes 
an election under subsection (a)(3)(B) for insurance of the member 
in an amount that is less than the maximum amount provided 
under subsection (a)(3)(A)(i), the Secretary concerned shall notify 
the memberï¿½s spouse, in writing, of that election- 
(A) in the case of the first such election; and 
(B) in the case of any subsequent such election if the effect 
of such election is to reduce the amount of insurance coverage 
of the member from that in effect immediately before such election. 
(3) In the case of a member who is married and who is insured 
under this section, if the member makes a designation under section 
1970(a) of this title of any person other than the spouse or a 
child of the member as the beneficiary of the member for any 
amount of insurance under this subchapter, the Secretary concerned 
shall notify the memberï¿½s spouse, in writing, that such a 
beneficiary designation has been made by the member, except that 
such a notification is not required if the spouse has previously 
received such a notification under this paragraph and if immediately 
before the new designation by the member under section 1970(a) 
of this title the spouse is not a designated beneficiary of the member 
for any amount of insurance under this subchapter. 
(4) A notification required by this subsection is satisfied by a 
good faith effort to provide the required information to the spouse 
at the last address of the spouse in the records of the Secretary 
concerned. Failure to provide a notification required under this 
subsection in a timely manner does not affect the validity of any 
election specified in paragraph (1) or (2) or beneficiary designation 
specified in paragraph (3). 
(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881, Sec. 
767; amended Pub. L. 91-291, Sec. 2, June 25, 1970, 84 Stat. 327; 
Pub. L. 93-289, Sec. 4, May 24, 1974, 88 Stat. 166; Pub. L. 97-66, 
title IV, Sec. 401(a), Oct. 17, 1981, 95 Stat. 1030; Pub. L. 99-166, 
title IV, Sec. 401(a), Dec. 3, 1985, 99 Stat. 956; Pub. L. 99-576, 
title VII, Sec. 701(37), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 102-25, 
title III, Sec. 336(a), Apr. 6, 1991, 105 Stat. 89; renumbered Sec. 
1967 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-568, title II, Sec. 201, 
Oct. 29, 1992, 106 Stat. 4324; Pub. L. 103-160, div. A, title XI, 
Sec. 1175(a), Nov. 30, 1993, 107 Stat. 1768; Pub. L. 103-337, div. A, 
title VI, Sec. 651(b), Oct. 5, 1994, 108 Stat. 2792; Pub. L. 104-106, 
div. A, title VI, Sec. 646, Feb. 10, 1996, 110 Stat. 369; Pub. L. 
104-275, title IV, Secs. 402(b), 404, 405(b)(1)(A), Oct. 9, 1996, 
110 Stat. 3337, 3339; Pub. L. 106-419, title III, Secs. 312(a), 313(b), 
Nov. 1, 2000, 114 Stat. 1854, 1855; Pub. L. 107-14, Sec. 4(b), June 
5, 2001, 115 Stat. 26; Pub. L. 109-13, div. A, title I, Sec. 1012(a)-
(c)(1), (d), (f), May 11, 2005, 119 Stat. 244-246; Pub. L. 109-80, 
Secs. 2, 3(a), 4, 5(a), Sept. 30, 2005, 119 Stat. 2045, 2046; Pub. 
L. 110-389, title IV, Sec. 403(a)(1), (2)(A), Oct. 10, 2008, 
122 Stat. 4174.) ï¿½ 1968. Duration and termination of coverage; 
conversion 

(a) Each policy purchased under this subchapter shall contain 
a provision, in terms approved by the Secretary, to the effect that 
any insurance thereunder on any member of the uniformed services, and 
any insurance thereunder on any insurable dependent of 
such a member, unless discontinued or reduced upon the written 
request of the insured (or discontinued pursuant to section 
1969(a)(2)(B) of this title), shall continue in effect while the mem

Sec. 1968 CH. 19-INSURANCE 286 

ber is on active duty, active duty for training, or inactive duty 
training scheduled in advance by competent authority during the 
period thereof, or while the member meets the qualifications set 
forth in subparagraph (B) or (C) of section 1965(5) of this title and 
such insurance shall cease as follows: 

(1) With respect to a member on active duty or active duty 
for training under a call or order to duty that does not specify 
a period of less than 31 days, insurance under this subchapter 
shall cease as follows: 
(A) 120 days after the separation or release from active duty or active 
duty for training, unless on the date of 
such separation or release the member is totally disabled, 
under criteria established by the Secretary, in which event 
the insurance shall cease on the earlier of the following 
dates (but in no event before the end of 120 days after 
such separation or release): 
(i) The date on which the insured ceases to be totally disabled. 
(ii) The date that is- 
(I) two years after the date of separation or 
release from such active duty or active duty for 
training, in the case of such a separation or release during the period 
beginning on the date that is one year before the date of the enactment 
of Veteransï¿½ Housing Opportunity and Benefits Improvement Act of 2006 
and ending on September 
30, 2011; and 
(II) 18 months after the date of separation or 
release from such active duty or active duty for 
training, in the case of such a separation or release on or after 
October 1, 2011. 
(B) At the end of the thirty-first day of a continuous 
period of (i) absence without leave, (ii) confinement by civil 
authorities under a sentence adjudged by a civilian court, 
or (iii) confinement by military authorities under a court-
martial sentence involving total forfeiture of pay and allowances. Any 
insurance so terminated as the result of such an absence or 
confinement, together with any beneficiary designation in effect for 
such insurance at such termination thereof, shall be automatically 
revived as of the date the member is restored to active duty with pay 
or to active duty for training with pay. 
(2) With respect to a member on active duty or active duty 
for training under a call or order to duty that specifies a period 
of less than 31 days, insurance under this subchapter shall 
cease at midnight, local time, on the last day of such duty, unless on 
such date the insured is suffering from a disability incurred or 
aggravated during such period which, within 120 
days after such date, (i) results in death, or (ii) renders the 
member uninsurable at standard premium rates according to 
the good health standards approved by the Secretary, in which 
event the insurance shall continue in force to death, or for 120 
days after such date, whichever is the earlier date. 

287 CH. 19-INSURANCE Sec. 1968 

(3) With respect to a member on inactive duty training 
scheduled in advance by competent authority, insurance under 
this subchapter shall cease at the end of such scheduled training 
period, unless at such time the insured is suffering from 
a disability incurred, or aggravated during such period which, 
within 120 days after the date of such training, (i) results in 
death, or (ii) renders the member uninsurable at standard premium 
rates according to the good health standards approved 
by the Secretary in which event the insurance shall continue 
in force to death, or for 120 days after the date such training 
terminated, whichever is the earlier date. 
(4) With respect to a member of the Ready Reserve of a 
uniformed service who meets the qualifications set forth in 
subparagraph (B) or (C) of section 1965(5) of this title, insurance 
under this subchapter shall cease 120 days after separation or release 
from such assignment, unless on the date of 
such separation or release the member is totally disabled, 
under criteria established by the Secretary, in which event the 
insurance shall cease on the earlier of the following dates (but 
in no event before the end of 120 days after separation or release from 
such assignment): 
(A) The date on which the insured ceases to be totally 
disabled. 
(B) The date that is- 
(i) two years after the date of separation or release from such 
assignment, in the case of such a separation or release during the 
period beginning on the date that is one year before the date of the 
enactment of Veteransï¿½ Housing Opportunity and Benefits Improvement 
Act of 2006 and ending on September 30, 2011; and 
(ii) 18 months after the date of separation or release from such 
assignment, in the case of such a separation or release on or after 
October 1, 2011. 
(5) With respect to an insurable dependent of the member, 
insurance under this subchapter shall cease- 
(A) 120 days after the date of an election made in 
writing by the member to terminate the coverage; or 
(B) on the earliest of- 
(i) 120 days after the date of the memberï¿½s death; 
(ii) the date of termination of the insurance on the 
memberï¿½s life under this subchapter; or 
(iii) 120 days after the termination of the dependentï¿½s status as an 
insurable dependent of the member. 
(b)(1) Each policy purchased under this subchapter shall contain a 
provision, in terms approved by the Secretary, that, except 
as hereinafter provided, Servicemembersï¿½ Group Life Insurance 
which is continued in force after expiration of the period of duty 
or travel under section 1967(b) or 1968(a) of this title, effective the 
day after the date such insurance would cease- 

(A) shall be automatically converted to Veteransï¿½ Group 
Life Insurance (to insure against death of the member only), 
subject to (i) the timely payment of the initial premium under 

Sec. 1969 CH. 19-INSURANCE 288 

terms prescribed by the Secretary, and (ii) the terms and conditions 
set forth in section 1977 of this title; or 

(B) at the election of the member, shall be converted to an 
individual policy of insurance as described in section 1977(e) of 
this title upon written application for conversion made to the 
participating company selected by the member and payment of 
the required premiums. 
(2) Automatic conversion to Veteransï¿½ Group Life Insurance 
under paragraph (1) shall be effective only in the case of an otherwise 
eligible member or former member who is separated or released from a 
period of active duty or active duty for training or 
inactive duty training on or after the date on which the Veteransï¿½ 
Group Life Insurance program (provided for under section 1977 of 
this title) becomes effective. 
(3)(A) In the case of a policy purchased under this subchapter 
for an insurable dependent who is a spouse, upon election of the 
spouse, the policy may be converted to an individual policy of insurance 
under the same conditions as described in section 1977(e) 
of this title (with respect to conversion of a Veteransï¿½ Group Life 
Insurance policy to such an individual policy) upon written application 
for conversion made to the participating company selected by 
the spouse and payment of the required premiums. Conversion of 
such policy to Veteransï¿½ Group Life Insurance is prohibited. 

(B) In the case of a policy purchased under this subchapter for 
an insurable dependent who is a child, such policy may not be converted 
under this subsection. (Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 
1965, 79 Stat. 881, Sec. 768; amended Pub. L. 91-291, Sec. 3, June 25, 
1970, 84 Stat. 328; Pub. L. 93-289, Sec. 5(a), May 24, 1974, 88 Stat. 
166; Pub. L. 97-295, Sec. 4(30), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 
99-576, title VII, Sec. 701(38), Oct. 28, 1986, 100 Stat. 3293; 
renumbered Sec. 
1968 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 103-337, div. A, title VI, 
Sec. 651(c), title XVI, Sec. 1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 
3020; Pub. L. 104-106, div. A, title VI, Sec. 647(b), Feb. 10, 1996, 
110 Stat. 370; Pub. L. 104-275, title IV, Secs. 402(c), 403(a), 
405(b)(1)(B), Oct. 9, 1996, 110 Stat. 3337 to 3339; Pub. L. 106-65, 
div. A, title X, Sec. 1066(d)(1), Oct. 5, 1999, 113 Stat. 773; Pub. L. 
106-419, title III, Sec. 313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 
107-14, Sec. 4(c), (f), June 5, 2001, 115 Stat. 28, 29; Pub. L. 109-
233, title III, Sec. 301, June 15, 2006, 120 Stat. 405; Pub. L. 
110-389, title IV, Sec. 403(b), Oct. 10, 2008, 122 Stat. 4174.) 
ï¿½ 1969. Deductions; payment; investment; expenses 

(a)(1) During any period in which a member, on active duty or 
active duty for training under a call or order to such duty that does 
not specify a period of less than thirty-one days, is insured under 
Servicemembersï¿½ Group Life Insurance, there shall be deducted 
each month from the memberï¿½s basic or other pay until separation 
or release from such duty an amount determined by the Secretary 
(which shall be the same for all such members) as the share of the 
cost attributable to insuring such member under such policy, less 
any costs traceable to the extra hazard of such duty in the uniformed 
service. 

(2)(A) During any month in which a member is assigned to the 
Ready Reserve of a uniformed service under conditions which meet 
the qualifications of subparagraph (B) or (C) of section 1965(5) of 
this title, and is insured under a policy of insurance purchased by 
the Secretary, under section 1966 of this title, there shall be con


289 CH. 19-INSURANCE Sec. 1969 

tributed from the appropriation made for active duty pay of the 
uniformed service concerned an amount determined by the Secretary 
(which shall be the same for all such members) as the share 
of the cost attributable to insuring such member under this policy, 
less any costs traceable to the extra hazards of such duty in the 
uniformed services. Any amounts so contributed on behalf of any 
individual shall be collected by the Secretary concerned from such 
individual (by deduction from pay or otherwise) and shall be credited 
to the appropriation from which such contribution was made. 

(B) If an individual who is required pursuant to subparagraph 
(A) to make a direct remittance of costs to the Secretary concerned 
fails to make the required remittance within 60 days of the date 
on which such remittance is due, such individualï¿½s insurance with 
respect to which such remittance is required shall be terminated by 
the Secretary concerned. Such termination shall be made by written 
notice to the individualï¿½s official address and shall be effective 
60 days after the date of such notice. Such termination of insurance 
may be vacated if, before the effective date of termination, the 
individual remits all amounts past due for such insurance and 
demonstrates to the satisfaction of the Secretary concerned that 
the failure to make timely remittances was justifiable. 
(3) During any fiscal year, or portion thereof, that a member 
is on active duty or active duty for training under a call or order 
to such duty that specifies a period of less than thirty-one days, or 
is authorized or required to perform inactive duty training scheduled 
in advance by competent authority, and is insured under 
Servicemembersï¿½ Group Life Insurance, the Secretary concerned 
shall collect from the member (by deduction from pay or otherwise) 
an amount determined by the Secretary (which shall be the same 
for all such members) as the share of the cost attributable to insuring 
such member under such policy, less any costs traceable to the 
extra hazard of such duty in the uniformed service. 
(4) Any amount not deducted from the basic or other pay of a 
member insured under Servicemembersï¿½ Group Life Insurance, or 
collected from the member by the Secretary concerned, if not otherwise 
paid, shall be deducted from the proceeds of any insurance 
thereafter payable. The initial monthly amount under paragraph 
(1) or (2) hereof, or fiscal year amount under paragraph (3) hereof, 
determined by the Secretary to be charged under this section for 
Servicemembersï¿½ Group Life Insurance may be continued from year 
to year, except that the Secretary may redetermine such monthly 
or fiscal year amounts from time to time in accordance with experience. 
No refunds will be made to any member of any amount properly deducted 
from the memberï¿½s basic or other pay, or collected from the member by 
the Secretary concerned, to cover the insurance granted under 
Servicemembersï¿½ Group Life Insurance. 
(b) For each month for which any member is so insured, there 
shall be contributed from the appropriation made for active duty 
pay of the uniformed service concerned an amount determined by 
the Secretary and certified to the Secretary concerned to be the 
cost of Servicemembersï¿½ Group Life Insurance which is traceable to 
the extra hazard of duty in the uniformed services. Effective January 1, 
1970, such cost shall be determined by the Secretary on the 
basis of the excess mortality incurred by members and former 

Sec. 1969 CH. 19-INSURANCE 290 

members of the uniformed services insured under Servicemembersï¿½ 
Group Life Insurance above what their mortality would have been 
under peacetime conditions as such mortality is determined by the 
Secretary using such methods and data as the Secretary shall determine 
to be reasonable and practicable. The Secretary is authorized to make 
such adjustments regarding contributions from pay 
appropriations as may be indicated from actual experience. 

(c) An amount equal to the first amount due on 
Servicemembersï¿½ Group Life Insurance may be advanced from current 
appropriations for active-service pay to any such member, 
which amount shall constitute a lien upon any service or other pay 
accruing to the person from whom such advance was made and 
shall be collected therefrom if not otherwise paid. No disbursing or 
certifying officer shall be responsible for any loss incurred by 
reason of such advance. 
(d)(1) The sums withheld from the basic or other pay of members, or 
collected from them by the Secretary concerned, under subsection (a) 
of this section, and the sums contributed from appropriations under 
subsection (b) of this section, together with the income derived from 
any dividends or premium rate adjustments received from insurers shall 
be deposited to the credit of a revolving 
fund established in the Treasury of the United States. All premium 
payments and extra hazard costs on Servicemembersï¿½ Group Life 
Insurance and the administrative cost to the Department of insurance 
issued under this subchapter shall be paid from the revolving 
fund. 

(2) The Secretary is authorized to set aside out of the revolving 
fund such amounts as may be required to meet the administrative 
costs to the Department of insurance issued under this subchapter 
and all current premium payments and extra hazard costs on any 
insurance policy or policies purchased under section 1966 of this 
title. The Secretary of the Treasury is authorized to invest in and 
to sell and retire special interest-bearing obligations of the United 
States for the account of the revolving fund. Such obligations 
issued for this purpose shall have maturities fixed with due regard 
for the needs of the fund and shall bear interest at a rate equal 
to the average market yield (computed by the Secretary of the 
Treasury on the basis of market quotations as of the end of the 
calendar month next preceding the date of issue) on all marketable 
interest-bearing obligations of the United States then forming a part 
of the public debt which are not due or callable until after the 
expiration of four years from the end of such calendar month; except 
that where such average market yield is not a multiple of one-
eighth of 1 per centum, the rate of interest of such obligation shall 
be the multiple of one-eighth of 1 per centum nearest such market 
yield. 
(3) Notwithstanding the provisions of section 1982 of this title, 
the Secretary shall, from time to time, determine the administrative 
costs to the Department which in the Secretaryï¿½s judgment are 
properly allocable to insurance issued under this subchapter and 
shall transfer such cost from the revolving fund to the appropriation 
ï¿½ï¿½General Operating Expenses, Department of Veterans Affairsï¿½ï¿½. 

291 CH. 19-INSURANCE Sec. 1969 

(e) The Secretary of Defense shall prescribe regulations for the 
administration of the functions of the Secretaries of the military 
departments under this section. Such regulations shall prescribe 
such procedures as the Secretary of Defense, after consultation 
with the Secretary, may consider necessary to ensure that such 
functions are carried out in a timely and complete manner and in 
accordance with the provisions of this section, including specifically 
the provisions of subsection (a)(2) of this section relating 
to contributions from appropriations made for active duty pay. 
(f)(1) No tax, fee, or other monetary payment may be imposed 
or collected by any State, or by any political subdivision or other 
governmental authority of a State, on or with respect to any premium 
paid under an insurance policy purchased under this subchapter. 

(2) Paragraph (1) of this subsection shall not be construed to 
exempt any company issuing a policy of insurance under this subchapter 
from the imposition, payment, or collection of a tax, fee, or 
other monetary payment on the net income or profit accruing to or 
realized by that company from business conducted under this subchapter, 
if that tax, fee, or payment is applicable to a broad range 
of business activity. 
(g)(1)(A) During any period in which a spouse of a member is 
insured under this subchapter and the member is on active duty, 
there shall be deducted each month from the memberï¿½s basic or 
other pay until separation or release from active duty an amount 
determined by the Secretary as the premium allocable to the pay 
period for providing that insurance coverage. No premium may be 
charged for providing insurance coverage for a child. 

(B) During any month in which a member is assigned to the 
Ready Reserve of a uniformed service under conditions which meet 
the qualifications set forth in subparagraph (B) or (C) of section 
1965(5) of this title and the spouse of the member is insured under 
a policy of insurance purchased by the Secretary under section 
1966 of this title, there shall be contributed from the appropriation 
made for active duty pay of the uniformed service concerned an 
amount determined by the Secretary as the share of the cost 
attributable to insuring the spouse of such member under this policy, 
less any costs traceable to the extra hazards of such duty in the 
uniformed services. Any amounts so contributed on behalf of any 
individual shall be collected by the Secretary concerned from such 
individual (by deduction from pay or otherwise) and shall be credited 
to the appropriation from which such contribution was made. 
(2)(A) The Secretary shall determine the premium amounts to 
be charged for life insurance coverage for spouses of members 
under this subchapter. 

(B) The premium amounts shall be determined on the basis of 
sound actuarial principles and shall include an amount necessary 
to cover the administrative costs to the insurer or insurers providing 
such insurance. 
(C) Each premium rate for the first policy year shall be continued for 
subsequent policy years, except that the rate may be adjusted for any 
such subsequent policy year on the basis of the experience under the 
policy, as determined by the Secretary in advance 
of that policy year. 

Sec. 1970 CH. 19-INSURANCE 292 

(h) Any overpayment of a premium for insurance coverage for 
an insurable dependent of a member that is terminated under section 
1968(a)(5) of this title shall be refunded to the member. 
(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881, Sec. 
769; amended Pub. L. 91-291, Sec. 4, June 25, 1970, 84 Stat. 329; Pub. 
L. 93-289, Sec. 6, 10(2), May 24, 1974, 88 Stat. 168, 172; Pub. L. 
97-66, title IV, Sec. 402, Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99-
576, title VII, Sec. 701(39), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 
100-322, title III, Sec. 332(a), May 20, 1988, 102 Stat. 537; 
renumbered Sec. 1969 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. 
L. 103-337, div. A, title VI, Sec. 651(d), Oct. 5, 1994, 108 Stat. 
2793; Pub. L. 103-446, title XII, Sec. 1201(e)(8), (i)(3), Nov. 2, 1994, 
108 Stat. 4685, 4688; Pub. L. 104-106, div. A, title VI, Sec. 647(a), 
Feb. 10, 1996, 
110 Stat. 370; Pub. L. 104-275, title IV, Secs. 402(d), 405(b)(1)(C), 
Oct. 9, 1996, 110 Stat. 3337, 3339; Pub. L. 106-419, title III, Sec. 
313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107-14, Sec. 4(d), 
June 5, 2001, 115 Stat. 29; Pub. L. 109-13, div. A, title I, Sec. 
1012(c)(2), May 11, 2005, 119 Stat. 245; Pub. L. 109-80, Sec. 2, 
Sept. 30, 2005, 119 Stat. 2045; Pub. L. 110-389, title IV, Sec. 
403(a)(2)(B), (c), Oct. 10, 2008, 122 Stat. 4174.) 

ï¿½ 1970. Beneficiaries; payment of insurance 

(a) Any amount of insurance under this subchapter in force on 
any member or former member on the date of the insuredï¿½s death 
shall be paid, upon the establishment of a valid claim therefor, to 
the person or persons surviving at the date of the insuredï¿½s death, 
in the following order of precedence: 
First, to the beneficiary or beneficiaries as the member or 
former member may have designated by a writing received prior to 
death (1) in the uniformed services if insured under 
Servicemembersï¿½ Group Life Insurance, or (2) in the administrative 
office established under section 1966(b) of this title if separated or 
released from service, or if assigned to the Retired Reserve, and 
insured under Servicemembersï¿½ Group Life Insurance, or if insured 
under Veteransï¿½ Group Life Insurance; 

Second, if there be no such beneficiary, to the widow or widower of 
such member or former member; 

Third, if none of the above, to the child or children of such 
member or former member and descendants of deceased children 
by representation; 

Fourth, if none of the above, to the parents of such member or 
former member or the survivor of them; 

Fifth, if none of the above, to the duly appointed executor or 
administrator of the estate of such member or former member; 

Sixth, if none of the above, to other next of kin of such member 
or former member entitled under the laws of domicile of such member or 
former member at the time of the insuredï¿½s death. 

(b) If any person otherwise entitled to payment under this section does 
not make claim therefor within one year after the death 
of the member or former member, or if payment to such person 
within that period is prohibited by Federal statute or regulation, 
payment may be made in the order of precedence as if such person 
had predeceased the member or former member, and any such payment shall 
be a bar to recovery by any other person. 
(c) If, within two years after the death of the member or former 
member, no claim for payment has been filed by any person entitled 
under the order of precedence set forth in this section, and neither 
the Secretary nor the administrative office established by the 

293 CH. 19-INSURANCE Sec. 1970 

insurance company or companies pursuant to section 1966(b) of 
this title has received any notice that any such claim will be made, 
payment may be made to a claimant as may in the judgment of the 
Secretary be equitably entitled thereto, and such payment shall be 
a bar to recovery by any other person. 

(d) The member may elect settlement of insurance under this 
subchapter either in a lump sum or in thirty-six equal monthly 
installments. If no such election is made by the member the beneficiary 
or beneficiaries may elect settlement either in a lump sum 
or in thirty-six equal monthly installments. If the member has 
elected settlement in a lump sum, the beneficiary or beneficiaries 
may elect settlement in thirty-six equal monthly installments. 
(e) Until and unless otherwise changed, a beneficiary designation and 
settlement option filed by a member with the memberï¿½s 
uniformed service under prior provisions of law will be effective 
with respect to the increased insurance authorized under the Veteransï¿½ 
Insurance Act of 1974 and the insurance shall be settled in 
the same proportionate amount as the portion designated for such 
beneficiary or beneficiaries bore to the amount of insurance heretofore 
in effect. 
(f) Notwithstanding the provisions of any other law, payment 
of matured Servicemembersï¿½ Group Life Insurance or Veteransï¿½ 
Group Life Insurance benefits may be made directly to a minor 
widow or widower on his or her own behalf, and payment in such 
case shall be a complete acquittance to the insurer. 
(g) Any payments due or to become due under Servicemembersï¿½ 
Group Life Insurance or Veteransï¿½ Group Life Insurance made to, 
or on account of, an insured or a beneficiary shall be exempt from 
taxation, shall be exempt from the claims of creditors, and shall not 
be liable to attachment, levy, or seizure by or under any legal or 
equitable process whatever, either before or after receipt by the 
beneficiary. The preceding sentence shall not apply to (1) collection 
of amounts not deducted from the memberï¿½s pay, or collected from 
him by the Secretary concerned under section 1969(a) of this title, 
(2) levy under subchapter D of chapter 64 of the Internal Revenue 
Code of 1986 (26 U.S.C. 6331 et seq.) (relating to the seizure of 
property for collection of taxes), and (3) the taxation of any property 
purchased in part or wholly out of such payments. 
(h) Insurance payable under this subchapter may not be paid 
in any amount to the extent that such amount would escheat to a 
State. Payment of insurance under this subchapter may not be 
made to the estate of the insured or the estate of any beneficiary 
of the insured unless it is affirmatively shown that any amount to 
be paid will not escheat to a State. Any amount to be paid under 
this subchapter shall be reduced to the extent necessary to comply 
with this subsection. 
(i) Any amount of insurance in force on an insurable dependent 
of a member under this subchapter on the date of the dependentï¿½s 
death shall be paid, upon the establishment of a valid claim therefor, 
to the member or, in the event of the memberï¿½s death before 
payment to the member can be made, then to the person or persons 
entitled to receive payment of the proceeds of insurance on the 
memberï¿½s life under this subchapter. 

Sec. 1971 CH. 19-INSURANCE 294 

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 883, 
Sec. 770; amended Pub. L. 91-291, Sec. 5, June 25, 1970, 84 Stat. 
330; Pub. L. 93-289, Sec. 7, May 24, 1974, 88 Stat. 169; Pub. L. 
97-295, Sec. 4(31), Oct. 12, 1982, 96 Stat. 1307; Pub. 

L. 97-306, title IV, Sec. 401(a), Oct. 14, 1982, 96 Stat. 1442; 
Pub. L. 99-576, title 
VII, Sec. 701(40), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102-54, 
Sec. 14(b)(17), June 
13, 1991, 105 Stat. 284; renumbered Sec. 1970 and amended Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 104-275, title IV, Sec. 405(b)(1)(D), Oct. 9, 1996, 
110 Stat. 3339; Pub. L. 105-368, title III, Sec. 302(b), Nov. 11, 
1998, 112 Stat. 3333; Pub. L. 107-14, Sec. 4(e), June 5, 2001, 115 
Stat. 29; Pub. L. 109-13, div. A, title I, Sec. 1012(g), May 11, 
2005, 119 Stat. 246; 
Pub. L. 109-80, Sec. 2, Sept. 30, 2005, 119 Stat. 2045.) 
ï¿½ 1971. Basic tables of premiums; readjustment of rates 

(a) Each policy or policies purchased under section 1966 of this 
title shall include for the first policy year a schedule of basic 
premium rates by age which the Secretary shall have determined on 
a basis consistent with the lowest schedule of basic premium rates 
generally charged for new group life insurance policies issued to 
large employers, this schedule of basic premium rates by age to be 
applied, except as otherwise provided in this section, to the 
distribution by age of the amount of group life insurance under the 
policy at its date of issue to determine an average basic premium 
per $1,000 of insurance. Each policy so purchased shall also include 
provisions whereby the basic rates of premium determined for the 
first policy year shall be continued for subsequent policy years, 
except that they may be readjusted for any subsequent year, based 
on the experience under the policy, such readjustment to be made 
by the insurance company or companies issuing the policy on a 
basis determined by the Secretary in advance of such year to be 
consistent with the general practice of life insurance companies 
under policies of group life insurance issued to large employers. 
(b) The total premiums for Servicemembersï¿½ Group Life Insurance shall 
be the sum of the amounts computed according to the provisions of 
subsection (a) above and the estimated cost traceable to the extra 
hazard of active duty in the uniformed services as determined by the 
Secretary, subject to the provision that such estimated costs 
traceable to the extra hazard shall be retroactively readjusted 
annually in accordance with section 1969(b). 
(c) Each policy so purchased shall include a provision that, in 
the event the Secretary determines that ascertaining the actual age 
distribution of the amounts of group life insurance in force at the 
date of issue of the policy or at the end of the first or any 
subsequent year of insurance thereunder would not be possible except at 
a disproportionately high expense, the Secretary may approve the 
determination of a tentative average group life premium, for the 
first or any subsequent policy year, in lieu of using the actual age 
distribution. Such tentative average premium rate shall be redetermined 
by the Secretary during any policy year upon request by the 
insurance company or companies issuing the policy, if experience 
indicates that the assumptions made in determining the tentative 
average premium rate for that policy year were incorrect. 
(d) Each policy so purchased shall contain a provision stipulating the 
maximum expense and risk charges for the first policy 
year, which charges shall have been determined by the Secretary 
on a basis consistent with the general level of such charges made 
by life insurance companies under policies of group life insurance 

295 CH. 19-INSURANCE Sec. 1972 

issued to large employers. Such maximum charges shall be continued from 
year to year, except that the Secretary may redetermine 
such maximum charges for any year either by agreement with the 
insurance company or companies issuing the policy or upon written 
notice given by the Secretary to such companies at least one year 
in advance of the beginning of the year for which such redetermined 
maximum charges will be effective. 

(e) Each such policy shall provide for an accounting to the Secretary
not later than ninety days after the end of each policy year, 
which shall set forth, in a form approved by the Secretary, (1) the 
amounts of premiums actually accrued under the policy from its 
date of issue to the end of such policy year, (2) the total of all 
mortality and other claim charges incurred for that period, and (3) the 
amounts of the insurersï¿½ expense and risk charge for that period. 
Any excess of the total of item (1) over the sum of items (2) and 
(3) shall be held by the insurance company or companies issuing 
the policy as a special contingency reserve to be used by such 
insurance company or companies for charges under such policy only, 
such reserve to bear interest at a rate to be determined in advance 
of each policy year by the insurance company or companies issuing 
the policy, which rate shall be approved by the Secretary as being 
consistent with the rates generally used by such company or companies 
for similar funds held under other group life insurance policies. If 
and when the Secretary determines that such special contingency reserve 
has attained an amount estimated by the Secretary to make satisfactory 
provision for adverse fluctuations in future charges under the policy,
any further excess shall be deposited 
to the credit of the revolving fund established under section 
1969(d)(1) of this title. If and when such policy is discontinued, and 
if after all charges have been made, there is any positive balance 
remaining in such special contingency reserve, such balance shall 
be deposited to the credit of the revolving fund, subject to the right 
of the insurance company or companies issuing the policy to make 
such deposit in equal monthly installments over a period of not 
more than two years. 
(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 884, Sec. 
771; amended Pub. L. 93-289, Sec. 8, May 24, 1974, 88 Stat. 169; 
renumbered Sec. 1971 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 104-275, 
title IV, Sec. 405(b)(1)(E), Oct. 9, 1996, 110 Stat. 3339.) 

ï¿½ 1972. Benefit certificates 

The Secretary shall arrange to have each member insured 
under a policy purchased under section 1966 of this title receive a 
certificate setting forth the benefits to which the member is entitled 
thereunder, to whom such benefit shall be payable, to whom 
claims should be submitted, and summarizing the provisions of the 
policy principally affecting the member. Such certificate shall be in 
lieu of the certificate which the insurance company or companies 
would otherwise be required to issue. 

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885, Sec. 
772; renumbered Sec. 1972 and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 404-406.) 


Sec. 1973 CH. 19-INSURANCE 296 

ï¿½ 1973. Forfeiture 

Any person guilty of mutiny, treason, spying, or desertion, or 
who, because of conscientious objections, refuses to perform service 
in the Armed Forces of the United States or refuses to wear the 
uniform of such force, shall forfeit all rights to Servicemembersï¿½ 
Group Life Insurance and Veteransï¿½ Group Life Insurance under 
this subchapter. No such insurance shall be payable for death inflicted 
as a lawful punishment for crime or for military or naval offense, 
except when inflicted by an enemy of the United States. 

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885, Sec. 
773; renumbered Sec. 1973, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406; amended Pub. L. 104-275, title IV, Sec. 405(b)(1)(F), 
Oct. 9, 1996, 110 Stat. 3339; Pub. L. 110-389, title IV, Sec. 403(d), 
Oct. 10, 2008, 122 Stat. 4174.) 

ï¿½ 1974. Advisory Council on Servicemembersï¿½ Group Life Insurance 

(a) There is an Advisory Council on Servicemembersï¿½ Group 
Life Insurance. The council consists of- 
(1) the Secretary of the Treasury, who is the chairman of 
the council; 
(2) the Secretary of Defense; 
(3) the Secretary of Commerce; 
(4) the Secretary of Health and Human Services; 
(5) the Secretary of Homeland Security; and 
(6) the Director of the Office of Management and Budget. 
Members of the council shall serve without additional compensation. 
(b) The council shall meet at least once a year, or more often 
at the call of the Secretary of Veterans Affairs. The council shall 
review the operations of the Department under this subchapter and 
shall advise the Secretary on matters of policy relating to the 
Secretaryï¿½s activities under this subchapter. (Added Pub. L. 89-214, 
Sec. 1(a), Sept. 29, 1965, 79 Stat. 885, Sec. 774; amended Pub. L. 
91-291, Sec. 6, June 25, 1970, 84 Stat. 331; Pub. L. 93-289, Sec. 
10(3), May 24, 1974, 88 Stat. 172; Pub. L. 97-295, Sec. 4(95)(A), 
Oct. 12, 1982, 96 Stat. 1313; Pub. L. 99-576, title VII, Sec. 701(41), 
Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102- 54, Sec. 14(b)(18), 
June 13, 1991, 105 Stat. 284; renumbered Sec. 1974, Pub. L. 102- 
83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-275, title IV, 
Sec. 405(b)(1)(G), (2)(B), Oct. 9, 1996, 110 Stat. 3339; Pub. L. 
108-183, title VII, Sec. 708(a)(4), Dec. 16, 2003, 117 Stat. 2673.) 

ï¿½ 1975. Jurisdiction of District Courts 

The district courts of the United States shall have original 
jurisdiction of any civil action or claim against the United States 
founded upon this subchapter. 

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885, Sec. 
775; renumbered Sec. 1975, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 1976. Effective date 

The insurance provided for in this subchapter and the deductions and 
contributions for that purpose shall take effect on the 
date designated by the Secretary and certified by the Secretary to 
each Secretary concerned. 

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885, Sec. 776; 
amended Pub. L. 99-576, title VII, Sec. 701(42), Oct. 28, 1986, 100 
Stat. 3294; renumbered 


297 CH. 19-INSURANCE Sec. 1977 

Sec. 1976 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), 
Aug. 6, 1991, 105 
Stat. 404-406.) 

ï¿½ 1977. Veteransï¿½ Group Life Insurance 

(a)(1) Veteransï¿½ Group Life Insurance shall be issued in the 
amounts specified in section 1967(a) of this title. In the case of any 
individual, the amount of Veteransï¿½ Group Life Insurance may not 
exceed the amount of Servicemembersï¿½ Group Life Insurance coverage 
continued in force after the expiration of the period of duty 
or travel under section 1967(b) or 1968(a) of this title. No person 
may carry a combined amount of Servicemembersï¿½ Group Life Insurance and 
Veteransï¿½ Group Life Insurance at any one time in excess of the maximum 
amount for Servicemembersï¿½ Group Life Insurance in effect under section 
1967(a)(3)(A)(i) of this title. 

(2) If any person insured under Veteransï¿½ Group Life Insurance 
again becomes insured under Servicemembersï¿½ Group Life Insurance but 
dies before terminating or converting such personï¿½s Veteransï¿½ Group 
Insurance, Veteransï¿½ Group Life Insurance shall be 
payable only if such person is insured under Servicemembersï¿½ 
Group Life Insurance for less than the maximum amount for such 
insurance in effect under section 1967(a)(3)(A)(i) of this title, and 
then only in an amount which, when added to the amount of 
Servicemembersï¿½ Group Life Insurance payable, does not exceed 
such maximum amount in effect under such section. 
(b) Veteransï¿½ Group Life Insurance shall (1) provide protection 
against death; (2) be issued on a renewable five-year term basis; 
(3) have no cash, loan, paid-up, or extended values; (4) except as 
otherwise provided, lapse for nonpayment of premiums; and (5) 
contain such other terms and conditions as the Secretary determines to 
be reasonable and practicable which are not specifically 
provided for in this section, including any provisions of this 
subchapter not specifically made inapplicable by the provisions of this 
section. 
(c) The premiums for Veteransï¿½ Group Life Insurance shall be 
established under the criteria set forth in sections 1971(a) and (c) 
of this title, except that the Secretary may provide for average 
premiums for such various age groupings as the Secretary may decide 
to be necessary according to sound actuarial principles, and shall 
include an amount necessary to cover the administrative cost of 
such insurance to the company or companies issuing such insurance. 
Such premiums shall be payable by the insureds thereunder 
as provided by the Secretary directly to the administrative office 
established for such insurance under section 1966(b) of this title. 
In any case in which a member or former member who was mentally 
incompetent on the date such member or former member first 
became insured under Veteransï¿½ Group Life Insurance dies within 
one year of such date, such insurance shall be deemed not to have 
lapsed for nonpayment of premiums and to have been in force on 
the date of death. Where insurance is in force under the preceding 
sentence, any unpaid premiums may be deducted from the proceeds 
of the insurance. Any person who claims eligibility for Veteransï¿½ 
Group Life Insurance based on disability incurred during a period 
of duty shall be required to submit evidence of qualifying health 

Sec. 1977 CH. 19-INSURANCE 298 

conditions and, if required, to submit to physical examinations at 
their own expense. 

(d) Any amount of Veteransï¿½ Group Life Insurance in force on 
any person on the date of such personï¿½s death shall be paid, upon 
the establishment of a valid claim therefor, pursuant to the 
provisions of section 1970 of this title. However, any designation of 
beneficiary or beneficiaries for Servicemembersï¿½ Group Life Insurance 
filed with a uniformed service until changed, shall be considered a 
designation of beneficiary or beneficiaries for Veteransï¿½ Group Life 
Insurance, but not for more than sixty days after the effective date 
of the insuredï¿½s Veteransï¿½ Group Insurance, unless at the end of 
such sixty-day period, the insured is incompetent in which event 
such designation may continue in force until the disability is removed 
but not for more than five years after the effective date of 
the insuredï¿½s Veteransï¿½ Group Life Insurance. Except as indicated 
above in incompetent cases, after such sixty-day period, any 
designation of beneficiary or beneficiaries for Veteransï¿½ Group Life 
Insurance to be effective must be by a writing signed by the insured 
and received by the administrative office established under section 
1966(b) of this title. 
(e) An insured under Veteransï¿½ Group Life Insurance shall 
have the right at any time to convert such insurance to an individual 
policy of life insurance upon written application for conversion made 
to the participating company the insured selects and 
payment of the required premiums. The individual policy will be 
issued without medical examination on a plan then currently written by 
such company which does not provide for the payment of 
any sum less than the face value thereof or for the payment of an 
additional amount as premiums in the event the insured performs 
active duty, active duty for training, or inactive duty training. The 
Veteransï¿½ Group Life Insurance policy converted to an individual 
policy under this subsection shall terminate on the day before the 
date on which the individual policy becomes effective. Upon request 
to the administrative office established under section 1966(b) of 
this title, an insured under Veteransï¿½ Group Life Insurance shall 
be furnished a list of life insurance companies participating in the 
program established under this subchapter. In addition to the life 
insurance companies participating in the program established 
under this subchapter, the list furnished to an insured under this 
section shall include additional life insurance companies (not so 
participating) which meet qualifying criteria, terms, and conditions 
established by the Secretary and agree to sell insurance to former 
members in accordance with the provisions of this section. 
(f) The provisions of subsections (d) and (e) of section 1971 of 
this title shall be applicable to Veteransï¿½ Group Life Insurance. 
However, a separate accounting shall be required for each program 
of insurance authorized under this subchapter. In such accounting, 
the Secretary is authorized to allocate claims and other costs 
among such programs of insurance according to accepted actuarial 
principles. 
(g) Any person whose Servicemembersï¿½ Group Life Insurance 
was continued in force after termination of duty or discharge from 
service under the law as in effect prior to the date on which the 
Veteransï¿½ Group Life Insurance program (provided for under sec

299 CH. 19-INSURANCE Sec. 1977 

tion 1977 of this title) became effective, and whose coverage under 
Servicemembersï¿½ Group Life Insurance terminated less than four 
years prior to such date, shall be eligible within one year from the 
effective date of the Veteransï¿½ Group Life Insurance program to 
apply for and be granted Veteransï¿½ Group Life Insurance in an 
amount equal to the amount of the insuredï¿½s Servicemembersï¿½ 
Group Life Insurance which was not converted to an individual policy 
under prior law. Veteransï¿½ Group Life Insurance issued under 
this subsection shall be issued for a term period equal to five years, 
less the time elapsing between the termination of the applicantï¿½s 
Servicemembersï¿½ Group Life Insurance and the effective date on 
which the Veteransï¿½ Group Life Insurance program became effective. 
Veteransï¿½ Group Life Insurance under this subsection shall 
only be issued upon application to the administrative office 
established under section 1966(b) of this title, payment of the required 
premium, and proof of good health satisfactory to that office, which 
proof shall be submitted at the applicantï¿½s own expense. Any person who 
cannot meet the good health requirements for insurance 
under this subsection solely because of a service-connected disability 
shall have such disability waived. For each month for which 
any eligible veteran, whose service-connected disabilities are 
waived, is insured under this subsection there shall be contributed 
to the insurer or insurers issuing the policy or policies from the 
appropriation ï¿½ï¿½Compensation and Pensions, Department of Veterans 
Affairsï¿½ï¿½ an amount necessary to cover the cost of the insurance in 
excess of the premiums established for eligible veterans, including 
the cost of the excess mortality attributable to such veteranï¿½s 
service-connected disabilities. The Secretary may establish, as the 
Secretary may determine to be necessary according to sound actuarial 
principles, a separate premium, age groupings for premium purposes, 
accounting, and reserves, for persons granted insurance 
under this subsection different from those established for other 
persons granted insurance under this section. Appropriations to carry 
out the purpose of this section are hereby authorized. 

(h)(1) Notwithstanding any other provision of law, members of 
the Individual Ready Reserve and the Inactive National Guard are 
eligible to be insured under Veteransï¿½ Group Life Insurance. Any 
such member shall be so insured upon submission of an application 
in the manner prescribed by the Secretary and the payment of premiums 
as required under this section. 

(2) In accordance with subsection (b), Veteransï¿½ Group Life Insurance 
coverage under this subsection shall be issued on a renewable five-year 
term basis, but the person insured must remain a 
member of the Individual Ready Reserve or Inactive National 
Guard throughout the period of the insurance in order for the insurance 
of such person to be renewed. 
(3) For the purpose of this subsection, the terms ï¿½ï¿½Individual 
Ready Reserveï¿½ï¿½ and ï¿½ï¿½Inactive National Guardï¿½ï¿½ shall have the 
meanings prescribed by the Secretary in consultation with the Secretary 
of Defense. 
(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 169, Sec. 777; 
amended Pub. L. 97-66, title IV, Sec. 401(b), Oct. 17, 1981, 95 Stat. 
1031; Pub. L. 99-166, title IV, Sec. 401(b), Dec. 3, 1985, 99 Stat. 957; 
Pub. L. 99-576, title VII, Sec. 701(43), Oct. 28, 1986, 100 Stat. 3294; 
Pub. L. 102-25, title III, Sec. 336(b), Apr. 


Sec. 1978 CH. 19-INSURANCE 300 

6, 1991, 105 Stat. 90; renumbered Sec. 1977 and amended Pub. L. 102-83, 
Sec. 4(a)(2)(B)(iii), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 403-406; Pub. L. 102-568, title II, Sec. 202, Oct. 29, 1992, 106 
Stat. 4324; Pub. L. 103-446, title XII, Sec. 1201(e)(9), Nov. 2, 1994, 
108 Stat. 4685; Pub. L. 104-275, title IV, Sec. 403(b), 405(b)(1)(H), 
406, Oct. 9, 1996, 110 Stat. 3338-3340; Pub. L. 106-419, title III, Sec. 
312(b), Nov. 1, 2000, 114 Stat. 1854; Pub. L. 109-13, div. A, title I, 
Sec. 1012(e), May 11, 2005, 119 Stat. 246; Pub. L. 109-80, Secs. 2, 
3(b), Sept. 30, 2005, 119 Stat. 
2045.) 

ï¿½ 1978. Reinstatement 

Reinstatement of insurance coverage granted under this subchapter but 
lapsed for nonpayment of premiums shall be under 
terms and conditions prescribed by the Secretary. 

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 172, Sec. 778; 
renumbered Sec. 1978 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), Aug. 6, 1991, 105 Stat. 404-406.) 

ï¿½ 1979. Incontestability 

Subject to the provision of section 1973 of this title, insurance 
coverage granted under this subchapter shall be incontestable from 
the date of issue, reinstatement, or conversion except for fraud or 
nonpayment of premium. 

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 172, Sec. 779; 
renumbered Sec. 1979 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ 1980. Option to receive accelerated death benefit 

(a) For the purpose of this section, a person shall be considered 
to be terminally ill if the person has a medical prognosis such that 
the life expectancy of the person is less than a period prescribed 
by the Secretary. The maximum length of such period may not exceed 
12 months. 
(b)(1) A terminally ill person insured under Servicemembersï¿½ 
Group Life Insurance or Veteransï¿½ Group Life Insurance may elect 
to receive in a lump-sum payment a portion of the face value of the 
insurance as an accelerated death benefit reduced by an amount 
necessary to assure that there is no increase in the actuarial value 
of the benefit paid, as determined by the Secretary. 

(2) The Secretary shall prescribe the maximum amount of the 
accelerated death benefit available under this section that the 
Secretary finds to be administratively practicable and actuarially 
sound, but in no event may the amount of the benefit exceed the 
amount equal to 50 percent of the face value of the personï¿½s insurance 
in force on the date the election of the person to receive the 
benefit is approved. 
(3) A person making an election under this section may elect 
to receive an amount that is less than the maximum amount prescribed 
under paragraph (2). The Secretary shall prescribe the increments in 
which a reduced amount under this paragraph may be 
elected. 
(c) The portion of the face value of insurance which is not paid 
in a lump sum as an accelerated death benefit under this section 
shall remain payable in accordance with the provisions of this 
chapter. 
(d) Deductions under section 1969 of this title and premiums 
under section 1977(c) of this title shall be reduced, in a manner 

301 CH. 19-INSURANCE Sec. 1980A 

consistent with the percentage reduction in the face value of the 
insurance as a result of payment of an accelerated death benefit 
under this section, effective with respect to any amounts which 
would otherwise become due on or after the date of payment under 
this section. 

(e) The Secretary shall prescribe regulations to carry out this 
section. Such regulations shall include provisions regarding- 
(1) the form and manner in which an application for an 
election under this section shall be made; and 
(2) the procedures under which any such application shall 
be considered. 
(f)(1) An election to receive a benefit under this section shall 
be irrevocable. 

(2) A person may not make more than one election under this 
section, even if the election of the person is to receive less than the 
maximum amount of the benefit available to the person under this 
section. 
(g) If a person insured under Servicemembersï¿½ Group Life Insurance 
elects to receive a benefit under this section and the personï¿½s 
Servicemembersï¿½ Group Life Insurance is thereafter converted 
to Veteransï¿½ Group Life Insurance as provided in section 1968(b) of 
this title, the amount of the benefit paid under this section shall 
reduce the amount of Veteransï¿½ Group Life Insurance available to 
the person under section 1977(a) of this title. 
(h) Notwithstanding any other provision of law, the amount of 
the accelerated death benefit received by a person under this section 
shall not be considered income or resources for purposes of determining 
eligibility for or the amount of benefits under any Federal or 
federally-assisted program or for any other purpose. 
(Added Pub. L. 105-368, title III, Sec. 302(a)(1), Nov. 11, 1998, 
112 Stat. 3332.) 

ï¿½ 1980A. Traumatic injury protection 

(a)(1) A member of the uniformed services who is insured 
under Servicemembersï¿½ Group Life Insurance shall automatically 
be insured for traumatic injury in accordance with this section. 
Insurance benefits under this section shall be payable if the member, 
while so insured, sustains a traumatic injury on or after December 
1, 2005, that results in a qualifying loss specified pursuant to 
subsection (b)(1). 

(2) If a member suffers more than one such qualifying loss as 
a result of traumatic injury from the same traumatic event, payment 
shall be made under this section in accordance with the 
schedule prescribed pursuant to subsection (d) for the single loss 
providing the highest payment. 
(b)(1) A member who is insured against traumatic injury under 
this section is insured against such losses due to traumatic injury 
(in this section referred to as ï¿½ï¿½qualifying lossesï¿½ï¿½) as are prescribed 
by the Secretary by regulation. Qualifying losses so prescribed 
shall include the following: 

(A) Total and permanent loss of sight. 
(B) Loss of a hand or foot by severance at or above the 
wrist or ankle. 
(C) Total and permanent loss of speech. 
(D) Total and permanent loss of hearing in both ears. 

Sec. 1980A CH. 19-INSURANCE 302 

(E) Loss of thumb and index finger of the same hand by 
severance at or above the metacarpophalangeal joints. 
(F) Quadriplegia, paraplegia, or hemiplegia. 
(G) Burns greater than second degree, covering 30 percent 
of the body or 30 percent of the face. 
(H) Coma or the inability to carry out the activities of 
daily living resulting from traumatic injury to the brain. 
(2) For purposes of this subsection: 
(A) The term ï¿½ï¿½quadriplegiaï¿½ï¿½ means the complete and irreversible 
paralysis of all four limbs. 
(B) The term ï¿½ï¿½paraplegiaï¿½ï¿½ means the complete and irreversible 
paralysis of both lower limbs. 
(C) The term ï¿½ï¿½hemiplegiaï¿½ï¿½ means the complete and irreversible 
paralysis of the upper and lower limbs on one side of 
the body. 
(D) The term ï¿½ï¿½inability to carry out the activities of daily 
livingï¿½ï¿½ means the inability to independently perform two or 
more of the following six functions: 
(i) Bathing. 
(ii) Continence. 
(iii) Dressing. 
(iv) Eating. 
(v) Toileting. 
(vi) Transferring. 
(3) The Secretary may prescribe, by regulation, conditions 
under which coverage otherwise provided under this section is excluded. 
(4) A member shall not be considered for the purposes of this 
section to be a member insured under Servicemembersï¿½ Group Life 
Insurance if the member is insured under Servicemembersï¿½ Group 
Life Insurance only as an insurable dependent of another member 
pursuant to subparagraph (A)(ii) or (C)(ii) of section 1967(a)(1) of 
this title. 
(c)(1) A payment may be made to a member under this section 
only for a qualifying loss that results directly from a traumatic 
injury sustained while the member is covered against loss under this 
section and from no other cause. 

(2)(A) A payment may be made to a member under this section 
for a qualifying loss resulting from a traumatic injury only for a 
loss that is incurred during the applicable period of time specified 
pursuant to subparagraph (B). 

(B) For each qualifying loss, the Secretary shall prescribe, by 
regulation, a period of time to be the period of time within which 
a loss of that type must be incurred, determined from the date on 
which the member sustains the traumatic injury resulting in that 
loss, in order for that loss to be covered under this section. 
(d) Payments under this section for qualifying losses shall be 
made in accordance with a schedule prescribed by the Secretary, by 
regulation, specifying the amount of payment to be made for each 
type of qualifying loss, to be based on the severity of the qualifying 
loss. The minimum payment that may be prescribed for a qualifying loss 
is $25,000, and the maximum payment that may be prescribed for a 
qualifying loss is $100,000. 

303 CH. 19-INSURANCE Sec. 1980A 

(e)(1) During any period in which a member is insured under 
this section and the member is on active duty, there shall be deducted 
each month from the memberï¿½s basic or other pay until separation or 
release from active duty an amount determined by the 
Secretary (which shall be the same for all such members) as the 
share of the cost attributable to provided coverage under this section, 
less any costs traceable to the extra hazards of such duty in 
the uniformed services. 

(2) During any month in which a member is assigned to the 
Ready Reserve of a uniformed service under conditions which meet 
the qualifications set forth in section 1965(5)(B) of this title and is 
insured under a policy of insurance purchased by the Secretary 
under section 1966 of this title, there shall be contributed from the 
appropriation made for active duty pay of the uniformed service 
concerned an amount determined by the Secretary (which shall be 
the same for all such members) as the share of the cost attributable to 
provided coverage under this section, less any costs traceable to the 
extra hazards of such duty in the uniformed services. 
Any amounts so contributed on behalf of any member shall be collected 
by the Secretary concerned from such member (by deduction 
from pay or otherwise) and shall be credited to the appropriation 
from which such contribution was made in advance on a monthly 
basis. 
(3) The Secretary shall determine the premium amounts to be 
charged for traumatic injury protection coverage provided under 
this section. 
(4) The premium amounts shall be determined on the basis of 
sound actuarial principles and shall include an amount necessary 
to cover the administrative costs to the insurer or insurers providing 
such insurance. 
(5) Each premium rate for the first policy year shall be continued for 
subsequent policy years, except that the rate may be adjusted for any 
such subsequent policy year on the basis of the experience under the 
policy, as determined by the Secretary in advance 
of that policy year. 
(6) The cost attributable to insuring members under this section for 
any month or other period specified by the Secretary, less 
the premiums paid by the members, shall be paid by the Secretary 
concerned to the Secretary. The Secretary shall allocate the 
amount payable among the uniformed services using such methods 
and data as the Secretary determines to be reasonable and practicable. 
Payments under this paragraph shall be made on a monthly basis or at 
such other intervals as may be specified by the Secretary and shall be 
made within 10 days of the date on which the 
Secretary provides notice to the Secretary concerned of the amount 
required. 
(7) For each period for which a payment by a Secretary concerned is 
required under paragraph (6), the Secretary concerned 
shall contribute such amount from appropriations available for active 
duty pay of the uniformed service concerned. 
(8) The sums withheld from the basic or other pay of members, 
or collected from them by the Secretary concerned, under this 
subsection, and the sums contributed from appropriations under this 
subsection, together with the income derived from any dividends or 

Sec. 1980A CH. 19-INSURANCE 304 

premium rate adjustments received from insurers shall be deposited to 
the credit of the revolving fund established in the Treasury 
of the United States under section 1869(d)(1) of this title. 

(f) When a claim for benefits is submitted under this section, 
the Secretary of Defense or, in the case of a member not under the 
jurisdiction of the Secretary of Defense, the Secretary concerned, 
shall certify to the Secretary whether the member with respect to 
whom the claim is submitted- 
(1) was at the time of the injury giving rise to the claim 
insured under Servicemembersï¿½ Group Life Insurance for the 
purposes of this section; and 
(2) has sustained a qualifying loss. 
(g)(1) Payment for a loss resulting from traumatic injury may 
not be made under the insurance coverage under this section if the 
member dies before the end of a period prescribed by the Secretary, 
by regulation, for such purpose that begins on the date on which 
the member sustains the injury. 

(2) If a member eligible for a payment under this section dies 
before payment to the member can be made, the payment shall be 
made to the beneficiary or beneficiaries to whom the payment 
would be made if the payment were life insurance under section 
1967(a) of this title. 
(h) Coverage for loss resulting from traumatic injury provided under 
this section shall cease at midnight on the date of the termination of 
the memberï¿½s duty status in the uniformed services that 
established eligibility for Servicemembersï¿½ Group Life Insurance. 
The termination of coverage under this section is effective in 
accordance with the preceding sentence, notwithstanding any 
continuation after the date specified in that sentence of 
Servicemembersï¿½ Group Life Insurance coverage pursuant to 
1968(a) of this title for a period specified in that section. 
(i) Insurance coverage provided under this section is not convertible 
to Veteransï¿½ Group Life Insurance. 
(j) Regulations under this section shall be prescribed in consultation 
with the Secretary of Defense. 
(k) DESIGNATION OF FIDUCIARY OR TRUSTEE.-(1) The Secretary 
concerned, in consultation with the Secretary, shall develop a process 
for the designation of a fiduciary or trustee of a member of the 
uniformed services who is insured against traumatic injury under 
this section. The fiduciary or trustee so designated would receive 
a payment for a qualifying loss under this section if the member 
is medically incapacitated (as determined pursuant to regulations 
prescribed by the Secretary concerned in consultation with the 
Secretary) or experiencing an extended loss of consciousness. 
(2) The process under paragraph (1) may require each member 
of the uniformed services who is insured under this section to- 
(A) designate an individual as the memberï¿½s fiduciary or 
trustee for purposes of subsection (a); or 
(B) elect that a court of proper jurisdiction designate an individual 
as the memberï¿½s fiduciary or trustee for purposes of 
subsection (a) in the event that the member becomes medically 
incapacitated or experiences an extended loss of consciousness. 

305 CH. 19-INSURANCE Sec. 1981 

(Added Pub. L. 109-13, div. A, title I, Sec. 1032(a)(2), May 11, 
2005, 119 Stat. 257; 
amended Pub. L. 109-233, title V, Sec. 501(a), June 15, 2006, 120 
Stat. 411; Pub. 

L. 110-181, div. A, title XVII, Sec. 1711, Jan. 28, 2008, 122 
Stat. 495.) 
SUBCHAPTER IV-GENERAL 

ï¿½ 1981. Replacement of surrendered and expired insurance 

(a) Any person who surrendered a policy of National Service 
Life Insurance or United States Government life insurance on a 
permanent plan for its cash value while in the active service after 
April 24, 1951, and before January 1, 1957, who was entitled on 
December 31, 1958, to reinstate or replace such insurance under 
section 623 of the National Service Life Insurance Act of 1940, 
may, upon application in writing made while on continuous active 
duty which began before January 1, 1959, or within one hundred 
and twenty days after separation therefrom, be granted, without 
medical examination, permanent plan insurance on the same plan 
not in excess of the amount surrendered for cash, or may reinstate 
such surrendered insurance upon payment of the required reserve 
and the premium for the current month. Waiver of premiums and 
total disability income benefits otherwise authorized under this 
chapter shall not be denied in any case of issue or reinstatement 
of insurance on a permanent plan under this section or the prior 
corresponding provision of law in which it is shown to the satisfaction 
of the Secretary that total disability of the applicant began before 
the date of application. The cost of the premiums waived and 
total disability income benefits paid by virtue of the preceding 
sentence and the excess mortality cost in any case where the insurance 
matures by death from such total disability shall be borne by 
the United States and the Secretary shall transfer from time to 
time from the National Service Life Insurance appropriation to the 
National Service Life Insurance Fund and from the military and 
naval insurance appropriation to the United States Government 
Life Insurance Fund such sums as may be necessary to reimburse 
the funds for such costs. 
(b) Any person who had United States Government life insurance or 
National Service Life Insurance on the five-year level premium term 
plan, the term of which expired while such person was 
in the active service after April 25, 1951, or within one hundred 
and twenty days after separation from such active service, and in 
either case before January 1, 1957, who was entitled on December 
31, 1958, to replace such insurance under section 623 of the National 
Service Life Insurance Act of 1940, shall, upon application 
made while on continuous active duty which began before January 
1, 1959, or within one hundred and twenty days after separation 
therefrom, payment of premiums and evidence of good health 
satisfactory to the Secretary, be granted an equivalent amount of 
insurance on the five-year level premium term plan at the premium rate 
for such personï¿½s then attained age. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1164, Sec. 781; Pub. L. 
99-576, title VII, 
Sec. 701(44), Oct. 28, 1986, 100 Stat. 3294; renumbered Sec. 1981 and 
amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.) 


Sec. 1982 CH. 19-INSURANCE 306 

ï¿½ 1982. Administrative cost 

Except as provided in sections 1920(c), 1923(d), and 1955(c) of 
this title, the United States shall bear the cost of administration 
in connection with this chapter, including expenses for medical 
examinations, inspections when necessary, printing and binding, and 
for such other expenditures as are necessary in the discretion of 
the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 782; renumbered 
Sec. 1982 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406; 
Pub. L. 104-99, title II, Sec. 201(b), Jan. 26, 1996, 110 Stat. 36.) 

ï¿½ 1983. Settlements for minors or incompetents 

When an optional mode of settlement of National Service Life 
Insurance or United States Government life insurance heretofore or 
hereafter matured is available to a beneficiary who is a minor or 
incompetent, such option may be exercised by such beneficiaryï¿½s 
fiduciary, person qualified under the Act of February 25, 1933 (25 

U.S.C. 14), or person recognized by the Secretary as having custody 
of the person or the estate of such beneficiary, and the obligation 
of the United States under the insurance contract shall be fully 
satisfied by payment of benefits in accordance with the mode of 
settlement so selected. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 783; Pub. L. 
99-576, title VII, Sec. 701(45), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 
102-54, Sec. 14(b)(19), June 13, 1991, 105 Stat. 284; renumbered Sec. 
1983 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406.) 

ï¿½ 1984. Suits on insurance 

(a) In the event of disagreement as to claim, including claim 
for refund of premiums, under contract of National Service Life 
Insurance, United States Government life insurance, or yearly renewable 
term insurance between the Secretary and any person or persons claiming 
thereunder an action on the claim may be brought 
against the United States either in the United States District 
Court for the District of Columbia or in the district court of the 
United States in and for the district in which such person or any 
one of them resides, and jurisdiction is conferred upon such courts 
to hear and determine all such controversies. All persons having or 
claiming to have an interest in such insurance may be made parties to 
such suit, and such as are not inhabitants of or found within 
the district in which suit is brought may be brought in by order 
of the court to be served personally or by publication or in such 
other reasonable manner as the court may direct. In all cases 
where the Secretary acknowledges the indebtedness of the United 
States upon any such contract of insurance and there is a dispute 
as to the person or persons entitled to payment, a suit in the nature 
of a bill of interpleader may be brought at the request of the 
Secretary in the name of the United States against all persons having 
or claiming to have any interest in such insurance in the 
United States District Court for the District of Columbia or in the 
district court in and for the district in which any such claimant 
resides; however, no less than thirty days before instituting such suit 
the Secretary shall mail a notice of such intention to each of the 
persons to be made parties to the suit. The courts of appeals for 

307 CH. 19-INSURANCE Sec. 1984 

the several circuits, including the District of Columbia, shall 
respectively exercise appellate jurisdiction and, except as provided in 
section 1254 of title 28, the decrees of such courts of appeals shall 
be final. 

(b) No suit on yearly renewable term insurance, United States 
Government life insurance, or National Service Life Insurance shall 
be allowed under this section unless the same shall have been 
brought within six years after the right accrued for which the claim 
is made. For the purposes of this section it shall be deemed that 
the right accrued on the happening of the contingency on which the 
claim is founded. The limitation of six years is suspended for the 
period elapsing between the filing with the Secretary of the claim 
sued upon and the denial of the claim. However, if a claim is timely 
filed the claimant shall have not less than ninety days from the 
date of mailing of notice of denial within which to file suit. After 
June 28, 1936, notice of denial of the claim under a contract of 
insurance shall be by registered mail or by certified mail directed to 
the claimantï¿½s last address of record. Infants, insane persons, or 
persons under other legal disability, or persons rated as incompetent 
or insane by the Secretary shall have three years in which 
to bring suit after the removal of their disabilities. If suit is 
seasonably begun and fails for defect in process, or for other reasons 
not affecting the merits, a new action, if one lies, may be brought 
within a year though the period of limitation has elapsed. No State or 
other statute of limitations shall be applicable to suits filed under 
this section. 
(c) In any suit, action, or proceeding brought under the provisions of 
this section subpenas for witnesses who are required to attend a court 
of the United States in any district may run into any 
other district. However, no writ of subpena shall issue for witnesses 
living out of the district in which the court is held at a 
greater distance than one hundred miles from the place of holding 
the same without the permission of the court being first had upon 
proper application and cause shown. The word ï¿½ï¿½districtï¿½ï¿½ and the 
words ï¿½ï¿½district courtï¿½ï¿½ as used in this section shall be construed to 
include the District of Columbia and the United States District 
Court for the District of Columbia. 
(d) Attorneys of the Department, when assigned to assist in 
the trial of cases, and employees of the Department when ordered 
in writing by the Secretary to appear as witnesses, shall be paid 
the regular travel and subsistence allowance paid to other employees 
when on official travel status. 
(e) Part-time and fee-basis employees of the Department, in addition to 
their regular travel and subsistence allowance, when ordered in writing 
by the Secretary to appear as witnesses in suits 
under this section, may be allowed, within the discretion and under 
written orders of the Secretary, a fee in an amount not to exceed 
$50 per day. 
(f) Employees of the Department who are subpenaed to attend 
the trial of any suit, under the provisions of this section, as 
witnesses for a party to such suit shall be granted court leave or 
authorized absence, as applicable, for the period they are required to 
be away from the Department in answer to such subpenas. 

Sec. 1985 CH. 19-INSURANCE 308 

(g) Whenever a judgment or decree shall be rendered in an action 
brought under the provisions of this section, the court, as a 
part of its judgment or decree, shall determine and allow reasonable 
fees for the attorneys of the successful party or parties and apportion 
same if proper, said fees not to exceed 10 per centum of the 
amount recovered and to be paid by the Department out of the payments 
to be made under the judgment or decree at a rate not exceeding one-
tenth of each of such payments until paid; except that, 
in a suit brought by or on behalf of an insured during the insuredï¿½s 
lifetime for waiver of premiums on account of total disability, the 
court, as part of its judgment or decree, shall determine and allow 
a reasonable fee to be paid by the insured to the insuredï¿½s attorney. 
(h) The term ï¿½ï¿½claimï¿½ï¿½ as used in this section means any writing 
which uses words showing an intention to claim insurance benefits; 
and the term ï¿½ï¿½disagreementï¿½ï¿½ means a denial of the claim, after 
consideration on its merits, by the Secretary or any employee or 
organizational unit of the Department heretofore or hereafter 
designated therefor by the Secretary. 
(i) The Attorney General of the United States is authorized to 
agree to a judgment to be rendered by the chief judge of the United 
States court having jurisdiction of the case, pursuant to compromise 
approved by the Attorney General upon the recommendation of the United 
States attorney charged with the defense, upon 
such terms and for sums within the amount claimed to be payable, 
in any suit brought under the provisions of this section, on a contract 
of yearly renewable term insurance, and the Secretary shall 
make payments in accordance with any such judgment. The Comptroller 
General of the United States shall allow credit in the accounts of 
disbursing officers for all payments of insurance made in 
accordance with any such judgment. All such judgments shall constitute 
final settlement of the claim and no appeal therefrom shall 
be authorized. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 784; Pub. L. 
86-507, Sec. 1(32), 
June 11, 1960, 74 Stat. 202; Pub. L. 97-295, Sec. 4(32), Oct. 12, 
1982, 96 Stat. 1307; 
Pub. L. 99-576, title VII, Sec. 701(46), Oct. 28, 1986, 100 Stat. 
3294; renumbered 
Sec. 1984 and amended Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(VII), 
(VIII), (D)(ii), (3), 
(4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 403-406.) 

ï¿½ 1985. Decisions by the Secretary 

Except in the event of suit as provided in section 1984 of this 
title, or other appropriate court proceedings, all decisions rendered 
by the Secretary under the provisions of this chapter shall be final 
and conclusive on all questions of law or fact, and no other official 
of the United States shall have jurisdiction to review any such 
decisions. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 785; renumbered
Sec. 1985 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 
404-406.) 

ï¿½ 1986. Deposits in and disbursements from trust funds 

All cash balances in the United States Government Life Insurance Fund 
and the National Service Life Insurance Fund on January 1, 1959, 
together with all moneys thereafter accruing to such 
funds, including premiums, appropriated moneys, the proceeds of 
any sales of investments which may be necessary to meet current 


309 CH. 19-INSURANCE Sec. 1988 

expenditures, and interest on investments, shall be available for 
disbursement for meeting all expenditures and making investments 
authorized to be made from such funds. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 786; renumbered 
Sec. 1986, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 1987. Penalties 

(a) Any person who shall knowingly make or cause to be made, 
or conspire, combine, aid, or assist in, agree to, arrange for, or in 
anywise procure the making or presentation of a false or fraudulent 
affidavit, declaration, certificate, statement, voucher, or paper, 
or writing purporting to be such, concerning any application for 
insurance or reinstatement thereof, waiver of premiums or claim for 
benefits under National Service Life Insurance, United States 
Government life insurance, or yearly renewable term insurance for any 
person, shall be fined not more than $1,000, or be imprisoned for 
not more than one year, or both. 
(b) Whoever in any claim for National Service Life Insurance, 
United States Government life insurance, or yearly renewable term 
insurance makes any sworn statement of a material fact knowing 
it to be false, shall be guilty of perjury and shall be fined not more 
than $5,000, or be imprisoned for not more than two years, or both. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 787; Pub. L. 
99-576, title VII, Sec. 701(47), Oct. 28, 1986, 100 Stat. 3294; 
renumbered Sec. 1987, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 1988. Savings provision 

Nothing in this title or any amendment or repeal made by the 
Act enacting this title shall affect any right, remedy, liability, 
authorization or requirement pertaining to Government insurance, 
the respective insurance funds, or the insurance appropriations, 
authorized or prescribed under the provisions of the War Risk Insurance 
Act, the World War Veteransï¿½ Act, 1924, the National Service Life 
Insurance Act of 1940, or any related Act, which was in effect on 
December 31, 1958. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 788; renumbered 
Sec. 1988, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

CHAPTER 20 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


311 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½ 

CHAPTER 20-BENEFITS FOR HOMELESS VETERANS 

SUBCHAPTER I-PURPOSE; DEFINITIONS; ADMINISTRATIVE MATTERS 

Sec. 
2001. Purpose. 
2002. Definitions. 
2003. Staffing requirements. 


SUBCHAPTER II-COMPREHENSIVE SERVICE PROGRAMS 

2011. Grants. 
2012. Per diem payments. 
2013. Authorization of appropriations. 


SUBCHAPTER III-TRAINING AND OUTREACH 

2021. Homeless veterans reintegration programs. 

2022. Coordination of outreach services for veterans at risk of 
homelessness. 

2023. Referral and counseling services: veterans at risk of 
homelessness who are 
transitioning from certain institutions. 

SUBCHAPTER IV-TREATMENT AND REHABILITATION FOR SERIOUSLY 
MENTALLY ILL AND HOMELESS VETERANS 


2031. General treatment. 
2032. Therapeutic housing. 
2033. Additional services at certain locations. 
2034. Coordination with other agencies and organizations. 


SUBCHAPTER V-HOUSING ASSISTANCE 

2041. Housing assistance for homeless veterans. 

2042. Supported housing for veterans participating in compensated work 
therapies. 

2043. Domiciliary care programs. 

2044. Financial assistance for supportive services for very low-income 
veteran 
families in permanent housing. 

SUBCHAPTER VI-LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL 
HOUSING 


2051. General authority. 
2052. Requirements. 
2053. Default. 
2054. Audit. 

SUBCHAPTER VII-OTHER PROVISIONS 

2061. Grant program for homeless veterans with special needs. 
2062. Dental care. 
2063. Employment assistance. 
2064. Technical assistance grants for nonprofit community-based 
groups. 
2065. Annual report on assistance to homeless veterans. 
2066. Advisory Committee on Homeless Veterans.


313 


Sec. 2001 CH. 20-BENEFITS FOR HOMELESS VETERANS 314 

SUBCHAPTER I-PURPOSE; DEFINITIONS; ADMINISTRATIVE 
MATTERS 

ï¿½ 2001. Purpose 

The purpose of this chapter is to provide for the special needs 
of homeless veterans. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 905.) 

ï¿½ 2002. Definitions 

In this chapter: 

(1) The term ï¿½ï¿½homeless veteranï¿½ï¿½ means a veteran who is 
homeless (as that term is defined in section 103(a) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11302(a))). 
(2) The term ï¿½ï¿½grant and per diem providerï¿½ï¿½ means an entity in receipt 
of a grant under section 2011 or 2012 of this title. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 905; 
amended Pub. L.
109-444, Sec. 8(a)(3), Dec. 21, 2006, 120 Stat. 3313; Pub. L. 109-461, 
title X, Secs. 
1004(a)(3), 1006(b), Dec. 22, 2006, 120 Stat. 3465, 3468.) 

ï¿½ 2003. Staffing requirements 

(a) VBA STAFFING AT REGIONAL OFFICES.-The Secretary shall 
ensure that there is at least one full-time employee assigned to 
oversee and coordinate homeless veterans programs at each of the 
20 Veterans Benefits Administration regional offices that the Secretary 
determines have the largest homeless veteran populations 
within the regions of the Administration. The programs covered by 
such oversight and coordination include the following: 
(1) Housing programs administered by the Secretary under 
this title or any other provision of law. 
(2) Compensation, pension, vocational rehabilitation, and 
education benefits programs administered by the Secretary 
under this title or any other provision of law. 
(3) The housing program for veterans supported by the Department of 
Housing and Urban Development. 
(4) The homeless veterans reintegration program of the 
Department of Labor under section 2021 of this title. 
(5) The programs under section 2033 of this title. 
(6) The assessments required by section 2034 of this title. 
(7) Such other programs relating to homeless veterans as 
may be specified by the Secretary. 
(b) VHA CASE MANAGERS.-The Secretary shall ensure that 
the number of case managers in the Veterans Health Administration is 
sufficient to assure that every veteran who is provided a 
housing voucher through section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)) is assigned to, and is seen as needed 
by, a case manager. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 905.) 

SUBCHAPTER II-COMPREHENSIVE SERVICE PROGRAMS 

ï¿½ 2011. Grants 

(a) AUTHORITY TO MAKE GRANTS.-Subject to the availability 
of appropriations provided for such purpose, the Secretary shall 

315 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2011 

make grants to assist eligible entities in establishing programs to 
furnish, and expanding or modifying existing programs for furnishing, 
the following to homeless veterans: 

(1) Outreach. 
(2) Rehabilitative services. 
(3) Vocational counseling and training. 
(4) Transitional housing assistance. 
(b) CRITERIA FOR GRANTS.-The Secretary shall establish criteria and 
requirements for grants under this section, including criteria for 
entities eligible to receive grants, and shall publish such 
criteria and requirements in the Federal Register. The criteria 
established under this subsection shall include the following: 
(1) Specification as to the kinds of projects for which 
grants are available, which shall include- 
(A) expansion, remodeling, or alteration of existing 
buildings, or acquisition of facilities, for use as service centers, 
transitional housing, or other facilities to serve homeless veterans; 
and 
(B) procurement of vans for use in outreach to and 
transportation for homeless veterans for purposes of a program referred 
to in subsection (a). 
(2) Specification as to the number of projects for which 
grants are available. 
(3) Criteria for staffing for the provision of services under 
a project for which grants are made. 
(4) Provisions to ensure that grants under this section- 
(A) shall not result in duplication of ongoing services; 
and 
(B) to the maximum extent practicable, shall reflect 
appropriate geographic dispersion and an appropriate balance between 
urban and other locations. 
(5) Provisions to ensure that an entity receiving a grant 
shall meet fire and safety requirements established by the Secretary, 
which shall include- 
(A) such State and local requirements that may apply; 
and 
(B) fire and safety requirements applicable under the 
Life Safety Code of the National Fire Protection Association or such 
other comparable fire and safety requirements 
as the Secretary may specify. 
(6) Specification as to the means by which an entity receiving a grant 
may contribute in-kind services to the start-up 
costs of a project for which a grant is sought and the methodology for 
assigning a cost to that contribution for purposes of 
subsection (c). 
(c) FUNDING LIMITATIONS.-A grant under this section may not 
be used to support operational costs. The amount of a grant under 
this section may not exceed 65 percent of the estimated cost of the 
project concerned. 
(d) ELIGIBLE ENTITIES.-The Secretary may make a grant 
under this section to an entity applying for such a grant only if the 
applicant for the grant- 

Sec. 2011 CH. 20-BENEFITS FOR HOMELESS VETERANS 316 

(1) is a public or nonprofit private entity with the capacity 
(as determined by the Secretary) to effectively administer a 
grant under this section; 
(2) demonstrates that adequate financial support will be 
available to carry out the project for which the grant is sought 
consistent with the plans, specifications, and schedule submitted by 
the applicant; and 
(3) agrees to meet the applicable criteria and requirements 
established under subsections (b) and (g) and has, as determined by the 
Secretary, the capacity to meet such criteria and 
requirements. 
(e) APPLICATION REQUIREMENT.-An entity seeking a grant for 
a project under this section shall submit to the Secretary an 
application for the grant. The application shall set forth the following: 
(1) The amount of the grant sought for the project. 
(2) A description of the site for the project. 
(3) Plans, specifications, and the schedule for implementation of the 
project in accordance with criteria and requirements 
prescribed by the Secretary under subsection (b). 
(4) Reasonable assurance that upon completion of the work 
for which the grant is sought, the project will become operational and 
the facilities will be used principally to provide to 
veterans the services for which the project was designed, and 
that not more than 25 percent of the services provided under 
the project will be provided to individuals who are not veterans. 
(f) PROGRAM REQUIREMENTS.-The Secretary may not make a 
grant for a project to an applicant under this section unless the 
applicant in the application for the grant agrees to each of the 
following requirements: 
(1) To provide the services for which the grant is made at 
locations accessible to homeless veterans. 
(2) To maintain referral networks for homeless veterans 
for establishing eligibility for assistance and obtaining services, 
under available entitlement and assistance programs, and to 
aid such veterans in establishing eligibility for and obtaining 
such services. 
(3) To ensure the confidentiality of records maintained on 
homeless veterans receiving services through the project. 
(4) To establish such procedures for fiscal control and fund 
accounting as may be necessary to ensure proper disbursement 
and accounting with respect to the grant and to such payments 
as may be made under section 2012 of this title. 
(5) To seek to employ homeless veterans and formerly 
homeless veterans in positions created for purposes of the 
grant for which those veterans are qualified. 
(g) SERVICE CENTER REQUIREMENTS.-In addition to criteria 
and requirements established under subsection (b), in the case of 
an application for a grant under this section for a service center for 
homeless veterans, the Secretary shall require each of the following: 
(1) That such center provide services to homeless veterans 
during such hours as the Secretary may specify and be open 
to such veterans on an as-needed, unscheduled basis. 

317 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2012 

(2) That space at such center be made available, as mutually agreeable, 
for use by staff of the Department of Veterans Affairs, the Department 
of Labor, and other appropriate agencies and organizations in assisting 
homeless veterans served by such center. 
(3) That such center be equipped and staffed to provide or 
to assist in providing health care, mental health services, hygiene 
facilities, benefits and employment counseling, meals, 
transportation assistance, and such other services as the Secretary 
determines necessary. 
(4) That such center be equipped and staffed to provide, or 
to assist in providing, job training, counseling, and placement 
services (including job readiness and literacy and skills training), as 
well as any outreach and case management services 
that may be necessary to carry out this paragraph. 
(h) RECOVERY OF UNUSED GRANT FUNDS.-(1) If a grant recipient under this 
section does not establish a program in accordance with this section or 
ceases to furnish services under such a program for which the grant was 
made, the United States shall be entitled to recover from such recipient 
the total of all unused grant amounts made under this section to such 
recipient in connection 
with such program. 
(2) Any amount recovered by the United States under paragraph (1) may 
be obligated by the Secretary without fiscal year limitation to carry 
out provisions of this subchapter. 
(3) An amount may not be recovered under paragraph (1) as 
an unused grant amount before the end of the three-year period 
beginning on the date on which the grant is made. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 906; 
amended Pub. L. 109-444, Secs. 2(b), 8(a)(4), Dec. 21, 2006, 120 Stat. 
3304, 3313; Pub. L. 109-461, title VII, Sec. 703(a), title X, Secs. 
1004(a)(4), 1006(b), Dec. 22, 2006, 120 Stat. 3440, 
3465, 3468.) 

ï¿½ 2012. Per diem payments 

(a) PER DIEM PAYMENTS FOR FURNISHING SERVICES TO HOMELESS VETERANS.-(1) 
Subject to the availability of appropriations provided for such purpose, 
the Secretary, pursuant to such criteria as the Secretary shall 
prescribe, shall provide to a recipient of a grant under section 2011 
of this title (or an entity eligible to receive a grant under that 
section which after November 10, 1992, establishes a program that the 
Secretary determines carries out the purposes described in that 
section) per diem payments for services furnished to any homeless 
veteran- 
(A) whom the Secretary has referred to the grant recipient 
(or entity eligible for such a grant); or 
(B) for whom the Secretary has authorized the provision of 
services. 
(2)(A) The rate for such per diem payments shall be the daily 
cost of care estimated by the grant recipient or eligible entity 
adjusted by the Secretary under subparagraph (B). In no case may 
the rate determined under this paragraph exceed the rate authorized for 
State homes for domiciliary care under subsection (a)(1)(A) 
of section 1741 of this title, as the Secretary may increase from 
time to time under subsection (c) of that section. 


Sec. 2013 CH. 20-BENEFITS FOR HOMELESS VETERANS 318 

(B) The Secretary shall adjust the rate estimated by the grant 
recipient or eligible entity under subparagraph (A) to exclude other 
sources of income described in subparagraph (D) that the grant 
recipient or eligible entity certifies to be correct. 
(C) Each grant recipient or eligible entity shall provide to the 
Secretary such information with respect to other sources of income 
as the Secretary may require to make the adjustment under subparagraph 
(B). 
(D) The other sources of income referred to in subparagraphs 
(B) and (C) are payments to the grant recipient or eligible entity 
for furnishing services to homeless veterans under programs other 
than under this subchapter, including payments and grants from 
other departments and agencies of the United States, from departments 
or agencies of State or local government, and from private 
entities or organizations. 
(3) In a case in which the Secretary has authorized the provision of 
services, per diem payments under paragraph (1) may be 
paid retroactively for services provided not more than three days 
before the authorization was provided. 
(b) INSPECTIONS.-The Secretary may inspect any facility of a 
grant recipient or entity eligible for payments under subsection (a) 
at such times as the Secretary considers necessary. No per diem 
payment may be provided to a grant recipient or eligible entity 
under this section unless the facilities of the grant recipient or 
eligible entity meet such standards as the Secretary shall prescribe. 
(c) LIFE SAFETY CODE.-(1) Except as provided in paragraph 
(2), a per diem payment may not be provided under this section to 
a grant recipient or eligible entity unless the facilities of the grant 
recipient or eligible entity, as the case may be, meet applicable fire 
and safety requirements under the Life Safety Code of the National 
Fire Protection Association or such other comparable fire and safety 
requirements as the Secretary may specify. 
(2) During the five-year period beginning on the date of the enactment 
of this section, paragraph (1) shall not apply to an entity 
that received a grant under section 3 of the Homeless Veterans 
Comprehensive Service Programs Act of 1992 (Public Law 102-590; 
38 U.S.C. 7721 note) before that date if the entity meets fire and 
safety requirements established by the Secretary. 
(3) From amounts available for purposes of this section, not 
less than $5,000,000 shall be used only for grants to assist entities 
covered by paragraph (2) in meeting the Life Safety Code of the 
National Fire Protection Association or such other comparable fire 
and safety requirements as the Secretary may specify. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 908.) 

ï¿½ 2013. Authorization of appropriations 

There is authorized to be appropriated to carry out this subchapter 
$150,000,000 for fiscal year 2007 and each fiscal year 
thereafter. 

(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 909; 
amended Pub. L. 108-422, title I, Sec. 101, Nov. 30, 2004, 118 Stat. 
2380; Pub. L. 109-461, title VII, 
Sec. 703(b), Dec. 22, 2006, 120 Stat. 3440; Pub. L. 110-387, title VI, 
Sec. 601, Oct. 10, 2008, 122 Stat. 4131.) 


319 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2022 

SUBCHAPTER III-TRAINING AND OUTREACH 

ï¿½ 2021. Homeless veterans reintegration programs 

(a) IN GENERAL.-Subject to the availability of appropriations 
provided for such purpose, the Secretary of Labor shall conduct, 
directly or through grant or contract, such programs as the Secretary 
determines appropriate to provide job training, counseling, and 
placement services (including job readiness and literacy and skills 
training) to expedite the reintegration of homeless veterans into 
the labor force. 
(b) REQUIREMENT TO MONITOR EXPENDITURES OF FUNDS.-(1) 
The Secretary of Labor shall collect such information as that Secretary 
considers appropriate to monitor and evaluate the distribution and 
expenditure of funds appropriated to carry out this section. The 
information shall include data with respect to the results 
or outcomes of the services provided to each homeless veteran 
under this section. 
(2) Information under paragraph (1) shall be furnished in such 
form and manner as the Secretary of Labor may specify. 
(c) ADMINISTRATION THROUGH THE ASSISTANT SECRETARY OF 
LABOR FOR VETERANSï¿½ EMPLOYMENT AND TRAINING.-The Secretary 
of Labor shall carry out this section through the Assistant Secretary 
of Labor for Veteransï¿½ Employment and Training. 
(d) BIENNIAL REPORT TO CONGRESS.-Not less than every two 
years, the Secretary of Labor shall submit to Congress a report on 
the programs conducted under this section. The Secretary of Labor 
shall include in the report an evaluation of services furnished to 
veterans under this section and an analysis of the information 
collected under subsection (b). 
(e) AUTHORIZATION OF APPROPRIATIONS.-(1) There are authorized to be 
appropriated to carry out this section amounts as follows: 
(A) $50,000,000 for fiscal year 2002. 
(B) $50,000,000 for fiscal year 2003. 
(C) $50,000,000 for fiscal year 2004. 
(D) $50,000,000 for fiscal year 2005. 
(E) $50,000,000 for fiscal year 2006. 
(F) $50,000,000 for each of fiscal years 2007 through 2009. 
(2) Funds appropriated to carry out this section shall remain 
available until expended. Funds obligated in any fiscal year to 
carry out this section may be expended in that fiscal year and the 
succeeding fiscal year. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 909; 
amended Pub. L. 
109-233, title II, Sec. 203, June 15, 2006, 120 Stat. 404.) 

ï¿½ 2022. Coordination of outreach services for veterans at 
risk of homelessness 

(a) OUTREACH PLAN.-The Secretary, acting through the Under 
Secretary for Health, shall provide for appropriate officials of the 
Mental Health Service and the Readjustment Counseling Service of 
the Veterans Health Administration to develop a coordinated plan 
for joint outreach by the two Services to veterans at risk of 
homelessness, including particularly veterans who are being discharged 
or released from institutions after inpatient psychiatric care, 
substance abuse treatment, or imprisonment. 

Sec. 2022 CH. 20-BENEFITS FOR HOMELESS VETERANS 320 

(b) MATTERS TO BE INCLUDED.-The outreach plan under subsection (a) 
shall include the following: 
(1) Strategies to identify and collaborate with non-Department entities 
used by veterans who have not traditionally used 
Department services to further outreach efforts. 
(2) Strategies to ensure that mentoring programs, recovery 
support groups, and other appropriate support networks are 
optimally available to veterans. 
(3) Appropriate programs or referrals to family support 
programs. 
(4) Means to increase access to case management services. 
(5) Plans for making additional employment services accessible to 
veterans. 
(6) Appropriate referral sources for mental health and substance abuse 
services. 
(c) COOPERATIVE RELATIONSHIPS.-The outreach plan under 
subsection (a) shall identify strategies for the Department to enter 
into formal cooperative relationships with entities outside the 
Department to facilitate making services and resources optimally 
available to veterans. 
(d) REVIEW OF PLAN.-The Secretary shall submit the outreach 
plan under subsection (a) to the Advisory Committee on Homeless 
Veterans for its review and consultation. 
(e) OUTREACH PROGRAM.-(1) The Secretary shall carry out an 
outreach program to provide information to homeless veterans and 
veterans at risk of homelessness. The program shall include at a 
minimum- 
(A) provision of information about benefits available to eligible 
veterans from the Department; and 
(B) contact information for local Department facilities, including 
medical facilities, regional offices, and veterans centers. 
(2) In developing and carrying out the program under paragraph (1), the 
Secretary shall, to the extent practicable, consult 
with appropriate public and private organizations, including the 
Bureau of Prisons, State social service agencies, the Department of 
Defense, and mental health, veterans, and homeless advocates- 
(A) for assistance in identifying and contacting veterans 
who are homeless or at risk of homelessness; 
(B) to coordinate appropriate outreach activities with those 
organizations; and 
(C) to coordinate services provided to veterans with services provided 
by those organizations. 
(f) REPORTS.-(1) Not later than October 1, 2002, the Secretary 
shall submit to the Committees on Veteransï¿½ Affairs of the Senate 
and House of Representatives an initial report that contains an 
evaluation of outreach activities carried out by the Secretary with 
respect to homeless veterans, including outreach regarding clinical 
issues and other benefits administered under this title. The Secretary 
shall conduct the evaluation in consultation with the Under 
Secretary for Benefits, the Department of Veterans Affairs central 
office official responsible for the administration of the Readjustment 
Counseling Service, the Director of Homeless Veterans Programs, and the 
Department of Veterans Affairs central office offi

321 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2023 

cial responsible for the administration of the Mental Health Strategic 
Health Care Group. 

(2) Not later than December 31, 2005, the Secretary shall submit to the 
committees referred to in paragraph (1) an interim report on outreach 
activities carried out by the Secretary with respect to homeless 
veterans. The report shall include the following: 
(A) The Secretaryï¿½s outreach plan under subsection (a), including goals 
and time lines for implementation of the plan for 
particular facilities and service networks. 
(B) A description of the implementation and operation of 
the outreach program under subsection (e). 
(C) A description of the implementation and operation of 
the program under section 2023 of this title. 
(3) Not later than July 1, 2007, the Secretary shall submit to 
the committees referred to in paragraph (1) a final report on outreach 
activities carried out by the Secretary with respect to homeless 
veterans. The report shall include the following: 
(A) An evaluation of the effectiveness of the outreach plan 
under subsection (a). 
(B) An evaluation of the effectiveness of the outreach program under 
subsection (e). 
(C) An evaluation of the effectiveness of the demonstration 
program under section 2023 of this title. 
(D) Recommendations, if any, regarding an extension or 
modification of such outreach plan, such outreach program, 
and such demonstration program. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 910; 
amended Pub. L. 
110-387, title VI, Sec. 602(d)(3), Oct. 10, 2008, 122 Stat. 4132.) 

ï¿½ 2023. Referral and counseling services: veterans at risk of 
homelessness who are transitioning from certaininstitutions 

(a) PROGRAM AUTHORITY.-The Secretary and the Secretary of 
Labor (hereinafter in this section referred to as the ï¿½ï¿½Secretariesï¿½ï¿½) 
shall carry out a program of referral and counseling services to 
eligible veterans with respect to benefits and services available to 
such veterans under this title and under State law. 
(b) LOCATION OF PROGRAM.-The program shall be carried out 
in at least 12 locations. One location shall be a penal institution 
under the jurisdiction of the Bureau of Prisons. 
(c) SCOPE OF PROGRAM.-(1) To the extent practicable, the program shall 
provide both referral and counseling services, and in the 
case of counseling services, shall include counseling with respect to 
job training and placement (including job readiness), housing, 
health care, and other benefits to assist the eligible veteran in the 
transition from institutional living. 
(2)(A) To the extent that referral or counseling services are 
provided at a location under the program, referral services shall be 
provided in person during such period of time that the Secretaries 
may specify that precedes the date of release or discharge of the 
eligible veteran, and counseling services shall be furnished after 
such date. 

(B) The Secretaries may, as part of the program, furnish to officials 
of penal institutions outreach information with respect to re

Sec. 2031 CH. 20-BENEFITS FOR HOMELESS VETERANS 322 

ferral and counseling services for presentation to veterans in the 
custody of such officials during the 18-month period that precedes 
such date of release or discharge. 

(3) The Secretaries may enter into contracts to carry out the 
referral and counseling services required under the program with 
entities or organizations that meet such requirements as the 
Secretaries may establish. 
(4) In developing the program, the Secretaries shall consult 
with officials of the Bureau of Prisons, officials of penal institutions 
of States and political subdivisions of States, and such other officials 
as the Secretaries determine appropriate. 
(d) DURATION.-The authority of the Secretaries to provide referral and 
counseling services under the demonstration program 
shall cease on September 30, 2012. 
(e) DEFINITION.-In this section, the term ï¿½ï¿½eligible veteranï¿½ï¿½ 
means a veteran who- 
(1) is a resident of a penal institution or an institution that 
provides long-term care for mental illness; and 
(2) is at risk for homelessness absent referral and counseling services 
provided under the demonstration program (as 
determined under guidelines established by the Secretaries). 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 912; 
amended Pub. L. 110-28, title V, Sec. 5705, May 25, 2007, 121 Stat. 
170; Pub. L. 110-387, title VI, Sec. 602(a)-(d)(2), Oct. 10, 2008, 
122 Stat. 4132.) 

SUBCHAPTER IV-TREATMENT AND REHABILITATION FOR 
SERIOUSLY MENTALLY ILL AND HOMELESS VETERANS 

ï¿½ 2031. General treatment 

(a) In providing care and services under section 1710 of this 
title to veterans suffering from serious mental illness, including 
veterans who are homeless, the Secretary may provide (directly or 
in conjunction with a governmental or other entity)- 
(1) outreach services; 
(2) care, treatment, and rehabilitative services (directly or 
by contract in community-based treatment facilities, including 
halfway houses); and 
(3) therapeutic transitional housing assistance under section 2032 of 
this title, in conjunction with work therapy under 
subsection (a) or (b) of section 1718 of this title and outpatient 
care. 
(b) The authority of the Secretary under subsection (a) expires 
on December 31, 2011. 
(Added Pub. L. 105-114, title II, Sec. 202(a), Nov. 21, 1997, 111 Stat. 
2284, Sec. 
1771; renumbered Sec. 2031 and amended Pub. L. 107-95, Sec. 5(b), (f), 
Dec. 21, 
2001, 115 Stat. 918; Pub. L. 109-444, Sec. 2(c), Dec. 21, 2006, 120 
Stat. 3304; Pub. 

L. 109-461, title VII, Sec. 704(a), title X, Sec. 1006(b), Dec. 22, 
2006, 120 Stat. 3440, 
3468.) 
ï¿½ 2032. Therapeutic housing 

(a) The Secretary, in connection with the conduct of compensated work 
therapy programs, may operate residences and facilities as therapeutic 
housing. 
(b) The Secretary may use such procurement procedures for 
the purchase, lease, or other acquisition of residential housing for 

323 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2032 

purposes of this section as the Secretary considers appropriate to 
expedite the opening and operation of transitional housing and to 
protect the interests of the United States. 

(c) A residence or other facility may be operated as transitional 
housing for veterans described in paragraphs (1) and (2) of section 
1710(a) of this title under the following conditions: 
(1) Only veterans described in those paragraphs and a 
house manager may reside in the residence or facility. 
(2) Each resident, other than the house manager, shall be 
required to make payments that contribute to covering the expenses of 
board and the operational costs of the residence or 
facility for the period of residence in such housing. 
(3) In order to foster the therapeutic and rehabilitative objectives of 
such housing (A) residents shall be prohibited from 
using alcohol or any controlled substance or item, (B) any resident 
violating that prohibition may be expelled from the residence or 
facility, and (C) each resident shall agree to undergo 
drug testing or such other measures as the Secretary shall prescribe 
to ensure compliance with that prohibition. 
(4) In the establishment and operation of housing under 
this section, the Secretary shall consult with appropriate 
representatives of the community in which the housing is established 
and shall comply with zoning requirements, building 
permit requirements, and other similar requirements applicable to
other real property used for similar purposes in the community. 
(5) The residence or facility shall meet State and community fire and 
safety requirements applicable to other real property used for similar 
purposes in the community in which the 
transitional housing is located, but fire and safety requirements 
applicable to buildings of the Federal Government shall 
not apply to such property. 
(d) The Secretary shall prescribe the qualifications for house 
managers for transitional housing units operated under this section. 
The Secretary may provide for free room and subsistence for 
a house manager in addition to, or instead of payment of, a fee for 
the services provided by the manager. 
(e)(1) The Secretary may operate as transitional housing under 
this section- 

(A) any suitable residential property acquired by the Secretary as the 
result of a default on a loan made, guaranteed, 
or insured under chapter 37 of this title; 
(B) any suitable space in a facility under the jurisdiction 
of the Secretary that is no longer being used (i) to provide 
acute hospital care, or (ii) as housing for medical center employees; and 
(C) any other suitable residential property purchased, 
leased, or otherwise acquired by the Secretary. 
(2) In the case of any property referred to in paragraph (1)(A), 
the Secretary shall- 
(A) transfer administrative jurisdiction over such property 
within the Department from the Veterans Benefits Administration to the 
Veterans Health Administration; and 

Sec. 2033 CH. 20-BENEFITS FOR HOMELESS VETERANS 324 

(B) transfer from the General Post Fund to the Loan Guaranty Revolving 
Fund under chapter 37 of this title an amount 
(not to exceed the amount the Secretary paid for the property) 
representing the amount the Secretary considers could be obtained by 
sale of such property to a nonprofit organization or 
a State for use as a shelter for homeless veterans. 
(3) In the case of any residential property obtained by the Secretary 
from the Department of Housing and Urban Development 
under this section, the amount paid by the Secretary to that Department 
for that property may not exceed the amount that the 
Secretary of Housing and Urban Development would charge for the 
sale of that property to a nonprofit organization or a State for use 
as a shelter for homeless persons. Funds for such charge shall be 
derived from the General Post Fund. 
(f) The Secretary shall prescribe- 
(1) a procedure for establishing reasonable payment rates 
for persons residing in transitional housing; and 
(2) appropriate limits on the period for which such persons 
may reside in transitional housing. 
(g) The Secretary may dispose of any property acquired for the 
purpose of this section. The proceeds of any such disposal shall be 
credited to the General Post Fund. 
(h) Funds received by the Department under this section shall 
be deposited in the General Post Fund. The Secretary may distribute out 
of the fund such amounts as necessary for the acquisition, management, 
maintenance, and disposition of real property 
for the purpose of carrying out such program. The Secretary shall 
manage the operation of this section so as to ensure that expenditures 
under this subsection for any fiscal year shall not exceed by 
more than $500,000 proceeds credited to the General Post Fund 
under this section. The operation of the program and funds received 
shall be separately accounted for, and shall be stated in the 
documents accompanying the Presidentï¿½s budget for each fiscal 
year. 
(Added Pub. L. 105-114, title II, Sec. 202(a), Nov. 21, 1997, 111 Stat. 
2284, Sec. 1772; renumbered Sec. 2032, Pub. L. 107-95, Sec. 5(b)(1), 
Dec. 21, 2001, 115 Stat. 918.) 

ï¿½ 2033. Additional services at certain locations 

(a) Subject to the availability of appropriations, the Secretary 
shall operate a program under this section to expand and improve 
the provision of benefits and services by the Department to homeless 
veterans. 
(b) The program shall include the establishment of sites under 
the jurisdiction of the Secretary to be centers for the provision of 
comprehensive services to homeless veterans. The services to be 
provided at each site shall include a comprehensive and coordinated 
array of those specialized services which may be provided 
under existing law. The Secretary shall carry out the program 
under this section in sites in at least each of the 20 largest 
metropolitan statistical areas. 
(c) The program shall include the services of such employees 
of the Veterans Benefits Administration as the Secretary deter

325 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2034 

mines appropriate at sites under the jurisdiction of the Secretary 
at which services are provided to homeless veterans. 

(d) The program under this section shall terminate on December 31, 2011. 
(Added Pub. L. 105-114, title II, Sec. 202(a), Nov. 21, 1997, 111 Stat. 
2286, Sec. 1773; renumbered Sec. 2033 and amended Pub. L. 107-95, Sec. 
5(b)(1), (f), 8(b), Dec. 21, 2001, 115 Stat. 918, 919; Pub. L. 109-444, 
Sec. 2(d), Dec. 21, 2006, 120 Stat. 3304; Pub. L. 109-461, title VII, 
Sec. 704(b), title X, Sec. 1006(b), Dec. 22, 2006, 120 
Stat. 3440, 3468.) 

ï¿½ 2034. Coordination with other agencies and organizations 

(a) In assisting homeless veterans, the Secretary shall coordinate 
with, and may provide services authorized under this title in 
conjunction with, State and local governments, other appropriate 
departments and agencies of the Federal Government, and nongovernmental 
organizations. 
(b)(1) The Secretary shall require the director of each medical 
center or the director of each regional benefits office to make an 
annual assessment of the needs of homeless veterans living within 
the area served by the medical center or regional office, as the case 
may be. 

(2) Each such assessment shall be made in coordination with 
representatives of State and local governments, other appropriate 
departments and agencies of the Federal Government, and nongovernmental 
organizations that have experience working with 
homeless persons in that area. 
(3) Each such assessment shall identify the needs of homeless 
veterans with respect to the following: 
(A) Health care. 
(B) Education and training. 
(C) Employment. 
(D) Shelter. 
(E) Counseling. 
(F) Outreach services. 
(4) Each assessment shall also indicate the extent to which the 
needs referred to in paragraph (3) are being met adequately by the 
programs of the Department, of other departments and agencies of 
the Federal Government, of State and local governments, and of 
nongovernmental organizations. 
(5) Each assessment shall be carried out in accordance with 
uniform procedures and guidelines prescribed by the Secretary. 
(6) The Secretary shall review each annual assessment under 
this subsection and shall consolidate the findings and conclusions 
of each such assessment into the next annual report submitted to 
Congress under section 2065 of this title. 
(c) In furtherance of subsection (a), the Secretary shall require 
the director of each medical center and the director of each regional 
benefits office, in coordination with representatives of State and 
local governments, other Federal officials, and nongovernmental 
organizations that have experience working with homeless persons in 
the areas served by such facility or office, to- 
(1) develop a list of all public and private programs that 
provide assistance to homeless persons or homeless veterans in 

Sec. 2041 CH. 20-BENEFITS FOR HOMELESS VETERANS 326 

the area concerned, together with a description of the services 
offered by those programs; 

(2) seek to encourage the development by the representatives of such 
entities, in coordination with the director, of a 
plan to coordinate among such public and private programs the 
provision of services to homeless veterans; 
(3) take appropriate action to meet, to the maximum extent practicable 
through existing programs and available resources, the needs of 
homeless veterans that are identified in the assessment conducted under 
subsection (b); and (4) attempt to inform homeless veterans whose 
needs the director cannot meet under paragraph (3) of the services a
vailable to such veterans within the area served by such center or 
office. 
(Added Pub. L. 105-114, title II, Sec. 202(a), Nov. 21, 1997, 111 Stat. 
2286, Sec. 1774; renumbered Sec. 2034 and amended Pub. L. 107-95, Secs. 
5(b)(1), 6(b), Dec. 21, 2001, 115 Stat. 918, 919.) 

SUBCHAPTER V-HOUSING ASSISTANCE 

ï¿½ 2041. Housing assistance for homeless veterans 

(a)(1) To assist homeless veterans and their families in acquiring 
shelter, the Secretary may enter into agreements described in 
paragraph (2) with- 

(A) nonprofit organizations, with preference being given to 
any organization named in, or approved by the Secretary 
under, section 5902 of this title; or 
(B) any State or any political subdivision thereof. 
(2) To carry out paragraph (1), the Secretary may enter into 
agreements to sell, lease, lease with an option to purchase, or donate 
real property, and improvements thereon, acquired by the Secretary as 
the result of a default on a loan made, insured, or guaranteed under 
this chapter. Such sale or lease or donation shall be 
for such consideration as the Secretary determines is in the best 
interests of homeless veterans and the Federal Government. 
(3) The Secretary may enter into an agreement under paragraph (1) of 
this subsection only if- 
(A) the Secretary determines that such an action will not 
adversely affect the ability of the Department- 
(i) to fulfill its statutory missions with respect to the 
Department loan guaranty program and the short-and 
long-term solvency of the Veterans Housing Benefit Program Fund 
established under section 3722 of this title; or 
(ii) to carry out other functions and administer other 
programs authorized by law; 
(B) the entity to which the property is sold, leased, or donated agrees 
to- 
(i) utilize the property solely as a shelter primarily for 
homeless veterans and their families, 
(ii) comply with all zoning laws relating to the property, 
(iii) make no use of the property that is not compatible 
with the area where the property is located, and 

327 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2042 

(iv) take such other actions as the Secretary determines are necessary 
or appropriate in the best interests of 
homeless veterans and the Federal Government; and 
(C) the Secretary determines that there is no significant 
likelihood of the property being sold for a price sufficient to reduce 
the liability of the Department or the veteran who defaulted on the loan. 
(4) The term of any lease under this subsection may not exceed 
three years. 
(5) An approved entity that leases a property from the Secretary under 
this section shall be responsible for the payment of 
any taxes, utilities, liability insurance, and other maintenance 
charges or similar charges that apply to the property. 
(6) Any agreement, deed, or other instrument executed by the 
Secretary under this subsection shall be on such terms and conditions 
as the Secretary determines to be appropriate and necessary 
to carry out the purpose of such agreement. 
(b)(1) Subject to paragraphs (2) and (3), the Secretary may 
make loans to organizations described in paragraph (1)(A) of subsection 
(a) to finance the purchase of property by such organizations under 
such subsection. 

(2) In making a loan under this subsection, the Secretary- 
(A) shall establish credit standards to be used for this purpose; 
(B) may, pursuant to section 3733(a)(6) of this title, provide that the 
loan will bear interest at a rate below the rate 
that prevails for similar loans in the market in which the loan 
is made; and 
(C) may waive the collection of a fee under section 3729 of 
this title in any case in which the Secretary determines that 
such a waiver would be appropriate. 
(c) The Secretary may not enter into agreements under subsection (a) 
after December 31, 2011. 
(Added Pub. L. 102-54, Sec. 9(a), June 13, 1991, 105 Stat. 272, Sec. 
1835; renumbered Sec. 3735, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406; amended 
Pub. L. 102-590, Sec. 8, 9, Nov. 10, 1992, 106 Stat. 5140; Pub. L. 
103-446, title XII, 
Sec. 1201(d)(13), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 104-110, title 
I, Sec. 101(h), 
Feb. 13, 1996, 110 Stat. 768; Pub. L. 105-114, title II, Sec. 203(a), 
Nov. 21, 1997, 
111 Stat. 2288; Pub. L. 105-368, title VI, Sec. 602(e)(1)(G), Nov. 11, 
1998, 112 Stat. 
3347; Pub. L. 106-117, title IX, Sec. 902, Nov. 30, 1999, 113 Stat.
1587; renumbered 
Sec. 2041, Pub. L. 107-95, Sec. 5(c), Dec. 21, 2001, 115 Stat. 918; 
Pub. L. 108-170, 
title IV, Sec. 404, Dec. 6, 2003, 117 Stat. 2063; Pub. L. 109-444, 
Sec. 8(a)(5), Dec. 
21, 2006, 120 Stat. 3313; Pub. L. 109-461, title VII, Sec. 705, 
title X, Secs. 
1004(a)(5), 1006(b), Dec. 22, 2006, 120 Stat. 3440, 3465, 3468.) 

ï¿½ 2042. Supported housing for veterans participating in 
compensated work therapies 

The Secretary may authorize homeless veterans in the compensated work 
therapy program to be provided housing through 
the therapeutic residence program under section 2032 of this title 
or through grant and per diem providers under subchapter II of 
this chapter. 

(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 913.) 


Sec. 2043 CH. 20-BENEFITS FOR HOMELESS VETERANS 328 

ï¿½ 2043. Domiciliary care programs 

(a) AUTHORITY.-The Secretary may establish up to 10 programs under 
section 1710(b) of this title (in addition to any program that is 
established as of the date of the enactment of this section) to 
provide domiciliary services under such section to homeless 
veterans. 
(b) ENHANCEMENT OF CAPACITY OF DOMICILIARY CARE PROGRAMS FOR FEMALE 
VETERANS.-The Secretary shall take appropriate actions to ensure that 
the domiciliary care programs of the 
Department are adequate, with respect to capacity and with respect to 
safety, to meet the needs of veterans who are women. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 913; 
amended Pub. L. 
110-387, title VI, Sec. 603, Oct. 10, 2008, 122 Stat. 4132.) 

ï¿½ 2044. Financial assistance for supportive services for very 
low-income veteran families in permanent housing 

(a) DISTRIBUTION OF FINANCIAL ASSISTANCE.-(1) The Secretary shall 
provide financial assistance to eligible entities approved under this 
section to provide and coordinate the provision 
of supportive services described in subsection (b) for very low-income 
veteran families occupying permanent housing. 
(2) Financial assistance under this section shall consist of 
grants for each such family for which an approved eligible entity 
is providing or coordinating the provision of supportive services. 
(3)(A) The Secretary shall provide such grants to each eligible 
entity that is providing or coordinating the provision of supportive 
services. 

(B) The Secretary is authorized to establish intervals of payment for 
the administration of such grants and establish a maximum amount to 
be awarded, in accordance with the services being 
provided and their duration. 
(4) In providing financial assistance under paragraph (1), the 
Secretary shall give preference to entities providing or coordinating 
the provision of supportive services for very low-income veteran 
families who are transitioning from homelessness to permanent 
housing. 
(5) The Secretary shall ensure that, to the extent practicable, 
financial assistance under this subsection is equitably distributed 
across geographic regions, including rural communities and tribal 
lands. 
(6) Each entity receiving financial assistance under this section 
to provide supportive services to a very low-income veteran family 
shall notify that family that such services are being paid for, in 
whole or in part, by the Department. 
(7) The Secretary may require entities receiving financial assistance 
under this section to submit a report to the Secretary that 
describes the projects carried out with such financial assistance. 
(b) SUPPORTIVE SERVICES.-The supportive services referred to 
in subsection (a) are the following: 
(1) Services provided by an eligible entity or a subcontractor of an 
eligible entity that address the needs of very low-
income veteran families occupying permanent housing, including- 

329 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2044 

(A) outreach services; 
(B) case management services; 
(C) assistance in obtaining any benefits from the Department which the 
veteran may be eligible to receive, including, but not limited to, 
vocational and rehabilitation 
counseling, employment and training service, educational 
assistance, and health care services; and 
(D) assistance in obtaining and coordinating the provision of other 
public benefits provided in federal, State, or 
local agencies, or any organization defined in subsection 
(f), including- 
(i) health care services (including obtaining health 
insurance); 
(ii) daily living services; 
(iii) personal financial planning; 
(iv) transportation services; 
(v) income support services; 
(vi) fiduciary and representative payee services; 
(vii) legal services to assist the veteran family 
with issues that interfere with the familyï¿½s ability to 
obtain or retain housing or supportive services; 
(viii) child care; 
(ix) housing counseling; and 
(x) other services necessary for maintaining independent living. 
(2) Services described in paragraph (1) that are delivered 
to very low-income veteran families who are homeless and who 
are scheduled to become residents of permanent housing within 90 days 
pending the location or development of housing suitable for permanent 
housing. 
(3) Services described in paragraph (1) for very low-income 
veteran families who have voluntarily chosen to seek other 
housing after a period of tenancy in permanent housing, that 
are provided, for a period of 90 days after such families exit 
permanent housing or until such families commence receipt of 
other housing services adequate to meet their current needs, 
but only to the extent that services under this paragraph are 
designed to support such families in their choice to transition 
into housing that is responsive to their individual needs and 
preferences. 
(c) APPLICATION FOR FINANCIAL ASSISTANCE.-(1) An eligible 
entity seeking financial assistance under subsection (a) shall submit 
to the Secretary an application therefor in such form, in such 
manner, and containing such commitments and information as the 
Secretary determines to be necessary to carry out this section. 
(2) Each application submitted by an eligible entity under 
paragraph (1) shall contain- 
(A) a description of the supportive services proposed to be 
provided by the eligible entity and the identified needs for 
those services; 
(B) a description of the types of very low-income veteran 
families proposed to be provided such services; 
(C) an estimate of the number of very low-income veteran 
families proposed to be provided such services; 

Sec. 2044 CH. 20-BENEFITS FOR HOMELESS VETERANS 330 

(D) evidence of the experience of the eligible entity in providing 
supportive services to very low-income veteran families; 
and 
(E) a description of the managerial capacity of the eligible 
entity- 
(i) to coordinate the provision of supportive services 
with the provision of permanent housing by the eligible entity or by 
other organizations; 
(ii) to assess continuously the needs of very low-income veteran 
families for supportive services; 
(iii) to coordinate the provision of supportive services 
with the services of the Department; 
(iv) to tailor supportive services to the needs of very 
low-income veteran families; and 
(v) to seek continuously new sources of assistance to 
ensure the long-term provision of supportive services to 
very low-income veteran families. 
(3) The Secretary shall establish criteria for the selection of 
eligible entities to be provided financial assistance under this 
section. 
(d) TECHNICAL ASSISTANCE.-(1) The Secretary shall provide 
training and technical assistance to participating eligible entities 
regarding the planning, development, and provision of supportive 
services to very low-income veteran families occupying permanent 
housing, through the Technical Assistance grants program in section 
2064 of this title. 
(2) The Secretary may provide the training described in paragraph (1) 
directly or through grants or contracts with appropriate 
public or nonprofit private entities. 
(e) FUNDING.-(1) From amounts appropriated to the Department for 
Medical Services, there shall be available to carry out subsection 
(a), (b), and (c) amounts as follows: 
(A) $15,000,000 for fiscal year 2009. 
(B) $20,000,000 for fiscal year 2010. 
(C) $25,000,000 for fiscal year 2011. 
(2) Not more than $750,000 may be available under paragraph 
(1) in any fiscal year to provide technical assistance under subsection 
(d). 
(3) There is authorized to be appropriated $1,000,000 for each 
of the fiscal year 2009 through 2011 to carry out the provisions of 
subsection (d). 
(f) DEFINITIONS.-In this section: 
(1) The term ï¿½ï¿½consumer cooperativeï¿½ï¿½ has the meaning 
given such term in section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q). 
(2) The term ï¿½ï¿½eligible entityï¿½ï¿½ means- 
(A) a private nonprofit organization; or 
(B) a consumer cooperative. 
(3) The term ï¿½ï¿½homelessï¿½ï¿½ has the meaning given that term 
in section 103 of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11302). 
(4) The term ï¿½ï¿½permanent housingï¿½ï¿½ means community-
based housing without a designated length of stay. 
(5) The term ï¿½ï¿½private nonprofit organizationï¿½ï¿½ means any of 
the following: 

331 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2051 

(A) Any incorporated private institution or foundation- 
(i) no part of the net earnings of which inures to 
the benefit of any member, founder, contributor, or individual; 
(ii) which has a governing board that is responsible for the operation 
of the supportive services provided under this section; and 
(iii) which is approved by the Secretary as to financial responsibility. 
(B) A for-profit limited partnership, the sole general 
partner of which is an organization meeting the requirements of clauses 
(i), (ii), and (iii) of subparagraph (A). 
(C) A corporation wholly owned and controlled by an 
organization meeting the requirements of clauses (i), (ii), 
and (iii) of subparagraph (A). 
(D) A tribally designated housing entity (as defined in 
section 4 of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4103)). 
(6)(A) Subject to subparagraphs (B) and (C), the term ï¿½ï¿½very 
low-income veteran familyï¿½ï¿½ means a veteran family whose income does 
not exceed 50 percent of the median income for an 
area specified by the Secretary for purposes of this section, as 
determined by the Secretary in accordance with this paragraph. 

(B) The Secretary shall make appropriate adjustments to 
the income requirement under subparagraph (A) based on family size. 
(C) The Secretary may establish an income ceiling higher 
or lower than 50 percent of the median income for an area if 
the Secretary determines that such variations are necessary 
because the area has unusually high or low construction costs, 
fair market rents (as determined under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f)), or family incomes. 
(7) The term ï¿½ï¿½veteran familyï¿½ï¿½ includes a veteran who is a 
single person and a family in which the head of household or 
the spouse of the head of household is a veteran. 
(Added Pub. L. 110-387, title VI, Sec. 604(b)(1), Oct. 10, 2008, 122 
Stat. 4132.) 

SUBCHAPTER VI-LOAN GUARANTEE FOR MULTIFAMILY 
TRANSITIONAL HOUSING 


ï¿½ 2051. General authority 

(a) The Secretary may guarantee the full or partial repayment 
of a loan that meets the requirements of this subchapter. 
(b)(1) Not more than 15 loans may be guaranteed under subsection (a), 
of which not more than five such loans may be guaranteed during the 
3-year period beginning on the date of the enactment of this subchapter. 

(2) A guarantee of a loan under subsection (a) shall be in an 
amount that is not less than the amount necessary to sell the loan 
in a commercial market. 

Sec. 2052 CH. 20-BENEFITS FOR HOMELESS VETERANS 332 

(3) Not more than an aggregate amount of $100,000,000 in 
loans may be guaranteed under subsection (a). 
(c) A loan may not be guaranteed under this subchapter unless, before 
closing such loan, the Secretary has approved the loan. 
(d)(1) The Secretary shall enter into contracts with a qualified 
nonprofit organization, or other qualified organization, that has 
experience in underwriting transitional housing projects to obtain 
advice in carrying out this subchapter, including advice on the terms 
and conditions necessary for a loan that meets the requirements of 
section 2052 of this title. 

(2) For purposes of paragraph (1), a nonprofit organization is 
an organization that is described in paragraph (3) or (4) of subsection 
(c) of section 501 of the Internal Revenue Code of 1986 and 
is exempt from tax under subsection (a) of such section. 
(e) The Secretary may carry out this subchapter in advance of 
the issuance of regulations for such purpose. 
(f) The Secretary may guarantee loans under this subchapter 
notwithstanding any requirement for prior appropriations for such 
purpose under any provision of law. 
(g) Notwithstanding any other provision of law, a multifamily 
transitional housing project that is funded by a loan guaranteed 
under this subchapter may accept uncompensated voluntary services 
performed by any eligible entity (as that term is defined in section 
2011(d) of this title) in connection with the construction, alteration, 
or repair of such project. 
(Added Pub. L. 105-368, title VI, Sec. 601(a), Nov. 11, 1998, 112 Stat. 
3342, Sec. 
3772; renumbered Sec. 2051 and amended Pub. L. 107-95, Sec. 5(d)(1), 
(2)(B), Dec. 21, 2001, 115 Stat. 918; Pub. L. 108-454, title IV, Sec. 
402(a), Dec. 10, 2004, 118 Stat. 3615.) 

ï¿½ 2052. Requirements 

(a) A loan referred to in section 2051 of this title meets the 
requirements of this subchapter if each of the following requirements 
is met: 
(1) The loan- 
(A) is for- 
(i) construction of, rehabilitation of, or acquisition 
of land for a multifamily transitional housing project 
described in subsection (b), or more than one of such 
purposes; or 
(ii) refinancing of an existing loan for such a 
project; and 
(B) may also include additional reasonable amounts 
for- 
(i) financing acquisition of furniture, equipment, 
supplies, or materials for the project; or 
(ii) in the case of a loan made for purposes of subparagraph (A)(i),
supplying the organization carrying 
out the project with working capital relative to the 
project. 
(2) The loan is made in connection with funding or the provision of 
substantial property or services for such project by either a State 
or local government or a nongovernmental entity, 
or both. 

333 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2052 

(3) The maximum loan amount does not exceed the lesser 
of- 
(A) that amount generally approved (utilizing prudent 
underwriting principles) in the consideration and approval 
of projects of similar nature and risk so as to assure repayment of 
the loan obligation; and 
(B) 90 percent of the total cost of the project. 
(4) The loan is of sound value, taking into account the 
creditworthiness of the entity (and the individual members of 
the entity) applying for such loan. 
(5) The loan is secured. 
(6) The loan is subject to such terms and conditions as the 
Secretary determines are reasonable, taking into account other 
housing projects with similarities in size, location, population, 
and services provided. 
(b) For purposes of this subchapter, a multifamily transitional 
housing project referred to in subsection (a)(1) is a project that- 
(1) provides transitional housing to homeless veterans, 
which housing may be single room occupancy (as defined in 
section 8(n) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(n))); 
(2) provides supportive services and counselling services 
(including job counselling) at the project site with the goal of 
making such veterans self-sufficient; 
(3) requires that each such veteran seek to obtain and 
maintain employment; 
(4) charges a reasonable fee for occupying a unit in such 
housing; and 
(5) maintains strict guidelines regarding sobriety as a condition of 
occupying such unit. 
(c) Such a project- 
(1) may include space for neighborhood retail services, 
other commercial activities, or job training programs; and 
(2) may provide transitional housing to veterans who are 
not homeless and to homeless individuals who are not veterans 
if- 
(A) at the time of taking occupancy by any such veteran or homeless 
individual, the transitional housing 
needs of homeless veterans in the project area have been 
met; 
(B) the housing needs of any such veteran or homeless 
individual can be met in a manner that is compatible with 
the manner in which the needs of homeless veterans are 
met under paragraph (1); and 
(C) the provisions of paragraphs (4) and (5) of subsection (b) are met. 
(d) In determining whether to guarantee a loan under this subchapter, 
the Secretary shall consider- 
(1) the availability of Department of Veterans Affairs medical services 
to residents of the multifamily transitional housing project; and 
(2) the extent to which needs of homeless veterans are met 
in a community, as assessed under section 107 of Public Law 
102-405. 

Sec. 2053 CH. 20-BENEFITS FOR HOMELESS VETERANS 334 

(Added Pub. L. 105-368, title VI, Sec. 601(a), Nov. 11, 1998, 112 Stat. 
3343, Sec. 
3773; renumbered Sec. 2052 and amended Pub. L. 107-95, Sec. 5(d)(1), 
(2)(C), Dec. 
21, 2001, 115 Stat. 918; Pub. L. 108-454, title IV, Sec. 402(b), 
Dec. 10, 2004, 118 
Stat. 3616.) 

ï¿½ 2053. Default 

(a) The Secretary shall take such steps as may be necessary to 
obtain repayment on any loan that is in default and that is guaranteed 
under this subchapter. 
(b) Upon default of a loan guaranteed under this subchapter 
and terminated pursuant to State law, a lender may file a claim 
under the guarantee for an amount not to exceed the lesser of- 
(1) the maximum guarantee; or 
(2) the difference between- 
(A) the total outstanding obligation on the loan, including principal, 
interest, and expenses authorized by the 
loan documents, through the date of the public sale (as authorized under 
such documents and State law); and 
(B) the amount realized at such sale. 
(Added Pub. L. 105-368, title VI, Sec. 601(a), Nov. 11, 1998, 112 Stat. 
3344, Sec. 
3774; renumbered Sec. 2053, Pub. L. 107-95, Sec. 5(d)(1), Dec. 21, 2001, 
115 Stat. 
918.) 

ï¿½ 2054. Audit 

(a) During each of the first 3 years of operation of a multifamily 
transitional housing project with respect to which a loan is 
guaranteed under this subchapter, there shall be an annual, independent 
audit of such operation. Such audit shall include a detailed 
statement of the operations, activities, and accomplishments of 
such project during the year covered by such audit. The party responsible 
for obtaining such audit (and paying the costs therefor) 
shall be determined before the Secretary issues a guarantee under 
this subchapter. 
(b) After the first three years of operation of such a multifamily 
transitional housing project, the Secretary may provide for 
periodic audits of the project. 
(Added Pub. L. 105-368, title VI, Sec. 601(a), Nov. 11, 1998, 112 Stat. 
3345, Sec. 3775; amended Pub. L. 106-117, title VII, Sec. 712, Nov. 30, 
1999, 113 Stat. 1584; renumbered Sec. 2054, Pub. L. 107-95, Sec. 
5(d)(1), Dec. 21, 2001, 115 Stat. 918.) 

SUBCHAPTER VII-OTHER PROVISIONS 

ï¿½ 2061. Grant program for homeless veterans with special 
needs 

(a) ESTABLISHMENT.-The Secretary shall carry out a program 
to make grants to health care facilities of the Department and to 
grant and per diem providers in order to encourage development by 
those facilities and providers of programs for homeless veterans 
with special needs. 
(b) HOMELESS VETERANS WITH SPECIAL NEEDS.-For purposes 
of this section, homeless veterans with special needs include homeless 
veterans who are- 
(1) women, including women who have care of minor dependents; 
(2) frail elderly; 

335 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2063 

(3) terminally ill; or 
(4) chronically mentally ill. 
(c) FUNDING.-(1) From amounts appropriated to the Department for 
ï¿½ï¿½Medical Servicesï¿½ï¿½ for each of fiscal years 2007 through 
2011, $5,000,000 shall be available for each such fiscal year for the 
purposes of the program under this section. 
(2) The Secretary shall ensure that funds for grants under this 
section are designated for the first three years of operation of the 
program under this section as a special purpose program for which 
funds are not allocated through the Veterans Equitable Resource 
Allocation system. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 913; 
amended Pub. L. 
109-461, title VII, Sec. 706, Dec. 22, 2006, 120 Stat. 3440.) 

ï¿½ 2062. Dental care 

(a) IN GENERAL.-For purposes of section 1712(a)(1)(H) of this 
title, outpatient dental services and treatment of a dental condition 
or disability of a veteran described in subsection (b) shall be 
considered to be medically necessary, subject to subsection (c), if- 
(1) the dental services and treatment are necessary for the 
veteran to successfully gain or regain employment; 
(2) the dental services and treatment are necessary to alleviate pain; or 
(3) the dental services and treatment are necessary for 
treatment of moderate, severe, or severe and complicated gingival and 
periodontal pathology. 
(b) ELIGIBLE VETERANS.-Subsection (a) applies to a veteran- 
(1) who is enrolled for care under section 1705(a) of this 
title; and 
(2) who, for a period of 60 consecutive days, is receiving 
care (directly or by contract) in any of the following settings: 
(A) A domiciliary under section 1710 of this title. 
(B) A therapeutic residence under section 2032 of this 
title. 
(C) Community residential care coordinated by the 
Secretary under section 1730 of this title. 
(D) A setting for which the Secretary provides funds 
for a grant and per diem provider. 
(3) For purposes of paragraph (2), in determining whether 
a veteran has received treatment for a period of 60 consecutive 
days, the Secretary may disregard breaks in the continuity of 
treatment for which the veteran is not responsible. 
(c) LIMITATION.-Dental benefits provided by reason of this section 
shall be a one-time course of dental care provided in the same 
manner as the dental benefits provided to a newly discharged veteran. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 913.) 

ï¿½ 2063. Employment assistance 

The Secretary may authorize homeless veterans receiving care 
through vocational rehabilitation programs to participate in the 
compensated work therapy program under section 1718 of this 
title. 


Sec. 2064 CH. 20-BENEFITS FOR HOMELESS VETERANS 336 

(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 914.) 

ï¿½ 2064. Technical assistance grants for nonprofit community-based groups 

(a) GRANT PROGRAM.-The Secretary shall carry out a program 
to make grants to entities or organizations with expertise in preparing 
grant applications. Under the program, the entities or organizations 
receiving grants shall provide technical assistance to nonprofit 
community-based groups with experience in providing assistance to 
homeless veterans in order to assist such groups in applying for grants 
under this chapter and other grants relating to addressing problems of 
homeless veterans. 
(b) AUTHORIZATION OF APPROPRIATIONS.-There are authorized 
to be appropriated $1,000,000 for each of fiscal years 2007 through 
2012 to carry out the program under this section. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 914; 
amended Pub. L. 
109-461, title VII, Sec. 707, Dec. 22, 2006, 120 Stat. 3440.) 

ï¿½ 2065. Annual report on assistance to homeless veterans 

(a) ANNUAL REPORT.-Not later than June 15 of each year, the 
Secretary shall submit to the Committees on Veteransï¿½ Affairs of 
the Senate and House of Representatives a report on the activities 
of the Department during the calendar year preceding the report 
under programs of the Department under this chapter and other 
programs of the Department for the provision of assistance to 
homeless veterans. 
(b) GENERAL CONTENTS OF REPORT.-Each report under subsection (a) shall 
include the following: 
(1) The number of homeless veterans provided assistance 
under the programs referred to in subsection (a). 
(2) The cost to the Department of providing such assistance under those 
programs. 
(3) The Secretaryï¿½s evaluation of the effectiveness of the 
programs of the Department in providing assistance to homeless 
veterans, including- 
(A) residential work-therapy programs; 
(B) programs combining outreach, community-based 
residential treatment, and case-management; and 
(C) contract care programs for alcohol and drug-dependence or use 
disabilities. 
(4) The Secretaryï¿½s evaluation of the effectiveness of programs 
established by recipients of grants under section 2011 of 
this title and a description of the experience of those recipients 
in applying for and receiving grants from the Secretary of 
Housing and Urban Development to serve primarily homeless 
persons who are veterans. 
(5) Information on the efforts of the Secretary to coordinate the 
delivery of housing and services to homeless veterans 
with other Federal departments and agencies, including- 
(A) the Department of Defense; 
(B) the Department of Health and Human Services; 
(C) the Department of Housing and Urban Development; 
(D) the Department of Justice; 

337 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2066 

(E) the Department of Labor; 
(F) the Interagency Council on Homelessness; 
(G) the Social Security Administration; and 
(H) any other Federal department or agency with 
which the Secretary coordinates the delivery of housing 
and services to homeless veterans. 
(6) Any other information on those programs and on the 
provision of such assistance that the Secretary considers appropriate. 
(c) HEALTH CARE CONTENTS OF REPORT.-Each report under 
subsection (a) shall include, with respect to programs of the 
Department addressing health care needs of homeless veterans, the 
following: 
(1) Information about expenditures, costs, and workload 
under the program of the Department known as the Health 
Care for Homeless Veterans program (HCHV). 
(2) Information about the veterans contacted through that 
program. 
(3) Information about program treatment outcomes under 
that program. 
(4) Information about supported housing programs. 
(5) Information about the Departmentï¿½s grant and per 
diem provider program under subchapter II of this chapter. 
(6) The findings and conclusions of the assessments of the 
medical needs of homeless veterans conducted under section 
2034(b) of this title. 
(7) Other information the Secretary considers relevant in 
assessing those programs. 
(d) BENEFITS CONTENT OF REPORT.-Each report under subsection (a) shall 
include, with respect to programs and activities of 
the Veterans Benefits Administration in processing of claims for 
benefits of homeless veterans during the preceding year, the following: 
(1) Information on costs, expenditures, and workload of 
Veterans Benefits Administration claims evaluators in processing claims 
for benefits of homeless veterans. 
(2) Information on the filing of claims for benefits by homeless veterans. 
(3) Information on efforts undertaken to expedite the processing of 
claims for benefits of homeless veterans. 
(4) Other information that the Secretary considers relevant 
in assessing the programs and activities. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 914; 
amended Pub. L. 108-170, title IV, Sec. 405(b), Dec. 6, 2003, 117 Stat. 
2063; Pub. L. 109-461, title VII, Sec. 708, Dec. 22, 2006, 120 Stat. 
3440; Pub. L. 110-387, title IX, Sec. 901(a)(2), Oct. 10, 2008, 122 
Stat. 4142.) 

ï¿½ 2066. Advisory Committee on Homeless Veterans 

(a) ESTABLISHMENT.-(1) There is established in the Department the 
Advisory Committee on Homeless Veterans (hereinafter 
in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). 
(2) The Committee shall consist of not more than 15 members 
appointed by the Secretary from among the following: 
(A) Veterans service organizations. 

Sec. 2066 CH. 20-BENEFITS FOR HOMELESS VETERANS 338 

(B) Advocates of homeless veterans and other homeless individuals. 
(C) Community-based providers of services to homeless individuals. 
(D) Previously homeless veterans. 
(E) State veterans affairs officials. 
(F) Experts in the treatment of individuals with mental illness. 
(G) Experts in the treatment of substance use disorders. 
(H) Experts in the development of permanent housing alternatives for 
lower income populations. 
(I) Experts in vocational rehabilitation. 
(J) Such other organizations or groups as the Secretary 
considers appropriate. 
(3) The Committee shall include, as ex officio members, the following: 
(A) The Secretary of Labor (or a representative of the Secretary 
selected after consultation with the Assistant Secretary 
of Labor for Veteransï¿½ Employment). 
(B) The Secretary of Defense (or a representative of the 
Secretary). 
(C) The Secretary of Health and Human Services (or a representative of 
the Secretary). 
(D) The Secretary of Housing and Urban Development (or 
a representative of the Secretary). 
(E) The Executive Director of the Interagency Council on 
Homelessness (or a representative of the Executive Director). 
(F) The Under Secretary for Health (or a representative of 
the Under Secretary after consultation with the Director of the 
Office of Homeless Veterans Programs). 
(G) The Under Secretary for Benefits (or a representative 
of the Under Secretary after consultation with the Director of 
the Office of Homeless Veterans Programs). 
(4)(A) The Secretary shall determine the terms of service and 
allowances of the members of the Committee, except that a term 
of service may not exceed three years. The Secretary may reappoint 
any member for additional terms of service. 

(B) Members of the Committee shall serve without pay. Members may 
receive travel expenses, including per diem in lieu of subsistence for 
travel in connection with their duties as members of 
the Committee. 
(b) DUTIES.-(1) The Secretary shall consult with and seek the 
advice of the Committee on a regular basis with respect to the 
provision by the Department of benefits and services to homeless veterans. 
(2) In providing advice to the Secretary under this subsection, 
the Committee shall- 
(A) assemble and review information relating to the needs 
of homeless veterans; 
(B) provide an on-going assessment of the effectiveness of 
the policies, organizational structures, and services of the Department 
in assisting homeless veterans; and 
(C) provide on-going advice on the most appropriate means 
of providing assistance to homeless veterans. 

339 CH. 20-BENEFITS FOR HOMELESS VETERANS Sec. 2066 

(3) The Committee shall- 
(A) review the continuum of services provided by the Department directly 
or by contract in order to define cross-cutting 
issues and to improve coordination of all services with the Department 
that are involved in addressing the special needs of 
homeless veterans; 
(B) identify (through the annual assessments under section 
2034 of this title and other available resources) gaps in programs of 
the Department in serving homeless veterans, including identification 
of geographic areas with unmet needs, and 
provide recommendations to address those gaps; 
(C) identify gaps in existing information systems on homeless veterans, 
both within and outside the Department, and 
provide recommendations about redressing problems in data 
collection; 
(D) identify barriers under existing laws and policies to effective 
coordination by the Department with other Federal 
agencies and with State and local agencies addressing homeless 
populations; 
(E) identify opportunities for increased liaison by the Department with 
nongovernmental organizations and individual 
groups providing services to homeless populations; 
(F) with appropriate officials of the Department designated 
by the Secretary, participate with the Interagency Council on 
the Homeless under title II of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11311 et seq.); 
(G) recommend appropriate funding levels for specialized 
programs for homeless veterans provided or funded by the Department; 
(H) recommend appropriate placement options for veterans 
who, because of advanced age, frailty, or severe mental illness, 
may not be appropriate candidates for vocational rehabilitation 
or independent living; and 
(I) perform such other functions as the Secretary may direct. 
(c) REPORTS.-(1) Not later than March 31 of each year, the 
Committee shall submit to the Secretary a report on the programs 
and activities of the Department that relate to homeless veterans. 
Each such report shall include- 
(A) an assessment of the needs of homeless veterans; 
(B) a review of the programs and activities of the Department designed 
to meet such needs; 
(C) a review of the activities of the Committee; and 
(D) such recommendations (including recommendations for 
administrative and legislative action) as the Committee considers 
appropriate. 
(2) Not later than 90 days after the receipt of a report under 
paragraph (1), the Secretary shall transmit to the Committees on 
Veteransï¿½ Affairs of the Senate and House of Representatives a 
copy of the report, together with any comments and recommendations 
concerning the report that the Secretary considers appropriate. 

Sec. 2066 CH. 20-BENEFITS FOR HOMELESS VETERANS 340 

(3) The Committee may also submit to the Secretary such 
other reports and recommendations as the Committee considers 
appropriate. 
(4) The Secretary shall submit with each annual report submitted to the 
Congress pursuant to section 529 of this title a summary of all reports 
and recommendations of the Committee submitted to the Secretary since 
the previous annual report of the Secretary submitted pursuant to that 
section. 
(d) TERMINATION.-The Committee shall cease to exist December 30, 2011. 
(Added Pub. L. 107-95, Sec. 5(a)(1), Dec. 21, 2001, 115 Stat. 916; 
amended Pub. L. 
109-444, Sec. 2(e), Dec. 21, 2006, 120 Stat. 3304; Pub. L. 109-461, 
title VII, Sec. 
709, title X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3441, 3468.) 


CHAPTER 21 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


341 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½


CHAPTER 21-SPECIALLY ADAPTED HOUSING FOR 
DISABLED VETERANS


Sec. 

2101. Acquisition and adaptation of housing: eligible veterans. 

2101A. Eligibility for benefits and assistance: members of the Armed 
Forces with 
service-connected disabilities; individuals residing outside the United 
States. 

2102. Limitations on assistance furnished. 

2102A. Assistance for individuals residing temporarily in housing owned 
by a 
family member. 

2103. Furnishing of plans and specifications. 

2104. Benefits additional to benefits under other laws. 

2105. Nonliability of United States. 

2106. Veteransï¿½ mortgage life insurance. 

2107. Coordination of administration of benefits. 

ï¿½ 2101. Acquisition and adaptation of housing: eligible veterans 

(a) ACQUISITION OF HOUSING WITH SPECIAL FEATURES.-(1) 
Subject to paragraph (3), the Secretary may assist a disabled veteran 
described in paragraph (2) in acquiring a suitable housing 
unit with special fixtures or movable facilities made necessary by 
the nature of the veteranï¿½s disability, and necessary land therefor. 
(2) A veteran is described in this paragraph if the veteran is 
entitled to compensation under chapter 11 of this title for a permanent 
and total service-connected disability that meets any of the 
following criteria: 
(A) The disability is due to the loss, or loss of use, of both 
lower extremities such as to preclude locomotion without the 
aid of braces, crutches, canes, or a wheelchair. 
(B) The disability is due to- 
(i) blindness in both eyes, having only light perception, 
plus (ii) loss or loss of use of one lower extremity. 
(C) The disability is due to the loss or loss of use of one 
lower extremity together with- 
(i) residuals of organic disease or injury; or 
(ii) the loss or loss of use of one upper extremity, 
which so affect the functions of balance or propulsion as to 
preclude locomotion without the aid of braces, crutches, 
canes, or a wheelchair. 
(D) The disability is due to the loss, or loss of use, of both 
upper extremities such as to preclude use of the arms at or 
above the elbows. 
(E) The disability is due to a severe burn injury (as determined 
pursuant to regulations prescribed by the Secretary). 
343 


Sec. 2101 CH. 21-SPECIALLY ADAPTED HOUSING 344 

(3) The regulations prescribed under subsection (d) shall require that 
assistance under paragraph (1) may be provided to a 
veteran only if the Secretary finds that- 
(A) it is medically feasible for the veteran to reside in the 
proposed housing unit and in the proposed locality; 
(B) the proposed housing unit bears a proper relation to 
the veteranï¿½s present and anticipated income and expenses; 
and 
(C) the nature and condition of the proposed housing unit 
are such as to be suitable to the veteranï¿½s needs for dwelling 
purposes. 
(b) ADAPTATIONS TO RESIDENCE OF VETERAN.-(1) Subject to 
paragraph (3), the Secretary shall assist any disabled veteran 
described in paragraph (2) (other than a veteran who is eligible for 
assistance under subsection (a))- 
(A) in acquiring such adaptations to such veteranï¿½s residence as are 
determined by the Secretary to be reasonably necessary because of such 
disability; or 
(B) in acquiring a residence already adapted with special 
features determined by the Secretary to be reasonably necessary for the 
veteran because of such disability. 
(2) A veteran is described in this paragraph if the veteran is 
entitled to compensation under chapter 11 of this title for a permanent
and total service-connected disability that meets any of the 
following criteria: 
(A) The disability is due to blindness in both eyes with 5/ 
200 visual acuity or less. 
(B) The disability includes the anatomical loss or loss of 
use of both hands. 
(C) The disability is due to a severe burn injury (as so determined). 
(3) Assistance under paragraph (1) may be provided only to a 
veteran who the Secretary determines- 
(A) is residing in and reasonably intends to continue residing in a 
residence owned by such veteran or by a member of 
such veteranï¿½s family; or 
(B) if the veteranï¿½s residence is to be constructed or purchased, will 
be residing in and reasonably intends to continue 
residing in a residence owned by such veteran or by a member 
of such veteranï¿½s family. 
(c) REGULATIONS.-Assistance under this section shall be provided in 
accordance with such regulations as the Secretary may 
prescribe. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 801; Pub. L. 
86-239, Sept. 8, 1959, 73 Stat. 472; Pub. L. 88-401, Aug. 4, 1964, 78 
Stat. 380; Pub. L. 91-22, Sec. 1, June 6, 1969, 83 Stat. 32; Pub. L. 
95-117, title IV, Sec. 401, Oct. 3, 1977, 91 Stat. 1065; Pub. L. 96-385,
title III, Sec. 301(a), Oct. 7, 1980, 94 Stat. 1531; Pub. L. 99- 
576, title IV, Sec. 401(a), title VII, Sec. 701(48), 702(7), Oct. 28, 
1986, 100 Stat. 3280, 3295, 3302; renumbered Sec. 2101 and amended 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 108-183, title IV, Sec. 401, Dec. 16, 2003, 117 
Stat. 2664; Pub. L. 108-454, title IV, Sec. 401, Dec. 10, 2004, 
118 Stat. 3614; Pub. L. 109-233, title I, Sec. 105(a), June 15, 2006, 
120 Stat. 402; Pub. L. 110-289, div. B, title VI, Secs. 2602(b)(1), 
(7)(A), 2603, July 30, 2008, 122 Stat. 2859, 2860.) 


345 CH. 21-SPECIALLY ADAPTED HOUSING Sec. 2102 

ï¿½ 2101A. Eligibility for benefits and assistance: members of 
the Armed Forces with service-connected disabilities; individuals 
residing outside the United States 

(a) MEMBERS WITH SERVICE-CONNECTED DISABILITIES.-(1) The 
Secretary may provide assistance under this chapter to a member 
of the Armed Forces serving on active duty who is suffering from 
a disability that meets applicable criteria for benefits under this 
chapter if the disability is incurred or aggravated in line of duty 
in the active military, naval, or air service. Such assistance shall 
be provided to the same extent as assistance is provided under this 
chapter to veterans eligible for assistance under this chapter and 
subject to the same requirements as veterans under this chapter. 
(2) For purposes of this chapter, any reference to a veteran or 
eligible individual shall be treated as a reference to a member of 
the Armed Forces described in subsection (a) who is similarly situated 
to the veteran or other eligible individual so referred to. 
(b) BENEFITS AND ASSISTANCE FOR INDIVIDUALS RESIDING OUTSIDE THE UNITED 
STATES.-(1) Subject to paragraph (2), the Secretary may, at the 
Secretaryï¿½s discretion, provide benefits and assistance under this 
chapter (other than benefits under section 2106 
of this title) to any individual otherwise eligible for such benefits 
and assistance who resides outside the United States. 
(2) The Secretary may provide benefits and assistance to an individual 
under paragraph (1) only if- 
(A) the country or political subdivision in which the housing or 
residence involved is or will be located permits the individual to have 
or acquire a beneficial property interest (as determined by the 
Secretary) in such housing or residence; and 
(B) the individual has or will acquire a beneficial property 
interest (as so determined) in such housing or residence. 
(c) REGULATIONS.-Benefits and assistance under this chapter 
by reason of this section shall be provided in accordance with such 
regulations as the Secretary may prescribe. 
(Added Pub. L. 110-289, div. B, title VI, Sec. 2602(a), July 30, 2008, 
122 Stat. 2858.) 

ï¿½ 2102. Limitations on assistance furnished 

(a) The assistance authorized by section 2101(a) of this title 
shall be afforded under one of the following plans, at the option of 
the individual- 
(1) where the individual elects to construct a housing unit 
on land to be acquired by such individual, the Secretary shall 
pay not to exceed 50 percent of the total cost to the individual 
of (A) the housing unit and (B) the necessary land upon which 
it is to be situated; 
(2) where the individual elects to construct a housing unit 
on land acquired by such individual prior to application for assistance 
under this chapter, the Secretary shall pay not to exceed the smaller 
of the following sums: (A) 50 percent of the 
total cost to the individual of the housing unit and the land 
necessary for such housing unit, or (B) 50 percent of the cost 
to the individual of the housing unit plus the full amount of 
the unpaid balance, if any, of the cost to the individual of the 
land necessary for such housing unit; 

Sec. 2102 CH. 21-SPECIALLY ADAPTED HOUSING 346 

(3) where the individual elects to remodel a dwelling which 
is not adapted to the requirements of such individualï¿½s disability, 
acquired by such individual prior to application for assistance under 
this chapter, the Secretary shall pay not to exceed (A) the cost to 
the individual of such remodeling; or (B) 
50 percent of the cost to the individual of such remodeling; 
plus the smaller of the following sums: (i) 50 percent of the 
cost to the individual of such dwelling and the necessary land 
upon which it is situated, or (ii) the full amount of the unpaid 
balance, if any, of the cost to the individual of such dwelling 
and the necessary land upon which it is situated; and 
(4) where the individual has acquired a suitable housing 
unit, the Secretary shall pay not to exceed the smaller of the 
following sums: (A) 50 percent of the cost to the individual of 
such housing unit and the necessary land upon which it is situated, or 
(B) the full amount of the unpaid balance, if any, of 
the cost to the individual of such housing unit and the necessary land 
upon which it is situated. 
(b) Except as provided in section 2104(b) of this title, the 
assistance authorized by section 2101(b) of this title shall be limited 
to the lesser of- 
(1) the actual cost, or, in the case of an individual acquiring a 
residence already adapted with special features, the fair 
market value, of the adaptations determined by the Secretary 
under such section 2101(b) to be reasonably necessary, or 
(2) $12,000. 
(c) The amount of assistance afforded under subsection (a) for 
an individual authorized assistance by section 2101(a) of this title 
shall not be reduced by reason that title to the housing unit, which 
is vested in the individual, is also vested in any other person, if the 
individual resides in the housing unit. 
(d)(1) The aggregate amount of assistance available to an individual 
under sections 2101(a) and 2102A of this title shall be limited to 
$60,000. 

(2) The aggregate amount of assistance available to an individual under 
sections 2101(b) and 2102A of this title shall be limited to $12,000. 
(3) No veteran may receive more than three grants of assistance under 
this chapter. 
(e)(1) Effective on October 1 of each year (beginning in 2009), 
the Secretary shall increase the amounts described in subsection 
(b)(2) and paragraphs (1) and (2) of subsection (d) in accordance 
with this subsection. 

(2) The increase in amounts under paragraph (1) to take effect 
on October 1 of a year shall be by an amount of such amounts 
equal to the percentage by which- 
(A) the residential home cost-of-construction index for the 
preceding calendar year, exceeds 
(B) the residential home cost-of-construction index for the 
year preceding the year described in subparagraph (A). 
(3) The Secretary shall establish a residential home cost-of-
construction index for the purposes of this subsection. The index shall 
reflect a uniform, national average change in the cost of residential 
home construction, determined on a calendar year basis. The Sec

347 CH. 21-SPECIALLY ADAPTED HOUSING Sec. 2103 

retary may use an index developed in the private sector that the 
Secretary determines is appropriate for purposes of this subsection. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 802; Pub. L. 91-22, 
Sec. 2, June 6, 1969, 83 Stat. 32; Pub. L. 91-506, Sec. 6, Oct. 23, 
1970, 84 Stat. 1113; Pub. L. 92-341, July 10, 1972, 86 Stat. 432; 
Pub. L. 93-569, Sec. 9, Dec. 31, 1974, 88 Stat. 1867; Pub. L. 95-476, 
title I, Sec. 101, Oct. 18, 1978, 92 Stat. 1497; Pub. L. 96-385, title 
III, Sec. 301(b), Oct. 7, 1980, 94 Stat. 1531; Pub. L. 97-66, title V, 
Sec. 502, Oct. 17, 1981, 95 Stat. 1032; Pub. L. 97-295, Sec. 4(33), 
Oct. 12, 1982, 96 Stat. 1307; Pub. L. 98-543, title III, Sec. 304(a), 
Oct. 24, 1984, 98 Stat. 2748; Pub. L. 99- 576, title IV, Sec. 401(b), 
Oct. 28, 1986, 100 Stat. 3280; Pub. L. 100-322, title III, Sec. 301, 
May 20, 1988, 102 Stat. 534; renumbered Sec. 2102 and amended Pub. 

L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 105-178, title VIII, Sec. 8204(a), June 9, 1998, 112 
Stat. 494; Pub. L. 106-419, title III, Sec. 321, Nov. 1, 2000, 114 
Stat. 1855; Pub. L. 107-103, title IV, Sec. 404, Dec. 27, 2001, 115 
Stat. 993; Pub. L. 108-183, title IV, Sec. 402(a), Dec. 16, 2003, 117 
Stat. 2664; Pub. L. 109-233, title I, Sec. 101(b), June 15, 2006, 120 
Stat. 398; Pub. L. 110-289, div. B, title VI, Secs. 2602(b)(2), 
2605(a), July 30, 2008, 122 Stat. 2859, 
2861.) 
ï¿½ 2102A. Assistance for individuals residing temporarily in 
housing owned by a family member 

(a) PROVISION OF ASSISTANCE.-In the case of a disabled individual who 
is described in subsection (a)(2) or (b)(2) of section 2101 
of this title and who is residing, but does not intend to permanently 
reside, in a residence owned by a member of such individualï¿½s family, 
the Secretary may assist the individual in acquiring such adaptations 
to such residence as are determined by the Secretary to be reasonably 
necessary because of the individualï¿½s disability. 
(b) AMOUNT OF ASSISTANCE.-The assistance authorized under 
subsection (a) may not exceed- 
(1) $14,000, in the case of an individual described in section 
2101(a)(2) of this title; or 
(2) $2,000, in the case of an individual described in section 
2101(b)(2) of this title. 
(c) LIMITATION.-The assistance authorized by subsection (a) 
shall be limited in the case of any individual to one residence. 
(d) REGULATIONS.-Assistance under this section shall be provided in 
accordance with such regulations as the Secretary may 
prescribe. 
(e) TERMINATION.-No assistance may be provided under this 
section after December 31, 2011. 
(Added Pub. L. 109-233, title I, Sec. 101(a), June 15, 2006, 120 Stat. 
398; amended 
Pub. L. 110-289, div. B, title VI, Secs. 2602(b)(3), (7)(B), 2604, 
July 30, 2008, 122 
Stat. 2859-2861.) 

ï¿½ 2103. Furnishing of plans and specifications 

(a) PLANS AND SPECIFICATIONS.-The Secretary is authorized to 
furnish to individuals eligible for assistance under this chapter, 
without cost to the individuals, model plans and specifications of 
suitable housing units. 
(b) HANDBOOK FOR DESIGN.-The Secretary shall make available to veterans 
eligible for assistance under this chapter, without 
cost to the veterans, a handbook containing appropriate designs for 
specially adapted housing. The Secretary shall update such handbook at 
least once every six years to take into account any new or 

Sec. 2104 CH. 21-SPECIALLY ADAPTED HOUSING 348 

unique disabilities, including vision impairments, impairments specific 
to the upper limbs, and burn injuries. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 803; renumbered 
Sec. 2103 and 
amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406; 
Pub. L. 110-289, div. B, title VI, Sec. 2602(b)(4), July 30, 2008, 122 
Stat. 2859; Pub. 

L. 110-389, title V, Sec. 503, Oct. 10, 2008, 122 Stat. 4176.) 
ï¿½ 2104. Benefits additional to benefits under other laws 

(a) Any individual who accepts the benefits of this chapter 
shall not by reason thereof be denied the benefits of chapter 37 of 
this title; however, except as provided in subsection (b) of this 
section, the assistance authorized by section 2101 of this title shall 
not be available to any individual more than once. 
(b) An individual eligible for assistance under section 2101(b) 
of this title shall not by reason of such eligibility be denied benefits 
for which such individual becomes eligible under section 2101(a) of 
this title or benefits relating to home health services under section 
1717(a)(2) of this title. However, no particular type of adaptation, 
improvement, or structural alteration provided to an individual 
under section 1717(a)(2) of this title may be provided to such 
individual under section 2101(b) of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 804; Pub. L. 
96-385, title III, 
Sec. 301(c), Oct. 7, 1980, 94 Stat. 1531; renumbered Sec. 2104 and 
amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
104-262, title I, Sec. 
101(e)(2), Oct. 9, 1996, 110 Stat. 3180; Pub. L. 110-289, div. B, 
title VI, Sec. 
2602(b)(5), July 30, 2008, 122 Stat. 2859.) 
ï¿½ 2105. Nonliability of United States 

The Government of the United States shall have no liability in 
connection with any housing unit, or necessary land therefor, or 
adaptation acquired under the provisions of this chapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 805; Pub. L. 
96-385, title III, 
Sec. 301(d), Oct. 7, 1980, 94 Stat. 1531; renumbered Sec. 2105, Pub. 
L. 102-83, Sec. 
5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 2106. Veteransï¿½ mortgage life insurance 

(a) The United States shall automatically insure any eligible 
individual age 69 or younger who is or has been granted assistance 
in securing a suitable housing unit under this chapter against the 
death of the individual unless the individual (1) submits to the 
Secretary in writing the individualï¿½s election not to be insured under 
this section, or (2) fails to respond in a timely manner to a request 
from the Secretary for information on which the premium for such 
insurance can be based. 
(b) The amount of insurance provided an individual under this 
section may not exceed the lesser of $90,000 or the amount of the 
loan outstanding on the housing unit. The amount of such insurance shall 
be reduced according to the amortization schedule of the 
loan and may not at any time exceed the amount of the outstanding loan 
with interest. If there is no outstanding loan on the 
housing unit, insurance is not payable under this section. If an 
eligible individual elects not to be insured under this section, the 
individual may thereafter be insured under this section, but only 
upon submission of an application, payment of required premiums, 

349 CH. 21-SPECIALLY ADAPTED HOUSING Sec. 2106 

and compliance with such health requirements and other terms 
and conditions as may be prescribed by the Secretary. 

(c) The premiums charged an individual for insurance under 
this section shall be paid at such time and in such manner as the 
Secretary prescribes. The rates for such premiums shall be based 
on such mortality data as the Secretary considers appropriate to 
cover only the mortality cost of insuring standard lives. In the case 
of an individual receiving compensation or other cash benefits paid 
to the individual by the Secretary, the Secretary shall deduct from 
such compensation or other benefits the premiums charged the 
individual under this section. 
(d)(1) The United States shall bear the costs of insurance 
under this section to the extent that such costs exceed premiums 
established by the Secretary. Premiums collected on insurance 
under this section shall be credited to the ï¿½ï¿½Veterans Insurance and 
Indemnitiesï¿½ï¿½ appropriation account, and all disbursements of 
insurance proceeds under this section shall be made from that account. 

(2) There are authorized to be appropriated to the Secretary for 
such account such amounts as may be necessary to carry out this 
section. 
(e) Any amount of insurance in force under this section on the 
date of the death of an individual insured under this section shall 
be paid to the holder of the mortgage loan, for payment of which 
the insurance was granted, for credit on the loan indebtedness. Any 
liability of the United States under such insurance shall be satisfied 
when such payment is made. If the Secretary is the holder of 
the mortgage loan, the insurance proceeds shall be credited to the 
loan indebtedness and, deposited in the Veterans Housing Benefit 
Program Fund established by section 3722 of this title. 
(f) The Secretary may prescribe such regulations relating to 
eligibility for insurance under this section, the maximum amount of 
insurance, the effective date of insurance, the maximum duration 
of insurance, and other pertinent matters not specifically provided 
for in this section as the Secretary determines are in the best 
interest of veterans or the United States. 
(g) The amount of the insurance in force at any time shall be 
the amount necessary to pay the mortgage indebtedness in full, except 
as otherwise limited by subsection (b) of this section or regulations 
prescribed by the Secretary under this section. 
(h) The Secretary shall issue to each individual insured under 
this section a certificate setting forth the benefits to which the 
individual is entitled under the insurance. 
(i) Insurance under this section shall terminate upon whichever of 
the following events first occurs: 
(1) Satisfaction of the individualï¿½s indebtedness under the 
loan upon which the insurance is based. 
(2) Termination of the individualï¿½s ownership of the property securing 
the loan. 
(3) Discontinuance of payment of premiums by the individual. 
(j) Termination of life insurance under this section shall not af
fect the guaranty or insurance of the loan by the Secretary. 
(Added Pub. L. 92-95, Sec. 1, Aug. 11, 1971, 85 Stat. 320, Sec. 806; 
amended Pub. 

L. 94-433, title III, Sec. 302, Sept. 30, 1976, 90 Stat. 1377; Pub. 
L. 99-576, title 

Sec. 2107 CH. 21-SPECIALLY ADAPTED HOUSING 350 

VII, Sec. 701(49), Oct. 28, 1986, 100 Stat. 3295; Pub. L. 100-322, 
title III, Sec. 
333(a)(1), May 20, 1988, 102 Stat. 537; renumbered Sec. 2106 and 
amended Pub. 

L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 
102-568, title II, Sec. 204(a), Oct. 29, 1992, 106 Stat. 4325; Pub. 
L. 103-446, title XII, Sec. 1201(h)(2), Nov. 2, 1994, 108 Stat. 4688; 
Pub. L. 105-368, title VI, Sec. 602(e)(2), Nov. 10, 1998, 112 Stat. 
3347; Pub. L. 107-330, title III, Sec. 302, Dec. 6, 2002, 116 Stat. 
2824; Pub. L. 110-289, div. B, title VI, Sec. 2602(b)(6), July 30, 
2008, 122 Stat. 2860.) 
ï¿½ 2107. Coordination of administration of benefits 

The Secretary shall provide for the coordination of the administration 
of programs to provide specially adapted housing that are 
administered by the Under Secretary for Health and such programs that 
are administered by the Under Secretary for Benefits 
under this chapter, chapter 17, and chapter 31 of this title. 

(Added Pub. L. 109-233, title I, Sec. 101(c), June 15, 2006, 120 
Stat. 399.) 


CHAPTER 23 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


351 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½ 

CHAPTER 23-BURIAL BENEFITS 

Sec. 
2301. Flags. 
2302. Funeral expenses. 
2303. Death in Department facility; plot allowance. 
2304. Claims for reimbursement. 
2305. Persons eligible under prior law. 
2306. Headstones, markers, and burial receptacles. 
2307. Death from service-connected disability. 
2308. Transportation of deceased veteran to a national cemetery.


ï¿½ 2301. Flags 

(a) The Secretary shall furnish a flag to drape the casket of 
each- 
(1) deceased veteran who- 
(A) was a veteran of any war, or of service after January 31, 1955; 
(B) had served at least one enlistment; or 
(C) had been discharged or released from the active 
military, naval, or air service for a disability incurred or 
aggravated in line of duty; and 
(2) deceased individual who at the time of death was entitled to 
retired pay under chapter 67 of title 10 or would have 
been entitled to retired pay under that chapter but for the fact 
that the person was under 60 years of age. 
(b) After the burial of the veteran the flag so furnished shall 
be given to the veteranï¿½s next of kin. If no claim is made for the 
flag by the next of kin, it may be given, upon request, to a close 
friend or associate of the deceased veteran. If a flag is given to a 
close friend or associate of the deceased veteran, no flag shall be 
given to any other person on account of the death of such veteran. 
(c) For the purpose of this section, the term ï¿½ï¿½Mexican border 
periodï¿½ï¿½ as defined in paragraph (30) of section 101 of this title 
includes the period beginning on January 1, 1911, and ending on 
May 8, 1916. 
(d) In the case of any person who died while in the active military, 
naval, or air service after May 27, 1941, the Secretary shall 
furnish a flag to the next of kin, or to such other person as the 
Secretary considers most appropriate, if such next of kin or other 
person is not otherwise entitled to receive a flag under this section or 
under section 1482(a) of title 10. 
(e) The Secretary shall furnish a flag to drape the casket of 
each deceased person who is buried in a national cemetery by virtue of 
eligibility for burial in such cemetery under section 2402(6) 
353 


Sec. 2301 CH. 23-BURIAL BENEFITS 354 

of this title. After the burial, the flag shall be given to the next of 
kin or to such other person as the Secretary considers appropriate. 

(f)(1) The Secretary shall furnish a flag to drape the casket of 
each deceased member or former member of the Selected Reserve 
(as described in section 10143 of title 10) who is not otherwise 
eligible for a flag under this section or section 1482(a) of title 10- 

(A) who completed at least one enlistment as a member of 
the Selected Reserve or, in the case of an officer, completed the 
period of initial obligated service as a member of the Selected 
Reserve; 
(B) who was discharged before completion of the personï¿½s 
initial enlistment as a member of the Selected Reserve or, in 
the case of an officer, period of initial obligated service as a 
member of the Selected Reserve, for a disability incurred or aggravated 
in line of duty; or 
(C) who died while a member of the Selected Reserve. 
(2) A flag may not be furnished under subparagraph (A) or (B) 
of paragraph (1) in the case of a person whose last discharge from 
service in the Armed Forces was under conditions less favorable 
than honorable. 
(3) After the burial, a flag furnished under paragraph (1) shall 
be given to the next of kin or to such other person as the Secretary 
considers appropriate. 
(g) A flag may not be furnished under this section in the case 
of a person described in section 2411(b) of this title. 
(h)(1) The Secretary may not procure any flag for the purposes 
of this section that is not wholly produced in the United States. 
(2)(A) The Secretary may waive the requirement of paragraph 

(1) if the Secretary determines- 
(i) that the requirement cannot be reasonably met; or 
(ii) that compliance with the requirement would not be in 
the national interest of the United States. 
(B) The Secretary shall submit to Congress in writing notice of 
a determination under subparagraph (A) not later than 30 days 
after the date on which such determination is made. 
(3) For the purpose of paragraph (1), a flag shall be considered 
to be wholly produced in the United States only if- 
(A) the materials and components of the flag are entirely 
grown, manufactured, or created in the United States; 
(B) the processing (including spinning, weaving, dyeing, 
and finishing) of such materials and components is entirely 
performed in the United States; and 
(C) the manufacture and assembling of such materials and 
components into the flag is entirely performed in the United 
States. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 901; Pub. L. 
87-240, Sept. 14, 1961, 75 Stat. 512; Pub. L. 89-358, Sec. 9, Mar. 
3, 1966, 80 Stat. 28; Pub. L. 90- 77, title IV, Sec. 402, Aug. 31, 
1967, 81 Stat. 190; Pub. L. 91-588, Sec. 9(g), Dec. 24, 1970, 84 
Stat. 1585; Pub. L. 97-306, title IV, Sec. 402(a), Oct. 14, 1982, 
96 Stat. 1442; Pub. L. 99-576, title VII, Sec. 701(50), Oct. 28, 
1986, 100 Stat. 3295; Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; Pub. L. 102-54, Sec. 14(b)(20), 
June 13, 1991, 105 Stat. 284; renumbered Sec. 2301 and amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
102-547, Sec. 11(a), Oct. 28, 1992, 106 Stat. 3644; Pub. L. 105-261, 
div. A, title V, Sec. 517, title X, Sec. 1073(a), Oct. 17, 1998, 112 
Stat. 2009, 2137; Pub. L. 107-14, Sec. 8(a)(3), June 5, 

355 CH. 23-BURIAL BENEFITS Sec. 2303 

2001, 115 Stat. 34; Pub. L. 107-330, title II, Sec. 201(b), Dec. 6, 
2002, 116 Stat. 
2823.) 

ï¿½ 2302. Funeral expenses 

(a) In the case of a deceased veteran- 
(1) who at the time of death was in receipt of compensation (or but 
for the receipt of retirement pay would have been 
entitled to compensation) or was in receipt of pension, or 
(2) who was a veteran of any war or was discharged or released from 
the active military, naval, or air service for a disability incurred 
or aggravated in line of duty, whose body is 
held by a State (or a political subdivision of a State), and with 
respect to whom the Secretary determines- 
(A) that there is no next of kin or other person claiming the body of 
the deceased veteran, and 
(B) that there are not available sufficient resources to 
cover burial and funeral expenses, 
the Secretary, in the Secretaryï¿½s discretion, having due regard to 
the circumstances in each case, may pay a sum not exceeding $300 
to such person as the Secretary prescribes to cover the burial and 
funeral expenses of the deceased veteran and the expense of preparing 
the body and transporting it to the place of burial. For the 
purpose of this subsection, the term ï¿½ï¿½veteranï¿½ï¿½ includes a person 
who died during a period deemed to be active military, naval, or 
air service under section 106(c) of this title. 

(b) Except as hereafter provided in this subsection, no deduction shall 
be made from the burial allowance because of the veteranï¿½s net assets 
at the time of the death of such veteran, or because of any 
contribution from any source toward the burial and 
funeral expenses (including transportation) unless the amount of 
expenses incurred is covered by the amount actually paid therefor 
by the United States, a State, any agency or political subdivision 
of the United States or of a State, or the employer of the deceased 
veteran. No claim shall be allowed (1) for more than the difference 
between the entire amount of the expenses incurred and the 
amount paid by any or all of the foregoing, or (2) when the burial 
allowance would revert to the funds of a public or private organization 
or would discharge such an organizationï¿½s obligation without 
payment. The burial allowance or any part thereof shall not be 
paid in any case where specific provision is otherwise made for payment 
of expenses of funeral, transportation, and interment under 
any other Act. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 902; Pub. L. 88-359, 
July 7, 1964, 78 Stat. 296; Pub. L. 89-360, Mar. 7, 1966, 80 Stat. 29; 
Pub. L. 95-476, title II, Sec. 203(b), Oct. 18, 1978, 92 Stat. 1506; 
Pub. L. 95-479, title III, Sec. 303(a), Oct. 18, 1978, 92 Stat. 1565; 
Pub. L. 97-35, title XX, Sec. 2001(a)(1), Aug. 13, 1981, 95 Stat. 781; 
Pub. L. 97-306, title IV, Sec. 403((a)), Oct. 14, 1982, 96 Stat. 1443; 
Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 
2077; renumbered Sec. 2302, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) ï¿½ 2303. Death in Department facility; plot allowance 

(a)(1) When a veteran dies in a facility described in paragraph 
(2), the Secretary shall- 

(A) pay the actual cost (not to exceed $300) of the burial 
and funeral or, within such limits, may make contracts for 

Sec. 2303 CH. 23-BURIAL BENEFITS 356 

such services without regard to the laws requiring advertisement for 
proposals for supplies and services for the Department; and 

(B) when such a death occurs in a State, transport the 
body to the place of burial in the same or any other State. 
(2) A facility described in this paragraph is- 
(A) a facility of the Department (as defined in section 
1701(3) of this title) to which the deceased was properly admitted 
for hospital, nursing home, or domiciliary care under section 1710 
or 1711(a) of this title; or 
(B) an institution at which the deceased veteran was, at 
the time of death, receiving- 
(i) hospital care in accordance with section 1703 of this 
title; 
(ii) nursing home care under section 1720 of this title; 
or 
(iii) nursing home care for which payments are made 
under section 1741 of this title. 
(b) In addition to the benefits provided for under section 2302 
of this title and subsection (a) of this section, in the case of a 
veteran who is eligible for burial in a national cemetery under section 
2402 of this title and who is not buried in a national cemetery or 
other cemetery under the jurisdiction of the United States- 
(1) if such veteran is buried (without charge for the cost 
of a plot or interment) in a cemetery, or a section of a cemetery, that 
(A) is used solely for the interment of persons who 
are (i) eligible for burial in a national cemetery, and (ii) members of 
a reserve component of the Armed Forces not otherwise 
eligible for such burial or former members of such a reserve 
component not otherwise eligible for such burial who are discharged or 
released from service under conditions other than 
dishonorable, and(B) is owned by a State or by an agency or 
political subdivision of a State, the Secretary shall pay to such 
State, agency, or political subdivision the sum of $300 as a plot 
or interment allowance for such veteran; and 
(2) if such veteran is eligible for a burial allowance under 
section 2302 of this title or under subsection (a) of this section, 
or was discharged from the active military, naval, or air service for a 
disability incurred or aggravated in line of duty, and 
such veteran is buried in a cemetery, or a section of a cemetery, other 
than as described in clause (1) of this subsection, 
the Secretary shall pay a sum not exceeding $300 as a plot or 
interment allowance to such person as the Secretary prescribes, except 
that if any part of the plot or interment costs 
of a burial to which this clause applies has been paid or assumed by a 
State, an agency or political subdivision of a State, 
or a former employer of the deceased veteran, no claim for such 
allowance shall be allowed for more than the difference between the 
entire amount of the expenses incurred and the 
amount paid or assumed by any or all of the foregoing entities. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1170, Sec. 903; Pub. L. 86-70, 
Sec. 29(a), June 25, 1959, 73 Stat. 148; Pub. L. 86-624, Sec. 25(b), 
July 12, 1960, 74 Stat. 418; Pub. L. 87-99, July 21, 1961, 75 Stat. 
218; Pub. L. 89-358, Sec. 4(i), Mar. 3, 1966, 80 Stat. 24; Pub. L. 
93-43, Sec. 5(a)(1), June 18, 1973, 87 Stat. 80; Pub. L. 94-581, 


357 CH. 23-BURIAL BENEFITS Sec. 2306 

title II, Sec. 204, Oct. 21, 1976, 90 Stat. 2856; Pub. L. 95-476, title 
II, Sec. 202(a), Oct. 18, 1978, 92 Stat. 1503; Pub. L. 95-479, title 
III, Sec. 303(a), Oct. 18, 1978, 92 Stat. 1565; Pub. L. 97-35, title 
XX, Sec. 2001(b), Aug. 13, 1981, 95 Stat. 781; Pub. L. 97-306, title 
IV, Sec. 404(a), Oct. 14, 1982, 96 Stat. 1443; Pub. L. 99-272, title
XIX, Sec. 19012(c)(4), Apr. 7, 1986, 100 Stat. 382; Pub. L. 101-237, 
title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; Pub. L. 
101-508, title VIII, Sec. 8042(a), Nov. 5, 1990, 104 Stat. 1388-349; 
renumbered Sec. 2303 and amended Pub. 

L. 102-83, Sec. 4(a)(3), (4), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 104- 275, title II, Sec. 212, Oct. 9, 1996, 110 Stat. 
3330; Pub. L. 105-114, title IV, Sec. 401(a), Nov. 21, 1997, 111 Stat. 
2293; Pub. L. 106-419, title III, Sec. 333(a), Nov. 1, 2000, 114 Stat. 
1856; Pub. L. 107-103, title V, Sec. 501(b)(1), Dec. 27, 2001, 115 
Stat. 994; Pub. L. 108-183, title V, Sec. 501(a), Dec. 16, 2003, 117 
Stat. 2666.) 
ï¿½ 2304. Claims for reimbursement 

Applications for payments under section 2302 of this title must 
be filed within two years after the burial of the veteran. If the 
burial allowance was not payable at the death of the veteran because 
of the nature of the veteranï¿½s discharge from the service, but after 
the veteranï¿½s death the veteranï¿½s discharge has been corrected by 
competent authority so as to reflect a discharge from the service 
under conditions other than dishonorable, then the burial allowance 
may be paid if a claim is filed within two years from the date 
of correction of the discharge. If a claimantï¿½s application is 
incomplete at the time it is originally submitted, the Secretary shall 
notify the applicant of the evidence necessary to complete the 
application. If such evidence is not received within one year from the 
date of such notification, no allowance may be paid. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1170, Sec. 904; Pub. L. 88-3,
Apr. 2, 1963, 77 Stat. 4; Pub. L. 91-24, Sec. 7, June 11, 1969, 83 
Stat. 34; Pub. L. 99-576, title VII, Sec. 701(51), Oct. 28, 1986, 100 
Stat. 3295; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 
103 Stat. 2077; renumbered Sec. 2304 and amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 2305. Persons eligible under prior law 

The death of any person who had a status which would, under 
the laws in effect on December 31, 1957, afford entitlement to the 
burial benefits and other benefits provided for in this chapter, but 
who did not meet the service requirements contained in this chapter, 
shall afford entitlement to such benefits, notwithstanding the 
failure of such person to meet such service requirements. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1170, Sec. 905; renumbered 
Sec. 2305, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 2306. Headstones, markers, and burial receptacles 

(a) The Secretary shall furnish, when requested, appropriate 
Government headstones or markers at the expense of the United 
States for the unmarked graves of the following: 
(1) Any individual buried in a national cemetery or in a post 
cemetery. 
(2) Any individual eligible for burial in a national cemetery 
(but not buried there), except for those persons or classes of persons 
enumerated in section 2402(4), (5), and (6) of this title. 
(3) Soldiers of the Union and Confederate Armies of the Civil 
War. 
(4) Any individual described in section 2402(5) of this title who 
is buried in a veteransï¿½ cemetery owned by a State. 

Sec. 2306 CH. 23-BURIAL BENEFITS 358 

(5) Any individual who at the time of death was entitled to retired pay 
under chapter 1223 of title 10 or would have been entitled to retired 
pay under that chapter but for the fact that the person was under 
60 years of age. 
(b)(1) The Secretary shall furnish, when requested, an appropriate 
memorial headstone or marker for the purpose of commemorating an 
eligible individual whose remains are unavailable. Such 
a headstone or marker shall be furnished for placement in a national 
cemetery area reserved for that purpose under section 2403 
of this title, a veteransï¿½ cemetery owned by a State, or, in the case 
of a veteran, in a State, local, or private cemetery. 

(2) For purposes of paragraph (1), an eligible individual is any 
of the following: 
(A) A veteran. 
(B) The spouse or surviving spouse of a veteran. 
(C) An eligible dependent child of a veteran. 
(3) For purposes of paragraph (1), the remains of an individual 
shall be considered to be unavailable if the individualï¿½s remains- 
(A) have not been recovered or identified; 
(B) were buried at sea, whether by the individualï¿½s own 
choice or otherwise; 
(C) were donated to science; or 
(D) were cremated and the ashes scattered without interment of any 
portion of the ashes. 
(4) For purposes of this subsection: 
(A) The term ï¿½ï¿½veteranï¿½ï¿½ includes an individual who dies in 
the active military, naval, or air service. 
(B) The term ï¿½ï¿½surviving spouseï¿½ï¿½ includes a surviving 
spouse who had a subsequent remarriage. 
(5) For purposes of this section, the term ï¿½ï¿½eligible dependent 
childï¿½ï¿½ means a child- 
(A) who is under 21 years of age, or under 23 years of age 
if pursuing a course of instruction at an approved educational 
institution; or 
(B) who is unmarried and became permanently physically 
or mentally disabled and incapable of self-support before reaching 21 
years of age, or before reaching 23 years of age if pursuing a course 
of instruction at an approved educational institution. 
(c) A headstone or marker furnished under subsection (a), (b), 
or (d) of this section may be of any material, including but not 
limited to marble, granite, bronze, or slate, requested by the person 
entitled to request such headstone or marker if the material requested 
is determined by the Secretary (1) to be cost effective, and 
(2) in a case in which the headstone or marker is to be placed in 
a national cemetery, to be aesthetically compatible with the area 
of the cemetery in which it is to be placed. 
(d)(1) The Secretary shall furnish, when requested, an appropriate 
Government headstone or marker at the expense of the 
United States for the grave of an individual described in paragraph 

(2) or (5) of subsection (a) who is buried in a private cemetery, 
notwithstanding that the grave is marked by a headstone or marker 
furnished at private expense. Such a headstone or marker may be 
furnished only if the individual making the request for the Govern

359 CH. 23-BURIAL BENEFITS Sec. 2306 

ment headstone or marker certifies to the Secretary that the headstone 
or marker will be placed on the grave for which the headstone or marker 
is requested, or, if placement on the grave is impossible or 
impracticable, as close as possible to the grave within 
the grounds of the cemetery in which the grave is located. 

(2) Any headstone or marker furnished under this subsection 
shall be delivered by the Secretary directly to the cemetery where 
the grave is located or to a receiving agent for delivery to the 
cemetery. 
(3) The headstone or marker furnished under this subsection 
shall be the headstone or marker selected by the individual making 
the request from among all the headstones and markers made 
available by the Government for selection. 
(4) In lieu of furnishing a headstone or marker under this subsection, 
the Secretary may furnish, upon request, a medallion or 
other device of a design determined by the Secretary to signify the 
deceasedï¿½s status as a veteran, to be attached to a headstone or 
marker furnished at private expense. 
(e)(1) The Secretary of Veterans Affairs shall provide an outer 
burial receptacle for each new grave in an open cemetery under the 
control of the National Cemetery Administration in which remains 
are interred in a casket. The Secretary of the Army may provide 
an outer burial receptacle for such a grave in the Arlington National 
Cemetery. 

(2) The use of outer burial receptacles in a cemetery under the 
control of the National Cemetery Administration or in the Arlington 
National Cemetery shall be in accordance with regulations or 
procedures approved by the Secretary of Veterans Affairs or Secretary 
of the Army, respectively. 
(3) Regulations or procedures under paragraph (2) may specify 
that- 
(A) an outer burial receptacle other than a grave liner be 
provided in lieu of a grave liner at the election of the survivors 
of the interred veteran; and 
(B) if an outer burial receptacle other than a grave liner 
is provided in lieu of a grave liner upon an election of such 
survivors, such survivors be required- 
(i) to pay the amount by which the cost of the outer 
burial receptacle exceeds the cost of the grave liner that 
would otherwise have been provided in the absence of the 
election; and 
(ii) to pay the amount of the administrative costs incurred by the 
Secretary (or, with respect to Arlington National Cemetery, the 
Secretary of the Army) in providing 
the outer burial receptacle in lieu of such grave liner. 
(4) Regulations or procedures under paragraph (2) may provide 
for the use of a voucher system, or other system of reimbursement 
approved by the Secretary (or, with respect to Arlington National 
Cemetery, the Secretary of the Army), for payment for outer burial 
receptacles other than grave liners provided under such regulations 
or procedures. 
(f)(1) When the Secretary has furnished a headstone or marker 
under subsection (a) for the unmarked grave of an individual, the 
Secretary shall, if feasible, add a memorial inscription to that head


Sec. 2307 CH. 23-BURIAL BENEFITS 360 

stone or marker rather than furnishing a separate headstone or 
marker under that subsection for the surviving spouse or eligible 
dependent child of such individual. 

(2) When the Secretary has furnished a memorial headstone or 
marker under subsection (b) for purposes of commemorating a veteran or 
an individual who died in the active military, naval, or air 
service, the Secretary shall, if feasible, add a memorial inscription 
to that headstone or marker rather than furnishing a separate memorial 
headstone or marker under that subsection for the surviving 
spouse or eligible dependent child of such individual. 
(g)(1) A headstone or marker may not be furnished under subsection (a) 
for the unmarked grave of a person described in section 
2411(b) of this title. 

(2) A memorial headstone or marker may not be furnished 
under subsection (b) for the purpose of commemorating a person 
described in section 2411(b) of this title. 
(3) A headstone or marker may not be furnished under subsection (d) for 
the grave of a person described in section 2411(b) of 
this title. 
(Added Pub. L. 93-43, Sec. 5(a)(2), June 18, 1973, 87 Stat. 80, Sec. 
906; amended Pub. L. 95-476, title II, Sec. 203(a), Oct. 18, 1978, 92 
Stat. 1505; Pub. L. 95-479, title III, Sec. 303(b), Oct. 18, 1978, 92 
Stat. 1565; Pub. L. 96-385, title V, Sec. 502, Oct. 7, 1980, 94 Stat. 
1534; Pub. L. 97-66, title VI, Sec. 603(a), Oct. 17, 1981, 95 Stat. 
1034; Pub. L. 100-322, title III, Sec. 344(a), (b)(1), May 20, 1988, 
102 Stat. 540; Pub. L. 101-237, title III, Sec. 313(b)(1), (3), title 
V, Sec. 501, 504(a), Dec. 18, 1989, 103 Stat. 2077, 2093, 2094; Pub. 
L. 101-508, title VIII, Sec. 8041(a), Nov. 5, 1990, 104 Stat. 1388-
349; renumbered Sec. 2306 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-547, Sec. 11(b), 
Oct. 28, 1992, 106 Stat. 3644; Pub. L. 104-275, title II, Sec. 
213(a), (b)(1), Oct. 9, 1996, 110 Stat. 3331, 3332; Pub. L. 105-368, 
title IV, Secs. 401(a), (b), 403(c)(2), Nov. 10, 1998, 112 Stat. 
3334, 3335, 3338; Pub. L. 107-103, title V, Sec. 502(a)-(c), Dec. 27, 
2001, 115 Stat. 994, 995; Pub. L. 107-330, title II, Sec. 201(c), 
Dec. 6, 2002, 116 Stat. 2823; Pub. L. 109-444, Sec. 2(f), Dec. 21, 
2006, 120 Stat. 3305; Pub. L. 109-461, title IV, Secs. 401(a), (b), 
402, title X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3429, 3468; Pub. 

L. 110-157, title II, Secs. 201, 203(a), Dec. 26, 2007, 121 Stat. 
1832, 1833; Pub. L. 
110-389, title VIII, Sec. 810(a), Oct. 10, 2008, 122 Stat. 4190.) 
ï¿½ 2307. Death from service-connected disability 

In any case in which a veteran dies as the result of a service-
connected disability or disabilities, the Secretary, upon the request 
of the survivors of such veteran, shall pay the burial and funeral 
expenses incurred in connection with the death of the veteran in 
an amount not exceeding the greater of (1) $2,000, or (2) the 
amount authorized to be paid under section 8134(a) of title 5 in the 
case of a Federal employee whose death occurs as the result of an 
injury sustained in the performance of duty. Funeral and burial 
benefits provided under this section shall be in lieu of any benefits 
authorized under sections 2302 and 2303(a)(1) and (b)(2) of this 
title. 

(Added Pub. L. 93-43, Sec. 5(a)(2), June 18, 1973, 87 Stat. 80, Sec. 
907; amended Pub. L. 95-479, title III, Sec. 303(c), Oct. 18, 1978, 
92 Stat. 1565; Pub. L. 100-322, title III, Sec. 303, May 20, 1988, 
102 Stat. 534; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 
1989, 103 Stat. 2077; renumbered Sec. 2307 and amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
107-103, title V, Sec. 501(a)(1), Dec. 27, 2001, 115 Stat. 994; Pub. 
L. 108-183, title V, Sec. 501(b), 
Dec. 16, 2003, 117 Stat. 2667.) 

361 CH. 23-BURIAL BENEFITS Sec. 2308 

ï¿½ 2308. Transportation of deceased veteran to a national 
cemetery 

Where a veteran dies as the result of a service-connected disability, 
or is in receipt of (but for the receipt of retirement pay or 
pension under this title would have been entitled to) disability 
compensation, the Secretary may pay, in addition to any amount paid 
pursuant to section 2302 or 2307 of this title, the cost of 
transportation of the deceased veteran for burial in a national 
cemetery. 
Such payment shall not exceed the cost of transportation to the 
national cemetery nearest the veteranï¿½s last place of residence in 
which burial space is available. 

(Added Pub. L. 94-433, title III, Sec. 304(a), Sept. 30, 1976, 90 
Stat. 1377, Sec. 908; amended Pub. L. 101-237, title III, Sec. 
313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 2308 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406.) 


CHAPTER 24 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


363 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART II-GENERAL BENEFITSï¿½ 

CHAPTER 24-NATIONAL CEMETERIES AND MEMORIALS 

Sec. 

2400. Establishment of National Cemetery Administration; composition 
of Administration. 

2401. Advisory Committee on Cemeteries and Memorials. 

2402. Persons eligible for interment in national cemeteries. 

2403. Memorial areas. 

2404. Administration. 

2405. Disposition of inactive cemeteries. 

2406. Acquisition of lands. 

2407. Authority to accept and maintain suitable memorials. 

2408. Aid to States for establishment, expansion, and improvement of 
veteransï¿½ 
cemeteries. 

2409. Memorial areas in Arlington National Cemetery. 

2410. Burial of cremated remains in Arlington National Cemetery. 

2411. Prohibition against interment or memorialization in the National 
Cemetery Administration or Arlington National Cemetery of persons 
committing Federal or State capital crimes. 

2412. Lease of land and buildings. 

2413. Prohibition on certain demonstrations at cemeteries under control 
of the 
National Cemetery Administration and at Arlington National Cemetery. 

ï¿½ 2400. Establishment of National Cemetery Administration; 
composition of Administration 

(a) There shall be within the Department a National Cemetery 
Administration responsible for the interment of deceased 
servicemembers and veterans. The National Cemetery Administration shall 
be headed by the Under Secretary for Memorial Affairs, 
who shall perform such functions as may be assigned by the Secretary. 
(b) The national cemeteries and other facilities under the control of 
the National Cemetery Administration shall consist of- 
(1) national cemeteries transferred from the Department of 
the Army to the Veteransï¿½ Administration by the National 
Cemeteries Act of 1973; 
(2) cemeteries under the jurisdiction of the Veteransï¿½ Administration 
on the date of enactment of this chapter; and 
(3) any other cemetery, memorial, or monument transferred to the 
Veteransï¿½ Administration by the National Cemeteries Act of 1973, or 
later acquired or developed by the Secretary. 
(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 75, Sec. 
1000; amended 
Pub. L. 99-576, title VII, Sec. 701(52), Oct. 28, 1986, 100 Stat. 3295; 
Pub. L. 100-527, Sec. 13(i), Oct. 25, 1988, 102 Stat. 2644; Pub. L. 
101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 2400 and amended Pub. 365 


Sec. 2401 CH. 24-NATIONAL CEMETERIES AND MEMORIALS 366 

L. 102-83, Sec. 4(a)(3), (4), 5(a), Aug. 6, 1991, 105 Stat. 404, 406; 
Pub. L. 105-368, 
title IV, Sec. 403(c)(3), Nov. 11, 1998, 112 Stat. 3338.) 
ï¿½ 2401. Advisory Committee on Cemeteries and Memorials 

There shall be appointed by the Secretary an Advisory Committee on 
Cemeteries and Memorials. The Secretary shall advise 
and consult with the Committee from time to time with respect to 
the administration of the cemeteries for which the Secretary is 
responsible, and with respect to the selection of cemetery sites, the 
erection of appropriate memorials, and the adequacy of Federal 
burial benefits. The Committee shall make periodic reports and 
recommendations to the Secretary and to Congress. 

(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 75, Sec. 1001; 
amended Pub. L. 99-576, title VII, Sec. 701(53), Oct. 28, 1986, 100 
Stat. 3295; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 
103 Stat. 2077; renumbered Sec. 2401, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 2402. Persons eligible for interment in national cemeteries 

Under such regulations as the Secretary may prescribe and 
subject to the provisions of section 6105 of this title, the remains 
of the following persons may be buried in any open national cemetery 
under the control of the National Cemetery Administration: 

(1) Any veteran (which for the purposes of this chapter includes a 
person who died in the active military, naval, or air service). 
(2) Any member of a Reserve component of the Armed Forces, 
and any member of the Army National Guard or the Air National 
Guard, whose death occurs under honorable conditions while such 
member is hospitalized or undergoing treatment, at the expense of 
the United States, for injury or disease contracted or incurred 
under honorable conditions while such member is performing active 
duty for training, inactive duty training, or undergoing that 
hospitalization or treatment at the expense of the United States. 
(3) Any member of the Reserve Officersï¿½ Training Corps of the 
Army, Navy, or Air Force whose death occurs under honorable conditions 
while such member is- 
(A) attending an authorized training camp or on an authorized practice 
cruise; 
(B) performing authorized travel to or from that camp or 
cruise; or 
(C) hospitalized or undergoing treatment, at the expense of 
the United States, for injury or disease contracted or incurred 
under honorable conditions while such member is- 
(i) attending that camp or on that cruise; 
(ii) performing that travel; or 
(iii) undergoing that hospitalization or treatment at 
the expense of the United States. 
(4) Any citizen of the United States who, during any war in 
which the United States is or has been engaged, served in the 
armed forces of any government allied with the United States during 
that war, and whose last such service terminated honorably. 
(5) The spouse, surviving spouse (which for purposes of this 
chapter includes a surviving spouse who had a subsequent remarriage), 
minor child (which for purposes of this chapter includes a 
child under 21 years of age, or under 23 years of age if pursuing 

367 CH. 24-NATIONAL CEMETERIES AND MEMORIALS Sec. 2403 

a course of instruction at an approved educational institution), and, 
in the discretion of the Secretary, unmarried adult child of any of 
the persons listed in paragraphs (1) through (4) and paragraph (7). 

(6) Such other persons or classes of persons as may be designated by 
the Secretary. 
(7) Any person who at the time of death was entitled to retired 
pay under chapter 1223 of title 10 or would have been entitled to 
retired pay under that chapter but for the fact that the person was 
under 60 years of age. 
(8) Any individual whose service is described in subsection (a) 
or (b) of section 107 of this title if such individual at the time of 
death- 
(A) was a citizen of the United States or an alien lawfully 
admitted for permanent residence in the United States; and 
(B) resided in the United States. 
(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 75, Sec. 1002; 
amended Pub. L. 99-576, title VII, Sec. 701(54), Oct. 28, 1986, 100 
Stat. 3295; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 
103 Stat. 2077; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 
105 Stat. 239; renumbered Sec. 2402, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 103-240, Sec. 1, May 4, 1994, 108 Stat. 
609; Pub. L. 103-446, title VIII, Sec. 801, 802, Nov. 2, 1994, 108 
Stat. 4675; Pub. L. 104-275, title II, Sec. 211, Oct. 9, 1996, 110 
Stat. 3330; Pub. L. 105-368, title IV, Sec. 403(c)(5), Nov. 11, 1998, 
112 Stat. 3338; Pub. L. 106-419, title III, Sec. 331(a), title IV, 
Sec. 404(a)(5), Nov. 1, 2000, 114 Stat. 1856, 1865; Pub. L. 108-183, 
title II, Sec. 212(b), title V, Sec. 502(a), Dec. 16, 2003, 117 Stat. 
2658, 2667.) 

ï¿½ 2403. Memorial areas 

(a) The Secretary shall set aside, when available, suitable 
areas in national cemeteries to honor the memory of members of 
the Armed Forces and veterans- 
(1) who are missing in action; 
(2) whose remains have not been recovered or identified; 
(3) whose remains were buried at sea, whether by the 
memberï¿½s or veteranï¿½s own choice or otherwise; 
(4) whose remains were donated to science; or 
(5) whose remains were cremated and the ashes scattered 
without interment of any portion of the ashes. 
(b) Under regulations prescribed by the Secretary, group memorials may 
be placed to honor the memory of groups of individuals referred to in 
subsection (a), and appropriate memorial headstones and markers may be 
placed to honor the memory of individuals referred to in subsection (a) 
and section 2306(b) of this 
title. 
(c) All national and other veteransï¿½ cemeteries under the control of 
the National Cemetery Administration shall be considered 
national shrines as a tribute to our gallant dead and, notwithstanding 
the provisions of any other law, the Secretary is hereby 
authorized to permit appropriate officials to fly the flag of the 
United States of America at such cemeteries twenty-four hours 
each day. 
(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 76, Sec. 1003; 
amended Pub. L. 97-66, title VI, Sec. 603(b), Oct. 17, 1981, 95 Stat. 
1034; Pub. L. 97-295, Sec. 4(34), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 
101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 2403, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 105-368, title IV, Sec. 401(c), 403(c)(6), Nov. 11, 
1998, 112 Stat. 3335, 3339.) 


Sec. 2404 CH. 24-NATIONAL CEMETERIES AND MEMORIALS 368 

ï¿½ 2404. Administration 

(a) The Secretary is authorized to make all rules and regulations which 
are necessary or appropriate to carry out the provisions 
of this chapter, and may designate those cemeteries which are 
considered to be national cemeteries. 
(b) In conjunction with the development and administration of 
cemeteries for which the Secretary is responsible, the Secretary 
shall provide all necessary facilities including, as necessary, 
superintendentsï¿½ lodges, chapels, crypts, mausoleums, and columbaria. 
(c)(1) Subject to paragraph (2), each grave in a national cemetery 
shall be marked with an appropriate marker. Such marker 
shall bear the name of the person buried, the number of the grave, 
and such other information as the Secretary shall by regulation 
prescribe. 

(2) The grave markers referred to in paragraph (1) shall be upright 
for interments that occur on or after January 1, 1987, except 
that- 
(A) in the case of any cemetery scheduled to be closed by 
September 30, 1991, as indicated in the documents submitted 
by the Administrator of Veteransï¿½ Affairs to the Congress in 
justification for the amounts included for Veteransï¿½ Administration 
programs in the Presidentï¿½s Budget for fiscal year 1987, 
the Secretary may provide for flat grave markers; 
(B) in the case of any cemetery with a section which has 
flat markers on October 28, 1986, the Secretary may continue 
to provide for flat grave markers in such section; 
(C) in the case of any cemetery located on the grounds of 
or adjacent to a Department health-care facility, the Secretary 
may provide for flat grave markers; and 
(D) in the case of grave sites of cremated remains that are 
interred in the ground, the Secretary may provide for flat 
grave markers. 
(d) There shall be kept in each national cemetery, and at the 
main office of the Department, a register of burials in each cemetery 
setting forth the name of each person buried in the cemetery, 
the number of the grave in which the veteran is buried, and such 
other information as the Secretary by regulation may prescribe. 
(e) In carrying out the Secretaryï¿½s responsibilities under this 
chapter, the Secretary may contract with responsible persons, 
firms, or corporations for the care and maintenance of such cemeteries 
under the Secretaryï¿½s jurisdiction as the Secretary shall 
choose, under such terms and conditions as the Secretary may prescribe. 
(f)(1) The Secretary is authorized to convey to any State, or political 
subdivision thereof, in which any national cemetery is located, all 
right, title, and interest of the United States in and to 
any Government owned or controlled approach road to such cemetery if, 
prior to the delivery of any instrument of conveyance, the 
State or political subdivision to which such conveyance is to be 
made notifies the Secretary in writing of its willingness to accept 
and maintain the road included in such conveyance. Upon the execution 
and delivery of such a conveyance, the jurisdiction of the 


369 CH. 24-NATIONAL CEMETERIES AND MEMORIALS Sec. 2405 

United States over the road conveyed shall cease and thereafter 
vest in the State or political subdivision concerned. 

(2) The Secretary may, to the extent of appropriated funds 
available for such purpose, make a contribution to local authorities 
for the construction of road improvements or traffic controls or 
other devices on land adjacent to a national cemetery if the Secretary 
determines that such a contribution is essential to ensure 
safe ingress to or egress from the cemetery. 
(g) Notwithstanding any other provision of law, the Secretary 
may at such time as the Secretary deems desirable, relinquish to 
the State in which any cemetery, monument, or memorial under 
the Secretaryï¿½s jurisdiction is located, such portion of legislative 
jurisdiction over the lands involved as is necessary to establish 
concurrent jurisdiction between the Federal Government and the State 
concerned. Such partial relinquishment of jurisdiction under the 
authority of this subsection may be made by filing with the Governor of 
the State involved a notice of such relinquishment and 
shall take effect upon acceptance thereof by the State in such manner 
as its laws may prescribe. 
(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 76, Sec. 1004; 
amended Pub. L. 99-576, title IV, Sec. 411, title VII, Sec. 701(55), 
Oct. 28, 1986, 100 Stat. 3283, 3295; Pub. L. 100-322, title III, Sec. 
341(a), 342, May 20, 1988, 102 Stat. 539, 540; Pub. L. 101-237, title 
III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; Pub. L. 102-54, 
Sec. 14(b)(21), June 13, 1991, 105 Stat. 284; renumbered Sec. 2404 and 
amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(7), 5(a), Aug. 6, 1991, 
105 Stat. 404- 
406.) 
ï¿½ 2405. Disposition of inactive cemeteries 

(a) The Secretary may transfer, with the consent of the agency 
concerned, any inactive cemetery, burial plot, memorial, or monument 
within the Secretaryï¿½s control to the Department of the Interior for 
maintenance as a national monument or park, or to any 
other agency of the Government. Any cemetery transferred to the 
Department of the Interior shall be administered by the Secretary 
of the Interior as a part of the National Park System, and funds 
appropriated to the Secretary of the Interior for such system shall 
be available for the management and operation of such cemetery. 
(b) The Secretary may also transfer and convey all right, title, 
and interest of the United States in or to any inactive cemetery or 
burial plot, or portion thereon, to any State, county, municipality, 
or proper agency thereof, in which or in the vicinity of which such 
cemetery or burial plot is located, but in the event the grantee 
shall cease or fail to care for and maintain the cemetery or burial 
plot or the graves and monuments contained therein in a manner 
satisfactory to the Secretary, all such right, title, and interest 
transferred or conveyed by the United States, shall revert to the 
United States. 
(c) If a cemetery not under the control of the National Cemetery 
Administration has been or is to be discontinued, the Secretary may 
provide for the removal of remains from that cemetery 
to any cemetery under the control of such Administration. The 
Secretary may also provide for the removal of the remains of any 
veteran from a place of temporary interment, or from an abandoned 
grave or cemetery, to a national cemetery. 

Sec. 2406 CH. 24-NATIONAL CEMETERIES AND MEMORIALS 370 

(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 77, Sec. 
1005; amended Pub. L. 99-576, title VII, Sec. 701(56), Oct. 28, 1986, 
100 Stat. 3295; Pub. L. 101- 237, title III, Sec. 313(b)(1), (4), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec.2405, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-368, title 
IV, Sec. 403(c)(7), Nov. 11, 1998, 112 Stat. 3339.) 

ï¿½ 2406. Acquisition of lands 

As additional lands are needed for national cemeteries, they 
may be acquired by the Secretary by purchase, gift (including donations 
from States or political subdivisions thereof), condemnation, 
transfer from other Federal agencies, exchange, or otherwise, as 
the Secretary determines to be in the best interest of the United 
States. 

(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 78, Sec. 1006; 
amended Pub. L. 99-576, title VII, Sec. 701(57), Oct. 28, 1986, 100 
Stat. 3295; Pub. L. 101- 237, title III, Sec. 313(b)(1), Dec. 18, 
1989, 103 Stat. 2077; renumbered Sec. 2406, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 108-454, title VI, 
Sec. 603, Dec. 10, 2004, 118 Stat. 3624.) 

ï¿½ 2407. Authority to accept and maintain suitable memorials 

Subject to such restrictions as the Secretary may prescribe, the 
Secretary may accept gifts, devises, or bequests from legitimate 
societies and organizations or reputable individuals, made in any 
manner, which are made for the purpose of beautifying national 
cemeteries, or are determined to be beneficial to such cemetery. 
The Secretary may make land available for this purpose, and may 
furnish such care and maintenance as the Secretary deems necessary. 

(Added Pub. L. 93-43, Sec. 2(a), June 18, 1973, 87 Stat. 78, Sec. 1007; 
amended Pub. L. 99-576, title VII, Sec. 701(58), Oct. 28, 1986, 100 
Stat. 3296; Pub. L. 101- 237, title III, Sec. 313(b)(1), Dec. 18, 1989, 
103 Stat. 2077; renumbered Sec. 2407, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 2408. Aid to States for establishment, expansion, and improvement of 
veteransï¿½ cemeteries 

(a)(1) Subject to subsection (b), the Secretary may make a 
grant to any State for the following purposes: 

(A) Establishing, expanding, or improving a veteransï¿½ cemetery owned
by the State. 
(B) Operating and maintaining such a cemetery. 
(2) A grant under paragraph (1) may be made only upon submission of an 
application to the Secretary in such form and manner, and containing 
such information, as the Secretary may require. 
(b) A grant under this section for a purpose described in subsection 
(a)(1)(A) shall be subject to the following conditions: 
(1) The amount of such a grant may not exceed- 
(A) in the case of the establishment of a new cemetery, 
the sum of: (i) the cost of improvements to be made on the 
land to be converted into a cemetery; and (ii) the cost of 
initial equipment necessary to operate the cemetery; and 
(B) in the case of the expansion or improvement of an 
existing cemetery, the sum of: (i) the cost of improvements 
to be made on any land to be added to the cemetery; and 
(ii) the cost of any improvements to be made to the existing cemetery. 

371 CH. 24-NATIONAL CEMETERIES AND MEMORIALS Sec. 2408 

(2) If the amount of such a grant is less than the amount 
of costs referred to in subparagraph (A) or (B) of paragraph (1), 
the State receiving the grant shall contribute the excess of 
such costs over the grant. 
(3) If a State that has received such a grant to establish, 
expand, or improve a veteransï¿½ cemetery ceases to own such 
cemetery, ceases to operate such cemetery as a veteransï¿½ cemetery, or 
uses any part of the funds provided through such grant 
for a purpose other than that for which the grant was made, 
the United States shall be entitled to recover from such State 
the total of all grants made under this section to such State 
in connection with such cemetery. 
(c)(1) In addition to the conditions specified in subsection (b) of 
this section, any grant to a State under this section to assist such 
State in establishing a veteransï¿½ cemetery shall be made on the 
condition that such cemetery shall conform to such standards and 
guidelines relating to site selection, planning, and construction as 
the Secretary may by regulation prescribe. In prescribing regulations 
for the purposes of the preceding sentence, the Secretary 
shall take into account the standards and guidelines for site selection, 
planning, and construction that are applicable to cemeteries 
under the control of the National Cemetery Administration, including 
those provided in subsections (b), (c), and (d) of section 2404 of 
this title. 

(2) The Secretary may by regulation prescribe such additional 
terms and conditions for grants under this section as the Secretary 
considers appropriate. 
(d)(1) In addition to the conditions specified in subsections (b) 
and (c), any grant made to a State under this section shall be made 
subject to the condition specified in paragraph (2). 

(2) For purposes of paragraph (1), the condition described in 
this paragraph is that, after the date of the receipt of the grant, 
such State prohibit the interment or memorialization in that cemetery 
of a person described in section 2411(b) of this title, subject 
to the receipt of notice described in subsection (a)(2) of such 
section, except that for purposes of this subsection- 
(A) such notice shall be furnished to an appropriate official 
of such State; and 
(B) a finding described in subsection (b)(3) of such section 
shall be made by an appropriate official of such State. 
(e)(1) Amounts appropriated to carry out this section shall re
main available until expended. If all funds from a grant under this 
section have not been utilized by a State for the purpose for which 
the grant was made within three years after such grant is made, 
the United States shall be entitled to recover any such unused 
grant funds from such State. 

(2) In any fiscal year, the aggregate amount of grants awarded 
under this section for the purposes specified in subsection (a)(1)(B) 
may not exceed $5,000,000. 
(f)(1) The Secretary may make grants under this subsection to 
any tribal organization to assist the tribal organization in 
establishing, expanding, or improving veteransï¿½ cemeteries, or in 
operating and maintaining such cemeteries, on trust land owned by, or 
held in trust for, the tribal organization. 


Sec. 2409 CH. 24-NATIONAL CEMETERIES AND MEMORIALS 372 

(2) Grants under this subsection shall be made in the same 
manner, and under the same conditions, as grants to States are 
made under the preceding provisions of this section. 
(3) For purposes of this subsection: 
(A) The term ï¿½ï¿½tribal organizationï¿½ï¿½ has the meaning given 
that term in section 3765(4) of this title. 
(B) The term ï¿½ï¿½trust landï¿½ï¿½ has the meaning given that term 
in section 3765(1) of this title. 
(Added Pub. L. 95-476, title II, Sec. 202(b)(1), Oct. 18, 1978, 92 
Stat. 1504, Sec. 1008; amended Pub. L. 98-223, title II, Sec. 202, 
Mar. 2, 1984, 98 Stat. 41; Pub. L. 100-322, title III, Sec. 343, May 20, 
1988, 102 Stat. 540; Pub. L. 100-687, div. B, title XVI, Sec. 1601, 
Nov. 18, 1988, 102 Stat. 4137; Pub. L. 101-237, title III, 
Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 2408 
and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 103-446, title VIII, Sec. 803, Nov. 2, 1994, 108 Stat. 
4675; Pub. L. 105-116, Sec. 2, Nov. 21, 1997, 111 Stat. 2382; Pub. L. 
105-368, title IV, Sec. 403(c)(8), 404(a)(1), (b), (c), title X, 
Sec. 1005(b)(5), Nov. 11, 1998, 112 Stat. 3339, 3365; Pub. L. 108-183, 
title V, Sec. 503, Dec. 16, 2003, 117 Stat. 2667; Pub. L. 109-461, 
title IV, Sec. 403, Dec. 22, 2006, 120 Stat. 3430; Pub. L. 110-140, 
title II, Sec. 202(b)(1)-(3), Dec. 26, 2007, 121 Stat. 
1832.) 
ï¿½ 2409. Memorial areas in Arlington National Cemetery 

(a) The Secretary of the Army may set aside, when available, 
a suitable area or areas in Arlington National Cemetery, Virginia, 
to honor the memory of members of the Armed Forces and veterans- 
(1) who are missing in action; 
(2) whose remains have not been recovered or identified; 
(3) whose remains were buried at sea, whether by the 
memberï¿½s or veteranï¿½s own choice or otherwise; 
(4) whose remains were donated to science; or 
(5) whose remains were cremated and whose ashes were 
scattered without interment of any portion of the ashes. 
(b) Under regulations prescribed by the Secretary of the Army, 
appropriate memorials or markers may be erected in Arlington National 
Cemetery to honor the memory of those individuals, or group 
of individuals, referred to in subsection (a) of this section. 
(Added Pub. L. 99-576, title IV, Sec. 413(a), Oct. 28, 1986, 100 Stat. 
3284, Sec. 
1009; amended Pub. L. 101-237, title III, Sec. 313(b)(5), Dec. 18, 1989, 
103 Stat. 
2077; renumbered Sec. 2409, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 2410. Burial of cremated remains in Arlington National 
Cemetery 

(a) The Secretary of the Army shall designate an area of appropriate size 
within Arlington National Cemetery for the unmarked 
interment, in accordance with such regulations as the Secretary 
may prescribe, of the ashes of persons eligible for interment in 
Arlington National Cemetery whose remains were cremated. Such 
area shall be an area not suitable for the burial of casketed remains. 
(b) The Secretary of each military department shall make 
available appropriate forms on which those members of the Armed 
Forces who so desire may indicate their desire to be buried within 
the area to be designated under subsection (a). 

373 CH. 24-NATIONAL CEMETERIES AND MEMORIALS Sec. 2411 

(Added Pub. L. 101-237, title V, Sec. 502(a), Dec. 18, 1989, 103 Stat. 
2093, Sec. 1010; amended Pub. L. 102-54, Sec. 14(b)(22), June 13, 1991, 
105 Stat. 284; renumbered Sec. 2410, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 2411. Prohibition against interment or memorialization in 
the National Cemetery Administration or Arlington 
National Cemetery of persons committing Federal 
or State capital crimes 

(a)(1) In the case of a person described in subsection (b), the 
appropriate Federal official may not- 

(A) inter the remains of such person in a cemetery in the 
National Cemetery Administration or in Arlington National 
Cemetery; or 
(B) honor the memory of such person in a memorial area 
in a cemetery in the National Cemetery Administration (described in 
section 2403(a) of this title) or in such an area in 
Arlington National Cemetery (described in section 2409(a) of 
this title). 
(2) In the case of a person described in subsection (b)(1) or 
(b)(2), the prohibition under paragraph (1) shall not apply unless 
written notice of a conviction referred to in subsection (b)(1) or 
(b)(2), as the case may be, is received by the appropriate Federal 
official before such official approves an application for the interment 
or memorialization of such person. Such written notice shall 
be furnished to such official by the Attorney General, in the case 
of a Federal capital crime, or by an appropriate State official, in 
the case of a State capital crime. 
(b) A person referred to in subsection (a) is any of the following: 
(1) A person who has been convicted of a Federal capital 
crime and whose conviction is final (other than a person whose 
sentence was commuted by the President). 
(2) A person who has been convicted of a State capital 
crime and whose conviction is final (other than a person whose 
sentence was commuted by the Governor of a State). 
(3) A person who- 
(A) is found (as provided in subsection (c)) to have 
committed a Federal capital crime or a State capital crime, 
but 
(B) has not been convicted of such crime by reason of 
such person not being available for trial due to death or 
flight to avoid prosecution. 
(c) A finding under subsection (b)(3) shall be made by the appropriate 
Federal official. Any such finding may only be made 
based upon a showing of clear and convincing evidence, after an 
opportunity for a hearing in a manner prescribed by the appropriate 
Federal official. 
(d) For purposes of this section: 
(1) The term ï¿½ï¿½Federal capital crimeï¿½ï¿½ means an offense 
under Federal law for which a sentence of imprisonment for 
life or the death penalty may be imposed. 
(2) The term ï¿½ï¿½State capital crimeï¿½ï¿½ means, under State law, 
the willful, deliberate, or premeditated unlawful killing of an

Sec. 2412 CH. 24-NATIONAL CEMETERIES AND MEMORIALS 374 

other human being for which a sentence of imprisonment for 
life or the death penalty may be imposed. 

(3) The term ï¿½ï¿½appropriate Federal officialï¿½ï¿½ means- 
(A) the Secretary, in the case of the National Cemetery Administration; 
and 
(B) the Secretary of the Army, in the case of Arlington 
National Cemetery. 
(Added Pub. L. 105-116, Sec. 1(a), Nov. 21, 1997, 111 Stat. 2381; 
amended Pub. L. 
105-368, title IV, Sec. 403(d)(1), Nov. 11, 1998, 112 Stat. 3339; Pub. 
L. 107-330, 
title II, Sec. 202, Dec. 6, 2002, 116 Stat. 2824; Pub. L. 109-163, 
div. A, title VI, Sec. 
662(a), Jan. 6, 2006, 119 Stat. 3314.) 

ï¿½ 2412. Lease of land and buildings 

(a) LEASE AUTHORIZED.-The Secretary may lease any undeveloped land and 
unused or underutilized buildings, or parts or parcels thereof, 
belonging to the United States and part of the National Cemetery 
Administration. 
(b) TERM.-The term of a lease under subsection (a) may not 
exceed 10 years. 
(c) LEASE TO PUBLIC OR NONPROFIT ORGANIZATIONS.-(1) A 
lease under subsection (a) to any public or nonprofit organization 
may be made without regard to the provisions of section 3709 of 
the Revised Statutes (41 U.S.C. 5). 
(2) Notwithstanding section 1302 of title 40 or any other provision of 
law, a lease under subsection (a) to any public or nonprofit 
organization may provide for the maintenance, protection, or restoration 
of the leased property by the lessee, as a part or all of the 
consideration for the lease. 
(d) NOTICE.-Before entering into a lease under subsection (a), 
the Secretary shall give appropriate public notice of the intention 
of the Secretary to enter into the lease in a newspaper of general 
circulation in the community in which the lands or buildings concerned 
are located. 
(e) NATIONAL CEMETERY ADMINISTRATION FACILITIES OPERATION FUND.-(1) 
There is established on the book of the Treasury 
an account to be known as the ï¿½ï¿½National Cemetery Administration 
Facilities Operation Fundï¿½ï¿½ (in this section referred to as the 
ï¿½ï¿½Fundï¿½ï¿½). 
(2) The Fund shall consist of the following: 
(A) Proceeds from the lease of land or buildings under this 
section. 
(B) Proceeds of agricultural licenses of lands of the National Cemetery 
Administration. 
(C) Any other amounts appropriated to or otherwise authorized for deposit 
in the Fund by law. 
(3) Amounts in the Fund shall be available to cover costs incurred by 
the National Cemetery Administration in the operation 
and maintenance of property of the Administration. 
(4) Amounts in the Fund shall remain available until ex
pended.
(Added Pub. L. 108-454, title VI, Sec. 602(a), Dec. 10, 2004, 118 
Stat. 3623.)



375 CH. 24-NATIONAL CEMETERIES AND MEMORIALS Sec. 2413 

ï¿½ 2413. Prohibition on certain demonstrations at cemeteries 
under control of the National Cemetery Administration and at Arlington 
National Cemetery 

(a) PROHIBITION.-No person may carry out- 
(1) a demonstration on the property of a cemetery under 
the control of the National Cemetery Administration or on the 
property of Arlington National Cemetery unless the demonstration has 
been approved by the cemetery superintendent 
or the director of the property on which the cemetery is located; or 
(2) with respect to such a cemetery, a demonstration during the period 
beginning 60 minutes before and ending 60 minutes after a funeral, 
memorial service, or ceremony is held, any 
part of which demonstration- 
(A)(i) takes place within 150 feet of a road, pathway, 
or other route of ingress to or egress from such cemetery 
property; and 

(ii) includes, as part of such demonstration, any individual willfully 
making or assisting in the making of any 
noise or diversion that disturbs or tends to disturb the 
peace or good order of the funeral, memorial service, or 
ceremony; or 
(B) is within 300 feet of such cemetery and impedes 
the access to or egress from such cemetery. 
(b) DEMONSTRATION.-For purposes of this section, the term 
ï¿½ï¿½demonstrationï¿½ï¿½ includes the following: 
(1) Any picketing or similar conduct. 
(2) Any oration, speech, use of sound amplification equipment or device, 
or similar conduct that is not part of a funeral, 
memorial service, or ceremony. 
(3) The display of any placard, banner, flag, or similar device, 
unless such a display is part of a funeral, memorial service, or 
ceremony. 
(4) The distribution of any handbill, pamphlet, leaflet, or 
other written or printed matter other than a program distributed as 
part of a funeral, memorial service, or ceremony.. 
(Added Pub. L. 109-228, Sec. 2(a)(1), May 29, 2006, 120 Stat. 387.) 


CHAPTER 30 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


377 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

PART III-READJUSTMENT AND RELATED BENEFITS 

Chapter Sec. 

30. All-Volunteer Force Educational Assistance Program ................................................................... 3001 

31. Training and Rehabilitation for Veterans with 
Service-Connected Disabilities ................................ 3100 

32. Post-Vietnam Era Veteransï¿½ Educational Assistance 3201 

33. Post 9/11 Educational Assistance .............................. 3301


34. Veteransï¿½ Educational Assistance .............................. 3451


35. Survivorsï¿½ and Dependentsï¿½ Educational Assistance 3500 

36. Administration of Educational Benefits .................... 3670


37. Housing and Small Business Loans .......................... 3701


39. Automobiles and Adaptive Equipment for Certain 
Disabled Veterans and Members of the Armed 
Forces .......................................................... 3901 

41. Job Counseling, Training, and Placement Service 
for Veterans ................................................. 4100 

42. Employment and Training of Veterans ..................... 4211


43. Employment and Reemployment Rights of Members of the Uniformed 
Services ............................... 4301 

379 


CHAPTER 30-ALL-VOLUNTEER FORCE EDUCATIONAL 
ASSISTANCE PROGRAM


SUBCHAPTER I-PURPOSES; DEFINITIONS 

Sec. 
3001. Purposes. 
3002. Definitions. 

SUBCHAPTER II-BASIC EDUCATIONAL ASSISTANCE 

3011. Basic educational assistance entitlement for service on active 
duty. 

3012. Basic educational assistance entitlement for service in the 
Selected Reserve. 

3013. Duration of basic educational assistance. 

3014. Payment of basic educational assistance. 

3014A. Accelerated payment of basic educational assistance for 
education leading 
to employment in high technology occupation in high technology 
industry. 

3015. Amount of basic educational assistance. 

3016. Inservice enrollment in a program of education. 

3017. Death benefit. 

3018. Opportunity for certain active-duty personnel to withdraw 
election not to 
enroll. 

3018A. Opportunity for certain active-duty personnel to enroll before 
being involuntarily separated from service. 

3018B. Opportunity for certain persons to enroll. 

3018C. Opportunity for certain VEAP participants to enroll. 

3019. Tutorial assistance. 

3020. Authority to transfer unused education benefits to family members 
of career service members. 

SUBCHAPTER III-SUPPLEMENTAL EDUCATIONAL ASSISTANCE 

3021. Supplemental educational assistance for additional service. 
3022. Amount of supplemental educational assistance. 
3023. Payment of supplemental educational assistance under this 
subchapter. 


SUBCHAPTER IV-TIME LIMITATION FOR USE OF ELIGIBILITY AND 
ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS 


3031. Time limitation for use of eligibility and entitlement. 
3032. Limitations on educational assistance for certain individuals. 
3033. Bar to duplication of educational assistance benefits. 
3034. Program administration. 
3035. Allocation of administration and of program costs. 
3036. Reporting requirement.


SUBCHAPTER I-PURPOSES; DEFINITIONS 

ï¿½ 3001. Purposes 

The purposes of this chapter are- 

(1) to provide a new educational assistance program to assist in the 
readjustment of members of the Armed Forces to civilian life after 
their separation from military service; 
(2) to extend the benefits of a higher education to qualifying men and 
women who might not otherwise be able to afford such an education; 
381 


Sec. 3002 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 382 

(3) to provide for vocational readjustment and to restore 
lost educational opportunities to those service men and women 
who served on active duty after June 30, 1985; 
(4) to promote and assist the All-Volunteer Force program 
and the Total Force Concept of the Armed Forces by establishing a new 
program of educational assistance based upon 
service on active duty or a combination of service on active 
duty and in the Selected Reserve (including the National 
Guard) to aid in the recruitment and retention of highly qualified 
personnel for both the active and reserve components of 
the Armed Forces; 
(5) to give special emphasis to providing educational assistance 
benefits to aid in the retention of personnel in the 
Armed Forces; and 
(6) to enhance our Nationï¿½s competitiveness through the 
development of a more highly educated and productive work 
force. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2553, Sec. 
1401; amended Pub. L. 100-48, Sec. 5, June 1, 1987, 101 Stat. 331; 
renumbered Sec. 
3001, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3002. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½basic educational assistanceï¿½ï¿½ means educational 
assistance provided under subchapter II of this chapter. 
(2) The term ï¿½ï¿½supplemental educational assistanceï¿½ï¿½ means 
educational assistance provided under subchapter III of this chapter. 
(3) The term ï¿½ï¿½program of educationï¿½ï¿½- 
(A) has the meaning given such term in section 3452(b) of 
this title; 
(B) includes- 
(i) a preparatory course for a test that is required or 
used for admission to an institution of higher education; 
and 
(ii) a preparatory course for a test that is required or 
used for admission to a graduate school; and 
(C) in the case of an individual who is not serving on active duty, 
includes (i) a full-time program of apprenticeship or 
of other on-job training approved as provided in clause (1) or 
(2), as appropriate, of section 3687(a) of this title, and (ii) a 
cooperative program (as defined in section 3482(a)(2) of this 
title). 
(4) The term ï¿½ï¿½Selected Reserveï¿½ï¿½ means the Selected Reserve of 
the Ready Reserve of any of the reserve components (including the 
Army National Guard of the United States and the Air National 
Guard of the United States) of the Armed Forces, as required to be 
maintained under section 10143(a) of title 10. 
(5) The term ï¿½ï¿½Secretary of Defenseï¿½ï¿½ means the Secretary of Defense, 
except that it means the Secretary of Homeland Security 
with respect to the Coast Guard when it is not operating as a service 
in the Navy. 
(6) The term ï¿½ï¿½active dutyï¿½ï¿½ does not include any period during 
which an individual (A) was assigned full time by the Armed 

383 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3011 

Forces to a civilian institution for a course of education which was 
substantially the same as established courses offered to civilians, 

(B) served as a cadet or midshipman at one of the service academies, or 
(C) served under the provisions of section 12103(d) of title 
10 pursuant to an enlistment in the Army National Guard or the 
Air National Guard, or as a Reserve for service in the Army Reserve, 
Navy Reserve, Air Force Reserve, Marine Corps Reserve, or 
Coast Guard Reserve. 
(7) The term ï¿½ï¿½active dutyï¿½ï¿½ includes full-time National Guard 
duty first performed after June 30, 1985, by a member of the Army 
National Guard of the United States or the Air National Guard of 
the United States in the memberï¿½s status as a member of the National 
Guard of a State for the purpose of organizing, administering, 
recruiting, instructing, or training the National Guard. 
(8) The term ï¿½ï¿½educational institutionï¿½ï¿½ has the meaning given 
such term in section 3452(c) of this title. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2554, Sec. 1402; amended Pub. L. 99-576, title III, Sec. 301(a), 
Oct. 28, 1986, 100 Stat. 3267; Pub. L. 100-689, title I, Sec. 
108(a)(1), 111(a)(1), Nov. 18, 1988, 102 Stat. 4169, 4170; Pub. L. 
101-237, title IV, Sec. 423(b)(3), Dec. 18, 1989, 103 Stat. 2092; Pub. 

L. 101-510, div. A, title V, Sec. 563(a), Nov. 5, 1990, 104 Stat. 1575; 
renumbered Sec. 3002 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-337, div. A, title XVI, Sec. 
1677(d)(2), Oct. 5, 1994, 108 Stat. 3020; Pub. L. 103-446, title VI,
Sec. 603(b), Nov. 2, 1994, 108 Stat. 4671; Pub. L. 104-275, title 
I, Sec. 107(a), Oct. 9, 1996, 110 Stat. 3329; Pub. L. 106-117, title 
VII, Sec. 701, Nov. 30, 1999, 113 Stat. 1582; Pub. L. 107-296, title 
XVII, Sec. 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 109-163, 
div. A, title V, Sec. 515(e)(2), Jan. 6, 2006, 119 
Stat. 3236.) 
SUBCHAPTER II-BASIC EDUCATIONAL ASSISTANCE 

ï¿½ 3011. Basic educational assistance entitlement for service 
on active duty 

(a) Except as provided in subsection (c) of this section, each 
individual- 
(1) who- 
(A) after June 30, 1985, first becomes a member of the 
Armed Forces or first enters on active duty as a member 
of the Armed Forces and- 
(i) who (I) in the case of an individual whose obligated period of 
active duty is three years or more, 
serves at least three years of continuous active duty in 
the Armed Forces, or (II) in the case of an individual 
whose obligated period of active duty is less than three 
years, serves at least two years of continuous active 
duty in the Armed Forces; or 
(ii) who serves in the Armed Forces and is discharged or released from 
active duty (I) for a service-
connected disability, by reason of a sole survivorship 
discharge (as that term is defined in section 1174(i) of 
title 10), for a medical condition which preexisted such 
service on active duty and which the Secretary determines is not 
service connected, for hardship, or for a 
physical or mental condition that was not characterized as a 
disability and did not result from the individualï¿½s own willful 
misconduct but did interfere with the 

Sec. 3011 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 384 

individualï¿½s performance of duty, as determined by the 
Secretary of each military department in accordance 
with regulations prescribed by the Secretary of Defense or by the 
Secretary of Homeland Security with 
respect to the Coast Guard when it is not operating as 
a service in the Navy; (II) for the convenience of the 
Government, if, in the case of an individual with an 
obligated period of service of two years, the individual 
completes not less than 20 months of continuous active duty under that 
period of obligated service, or, in 
the case of an individual with an obligated period of 
service of at least three years, the individual completes not less than 
30 months of continuous active 
duty under that period of obligated service, or in the 
case of an individual who completed not less than 30 
months of continuous active duty if the initial obligated period of 
active duty of the individual was at 
least three years; or (III) involuntarily for the convenience of the 
Government as a result of a reduction in 
force, as determined by the Secretary of the military 
department concerned in accordance with regulations 
prescribed by the Secretary of Defense or by the Secretary of Homeland 
Security with respect to the Coast 
Guard when it is not operating as a service in the 
Navy; 

(B) as of December 31, 1989, is eligible for educational 
assistance benefits under chapter 34 of this title and was 
on active duty at any time during the period beginning on 
October 19, 1984, and ending on July 1, 1985, continued 
on active duty without a break in service and- 
(i) after June 30, 1985, serves at least three years 
of continuous active duty in the Armed Forces; or 
(ii) after June 30, 1985, is discharged or released 
from active duty (I) for a service-connected disability, 
by reason of a sole survivorship discharge (as that 
term is defined in section 1174(i) of title 10), for a 
medical condition which preexisted such service on active duty and 
which the Secretary determines is not 
service connected, for hardship, or for a physical or 
mental condition that was not characterized as a disability, as 
described in subparagraph (A)(ii)(I) of this 
paragraph; (II) for the convenience of the Government, 
if the individual completed not less than 30 months of 
continuous active duty after that date; or (III) involuntarily for the 
convenience of the Government as a result of a reduction in force, as 
determined by the Secretary of the military department concerned in 
accordance with regulations prescribed by the Secretary of 
Defense or by the Secretary of Homeland Security 
with respect to the Coast Guard when it is not operating as a service 
in the Navy; or 
(C) as of December 31, 1989, was eligible for educational assistance
benefits under chapter 34 of this title 
and- 

385 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3011 

(i) was not on active duty on October 19, 1984; 
(ii) reenlists or reenters on a period of active duty 
after October 19, 1984; and 
(iii) on or after July 1, 1985, either- 
(I) serves at least three years of continuous 
active duty in the Armed Forces; or 
(II) is discharged or released from active duty 
(aa) for a service-connected disability, by reason of 
a sole survivorship discharge (as that term is defined in section 
1174(i) of title 10), for a medical 
condition which preexisted such service on active 
duty and which the Secretary determines is not 
service connected, for hardship, or for a physical 
or mental condition that was not characterized as 
a disability, as described in subparagraph (A)(ii)(I) 
of this paragraph, (bb) for the convenience of the 
Government, if the individual completed not less 
than 30 months of continuous active duty after 
that date, or (cc) involuntarily for the convenience 
of the Government as a result of a reduction in 
force, as determined by the Secretary of the military department 
concerned in accordance with 
regulations prescribed by the Secretary of Defense 
or by the Secretary of Homeland Security with respect to the Coast Guard 
when it is not operating 
as a service in the Navy; 
(2) who completes the requirements of a secondary school 
diploma (or equivalency certificate), or successfully completes 
(or otherwise receives academic credit for) the equivalent of 12 
semester hours in a program of education leading to a standard college 
degree, before applying for benefits under this section; and 
(3) who, after completion of the service described in clause 
(1) of this subsection- 
(A) continues on active duty; 
(B) is discharged from active duty with an honorable 
discharge; 
(C) is released after service on active duty characterized by the 
Secretary concerned as honorable service and 
is placed on the retired list, is transferred to the Fleet Reserve or 
Fleet Marine Corps Reserve, or is placed on the 
temporary disability retired list; or 
(D) is released from active duty for further service in 
a reserve component of the Armed Forces after service on 
active duty characterized by the Secretary concerned as 
honorable service; 
is entitled to basic educational assistance under this chapter. 

(b)(1) Except as provided in paragraph (2), the basic pay of any 
individual described in subsection (a)(1)(A) of this section who does 
not make an election under subsection (c)(1) of this section shall be 
reduced by $100 for each of the first 12 months that such individual 
is entitled to such pay. 

(2) In the case of an individual covered by paragraph (1) who 
is a member of the Selected Reserve, the Secretary of Defense shall 

Sec. 3011 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 386 

collect from the individual an amount equal to $1,200 not later 
than one year after completion by the individual of the two years 
of service on active duty providing the basis for such entitlement. 
The Secretary of Defense may collect such amount through reductions in 
basic pay in accordance with paragraph (1) or through such 
other method as the Secretary of Defense considers appropriate. 

(3) Any amount by which the basic pay of an individual is reduced under 
this subsection shall revert to the Treasury and shall 
not, for purposes of any Federal law, be considered to have been 
received by or to be within the control of such individual. 
(c)(1) An individual described in subsection (a)(1)(A) of this section 
may make an election not to receive educational assistance 
under this chapter. Any such election shall be made at the time the 
individual initially enters on active duty as a member of the Armed 
Forces. Any individual who makes such an election is not entitled 
to educational assistance under this chapter. 

(2) An individual who after December 31, 1976, receives a commission as 
an officer in the Armed Forces upon graduation from 
the United States Military Academy, the United States Naval 
Academy, the United States Air Force Academy, or the Coast 
Guard Academy is not eligible for educational assistance under this 
section. 
(3) An individual who after December 31, 1976, receives a commission as 
an officer in the Armed Forces upon completion of a program of 
educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the individual 
enters on active duty- 
(A) before October 1, 1996; or 
(B) after September 30, 1996, and while participating in 
such program received more than $3,400 for each year of such 
participation. 
(d)(1) For purposes of this chapter, any period of service de
scribed in paragraphs (2) and (3) of this subsection shall not be 
considered a part of an obligated period of active duty on which an 
individualï¿½s entitlement to assistance under this section is based. 

(2) The period of service referred to in paragraph (1) is any period 
terminated because of a defective enlistment and induction 
based on- 
(A) the individualï¿½s being a minor for purposes of service 
in the Armed Forces; 
(B) an erroneous enlistment or induction; or 
(C) a defective enlistment agreement. 
(3) The period of service referred to in paragraph (1) is also 
any period of service on active duty which an individual in the 
Selected Reserve was ordered to perform under section 12301, 12302, 
12304, 12306, or 12307 of title 10 for a period of less than 2 years. 
(e)(1) Any individual eligible for educational assistance under 
this section who does not make an election under subsection (c)(1) 
may contribute amounts for purposes of receiving an increased 
amount of basic educational assistance as provided for under section 
3015(g) of this title. Such contributions shall be in addition to 
any reductions in the basic pay of such individual under subsection 
(b). 


387 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3011 

(2) An individual covered by paragraph (1) may make the contributions 
authorized by that paragraph at any time while on active duty, but not 
more frequently than monthly. 
(3) The total amount of the contributions made by an individual under 
paragraph (1) may not exceed $600. Such contributions shall be made 
in multiples of $20. 
(4) Contributions under this subsection shall be made to the 
Secretary of the military department concerned. That Secretary 
shall deposit any amounts received as contributions under this 
subsection into the Treasury as miscellaneous receipts. 
(f)(1) For the purposes of this chapter, a member referred to in 
paragraph (2) or (3) of this subsection who serves the periods of 
active duty referred to in that paragraph shall be deemed to have 
served a continuous period of active duty the length of which is the 
aggregate length of the periods of active duty referred to in that 
paragraph. 

(2) This subsection applies to a member who- 
(A) after a period of continuous active duty of not more 
than 12 months, is discharged or released from active duty 
under subclause (I) or (III) of subsection (a)(1)(A)(ii) of this 
section; and 
(B) after such discharge or release, reenlists or re-enters 
on a period of active duty. 
(3) This subsection applies to a member who after a period of 
continuous active duty as an enlisted member or warrant officer, 
and following successful completion of officer training school, is 
discharged in order to accept, without a break in service, a 
commission as an officer in the Armed Forces for a period of active 
duty. 
(g) Notwithstanding section 3002(6)(A) of this title, a period 
during which an individual is assigned full time by the Armed 
Forces to a civilian institution for a course of education as 
described in such section 3002(6)(A) shall not be considered a break 
in service or a break in a continuous period of active duty of the 
individual for the purposes of this chapter. 
(h)(1) Notwithstanding section 3002(6)(B) of this title, a member 
referred to in paragraph (2) of this subsection who serves the 
periods of active duty referred to in subparagraphs (A) and (C) of 
that paragraph shall be deemed to have served a continuous period 
of active duty whose length is the aggregate length of the periods 
of active duty referred to in such subparagraphs. 

(2) This subsection applies to a member who- 
(A) during the obligated period of active duty on which entitlement 
to assistance under this section is based, commences 
pursuit of a course of education- 
(i) at a service academy; or 
(ii) at a post-secondary school for the purpose of preparation for 
enrollment at a service academy; 
(B) fails to complete the course of education; and 
(C) re-enters on a period of active duty. 
(i) The Secretary concerned shall inform any member of the 
Armed Forces who has not completed that memberï¿½s obligated period of 
active duty (as described in subsection (a)(1)(A)) and who indicates 
the intent to be discharged or released from such duty for 
the convenience of the Government of the minimum active duty re

Sec. 3012 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 388 

quirements for entitlement to educational assistance benefits under 
this chapter. Such information shall be provided to the member in 
a timely manner. 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2554, Sec. 
1411; amended Pub. L. 99-145, title VI, Sec. 674(1), Nov. 8, 1985, 99 
Stat. 665; Pub. L. 99-576, title III, Sec. 303(a)(1), 307(a)(1), 
321(1), title VII, Sec. 702(8), Oct. 28, 1986, 100 Stat. 3268, 3269, 
3277, 3302; Pub. L. 100-48, Sec. 3(a), June 1, 1987, 101 Stat. 331; 
Pub. L. 100-689, title I, Sec. 102(a), 103(b)(1), 104(a), 111(a)(2)(A), 
(3), Nov. 18, 1988, 102 Stat. 4162, 4165, 4166, 4170, 4171; Pub. L. 
101-237, title IV, Sec. 409, 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2084, 2092; Pub. L. 101-510, div. A, title V, Sec. 562(a)(1), (2), (b), 
Nov. 5, 1990, 104 Stat. 1573, 1574; Pub. L. 102-16, Sec. 10(a)(1), 
Mar. 22, 1991, 105 Stat. 55; renumbered Sec. 3011, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, 
Sec. 302(a)(1), 303(a)(1), 304(a), 305(a), 306(a), Oct. 29, 1992, 106 
Stat. 4326-4328; Pub. L. 103- 446, title XII, Sec. 1201(e)(10), (f)(2), 
Nov. 2, 1994, 108 Stat. 4685, 4687; Pub. L. 104-106, div. A, title XV, 
Sec. 1501(e)(2)(A), Feb. 10, 1996, 110 Stat. 501; Pub. L. 104-201, div. 
A, title V, Sec. 556(a), Sept. 23, 1996, 110 Stat. 2528; Pub. L. 105- 
368, title II, Secs. 203(a), 207(a), Nov. 11, 1998, 112 Stat. 3326, 
3328; Pub. L. 106- 117, title VII, Secs. 702(a), 704, Nov. 30, 1999, 
113 Stat. 1583, 1584; Pub. L. 106- 419, title I, Secs. 102(a)(1), 
103(a), 105(a)(1), Nov. 1, 2000, 114 Stat. 1824, 1825, 1828; Pub. L. 
107-14, Sec. 7(a)(1), (c)(1), June 5, 2001, 115 Stat. 31, 32; Pub. L. 
107-103, title I, Secs. 105(a), 106(a), Dec. 27, 2001, 115 Stat. 982, 
983; Pub. L. 107- 296, title XVII, Sec. 1704(d), Nov. 25, 2002, 116 
Stat. 2315; Pub. L. 107-330, title III, Sec. 308(a), Dec. 6, 2002, 
116 Stat. 2827; Pub. L. 108-454, title I, Sec. 109(a), Dec. 10, 
2004, 118 Stat. 3604; Pub. L. 109-444, Sec. 8(b)(2), Dec. 21, 2006, 
120 Stat. 3313; Pub. L. 109-461, title X, Secs. 1004(b)(2), 1006(b), 
Dec. 22, 2006, 120 Stat. 3466, 3468; Pub. L. 110-317, Sec. 6(c)(1), 
Aug. 29, 2008, 122 Stat. 3529.) 
ï¿½ 3012. Basic educational assistance entitlement for service 
in the Selected Reserve 

(a) Except as provided in subsection (d) of this section, each 
individual- 
(1) who- 
(A) after June 30, 1985, first becomes a member of the 
Armed Forces or first enters on active duty as a member 
of the Armed Forces and- 
(i) serves an obligated period of active duty of at 
least two years of continuous active duty in the Armed 
Forces, subject to subsection (b) of this section, characterized by the 
Secretary concerned as honorable service; and (ii) subject to 
subsection (b) of this section and beginning within one year after 
completion of the service 
on active duty described in subclause (i) of this clause, 
serves at least four years of continuous duty in the Selected Reserve 
during which the individual participates satisfactorily in training 
as required by the Secretary concerned; 
(B) as of December 31, 1989, is eligible for educational 
assistance under chapter 34 of this title and was on active 
duty at any time during the period beginning on October 
19, 1984, and ending on July 1, 1985, continued on active 
duty without a break in service and- 
(i) after June 30, 1985, serves at least two years 
of continuous active duty in the Armed Forces, subject 
to subsection (b) of this section, characterized by the 
Secretary concerned as honorable service; and 

389 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3012 

(ii) after June 30, 1985, subject to subsection (b) 
of this section and beginning within one year after 
completion of such two years of service, serves at least 
four continuous years in the Selected Reserve during 
which the individual participates satisfactorily in 
training as prescribed by the Secretary concerned; or 
(C) as of December 31, 1989, was eligible for educational assistance 
under chapter 34 of this title and- 
(i) was not on active duty on October 19, 1984; 
(ii) reenlists or reenters on a period of active duty 
after October 19, 1984; and 
(iii) on or after July 1, 1985- 
(I) serves at least two years of continuous active duty in the Armed 
Forces, subject to subsection (b) of this section, characterized by the 
Secretary concerned as honorable service; and 
(II) subject to subsection (b) of this section 
and beginning within one year after completion of 
such two years of service, serves at least four continuous years in 
the Selected Reserve during 
which the individual participates satisfactorily in 
training as prescribed by the Secretary concerned; 
(2) who completes the requirements of a secondary school 
diploma (or equivalency certificate), or successfully completes 
(or otherwise receives academic credit for) the equivalent of 12 
semester hours in a program of education leading to a standard college 
degree, before applying for benefits under this section; and 
(3) who, after completion of the service described in clause 
(1) of this subsection- 
(A) is discharged from service with an honorable discharge, is placed 
on the retired list, or is transferred to the 
Standby Reserve or an element of the Ready Reserve other 
than the Selected Reserve after service in the Selected Reserve 
characterized by the Secretary concerned as honorable service; or 
(B) continues on active duty or in the Selected Reserve; 
is entitled to basic educational assistance under this chapter. 
(b)(1)(A) The requirement of two years of service under clauses 
(1)(A)(i) and (1)(B)(i) of subsection (a) of this section is not 
applicable to an individual who is discharged or released, during such 
two years, from active duty in the Armed Forces (i) for a service-
connected disability, (ii) for a medical condition which preexisted such 
service on active duty and which the Secretary determines is not 
service connected, (iii) for hardship, (iv) in the case of an individual 
discharged or released after 20 months of such service, for the 
convenience of the Government, (v) involuntarily for the convenience 
of the Government as a result of a reduction in force, as determined by 
the Secretary of the military department concerned in accordance with 
regulations prescribed by the Secretary of Defense or 
by the Secretary of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, (vi) for 
a physical or mental condition that was not characterized as a dis


Sec. 3012 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 390 

ability, as described in section 3011(a)(1)(A)(ii)(I) of this title, or 

(vii) by reason of a sole survivorship discharge (as that term is 
defined in section 1174(i) of title 10). 
(B) The requirement of four years of service under clauses 
(1)(A)(ii) and (1)(B)(ii) of subsection (a) of this section is not 
applicable to an individual- 
(i) who, during the two years of service described in 
clauses (1)(A)(i) and (1)(B)(i) of subsection (a) of this section, 
was discharged or released from active duty in the Armed 
Forces for a service-connected disability, by reason of a sole 
survivorship discharge (as that term is defined in section 
1174(i) of title 10), for a medical condition which preexisted 
such service on active duty and which the Secretary determines is not 
service connected, or for a physical or mental condition not 
characterized as a disability, as described in section 
3011(a)(1)(A)(ii)(I) of this title, if the individual was obligated, 
at the beginning of such two years of service, to serve such four 
years of service; 
(ii) who, during the four years of service described in 
clauses (1)(A)(ii) and (1)(B)(ii) of subsection (a) of this section, 
is discharged or released from service in the Selected Reserve 
(I) for a service-connected disability, (II) for a medical condition 
which preexisted the individualï¿½s becoming a member of the 
Selected Reserve and which the Secretary determines is not 
service connected, (III) for hardship, (IV) in the case of an 
individual discharged or released after 30 months of such service, 
for the convenience of the Government, (V) involuntarily for 
the convenience of the Government as a result of a reduction 
in force, as determined by the Secretary of the military department 
concerned in accordance with regulations prescribed by 
the Secretary of Defense or by the Secretary of Homeland Security with 
respect to the Coast Guard when it is not operating 
as a service in the Navy, (VI) for a physical or mental condition 
not characterized as a disability, as described in section 
3011(a)(1)(A)(ii)(I) of this title, or (VII) by reason of a sole 
survivorship discharge (as that term is defined in section 1174(i) 
of title 10); or 
(iii) who, before completing the four years of service described in 
clauses (1)(A)(ii) and (1)(B)(ii) of subsection (a) of 
this section, ceases to be a member of the Selected Reserve 
during the period beginning on October 1, 1991, and ending on 
September 30, 1999, by reason of the inactivation of the personï¿½s unit 
of assignment or by reason of involuntarily ceasing 
to be designated as a member of the Selected Reserve pursuant 
to section 10143(a) of title 10. 
(2) After an individual begins service in the Selected Reserve 
within one year after completion of the service described in clause 
(A)(i) or (B)(i) of subsection (a)(1) of this section, the continuity of 
service of such individual as a member of the Selected Reserve 
shall not be considered to be broken- 
(A) by any period of time (not to exceed a maximum period 
prescribed by the Secretary concerned by regulation) during 
which the member is not able to locate a unit of the Selected 

391 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3012 

Reserve of the memberï¿½s Armed Force that the member is eligible to 
join or that has a vacancy; or 

(B) by any other period of time (not to exceed a maximum 
period prescribed by the Secretary concerned by regulation) 
during which the member is not attached to a unit of the Selected 
Reserve that the Secretary concerned, pursuant to regulations, 
considers to be inappropriate to consider for such purpose. 
(c)(1) Except as provided in paragraph (2), the basic pay of any 
individual described in subsection (a)(1)(A) of this section who does 
not make an election under subsection (d)(1) of this section shall 
be reduced by $100 for each of the first 12 months that such 
individual is entitled to such pay. 

(2) In the case of an individual covered by paragraph (1) who 
is a member of the Selected Reserve, the Secretary of Defense shall 
collect from the individual an amount equal to $1,200 not later 
than one year after completion by the individual of the two years 
of service on active duty providing the basis for such entitlement. 
The Secretary of Defense may collect such amount through reductions 
in basic pay in accordance with paragraph (1) or through such 
other method as the Secretary of Defense considers appropriate. 
(3) Any amount by which the basic pay of an individual is reduced 
under this subsection shall revert to the Treasury and shall 
not, for purposes of any Federal law, be considered to have been 
received by or to be within the control of such individual. 
(d)(1) An individual described in subsection (a)(1)(A) of this 
section may make an election not to receive educational assistance 
under this chapter. Any such election shall be made at the time the 
individual initially enters on active duty as a member of the Armed 
Forces. Any individual who makes such an election is not entitled 
to educational assistance under this chapter. 

(2) An individual who after December 31, 1976, receives a commission 
as an officer in the Armed Forces upon graduation from 
the United States Military Academy, the United States Naval 
Academy, the United States Air Force Academy, or the Coast 
Guard Academy is not eligible for educational assistance under this 
section. 
(3) An individual who after December 31, 1976, receives a commission 
as an officer in the Armed Forces upon completion of a program of 
educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the 
individual enters on active duty- 
(A) before October 1, 1996; or 
(B) after September 30, 1996, and while participating in 
such program received more than $3,400 for each year of such 
participation. 
(e)(1) An individual described in subclause (I) or (III) of sub
section (b)(1)(B)(ii) of this section may elect entitlement to basic 
educational assistance under section 3011 of this title, based on an 
obligated period of active duty of two years, in lieu of entitlement 
to assistance under this section. 

(2) An individual who makes the election described in paragraph (1) 
of this subsection shall, for all purposes of this chapter, 
be considered entitled to educational assistance under section 3011 

Sec. 3013 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 392 

of this title and not under this section. Such an election is 
irrevocable. 

(f)(1) Any individual eligible for educational assistance under 
this section who does not make an election under subsection (d)(1) 
may contribute amounts for purposes of receiving an increased 
amount of basic educational assistance as provided for under section 
3015(g) of this title. Such contributions shall be in addition to 
any reductions in the basic pay of such individual under subsection 
(c). 

(2) An individual covered by paragraph (1) may make the contributions 
authorized by that paragraph at any time while on active duty, but not 
more frequently than monthly. 
(3) The total amount of the contributions made by an individual under 
paragraph (1) may not exceed $600. Such contributions shall be made in 
multiples of $20. 
(4) Contributions under this subsection shall be made to the 
Secretary of the military department concerned. That Secretary 
shall deposit any amounts received as contributions under this 
subsection into the Treasury as miscellaneous receipts. 
(g)(1) The Secretary concerned shall inform any member of the 
Armed Forces who has not completed that memberï¿½s initial service 
(as described in paragraph (2)) and who indicates the intent to be 
discharged or released from such service for the convenience of the 
Government of the minimum service requirements for entitlement 
to educational assistance benefits under this chapter. Such information 
shall be provided to the member in a timely manner. 

(2) The initial service referred to in paragraph (1) is the initial 
obligated period of active duty (described in subparagraph (A)(i) or 
(B)(i) of subsection (a)(1)) or the period of service in the Selected 
Reserve (described in subparagraph (A)(ii) or (B)(ii) of subsection 
(a)(1)). 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2555, Sec. 
1412; amended Pub. L. 99-145, title VI, Sec. 674(2), Nov. 8, 1985, 99 
Stat. 665; Pub. 

L. 99-576, title III, Sec. 303(a)(2), 307(a)(2), 321(2), Oct. 28, 1986, 
100 Stat. 3269, 3277; Pub. L. 100-48, Sec. 3(b), June 1, 1987, 101 
Stat. 331; Pub. L. 100-689, title I, Sec. 102(b)(1), 103(b)(1), 104(b), 
105, 111(a)(2)(B), Nov. 18, 1988, 102 Stat. 4162, 4165, 4166, 4171; 
Pub. L. 101-237, title IV, Sec. 409, 423(a)(1), (b)(1)(A), Dec. 18, 
1989, 103 Stat. 2084, 2090, 2092; Pub. L. 101-510, div. A, title V, 
Sec. 562(a)(3), Nov. 5, 1990, 104 Stat. 1574; renumbered Sec. 3012 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 102-484, div. D, title XLIV, Sec. 4419(b), Oct. 23, 1992, 106 
Stat. 2718; Pub. L. 102-568, title III, Sec. 302(a)(2), 303(a)(2), 
Oct. 29, 1992, 106 Stat. 4326, 4327; Pub. L. 103-160, div. A, title V, 
Sec. 561(m), Nov. 30, 1993, 107 Stat. 1668; Pub. L. 103-446, title XII, 
Sec. 1201(f)(2), Nov. 2, 1994, 108 Stat. 4687; Pub. L. 104-106, div. A, 
title XV, Sec. 1501(e)(2)(B), Feb. 10, 1996, 110 Stat. 501; Pub. L. 
104-201, div. A, title V, Sec. 556(b), Sept. 23, 1996, 110 Stat. 2528; 
Pub. L. 105-368, title II, Secs. 203(a), 207(b), Nov. 11, 1998, 112 
Stat. 3326, 3328; Pub. L. 106-117, title VII, Sec. 704, Nov. 30, 1999, 
113 Stat. 1584; Pub. L. 106-419, title I, Secs. 102(b), 103(b), 
105(a)(2), title IV, Sec. 404(a)(6), Nov. 1, 2000, 114 Stat. 1824, 
1826, 1829, 1865; Pub. L. 107-14, Sec. 7(c)(2), June 5, 2001, 115 Stat. 
32; Pub. L. 107-103, title I, Secs. 105(b), 106(a), Dec. 27, 2001, 
115 Stat. 982, 983; Pub. L. 107-296, title XVII, Sec. 1704(d), Nov. 25, 
2002, 116 Stat. 2315; Pub. L. 108-454, title I, Sec. 109(b), Dec. 10, 
2004, 118 Stat. 3604; Pub. L. 109-233, title V, Sec. 503(3), June 15, 
2006, 120 Stat. 416; Pub. L. 110-317, Sec. 
6(c)(2), Aug. 29, 2008, 122 Stat. 3529.) 
ï¿½ 3013. Duration of basic educational assistance 

(a)(1) Subject to section 3695 of this title and except as provided in 
paragraph (2) of this subsection, each individual entitled 


393 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3013 

to basic educational assistance under section 3011 of this title is 
entitled to 36 months of educational assistance benefits under this 
chapter (or the equivalent thereof in part-time educational assistance). 

(2) Subject to section 3695 of this title and subsection (d) of 
this section, in the case of an individual described in section 
3011(a)(1)(A)(ii)(I) or (III) of this title who is not also described in 
section 3011(a)(1)(A)(i) of this title or an individual described in 
section 3011(a)(1)(B)(ii)(I) or (III) of this title who is not also 
described in section 3011(a)(1)(B)(i) of this title, the individual is 
entitled to one month of educational assistance benefits under this 
chapter for each month of continuous active duty served by such 
individual after June 30, 1985, as part of the obligated period of 
active duty on which such entitlement is based in the case of an 
individual described in section 3011(a)(1)(A)(ii)(I) or (III) of this 
title, or in the case of an individual described in section 
3011(a)(1)(B)(ii)(I) or (III) of this title, after June 30, 1985. 
(b) Subject to section 3695 of this title and subsection (d) of 
this section, each individual entitled to basic educational assistance 
under section 3012 of this title is entitled to (1) one month of 
educational assistance benefits under this chapter for each month of 
continuous active duty served by such individual after June 30, 
1985, as part of the obligated period of active duty on which such 
entitlement is based in the case of an individual described in section 
3012(a)(1)(A) of this title, or in the case of an individual described 
in section 3012(a)(1)(B) of this title, after June 30, 1985, 
and (2) one month of educational assistance benefits under this 
chapter for each four months served by such individual in the Selected 
Reserve after the applicable date specified in clause (1) of 
this subsection (other than any month in which the individual 
served on active duty). 
(c)(1) Subject to section 3695 of this title and except as provided in 
paragraphs (2) and (3) of this subsection, each individual 
entitled to basic educational assistance under section 3018 of this 
title is entitled to 36 months of educational assistance under this 
chapter (or the equivalent thereof in part-time educational assistance). 

(2) Subject to section 3695 of this title, an individual described 
in clause (B) or (C) of section 3018(b)(3) of this title whose discharge 
or release from active duty prevents the reduction of the 
basic pay of such individual by $1,200 is entitled to the number of 
months of assistance under this chapter that is equal to the lesser 
of- 
(A) 36 multiplied by a fraction the numerator of which is 
the amount by which the basic pay of the individual has been 
reduced under section 3018(c) and the denominator of which is 
$1,200; or 
(B) the number of months the individual has served on 
continuous active duty after June 30, 1985. 
(3) Subject to section 3695 of this title and subsection (d) of 
this section, an individual described in clause (B) or (C)(ii) of
section 3018(b)(3) of this title (other than an individual described in 
paragraph (2) of this subsection) is entitled to the number of 
months of educational assistance under this chapter that is equal 

Sec. 3013 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 394 

to the number of months the individual has served on continuous 
active duty after June 30, 1985. 

(d) Subject to section 3695 of this title, each individual entitled 
to educational benefits under section 3018A, 3018B, or 3018C of 
this title is entitled to the lesser of- 
(1) 36 months of educational assistance under this chapter 
(or the equivalent thereof in part-time educational assistance); 
or 
(2) the number of months of such educational assistance 
(or such equivalent thereof) that is equal to the number of 
months served by such individual on active duty. 
(e) No individual may receive basic educational assistance benefits 
under this chapter for a period in excess of 36 months (or the 
equivalent thereof in part-time educational assistance). 
(f)(1) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of an educational assistance 
allowance described in paragraph (2) shall not- 

(A) be charged against any entitlement of any individual 
under this chapter; or 
(B) be counted toward the aggregate period for which section 3695 of 
this title limits an individualï¿½s receipt of assistance. 
(2) Subject to paragraph (3), the payment of the educational assistance 
allowance referred to in paragraph (1) is the payment of 
such an allowance to an individual for pursuit of a course or 
courses under this chapter if the Secretary finds that the individual- 
(A) in the case of a person not serving on active duty, had 
to discontinue such course pursuit as a result of being ordered 
to serve on active duty under section 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304 of title 10; or 
(B) in the case of a person serving on active duty, had to 
discontinue such course pursuit as a result of being ordered to 
a new duty location or assignment or to perform an increased 
amount of work; and 
(C) failed to receive credit or lost training time toward 
completion of the individualï¿½s approved education, professional, 
or vocational objective as a result of having to discontinue, as 
described in subparagraph (A) or (B), his or her course pursuit. 
(3) The period for which, by reason of this subsection, an educational 
assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 
of this title shall not exceed the portion of the period of enrollment 
in the course or courses for which the individual failed to receive 
credit or with respect to which the individual lost training time, as 
determined under paragraph (2)(C) of this subsection. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2557, Sec. 1413; amended Pub. L. 99-576, title III, Sec. 321(3), 
Oct. 28, 1986, 100 Stat. 3277; Pub. L. 100-689, title I, Sec. 102(b)(2), 
103(b)(2), 111(a)(4), Nov. 18, 1988, 102 Stat. 4163, 4165, 4171; Pub. 
L. 101-237, title IV, Sec. 423(a)(2), Dec. 18, 1989, 103 Stat. 2091; 
Pub. L. 101-510, div. A, title V, Sec. 561(b)(1), Nov. 5, 1990, 104 
Stat. 1573; renumbered Sec. 3013 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-127, Sec. 2(a), Oct. 
10, 1991, 105 Stat. 619; Pub. L. 102- 484, div. D, title XLIV, Sec. 
4404(b)(2), Oct. 23, 1992, 106 Stat. 2706; Pub. L. 104- 275, title I, 
Sec. 106(b)(2), Oct. 9, 1996, 110 Stat. 3329; Pub. L. 106-419, 
title I, Sec. 


395 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3014A 

103(c), Nov. 1, 2000, 114 Stat. 1826; Pub. L. 107-103, title I, Sec. 
103(a), (d), Dec. 
27, 2001, 115 Stat. 979.) 

ï¿½ 3014. Payment of basic educational assistance 

(a) The Secretary shall pay to each individual entitled to basic 
educational assistance who is pursuing an approved program of 
education a basic educational assistance allowance to help meet, in 
part, the expenses of such individualï¿½s subsistence, tuition, fees, 
supplies, books, equipment, and other educational costs. 
(b)(1) In the case of an individual entitled to basic educational 
assistance who is pursuing education or training described in 
subsection (a) or (c) of section 2007 of title 10, the Secretary shall, 
at 
the election of the individual, pay the individual a basic educational 
assistance allowance to meet all or a portion of the charges 
of the educational institution for the education or training that are 
not paid by the Secretary of the military department concerned 
under such subsection. 

(2)(A) The amount of the basic educational assistance allowance payable 
to an individual under this subsection for a month 
shall be the amount of the basic educational assistance allowance 
to which the individual would be entitled for the month under section 
3015 of this title . 

(B) The maximum number of months for which an individual 
may be paid a basic educational assistance allowance under paragraph 
(1) is 36. 
(C) The number of months of entitlement charged under this 
chapter in the case of an individual who has been paid a basic 
educational assistance allowance under this subsection shall be equal 
to the number (including any fraction) determined by dividing the 
total amount of such educational assistance allowance paid the 
individual by the full-time monthly institutional rate of educational 
assistance which such individual would otherwise be paid under 
subsection (a)(1), (b)(1), (c)(1), (d)(1), or (e)(1) of section 3015 
of this 
title, as the case may be. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2557, Sec. 1414; amended Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3014, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
106-398, Sec. 1[[div. A], title XVI, Sec. 1602(b)(2)], Oct. 30, 2000, 
114 Stat. 1654, 1654A-359; Pub. L. 107-14, Sec. 7(b)(1), June 5, 
2001, 115 Stat. 31.) 

ï¿½ 3014A. Accelerated payment of basic educational assist

ance for education leading to employment in high 

technology occupation in high technology industry 

(a) An individual described in subsection (b) who is entitled to 
basic educational assistance under this subchapter may elect to 
receive an accelerated payment of the basic educational assistance 
allowance otherwise payable to the individual under section 3015 of 
this title. 
(b) An individual described in this subsection is an individual 
who is- 
(1) enrolled in an approved program of education that 
leads to employment in a high technology occupation in a high 
technology industry (as determined pursuant to regulations 
prescribed by the Secretary); and 

Sec. 3014A CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 396 

(2) charged tuition and fees for the program of education 
that, when divided by the number of months (and fractions 
thereof) in the enrollment period, exceeds the amount equal to 
200 percent of the monthly rate of basic educational assistance 
allowance otherwise payable to the individual under section 
3015 of this title. 
(c)(1) The amount of the accelerated payment of basic edu
cational assistance made to an individual making an election under 
subsection (a) for a program of education shall be the lesser of- 

(A) the amount equal to 60 percent of the established 
charges for the program of education; or 
(B) the aggregate amount of basic educational assistance 
to which the individual remains entitled under this chapter at 
the time of the payment. 
(2) In this subsection, the term ï¿½ï¿½established chargesï¿½ï¿½, in the 
case of a program of education, means the actual charges (as 
determined pursuant to regulations prescribed by the Secretary) for 
tuition and fees which similarly circumstanced nonveterans enrolled 
in the program of education would be required to pay. Established 
charges shall be determined on the following basis: 
(A) In the case of an individual enrolled in a program of 
education offered on a term, quarter, or semester basis, the tuition 
and fees charged the individual for the term, quarter, or 
semester. 
(B) In the case of an individual enrolled in a program of 
education not offered on a term, quarter, or semester basis, the 
tuition and fees charged the individual for the entire program 
of education. 
(3) The educational institution providing the program of education for 
which an accelerated payment of basic educational assistance allowance 
is elected by an individual under subsection (a) 
shall certify to the Secretary the amount of the established charges 
for the program of education. 
(d) An accelerated payment of basic educational assistance 
made to an individual under this section for a program of education 
shall be made not later than the last day of the month immediately 
following the month in which the Secretary receives a certification 
from the educational institution regarding- 
(1) the individualï¿½s enrollment in and pursuit of the program of 
education; and 
(2) the amount of the established charges for the program 
of education. 
(e)(1) Except as provided in paragraph (2), for each accelerated 
payment of basic educational assistance made to an individual 
under this section, the individualï¿½s entitlement to basic educational 
assistance under this chapter shall be charged the number of 
months (and any fraction thereof) determined by dividing the 
amount of the accelerated payment by the full-time monthly rate 
of basic educational assistance allowance otherwise payable to the 
individual under section 3015 of this title as of the beginning date 
of the enrollment period for the program of education for which the 
accelerated payment is made. 

(2) If the monthly rate of basic educational assistance allowance 
otherwise payable to an individual under section 3015 of this 

397 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3015 

title increases during the enrollment period of a program of education 
for which an accelerated payment of basic educational assistance is 
made under this section, the charge to the individualï¿½s entitlement to 
basic educational assistance under this chapter shall be 
determined by prorating the entitlement chargeable, in the matter 
provided for under paragraph (1), for the periods covered by the 
initial rate and increased rate, respectively, in accordance with 
regulations prescribed by the Secretary. 

(f) The Secretary may not make an accelerated payment under 
this section for a program of education to an individual who has 
received an advance payment under section 3680(d) of this title for 
the same enrollment period. 
(g) The Secretary shall prescribe regulations to carry out this 
section. The regulations shall include requirements, conditions, and 
methods for the request, issuance, delivery, certification of receipt 
and use, and recovery of overpayment of an accelerated payment 
under this section. 
(Added Pub. L. 107-103, title I, Sec. 104(a)(1), Dec. 27, 2001, 115
Stat. 980; amended Pub. L. 107-330, title III, Sec. 308(b)(1), (2)(A), 
Dec. 6, 2002, 116 Stat. 2827.) 

ï¿½ 3015. Amount of basic educational assistance 

(a) The amount of payment of educational assistance under 
this chapter is subject to section 3032 of this title. Except as 
otherwise provided in this section, in the case of an individual 
entitled 
to an educational assistance allowance under this chapter whose 
obligated period of active duty on which such entitlement is based 
is three years, a basic educational assistance allowance under this 
subchapter shall be paid- 
(1) for an approved program of education pursued on a 
full-time basis, at the monthly rate of- 
(A) for months occurring during the period beginning 
on August 1, 2008, and ending on the last day of fiscal 
year 2009, $1,321; and 
(B) for months occurring during a subsequent fiscal 
year, the amount for months occurring during the previous 
fiscal year increased under subsection (h); or 
(2) at an appropriately reduced rate, as determined under 
regulations which the Secretary shall prescribe, for an approved 
program of education pursued on less than a full-time 
basis. 
(b) In the case of an individual entitled to an educational assistance 
allowance under section 3011 or 3018 of this title whose 
obligated period of active duty on which such entitlement is based 
is two years, a basic educational assistance allowance under this 
chapter shall (except as provided in the succeeding subsections of 
this section)be paid- 
(1) for an approved program of education pursued on a 
full-time basis, at the monthly rate of- 
(A) for months occurring during the period beginning 
on August 1, 2008, and ending on the last day of fiscal 
year 2009, $1,073; and 
(B) for months occurring during a subsequent fiscal 
year, the amount for months occurring during the previous 
fiscal year increased under subsection (h); or 

Sec. 3015 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 398 

(2) at an appropriately reduced rate, as determined under 
regulations which the Secretary shall prescribe, for an approved 
program of education pursued on less than a full-time 
basis. 
(c)(1) The amount of basic educational allowance payable under 
this chapter to an individual referred to in paragraph (2) of this 
subsection is the amount determined under subsection (a) of this 
section. 

(2) Paragraph (1) of this subsection applies to an individual 
entitled to an educational assistance allowance under section 3011 of 
this title- 
(A) whose obligated period of active duty on which such 
entitlement is based is less than three years; 
(B) who, beginning on the date of the commencement of 
such obligated period of active duty, serves a continuous period 
of active duty of not less than three years; and 
(C) who, after the completion of that continuous period of 
active duty, meets one of the conditions set forth in subsection 
(a)(3) of such section 3011. 
(d)(1) In the case of an individual who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty in 
which there is a critical shortage of personnel or for which it is 
difficult to recruit, the Secretary concerned, pursuant to regulations 
to be prescribed by the Secretary of Defense, may, at the time the 
individual first becomes a member of the Armed Forces, increase 
the rate of the basic educational assistance allowance applicable to 
such individual to such rate in excess of the rate prescribed under 
subsections (a), (b), and (c) of this section as the Secretary of 
Defense considers appropriate, but the amount of any such increase 
may not exceed $950 per month. 

(2) In the case of an individual who after October 7, 1997, receives 
an enlistment bonus under section 308a or 308f of title 37, 
receipt of that bonus does not affect the eligibility of that 
individual for an increase under paragraph (1) in the rate of the basic 
educational assistance allowance applicable to that individual, and 
the Secretary concerned may provide such an increase for that 
individual (and enter into an agreement with that individual that the 
United States agrees to make payments pursuant to such an increase) 
without regard to any provision of law (enacted before, on, 
or after the date of the enactment of this paragraph) that limits the 
authority to make such payments. 
(e)(1)(A) Except as provided in subparagraph (B) of this paragraph and 
subject to paragraph (2) of this subsection, in the case 
of an individual who on December 31, 1989, was entitled to educational 
assistance under chapter 34 of this title, the rate of the 
basic educational assistance allowance applicable to such individual 
under this chapter shall be increased by the amount equal to one-
half of the educational assistance allowance that would be applicable 
to such individual under such chapter 34 (as of the time the 
assistance under this chapter is provided and based on the rates 
in effect on December 31, 1989) if such chapter were in effect. 

(B) Notwithstanding subparagraph (A) of this paragraph, in 
the case of an individual described in that subparagraph who is 
pursuing a cooperative program on or after October 9, 1996, the 

399 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3015 

rate of the basic educational assistance allowance applicable to 
such individual under this chapter shall be increased by the 
amount equal to one-half of the educational assistance allowance 
that would be applicable to such individual for pursuit of full-time 
institutional training under chapter 34 (as of the time the assistance 
under this chapter is provided and based on the rates in effect 
on December 31, 1989) if such chapter were in effect. 

(2) The number of months for which the rate of the basic educational 
assistance allowance applicable to an individual is increased under 
paragraph (1) of this subsection may not exceed the 
number of months of entitlement to educational assistance under 
chapter 34 of this title that the individual had remaining on December 
31, 1989. 
(f) In the case of an individual for whom the Secretary of Defense 
made contributions under section 3222(c) of this title and 
who is entitled to educational assistance under section 3018A, 
3018B, or 3018C of this chapter, the Secretary shall increase the 
rate of the basic educational assistance allowance applicable to 
such individual in excess of the rate provided under subsection (a) 
of this section in a manner consistent with, as determined by the 
Secretary of Defense, the agreement entered into with such individual 
pursuant to the rules and regulations issued by the Secretary of 
Defense under section 3222(c) of this title. 
(g) In the case of an individual who has made contributions authorized 
by section 3011(e) or 3012(f) of this title, effective as of the 
first day of the enrollment period following receipt of such 
contributions from such individual by the Secretary concerned, the 
monthly 
amount of basic educational assistance allowance applicable to such 
individual under subsection (a), (b), or (c) shall be the monthly rate 
otherwise provided for under the applicable subsection increased 
by- 
(1) an amount equal to $5 for each $20 contributed by such 
individual under section 3011(e) or 3012(f) of this title, as the 
case may be, for an approved program of education pursued on 
a full-time basis; or 
(2) an appropriately reduced amount based on the amount 
so contributed, as determined under regulations which the Secretary 
shall prescribe, for an approved program of education 
pursued on less than a full-time basis. 
(h)(1) With respect to any fiscal year, the Secretary shall pro
vide a percentage increase in the rates payable under subsections 
(a)(1) and (b)(1) equal to the percentage by which- 

(A) the average cost of undergraduate tuition in the United 
States, as determined by the National Center for Education 
Statistics, for the last academic year preceding the beginning 
of the fiscal year for which the increase is made, exceeds 
(B) the average cost of undergraduate tuition in the United 
States, as so determined, for the academic year preceding the 
academic year described in subparagraph (A). 
(2) Any increase under paragraph (1) in a rate with respect to 
a fiscal year after fiscal year 2004 and before fiscal year 2014 shall 
be rounded down to the next lower whole dollar amount. Any such 
increase with respect to a fiscal year after fiscal year 2013 shall be 
rounded to the nearest whole dollar amount. 

Sec. 3016 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 400 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2557, Sec. 1415; amended Pub. L. 100-689, title I, Sec. 
103(b)(3), 111(a)(5)(A), Nov. 18, 1988, 102 Stat. 4165, 4171; Pub. L. 
101-189, div. A, title VI, Sec. 641, Nov. 29, 1989, 103 Stat. 1456; Pub. 
L. 101-237, title IV, Sec. 423(b)(1)(A), (5), Dec. 18, 1989, 103 Stat. 
2092; Pub. L. 101-510, div. A, title V, Sec. 561(b)(2), Nov. 5, 1990, 
104 Stat. 1573; Pub. L. 102-25, title III, Sec. 337(a), Apr. 6, 1991, 
105 Stat. 90; Pub. L. 102-54, Sec. 14(c)(1), June 13, 1991, 105 Stat. 
284; renumbered Sec. 3015 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, 
Sec. 301(a), (c), 307(a), (b), Oct. 29, 1992, 106 Stat. 4325, 4326, 
4328, 4329; Pub. L. 103-66, title XII, Sec. 12009(a), (d)(1), (2), 
Aug. 10, 1993, 107 Stat. 415, 416; Pub. L. 104-275, title I, Sec. 
106(b)(3), Oct. 9, 1996, 110 Stat. 3329; Pub. L. 105-114, title IV, 
Sec. 401(b), Nov. 21, 1997, 111 Stat. 2293; Pub. L. 105-178, title 
VIII, Sec. 8203(a)(1)-(3), June 9, 1998, 112 Stat. 493; Pub. L. 
105-261, div. A, title V, Sec. 565(a), title VI, Sec. 656(a), Oct. 
17, 1998, 112 Stat. 2029, 2053; Pub. L. 106-398, Sec. 1[title XVI, 
Sec. 1602(b)(3)], Oct. 30, 2000, 114 Stat. 1654, 1654A-359; Pub. L. 
106-419, title I, Secs. 101(a), 103(d), 105(b), Nov. 1, 2000, 114 
Stat. 1824, 1826, 1829; Pub. L. 107-14, Sec. 7(b)(2)(A), (c)(3), 
June 5, 2001, 115 Stat. 31, 32; Pub. L. 107-103, title I, Sec. 
101(a), Dec. 27, 2001, 115 Stat. 977; Pub. L. 108-183, title III, 
Sec. 304(a), Dec. 16, 2003, 117 Stat. 2659; Pub. L. 110-252, 
title V, Sec. 5004(a)- 
(c), June 30, 2008, 122 Stat. 2379.) 
ï¿½ 3016. Inservice enrollment in a program of education 

(a) A member of the Armed Forces who- 
(1) first becomes a member or first enters on active duty 
as a member of the Armed Forces after June 30, 1985, and 
does not make an election under section 3011(c)(1) or section 
3012(d)(1); 
(2) completes at least two years of service on active duty 
after such date; 
(3) after such service, continues on active duty or in the 
Selected Reserve without a break in service (except as described in 
section 3012(b)(2) of this title); and 
(4) but for section 3011(a)(1)(A)(i)(I) or 3012(a)(1)(A)(ii) of 
this title would be eligible for basic educational assistance, 
may receive educational assistance under this chapter for enrollment 
in an approved program of education while continuing to perform the 
duty described in section 3011(a)(1)(A)(i)(I) or 
3012(a)(1)(A)(ii) of this title. 

(b) A member of the Armed Forces who- 
(1) as of December 31, 1989, is eligible for educational assistance 
benefits under chapter 34 of this title; 
(2) after June 30, 1985, has served the two years required 
by section 3012(a)(1)(B)(i); and 
(3) but for section 3012(a)(1)(B)(ii) of this title would be eli
gible for basic educational assistance, 
may, after December 31, 1989, receive educational assistance under 
this chapter for enrollment in an approved program of education 
while continuing to perform the duty described in section 
3012(a)(1)(B)(ii) of this title. 

(c) A member of the Armed Forces who- 
(1) completes at least two years of service on active duty 
after June 30, 1985; 
(2) after such service continues on active duty without a 
break in service; and 
(3) but for section 3018(b)(3)(A) of this title would be entitled to 
basic educational assistance under this chapter, 

401 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3017 

may receive such assistance for enrollment in an approved program 
of education while continuing to perform the service described in 
section 3018(b)(2) of this title. 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2558, Sec. 1416; amended Pub. L. 99-576, title III, Sec. 321(4), 
Oct. 28, 1986, 100 Stat. 3278; Pub. L. 100-689, title I, Sec. 
103(b)(4), Nov. 18, 1988, 102 Stat. 4165; renumbered Sec. 3016 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ 3017. Death benefit 

(a)(1) In the event of the service-connected death of any individual- 

(A) who- 
(i) is entitled to basic educational assistance under 
this chapter; or 
(ii) is on active duty in the Armed Forces and but for 
clause (1)(A)(i) or clause (2) of section 3011(a) or clause 
(1)(A)(i) or (ii) or clause (2) of section 3012(a) of this title 
would be eligible for such basic educational assistance; and 
(B) who dies while on active duty or within one year after 
discharge or release from active duty, 
the Secretary shall make a payment, subject to paragraph (2)(B) of 
this subsection, in the amount described in subsection (b) of this 
section to the person or persons described in paragraph (2)(A) of 
this subsection. 

(2)(A) The payment referred to in paragraph (1) of this subsection 
shall be made to the person or persons first listed below 
who is surviving on the date of such individualï¿½s death: 

(i) The beneficiary or beneficiaries designated by such individual 
under the individualï¿½s Servicemembersï¿½ Group Life Insurance policy. 
(ii) The surviving spouse of the individual. 
(iii) The surviving child or children of the individual, in 
equal shares. 
(iv) The surviving parent or parents of the individual, in 
equal shares. 
(B) If no such person survives such individual, no payment 
shall be made under this section. 
(b) The amount of any payment made under this section shall 
be equal to- 
(1) the total of- 
(A) the amount reduced from the individualï¿½s basic pay 
under section 3011(b), 3012(c), 3018(c), 3018A(b), 3018B(b), 
3018C(b), or 3018C(e) of this title; 
(B) the amount reduced from the individualï¿½s retired 
pay under section 3018C(e) of this title; 
(C) the amount collected from the individual by the 
Secretary under section 3018B(b), 3018C(b), or 3018C(e) of 
this title; and 
(D) the amount of any contributions made by the individual under 
section 3011(e) or 3012(f) of this title, less (2) 
the total of- 

Sec. 3018 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 402 

(A) the amount of educational assistance that has been 
paid to the individual under this chapter before the payment is made 
under this section; and 
(B) the amount of accrued benefits paid or payable 
with respect to such individual in connection with this 
chapter. 
(c) A payment under this section shall be considered to be a 
benefit under this title and, for purposes of section 3035(b)(1), it 
shall be considered to be an entitlement earned under this subchapter. 
(Added Pub. L. 100-689, title I, Sec. 101(a), Nov. 18, 1988, 102 Stat. 
4161, Sec. 
1417; amended Pub. L. 101-237, title IV, Sec. 423(a)(3), (b)(1)(A), 
Dec. 18, 1989, 103 
Stat. 2091, 2092; renumbered Sec. 3017 and amended Pub. L. 102-83, 
Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, 
Sec. 308, Oct. 29, 1992, 
106 Stat. 4329; Pub. L. 104-275, title IV, Sec. 405(c)(2), Oct. 9, 
1996, 110 Stat. 3340; 
Pub. L. 106-419, title I, Sec. 102(a)(2), Nov. 1, 2000, 114 Stat. 
1824; Pub. L. 107- 
14, Sec. 7(d)(1), June 5, 2001, 115 Stat. 33; ;Pub. L. 109-233, 
title V, Sec. 503(4), 
June 15, 2006, 120 Stat. 416.) 

ï¿½ 3018. Opportunity for certain active-duty personnel to 
withdraw election not to enroll 

(a) Notwithstanding any other provision of this chapter, during 
the period beginning December 1, 1988, and ending June 30, 1989 
(hereinafter in this section referred to as the ï¿½ï¿½open periodï¿½ï¿½), an 
individual who- 
(1) first became a member of the Armed Forces or first entered on 
active duty as a member of the Armed Forces during 
the period beginning July 1, 1985, and ending June 30, 1988; 
(2) has continuously served on active duty without a break 
in service since the date the individual first became such a 
member or first entered on active duty as such a member; and 
(3) is serving on active duty during the open period, 
shall have the opportunity, in accordance with this section and on 
such form as the Secretary of Defense shall prescribe, to withdraw 
an election made under section 3011(c)(1) or 3012(d)(1) of this title 
not to receive educational assistance under this chapter. 
(b) An individual described in clauses (1) through (3) of subsection 
(a) of this section who made an election under section 
3011(c)(1) or 3012(d)(1) of this title and who- 
(1) while serving on active duty during the open period, 
makes a withdrawal of such an election; 
(2) continues to serve the period of service which, at the 
beginning of the open period, such individual was obligated to 
serve; 
(3)(A) serves the obligated period of service described in 
clause (2) of this subsection; 

(B) before completing such obligated period of service, is 
discharged or released from active duty for (i) a service-connected 
disability, (ii) a medical condition which preexisted such 
service and which the Secretary determines is not service connected, 
(iii) hardship, or (iv) a physical or mental condition 
that was not characterized as a disability and did not result 
from the individualï¿½s own willful misconduct but did interfere 
with the individualï¿½s performance of duty, as determined by 
the Secretary of each military department in accordance with 

403 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3018A 

regulations prescribed by the Secretary of Defense (or by the 
Secretary of Homeland Security with respect to the Coast 
Guard when it is not operating as a service of the Navy); or 

(C) before completing such obligated period of service, is (i) 
discharged or released from active duty for the convenience of 
the Government after completing not less than 20 months of 
such period of service, if such period was less than three years, 
or 30 months, if such period was at least three years, or (ii) 
involuntarily discharged or released from active duty for the 
convenience of the Government as a result of a reduction in 
force, as determined by the Secretary concerned in accordance 
with regulations prescribed by the Secretary of Defense; 
(4) before applying for benefits under this section- 
(A) completes the requirements of a secondary school 
diploma (or equivalency certificate); or 
(B) successfully completes (or otherwise receives academic credit for) 
the equivalent of 12 semester hours in a 
program of education leading to a standard college degree; 
and 
(5) upon completion of such obligated period of service- 
(A) is discharged from service with an honorable discharge, is placed 
on the retired list, is transferred to the 
Fleet Reserve or Fleet Marine Corps Reserve, or is placed 
on the temporary disability retired list; 
(B) continues on active duty; or 
(C) is released from active duty for further service in 
a reserve component of the Armed Forces after service on 
active duty characterized by the Secretary concerned as 
honorable service, 
is entitled to basic educational assistance under this chapter. 

(c) The basic pay of an individual withdrawing, under subsection 
(b)(1) of this section, an election under section 3011(c)(1) or 
3012(d)(1) of this title shall be reduced by- 
(1) $1,200; or 
(2) in the case of an individual described in clause (B) or 
(C) of subsection (b)(3) of this section whose discharge or release 
from active duty prevents the reduction of the basic pay 
of such individual by $1,200, an amount less than $1,200. 
(d) A withdrawal under subsection (b)(1) of this section is 
irrevocable. 
(Added Pub. L. 100-689, title I, Sec. 103(a), Nov. 18, 1988, 102
Stat. 4164, Sec. 
1418; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), (4)(A), 
Dec. 18, 1989, 103 
Stat. 2092; Pub. L. 102-16, Sec. 10(a)(2), Mar. 22, 1991, 105 Stat. 5
5; renumbered 
Sec. 3018 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; 
Pub. L. 102-86, title V, Sec. 506(b)(2), Aug. 14, 1991, 105 Stat. 426; 
Pub. L. 102- 
568, title III, Sec. 309(a), Oct. 29, 1992, 106 Stat. 4329; Pub. L. 
105-368, title II, 
Sec. 203(a), Nov. 11, 1998, 112 Stat. 3326; Pub. L. 106-419, title I, 
Sec. 102(c), Nov. 
1, 2000, 114 Stat. 1825; Pub. L. 107-296, title XVII, Sec. 1704(d), 
Nov. 25, 2002, 
116 Stat. 2315.) 

ï¿½ 3018A. Opportunity for certain active-duty personnel to 
enroll before being involuntarily separated from 
service 

(a) Notwithstanding any other provision of law, an individual 
who- 

Sec. 3018A CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 404 

(1) after February 2, 1991, is involuntarily separated (as 
such term is defined in section 1141 of title 10) with an honorable 
discharge; 
(2) before applying for benefits under this section, has completed the 
requirements of a secondary school diploma (or 
equivalency certificate) or has successfully completed (or otherwise 
received academic credit for) the equivalent of 12 semester hours in a 
program of education leading to a standard college degree; 
(3) in the case of any individual who has made an election 
under section 3011(c)(1) or 3012(d)(1) of this title, withdraws 
such election before such separation pursuant to procedures 
which the Secretary of each military department shall provide 
in accordance with regulations prescribed by the Secretary of 
Defense for the purpose of carrying out this section or which 
the Secretary of Homeland Security shall provide for such purpose with 
respect to the Coast Guard when it is not operating 
as a service in the Navy; 
(4) in the case of any person enrolled in the educational 
benefits program provided by chapter 32 of this title makes an 
irrevocable election, pursuant to procedures referred to in 
paragraph (3), before such separation to receive benefits under 
this section in lieu of benefits under such chapter 32; and 
(5) before such separation elects to receive assistance 
under this section pursuant to procedures referred to in paragraph (3), 
is entitled to basic educational assistance under this chapter. 

(b) The basic pay of an individual described in subsection (a) 
shall be reduced by $1,200. 
(c) A withdrawal referred to in subsection (a)(3) is irrevocable. 
(d)(1) Except as provided in paragraph (3), an individual who 
is enrolled in the educational benefits program provided by chapter 
32 of this title and who makes the election described in subsection 
(a)(4) shall be disenrolled from such chapter 32 program as of the 
date of such election. 

(2) For each individual who is disenrolled from such program, 
the Secretary shall refund- 
(A) as provided in section 3223(b) of this title, to the individual the 
unused contributions made by the individual to the 
Post-Vietnam Era Veterans Education Account established 
pursuant to section 3222(a) of this title; and 
(B) to the Secretary of Defense the unused contributions 
(other than contributions made under section 3222(c) of this 
title) made by such Secretary to the Account on behalf of such 
individual. 
(3) Any contribution made by the Secretary of Defense to the 
Post-Vietnam Era Veterans Education Account pursuant to subsection (c) 
of section 3222 of this title on behalf of any individual 
referred to in paragraph (1) shall remain in such Account to make 
payments of benefits to such individual under section 3015(f) of 
this title. 
(Added Pub. L. 101-510, div. A, title V, Sec. 561(a)(1), Nov. 5, 1990, 
104 Stat. 1571, 
Sec. 1418A; amended Pub. L. 102-25, title VII, Sec. 705(c)(1), Apr. 6, 
1991, 105 Stat. 
120; renumbered Sec. 3018A and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 


405 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3018B 

1991, 105 Stat. 406; Pub. L. 103-446, title XII, Sec. 1201(d)(4), 
(i)(4), Nov. 2, 1994, 
108 Stat. 4684, 4688; Pub. L. 105-368, title II, Sec. 203(a), Nov. 11, 
1998, 112 Stat. 
3326; Pub. L. 107-296, title XVII, Sec. 1704(d), Nov. 25, 2002, 116 
Stat. 2315; ;Pub.

L. 109-233, title V, Sec. 503(5), June 15, 2006, 120 Stat. 416.) 
ï¿½ 3018B. Opportunity for certain persons to enroll 

(a) Notwithstanding any other provision of law- 
(1) the Secretary of Defense shall, subject to the availability of 
appropriations, allow an individual who- 
(A) is separated from the active military, naval, or air 
service with an honorable discharge and receives voluntary 
separation incentives under section 1174a or 1175 of title 
10; 
(B) before applying for benefits under this section, has 
completed the requirements of a secondary school diploma 
(or equivalency certificate) or has successfully completed 
(or otherwise received academic credit for) the equivalent 
of 12 semester hours in a program of education leading to 
a standard college degree; 
(C) in the case of any individual who has made an 
election under section 3011(c)(1) or 3012(d)(1) of this title, 
withdraws such election before such separation pursuant 
to procedures which the Secretary of each military department shall 
provide in accordance with regulations prescribed by the Secretary of 
Defense for the purpose of carrying out this section or which the 
Secretary of Homeland 
Security shall provide for such purpose with respect to the 
Coast Guard when it is not operating as service in the 
Navy; 
(D) in the case of any person enrolled in the educational benefits 
program provided by chapter 32 of this 
title makes an irrevocable election, pursuant to procedures 
referred to in subparagraph (C) of this paragraph, before 
such separation to receive benefits under this section in 
lieu of benefits under such chapter 32; and 
(E) before such separation elects to receive assistance 
under this section pursuant to procedures referred to in 
subparagraph (C) of this paragraph; or 
(2) the Secretary, in consultation with the Secretary of Defense, 
shall, subject to the availability of appropriations, allow 
an individual who- 
(A) separated before October 23, 1992, from the active 
military, naval, or air service with an honorable discharge 
and received or is receiving voluntary separation incentives under 
section 1174a or 1175 of title 10; 
(B) before applying for benefits under this section, has 
completed the requirements of a secondary school diploma 
(or equivalency certificate) or has successfully completed 
(or otherwise received academic credit for) the equivalent 
of 12 semester hours in a program of education leading to 
a standard college degree; 
(C) in the case of any individual who has made an 
election under section 3011(c)(1) or 3012(d)(1) of this title, 
withdraws such election before making an election under 
this paragraph pursuant to procedures which the Sec

Sec. 3018B CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 406 

retary shall provide, in consultation with the Secretary of 
Defense and the Secretary of Homeland Security with respect to the 
Coast Guard when it is not operating as service in the Navy, which
shall be similar to the regulations 
prescribed under paragraph (1)(C) of this subsection; 

(D) in the case of any person enrolled in the educational benefits 
program provided by chapter 32 of this 
title makes an irrevocable election, pursuant to procedures 
referred to in subparagraph (C) of this paragraph, before 
making an election under this paragraph to receive benefits under this 
section in lieu of benefits under such chapter 32; and 
(E) before October 23, 1993, elects to receive assistance under this 
section pursuant to procedures referred to 
in subparagraph (C) of this paragraph, 
to elect to become entitled to basic education assistance under this 
chapter. 

(b)(1) The basic pay or voluntary separation incentives of an 
individual who makes an election under subsection (a)(1) to become 
entitled to basic education assistance under this chapter shall be 
reduced by $1,200. 

(2) The Secretary shall collect $1,200 from an individual who 
makes an election under subsection (a)(2) to become entitled to 
basic education assistance under this chapter, which shall be paid 
into the Treasury of the United States as miscellaneous receipts. 
(c) A withdrawal referred to in subsection (a)(1)(C) or (a)(2)(C) 
of this section is irrevocable. 
(d)(1) Except as provided in paragraph (3) of this subsection, 
an individual who is enrolled in the educational benefits program 
provided by chapter 32 of this title and who makes the election 
described in subsection (a)(1)(D) or (a)(2)(D) of this section shall be 
disenrolled from such chapter 32 program as of the date of such 
election. 

(2) For each individual who is disenrolled from such program, 
the Secretary shall refund- 
(A) as provided in section 3223(b) of this title, to the individual 
the unused contributions made by the individual to the 
Post-Vietnam Era Veterans Education Account established 
pursuant to section 3222(a) of this title; and 
(B) to the Secretary of Defense the unused contributions 
(other than contributions made under section 3222(c) of this 
title) made by such Secretary to the Account on behalf of such 
individual. 
(3) Any contribution made by the Secretary of Defense to the 
Post-Vietnam Era Veterans Education Account pursuant to subsection 
(c) of section 3222 of this title on behalf of any individual 
referred to in paragraph (1) of this subsection shall remain in such 
account to make payments of benefits to such individual under section 
3015(f) of this title. 
(Added Pub. L. 102-484, div. D, title XLIV, Sec. 4404(a), Oct. 23, 
1992, 106 Stat. 
2704; amended Pub. L. 103-446, title XII, Sec. 1201(d)(5), (e)(11), 
(f)(3), Nov. 2, 
1994, 108 Stat. 4684, 4685, 4687; Pub. L. 105-368, title II, Sec. 
203(a), title X, Sec. 
1005(b)(6), Nov. 11, 1998, 112 Stat. 3326, 3365; Pub. L. 107-296, 
title XVII, Sec. 
1704(d), Nov. 25, 2002, 116 Stat. 2315.) 


407 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3018C 

ï¿½ 3018C. Opportunity for certain VEAP participants to enroll 

(a) Notwithstanding any other provision of law, an individual 
who- 
(1) is a participant on October 9, 1996, in the educational 
benefits program provided by chapter 32 of this title; 
(2) is serving on active duty (excluding the periods referred 
to in section 3202(1)(C) of this title) on such date; 
(3) before applying for benefits under this section, has completed 
the requirements of a secondary school diploma (or 
equivalency certificate) or has successfully completed (or otherwise 
received academic credit for) the equivalent of 12 semester hours in 
a program of education leading to a standard college degree; 
(4) if discharged or released from active duty after the date 
on which the individual makes the election described in paragraph (5), 
is discharged or released therefrom with an honorable discharge; and 
(5) during the one-year period beginning on October 9, 
1996, makes an irrevocable election to receive benefits under 
this section in lieu of benefits under chapter 32 of this title, 
pursuant to procedures which the Secretary of each military 
department shall provide in accordance with regulations prescribed by 
the Secretary of Defense for the purpose of carrying 
out this section or which the Secretary of Homeland Security 
shall provide for such purpose with respect to the Coast Guard 
when it is not operating as a service in the Navy; 
may elect to become entitled to basic educational assistance under 
this chapter. 

(b) With respect to an individual who makes an election under 
subsection (a) to become entitled to basic education assistance 
under this chapter- 
(1) the basic pay of the individual shall be reduced (in a 
manner determined by the Secretary of Defense) until the total 
amount by which such basic pay is reduced is $1,200; or 
(2) to the extent that basic pay is not so reduced before the 
individualï¿½s discharge or release from active duty as specified 
in subsection (a)(4), the Secretary shall collect from the individual an 
amount equal to the difference between $1,200 and 
the total amount of reductions under paragraph (1), which 
shall be paid into the Treasury of the United States as miscellaneous 
receipts. 
(c)(1) Except as provided in paragraph (3), an individual who 
is enrolled in the educational benefits program provided by chapter 
32 of this title and who makes the election described in subsection 
(a)(5) shall be disenrolled from such chapter 32 program as of the 
date of such election. 

(2) For each individual who is disenrolled from such program, 
the Secretary shall refund- 
(A) to the individual, as provided in section 3223(b) of this 
title and subject to subsection (b)(2) of this section, the unused 
contributions made by the individual to the Post-Vietnam Era 

Sec. 3018C CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 408 

Veterans Education Account established pursuant to section 
3222(a) of this title; and 

(B) to the Secretary of Defense the unused contributions 
(other than contributions made under section 3222(c) of this 
title) made by such Secretary to the Account on behalf of such 
individual. 
(3) Any contribution made by the Secretary of Defense to the 
Post-Vietnam Era Veterans Education Account pursuant to subsection (c) 
of section 3222 of this title on behalf of any individual 
referred to in paragraph (1) shall remain in such account to make 
payments of benefits to such individual under section 3015(f) of 
this title. 
(d) The procedures provided in regulations referred to in subsection 
(a) shall provide for notice of the requirements of subparagraphs (B), 
(C), and (D) of section 3011(a)(3) and of subparagraph 
(A) of section 3012(a)(3) of this title. Receipt of such notice shall be 
acknowledged in writing. 
(e)(1) A qualified individual (described in paragraph (2)) may 
make an irrevocable election under this subsection, during the one-
year period beginning on the date of the enactment of this subsection, 
to become entitled to basic educational assistance under 
this chapter. Such an election shall be made in the same manner 
as elections made under subsection (a)(5). 

(2) A qualified individual referred to in paragraph (1) is an 
individual who meets each of the following requirements: 
(A) The individual was a participant in the educational 
benefits program under chapter 32 of this title on or before October 9, 
1996. 
(B) The individual has continuously served on active duty 
since October 9, 1996 (excluding the periods referred to in section 
3202(1)(C) of this title), through at least April 1, 2000. 
(C) The individual meets the requirements of subsection 
(a)(3). 
(D) The individual, when discharged or released from active duty, is 
discharged or released therefrom with an honorable discharge. 
(3)(A) Subject to the succeeding provisions of this paragraph, 
with respect to a qualified individual who makes an election under 
paragraph (1) to become entitled to basic education assistance 
under this chapter- 

(i) the basic pay of the qualified individual shall be reduced (in a 
manner determined by the Secretary concerned) 
until the total amount by which such basic pay is reduced is 
$2,700; and 
(ii) to the extent that basic pay is not so reduced before the 
qualified individualï¿½s discharge or release from active duty as 
specified in subsection (a)(4), at the election of the qualified 
individual- 
(I) the Secretary concerned shall collect from the qualified 
individual; or 
(II) the Secretary concerned shall reduce the retired or 
retainer pay of the qualified individual by, 
an amount equal to the difference between $2,700 and the 
total amount of reductions under clause (i), which shall be 

409 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3019 

paid into the Treasury of the United States as miscella

neous receipts. 

(B)(i) The Secretary concerned shall provide for an 18-month 
period, beginning on the date the qualified individual makes an 
election under paragraph (1), for the qualified individual to pay 
that Secretary the amount due under subparagraph (A). 

(ii) Nothing in clause (i) shall be construed as modifying the 
period of eligibility for and entitlement to basic education assistance 
under this chapter applicable under section 3031 of this title. 
(C) The provisions of subsection (c) shall apply to qualified 
individuals making elections under this subsection in the same manner 
as they applied to individuals making elections under subsection (a)(5). 
(4) With respect to qualified individuals referred to in paragraph 
(3)(A)(ii), no amount of educational assistance allowance 
under this chapter shall be paid to the qualified individual until 
the earlier of the date on which- 
(A) the Secretary concerned collects the applicable amount 
under subclause (I) of such paragraph; or 
(B) the retired or retainer pay of the qualified individual 
is first reduced under subclause (II) of such paragraph. 
(5) The Secretary, in conjunction with the Secretary of Defense, 
shall provide for notice to participants in the educational benefits 
program under chapter 32 of this title of the opportunity under this 
subsection to elect to become entitled to basic educational assistance
under this chapter. 
(Added Pub. L. 104-275, title I, Sec. 106(a), Oct. 9, 1996, 110 Stat. 
3327; amended 
Pub. L. 105-114, title IV, Sec. 401(c), Nov. 21, 1997, 111 Stat. 2293; 
Pub. L. 105- 
368, title II, Sec. 203(a), Nov. 11, 1998, 112 Stat. 3326; Pub. L. 
106-398, Sec. 1 [[div. 
A], title XVI, Sec. 1601], Oct. 30, 2000, 114 Stat. 1654, 1654A-357; 
Pub. L. 106-419, 
title I, Sec. 104(a)-(c), Nov. 1, 2000, 114 Stat. 1827, 1828; Pub. L. 
107-14, Sec. 
7(e)(1), June 5, 2001, 115 Stat. 33; Pub. L. 107-296, title XVII, Sec. 
1704(d), Nov. 
25, 2002, 116 Stat. 2315; Pub. L. 107-330, title III, Sec. 308(g)(9), 
Dec. 6, 2002, 116 
Stat. 2829.) 

ï¿½ 3019. Tutorial assistance 

(a) An individual entitled to an educational assistance allowance under 
this chapter shall also be entitled to benefits provided 
an eligible veteran under section 3492 of this title, subject to the 
conditions applicable to an eligible veteran under such section. 
(b) The amount of such benefits payable under this section may 
not exceed $100 per month, for a maximum of twelve months, or 
until a maximum of $1,200 is utilized. This amount is in addition 
to the amount of educational assistance allowance payable to the 
individual under this chapter. 
(c)(1) An individualï¿½s period of entitlement to educational assistance 
under this chapter shall be charged only with respect to 
the amount of tutorial assistance paid to the individual under this 
section in excess of $600. 

(2) An individualï¿½s period of entitlement to educational assistance 
under this chapter shall be charged at the rate of one month 
for each amount of assistance paid to the individual under this section 
in excess of $600 that is equal to the amount of the monthly 
educational assistance allowance which the individual is otherwise 

Sec. 3020 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 410 

eligible to receive for full-time pursuit of an institutional course 
under this chapter. 

(Added Pub. L. 100-689, title I, Sec. 107(a)(1), Nov. 18, 1988, 102 
Stat. 4167, Sec. 
1419; renumbered Sec. 3019 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3020. Authority to transfer unused education benefits to 
family members for career service members 

(a) IN GENERAL.-Subject to the provisions of this section, the 
Secretary of Defense may authorize the Secretary concerned, to 
promote recruitment and retention of members of the Armed 
Forces, to permit an individual described in subsection (b) who is 
entitled to basic educational assistance under this subchapter to 
elect to transfer to one or more of the dependents specified in 
subsection (c) the unused portion of entitlement to such assistance, 
subject to the limitation under subsection (d). 
(b) ELIGIBLE INDIVIDUALS.-An individual referred to in subsection (a) 
is any member of the Armed Forces- 
(1) who, while serving on active duty or as a member of 
the Selected Reserve at the time of the approval by the Secretary 
concerned of the memberï¿½s request to transfer entitlement to basic 
educational assistance under this section, has 
completed six years of service in the Armed Forces and enters 
into an agreement to serve at least four more years as a member of the 
Armed Forces; or 
(2) as determined in regulations pursuant to subsection 
(k). 
(c) ELIGIBLE DEPENDENTS.-An individual approved to transfer 
an entitlement to basic educational assistance under this section 
may transfer the individualï¿½s entitlement as follows: 
(1) To the individualï¿½s spouse. 
(2) To one or more of the individualï¿½s children. 
(3) To a combination of the individuals referred to in paragraphs (1) 
and (2). 
(d) LIMITATION ON MONTHS OF TRANSFER.-(1) An individual 
approved to transfer an entitlement to basic educational assistance 
under this section may transfer any unused entitlement to one or 
more of the dependents specified in subsection (c). 
(2) The total number of months of entitlement transferred by 
an individual under this section may not exceed 36 months. The 
Secretary of Defense may prescribe regulations that would limit 
the months of entitlement that may be transferred under this section to 
no less than 18 months. 
(e) DESIGNATION OF TRANSFEREE.-An individual transferring 
an entitlement to basic educational assistance under this section 
shall- 
(1) designate the dependent or dependents to whom such 
entitlement is being transferred; 
(2) designate the number of months of such entitlement to 
be transferred to each such dependent; and 
(3) specify the period for which the transfer shall be effective for 
each dependent designated under paragraph (1). 
(f) TIME FOR TRANSFER; REVOCATION AND MODIFICATION.-(1) 
Subject to the time limitation for use of entitlement under section 

411 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3020 

3031 of this title, an individual approved to transfer entitlement to 
basic educational assistance under this section may transfer such 
entitlement at any time after the approval of the individualï¿½s request 
to transfer such entitlement only while the individual is a 
member of the Armed Forces when the transfer is executed. 

(2)(A) An individual transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused portion of 
the entitlement so transferred as long as the individual is 
serving on active duty or as a member of the Selected Reserve. 

(B) The modification or revocation of the transfer of entitlement under 
this paragraph shall be made by the submittal of written notice of the 
action to both the Secretary concerned and the 
Secretary of Veterans Affairs. 
(3) Entitlement transferred under this section may not be 
treated as marital property, or the asset of a marital estate, subject 
to division in a divorce or other civil proceeding. 
(g) COMMENCEMENT OF USE.-A dependent to whom entitlement to basic 
educational assistance is transferred under this section may not 
commence the use of the transferred entitlement 
until- 
(1) in the case of entitlement transferred to a spouse, the 
completion by the individual making the transfer of six years 
of service in the Armed Forces; or 
(2) in the case of entitlement transferred to a child, both- 
(A) the completion by the individual making the transfer of 10 years of 
service in the Armed Forces; and 
(B) either- 
(i) the completion by the child of the requirements 
of a secondary school diploma (or equivalency certificate); or 
(ii) the attainment by the child of 18 years of age. 
(h) ADDITIONAL ADMINISTRATIVE MATTERS.-(1) The use of any 
entitlement to basic educational assistance transferred under this 
section shall be charged against the entitlement of the individual 
making the transfer at the rate of one month for each month of 
transferred entitlement that is used. 
(2) Except as provided under subsection (e)(2) and subject to 
paragraphs (5) and (6), a dependent to whom entitlement is transferred 
under this section is entitled to basic educational assistance 
under this subchapter in the same manner as the individual from 
whom the entitlement was transferred. 
(3)(A) Subject to subparagraph (B), the monthly rate of educational 
assistance payable to a dependent to whom entitlement is 
transferred under this section shall be the monthly amount payable 
under sections 3015 and 3022 of this title to the individual making 
the transfer. 

(B) The monthly rate of assistance payable to a dependent 
under subparagraph (A) shall be subject to the provisions of section 
3032 of this title, except that the provisions of subsection (a)(1) of 
that section shall not apply even if the individual making the 
transfer to the dependent under this section is on active duty during 
all or any part of enrollment period of the dependent in which 
such entitlement is used. 

Sec. 3020 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 412 

(4) The death of an individual transferring an entitlement 
under this section shall not affect the use of the entitlement by the 
dependent to whom the entitlement is transferred. 
(5) Notwithstanding section 3031 of this title, a child to whom 
entitlement is transferred under this section may use the benefit 
without regard to the 10-year delimiting date, but may not use any 
entitlement so transferred after attaining the age of 26 years. 
(6) The administrative provisions of this chapter (including the 
provisions set forth in section 3034(a)(1) of this title) shall apply to 
the use of entitlement transferred under this section, except that 
the dependent to whom the entitlement is transferred shall be 
treated as the eligible veteran for purposes of such provisions. 
(7) The purposes for which a dependent to whom entitlement 
is transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate). 
(i) OVERPAYMENT.-(1) In the event of an overpayment of basic 
educational assistance with respect to a dependent to whom entitlement is 
transferred under this section, the dependent and the individual making 
the transfer shall be jointly and severally liable to 
the United States for the amount of the overpayment for purposes 
of section 3685 of this title. 
(2) Except as provided in paragraph (3), if an individual transferring 
entitlement under this section fails to complete the service 
agreed to by the individual under subsection (b)(3) in accordance 
with the terms of the agreement of the individual under that subsection, 
the amount of any transferred entitlement under this section that is 
used by a dependent of the individual as of the date 
of such failure shall be treated as an overpayment of basic educational 
assistance under paragraph (1). 
(3) Paragraph (2) shall not apply in the case of an individual 
who fails to complete service agreed to by the individual- 
(A) by reason of the death of the individual; or 
(B) for a reason referred to in section 3011(a)(1)(A)(ii)(I) of 
this title. 
(j) APPROVALS OF TRANSFER SUBJECT TO AVAILABILITY OF APPROPRIATIONS.-The 
Secretary concerned may approve transfers of 
entitlement to basic educational assistance under this section in a 
fiscal year only to the extent that appropriations for military personnel 
are available in that fiscal year for purposes of making deposits in 
the Department of Defense Education Benefits Fund 
under section 2006 of title 10 in that fiscal year to cover the 
present value of future benefits payable from the Fund for the 
Department of Defense portion of payments of basic educational 
assistance attributable to increased usage of benefits as a result of 
such transfers of entitlement in that fiscal year. 
(k) REGULATIONS.-The Secretary of Defense, in coordination 
with the Secretary of Veterans Affairs, shall prescribe regulations 
for purposes of this section. Such regulations shall specify- 
(1) the manner of authorizing the military departments to 
offer transfer of entitlements under this section; 
(2) the eligibility criteria in accordance with subsection (b); 
(3) the limitations on the amount of entitlement eligible to 
be transferred; and 

413 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3021 

(4) the manner and effect of an election to modify or revoke a transfer 
of entitlement under subsection (f)(2). 
(l) ANNUAL REPORT.-(1) Not later than January 31 each year 
(beginning in 2003), the Secretary of Defense shall submit to the 
Committees on Armed Services and the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives a report on the 
transfers of entitlement to basic educational assistance under this 
section that were approved by each Secretary concerned during the 
preceding fiscal year. 
(2) Each report shall set forth- 
(A) the number of transfers of entitlement under this section that were 
approved by such Secretary during the preceding fiscal year; or 
(B) if no transfers of entitlement under this section were 
approved by such Secretary during that fiscal year, a justification for 
such Secretaryï¿½s decision not to approve any such 
transfers of entitlement during that fiscal year. 
(m) SECRETARY CONCERNED DEFINED.-Notwithstanding section 101(25) of 
this title, in this section, the term ï¿½ï¿½Secretary concernedï¿½ï¿½ means- 
(1) the Secretary of the Army with respect to matters concerning the 
Army; 
(2) the Secretary of the Navy with respect to matters concerning the 
Navy or the Marine Corps; 
(3) the Secretary of the Air Force with respect to matters 
concerning the Air Force; and 
(4) the Secretary of Defense with respect to matters concerning the 
Coast Guard, or the Secretary of Homeland Security when it is not 
operating as a service in the Navy. 
(Added Pub. L. 107-107, title VI, Sec. 654(a)(1), Dec. 28, 2001, 115 
Stat. 1153; 
amended Pub. L. 107-296, title XVII, Sec. 1704(d), Nov. 25, 2002, 116 
Stat. 2315; 
Pub. L. 107-314, div. A, title VI, Sec. 643(a), Dec. 2, 2002, 116 
Stat. 2577; Pub. L. 
110-252, title V, Sec. 5006(a), June 30, 2008, 122 Stat. 2380.) 

SUBCHAPTER III-SUPPLEMENTAL EDUCATIONAL 
ASSISTANCE 


ï¿½ 3021. Supplemental educational assistance for additional 
service 

(a) The Secretary concerned, pursuant to regulations to be prescribed 
by the Secretary of Defense, may provide for the payment 
of supplemental educational assistance under this subchapter to 
any individual eligible for basic educational assistance under section 
3011 or 3018 of this title who- 
(1) serves five or more consecutive years of active duty in 
the Armed Forces after the years of active duty counted under 
section 3011(a)(1) of this title without a break in such service; 
and 
(2) after completion of the service described in clause (1) 
of this subsection- 
(A) is discharged from service with an honorable discharge, is placed 
on the retired list, is transferred to the 
Fleet Reserve or Fleet Marine Corps Reserve, or is placed 
on the temporary disability retired list; 

Sec. 3022 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 414 

(B) continues on active duty without a break in service; or 
(C) is released from active duty for further service in 
a reserve component of the Armed Forces after service on 
active duty characterized by the Secretary concerned as 
honorable service. 
(b) The Secretary concerned, pursuant to regulations to be prescribed 
by the Secretary of Defense, may provide for the payment 
of supplemental educational assistance under this subchapter to 
any individual eligible for basic educational assistance under section 
3012 or 3018 of this title who- 
(1) serves two or more consecutive years of active duty in 
the Armed Forces after the years of active duty counted under 
section 3012(a)(1) of this title and four or more consecutive 
years of duty in the Selected Reserve after the years of duty 
in the Selected Reserve counted under such section without a 
break in service; and 
(2) after completion of the service described in clause (1) 
of this subsection- 
(A) is discharged from service with an honorable discharge, is placed 
on the retired list, is transferred to the 
Fleet Reserve or Fleet Marine Corps Reserve, or is placed 
on the temporary disability retired list; or 
(B) continues on active duty or in the Selected Reserve. 
(c) Continuity of service of a member in the Selected Reserve 
for purposes of subsection (b)(1) of this section shall not be 
considered to be broken- 
(1) by any period of time (not to exceed a maximum period 
prescribed by the Secretary concerned by regulation) during 
which the member is not able to locate a unit of the Selected 
Reserve of the memberï¿½s Armed Force that the member is eligible to join 
or that has a vacancy; or 
(2) by any other period of time (not to exceed a maximum 
period prescribed by the Secretary concerned by regulation) 
during which the member is not attached to a unit of the Selected 
Reserve that the Secretary concerned, pursuant to regulations, 
considers to be inappropriate to consider for such purpose. 
(d) A period of active duty or duty in the Selected Reserve that 
occurs before the period of duty by which the individual concerned 
qualifies for basic educational assistance may not be counted for 
purposes of this section. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2558, Sec. 
1421; amended Pub. L. 99-576, title III, Sec. 321(5), (6), Oct. 28, 
1986, 100 Stat. 
3278; Pub. L. 100-689, title I, Sec. 103(b)(5), Nov. 18, 1988, 102 
Stat. 4166; Pub. 

L. 101-237, title IV, Sec. 423(b)(4)(B), Dec. 18, 1989, 103 Stat. 2092; 
renumbered 
Sec. 3021 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 
406.) 
ï¿½ 3022. Amount of supplemental educational assistance 

(a) The amount of payment of educational assistance under 
this chapter is subject to section 3032 of this title. Except as 
otherwise provided under subsection (b) of this section, supplemental 

415 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3031 

educational assistance under section 3021 of this title shall be 
paid- 

(1) at a monthly rate of $300 for an approved program of 
education pursued on a full-time basis; or 
(2) at an appropriately reduced rate, as determined under 
regulations which the Secretary shall prescribe, for an approved 
program of education pursued on less than a full-time 
basis. 
(b) In the case of a member of the Armed Forces for whom the 
Secretary concerned has provided for the payment of supplemental 
educational assistance who has a skill or specialty designated by 
the Secretary concerned, pursuant to regulations to be prescribed 
by the Secretary of Defense, as a skill or specialty in which there 
is a critical shortage of personnel, the Secretary concerned, pursuant 
to such regulations, may increase the rate of the supplemental 
educational assistance allowance applicable to such individual to 
such rate in excess of the rate prescribed under subsection (a) of 
this section as the Secretary concerned considers appropriate, but 
the amount of any such increase may not exceed $300 per month. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2559, Sec. 
1422; amended Pub. L. 100-689, title I, Sec. 111(a)(5)(B), Nov. 18, 
1988, 102 Stat. 
4171; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), (4)(C), Dec. 18, 
1989, 103 Stat. 
2092; renumbered Sec. 3022 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3023. Payment of supplemental educational assistance 
under this subchapter 

The Secretary shall increase the monthly basic educational assistance 
allowance paid to an individual who is entitled to supplemental 
educational assistance under this subchapter by the monthly amount of 
the supplemental educational assistance to which the 
individual is entitled. 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2560, Sec. 
1423; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 
1989, 103 Stat. 
2092; renumbered Sec. 3023, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 

SUBCHAPTER IV-TIME LIMITATION FOR USE OF ELIGI

BILITY AND ENTITLEMENT; GENERAL AND ADMINISTRA

TIVE PROVISIONS 

ï¿½ 3031. Time limitation for use of eligibility and entitlement 

(a) Except as provided in subsections (b) through (g), and subject to 
subsection (h), of this section, the period during which an 
individual entitled to educational assistance under this chapter 
may use such individualï¿½s entitlement expires at the end of the 10year 
period beginning on the date of such individualï¿½s last discharge or 
release from active duty, except that such 10-year period 
shall begin- 
(1) in the case of an individual who becomes entitled to 
such assistance under clause (A) or (B) of section 3012(a)(1) of 
this title, on the later of the date of such individualï¿½s last discharge 
or release from active duty or the date on which the 
four-year requirement described in clause (A)(ii) or (B)(ii), 
respectively, of such section 3012(a)(1) is met; 

Sec. 3031 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 416 

(2) in the case of an individual who becomes entitled to 
such assistance under section 3011(a)(1)(B), on the later of the 
date of such individualï¿½s last discharge or release from active 
duty or January 1, 1990; and 
(3) in the case of an individual who becomes entitled to 
such assistance under section 3011(a)(1)(C) or 3012(a)(1)(C) of 
this title, on December 27, 2001. 
(b) In the case of any eligible individual who has been prevented, as 
determined by the Secretary, from pursuing a program 
of education under this chapter within the 10-year period prescribed by 
subsection (a) of this section because such individual 
had not met the nature of discharge requirement of this chapter 
before the nature of such individualï¿½s discharge or release was 
changed by appropriate authority, such 10-year period shall not 
run during the period of time that such individual was so prevented 
from pursuing such program of education. 
(c) In the case of an individual eligible for educational assistance 
under the provisions of this chapter who, after such individualï¿½s last 
discharge or release from active duty, was detained by a 
foreign government or power, the 10-year period described in subsection 
(a) of this section shall not run (1) while such individual is 
so detained, or (2) during any period immediately following such 
individualï¿½s release from such detention during which such individual 
is hospitalized at a military, civilian, or Department of Veterans 
Affairs medical facility. 
(d) In the case of an individual eligible for educational assistance 
under this chapter- 
(1) who was prevented from pursuing such individualï¿½s 
chosen program of education before the expiration of the 10year period 
for use of entitlement under this chapter otherwise 
applicable under this section because of a physical or mental 
disability which was not the result of the individualï¿½s own willful 
misconduct, and 
(2) who applies for an extension of such 10-year period 
within one year after (A) the last day of such period, or (B) the 
last day on which such individual was so prevented from pursuing such 
program, whichever is later, 
such 10-year period shall not run with respect to such individual 
during the period of time that such individual was so prevented 
from pursuing such program and such 10-year period will again 
begin running on the first day following such individualï¿½s recovery 
from such disability on which it is reasonably feasible, as determined 
under regulations which the Secretary shall prescribe, for 
such individual to initiate or resume pursuit of a program of education 
with educational assistance under this chapter. 

(e)(1) Except as provided in paragraph (2) of this subsection, in 
the case of an individual described in section 3011(a)(1)(B), 
3011(a)(1)(C), 3012(a)(1)(B), or 3012(a)(1)(C) of this title who is 
entitled to basic educational assistance under this chapter, the 10year 
period prescribed in subsection (a) of this section shall be reduced by 
an amount of time equal to the amount of time that such 
individual was not serving on active duty during the period beginning on 
January 1, 1977, and ending on June 30, 1985. 


417 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3032 

(2) In the case of an individual to which paragraph (1) of this 
subsection is applicable and who is described in section 
3452(a)(1)(B) of this title, the 10-year period prescribed in subsection 
(a) of this section shall not be reduced by any period in 
1977 before the individual began serving on active duty. 
(f)(1) If an individual eligible for educational assistance under 
this chapter is enrolled under this chapter in an educational institution 
regularly operated on the quarter or semester system and 
the period of such individualï¿½s entitlement under this chapter 
would, under section 3013, expire during a quarter or semester, 
such period shall be extended to the end of such quarter or semester. 

(2) If an individual eligible for educational assistance under 
this chapter is enrolled under this chapter in an educational institution
not regularly operated on the quarter or semester system 
and the period of such individualï¿½s entitlement under this chapter 
would, under section 3013, expire after a major portion of the 
course is completed, such period shall be extended to the end of the 
course or for 12 weeks, whichever is the lesser period of extension. 
(g) In the case of an individual described in section 3011(f)(3) 
of this title, the period during which that individual may use the 
individualï¿½s entitlement to educational assistance allowance expires 
on the last day of the 10-year period beginning on the date of the 
enactment of the Veterans Millennium Health Care and Benefits 
Act if that date is later than the date that would otherwise be applicable 
to that individual under this section. 
(h) For purposes of subsection (a) of this section, an individualï¿½s last 
discharge or release from active duty shall not include 
any discharge or release from a period of active duty of less than 
90 days of continuous service unless the individual involved is 
discharged or released for a service-connected disability, for a medical 
condition which preexisted such service and which the Secretary 
determines is not service connected, for hardship, or as a result of 
a reduction in force as described in section 3011(a)(1)(A)(ii)(III) of 
this title. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2560, Sec. 
1431; amended Pub. L. 99-576, title III, Sec. 307(b), 321(7), Oct. 28, 
1986, 100 Stat. 
3270, 3278; Pub. L. 100-689, title I, Sec. 111(a)(6), Nov. 18, 1988, 
102 Stat. 4171; 
Pub. L. 101-237, title IV, Sec. 420(a)(1), (b), 423(a)(4), (b)(1), 
Dec. 18, 1989, 103 
Stat. 2087, 2088, 2091, 2092; renumbered Sec. 3031 and amended Pub. L. 
102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, 
Sec. 302(a)(3), 
Oct. 29, 1992, 106 Stat. 4327; Pub. L. 106-117, title VII, Sec. 702(b), 
Nov. 30, 1999, 
113 Stat. 1583; Pub. L. 107-103, title I, Sec. 105(c), Dec. 27, 2001, 115 
Stat. 983; 
Pub. L. 107-330, title III, Sec. 308(g)(10), Dec. 6, 2002, 116 Stat. 2829.) 

ï¿½ 3032. Limitations on educational assistance for certain individuals 

(a) In the case of an individual entitled to educational assistance under 
this chapter who is pursuing a program of education- 
(1) while on active duty; or 
(2) on less than a half-time basis, 
the amount of the monthly educational assistance allowance payable to 
such individual under this chapter is the amount determined under 
subsection (b) of this section. 

Sec. 3032 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 418 

(b) The amount of the educational assistance allowance payable to an 
individual described in subsection (a) of this section is 
the least of the following: (1) the amount of the educational assistance 
allowance otherwise payable to such individual under this 
chapter, (2) the established charges for tuition and fees that the 
educational institution involved requires similarly circumstanced 
nonveterans enrolled in the same program to pay, or (3) the 
amount of the charges of the educational institution elected by the 
individual under section 3014(b)(1) of this title. 
(c)(1) Except as provided in paragraph (2) of this subsection, 
the amount of the monthly educational assistance allowance payable to 
an individual pursuing a full-time program of apprenticeship or other 
on-job training under this chapter is- 


(A) for each of the first six months of the individualï¿½s pursuit of 
such program, 75 percent of the monthly educational assistance allowance
otherwise payable to such individual under 
this chapter; 
(B) for each of the second six months of the individualï¿½s 
pursuit of such program, 55 percent of such monthly educational 
assistance allowance; and 
(C) for each of the months following the first 12 months of 
the individualï¿½s pursuit of such program, 35 percent of such 
monthly educational assistance allowance. 
(2) In any month in which an individual pursuing a program 
of education consisting of a program of apprenticeship or other on-
job training fails to complete 120 hours of training, the amount of 
monthly educational assistance allowance payable under this chapter to t
he individual shall be limited to the same proportion of the 
applicable rate determined under paragraph (1) of this subsection 
as the number of hours worked during such month, rounded to the 
nearest eight hours, bears to 120 hours. 
(3)(A) Except as provided in subparagraph (B) of this paragraph, for 
each month that an individual is paid a monthly educational assistance 
allowance under this chapter, the individualï¿½s 
entitlement under this chapter shall be charged at the rate of- 

(i) 75 percent of a month in the case of payments made in 
accordance with paragraph (1)(A) of this subsection; 
(ii) 55 percent of a month in the case of payments made 
in accordance with paragraph (1)(B) of this subsection; and 
(iii) 35 percent of a month in the case of payments made 
in accordance with paragraph (1)(C) of this subsection. 
(B) Any such charge to the individualï¿½s entitlement shall be reduced 
proportionately in accordance with the reduction in payment 
under paragraph (2) of this subsection. 
(d)(1)(A) The amount of the educational assistance allowance 
payable under this chapter to an individual who enters into an 
agreement to pursue, and is pursuing, a program of education exclusively 
by correspondence is an amount equal to 55 percent of the 
established charge which the institution requires nonveterans to 
pay for the course or courses pursued by such individual. 

(B) For purposes of this paragraph, the term ï¿½ï¿½established 
chargeï¿½ï¿½ means the lesser of- 
(i) the charge for the course or courses determined on the 
basis of the lowest extended time payment plan offered by the 

419 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3032 

institution and approved by the appropriate State approving 
agency; or 

(ii) the actual charge to the individual for such course or 
courses. 
(2) Such allowance shall be paid quarterly on a pro rata basis 
for the lessons completed by the individual and serviced by the 
institution. 
(3) In each case in which the rate of payment to an individual 
is determined under paragraph (1) of this subsection, the period of 
entitlement of such individual under this chapter shall be charged 
at the rate of one month for each payment of educational assistance to 
the individual that is equal to the amount of monthly educational 
assistance the individual would otherwise be eligible to receive for 
full-time pursuit of an institutional course under this 
chapter. 
(e)(1) Notwithstanding subsection (a) of this section, each individual 
who is pursuing a program of education consisting exclusively of flight 
training approved as meeting the requirements of 
section 3034(d) of this title shall be paid an educational assistance 
allowance under this chapter in the amount equal to 60 percent of 
the established charges for tuition and fees which similarly 
circumstanced nonveterans enrolled in the same flight course are 
required to pay. 

(2) No educational assistance allowance may be paid under this 
chapter to an individual for any month during which such individual is 
pursuing a program of education consisting exclusively of 
flight training until the Secretary has received from that individual 
and the institution providing such training a certification of the 
flight training received by the individual during that month and 
the tuition and other fees charged for that training. 
(3) The number of months of entitlement charged in the case 
of any individual for a program of education described in paragraph (1) 
of this subsection shall be equal to the number (including 
any fraction) determined by dividing the total amount of educational 
assistance paid such individual for such program by the 
monthly rate of educational assistance which, except for paragraph 
(1) of this subsection, such individual would otherwise be paid 
under subsection (a)(1), (b)(1), (d), or (e)(1) of section 3015 of this 
title, as the case may be. 
(4) The number of solo flying hours for which an individual 
may be paid an educational assistance allowance under this subsection 
may not exceed the minimum number of solo flying hours 
required by the Federal Aviation Administration for the flight rating
or certification which is the goal of the individualï¿½s flight training. 
(f)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a licensing or certification 
test described in section 3452(b) of this title is the lesser of $2,000 
or the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for such licensing or certification test is equal to 
the number (including any fraction) determined by dividing the 
total amount of educational assistance paid such individual for 
such test by the full-time monthly institutional rate of educational 

Sec. 3033 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 420 

assistance which, except for paragraph (1), such individual would 
otherwise be paid under subsection (a)(1), (b)(1), (d), or (e)(1) of
section 3015 of this title, as the case may be. 

(3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individualï¿½s 
available entitlement under this chapter. 
(g)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a national test for admission or national t
est providing an opportunity for course credit at 
institutions of higher learning described in section 3452(b) of this 
title is the amount of the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for a test described in paragraph (1) is equal to 
the number (including any fraction) determined by dividing the 
total amount of educational assistance paid such individual for 
such test by the full-time monthly institutional rate of educational 
assistance, except for paragraph (1), such individual would otherwise 
be paid under subsection (a)(1), (b)(1), (d), or (e)(1) of section 
3015 of this title, as the case may be. 
(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the 
amount of the individualï¿½s available entitlement under this chapter. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2561, Sec. 
1432; amended Pub. L. 99-576, title III, Sec. 301(b), (d)(1), Oct. 28, 
1986, 100 Stat.
3267, 3268; Pub. L. 100-689, title I, Sec. 108(a)(2), 111(a)(7)(A), 
(8), Nov. 18, 1988, 

102 Stat. 4169, 4172; Pub. L. 101-237, title IV, Sec. 422(a)(2), Dec. 
18, 1989, 103 
Stat. 2089; Pub. L. 102-16, Sec. 10(a)(3), Mar. 22, 1991, 105 Stat. 
55; renumbered 
Sec. 3032 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; 
Pub. L. 102-568, title III, Sec. 310(a), Oct. 29, 1992, 106 Stat. 4329; 
Pub. L. 103- 
446, title XII, Sec. 1201(d)(6), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 
104-275, titleI, Sec. 105(a), Oct. 9, 1996, 110 Stat. 3327; Pub. L. 
106-419, title I, Sec. 122(b)(1), 
Nov. 1, 2000, 114 Stat. 1833; Pub. L. 107-14, Sec. 7(b)(2)(B), June 5, 
2001, 115 Stat. 
32; Pub. L. 108-454, title I, Sec. 106(b)(1), Dec. 10, 2004, 118 Stat. 
3602.) 

ï¿½ 3033. Bar to duplication of educational assistance benefits 

(a)(1) An individual entitled to educational assistance under a 
program established by this chapter who is also eligible for educational 
assistance under a program under chapter 31, 32, 33, or 
35 of this title, under chapter 106 or 107 of title 10, or under the 
Hostage Relief Act of 1980 (Public Law 96-449; 5 U.S.C. 5561 note) 
may not receive assistance under two or more of such programs 
concurrently but shall elect (in such form and manner as the Secretary 
may prescribe) under which program to receive educational 
assistance. 

(2) An individual entitled to educational assistance under chapter 34 of 
this title may not receive assistance under this chapter 
before January 1, 1990. 
(b) A period of service counted for purposes of repayment under 
chapter 109 of title 10 of an education loan may not also be counted for 
purposes of entitlement to educational assistance under this 
chapter. 
(c) An individual who serves in the Selected Reserve may not 
receive credit for such service under two or more of the programs 
established by this chapter, chapter 33 of this title, and chapters 
1606 and 1607 of title 10. 

421 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3034 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 Stat. 
2561, Sec. 
1433; amended Pub. L. 99-576, title III, Sec. 306, Oct. 28, 1986, 100 
Stat. 3269; 
Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; Pub. L. 
102-16, Sec. 10(a)(4), Mar. 22, 1991, 105 Stat. 55; renumbered Sec. 3033, 
Pub. L. 
102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 110-252, 
title V, 
Sec. 5003(b)(1)(A), June 30, 2008, 122 Stat. 2375 (conforming amendment 
effective 
August 1, 2009).) 

ï¿½ 3034. Program administration 

(a)(1) Except as otherwise provided in this chapter, the provisions of 
sections 3470, 3471, 3474, 3476, 3482(g), 3483, and 3485 
of this title and the provisions of subchapters I and II of chapter 
36 of this title (with the exception of sections 3680(c), 3680(f), 
3686(a), and 3687) shall be applicable to the provision of educational 
assistance under this chapter. 

(2) The term ï¿½ï¿½eligible veteranï¿½ï¿½, as used in the provisions of the 
sections enumerated in paragraph (1) of this subsection, shall be 
deemed to include an individual who is eligible for educational 
assistance under this chapter. 
(3) The Secretary may, without regard to the application to 
this chapter of so much of the provisions of section 3471 of this title 
as prohibit the enrollment of an eligible veteran in a program of 
education in which the veteran is ï¿½ï¿½already qualifiedï¿½ï¿½, and pursuant 
to such regulations as the Secretary shall prescribe, approve the 
enrollment of such individual in refresher courses (including 
courses which will permit such individual to update knowledge and 
skills or be instructed in the technological advances which have 
occurred in the individualï¿½s field of employment during and since the 
period of such veteranï¿½s active military service), deficiency courses, 
or other preparatory or special education or training courses necessary 
to enable the individual to pursue an approved program of 
education. 
(b) Regulations prescribed by the Secretary of Defense under 
this chapter shall be uniform for the Armed Forces under the 
jurisdiction of the Secretary of a military department. 
(c) Payment of educational assistance allowance in the case of 
an eligible individual pursuing a program of education under this 
chapter on less than a half-time basis shall be made in a lump-sum 
amount for the entire quarter, semester, or term not later than the 
last day of the month immediately following the month in which 
certification is received from the educational institution that such 
individual has enrolled in and is pursuing a program at such 
institution. 
Such lump-sum payment shall be computed at the rate determined under 
section 3032(b) of this title. 
(d) The Secretary may approve the pursuit of flight training (in 
addition to a course of flight training that may be approved under 
section 3680A(b) of this title) by an individual entitled to basic 
educational assistance under this chapter if- 
(1) such training is generally accepted as necessary for the 
attainment of a recognized vocational objective in the field of 
aviation; 
(2) the individual possesses a valid private pilot certificate 
and meets, on the day the individual begins a course of flight 
training, the medical requirements necessary for a commercial 
pilot certificate; and 

Sec. 3035 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 422 

(3) the flight school courses meet Federal Aviation Administration 
standards for such courses and are approved by the 
Federal Aviation Administration and the State approving agency. 
(e)(1) In the case of a member of the Armed Forces who partici
pates in basic educational assistance under this chapter, the 
Secretary shall furnish the information described in paragraph (2) to 
each such member. The Secretary shall furnish such information as 
soon as practicable after the basic pay of the member has been 
reduced by $1,200 in accordance with section 3011(b) or 3012(c) of 
this title and at such additional times as the Secretary determines 
appropriate. 

(2) The information referred to in paragraph (1) is information 
with respect to the benefits, limitations, procedures, eligibility 
requirements (including time-in-service requirements), and other 
important aspects of the basic educational assistance program under 
this chapter, including application forms for such basic educational 
assistance under section 5102 of this title. 
(3) The Secretary shall furnish the forms described in paragraph (2) 
and other educational materials to educational institutions, training 
establishments, and military education personnel, as 
the Secretary determines appropriate. 
(4) The Secretary shall use amounts appropriated for readjustment 
benefits to carry out this subsection and section 5102 of this 
title with respect to application forms under that section for basic 
educational assistance under this chapter. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98
Stat. 2562, Sec. 
1434; amended Pub. L. 99-576, title III, Sec. 301(c), 302, 305, 308(a), 
Oct. 28, 1986, 
100 Stat. 3268-3270; Pub. L. 100-689, title I, Sec. 106(a), 
111(a)(7)(B), Nov. 18, 
1988, 102 Stat. 4166, 4172; Pub. L. 101-237, title IV, Sec. 415(b), 
422(a)(1), 
423(a)(5)(A), (6), (b)(1)(A), Dec. 18, 1989, 103 Stat. 2086, 2088, 
2091, 2092; Pub. L. 102-16, Sec. 2(b)(2), Mar. 22, 1991, 105 Stat. 49; 
renumbered Sec. 3034 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, 
title III, Sec. 313(a)(4), Oct. 29, 1992, 106 Stat. 4332; Pub. L. 
103-446, title VI, Sec. 
601(a), Nov. 2, 1994, 108 Stat. 4670; Pub. L. 105-368, title II, Sec. 
204(a), 206(a), 
Nov. 11, 1998, 112 Stat. 3327.) 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2562, Sec. 
1434; amended Pub. L. 99-576, title III, Sec. 301(c), 302, 305, 308(a), 
Oct. 28, 1986, 
100 Stat. 3268-3270; Pub. L. 100-689, title I, Sec. 106(a), 
111(a)(7)(B), Nov. 18, 
1988, 102 Stat. 4166, 4172; Pub. L. 101-237, title IV, Sec. 415(b), 
422(a)(1), 
423(a)(5)(A), (6), (b)(1)(A), Dec. 18, 1989, 103 Stat. 2086, 2088, 
2091, 2092; Pub. L. 
102-16, Sec. 2(b)(2), Mar. 22, 1991, 105 Stat. 49; renumbered Sec. 
3034 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 102-568, 
title III, Sec. 313(a)(4), Oct. 29, 1992, 106 Stat. 4332; Pub. L. 
103-446, title VI, Sec. 
601(a), Nov. 2, 1994, 108 Stat. 4670; Pub. L. 105-368, title II, 
Sec. 204(a), 206(a), 
Nov. 11, 1998, 112 Stat. 3327.) 

ï¿½ 3035. Allocation of administration and of program costs 

(a) Except to the extent otherwise specifically provided in this 
chapter, the educational assistance programs established by this 
chapter shall be administered by the Department of Veterans Affairs. 
(b)(1) Except to the extent provided in paragraphs (2), (3), and 
(4), payments for entitlement earned under subchapter II of this 
chapter shall be made from funds appropriated to, or otherwise 
available to, the Department of Veterans Affairs for the payment 
of readjustment benefits and from transfers from the Post-Vietnam 


423 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3035 

Era Veterans Education Account pursuant to section 3232(b)(2)(B) 
of this title. 

(2) Payments for entitlement earned under subchapter II of 
this chapter that is established under section 3015(d) of this title 
at a rate in excess of the rate prescribed under subsection (a) or 
(b) of section 3015 of this title shall, to the extent of that excess, 
be made from the Department of Defense Education Benefits Fund 
established under section 2006 of title 10 or from appropriations 
made to the Department of Homeland Security, as appropriate. 
(3) Payment for entitlements established under section 3018A 
or 3018B of this title shall be made- 
(A) except as provided in subparagraphs (B) and (C) of this 
paragraph, from the Department of Defense Education Benefits Fund 
established under section 2006 of title 10; 
(B) in the case of any individual described in section 
3018A(a)(3), 3018B(a)(1)(C), or 3018B(a)(2)(C) of this title, from 
funds appropriated, or otherwise available, to the Department 
of Veterans Affairs for the payment of readjustment benefits; 
and 
(C) in the case of the increase in payments made under 
section 3015(f) of this title, from the Post-Vietnam Era Veterans 
Education Account established pursuant to section 
3222(a) of this title. 
(4) Payments attributable to the increased usage of benefits as 
a result of transfers of entitlement to basic educational assistance 
under section 3020 of this title shall be made from the Department 
of Defense Education Benefits Fund established under section 2006 
of title 10 or from appropriations made to the Department of 
Transportation, as appropriate. 
(c) Payments for educational assistance provided under subchapter III 
of this chapter shall be made from the Department of 
Defense Education Benefits Fund established under section 2006 of 
title 10 or from appropriations made to the Department of Homeland 
Security, as appropriate. 
(d) Funds for the payment by the Secretary of benefits under 
this chapter that are to be paid from the Department of Defense 
Education Benefits Fund shall be transferred to the Department of 
Veterans Affairs from such Fund as necessary and in accordance 
with agreements entered into under section 2006 of title 10 by the 
Secretary, the Secretary of Defense, and the Secretary of the Treasury. 
Funds for the payment by the Secretary of benefits under this 
chapter that are to be paid from appropriations made to the Department 
of Homeland Security shall be transferred to the Department of Veterans 
Affairs as necessary. The Secretary and the Secretary of Homeland 
Security shall enter into an agreement for the 
manner in which such transfers are to be made. 
(e) Payments for tutorial assistance benefits under section 
3019 of this title shall be made- 
(1) in the case of the first $600 of such benefits paid to an 
individual, from funds appropriated, or otherwise available, to 
the Department of Veterans Affairs for the payment of readjustment 
benefits; and 
(2) in the case of payments to an individual for such benefits in 
excess of $600, from- 

Sec. 3036 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. 424 

(A) funds appropriated, or otherwise available, to the 
Department of Veterans Affairs for the payment of readjustment 
benefits; 
(B) the Department of Defense Education Benefits 
Fund established under section 2006 of title 10; and 
(C) funds appropriated to the Department of Home
land Security, 
in the same proportion as the Fund described in subclause (B) 
of this clause and the funds described in subclause (A) or (C) 
of this clause are used to pay the educational assistance allowance to 
the individual under this chapter. 

(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2562, Sec. 
1435; amended Pub. L. 99-576, title III, Sec. 321(8), Oct. 28, 1986, 
100 Stat. 3278;
Pub. L. 100-689, title I, Sec. 107(a)(2), Nov. 18, 1988, 102 Stat. 
4168; Pub. L. 101- 
237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; 
Pub. L. 101-510, div. A, 
title V, Sec. 561(b)(3), Nov. 5, 1990, 104 Stat. 1573; renumbered 
Sec. 3035 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 102- 
484, div. D, title XLIV, Sec. 4404(b)(3), Oct. 23, 1992, 106 Stat. 
2706; Pub. L. 103- 
446, title XII, Sec. 1201(d)(7), Nov. 2, 1994, 108 Stat. 4684; Pub. 
L. 104-275, titleI, Sec. 106(c)(2), Oct. 9, 1996, 110 Stat. 3329; 
Pub. L. 107-296, title XVII, Sec. 
1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 107-314, div. A, 
title VI, Sec. 643(b), 
Dec. 2, 2002, 116 Stat. 2577; Pub. L. 107-330, title III, Sec. 
308(c)(1), Dec. 6, 2002, 
116 Stat. 2827.) 

ï¿½ 3036. Reporting requirement 

(a) The Secretary of Defense and the Secretary shall submit to 
the Congress at least once every two years separate reports on the 
operation of the program provided for in this chapter. 
(b) The Secretary of Defense shall include in each report submitted 
under this section- 
(1) information indicating (A) the extent to which the benefit levels 
provided under this chapter are adequate to achieve 
the purposes of inducing individuals to enter and remain in the 
Armed Forces and of providing an adequate level of financial 
assistance to help meet the cost of pursuing a program of education, 
(B) whether it is necessary for the purposes of maintaining adequate 
levels of well-qualified active-duty personnel 
in the Armed Forces to continue to offer the opportunity for 
educational assistance under this chapter to individuals who 
have not yet entered active-duty service, and (C) describing the 
efforts under sections 3011(i) and 3012(g) of this title to inform 
members of the Armed Forces of the minimum service requirements for 
entitlement to educational assistance benefits under 
this chapter and the results from such efforts; and 
(2) such recommendations for administrative and legislative changes 
regarding the provision of educational assistance 
to members of the Armed Forces and veterans, and their dependents, 
as the Secretary of Defense considers appropriate. 
(c) The Secretary shall include in each report submitted under 
this section- 
(1) information concerning the level of utilization of educational 
assistance and of expenditures under this chapter; and 
(2) such recommendations for administrative and legislative changes 
regarding the provision of educational assistance 
to members of the Armed Forces and veterans, and their dependents, 
as the Secretary considers appropriate. 

425 CH. 30-ALL-VOLUNTEER FORCE ED. ASST. Sec. 3036 

(d) No report shall be required under this section after January 
1, 2011. 
(Added Pub. L. 98-525, title VII, Sec. 702(a)(1), Oct. 19, 1984, 98 
Stat. 2563, Sec. 
1436; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), (4)(D), 
Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3036, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 
406; Pub. L. 105-368, title II, Sec. 207(c), Nov. 11, 1998, 112 
Stat. 3328; Pub. L. 
106-419, title IV, Sec. 403(c)(4), Nov. 1, 2000, 114 Stat. 1864; 
Pub. L. 109-444, Sec. 
4(b), Dec. 21, 2006, 120 Stat. 3308; Pub. L. 109-461, title III, 
Sec. 305(b), title X, 
Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3428, 3468.) 


CHAPTER 31 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


427 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 31-TRAINING AND REHABILITATION FOR 
VETERANS WITH SERVICE-CONNECTED DISABILITIES


Sec. 
3100. Purposes. 
3101. Definitions. 
3102. Basic entitlement. 
3103. Periods of eligibility. 
3104. Scope of services and assistance. 
3105. Duration of rehabilitation programs. 
3106. Initial and extended evaluations; determinations regarding 
serious employment handicap. 
3107. Individualized vocational rehabilitation plan. 
3108. Allowances. 
3109. Entitlement to independent living services and assistance. 
3110. Leaves of absence. 
3111. Regulations to promote satisfactory conduct and cooperation. 
3112. Revolving fund loans. 
3113. Vocational rehabilitation for hospitalized members of the 
Armed Forces 

and veterans. 
3114. Vocational rehabilitation outside the United States. 
3115. Rehabilitation resources. 
3116. Promotion of employment and training opportunities. 
3117. Employment assistance. 
3118. Personnel training, development, and qualifications. 
3119. Rehabilitation research and special projects. 
3120. Program of independent living services and assistance. 
3121. Veteransï¿½ Advisory Committee on Rehabilitation. 
3122. Longitudinal study of vocational rehabilitation programs. 

ï¿½ 3100. Purposes 

The purposes of this chapter are to provide for all services and 
assistance necessary to enable veterans with service-connected 
disabilities to achieve maximum independence in daily living and, to 
the maximum extent feasible, to become employable and to obtain 
and maintain suitable employment. 

(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2172, Sec. 1500; 
renumbered Sec. 3100, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 3101. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½employment handicapï¿½ï¿½ means an impairment, 
resulting in substantial part from a disability described in section 
3102(1)(A) of this title, of a veteranï¿½s ability to prepare for, obtain, 
or retain employment consistent with such veteranï¿½s abilities, 
aptitudes, and interests. 
(2) The term ï¿½ï¿½independence in daily livingï¿½ï¿½ means the ability 
of a veteran, without the services of others or with a reduced level 
429 


Sec. 3101 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 430 

of the services of others, to live and function within such veteranï¿½s 
family and community. 

(3) The term ï¿½ï¿½program of educationï¿½ï¿½ has the meaning provided 
in section 3452(b) of this title. 
(4) The term ï¿½ï¿½program of independent living services and assistanceï¿½ï¿½ 
includes (A) the services provided for in this chapter that 
are needed to enable a veteran to achieve independence in daily living, 
including such counseling, diagnostic, medical, social, psychological, 
and educational services as are determined by the Secretary to be 
needed for such veteran to achieve maximum independence in daily 
living, and (B) the assistance authorized by this 
chapter for such veteran. 
(5) The term ï¿½ï¿½rehabilitated to the point of employabilityï¿½ï¿½ 
means rendered employable in an occupation for which a vocational 
rehabilitation program has been provided under this chapter. 
(6) The term ï¿½ï¿½rehabilitation programï¿½ï¿½ means (A) a vocational 
rehabilitation program, or (B) a program of independent living 
services and assistance authorized under section 3120 of this title 
for a veteran for whom a vocational goal has been determined not 
to be currently reasonably feasible. 
(7) The term ï¿½ï¿½serious employment handicapï¿½ï¿½ means a significant 
impairment, resulting in substantial part from a service-connected 
disability rated at 10 percent or more, of a veteranï¿½s ability 
to prepare for, obtain, or retain employment consistent with such 
veteranï¿½s abilities, aptitudes, and interests. 
(8) The term ï¿½ï¿½vocational goalï¿½ï¿½ means a gainful employment 
status consistent with a veteranï¿½s abilities, aptitudes, and interests. 
(9) The term ï¿½ï¿½vocational rehabilitation programï¿½ï¿½ includes- 
(A) the services provided for in this chapter that are needed for the 
accomplishment of the purposes of this chapter, including such 
counseling, diagnostic, medical, social, psychological, independent 
living, economic, educational, vocational, 
and employment services as are determined by the Secretary 
to be needed- 
(i) in the case of a veteran for whom the achievement 
of a vocational goal has not been determined not to be currently 
reasonably feasible, (I) to determine whether a vocational goal is 
reasonably feasible, (II) to improve such veteranï¿½s potential to 
participate in a program of services designed to achieve a vocational 
goal, and (III) to enable such 
veteran to achieve maximum independence in daily living, 
and 
(ii) in the case of a veteran for whom the achievement 
of a vocational goal is determined to be reasonably feasible, to enable 
such veteran to become, to the maximum 
extent feasible, employable and to obtain and maintain 
suitable employment, and 
(B) the assistance authorized by this chapter for a veteran 
receiving any of the services described in clause (A) of this 
paragraph. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2172, Sec. 1501; 
amended Pub. L. 99-576, title III, Sec. 333(b)(1), Oct. 28, 1986, 100 
Stat. 3279; Pub. 

L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered 

431 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3103 

Sec. 3101 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; 
Pub. L. 104-275, title I, Sec. 101(a), Oct. 9, 1996, 110 Stat. 3323.) 

ï¿½ 3102. Basic entitlement 

A person shall be entitled to a rehabilitation program under 
the terms and conditions of this chapter if- 

(1) the person- 
(A) is- 
(i) a veteran who has a service-connected disability rated at 20 
percent or more which was incurred 
or aggravated in service on or after September 16, 
1940; or 
(ii) hospitalized or receiving outpatient medical 
care, services, or treatment for a service-connected disability pending 
discharge from the active military, 
naval, or air service, and the Secretary determines 
that- 
(I) the hospital (or other medical facility) providing the 
hospitalization, care, services, or treatment is doing so under 
contract or agreement with 
the Secretary concerned, or is under the jurisdiction of the 
Secretary of Veterans Affairs or the 
Secretary concerned; and 
(II) the person is suffering from a disability 
which will likely be compensable at a rate of 20 
percent or more under chapter 11 of this title; and 
(B) is determined by the Secretary to be in need of rehabilitation 
because of an employment handicap; or 
(2) the person is a veteran who- 
(A) has a service-connected disability rated at 10 percent which was 
incurred or aggravated in service on or 
after September 16, 1940; and 
(B) is determined by the Secretary to be in need of rehabilitation 
because of a serious employment handicap. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94
Stat. 2173, Sec. 1502; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
Pub. L. 101-508, title VIII, Sec. 8021(a), Nov. 5, 1990, 104 Stat. 
1388-347; Pub. L. 
102-16, Sec. 3(a), Mar. 22, 1991, 105 Stat. 49; renumbered Sec. 3102, 
Pub. L. 102- 
83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title IV, 
Sec. 404(a), Oct. 
29, 1992, 106 Stat. 4338; Pub. L. 104-275, title I, Sec. 101(b), 
Oct. 9, 1996, 110 Stat. 
3323.) 

ï¿½ 3103. Periods of eligibility 

(a) Except as provided in subsection (b), (c), or (d) of this section, 
a rehabilitation program may not be afforded to a veteran 
under this chapter after the end of the twelve-year period beginning 
on the date of such veteranï¿½s discharge or release from active 
military, naval, or air service. 
(b)(1) In any case in which the Secretary determines that a 
veteran has been prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility prescribed in subsection (a) of this section because a 
medical 
condition of such veteran made it infeasible for such veteran to 
participate in such a program, the twelve-year period of eligibility 
shall not run during the period of time that such veteran was so 


Sec. 3103 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 432 

prevented from participating in such a program, and such period 
of eligibility shall again begin to run on the first day following such 
veteranï¿½s recovery from such condition on which it is reasonably 
feasible, as determined under regulations which the Secretary shall 
prescribe, for such veteran to participate in such a program. 

(2) In any case in which the Secretary determines that a veteran has 
been prevented from participating in a vocational rehabilitation 
program under this chapter within the period of eligibility 
prescribed in subsection (a) of this section because- 
(A) such veteran had not met the requirement of a discharge or release 
from active military, naval, or air service 
under conditions other than dishonorable before (i) the nature 
of such discharge or release was changed by appropriate authority, or 
(ii) the Secretary determined, under regulations prescribed by the 
Secretary, that such discharge or release was 
under conditions other than dishonorable, or 
(B) such veteranï¿½s discharge or dismissal was, under section 5303 of 
this title, a bar to benefits under this title before 
the Secretary made a determination that such discharge or dismissal 
is not a bar to such benefits, 
the twelve-year period of eligibility shall not run during the period 
of time that such veteran was so prevented from participating in 
such a program. 

(3) In any case in which the Secretary determines that a veteran has 
been prevented from participating in a vocational rehabilitation 
program under this chapter within the period of eligibility prescribed 
in subsection (a) of this section because such veteran had not 
established the existence of a service-connected disability rated at 
10 percent or more, the twelve-year period of eligibility shall not 
run during the period such veteran was so prevented from participating 
in such a program. 
(c) In any case in which the Secretary determines that a veteran is in 
need of services to overcome a serious employment handicap, such 
veteran may be afforded a vocational rehabilitation program after the 
expiration of the period of eligibility otherwise applicable to such 
veteran if the Secretary also determines, on the 
basis of such veteranï¿½s current employment handicap and need for 
such services, that an extension of the applicable period of 
eligibility is necessary for such veteran and- 
(1) that such veteran had not previously been rehabilitated 
to the point of employability; 
(2) that such veteran had previously been rehabilitated to 
the point of employability but (A) the need for such services 
had arisen out of a worsening of such veteranï¿½s service-connected 
disability that precludes such veteran from performing 
the duties of the occupation for which such veteran was previously 
trained in a vocational rehabilitation program under 
this chapter, or (B) the occupation for which such veteran had 
been so trained is not suitable in view of such veteranï¿½s current 
employment handicap and capabilities; or 
(3) under regulations which the Secretary shall prescribe, 
that an extension of the period of eligibility of such veteran is 
necessary to accomplish the purposes of a rehabilitation program for 
such veteran. 

433 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3104 

(d) In any case in which the Secretary has determined that a 
veteranï¿½s disability or disabilities are so severe that the achievement 
of a vocational goal currently is not reasonably feasible, such 
veteran may be afforded a program of independent living services 
and assistance in accordance with the provisions of section 3120 of 
this title after the expiration of the period of eligibility otherwise 
applicable to such veteran if the Secretary also determines that an 
extension of the period of eligibility of such veteran is necessary for 
such veteran to achieve maximum independence in daily living. 
(e) In any case in which the Secretary has determined that a 
veteran was prevented from participating in a vocational rehabilitation 
program under this chapter within the period of eligibility 
otherwise prescribed in this section as a result of being ordered to 
serve on active duty under section 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304 of title 10, such period of eligibility shall 
not run for the period of such active duty service plus four months. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2173, Sec. 1503; 
amended Pub. L. 99-576, title III, Sec. 333(b)(2), Oct. 28, 1986, 100 
Stat. 3279; Pub. 

L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092;
Pub. L. 102- 
40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered 
Sec. 3103 and 
amended, Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 103- 
446, title XII, Sec. 1201(d)(8), Nov. 2, 1994, 108 Stat. 4684; 
Pub. L. 104-275, title 
I, Sec. 101(c), Oct. 9, 1996, 110 Stat. 3324; Pub. L. 107-103, 
title I, Sec. 103(c)(2), 
Dec. 27, 2001, 115 Stat. 979; Pub. L. 107-330, title III, Sec. 
308(h), Dec. 6, 2002, 
116 Stat. 2829.) 
ï¿½ 3104. Scope of services and assistance 

(a) Services and assistance which the Secretary may provide 
under this chapter, pursuant to regulations which the Secretary 
shall prescribe, include the following: 
(1) Evaluation, including periodic reevaluations as appropriate with 
respect to a veteran participating in a rehabilitation program, of the 
potential for rehabilitation of a veteran, 
including diagnostic and related services (A) to determine 
whether the veteran has an employment handicap or a serious 
employment handicap and whether a vocational goal is reasonably 
feasible for such veteran, and (B) to provide a basis for 
planning a suitable vocational rehabilitation program or a program of 
services and assistance to improve the vocational rehabilitation 
potential or independent living status of such veteran, as appropriate. 
(2) Educational, vocational, psychological, employment, 
and personal adjustment counseling. 
(3) An allowance and other appropriate assistance, as authorized by 
section 3108 of this title. 
(4) A work-study allowance as authorized by section 3485 
of this title. 
(5) Placement services to effect suitable placement in employment, and 
postplacement services to attempt to insure satisfactory adjustment in 
employment. 
(6) Personal adjustment and work adjustment training. 
(7)(A) Vocational and other training services and assistance, including 
individualized tutorial assistance, tuition, fees, 
books, supplies, handling charges, licensing fees, and equipment and 
other training materials determined by the Secretary 


Sec. 3105 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 434 

to be necessary to accomplish the purposes of the rehabilitation 
program in the individual case. 

(B) Payment for the services and assistance provided 
under subparagraph (A) of this paragraph shall be made from 
funds available for the payment of readjustment benefits. 
(8) Loans as authorized by section 3112 of this title. 
(9) Treatment, care, and services described in chapter 17 
of this title. 
(10) Prosthetic appliances, eyeglasses, and other corrective 
and assistive devices. 
(11) Services to a veteranï¿½s family as necessary for the effective 
rehabilitation of such veteran. 
(12) For veterans with the most severe service-connected 
disabilities who require homebound training or self-employment, or both 
homebound training and self-employment, such 
license fees and essential equipment, supplies, and minimum 
stocks of materials as the Secretary determines to be necessary 
for such a veteran to begin employment and are within the criteria and 
cost limitations that the Secretary shall prescribe in 
regulations for the furnishing of such fees, equipment, supplies, and 
stocks. 
(13) Travel and incidental expenses under the terms and 
conditions set forth in section 111 of this title, plus, in the case 
of a veteran who because of such veteranï¿½s disability has transportation 
expenses in addition to those incurred by persons not 
so disabled, a special transportation allowance to defray such 
additional expenses during rehabilitation, job seeking, and the 
initial employment stage. 
(14) Special services (including services related to blindness and 
deafness) including- 
(A) language training, speech and voice correction, 
training in ambulation, and one-hand typewriting; 
(B) orientation, adjustment, mobility, reader, interpreter, and related 
services; and 
(C) telecommunications, sensory, and other technical 
aids and devices. 
(15) Services necessary to enable a veteran to achieve maximum 
independence in daily living. 
(16) Other incidental goods and services determined by the 
Secretary to be necessary to accomplish the purposes of a 
rehabilitation program in an individual case. 
(b) A rehabilitation program (including individual courses) to 
be pursued by a veteran shall be subject to the approval of the 
Secretary. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2174, Sec. 1504; 
amended Pub. L. 100-323, Sec. 11(a)(3)(A), May 20, 1988, 102 Stat. 
568; Pub. L. 
101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
Pub. L. 102-16, 
Sec. 3(b)(1), Mar. 22, 1991, 105 Stat. 49; Pub. L. 102-54, Sec. 
14(c)(3), June 13, 
1991, 105 Stat. 285; renumbered Sec. 3104 and amended Pub. L. 102-83, 
Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-275, title I, Sec. 
101(d), Oct. 9, 1996, 
110 Stat. 3324.) 

ï¿½ 3105. Duration of rehabilitation programs 

(a) In any case in which the Secretary is unable to determine 
whether it currently is reasonably feasible for a veteran to achieve 

435 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3105 

a vocational goal, the period of extended evaluation under section 
3106(c) of this title may not exceed twelve months, except that such 
period may be extended for additional periods of up to six months 
each if the Secretary determines before granting any such extension 
that it is reasonably likely that, during the period of any such 
extension, a determination can be made whether the achievement 
of a vocational goal is reasonably feasible in the case of such veteran. 

(b) Except as provided in subsection (c) of this section, the period of 
a vocational rehabilitation program for a veteran under this 
chapter following a determination of the current reasonable feasibility 
of achieving a vocational goal may not exceed forty-eight 
months, except that the counseling and placement and 
postplacement services described in section 3104(a)(2) and (5) of 
this title may be provided for an additional period not to exceed 
eighteen months in any case in which the Secretary determines the 
provision of such counseling and services to be necessary to accomplish 
the purposes of a rehabilitation program in the individual 
case. 
(c) The Secretary may extend the period of a vocational rehabilitation 
program for a veteran to the extent that the Secretary 
determines that an extension of such period is necessary to enable 
such veteran to achieve a vocational goal if the Secretary also 
determines- 
(1) that such veteran had previously been rehabilitated to 
the point of employability but (A) such veteranï¿½s need for further 
vocational rehabilitation has arisen out of a worsening of 
such veteranï¿½s service-connected disability that precludes such 
veteran from performing the duties of the occupation for which 
such veteran had been so rehabilitated, or (B) the occupation 
for which such veteran had been so rehabilitated is not suitable in 
view of such veteranï¿½s current employment handicap 
and capabilities; or 
(2) under regulations which the Secretary shall prescribe, 
that such veteran has a serious employment handicap and that 
an extension of such period is necessary to accomplish the purposes of 
a rehabilitation program for such veteran. 
(d)(1) Except as provided in paragraph (2), the period of a pro
gram of independent living services and assistance for a veteran 
under this chapter (following a determination by the Secretary that 
such veteranï¿½s disability or disabilities are so severe that the 
achievement of a vocational goal currently is not reasonably feasible) 
may not exceed twenty-four months. 

(2)(A) The period of a program of independent living services 
and assistance for a veteran under this chapter may exceed twenty-
four months as follows: 

(i) If the Secretary determines that a longer period is necessary and 
likely to result in a substantial increase in the veteranï¿½s level of 
independence in daily living. 
(ii) If the veteran served on active duty during the Post9/ 11 Global 
Operations period and has a severe disability (as 
determined by the Secretary for purposes of this clause) incurred or 
aggravated in such service. 

Sec. 3106 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 436 

(B) In this paragraph, the term ï¿½ï¿½Post-9/11 Global Operations 
periodï¿½ï¿½ means the period of the Persian Gulf War beginning on 
September 11, 2001, and ending on the date thereafter prescribed 
by Presidential proclamation or by law. 
(e)(1) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of a subsistence allowance 
and other assistance described in paragraph (2) shall not- 

(A) be charged against any entitlement of any veteran 
under this chapter; or 
(B) be counted toward the aggregate period for which section 3695 of 
this title limits an individualï¿½s receipt of allowance 
or assistance. 
(2) The payment of the subsistence allowance and other assistance 
referred to in paragraph (1) is the payment of such an allowance or 
assistance for the period described in paragraph (3) to a 
veteran for participation in a vocational rehabilitation program 
under this chapter if the Secretary finds that the veteran had to 
suspend or discontinue participation in such vocational rehabilitation 
program as a result of being ordered to serve on active duty 
under section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of 
title 10. 
(3) The period for which, by reason of this subsection, a subsistence
allowance and other assistance is not charged against entitlement or 
counted toward the applicable aggregate period under 
section 3695 of this title shall be the period of participation in 
the 
vocational rehabilitation program for which the veteran failed to 
receive credit or with respect to which the veteran lost training 
time, as determined by the Secretary. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2176, Sec. 1505; 
amended Pub. L. 99-576, title III, Sec. 333(b)(3), Oct. 28, 1986, 
100 Stat. 3279; Pub. 

L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered 
Sec. 3105 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406; 
Pub. L. 104-275, title I, Sec. 101(e), Oct. 9, 1996, 110 Stat. 3324; 
Pub. L. 107-103, 
title I, Sec. 103(c)(1), Dec. 27, 2001, 115 Stat. 979; Pub. L. 
110-389, title III, Sec. 
331, Oct. 10, 2008, 122 Stat. 4170.) 
ï¿½ 3106. Initial and extended evaluations; determinations regarding 
serious employment handicap 

(a) The Secretary shall provide any veteran who has a service-
connected disability rated at 10 percent or more and who applies 
for benefits under this chapter with an initial evaluation consisting 
of such services described in section 3104(a)(1) of this title as are 
necessary (1) to determine whether such veteran is entitled to and 
eligible for benefits under this chapter, and (2) in the case of a 
veteran who is determined to be entitled to and eligible for such 
benefits, to determine- 
(A) whether such veteran has a serious employment handicap, and 
(B) whether the achievement of a vocational goal currently 
is reasonably feasible for such veteran if it is reasonably feasible to 
make such determination without extended evaluation. 
(b) In any case in which the Secretary has determined that a 
veteran has a serious employment handicap and that the achievement of a 
vocational goal currently is reasonably feasible for such 
veteran, such veteran shall be provided an individualized written 

437 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3107 

plan of vocational rehabilitation developed under section 3107(a) of 
this title. 

(c) In any case in which the Secretary has determined that a 
veteran has a serious employment handicap but the Secretary is 
unable to determine, in an initial evaluation pursuant to subsection (a) 
of this section, whether or not the achievement of a vocational goal 
currently is reasonably feasible, such veteran shall be 
provided with an extended evaluation consisting of the services 
described in section 3104(a)(1) of this title, such services under this 
chapter as the Secretary determines necessary to improve such veteranï¿½s 
potential for participation in a program of services designed 
to achieve a vocational goal and enable such veteran to achieve 
maximum independence in daily living, and assistance as authorized by 
section 3108 of this title. 
(d) In any case in which the Secretary has determined that a 
veteran has a serious employment handicap and also determines, 
following such initial and any such extended evaluation, that 
achievement of a vocational goal currently is not reasonably feasible, 
the Secretary shall determine whether the veteran is capable 
of participating in a program of independent living services and 
assistance under section 3120 of this title. 
(e) The Secretary shall in all cases determine as expeditiously 
as possible whether the achievement of a vocational goal by a veteran 
currently is reasonably feasible. In the case of a veteran provided 
extended evaluation under subsection (c) of this section (including any 
periods of extensions under section 3105(a) of this 
title), the Secretary shall make such determination not later than 
the end of such extended evaluation or period of extension, as the 
case may be. In determining whether the achievement of a vocational goal 
currently is reasonably feasible, the Secretary shall resolve any 
reasonable doubt in favor of determining that such 
achievement currently is reasonably feasible. 
(f) In connection with each period of extended evaluation of a 
veteran and each rehabilitation program for a veteran who is determined 
to have a serious employment handicap, the Secretary shall 
assign a Department of Veterans Affairs employee to be responsible 
for the management and followup of the provision of all services 
(including appropriate coordination of employment assistance 
under section 3117 of this title) and assistance under this chapter 
to such veteran. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2176, Sec. 1506; 
amended Pub. L. 99-576, title III, Sec. 333(b)(4), Oct. 28, 1986, 100 
Stat. 3279; Pub. 

L. 101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 
3106 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. 
L. 103-446, title XII, Sec. 1201(d)(9), Nov. 2, 1994, 108 Stat. 4684; 
Pub. L. 104-275, 
title I, Sec. 101(f)(1), Oct. 9, 1996, 110 Stat. 3324.) 
ï¿½ 3107. Individualized vocational rehabilitation plan 

(a) The Secretary shall formulate an individualized written 
plan of vocational rehabilitation for a veteran described in section 
3106(b) of this title. Such plan shall be developed with such veteran 
and shall include, but not be limited to (1) a statement of 
long-range rehabilitation goals for such veteran and intermediate 
rehabilitation objectives related to achieving such goals, (2) a 
statement of the specific services (which shall include counseling in
all 

Sec. 3108 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 438 

cases) and assistance to be provided under this chapter, (3) the 
projected date for the initiation and the anticipated duration of each 
such service, and (4) objective criteria and an evaluation procedure 
and schedule for determining whether such objectives and goals are 
being achieved. 

(b) The Secretary shall review at least annually the plan formulated 
under subsection (a) of this section for a veteran and shall 
afford such veteran the opportunity to participate in each such review. 
On the basis of such review, the Secretary shall (1) redevelop 
such plan with such veteran if the Secretary determines, under 
regulations which the Secretary shall prescribe, that redevelopment of 
such plan is appropriate, or (2) disapprove redevelopment 
of such plan if the Secretary determines, under such regulations, 
that redevelopment of such plan is not appropriate. 
(c)(1) Each veteran for whom a plan has been developed or redeveloped 
under subsection (a) or (b)(1), respectively, of this section 
or in whose case redevelopment of a plan has been disapproved 
under subsection (b)(2) of this section, shall be informed of such 
veteranï¿½s opportunity for a review as provided in paragraph (2) of 
this subsection. 

(2) In any case in which a veteran does not agree to such plan 
as proposed, to such plan as redeveloped, or to the disapproval of 
redevelopment of such plan, such veteran may submit to the person 
described in section 3106(f) of this title a written statement 
containing such veteranï¿½s objections and request a review of such plan 
as proposed or redeveloped, or a review of the disapproval of 
redevelopment of such plan, as the case may be. 
(3) The Secretary shall review the statement submitted under 
paragraph (2) of this subsection and the plan as proposed or as 
redeveloped, and, if applicable, the disapproval of redevelopment of 
the plan, and render a decision on such review not later than ninety 
days after the date on which such veteran submits such statement, 
unless the case is one for which a longer period for review, 
not to exceed 150 days after such veteran submits such statement, 
is allowed under regulations prescribed by the Secretary, in which 
case the Secretary shall render a decision no later than the last 
day of the period prescribed in such regulations. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2177, Sec. 1507; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3107 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 
105 Stat. 406; Pub. L. 104-275, title I, Sec. 101(f)(2)(A), Oct. 9, 
1996, 110 Stat. 
3325.) 

ï¿½ 3108. Allowances 

(a)(1) Except in the case of a veteran who makes an election 
under subsection (f) of this section and subject to the provisions of 
paragraph (3) of this subsection, each veteran shall be paid a 
subsistence allowance in accordance with this section during a period 
determined by the Secretary to be a period of such veteranï¿½s 
participation under this chapter in a rehabilitation program. 

(2) In any case in which the Secretary determines, at the conclusion of 
such veteranï¿½s pursuit of a vocational rehabilitation program under 
this chapter, that such veteran has been rehabilitated 
to the point of employability, such veteran shall be paid a subsist

439 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3108 

ence allowance, as prescribed in this section for full-time training 
for the type of program that the veteran was pursuing, for two 
months while satisfactorily following a program of employment 
services provided under section 3104(a)(5) of this title. 

(3) A subsistence allowance may not be paid under this chapter 
to a veteran for any period during which such veteran is being provided 
with an initial evaluation under section 3106(a) of this title 
or during which such veteran is being provided only with counseling or 
with placement or postplacement services under section 
3105(b) of this title. 
(b)(1) Except as otherwise provided in this section, the Secretary shall 
determine the subsistence allowance to be paid to a 
veteran under this chapter in accordance with the following table, 
which shall be the monthly amount shown in column II, III, IV, or 
V (whichever is applicable as determined by the veteranï¿½s dependency 
status) opposite the appropriate type of program being pursued as 
specified in column I: 

Column I Column II Column III Column IV Column V 
Type of program No dependents 
One dependent 
Two dependents More than two dependents 
Institutional training: 
Full-time ..................... 
Three-quarter-time ..... 
Half-time .................... 
Farm cooperative, apprentice, or other on-
job training: 
Full-time ..................... 
Extended evaluation: 
Full-time ..................... 
Independent living training: 
Full-time ..................... 
Three-quarter-time ..... 
Half-time .................... 
$366 
275 
184 
320 
366 
366 
275 
184 
$454 
341 
228 
387 
454 
454 
341 
228 
$535 
400 
268 
446 
535 
535 
400 
268 
The amount in column IV, plus the following for each dependent in 
excess of two: 
$39 
30 
20 
29 
39 
39 
30 
20 

(2) With respect to the fiscal year beginning on October 1, 
1994, the Secretary shall provide a percentage increase in the 
monthly rates payable under paragraph (1) of this subsection equal 
to the percentage by which the Consumer Price Index (all items, 
United States city average published by the Bureau of Labor Statistics) 
for the 12-month period ending June 30, 1994, exceeds such 
Consumer Price Index for the 12-month period ending June 30, 
1993. 
(3) With respect to any fiscal year beginning on or after October 1, 
1995, the Secretary shall continue to pay, in lieu of the rates 
payable under paragraph (1) of this subsection, the monthly rates 
payable under this subsection for the previous fiscal year and shall 
provide, for any such fiscal year, a percentage increase in such 
rates equal to the percentage by which- 
(A) the Consumer Price Index (all items, United States city 
average) for the 12-month period ending on June 30 preceding 
the beginning of the fiscal year for which the increase is made, 
exceeds 

Sec. 3108 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 440 

(B) such Consumer Price Index for the 12-month period 
preceding the 12-month period described in subparagraph (A). 
(c)(1) In any case in which the vocational rehabilitation pro
gram for a veteran includes training on the job by an employer in 
any month, such employer shall be required to submit to the Secretary 
a statement in writing showing any wage, compensation, or 
other income paid (directly or indirectly) by the employer to such 
veteran for such month. Based upon such written statement, the 
Secretary is authorized to reduce the subsistence allowance of such 
veteran to an amount considered equitable and just in accordance 
with criteria which the Secretary shall establish in regulations 
which the Secretary shall prescribe. 

(2) A veteran pursuing on-job training or work experience as 
part of a vocational rehabilitation program in a Federal, State, or 
local government agency or federally recognized Indian tribe under 
the provisions of section 3115(a)(1) of this title without pay or for 
nominal pay shall be paid the appropriate subsistence allowance 
rate provided in subsection (b) of this section for an institutional 
program. 
(d)(1) The Secretary shall, in accordance with regulations 
which the Secretary shall prescribe, define full-time and each part-
time status for veterans participating in rehabilitation programs 
under this chapter. 

(2) A veteran participating in extended evaluation on less than 
a full-time basis may be paid a proportional subsistence allowance 
in accordance with regulations which the Secretary shall prescribe. 
(e) In any case in which a veteran is pursuing a rehabilitation 
program on a residential basis in a specialized rehabilitation 
facility, the Secretary may (1) pay to such facility the cost of 
such veteranï¿½s room and board in lieu of payment to such veteran of the 
subsistence allowance (not including any portion payable for any 
dependents) payable under subsection (b) of this section, and (2) 
pay to such veteran that portion of the allowance for dependents 
payable, as determined by such veteranï¿½s dependency status, under 
subsection (b) of this section for a full-time institutional program. 
(f)(1)(A) In any case in which the Secretary determines that a 
veteran is eligible for and entitled to rehabilitation under this 
chapter, to the extent that such veteran has remaining eligibility 
for and entitlement to educational assistance benefits under chapter 30 
of this title, such veteran may elect, as part of a vocational 
rehabilitation program under this chapter, to pursue an approved 
program of education and receive allowances and other forms of 
assistance equivalent to those authorized for veterans enrolled under 
chapter 30 of this title, if the Secretary approves the educational, 
professional, or vocational objective chosen by such veteran for 
such program. 

(B) In the event that such veteran makes such an election, the 
terms and conditions applicable to the pursuit of a comparable program 
of education and the payment of allowances and provision of 
assistance under chapter 30 of this title for such a comparable 
program shall be applied to the pursuit of the approved program of 
education under this chapter. 
(2) A veteran who is receiving an allowance pursuant to paragraph 
(1) of this subsection may not receive any of the services or 

441 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3109 

assistance described in section 3104(a)(3), (7), and (8) of this title 
(other than an allowance and other assistance under this subsection). 

(g)(1) Notwithstanding any other provision of this title and 
subject to the provisions of paragraph (2) of this subsection, no 
subsistence allowance may be paid under this section in the case of 
any veteran who is pursuing a rehabilitation program under this 
chapter while incarcerated in a Federal, State, local, or other penal 
institution or correctional facility for conviction of a felony. 

(2) Paragraph (1) of this subsection shall not apply in the case 
of any veteran who is pursuing a rehabilitation program under this 
chapter while residing in a halfway house or participating in a 
work-release program in connection with such veteranï¿½s conviction 
of a felony. 
(h) Notwithstanding any other provision of this title, the 
amount of subsistence allowance, or other allowance under subsection 
(f) of this section, that may be paid to a veteran pursuing 
a rehabilitation program for any month for which such veteran receives 
compensation at the rate prescribed in section 1114(j) of this 
title as the result of hospital treatment (not including post-hospital 
convalescence) or observation at the expense of the Department of 
Veterans Affairs may not exceed, when added to any compensation 
to which such veteran is entitled for such month, an amount equal 
to the greater of- 
(1) the sum of- 
(A) the amount of monthly subsistence or other allowance that would 
otherwise be paid to such veteran under 
this section, and 
(B) the amount of monthly compensation that would 
be paid to such veteran if such veteran were not receiving 
compensation at such rate as the result of such hospital 
treatment or observation; or 
(2) the amount of monthly compensation payable under 
section 1114(j) of this title. 
(i) Payment of a subsistence allowance may be made in advance in 
accordance with the provisions of section 3680(d) of this 
title. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 
Stat. 2178, Sec. 1508; 
amended Pub. L. 97-306, title II, Sec. 205(a), Oct. 14, 1982, 
96 Stat. 1434; Pub. L. 
98-525, title VII, Sec. 703(a), Oct. 19, 1984, 98 Stat. 2564; 
Pub. L. 98-543, title II, 
Sec. 201, Oct. 24, 1984, 98 Stat. 2740; Pub. L. 101-237, title 
IV, Sec. 402(a), 
423(b)(1), Dec. 18, 1989, 103 Stat. 2078, 2092; Pub. L. 102-16, 
Sec. 3(c), Mar. 22, 
1991, 105 Stat. 49; renumbered Sec. 3108 and amended Pub. L. 
102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title IV, 
Sec. 405(a), (b), Oct. 
29, 1992, 106 Stat. 4338, 4339; Pub. L. 103-446, title VI, 
Sec. 602(b), Nov. 2, 1994, 
108 Stat. 4671; Pub. L. 104-275, title I, Sec. 101(g), Oct. 9, 
1996, 110 Stat. 3325; 
Pub. L. 109-461, title X, Sec. 1002(b), Dec. 22, 2006, 120 
Stat. 3465.) 

ï¿½ 3109. Entitlement to independent living services and assistance 

In any case in which the Secretary has determined under section 3106(e) 
of this title that the achievement of a vocational goal 
by a veteran currently is not reasonably feasible, such veteran 
shall be entitled, in accordance with the provisions of section 3120 
of this title, to a program of independent living services and assist


Sec. 3110 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 442 

ance designed to enable such veteran to achieve maximum inde
pendence in daily living.
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2181, Sec. 1509; 
amended Pub. L. 99-576, title III, Sec. 333(b)(5), Oct. 28, 1986, 
100 Stat. 3279; Pub. 


L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered 
Sec. 3109 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; 
Pub. L. 104-275, title I, Sec. 101(f)(2)(B), Oct. 9, 1996, 110 Stat. 
3325.) 
ï¿½ 3110. Leaves of absence 

The Secretary shall prescribe such regulations as the Secretary 
determines necessary for granting leaves of absence to veterans 
pursuing rehabilitation programs under this chapter. During authorized 
leaves of absence, a veteran shall be considered to be pursuing such 
program. 

(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 2181, 
Sec. 1510; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 
Stat. 2092; 
renumbered Sec. 3110, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ 3111. Regulations to promote satisfactory conduct and cooperation 

The Secretary shall prescribe such rules and regulations as the 
Secretary determines necessary to promote satisfactory conduct 
and cooperation on the part of veterans who are pursuing rehabilitation 
programs under this chapter. In any case in which the Secretary 
determines that a veteran has failed to maintain satisfactory 
conduct or cooperation, the Secretary may, after determining that 
all reasonable counseling efforts have been made and are not reasonably 
likely to be effective, discontinue services and assistance 
unless the Secretary determines that mitigating circumstances 
exist. In any case in which such services and assistance have been 
discontinued, the Secretary may reinstitute such services and assistance 
only if the Secretary determines that- 

(1) the cause of the unsatisfactory conduct or cooperation 
of such veteran has been removed; and 
(2) the rehabilitation program which such veteran proposes 
to pursue (whether the same or revised) is suitable to such veteranï¿½s 
abilities, aptitudes, and interests. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2181, Sec. 1511; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3111, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 3112. Revolving fund loans 

The revolving fund established pursuant to part VII of Veterans 
Regulation Numbered 1(a) is continued in effect, and may be 
used by the Secretary, under regulations prescribed by the Secretary, 
for making advances, not in excess of twice the amount of 
the full-time institutional monthly subsistence allowance for a veteran 
with no dependents (as provided in section 3108(b) of this 
title) to veterans pursuing rehabilitation programs under this chapter. 
Such advances, and advances from such fund made before the 
effective date of the Veteransï¿½ Rehabilitation and Education 
Amendments of 1980, shall bear no interest and shall be repaid in 
such installments, as may be determined by the Secretary, by proper 
deductions from future payments of compensation, pension, sub


443 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3115 

sistence allowance, educational assistance allowance, or retirement 
pay. 

(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2181, Sec. 1512; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), 
Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3112 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3113. Vocational rehabilitation for hospitalized members 
of the Armed Forces and veterans 

(a) Services and assistance may be provided under this chapter 
to a person described in subparagraphs (A)(ii) and (B) of section 
3102(1) of this title who is hospitalized pending discharge from active 
military, naval, or air service. In such cases, no subsistence allowance 
shall be paid. 
(b) Services and assistance may be provided under this chapter 
to a veteran who is receiving care in a Department of Veterans Affairs 
hospital, nursing home, or domiciliary facility or in any other 
hospital or medical facility. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2181, Sec. 1513; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(B), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3113 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 
105 Stat. 406; Pub. L. 103-446, title XII, Sec. 1201(d)(10), Nov. 2, 
1994, 108 Stat. 
4684.) 

ï¿½ 3114. Vocational rehabilitation outside the United States 

Under regulations which the Secretary shall prescribe, a vocational 
rehabilitation program under this chapter may be provided 
outside the United States if the Secretary determines that such 
training is (1) necessary in the particular case to provide the 
preparation needed to render a veteran employable and enable such 
veteran to obtain and retain suitable employment, and (2) in the best 
interest of such veteran and the Federal Government. 

(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2182, Sec. 1514; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3114, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 3115. Rehabilitation resources 

(a) Notwithstanding any other provision of law, for the purpose 
of providing services under this chapter, the Secretary may- 
(1) use the facilities of any Federal agency (including the 
Department of Veterans Affairs), of any State or local government 
agency receiving Federal financial assistance, or of any 
federally recognized Indian tribe, to provide training or work 
experience as part or all of a veteranï¿½s vocational rehabilitation 
program without pay or for nominal pay in any case in which 
the Secretary determines that such training or work experience 
is necessary to accomplish such veteranï¿½s rehabilitation; 
(2) use the facilities, staff, and other resources of the Department 
of Veterans Affairs; 
(3) employ such additional personnel and experts as the 
Secretary considers necessary; and 
(4) use the facilities and services of any Federal, State, or 
other public agency, any agency maintained by joint Federal 
and State contributions, any federally recognized Indian tribe, 

Sec. 3116 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 444 

any public or private institution or establishment, and any pri

vate individual. 

(b)(1) While pursuing on-job training or work experience under 
subsection (a)(1) of this section at a Federal agency, a veteran shall 
be considered to be an employee of the United States for the purposes of 
the benefits of chapter 81 of title 5, but not for the purposes of laws 
administered by the Office of Personnel Management. 

(2) Except as provided in chapter 17 of this title, hospital care 
and medical services provided under this chapter shall be furnished 
in facilities over which the Secretary has direct jurisdiction. 
(3) Use of the facilities of a State or local government agency 
under subsection (a)(1) of this section or use of facilities and 
services under subsection (a)(4) of this section, shall be procured 
through contract, agreement, or other cooperative arrangement. 
(4) The Secretary shall prescribe regulations providing for the 
monitoring of training and work experiences provided under such 
subsection (a)(1) at State or local government agencies and otherwise 
ensuring that such training or work experience is in the best 
interest of the veteran and the Federal Government. 
(c) For purposes of this section, the term ï¿½ï¿½federally recognized 
Indian tribeï¿½ï¿½ means any Indian tribe, band, nation, pueblo, or 
other organized group or community, including any Alaska Native 
village or regional corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act, which is recognized as 
eligible for the special programs and services provided by 
the United States to Indians because of their status as Indians. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2182, Sec. 1515; 
amended Pub. L. 100-689, title II, Sec. 201, Nov. 18, 1988, 102 Stat. 
4175; Pub. L. 
101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 
3115, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
103-446, title 
VI, Sec. 602(a), Nov. 2, 1994, 108 Stat. 4671.) 

ï¿½ 3116. Promotion of employment and training opportunities 

(a) The Secretary shall actively promote the development and 
establishment of employment, training, and other related opportunities 
for (1) veterans who are participating or who have participated in a 
rehabilitation program under this chapter, (2) veterans 
with service-connected disabilities, and (3) other veterans to whom 
the employment emphases set forth in chapter 42 of this title 
apply. The Secretary shall promote the development and establishment of 
such opportunities through Department of Veterans Affairs 
staff outreach efforts to employers and through Department of Veterans 
Affairs coordination with Federal, State, and local governmental agencies 
and appropriate nongovernmental organizations. 
In carrying out the provisions of this subsection with respect to 
veterans referred to in clause (3) of the first sentence of this 
subsection, the Secretary shall place particular emphasis on the needs 
of categories of such veterans on the basis of applicable rates of 
unemployment. 
(b)(1) The Secretary, pursuant to regulations prescribed in accordance 
with paragraph (3) of this subsection, may make payments to employers for 
providing on-job training to veterans who 
have been rehabilitated to the point of employability in individual 
cases in which the Secretary determines that such payment is nec


445 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3117 

essary to obtain needed on-job training or to begin employment. 
Such payments may not exceed the direct expenses incurred by 
such employers in providing such on-job training or employment 
opportunity. 

(2) In any case in which a veteran described in paragraph (1) 
of this subsection participates in on-job training described in such 
paragraph that satisfies the criteria for payment of a training 
assistance allowance under section 3687 of this title, such veteran 
shall, to the extent that such veteran has remaining eligibility for 
and entitlement to such allowance, be paid such allowance. 
(3) The Secretary shall prescribe regulations under this subsection in 
consultation with the Secretary of Labor and, in prescribing such 
regulations, shall take into consideration the provisions of title V of 
the Rehabilitation Act of 1973 (29 U.S.C. ch. 16, 
subch. V) and section 4212 of this title, and regulations prescribed 
under such provisions. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat.
2182, Sec. 1516; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3116 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 3117. Employment assistance 

(a)(1) A veteran with a service-connected disability rated at 10 
percent or more who has participated in a vocational rehabilitation 
program under this chapter or a similar program under the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) and who the Secretary 
has determined to be employable shall be furnished assistance in 
obtaining employment consistent with such veteranï¿½s abilities, 
aptitudes, interests, and employment handicap, including assistance 
necessary to insure that such veteran receives the benefit of any 
applicable provisions of law or regulation providing for special 
consideration or emphasis or preference for such veteran in employment 
or training. 

(2) Assistance provided under this subsection may include- 
(A) direct placement of such veteran in employment; 
(B) utilization of employment, training, and placement 
services under chapter 41 of this title; and 
(C) utilization of the job development and placement services of (i) 
programs under the Rehabilitation Act of 1973, (ii) 
the State employment service and the Veteransï¿½ Employment 
Service of the Department of Labor, (iii) the Office of Personnel 
Management, (iv) any other public or nonprofit organization 
having placement services available, and (v) any for-profit entity in a 
case in which the Secretary has determined that services necessary to 
provide such assistance are available from 
such entity and that comparably effective services are not 
available, or cannot be obtained cost-effectively, from the entities 
described in subclauses (i) through (iv) of this clause. 
(b)(1) In any case in which a veteran has completed a voca
tional rehabilitation program for self-employment in a small business 
enterprise under this chapter, the Secretary shall assist such 
veteran in securing, as appropriate, a loan under subchapter IV of 
chapter 37 of this title and shall cooperate with the Small Business 
Administration to assist such veteran to secure a loan for the pur


Sec. 3118 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 446 

chase of equipment needed to establish such veteranï¿½s own business and 
to insure that such veteran receives the special consideration provided 
for in section 4(b)(1) of the Small Business Act (15 

U.S.C. 633(b)(1)). 
(2) In the case of a veteran described in clause (12) of section 
3104(a) of this title who has trained under a State rehabilitation 
program with the objective of self-employment in a small business 
enterprise, the Secretary may, subject to the limitations and criteria 
provided for in such clause, provide such veteran with such 
supplementary equipment and initial stocks and supplies as are 
determined to be needed by such veteran if such supplementary 
equipment and initial stocks and supplies, or assistance in acquiring 
them, are not available through the State program or other 
sources. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2183, Sec. 1517; 
amended Pub. L. 97-72, title III, Sec. 303(k), Nov. 3, 1981, 95 
Stat. 1060; Pub. L. 
100-689, title II, Sec. 202(a), Nov. 18, 1988, 102 Stat. 4175; 
Pub. L. 101-237, title 
IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 
102-54, Sec. 14(c)(4), 
June 13, 1991, 105 Stat. 285; renumbered Sec. 3117 and amended 
Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-275, 
title I, Sec. 101(h), 
Oct. 9, 1996, 110 Stat. 3325; Pub. L. 107-288, Sec. 4(e)(2), 
Nov. 7, 2002, 116 Stat. 
2044; Pub. L. 109-233, title V, Sec. 503(6), June 15, 2006, 120 
Stat. 416.) 

ï¿½ 3118. Personnel training, development, and qualifications 

(a) The Secretary shall provide a program of ongoing professional 
training and development for Department of Veterans Affairs counseling 
and rehabilitation personnel engaged in providing 
rehabilitation services under this chapter. The objective of such 
training shall be to insure that rehabilitation services for disabled 
veterans are provided in accordance with the most advanced knowledge,
methods, and techniques available for the rehabilitation of 
handicapped persons. For this purpose, the Secretary may employ 
the services of consultants and may make grants to and contract 
with public or private agencies (including institutions of higher 
learning) to conduct such training and development. 
(b) The Secretary shall coordinate with the Commissioner of 
the Rehabilitation Services Administration in the Department of 
Education and the Assistant Secretary for Veteransï¿½ Employment 
in the Department of Labor in planning and carrying out personnel 
training in areas of mutual programmatic concern. 
(c) Notwithstanding any other provision of law, the Secretary 
shall establish such qualifications for personnel providing evaluation 
and rehabilitation services to veterans under this chapter and 
for employees performing the functions described in section 3106(f) 
of this title as the Secretary determines are necessary and appropriate 
to insure the quality of rehabilitation programs under this 
chapter. In establishing such qualifications, the Secretary shall 
take into account the qualifications established for comparable personnel 
under the Rehabilitation Act of 1973 (29 U.S.C. ch. 16). 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 2184, 
Sec. 1518; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3118 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 
105 Stat. 406; Pub. L. 104-275, title I, Sec. 101(f)(2)(C), Oct. 9, 
1996, 110 Stat. 
3325.) 


447 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3120 

ï¿½ 3119. Rehabilitation research and special projects 

(a) The Secretary shall carry out an ongoing program of activities for 
the purpose of advancing the knowledge, methods, techniques, and 
resources available for use in rehabilitation programs 
for veterans. For this purpose, the Secretary shall conduct and provide 
support for the development or conduct, or both the development and 
conduct, of- 
(1) studies and research concerning the psychological, educational, 
employment, social, vocational, industrial, and economic aspects of the 
rehabilitation of disabled veterans, including new methods of 
rehabilitation; and 
(2) projects which are designed to increase the resources 
and potential for accomplishing the rehabilitation of disabled 
veterans. 
(b) For the purpose specified in subsection (a) of this section, 
the Secretary is authorized to make grants to or contract with public 
or nonprofit agencies, including institutions of higher learning. 
(c) The Secretary shall cooperate with the Commissioner of the 
Rehabilitation Services Administration and the Director of the Institute 
of Handicapped Research in the Department of Education, 
the Assistant Secretary for Veteransï¿½ Employment in the Department of 
Labor, and the Secretary of Health and Human Services 
regarding rehabilitation studies, research, and special projects of 
mutual programmatic concern. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2184, Sec. 1519; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3119, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 3120. Program of independent living services and assistance 

(a) The Secretary may, under contracts with entities described 
in subsection (f) of this section, or through facilities of the Veterans 
Health Administration, which possess a demonstrated capability to 
conduct programs of independent living services for severely handicapped
persons, provide, under regulations which the Secretary 
shall prescribe, programs of independent living services and assistance 
under this chapter, in various geographic regions of the 
United States, to veterans described in subsection (b) of this section. 
(b) A program of independent living services and assistance 
may be made available under this section only to a veteran who 
has a serious employment handicap resulting in substantial part 
from a service-connected disability described in section 
3102(1)(A)(i) of this title and with respect to whom it is determined 
under section 3106(d) or (e) of this title that the achievement of a 
vocational goal currently is not reasonably feasible. 
(c) The Secretary shall, to the maximum extent feasible, include among 
those veterans who are provided with programs of 
independent living services and assistance under this section 
substantial numbers of veterans described in subsection (b) of this 
section who are receiving long-term care in Department of Veterans 
Affairs hospitals and nursing homes and in nursing homes with 
which the Secretary contracts for the provision of care to veterans. 

Sec. 3121 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 448 

(d) A program of independent living services and assistance for 
a veteran shall consist of such services described in section 3104(a) 
of this title as the Secretary determines necessary to enable such 
veteran to achieve maximum independence in daily living. Such 
veteran shall have the same rights with respect to an individualized 
written plan of services and assistance as are afforded veterans under 
section 3107 of this title. 
(e) Programs of independent living services and assistance 
shall be initiated for no more than 2600 veterans in each fiscal 
year, and the first priority in the provision of such programs shall 
be afforded to veterans for whom the reasonable feasibility of 
achieving a vocational goal is precluded solely as a result of a 
service-connected disability. 
(f) Entities described in this subsection are (1) public or nonprofit 
agencies or organizations, and (2) for-profit entities in cases 
in which the Secretary determines that services comparable in 
effectiveness to services available from such an entity are not 
available, or cannot be obtained cost-effectively from, public or nonprofit 
agencies or through facilities of the Veterans Health Administration. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 2185, 
Sec. 1520; 
amended Pub. L. 99-576, title III, Sec. 333(a), (b)(6), (c), Oct. 28, 
1986, 100 Stat. 
3279; Pub. L. 100-689, title II, Sec. 202(b), Nov. 18, 1988, 102 Stat. 
4176; Pub. L. 
101-237, title IV, Sec. 404, 423(b)(1), Dec. 18, 1989, 103 Stat. 2080, 
2092; renumbered Sec. 3120 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 103-446, title XII, Sec. 1201(b)(1), (d)(11), Nov. 
2, 1994, 108 Stat. 
4682, 4684; Pub. L. 104-275, title I, Sec. 101(f)(2)(D), (i), Oct. 9, 
1996, 110 Stat. 
3325; Pub. L. 107-103, title V, Sec. 508(a), Dec. 27, 2001, 115 Stat. 
997; Pub. L. 
110-389, title III, Sec. 332, Oct. 10, 2008, 122 Stat. 4170.) 

ï¿½ 3121. Veteransï¿½ Advisory Committee on Rehabilitation 

(a)(1) The Secretary shall appoint an advisory committee to be 
known as the Veteransï¿½ Advisory Committee on Rehabilitation 
(hereinafter in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). 

(2) The members of the Committee shall be appointed by the 
Secretary from the general public and shall serve for terms to be 
determined by the Secretary not to exceed three years. Veterans 
with service-connected disabilities shall be appropriately represented 
in the membership of the Committee, and the Committee 
shall also include persons who have distinguished themselves in 
the public and private sectors in the fields of rehabilitation medicine, 
vocational guidance, vocational rehabilitation, and employment and 
training programs. The Secretary may designate one of 
the members of the Committee appointed under this paragraph to 
chair the Committee. 
(3) The Committee shall also include as ex officio members the 
following: (A) one representative from the Veterans Health 
Administration and one from the Veterans Benefits Administration, (B) 
one representative from the Rehabilitation Services Administration 
of the Department of Education and one from the National Institute for 
Handicapped Research of the Department of Education, 
and (C) one representative of the Assistant Secretary of Labor for 
Veteransï¿½ Employment and Training of the Department of Labor. 

449 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. Sec. 3122 

(b) The Secretary shall, on a regular basis, consult with and 
seek the advice of the Committee with respect to the administration of 
veteransï¿½ rehabilitation programs under this title. 
(c) The Committee shall submit to the Secretary an annual report on the 
rehabilitation programs and activities of the Department of Veterans 
Affairs and shall submit such other reports and 
recommendations to the Secretary as the Committee determines 
appropriate. The annual report shall include an assessment of the 
rehabilitation needs of veterans and a review of the programs and 
activities of the Department of Veterans Affairs designed to meet 
such needs. The Secretary shall submit with each annual report 
submitted to the Congress pursuant to section 529 of this title a 
copy of all reports and recommendations of the Committee submitted to 
the Secretary since the previous annual report of the Secretary was 
submitted to the Congress pursuant to such section. 
(Added Pub. L. 96-466, title I, Sec. 101(a), Oct. 17, 1980, 94 Stat. 
2186, Sec. 1521; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 
Stat. 2092; 
Pub. L. 102-54, Sec. 14(c)(5), June 13, 1991, 105 Stat. 285; renumbered 
Sec. 3121 
and amended Pub. L. 102-83, Sec. 2(c)(3), 5(a), Aug. 6, 1991, 105 
Stat. 402, 406; 
Pub. L. 103-446, title XII, Sec. 1201(b)(1), (i)(5), Nov. 2, 1994, 
108 Stat. 4682, 4688.) 

ï¿½ 3122. Longitudinal study of vocational rehabilitation programs 

(a) STUDY REQUIRED.-(1) Subject to the availability of appropriated 
funds, the Secretary shall conduct a longitudinal study of 
a statistically valid sample of each of the groups of individuals 
described in paragraph (2). The Secretary shall study each such 
group over a period of at least 20 years. 
(2) The groups of individuals described in this paragraph are 
the following: 
(A) Individuals who begin participating in a vocational rehabilitation 
program under this chapter during fiscal year 
2010. 
(B) Individuals who begin participating in such a program 
during fiscal year 2012. 
(C) Individuals who begin participating in such a program 
during fiscal year 2014. 
(b) ANNUAL REPORTS.-By not later than July 1 of each year 
covered by the study required under subsection (a), the Secretary 
shall submit to the Committees on Veteransï¿½ Affairs of the Senate 
and House of Representatives a report on the study during the preceding 
year. 
(c) CONTENTS OF REPORT.-The Secretary shall include in the 
report required under subsection (b) any data the Secretary determines 
is necessary to determine the long-term outcomes of the individuals 
participating in the vocational rehabilitation programs 
under this chapter. The Secretary may add data elements from 
time to time as necessary. In addition, each such report shall contain 
the following information: 
(1) The number of individuals participating in vocational 
rehabilitation programs under this chapter who suspended participation 
in such a program during the year covered by the report. 

Sec. 3122 CH. 31-TRAIN./REHAB. FOR VETS WITH SERV.-CON. DIS. 450 

(2) The average number of months such individuals served 
on active duty. 
(3) The distribution of disability ratings of such individuals. 
(4) The types of other benefits administered by the Secretary received 
by such individuals. 
(5) The types of social security benefits received by such 
individuals. 
(6) Any unemployment benefits received by such individuals. 
(7) The average number of months such individuals were 
employed during the year covered by the report. 
(8) The average annual starting and ending salaries of 
such individuals who were employed during the year covered 
by the report. 
(9) The number of such individuals enrolled in an institution of higher 
learning, as that term is defined in section 
3452(f) of this title. 
(10) The average number of academic credit hours, degrees, and 
certificates obtained by such individuals during the 
year covered by the report. 
(11) The average number of visits such individuals made 
to Department medical facilities during the year covered by the 
report. 
(12) The average number of visits such individuals made 
to non-Department medical facilities during the year covered 
by the report. 
(13) The average annual income of such individuals. 
(14) The average total household income of such individuals for the 
year covered by the report. 
(15) The percentage of such individuals who own their 
principal residences. 
(16) The average number of dependents of each such vet
eran. 
(Added Pub. L. 110-389, title III, Sec. 334(a), Oct. 10, 2008, 122 
Stat. 4172.) 


CHAPTER 32 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


451 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 32-POST-VIETNAM ERA VETERANSï¿½ 
EDUCATIONAL ASSISTANCE


SUBCHAPTER I-PURPOSE; DEFINITIONS 

Sec. 
3201. Purpose. 
3202. Definitions. 

SUBCHAPTER II-ELIGIBILITY; CONTRIBUTIONS; AND MATCHING FUND 

3221. Eligibility. 
3222. Contributions; matching fund. 
3223. Refunds of contributions upon disenrollment. 
3224. Death of participant. 
3225. Discharge or release under conditions which would bar the use 
of benefits. 


SUBCHAPTER III-ENTITLEMENT; DURATION 

3231. Entitlement; loan eligibility. 
3232. Duration; limitations. 
3233. Apprenticeship or other on-job training. 
3234. Tutorial assistance. 

SUBCHAPTER IV-ADMINISTRATION 

3241. Requirements. 
3243. Deposits; reports. 

SUBCHAPTER I-PURPOSE; DEFINITIONS 

ï¿½ 3201. Purpose 

It is the purpose of this chapter (1) to provide educational assistance 
to those men and women who enter the Armed Forces 
after December 31, 1976, and before July 1, 1985, (2) to assist 
young men and women in obtaining an education they might not 
otherwise be able to afford, and (3) to promote and assist the all 
volunteer military program of the United States by attracting 
qualified men and women to serve in the Armed Forces. 

(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2393, Sec. 1601; 
amended Pub. L. 99-576, title III, Sec. 309(a)(1), Oct. 28, 1986, 100 
Stat. 3270; renumbered Sec. 3201, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3202. Definitions 

For the purposes of this chapter- 

(1)(A) The term ï¿½ï¿½eligible veteranï¿½ï¿½ means any veteran who is 
not eligible for educational assistance under chapter 34 of this title 
and who (i) entered military service on or after January 1, 1977, 
and before July 1, 1985, served on active duty for a period of more 
than 180 days commencing on or after January 1, 1977, and was 
discharged or released therefrom under conditions other than dis

453 


Sec. 3202 CH. 32-POST-VIETNAM ERA ED. ASST. 454 

honorable, or (ii) entered military service on or after January 1, 
1977, and before July 1, 1985, and was discharged or released from 
active duty after January 1, 1977, for a service-connected disability. 

(B) The requirement of discharge or release, prescribed in subparagraph 
(A), shall be waived in the case of any participant who 
has completed his or her first obligated period of active duty (which 
began after December 31, 1976) or 6 years of active duty (which 
began after December 31, 1976), whichever period is less. 
(C) For the purposes of subparagraphs (A) and (B), the term 
ï¿½ï¿½active dutyï¿½ï¿½ does not include any period during which an individual 
(i) was assigned full time by the Armed Forces to a civilian 
institution for a course of education which was substantially the 
same as established courses offered to civilians, (ii) served as a 
cadet or midshipman at one of the service academies, or (iii) served 
under the provisions of section 511(d) of title 10 pursuant to an 
enlistment in the Army National Guard or the Air National Guard, 
or as a Reserve for service in the Army Reserve, Navy Reserve, Air 
Force Reserve, Marine Corps Reserve, or Coast Guard Reserve. 
(D)(i) The requirement of ineligibility for educational assistance 
under chapter 34 of this title, prescribed in subparagraph (A), 
shall be waived in the case of a veteran described in division (ii) 
of this subparagraph who elects to receive benefits under this chapter 
instead of assistance under such chapter 34. A veteran who 
makes such an election shall be ineligible for assistance under such 
chapter. Such an election is irrevocable. 

(ii) A veteran referred to in division (i) of this subparagraph is 
a veteran who before January 1, 1977, performed military service 
described in subparagraph (C)(iii), is entitled under section 
3452(a)(3)(C) of this title to have such service considered to be 
ï¿½ï¿½active dutyï¿½ï¿½ for the purposes of chapter 34 of this title, and is 
eligible 
for assistance under such chapter only by reason of having such 
service considered to be active duty. 
(2) The term ï¿½ï¿½program of educationï¿½ï¿½- 
(A) has the meaning given such term in section 3452(b) of 
this title, and 
(B) includes (i) a full-time program of apprenticeship or 
other on-job training approved as provided in clause (1) or (2), 
as appropriate, of section 3687(a) of this title, and (ii) in the 
case of an individual who is not serving on active duty, a cooperative 
program (as defined in section 3482(a)(2) of this title). 
(3) The term ï¿½ï¿½participantï¿½ï¿½ is a person who is participating in 
the educational benefits program established under this chapter. 
(4) The term ï¿½ï¿½educational institutionï¿½ï¿½ has the meaning given 
such term in section 3452(c) of this title. 
(5) The term ï¿½ï¿½training establishmentï¿½ï¿½ has the meaning given 
such term in section 3452(e) of this title. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2394, Sec. 1602; 
amended Pub. L. 96-466, title IV, Sec. 401, Oct. 17, 1980, 94 Stat. 
2201; Pub. L. 
98-223, title II, Sec. 203(a), Mar. 2, 1984, 98 Stat. 41; Pub. L. 
99-576, title III, Sec. 
309(a)(2), 310(a), Oct. 28, 1986, 100 Stat. 3270, 3271; Pub. L. 
100-689, title I, Sec. 
108(b)(1), Nov. 18, 1988, 102 Stat. 4169; Pub. L. 102-54, Sec. 
14(c)(6), June 13, 
1991, 105 Stat. 285; renumbered Sec. 3202 and amended Pub. L. 102-83, 
Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 109-163, div. A, 
title V, Sec. 515(e)(3), 
Jan. 6, 2006, 119 Stat. 3236.) 


455 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3222 

SUBCHAPTER II-ELIGIBILITY; CONTRIBUTIONS; AND 
MATCHING FUND 


ï¿½ 3221. Eligibility 

(a) Each person entering military service on or after January 
1, 1977, and before July 1, 1985, shall have the right to enroll in 
the educational benefits program provided by this chapter (hereinafter 
in this chapter referred to as the ï¿½ï¿½programï¿½ï¿½ except where the 
text indicates otherwise) at any time during such personï¿½s service 
on active duty before July 1, 1985. When a person elects to enroll 
in the program, such person must participate for at least 12 
consecutive months before disenrolling or suspending participation. 
(b) The requirement for 12 consecutive months of participation 
required by subsection (a) of this section shall not apply when (1) 
the participant suspends participation or disenrolls from the program 
because of personal hardship as defined in regulations issued 
jointly by the Secretary and the Secretary of Defense, or (2) the 
participant is discharged or released from active duty. 
(c) A participant shall be permitted to suspend participation or 
disenroll from the program at the end of any 12-consecutive-month 
period of participation. If participation is suspended, the participant 
shall be eligible to make additional contributions to the program under 
such terms and conditions as shall be prescribed by 
regulations issued jointly by the Secretary and the Secretary of Defense. 
(d) If a participant disenrolls from the program, such participant 
forfeits any entitlement to benefits under the program except 
as provided in subsection (e) of this section. A participant who 
disenrolls from the program is eligible for a refund of such 
participantï¿½s contributions as provided in section 3223 of this title. 
(e) A participant who has disenrolled may be permitted to reenroll in 
the program under such conditions as shall be prescribed 
jointly by the Secretary and the Secretary of Defense. 
(f) An individual who serves in the Selected Reserve may not 
receive credit for such service under both the program established 
by this chapter and the program established by chapter 106 of title 
10 but shall elect (in such form and manner as the Secretary of 
Veterans Affairs may prescribe) the program to which such service 
is to be credited. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2394, Sec. 1621; 
amended Pub. L. 99-576, title III, Sec. 309(a)(3), Oct. 28, 1986, 100 
Stat. 3270; Pub. 

L. 101-237, title IV, Sec. 410, 423(b)(1)(A), (4)(A), (6), Dec. 18, 
1989, 103 Stat. 2084, 
2092, 2093; renumbered Sec. 3221 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 3222. Contributions; matching fund 

(a) Except as provided in subsections (c) and (d) of this section, 
each person electing to participate in the program shall agree to 
have a monthly deduction made from such personï¿½s military pay. 
Such monthly deduction shall be in any amount not less than $25 
nor more than $100 except that the amount must be divisible by 
5. Any such amount contributed by the participant or contributed 
by the Secretary of Defense pursuant to subsection (c) of this section 
shall be deposited in a deposit fund account entitled the ï¿½ï¿½Post

Sec. 3223 CH. 32-POST-VIETNAM ERA ED. ASST. 456 

Vietnam Era Veterans Education Accountï¿½ï¿½ (hereinafter in this 
chapter referred to as the ï¿½ï¿½fundï¿½ï¿½) to be established in the Treasury 
of the United States. Contributions made by the participant shall 
be limited to a maximum of $2,700. 

(b) Except as otherwise provided in this chapter, each monthly 
contribution made by a participant under subsection (a) shall entitle 
the participant to matching funds from the Department of Defense at the 
rate of $2 for each $1 contributed by the participant. 
(c) The Secretary of Defense is authorized to contribute to the 
fund of any participant such contributions as the Secretary of Defense 
deems necessary or appropriate to encourage persons to enter 
or remain in the Armed Forces, including contributions in lieu of, 
or to reduce the amount of, monthly deductions under subsection 
(a) of this section. The Secretary of Defense is authorized to issue 
such rules and regulations as the Secretary of Defense deems necessary or 
appropriate to implement the provisions of this subsection. 
(d) Subject to the maximum contribution prescribed by subsection (a) of 
this section, a participant shall be permitted, while 
serving on active duty, to make a lump-sum contribution to the 
fund. A lump-sum contribution to the fund by a participant shall 
be in addition to or in lieu of monthly deductions made from such 
participantï¿½s military pay and shall be considered, for the purposes 
of paragraph (2) of section 3231(a) of this title, to have been made 
by monthly deductions from such participantï¿½s military pay in the 
amount of $100 per month or in such lesser amount as may be 
specified by such participant pursuant to regulations issued jointly 
by the Secretary of Defense and the Secretary. 
(e) Any amount transferred to the Secretary from the Secretary 
of a military department under an interagency agreement for the 
administration by the Department of Veterans Affairs of an educational 
assistance program established by the Secretary of Defense under chapter 
107 of title 10 may be deposited into and disbursed from the fund for the 
purposes of such program. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 2395, 
Sec. 1622; amended Pub. L. 94-502, title IV, Sec. 408(b), Oct. 15, 1976, 
90 Stat. 2398; Pub. 

L. 96-466, title IV, Sec. 406, Oct. 17, 1980, 94 Stat. 2202; Pub. L. 
97-306, title II, 
Sec. 209, 210, Oct. 14, 1982, 96 Stat. 1436; Pub. L. 98-160, title VII, 
Sec. 702(6), 
Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101-237, title IV, Sec. 423(b)(1), 
(4)(A), (B), (D), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3222 
and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406.) 
ï¿½ 3223. Refunds of contributions upon disenrollment 

(a) Contributions made to the program by a participant may be 
refunded only after the participant has disenrolled from the program or 
as provided in section 3224 of this title. 
(b) If a participant disenrolls from the program prior to discharge or 
release from active duty, such participantï¿½s contributions 
will be refunded on the date of the participantï¿½s discharge or release 
from active duty or within 60 days of receipt of notice by the 
Secretary of the participantï¿½s discharge or disenrollment, except 
that refunds may be made earlier in instances of hardship or other 
good reason as prescribed in regulations issued jointly by the Secretary
and the Secretary of Defense. 

457 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3225 

(c) If a participant disenrolls from the program after discharge 
or release from active duty, the participantï¿½s contributions shall be 
refunded within 60 days of receipt of an application for a refund 
from the participant. 
(d) In the event the participant (1) dies while on active duty, 
(2) dies after discharge or release from active duty, or (3) disenrolls 
or is disenrolled from the program without having utilized any entitlement, 
the participant may have accrued under the program, or, 
in the event the participant utilizes part of such participantï¿½s 
entitlement and disenrolls or is disenrolled from the program, the 
amount contributed by the Secretary of Defense under the authority of 
section 3222(c) of this title remaining in the fund shall be refunded to 
such Secretary. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 2395, 
Sec. 1623; 
amended Pub. L. 98-160, title VII, Sec. 702(7), Nov. 21, 1983, 97 Stat. 
1009; Pub. 

L. 101-237, title IV, Sec. 423(b)(1)(A), (4)(A), (7), Dec. 18, 1989, 103 
Stat. 2092, 
2093; renumbered Sec. 3223 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 
1991, 105 Stat. 406.) 
ï¿½ 3224. Death of participant 

In the event of a participantï¿½s death, the amount of such participantï¿½s 
unused contributions to the fund shall be paid to the living person or 
persons first listed below: 

(1) The beneficiary or beneficiaries designated by such participant 
under such participantï¿½s Servicemembersï¿½ Group Life 
Insurance policy. 
(2) The surviving spouse of the participant. 
(3) The surviving child or children of the participant, in 
equal shares. 
(4) The surviving parent or parents of the participant, in 
equal shares. 
If there is no such person living, such amount shall be paid to such 
participantï¿½s estate. 

(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 2395, 
Sec. 1624; 
amended Pub. L. 96-466, title IV, Sec. 402, Oct. 17, 1980, 94 Stat. 2201; 
renumbered Sec. 3224, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 104- 
275, title IV, Sec. 405(c)(2), Oct. 9, 1996, 110 Stat. 3340.) 

ï¿½ 3225. Discharge or release under conditions which would 
bar the use of benefits 

If a participant in the program is discharged or released from 
active duty under dishonorable conditions, such participant is 
automatically disenrolled and any contributions made by such participant 
shall be refunded to such participant on the date of such participantï¿½s 
discharge or release from active duty or within 60 days 
from receipt of notice by the Secretary of such discharge or release, 
whichever is later. 

(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2396, Sec. 1625; 
amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2092; 
renumbered Sec. 3225, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406.) 


Sec. 3231 CH. 32-POST-VIETNAM ERA ED. ASST. 458 

SUBCHAPTER III-ENTITLEMENT; DURATION 

ï¿½ 3231. Entitlement; loan eligibility 

(a)(1) Subject to the provisions of section 3695 of this title 
limiting the aggregate period for which any person may receive 
assistance under two or more programs of educational or vocational 
assistance administered by the Department of Veterans Affairs, a 
participant shall be entitled to a maximum of 36 monthly benefit 
payments (or their equivalent in the event of part-time benefits). 

(2) Except as provided in paragraph (5)(E) of this subsection 
and in subsection (e) of this section and section 3233 of this title 
and subject to section 3241 of this title, the amount of the monthly 
payment to which any eligible veteran is entitled shall be 
ascertained by (A) adding all contributions made to the fund by the 
eligible veteran, (B) multiplying the sum by 3, (C) adding all 
contributions made to the fund for such veteran by the Secretary of 
Defense, and (D) dividing the sum by the lesser of 36 or the number 
of months in which contributions were made by such veteran. 
(3) Payment of benefits under this chapter may be made only 
for periods of time during which an eligible veteran is actually 
enrolled in and pursuing an approved program of education and, except 
as provided in paragraph (4), only after an eligible veteran has 
been discharged or released from active duty. 
(4) Payment of benefits under this chapter may be made after 
a participant has completed his or her first obligated period of active 
duty (which began after December 31, 1976), or 6 years of active duty 
(which began after December 31, 1976), whichever period 
is less. 
(5)(A) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of an educational assistance 
allowance described in subparagraph (B) of this paragraph- 

(i) shall not be charged against the entitlement of any eligible 
veteran under this chapter; and 
(ii) shall not be counted toward the aggregate period for 
which section 3695 of this title limits an individualï¿½s receipt of 
assistance. 
(B) The payment of an educational assistance allowance referred to in 
subparagraph (A) of this paragraph is any payment of 
a monthly benefit under this chapter to an eligible veteran for pursuit 
of a course or courses under this chapter if the Secretary finds 
that the eligible veteran- 
(i) in the case of a person not serving on active duty, had 
to discontinue such course pursuit as a result of being ordered 
to serve on active duty under section 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304 of title 10; or 
(ii) in the case of a person serving on active duty, had to 
discontinue such course pursuit as a result of being ordered to 
a new duty location or assignment or to perform an increased 
amount of work; and 
(iii) failed to receive credit or training time toward completion of 
the individualï¿½s approved educational, professional, or 
vocational objective as a result of having to discontinue, as described 
in clause (i) or (ii) of this subparagraph, his or her 
course pursuit. 

459 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3231 

(C) The period for which, by reason of this subsection, an educational 
assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 
of this title shall not exceed the portion of the period of enrollment 
in the course or courses for which the individual failed to receive 
credit or with respect to which the individual lost training time, as 
determined under subparagraph (B)(iii) of this paragraph. 
(D) The amount in the fund for each eligible veteran who received a 
payment of an educational assistance allowance described 
in subparagraph (B) of this paragraph shall be restored to the 
amount that would have been in the fund for the veteran if the 
payment had not been made. For purposes of carrying out the previous 
sentence, the Secretary of Defense shall deposit into the fund, 
on behalf of each such veteran, an amount equal to the entire 
amount of the payment made to the veteran. 
(E) In the case of a veteran who discontinues pursuit of a 
course or courses as described in subparagraph (B) of this paragraph, 
the formula for ascertaining the amount of the monthly payment to which 
the veteran is entitled in paragraph (2) of this subsection shall be 
implemented as if- 
(i) the payment made to the fund by the Secretary of Defense under 
subparagraph (D) of this paragraph, and 
(ii) any payment for a course or courses described in subparagraph (B) 
of this paragraph that was paid out of the fund, 
had not been made or paid. 
(b) Any enlisted member of the Armed Forces participating in 
the program shall be eligible to enroll in a course, courses, or program 
of education for the purpose of attaining a secondary school 
diploma (or an equivalency certificate), as authorized by section 
3491(a) of this title, during the last six months of such memberï¿½s 
first enlistment and at any time thereafter. 
(c) When an eligible veteran is pursuing a program of education under 
this chapter by correspondence, such eligible veteranï¿½s 
entitlement shall be charged at the rate of 1 monthï¿½s entitlement 
for each month of benefits paid to the eligible veteran (computed 
on the basis of the formula provided in subsection (a)(2) of this 
section). 
(d)(1) Subject to the provisions of paragraph (2) of this subsection, 
the amount of the educational assistance benefits paid to 
an eligible veteran who is pursuing a program of education under 
this chapter while incarcerated in a Federal, State, local, or other 
penal institution or correctional facility for conviction of a felony 
may not exceed the lesser of (A) such amount as the Secretary determines, 
in accordance with regulations which the Secretary shall 
prescribe, is necessary to cover the cost of established charges for 
tuition and fees required of similarly circumstanced nonveterans 
enrolled in the same program and the cost of necessary supplies, 
books, and equipment, or (B) the applicable monthly benefit payment 
otherwise prescribed in this section or section 3233 of this 
title. The amount of the educational assistance benefits payable to 
a veteran while so incarcerated shall be reduced to the extent that 
the tuition and fees of the veteran for any course are paid under 
any Federal program (other than a program administered by the 
Secretary) or under any State or local program. 


Sec. 3232 CH. 32-POST-VIETNAM ERA ED. ASST. 460 

(2) Paragraph (1) of this subsection shall not apply in the case 
of any veteran who is pursuing a program of education under this 
chapter while residing in a halfway house or participating in a 
work-release program in connection with such veteranï¿½s conviction 
of a felony. 
(e)(1) Subject to subsection (a)(1) of this section, each individual 
who is pursuing a program of education consisting exclusively of flight 
training approved as meeting the requirements of 
section 3241(b) of this title shall be paid educational assistance 
under this chapter in the amount equal to 60 percent of the established 
charges for tuition and fees which similarly circumstanced 
nonveterans enrolled in the same flight course are required to pay. 

(2) No payment may be paid under this chapter to an individual for any 
month during which such individual is pursuing a 
program of education consisting exclusively of flight training until 
the Secretary has received from that individual and the institution 
providing such training a certification of the flight training received 
by the individual during that month and the tuition and 
other fees charged for that training. 
(3) The entitlement of an eligible veteran pursuing a program 
of education described in paragraph (1) of this subsection shall be 
charged at the rate of one month for each amount of educational 
assistance paid which is equal to the monthly benefit otherwise 
payable to such veteran (computed on the basis of the formula provided 
in subsection (a)(2) of this section). 
(4) The number of solo flying hours for which an individual 
may be paid an educational assistance allowance under this subsection 
may not exceed the minimum number of solo flying hours 
required by the Federal Aviation Administration for the flight rating 
or certification which is the goal of the individualï¿½s flight training. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 2396, 
Sec. 1631; 
amended Pub. L. 96-466, title IV, Sec. 403, 404, Oct. 17, 1980, 94 Stat. 
2201; Pub. 

L. 97-35, title XX, Sec. 2003(a)(1), 2005(a), Aug. 13, 1981, 95 Stat. 
782; Pub. L. 99- 
576, title III, Sec. 310(b)(1), Oct. 28, 1986, 100 Stat. 3271; Pub. L. 
100-689, title 
I, Sec. 108(b)(2), 122, Nov. 18, 1988, 102 Stat. 4170, 4174; Pub. L. 
101-237, title 
IV, Sec. 423(b)(1), (4)(A), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 
102-16, Sec. 7(b), 
Mar. 22, 1991, 105 Stat. 51; renumbered Sec. 3231 and amended Pub. L. 
102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-127, Sec. 
2(b), Oct. 10, 
1991, 105 Stat. 619; Pub. L. 102-568, title III, Sec. 310(c), Oct. 29, 
1992, 106 Stat. 
4330; Pub. L. 104-275, title I, Sec. 105(b), Oct. 9, 1996, 110 Stat. 
3327; Pub. L. 105- 
368, title X, Sec. 1005(b)(7), Nov. 11, 1998, 112 Stat. 3365; Pub. L. 
107-103, title 
I, Sec. 103(a), (d), Dec. 27, 2001, 115 Stat. 979; Pub. L. 109-461,
title X, Sec. 
1002(c), Dec. 22, 2006, 120 Stat. 3465.) 
ï¿½ 3232. Duration; limitations 

(a)(1) Except as provided in paragraphs (2) and (3), and subject 
to paragraph (4), of this subsection, educational assistance benefits 
shall not be afforded an eligible veteran under this chapter more 
than 10 years after the date of such veteranï¿½s last discharge or 
release from active duty. 

(2)(A) If any eligible veteran was prevented from initiating or 
completing such veteranï¿½s chosen program of education during the 
delimiting period determined under paragraph (1) of this subsection 
because of a physical or mental disability which was not the 
result of such veteranï¿½s own willful misconduct, such veteran shall, 


461 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3232 

upon application made in accordance with subparagraph (B) of this 
paragraph, be granted an extension of the applicable delimiting period 
for such length of time as the Secretary determines, from the 
evidence, that such veteran was so prevented from initiating or 
completing such program of education. 

(B) An extension of the delimiting period applicable to an eligible 
veteran may be granted under subparagraph (A) of this paragraph by
reason of the veteranï¿½s mental or physical disability only 
if the veteran submits an application for such extension to the 
Secretary within one year after (i) the last date of the delimiting 
period otherwise applicable to the veteran under paragraph (1) of this 
subsection, or (ii) the termination date of the period of the veteranï¿½s 
mental or physical disability, whichever is later. 
(3) When an extension of the applicable delimiting period is 
granted an eligible veteran under paragraph (2) of this subsection, 
the delimiting period with respect to such veteran shall again begin 
to run on the first day after such veteranï¿½s recovery from such 
disability on which it is reasonably feasible, as determined in 
accordance with regulations prescribed by the Secretary, for such veteran 
to initiate or resume pursuit of a program of education with 
educational assistance under this chapter. 
(4) For purposes of paragraph (1) of this subsection, a veteranï¿½s 
last discharge or release from active duty shall not include any 
discharge or release from a period of active duty of less than 90 days 
of continuous service unless the individual involved is discharged 
or released for a service-connected disability, for a medical condition 
which preexisted such service and which the Secretary determines is not 
service connected, for hardship, or as a result of a reduction in force 
as described in section 3011(a)(1)(A)(ii)(III) of this 
title. 
(b)(1) In the event that an eligible veteran has not utilized any 
or all of such veteranï¿½s entitlement by the end of the delimiting period 
applicable to the veteran under subsection (a) of this section 
and at the end of one year thereafter has not filed a claim for utilizing 
such entitlement, such eligible veteran is automatically 
disenrolled. 

(2)(A) Any contributions which were made by a veteran 
disenrolled under paragraph (1) of this subsection and remain in 
the fund shall be refunded to the veteran after notice of 
disenrollment is transmitted to the veteran and the veteran applies 
for such refund. 

(B) If no application for refund of contributions under subparagraph 
(A) of this paragraph is received from a disenrolled veteran 
within one year after the date the notice referred to in such 
subparagraph is transmitted to the veteran, it shall be presumed that 
the veteranï¿½s whereabouts is unknown and the funds shall be 
transferred to the Secretary for payments for entitlement earned 
under subchapter II of chapter 30. 
(c)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a licensing or certification 
test described in section 3452(b) of this title is the lesser of $2,000 
or the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for such licensing or certification test is equal to 

Sec. 3233 CH. 32-POST-VIETNAM ERA ED. ASST. 462 

the number (including any fraction) determined by dividing the 
total amount paid to such individual for such test by the full-time 
monthly institutional rate of the educational assistance allowance 
which, except for paragraph (1), such individual would otherwise be 
paid under this chapter. 

(3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individualï¿½s 
available entitlement under this chapter. 
(d)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a national test for admission or 
national test providing an opportunity for course credit at 
institutions of higher learning described in section 3452(b) of this 
title is the amount of the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for a test described in paragraph (1) is equal to 
the number (including any fraction) determined by dividing the 
total amount of educational assistance paid such individual for 
such test by the full-time monthly institutional rate of educational 
assistance, except for paragraph (1), such individual would otherwise 
be paid under this chapter. 
(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the 
amount of the individualï¿½s available entitlement under this chapter. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2396, Sec. 1632; 
amended Pub. L. 97-258, Sec. 3(k)(2), Sept. 13, 1982, 96 Stat. 1065; 
Pub. L. 98- 
160, title VII, Sec. 702(8), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 
99-576, title III, 
Sec. 311, Oct. 28, 1986, 100 Stat. 3272; Pub. L. 101-237, title IV, 
Sec. 420(a)(2), 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2087, 2092; Pub. L. 102-16, 
Sec. 4, Mar. 22, 
1991, 105 Stat. 49; renumbered Sec. 3232 and amended Pub. L. 102-83, 
Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-275, title I, Sec. 
106(c)(1), Oct. 9, 
1996, 110 Stat. 3329; Pub. L. 106-419, title I, Sec. 122(b)(2), 
Nov. 1, 2000, 114 Stat. 
1834; Pub. L. 108-454, title I, Sec. 106(b)(2), Dec. 10, 2004, 118 
Stat. 3603.) 

ï¿½ 3233. Apprenticeship or other on-job training 

(a) Except as provided in subsection (b) of this section, the 
amount of the monthly benefit payment to an individual pursuing 
a full-time program of apprenticeship or other on-job training 
under this chapter is- 
(1) for each of the first six months of the individualï¿½s pursuit of 
such program, 75 percent of the monthly benefit payment otherwise 
payable to such individual under this chapter; 
(2) for each of the second six months of the individualï¿½s 
pursuit of such program, 55 percent of such monthly benefit 
payment; and 
(3) for each of the months following the first 12 months of 
the individualï¿½s pursuit of such program, 35 percent of such 
monthly benefit payment. 
(b) In any month in which an individual pursuing a program 
of education consisting of a program of apprenticeship or other on-
job training fails to complete 120 hours of training, the amount of 
the monthly benefit payment payable under this chapter to the 
individual shall be limited to the same proportion of the applicable 
rate determined under subsection (a) of this section as the number 

463 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3234 

of hours worked during such month, rounded to the nearest eight 
hours, bears to 120 hours. 

(c) For each month that an individual is paid a monthly benefit 
payment under this chapter, the individualï¿½s entitlement under 
this chapter shall be charged at the rate of- 
(1) 75 percent of a month in the case of payments made 
in accordance with subsection (a)(1) of this section; 
(2) 55 percent of a month in the case of payments made 
in accordance with subsection (a)(2) of this section; and 
(3) 35 percent of a month in the case of payments made 
in accordance with subsection (a)(3) of this section. 
(d) For any month in which an individual fails to complete 120 
hours of training, the entitlement otherwise chargeable under 
subsection (c) of this section shall be reduced in the same proportion 
as the monthly benefit payment payable is reduced under subsection (b) 
of this section. (Added Pub. L. 99-576, title III, Sec. 310(b)(2), 
Oct. 28, 1986, 100 Stat. 3271, Sec. 1633; amended Pub. L. 101-237, 
title IV, Sec. 423(a)(7), Dec. 18, 1989, 103 Stat. 2091; renumbered 
Sec. 3233, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3234. Tutorial assistance 

(a) An individual entitled to benefits under this chapter shall 
also be entitled to the benefits provided an eligible veteran under 
section 3492 of this title, subject to the conditions applicable to an 
eligible veteran under such section. Any amount paid to an individual 
under this section shall be in addition to the amount of 
other benefits paid under this chapter. 
(b) An individualï¿½s period of entitlement to educational assistance 
under this chapter shall be charged only with respect to the 
amount of educational assistance paid to the individual under this 
section in excess of $600. 
(c) An individualï¿½s period of entitlement to educational assistance 
under this chapter shall be charged at the rate of one month 
for each amount of assistance paid to the individual under this section 
in excess of $600 that is equal to the amount of monthly educational 
assistance the individual is otherwise eligible to receive for 
full-time pursuit of an institutional course under this chapter. 
(d) Payments of benefits under this section shall be made- 
(1) in the case of the first $600 of such benefits paid to an 
individual, from funds appropriated, or otherwise available, to 
the Department of Veterans Affairs for the payment of readjustment 
benefits; and 
(2) in the case of payments to an individual for such benefits in excess 
of $600, from the fund from contributions made 
to the fund by the veteran and by the Secretary of Defense in 
the same proportion as these contributions are used to pay 
other educational assistance to the individual under this chapter. 
(Added Pub. L. 100-689, title I, Sec. 107(b)(1), Nov. 18, 1988, 102 
Stat. 4168, Sec. 
1634; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(B), Dec. 18, 
1989, 103 Stat. 
2092; renumbered Sec. 3234 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 
1991, 105 Stat. 406.) 


Sec. 3241 CH. 32-POST-VIETNAM ERA ED. ASST. 464 

SUBCHAPTER IV-ADMINISTRATION 

ï¿½ 3241. Requirements 

(a)(1) The provisions of sections 3470, 3471, 3474, 3476, 3483, 
3485, and 3491(a)(1) of this title and the provisions of chapter 36 
of this title (with the exception of section 3687) shall be applicable 
with respect to individuals who are pursuing programs of education 
while serving on active duty. 

(2) The Secretary may, without regard to the application to 
this chapter of so much of the provisions of section 3471 of this title 
as prohibit the enrollment of an eligible veteran in a program of 
education in which the veteran is ï¿½ï¿½already qualifiedï¿½ï¿½, and pursuant 
to such regulations as the Secretary shall prescribe, approve the 
enrollment of such individual in refresher courses (including 
courses which will permit such individual to update knowledge and 
skills or be instructed in the technological advances which have 
occurred in the individualï¿½s field of employment during and since the 
period of such veteranï¿½s active military service), deficiency courses, 
or other preparatory or special education or training courses necessary 
to enable the individual to pursue an approved program of 
education. 
(b) The Secretary may approve the pursuit of flight training (in 
addition to a course of flight training that may be approved under 
section 3680A(b) of this title) by an individual entitled to basic 
educational assistance under this chapter if- 
(1) such training is generally accepted as necessary for the 
attainment of a recognized vocational objective in the field of 
aviation; 
(2) the individual possesses a valid pilot certificate and 
meets, on the day the individual begins a course of flight training, 
the medical requirements necessary for a commercial pilot 
certificate; and 
(3) the flight school courses meet Federal Aviation Administration 
standards for such courses and are approved by the 
Federal Aviation Administration and the State approving agency. 
(c) The provisions of sections 3470, 3471, 3474, 3476, 3483, and 
3491(a) (other than clause (1)) of this title and the provisions of 
chapter 36 of this title (with the exception of section 3687) shall be 
applicable with respect to individuals who are pursuing programs 
of education following discharge or release from active duty. 
(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2397, Sec. 1641; amended Pub. L. 96-466, title IV, Sec. 405, Oct. 17, 
1980, 94 Stat. 2202; Pub. L. 97-35, title XX, Sec. 2003(a)(2), Aug. 
13, 1981, 95 Stat. 782; Pub. L. 99-576, title III, Sec. 308(b), 
310(c), Oct. 28, 1986, 100 Stat. 3270, 3272; Pub. L. 100-689, title 
I, Sec. 106(b), Nov. 18, 1988, 102 Stat. 4167; Pub. L. 101-237, title 
IV, Sec. 423(a)(5)(B), (b)(1)(A), Dec. 18, 1989, 103 Stat. 2091, 2092 
Pub. L. 102-16, Sec. 2(b)(2), 7(a), Mar. 22, 1991, 105 Stat. 49, 51; 
renumbered Sec. 3241 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, Sec. 
313(a)(5), Oct. 29, 1992, 106 Stat. 4332; Pub. L. 103-446, title VI, 
Sec. 601(b), title XII, Sec. 1201(d)(12), Nov. 2, 1994, 108 Stat. 
4670, 4684; Pub. L. 105-368, title II, Sec. 204(a), Nov. 11, 1998, 
112 Stat. 3327.) 


465 CH. 32-POST-VIETNAM ERA ED. ASST. Sec. 3243 

ï¿½ï¿½ 3242. Vacantï¿½ 

ï¿½ 3243. Deposits; reports 

Deductions made by the Department of Defense from the military pay of 
any participant shall be promptly transferred to the 
Secretary for deposit in the fund. The Secretary of Defense shall 
also submit to the Secretary a report each month showing the 
name, service number, and the amount of the deduction made from 
the military pay of each initial enrollee, any contribution made by 
the Secretary of Defense pursuant to section 3222(c) of this title, 
as well as any changes in each participantï¿½s enrollment and/or 
contribution. The report shall also include any additional information 
the Secretary and the Secretary of Defense deem necessary to administer 
this program. The Secretary shall maintain accounts 
showing contributions made to the fund by individual participants 
and by the Secretary of Defense as well as disbursements made 
from the fund in the form of benefits. 

(Added Pub. L. 94-502, title IV, Sec. 404, Oct. 15, 1976, 90 Stat. 
2397, Sec. 1643; amended Pub. L. 98-160, title VII, Sec. 702(9), 
Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), (4)(D), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 
3243 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406.) 

CHAPTER 33 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


[CHAPTER 33 EFFECTIVE AS OF AUGUST 1, 2009] 

467 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½ 

CHAPTER 33-POST-9/11 EDUCATIONAL ASSISTANCE 

SUBCHAPTER I-DEFINITIONS 

Sec. 
3301. Definitions. 

SUBCHAPTER II-EDUCATIONAL ASSISTANCE 

3311. Educational assistance for service in the Armed Forces commencing 
on or after September 11, 2001: entitlement. 

3312. Educational assistance: duration. 

3313. Educational assistance: amount; payment. 

3314. Tutorial assistance. 

3315. Licensure and certification tests. 

3316. Supplemental educational assistance: members with critical skills 
or specialty; members serving additional service.

3317. Public-private contributions for additional educational 
assistance. 

3318. Additional assistance: relocation or travel assistance for 
individual relocating or traveling significant distance for pursuit of 
a program of education. 

3319. Authority to transfer unused education benefits to family 
members. 

SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

3321. Time limitation for use of and eligibility for entitlement.
3322. Bar to duplication of educational assistance benefits. 
3323. Administration. 
3324. Allocation of administration and costs.


SUBCHAPTER I-DEFINITIONS 

ï¿½ 3301. Definitions 

In this chapter: 

(1) The term ï¿½ï¿½active dutyï¿½ï¿½ has the meanings as follows 
(subject to the limitations specified in sections 3002(6) and 
3311(b)): 
(A) In the case of members of the regular components 
of the Armed Forces, the meaning given such term in section 101(21)(A). 
(B) In the case of members of the reserve components 
of the Armed Forces, service on active duty under a call or 
order to active duty under section 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304 of title 10. 
(2) The term ï¿½ï¿½entry level and skill trainingï¿½ï¿½ means the following: 
(A) In the case of members of the Army, Basic Combat 
Training and Advanced Individual Training. 
(B) In the case of members of the Navy, Recruit Training (or Boot Camp) 
and Skill Training (or so-called ï¿½ï¿½Aï¿½ï¿½ 
School). 
469 


Sec. 3311 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 470 

(C) In the case of members of the Air Force, Basic 
Military Training and Technical Training. 
(D) In the case of members of the Marine Corps, Recruit Training and 
Marine Corps Training (or School of Infantry Training). 
(E) In the case of members of the Coast Guard, Basic 
Training. 
(3) The term ï¿½ï¿½program of educationï¿½ï¿½ has the meaning 
given such term in section 3002, except to the extent otherwise 
provided in section 3313. 
(4) The term ï¿½ï¿½Secretary of Defenseï¿½ï¿½ means the Secretary 
of Defense, except that the term means the Secretary of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2359.) 

SUBCHAPTER II-EDUCATIONAL ASSISTANCE 

ï¿½ 3311. Educational assistance for service in the Armed 
Forces commencing on or after September 11, 2001: 
entitlement 

(a) ENTITLEMENT.-Subject to subsections (d) and (e), each individual 
described in subsection (b) is entitled to educational assistance under 
this chapter. 
(b) COVERED INDIVIDUALS.-An individual described in this 
subsection is any individual as follows: 
(1) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 36 months on active duty 
in the Armed Forces (including service on active duty in 
entry level and skill training); and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty; or 
(ii) is discharged or released from active duty as 
described in subsection (c). 
(2) An individual who- 
(A) commencing on or after September 11, 2001, 
serves at least 30 continuous days on active duty in the 
Armed Forces; and 
(B) after completion of service described in subparagraph (A), is 
discharged or released from active duty in the 
Armed Forces for a service-connected disability. 
(3) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 30 months, but less than 
36 months, on active duty in the Armed Forces (including 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 36 months; or 

471 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3311 

(ii) before completion of service on active duty of 
an aggregate of 36 months, is discharged or released 
from active duty as described in subsection (c). 
(4) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 24 months, but less than 
30 months, on active duty in the Armed Forces (including 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 30 months; or 
(ii) before completion of service on active duty of 
an aggregate of 30 months, is discharged or released 
from active duty as described in subsection (c). 
(5) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 18 months, but less than 
24 months, on active duty in the Armed Forces (excluding 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 24 months; or 
(ii) before completion of service on active duty of 
an aggregate of 24 months, is discharged or released 
from active duty as described in subsection (c). 
(6) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 12 months, but less than 
18 months, on active duty in the Armed Forces (excluding 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 18 months; or 
(ii) before completion of service on active duty of 
an aggregate of 18 months, is discharged or released 
from active duty as described in subsection (c). 
(7) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 6 months, but less than 12 
months, on active duty in the Armed Forces (excluding 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 12 months; or 

Sec. 3311 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 472 

(ii) before completion of service on active duty of 
an aggregate of 12 months, is discharged or released 
from active duty as described in subsection (c). 
(8) An individual who- 
(A) commencing on or after September 11, 2001, 
serves an aggregate of at least 90 days, but less than 6 
months, on active duty in the Armed Forces (excluding 
service on active duty in entry level and skill training); 
and 
(B) after completion of service described in subparagraph (A)- 
(i) continues on active duty for an aggregate of 
less than 6 months; or 
(ii) before completion of service on active duty of 
an aggregate of 6 months, is discharged or released 
from active duty as described in subsection (c). 
(c) COVERED DISCHARGES AND RELEASES.-A discharge or release from active 
duty of an individual described in this subsection 
is a discharge or release as follows: 
(1) A discharge from active duty in the Armed Forces with 
an honorable discharge. 
(2) A release after service on active duty in the Armed 
Forces characterized by the Secretary concerned as honorable 
service and placement on the retired list, transfer to the Fleet 
Reserve or Fleet Marine Corps Reserve, or placement on the 
temporary disability retired list. 
(3) A release from active duty in the Armed Forces for further service 
in a reserve component of the Armed Forces after 
service on active duty characterized by the Secretary concerned 
as honorable service. 
(4) A discharge or release from active duty in the Armed 
Forces for- 
(A) a medical condition which preexisted the service of 
the individual as described in the applicable paragraph of 
subsection (b) and which the Secretary determines is not 
service-connected; 
(B) hardship; or 
(C) a physical or mental condition that was not characterized as a 
disability and did not result from the individualï¿½s own willful 
misconduct but did interfere with the 
individualï¿½s performance of duty, as determined by the 
Secretary concerned in accordance with regulations prescribed by the 
Secretary of Defense. 
(d) PROHIBITION ON TREATMENT OF CERTAIN SERVICE AS PERIOD OF ACTIVE 
DUTY.-The following periods of service shall not 
be considered a part of the period of active duty on which an 
individualï¿½s entitlement to educational assistance under this chapter is 
based: 
(1) A period of service on active duty of an officer pursuant 
to an agreement under section 2107(b) of title 10. 
(2) A period of service on active duty of an officer pursuant 
to an agreement under section 4348, 6959, or 9348 of title 10. 
(3) A period of service that is terminated because of a defective 
enlistment and induction based on- 

473 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3312 

(A) the individualï¿½s being a minor for purposes of service in the 
Armed Forces; 
(B) an erroneous enlistment or induction; or 
(C) a defective enlistment agreement. 
(e) TREATMENT OF INDIVIDUALS ENTITLED UNDER MULTIPLE 
PROVISIONS.-In the event an individual entitled to educational 
assistance under this chapter is entitled by reason of both paragraphs 
(4) and (5) of subsection (b), the individual shall be treated 
as being entitled to educational assistance under this chapter by 
reason of paragraph (5) of subsection (b). 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2359.) 

ï¿½ 3312. Educational assistance: duration 

(a) IN GENERAL.-Subject to section 3695 and except as provided in 
subsections (b) and (c), an individual entitled to educational 
assistance under this chapter is entitled to a number of 
months of educational assistance under section 3313 equal to 36 
months. 
(b) CONTINUING RECEIPT.-The receipt of educational assistance under 
section 3313 by an individual entitled to educational assistance under 
this chapter is subject to the provisions of section 
3321(b)(2). 
(c) DISCONTINUATION OF EDUCATION FOR ACTIVE DUTY.- 
(1) IN GENERAL.-Any payment of educational assistance 
described in paragraph (2) shall not- 
(A) be charged against any entitlement to educational 
assistance of the individual concerned under this chapter; 
or 
(B) be counted against the aggregate period for which 
section 3695 limits the individualï¿½s receipt of educational 
assistance under this chapter. 
(2) DESCRIPTION OF PAYMENT OF EDUCATIONAL ASSISTANCE.-Subject to 
paragraph (3), the payment of educational 
assistance described in this paragraph is the payment of such 
assistance to an individual for pursuit of a course or courses 
under this chapter if the Secretary finds that the individual- 
(A)(i) in the case of an individual not serving on active 
duty, had to discontinue such course pursuit as a result of 
being called or ordered to serve on active duty under section 688, 
12301(a), 12301(d), 12301(g), 12302, or 12304 of 
title 10; or (ii) in the case of an individual serving on active duty, 
had to discontinue such course pursuit as a result of being ordered to 
a new duty location or assignment 
or to perform an increased amount of work; and 

(B) failed to receive credit or lost training time toward 
completion of the individualï¿½s approved education, professional, or 
vocational objective as a result of having to discontinue, as described 
in subparagraph (A), the individualï¿½s course pursuit. 
(3) PERIOD FOR WHICH PAYMENT NOT CHARGED.-The period for which, by 
reason of this subsection, educational assistance is not charged 
against entitlement or counted toward the 
applicable aggregate period under section 3695 of this title 
shall not exceed the portion of the period of enrollment in the 

Sec. 3313 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 474 

course or courses from which the individual failed to receive 
credit or with respect to which the individual lost training 
time, as determined under paragraph (2)(B). 

(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2362.) 

ï¿½ 3313. Educational assistance: amount; payment 

(a) PAYMENT.-The Secretary shall pay to each individual entitled to 
educational assistance under this chapter who is pursuing 
an approved program of education (other than a program covered 
by subsections (e) and (f)) the amounts specified in subsection (c) 
to meet the expenses of such individualï¿½s subsistence, tuition, fees, 
and other educational costs for pursuit of such program of education. 
(b) APPROVED PROGRAMS OF EDUCATION.-A program of education is an 
approved program of education for purposes of this 
chapter if the program of education is offered by an institution of 
higher learning (as that term is defined in section 3452(f)) and is 
approved for purposes of chapter 30 (including approval by the 
State approving agency concerned). 
(c) AMOUNT OF EDUCATIONAL ASSISTANCE.-The amounts payable under this 
subsection for pursuit of an approved program of 
education are amounts as follows: 
(1) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(1) or 
3311(b)(2), amounts as follows: 
(A) An amount equal to the established charges for the 
program of education, except that the amount payable 
under this subparagraph may not exceed the maximum 
amount of established charges regularly charged in-State 
students for full-time pursuit of approved programs of education for 
undergraduates by the public institution of higher education offering 
approved programs of education for 
undergraduates in the State in which the individual is enrolled that 
has the highest rate of regularly-charged established charges for such 
programs of education among all 
public institutions of higher education in such State offering such 
programs of education. 
(B) A monthly stipend in an amount as follows: 
(i) For each month the individual pursues the program of education 
(other than, in the case of assistance under this section only, a 
program of education 
offered through distance learning), a monthly housing 
stipend amount equal to the monthly amount of the 
basic allowance for housing payable under section 403 
of title 37 for a member with dependents in pay grade 
E-5 residing in the military housing area that encompasses all or the 
majority portion of the ZIP code area 
in which is located the institution of higher education 
at which the individual is enrolled. 
(ii) For the first month of each quarter, semester, 
or term, as applicable, of the program of education 
pursued by the individual, a lump sum amount for 
books, supplies, equipment, and other educational 

475 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3313 

costs with respect to such quarter, semester, or term 
in the amount equal to- 

(I) $1,000, multiplied by 
(II) the fraction which is the portion of a complete academic year 
under the program of education that such quarter, semester, or term 
constitutes. 
(2) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(3), 
amounts equal to 90 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(3) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(4), 
amounts equal to 80 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(4) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(5), 
amounts equal to 70 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(5) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(6), 
amounts equal to 60 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(6) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(7), 
amounts equal to 50 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(7) In the case of an individual entitled to educational assistance 
under this chapter by reason of section 3311(b)(8), 
amounts equal to 40 percent of the amounts that would be payable to the 
individual under paragraph (1) for the program of 
education if the individual were entitled to amounts for the 
program of education under paragraph (1) rather than this 
paragraph. 
(d) FREQUENCY OF PAYMENT.- 
(1) QUARTER, SEMESTER, OR TERM PAYMENTS.-Payment of 
the amounts payable under subsection (c)(1)(A), and of similar 
amounts payable under paragraphs (2) through (7) of subsection (c), for 
pursuit of a program of education shall be made 

Sec. 3313 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 476 

for the entire quarter, semester, or term, as applicable, of the 
program of education. 

(2) MONTHLY PAYMENTS.-Payment of the amount payable 
under subsection (c)(1)(B), and of similar amounts payable 
under paragraphs (2) through (7) of subsection (c), for pursuit 
of a program of education shall be made on a monthly basis. 
(3) REGULATIONS.-The Secretary shall prescribe in regulations methods 
for determining the number of months (including fractions thereof) of 
entitlement of an individual to educational assistance this chapter 
that are chargeable under this 
chapter for an advance payment of amounts under paragraphs 
(1) and (2) for pursuit of a program of education on a quarter, 
semester, term, or other basis. 
(e) PROGRAMS OF EDUCATION PURSUED ON ACTIVE DUTY.- 
(1) IN GENERAL.-Educational assistance is payable under 
this chapter for pursuit of an approved program of education 
while on active duty. 
(2) AMOUNT OF ASSISTANCE.-The amount of educational 
assistance payable under this chapter to an individual pursuing a 
program of education while on active duty is the lesser 
of- 
(A) the established charges which similarly 
circumstanced nonveterans enrolled in the program of education 
involved would be required to pay; or 
(B) the amount of the charges of the educational institution as 
elected by the individual in the manner specified 
in section 3014(b)(1) 1 
(3) QUARTER, SEMESTER, OR TERM PAYMENTS.-Payment of 
the amount payable under paragraph (2) for pursuit of a program of 
education shall be made for the entire quarter, semester, or term, 
as applicable, of the program of education. 
(4) MONTHLY PAYMENTS.-For each month (as determined 
pursuant to the methods prescribed under subsection (d)(3)) for 
which amounts are paid an individual under this subsection, 
the entitlement of the individual to educational assistance 
under this chapter shall be charged at the rate of one month 
for each such month. 
(f) PROGRAMS OF EDUCATION PURSUED ON HALF-TIME BASIS OR 
LESS.- 
(1) IN GENERAL.-Educational assistance is payable under 
this chapter for pursuit of an approved program of education 
on half-time basis or less. 
(2) AMOUNT OF ASSISTANCE.-The educational assistance 
payable under this chapter to an individual pursuing a program of 
education on half-time basis or less is the amounts as 
follows: 
(A) The amount equal to the lesser of- 
(i) the established charges which similarly 
circumstanced nonveterans enrolled in the program of 
education involved would be required to pay; or 
(ii) the maximum amount that would be payable 
to the individual for the program of education under 
1 So in original. Should be followed by a period. 


477 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3313 

paragraph (1)(A) of subsection (c), or under the provisions of 
paragraphs (2) through (7) of subsection (c) 
applicable to the individual, for the program of education if the 
individual were entitled to amounts for 
the program of education under subsection (c) rather 
than this subsection. 

(B) A stipend in an amount equal to the amount of the 
appropriately reduced amount of the lump sum amount for 
books, supplies, equipment, and other educational costs 
otherwise payable to the individual under subsection (c). 
(3) QUARTER, TERM, OR SEMESTER PAYMENTS.-Payment of 
the amounts payable to an individual under paragraph (2) for 
pursuit of a program of education on half-time basis or less 
shall be made for the entire quarter, semester, or term, as applicable, 
of the program of education. 
(4) MONTHLY PAYMENTS.-For each month (as determined 
pursuant to the methods prescribed under subsection (d)(3)) for 
which amounts are paid an individual under this subsection, 
the entitlement of the individual to educational assistance 
under this chapter shall be charged at a percentage of a month 
equal to- 
(A) the number of course hours borne by the individual in pursuit of 
the program of education involved, divided by 
(B) the number of course hours for full-time pursuit of 
such program of education. 
(g) PAYMENT OF ESTABLISHED CHARGES TO EDUCATIONAL INSTITUTIONS.-Amounts 
payable under subsections (c)(1)(A) (and of 
similar amounts payable under paragraphs (2) through (7) of subsection 
(c)), (e)(2), and (f)(2)(A) shall be paid directly to the educational 
institution concerned. 
(h) ESTABLISHED CHARGES DEFINED.- 
(1) IN GENERAL.-In this section, the term ï¿½ï¿½established 
chargesï¿½ï¿½, in the case of a program of education, means the actual 
charges (as determined pursuant to regulations prescribed 
by the Secretary) for tuition and fees which similarly 
circumstanced nonveterans enrolled in the program of education would 
be required to pay. 
(2) BASIS OF DETERMINATION.-Established charges shall 
be determined for purposes of this subsection on the following 
basis: 
(A) In the case of an individual enrolled in a program 
of education offered on a term, quarter, or semester basis, 
the tuition and fees charged the individual for the term, 
quarter, or semester. 
(B) In the case of an individual enrolled in a program 
of education not offered on a term, quarter, or semester 
basis, the tuition and fees charged the individual for the 
entire program of education. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2363.) 


Sec. 3314 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 478 

ï¿½ 3314. Tutorial assistance 

(a) IN GENERAL.-Subject to subsection (b), an individual entitled to 
educational assistance under this chapter shall also be entitled to 
benefits provided an eligible veteran under section 3492. 
(b) CONDITIONS.- 
(1) IN GENERAL.-The provision of benefits under subsection (a) shall be 
subject to the conditions applicable to an 
eligible veteran under section 3492. 
(2) CERTIFICATION.-In addition to the conditions specified 
in paragraph (1), benefits may not be provided to an individual 
under subsection (a) unless the professor or other individual 
teaching, leading, or giving the course for which such benefits 
are provided certifies that- 
(A) such benefits are essential to correct a deficiency 
of the individual in such course; and 
(B) such course is required as a part of, or is prerequisite or 
indispensable to the satisfactory pursuit of, an 
approved program of education. 
(c) AMOUNT.- 
(1) IN GENERAL.-The amount of benefits described in subsection (a) that 
are payable under this section may not exceed 
$100 per month, for a maximum of 12 months, or until a maximum of 
$1,200 is utilized. 
(2) AS ADDITIONAL ASSISTANCE.-The amount provided an 
individual under this subsection is in addition to the amounts 
of educational assistance paid the individual under section 
3313. 
(d) NO CHARGE AGAINST ENTITLEMENT.-Any benefits provided 
an individual under subsection (a) are in addition to any other 
educational assistance benefits provided the individual under this 
chapter. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2366.) 

ï¿½ 3315. Licensure and certification tests 

(a) IN GENERAL.-An individual entitled to educational assistance under 
this chapter shall also be entitled to payment for one 
licensing or certification test described in section 3452(b). 
(b) LIMITATION ON AMOUNT.-The amount payable under subsection (a) for 
a licensing or certification test may not exceed the 
lesser of- 
(1) $2,000; or 
(2) the fee charged for the test. 
(c) NO CHARGE AGAINST ENTITLEMENT.-Any amount paid an 
individual under subsection (a) is in addition to any other educational 
assistance benefits provided the individual under this 
chapter. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2367.) 

ï¿½ 3316. Supplemental educational assistance: members with 
critical skills or specialty; members serving additional service 

(a) INCREASED ASSISTANCE FOR MEMBERS WITH CRITICAL 
SKILLS OR SPECIALTY.- 

479 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3317 

(1) IN GENERAL.-In the case of an individual who has a 
skill or specialty designated by the Secretary concerned as a 
skill or specialty in which there is a critical shortage of personnel 
or for which it is difficult to recruit or, in the case of 
critical units, retain personnel, the Secretary concerned may 
increase the monthly amount of educational assistance otherwise payable 
to the individual under paragraph (1)(B) of section 3313(c), or under 
paragraphs (2) through (7) of such section (as applicable). 
(2) MAXIMUM AMOUNT OF INCREASE IN ASSISTANCE.-The 
amount of the increase in educational assistance authorized by 
paragraph (1) may not exceed the amount equal to the monthly 
amount of increased basic educational assistance providable 
under section 3015(d)(1) at the time of the increase under 
paragraph (1). 
(b) SUPPLEMENTAL ASSISTANCE FOR ADDITIONAL SERVICE.- 
(1) IN GENERAL.-The Secretary concerned may provide for 
the payment to an individual entitled to educational assistance 
under this chapter of supplemental educational assistance for 
additional service authorized by subchapter III of chapter 30. 
The amount so payable shall be payable as an increase in the 
monthly amount of educational assistance otherwise payable to 
the individual under paragraph (1)(B) of section 3313(c), or 
under paragraphs (2) through (7) of such section (as applicable). 
(2) ELIGIBILITY.-Eligibility for supplement educational assistance 
under this subsection shall be determined in accordance with the 
provisions of subchapter III of chapter 30, except 
that any reference in such provisions to eligibility for basic 
educational assistance under a provision of subchapter II of 
chapter 30 shall be treated as a reference to eligibility for 
educational assistance under the appropriate provision of this 
chapter. 
(3) AMOUNT.-The amount of supplemental educational assistance payable 
under this subsection shall be the amount 
equal to the monthly amount of supplemental educational payable under 
section 3022. 
(c) REGULATIONS.-The Secretaries concerned shall administer 
this section in accordance with such regulations as the Secretary 
of Defense shall prescribe. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2367.) 

ï¿½ 3317. Public-private contributions for additional educational 
assistance 

(a) ESTABLISHMENT OF PROGRAM.-In instances where the educational 
assistance provided pursuant to section 3313(c)(1)(A) does 
not cover the full cost of established charges (as specified in section 
3313), the Secretary shall carry out a program under which colleges and 
universities can, voluntarily, enter into an agreement 
with the Secretary to cover a portion of those established charges 
not otherwise covered under section 3313(c)(1)(A), which contributions 
shall be matched by equivalent contributions toward such 
costs by the Secretary. The program shall only apply to covered 
individuals described in paragraphs (1) and (2) of section 3311(b). 

Sec. 3318 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 480 

(b) DESIGNATION OF PROGRAM.-The program under this section shall be 
known as the ï¿½ï¿½Yellow Ribbon G.I. Education Enhancement Programï¿½ï¿½. 
(c) AGREEMENTS.-The Secretary shall enter into an agreement 
with each college or university seeking to participate in the program 
under this section. Each agreement shall specify the following: 
(1) The manner (whether by direct grant, scholarship, or 
otherwise) of the contributions to be made by the college or 
university concerned. 
(2) The maximum amount of the contribution to be made 
by the college or university concerned with respect to any particular 
individual in any given academic year. 
(3) The maximum number of individuals for whom the college or university 
concerned will make contributions in any 
given academic year. 
(4) Such other matters as the Secretary and the college or 
university concerned jointly consider appropriate. 
(d) MATCHING CONTRIBUTIONS.- 
(1) IN GENERAL.-In instances where the educational assistance provided an 
individual under section 3313(c)(1)(A) 
does not cover the full cost of tuition and mandatory fees at a 
college or university, the Secretary shall provide up to 50 percent of 
the remaining costs for tuition and mandatory fees if 
the college or university voluntarily enters into an agreement 
with the Secretary to match an equal percentage of any of the 
remaining costs for such tuition and fees. 
(2) USE OF APPROPRIATED FUNDS.-Amounts available to 
the Secretary under section 3324(b) for payment of the costs of 
this chapter shall be available to the Secretary for purposes of 
paragraph (1). 
(e) OUTREACH.-The Secretary shall make available on the 
Internet website of the Department available to the public a current 
list of the colleges and universities participating in the program under 
this section. The list shall specify, for each college or 
university so listed, appropriate information on the agreement between 
the Secretary and such college or university under subsection (c). 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2368.) 

ï¿½ 3318. Additional assistance: relocation or travel assistance 
for individual relocating or traveling significant 
distance for pursuit of a program of education 

(a) ADDITIONAL ASSISTANCE.-Each individual described in 
subsection (b) shall be paid additional assistance under this section 
in the amount of $500. 
(b) COVERED INDIVIDUALS.-An individual described in this 
subsection is any individual entitled to educational assistance 
under this chapter- 
(1) who resides in a county (or similar entity utilized by 
the Bureau of the Census) with less than seven persons per 
square mile, according to the most recent decennial Census; 
and 
(2) who- 

481 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3319 

(A) physically relocates a distance of at least 500 miles 
in order to pursue a program of education for which the individual 
utilizes educational assistance under this chapter; 
or 
(B) travels by air to physically attend an institution of 
higher education for pursuit of such a program of education because 
the individual cannot travel to such institution by automobile or 
other established form of transportation due to an absence of road 
or other infrastructure. 
(c) PROOF OF RESIDENCE.-For purposes of subsection (b)(1), an 
individual may demonstrate the individualï¿½s place of residence 
utilizing any of the following: 
(1) DD Form 214, Certification of Release or Discharge 
from Active Duty. 
(2) The most recent Federal income tax return. 
(3) Such other evidence as the Secretary shall prescribe for 
purposes of this section. 
(d) SINGLE PAYMENT OF ASSISTANCE.-An individual is entitled 
to only one payment of additional assistance under this section. 
(e) NO CHARGE AGAINST ENTITLEMENT.-Any amount paid an 
individual under this section is in addition to any other educational 
assistance benefits provided the individual under this chapter. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2369.) 

ï¿½ 3319. Authority to transfer unused education benefits to 
family members 

(a) IN GENERAL.-Subject to the provisions of this section, the 
Secretary of Defense may authorize the Secretary concerned, to 
promote recruitment and retention of members of the Armed 
Forces, to permit an individual described in subsection (b) who is 
entitled to educational assistance under this chapter to elect to 
transfer to one or more of the dependents specified in subsection 
(c) a portion of such individualï¿½s entitlement to such assistance, 
subject to the limitation under subsection (d). 
(b) ELIGIBLE INDIVIDUALS.-An individual referred to in subsection (a) 
is any member of the Armed Forces who, at the time 
of the approval of the individualï¿½s request to transfer entitlement 
to educational assistance under this section, has completed at 
least- 
(1) six years of service in the armed forces and enters into 
an agreement to serve at least four more years as a member 
of the Armed Forces; or 
(2) the years of service as determined in regulations pursuant to 
section (k). 
(c) ELIGIBLE DEPENDENTS.-An individual approved to transfer 
an entitlement to educational assistance under this section may 
transfer the individualï¿½s entitlement as follows: 
(1) To the individualï¿½s spouse. 
(2) To one or more of the individualï¿½s children. 
(3) To a combination of the individuals referred to in paragraphs (1) 
and (2). 
(d) LIMITATION ON MONTHS OF TRANSFER.-The total number 
of months of entitlement transferred by a individual under this section 
may not exceed 36 months. The Secretary of Defense may pre

Sec. 3319 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 482 

scribe regulations that would limit the months of entitlement that 
may be transferred under this section to no less than 18 months. 

(e) DESIGNATION OF TRANSFEREE.-An individual transferring 
an entitlement to educational assistance under this section shall- 
(1) designate the dependent or dependents to whom such 
entitlement is being transferred; 
(2) designate the number of months of such entitlement to 
be transferred to each such dependent; and 
(3) specify the period for which the transfer shall be effective for 
each dependent designated under paragraph (1). 
(f) TIME FOR TRANSFER; REVOCATION AND MODIFICATION.- 
(1) TIME FOR TRANSFER.-Subject to the time limitation for 
use of entitlement under section 3321 an individual approved 
to transfer entitlement to educational assistance under this 
section may transfer such entitlement only while serving as a 
member of the armed forces when the transfer is executed. 
(2) MODIFICATION OR REVOCATION.- 
(A) IN GENERAL.-An individual transferring entitlement under this 
section may modify or revoke at any time 
the transfer of any unused portion of the entitlement so 
transferred. 
(B) NOTICE.-The modification or revocation of the 
transfer of entitlement under this paragraph shall be 
made by the submittal of written notice of the action to 
both the Secretary concerned and the Secretary of Veterans Affairs. 
(3) PROHIBITION ON TREATMENT OF TRANSFERRED ENTITLEMENT AS MARITAL 
PROPERTY.-Entitlement transferred under 
this section may not be treated as marital property, or the 
asset of a marital estate, subject to division in a divorce or 
other civil proceeding. 
(g) COMMENCEMENT OF USE.-A dependent to whom entitlement to educational 
assistance is transferred under this section 
may not commence the use of the transferred entitlement until- 
(1) in the case of entitlement transferred to a spouse, the 
completion by the individual making the transfer of at least- 
(A) six years of service in the armed forces; or 
(B) the years of service as determined in regulations 
pursuant to subsection (j); or 
(2) in the case of entitlement transferred to a child, both- 
(A) the completion by the individual making the transfer of at least- 
(i) ten years of service in the armed forces; or 
(ii) the years of service as determined in regulations pursuant to 
subsection (j); and 
(B) either- 
(i) the completion by the child of the requirements 
of a secondary school diploma (or equivalency certificate); or 
(ii) the attainment by the child of 18 years of age. 
(h) ADDITIONAL ADMINISTRATIVE MATTERS.- 
(1) USE.-The use of any entitlement to educational assistance 
transferred under this section shall be charged against 
the entitlement of the individual making the transfer at the 

483 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3319 

rate of one month for each month of transferred entitlement 
that is used. 

(2) NATURE OF TRANSFERRED ENTITLEMENT.-Except as 
provided under subsection (e)(2) and subject to paragraphs (5) 
and (6)- 
(A) in the case of entitlement transferred to a spouse 
under this section, the spouse is entitled to educational assistance 
under this chapter in the same manner as the individual from whom the 
entitlement was transferred; or 
(B) in the case of entitlement transferred to a child 
under this section, the child is entitled to educational assistance 
under this chapter in the same manner as the individual from whom the 
entitlement was transferred as if 
the individual were not on active duty. 
(3) RATE OF PAYMENT.-The monthly rate of educational 
assistance payable to a dependent to whom entitlement referred to in 
paragraph (2) is transferred under this section 
shall be payable- 
(A) in the case of a spouse, at the same rate as such 
entitlement would otherwise be payable under this chapter 
to the individual making the transfer; or 
(B) in the case of a child, at the same rate as such entitlement would 
otherwise be payable under this chapter to 
the individual making the transfer as if the individual 
were not on active duty. 
(4) DEATH OF TRANSFEROR.-The death of an individual 
transferring an entitlement under this section shall not affect 
the use of the entitlement by the dependent to whom the entitlement is 
transferred. 
(5) LIMITATION ON AGE OF USE BY CHILD TRANSFEREES.-A 
child to whom entitlement is transferred under this section 
may use the benefit without regard to the 15-year delimiting 
date, but may not use any entitlement so transferred after attaining the 
age of 26 years. 
(6) SCOPE OF USE BY TRANSFEREES.-The purposes for 
which a dependent to whom entitlement is transferred under 
this section may use such entitlement shall include the pursuit 
and completion of the requirements of a secondary school diploma (or 
equivalency certificate). 
(7) ADDITIONAL ADMINISTRATIVE PROVISIONS.-The administrative provisions
of this chapter shall apply to the use of entitlement transferred under 
this section, except that the dependent to whom the entitlement is 
transferred shall be treated as the eligible individual for purposes of 
such provisions. 
(i) OVERPAYMENT.- 
(1) JOINT AND SEVERAL LIABILITY.-In the event of an overpayment of 
educational assistance with respect to a dependent 
to whom entitlement is transferred under this section, the dependent and 
the individual making the transfer shall be jointly 
and severally liable to the United States for the amount of the 
overpayment for purposes of section 3685. 
(2) FAILURE TO COMPLETE SERVICE AGREEMENT.- 
(A) IN GENERAL.-Except as provided in subparagraph 
(B), if an individual transferring entitlement under this 

Sec. 3321 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 484 

section fails to complete the service agreed to by the individual under 
subsection (b)(1) in accordance with the 
terms of the agreement of the individual under that subsection, the 
amount 
of any transferred entitlement under 
this section that is used by a dependent of the individual 
as of the date of such failure shall be treated as an overpayment of 
educational assistance under paragraph (1). 

(B) EXCEPTION.-Subparagraph (A) shall not apply in 
the case of an individual who fails to complete service 
agreed to by the individual- 
(i) by reason of the death of the individual; or 
(ii) for a reason referred to in section 3311(c)(4). 
(j) REGULATIONS.-(1) The Secretary of Defense, in coordination 
with the Secretary of Veterans Affairs, shall prescribe regulations 
for purposes of this section. 
(2) Such regulations shall specify- 
(A) the manner of authorizing the transfer of entitlements 
under this section; 
(B) the eligibility criteria in accordance with subsection (b); 
and 
(C) the manner and effect of an election to modify or revoke a transfer 
of entitlement under subsection (f)(2). 
(k) SECRETARY CONCERNED DEFINED.-Notwithstanding section 
101(25), in this section, the term ï¿½ï¿½Secretary concernedï¿½ï¿½ means- 
(1) the Secretary of the Army with respect to matters concerning the 
Army; 
(2) the Secretary of the Navy with respect to matters concerning the 
Navy or the Marine Corps; 
(3) the Secretary of the Air Force with respect to matters 
concerning the Air Force; and 
(4) the Secretary of Defense with respect to matters concerning the 
Coast Guard, or the Secretary of Homeland Security when it is not 
operating as a service in the Navy. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 
122 Stat. 2369.) 

SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

ï¿½ 3321. Time limitation for use of and eligibility for entitlement 

(a) IN GENERAL.-Except as provided in this section, the period 
during which an individual entitled to educational assistance under 
this chapter may use such individualï¿½s entitlement expires at the 
end of the 15-year period beginning on the date of such individualï¿½s 
last discharge or release from active duty. 
(b) EXCEPTIONS.- 
(1) APPLICABILITY OF SECTION 3031 TO RUNNING OF PERIOD.-Subsections 
(b), (c), and (d) of section 3031 shall apply 
with respect to the running of the 15-year period described in 
subsection (a) of this section in the same manner as such subsections 
apply under section 3031 with respect to the running 
of the 10-year period described in section 3031(a). 
(2) APPLICABILITY OF SECTION 3031 TO TERMINATION.-Section 3031(f) shall 
apply with respect to the termination of an 
individualï¿½s entitlement to educational assistance under this 

485 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3323 

chapter in the same manner as such section applies to the termination 
of an individualï¿½s entitlement to educational assistance under chapter 
30, except that, in the administration of 
such section for purposes of this chapter, the reference to section 
3013 shall be deemed to be a reference to 3312. 

(3) DETERMINATION OF LAST DISCHARGE OR RELEASE.-For 
purposes of subsection (a), an individualï¿½s last discharge or release 
from active duty shall not include any discharge or release from a 
period of active duty of less than 90 days of continuous service, 
unless the individual is discharged or released 
as described in section 3311(b)(2). 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2373.) 

ï¿½ 3322. Bar to duplication of educational assistance benefits 

(a) IN GENERAL.-An individual entitled to educational assistance under 
this chapter who is also eligible for educational assistance under 
chapter 30, 31, 32, or 35 of this title, chapter 107, 1606, 
or 1607 of title 10, or the provisions of the Hostage Relief Act of 
1980 (Public Law 96-449; 5 U.S.C. 5561 note) may not receive assistance 
under two or more such programs concurrently, but shall 
elect (in such form and manner as the Secretary may prescribe) 
under which chapter or provisions to receive educational assistance. 
(b) INAPPLICABILITY OF SERVICE TREATED UNDER EDUCATIONAL 
LOAN REPAYMENT PROGRAMS.-A period of service counted for purposes of 
repayment of an education loan under chapter 109 of title 
10 may not be counted as a period of service for entitlement to 
educational assistance under this chapter. 
(c) SERVICE IN SELECTED RESERVE.-An individual who serves 
in the Selected Reserve may receive credit for such service under 
only one of this chapter, chapter 30 of this title, and chapters 1606 
and 1607 of title 10, and shall elect (in such form and manner as 
the Secretary may prescribe) under which chapter such service is 
to be credited. 
(d) ADDITIONAL COORDINATION MATTERS.-In the case of an individual 
entitled to educational assistance under chapter 30, 31, 
32, or 35 of this title, chapter 107, 1606, or 1607 of title 10, or the 
provisions of the Hostage Relief Act of 1980, or making contributions 
toward entitlement to educational assistance under chapter 
30 of this title, as of August 1, 2009, coordination of entitlement 
to educational assistance under this chapter, on the one hand, and 
such chapters or provisions, on the other, shall be governed by the 
provisions of section 5003(c) of the Post-9/11 Veterans Educational 
Assistance Act of 2008. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2373.) 

ï¿½ 3323. Administration 

(a) IN GENERAL.- 
(1) IN GENERAL.-Except as otherwise provided in this 
chapter, the provisions specified in section 3034(a)(1) shall 
apply to the provision of educational assistance under this 
chapter. 

Sec. 3324 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE 486 

(2) SPECIAL RULE.-In applying the provisions referred to 
in paragraph (1) to an individual entitled to educational assistance 
under this chapter for purposes of this section, the reference in such 
provisions to the term ï¿½ï¿½eligible veteranï¿½ï¿½ shall be 
deemed to refer to an individual entitled to educational assistance 
under this chapter. 
(3) RULE FOR APPLYING SECTION 3474.-In applying section 
3474 to an individual entitled to educational assistance under 
this chapter for purposes of this section, the reference in such 
section 3474 to the term ï¿½ï¿½educational assistance allowanceï¿½ï¿½ 
shall be deemed to refer to educational assistance payable 
under section 3313. 
(4) RULE FOR APPLYING SECTION 3482.-In applying section 
3482(g) to an individual entitled to educational assistance 
under this chapter for purposes of this section- 
(A) the first reference to the term ï¿½ï¿½educational assistance 
allowanceï¿½ï¿½ in such section 3482(g) shall be deemed to 
refer to educational assistance payable under section 3313; 
and 
(B) the first sentence of paragraph (1) of such section 
3482(g) shall be applied as if such sentence ended with 
ï¿½ï¿½equipmentï¿½ï¿½. 
(b) INFORMATION ON BENEFITS.- 
(1) TIMING FOR PROVIDING.-The Secretary shall provide 
the information described in paragraph (2) to each member of 
the Armed Forces at such times as the Secretary and the Secretary of 
Defense shall jointly prescribe in regulations. 
(2) DESCRIPTION OF INFORMATION.-The information described in this 
paragraph is information on benefits, limitations, procedures, 
eligibility 
requirements (including time-inservice requirements), and other 
important 
aspects of educational assistance under this chapter, including 
application 
forms for such assistance under section 5102. 
(3) TO WHOM PROVIDED.-The Secretary of Veterans Affairs 
shall furnish the information and forms described in paragraph 
(2), and other educational materials on educational assistance 
under this chapter, to educational institutions, training 
establishments, 
military education personnel, and such other persons and entities as 
the 
Secretary considers appropriate. 
(c) REGULATIONS.- 
(1) IN GENERAL.-The Secretary shall prescribe regulations 
for the administration of this chapter. 
(2) UNIFORMITY.-Any regulations prescribed by the Secretary of Defense 
for purposes of this chapter shall apply uniformly across the Armed 
Forces. 
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2374.) 

ï¿½ 3324. Allocation of administration and costs 

(a) ADMINISTRATION.-Except as otherwise provided in this 
chapter, the Secretary shall administer the provision of educational 
assistance under this chapter. 
(b) COSTS.-Payments for entitlement to educational assistance 
earned under this chapter shall be made from funds appropriated 

487 CH. 33-POST-9/11 EDUCATIONAL ASSISTANCE Sec. 3324 

to, or otherwise made available to, the Department for the payment 
of readjustment benefits.
(Added Pub. L. 110-252, title V, Sec. 5003(a)(1), June 30, 2008, 122 
Stat. 2375.)



CHAPTER 34 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


489 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½ 

CHAPTER 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 

SUBCHAPTER I-PURPOSE-DEFINITIONS 

Sec. 
3451. Purpose. 
3452. Definitions. 

SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 

3461. Eligibility; entitlement; duration. 
3462. Time limitations for completing a program of education. 


SUBCHAPTER III-ENROLLMENT 

3470. Selection of program. 
3471. Applications; approval. 
[3473. Repealed.] 
3474. Discontinuance for unsatisfactory conduct or progress. 
3476. Education outside the United States. 


SUBCHAPTER IV-PAYMENTS TO ELIGIBLE VETERANS; VETERAN
STUDENT SERVICES 


3481. Educational assistance allowance. 
3482. Computation of educational assistance allowances. 
3483. Approval of courses. 
3484. Apprenticeship or other on-job training; correspondence courses. 
3485. Work-study allowance. 


SUBCHAPTER V-SPECIAL ASSISTANCE FOR THE EDUCATIONALLY 
DISADVANTAGED 


3490. Purpose. 
3491. Elementary and secondary education and preparatory educational 
assist


ance. 
3492. Tutorial assistance. 
3493. Effect on educational entitlement. 

SUBCHAPTER I-PURPOSE 

ï¿½ 3451. Purpose 

The Congress of the United States hereby declares that the 
education program created by this chapter is for the purpose of (1) 
enhancing and making more attractive service in the Armed Forces 
of the United States, (2) extending the benefits of a higher education 
to qualified and deserving young persons who might not otherwise be 
able to afford such an education, (3) providing vocational 
readjustment and restoring lost educational opportunities to those 
service men and women whose careers have been interrupted or 
impeded by reason of active duty after January 31, 1955, and (4) 
aiding such persons in attaining the vocational and educational 
status which they might normally have aspired to and obtained 
had they not served their country. 

491 


Sec. 3452 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 492 

(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 12, Sec. 1651; 
renumbered 
Sec. 3451, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3452. Definitions 

For the purposes of this chapter and chapter 36 of this title- 
(a)(1) The term ï¿½ï¿½eligible veteranï¿½ï¿½ means any veteran who- 

(A) served on active duty for a period of more than 180 
days, any part of which occurred after January 31, 1955, and 
before January 1, 1977, and was discharged or released therefrom under 
conditions other than dishonorable; 
(B) contracted with the Armed Forces and was enlisted in 
or assigned to a reserve component prior to January 1, 1977, 
and as a result of such enlistment or assignment served on active duty 
for a period of more than 180 days, any part of which 
commenced within 12 months after January 1, 1977, and was 
discharged or released from such active duty under conditions 
other than dishonorable; or 
(C) was discharged or released from active duty, any part 
of which was performed after January 31, 1955, and before 
January 1, 1977, or following entrance into active service from 
an enlistment provided for under subparagraph (B), because of 
a service-connected disability. 
(2) The requirement of discharge or release, prescribed in subparagraph 
(A) or (B) of paragraph (1), shall be waived in the case 
of any individual who served more than 180 days in an active-duty 
status for so long as such individual continues on active duty without 
a break therein. 
(3) For purposes of paragraph (1)(A) and section 3461(a), the 
term ï¿½ï¿½active dutyï¿½ï¿½ does not include any period during which an 
individual (A) was assigned full time by the Armed Forces to a civilian 
institution for a course of education which was substantially 
the same as established courses offered to civilians, (B) served as 
a cadet or midshipman at one of the service academies, or (C) 
served under the provisions of section 12103(d) of title 10 pursuant 
to an enlistment in the Army National Guard or the Air National 
Guard or as a Reserve for service in the Army Reserve, Navy Reserve, 
Air Force Reserve, Marine Corps Reserve, or Coast Guard 
Reserve unless at some time subsequent to the completion of such 
period of active duty for training such individual served on active 
duty for a consecutive period of one year or more (not including any 
service as a cadet or midshipman at one of the service academies). 
(b) The term ï¿½ï¿½program of educationï¿½ï¿½ means any curriculum or 
any combination of unit courses or subjects pursued at an educational 
institution which is generally accepted as necessary to fulfill 
requirements for the attainment of a predetermined and identified 
educational, professional, or vocational objective. Such term 
also means any curriculum of unit courses or subjects pursued at 
an educational institution which fulfill requirements for the 
attainment of more than one predetermined and identified educational, 
professional, or vocational objective if all the objectives pursued are 
generally recognized as being reasonably related to a single career 
field. Such term also means any unit course or subject, or combination 
of courses or subjects, pursued by an eligible veteran at an 
educational institution, required by the Administrator of the Small 

493 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3452 

Business Administration as a condition to obtaining financial 
assistance under the provisions of section 7(i)(1) of the Small 
Business Act (15 U.S.C. 636(i)(1)). Such term also includes licensing or 
certification tests, the successful completion of which demonstrates 
an individualï¿½s possession of the knowledge or skill required to 
enter into, maintain, or advance in employment in a predetermined 
and identified vocation or profession, provided such tests and the 
licensing or credentialing organizations or entities that offer such 
tests are approved by the Secretary in accordance with section 
3689 of this title. Such term also includes any course, or combination 
of courses, offered by a qualified provider of entrepreneurship 
courses. Such term also includes national tests for admission to 
institutions of higher learning or graduate schools (such as the 
Scholastic Aptitude Test (SAT), Law School Admission Test (LSAT), 
Graduate Record Exam (GRE), and Graduate Management Admission Test 
(GMAT)) and national tests providing an opportunity for 
course credit at institutions of higher learning (such as the Advanced 
Placement (AP) exam and College-Level Examination Program (CLEP)). 

(c) The term ï¿½ï¿½educational institutionï¿½ï¿½ means any public or private 
elementary school, secondary school, vocational school, correspondence 
school, business school, junior college, teachersï¿½ college, college, 
normal school, professional school, university, or scientific or 
technical institution, or other institution furnishing education for 
adults. Such term includes any entity that provides 
training required for completion of any State-approved alternative 
teacher certification program (as determined by the Secretary). 
Such term also includes any private entity (that meets such 
requirements as the Secretary may establish) that offers, either 
directly or under an agreement with another entity (that meets such 
requirements), a course or courses to fulfill requirements for the 
attainment of a license or certificate generally recognized as 
necessary to obtain, maintain, or advance in employment in a profession 
or vocation in a high technology occupation (as determined by 
the Secretary). Such term also includes any qualified provider of 
entrepreneurship courses. 
(d) The term ï¿½ï¿½dependentï¿½ï¿½ means- 
(1) a child of an eligible veteran; 
(2) a dependent parent of an eligible veteran; and 
(3) the spouse of an eligible veteran. 
(e) The term ï¿½ï¿½training establishmentï¿½ï¿½ means any of the following: 
(1) An establishment providing apprentice or other on-job 
training, including those under the supervision of a college or 
university or any State department of education. 
(2) An establishment providing self-employment on-job 
training consisting of full-time training for a period of less 
than six months that is needed or accepted for purposes of obtaining 
licensure to engage in a self-employment occupation or 
required for ownership and operation of a franchise that is the 
objective of the training. 
(3) A State board of vocational education. 
(4) A Federal or State apprenticeship registration agency. 
(5) The sponsor of a program of apprenticeship. 

Sec. 3452 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 494 

(6) An agency of the Federal Government authorized to supervise such 
training. 
(f) The term ï¿½ï¿½institution of higher learningï¿½ï¿½ means a college, 
university, or similar institution, including a technical or business 
school, offering postsecondary level academic instruction that leads 
to an associate or higher degree if the school is empowered by the 
appropriate State education authority under State law to grant an 
associate or higher degree. When there is no State law to authorize 
the granting of a degree, the school may be recognized as an 
institution of higher learning if it is accredited for degree programs 
by a recognized accrediting agency. Such term shall also include a 
hospital offering educational programs at the postsecondary level 
without regard to whether the hospital grants a postsecondary degree. 
Such term shall also include an educational institution which is not 
located in a State, which offers a course leading to a standard college 
degree, or the equivalent, and which is recognized as such by 
the secretary of education (or comparable official) of the country or 
other jurisdiction in which the institution is located. 
(g) The term ï¿½ï¿½standard college degreeï¿½ï¿½ means an associate or 
higher degree awarded by (1) an institution of higher learning that 
is accredited as a collegiate institution by a recognized regional or 
national accrediting agency; or (2) an institution of higher learning 
that is a ï¿½ï¿½candidateï¿½ï¿½ for accreditation as that term is used by the 
regional or national accrediting agencies; or (3) an institution of 
higher learning upon completion of a course which is accredited by 
an agency recognized to accredit specialized degree-level programs. 
For the purpose of this section, the accrediting agency must be one 
recognized by the Secretary of Education under the provisions of 
section 3675 of this title. 
(h) The term ï¿½ï¿½qualified provider of entrepreneurship coursesï¿½ï¿½ 
means any of the following entities insofar as such entity offers, 
sponsors, or cosponsors an entrepreneurship course (as defined in 
section 3675(c)(2) of this title): 
(1) Any small business development center described in 
section 21 of the Small Business Act (15 U.S.C. 648). 
(2) The National Veterans Business Development Corporation (established 
under section 33 of the Small Business Act 
(15 U.S.C. 657c)). 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 13, Sec. 1652; 
amended Pub. 

L. 90-77, title III, Sec. 304(c), Aug. 31, 1967, 81 Stat. 186; Pub. L. 
91-219, title II, Sec. 201, Mar. 26, 1970, 84 Stat. 78; Pub. L. 91-584, 
Sec. 10, Dec. 24, 1970, 84 Stat. 1577; Pub. L. 93-508, title II, Sec. 201, 
Dec. 3, 1974, 88 Stat. 1581; Pub. L. 94-502, title II, Sec. 202, 210(1),
211(1), title IV, Sec. 402, Oct. 15, 1976, 90 Stat. 2385, 2388, 2392; 
Pub. L. 96-466, title III, Sec. 307(a), title VIII, Sec. 801(a), Oct. 17, 
1980, 94 Stat. 2193, 2216; Pub. L. 97-295, Sec. 4(38), Oct. 12, 1982, 96 
Stat. 1307; renumbered Sec. 3452 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-446, title VI, Sec. 
603(a), Nov. 2, 1994, 108 Stat. 4671; Pub. L. 104-275, title I, Sec. 
102, Oct. 9, 1996, 110 Stat. 3326; Pub. L. 106-419, title I, Sec. 
122(a), Nov. 1, 2000, 114 Stat. 1833; Pub. L. 107-14, Sec. 8(a)(4), June 
5, 2001, 115 Stat. 34; Pub. L. 107-103, title I, Sec. 110(a), Dec. 27, 
2001, 115 Stat. 986; Pub. L. 108-183, title III, Secs. 301(a), 
305(c)-(e), Dec. 16, 2003, 117 Stat. 2658, 2660; Pub. L. 108-454, 
title I, Secs. 106(a), 110(a), Dec. 10, 2004, 118 Stat. 3602, 
3605; Pub. L. 109-163, div. A, title V, Sec. 515(e)(4), Jan. 6, 2006, 
119 Stat. 3236.) 

495 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3462 

SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 

ï¿½ 3461. Eligibility; entitlement; duration 

(a) ENTITLEMENT.-Except as provided in subsection (c) and in 
the second sentence of this subsection, each eligible veteran shall 
be entitled to educational assistance under this chapter or chapter 
36 for a period of one and one-half months (or the equivalent thereof 
in part-time educational assistance) for each month or fraction 
thereof of the veteranï¿½s service on active duty after January 31, 
1955. If an eligible veteran has served a period of 18 months or 
more on active duty after January 31, 1955, and has been released 
from such service under conditions that would satisfy the veteranï¿½s 
active duty obligation, the veteran shall be entitled to educational 
assistance under this chapter for a period of 45 months (or the 
equivalent thereof in part-time educational assistance). In the case 
of any person serving on active duty on December 31, 1976, or a 
person whose eligibility is based on section 3452(a)(1)(B) of this 
chapter, the ending date for computing such personï¿½s entitlement 
shall be the date of such personï¿½s first discharge or release from 
active duty after December 31, 1976. 
(b) ENTITLEMENT LIMITATIONS.-Whenever the period of entitlement under 
this section of an eligible veteran who is enrolled in 
an educational institution regularly operated on the quarter or 
semester system ends during a quarter or semester, such period shall 
be extended to the termination of such unexpired quarter or semester. 
In educational institutions not operated on the quarter or semester 
system, whenever the period of eligibility ends after a major 
portion of the course is completed such period shall be extended to 
the end of the course or for twelve weeks, whichever is the lesser 
period. 
(c) DURATION OF ENTITLEMENT.-Except as provided in subsection (b) and 
in subchapter V of this chapter, no eligible veteran 
shall receive educational assistance under this chapter in excess of 
45 months. 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 13, Sec. 1661; 
amended Pub. 

L. 90-77, title III, Sec. 306(b)(2), Aug. 31, 1967, 81 Stat. 188; Pub. 
L. 90-631, Sec. 1(b), Oct. 23, 1968, 82 Stat. 1331; Pub. L. 91-219, 
title II, Sec. 204(a)(1), Mar. 26, 1970, 84 Stat. 79; Pub. L. 92-540, 
title IV, Sec. 401(1), Oct. 24, 1972, 86 Stat. 1089; Pub. L. 93-508, 
title II, Sec. 202, Dec. 3, 1974, 88 Stat. 1581; Pub. L. 94-502, title 
II, Sec. 203, 211(2), title IV, Sec. 403(a), Oct. 15, 1976, 90 Stat. 
2386, 2388, 2393; Pub. L. 96-466, title VI, Sec. 601(b), Oct. 17, 
1980, 94 Stat. 2208; renumbered Sec. 3461 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 109-233, 
title V, Sec. 503(8)(A), (B), June 15, 2006, 120 Stat. 416.) 
ï¿½ 3462. Time limitations for completing a program of education 

(a) DELIMITING PERIOD FOR COMPLETION.-(1) Subject to paragraph (4) of 
this subsection, no educational assistance shall be afforded an 
eligible veteran under this chapter beyond the date 10 years after the 
veteranï¿½s last discharge or release from active duty after January 31, 
1955; except that, in the case of any eligible veteran who was 
prevented from initiating or completing such veteranï¿½s chosen program 
of education within such time period because of a physical or mental 
disability which was not the result 
of such veteranï¿½s own willful misconduct, such veteran shall, upon 

Sec. 3462 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 496 

application made within one year after (A) the last date of the 
delimiting period otherwise applicable under this section, (B) the 
termination of the period of such mental or physical disability, or (C) 
October 1, 1980, whichever is the latest, be granted an extension 
of the applicable delimiting period for such length of time as the 
Secretary determines, from the evidence, that such veteran was so 
prevented from initiating or completing such program of education. 
When an extension of the applicable delimiting period is granted 
a veteran under the preceding sentence, the delimiting period with 
respect to such veteran will again begin running on the first day 
following such veteranï¿½s recovery from such disability on which it 
is reasonably feasible, as determined in accordance with regulations 
which the Secretary shall prescribe, for such veteran to initiate or 
resume pursuit of a program of education with educational 
assistance under this chapter. 

ï¿½(2) Repealed. Pub. L. 108-183, title III, Sec. 306(d), Dec. 16, 
2003, 117 Stat. 2661.ï¿½ 

ï¿½(3) Repealed. Pub. L. 107-14, Sec. 8(a)(5), June 5, 2001, 115 
Stat. 34.ï¿½ 

(4) For purposes of paragraph (1) of this subsection, a veteranï¿½s 
last discharge or release from active duty shall not include any 
discharge or release from a period of active duty of less than 90 days 
of continuous service unless the individual involved is discharged 
or released for a service-connected disability, for a medical condition 
which preexisted such service and which the Secretary determines is not 
service connected, for hardship, or as a result of a reduction in force 
as described in section 3011(a)(1)(A)(ii)(III) of this 
title. 
(b) CORRECTION OF DISCHARGE.-In the case of any eligible veteran who 
has been prevented, as determined by the Secretary, from 
completing a program of education under this chapter within the 
period prescribed by subsection (a), because the veteran had not 
met the nature of discharge requirements of this chapter before a 
change, correction, or modification of a discharge or dismissal made 
pursuant to section 1553 of title 10, the correction of the military 
records of the proper service department under section 1552 of title 
10, or other corrective action by competent authority, then the 10year 
delimiting period shall run from the date the veteranï¿½s discharge or 
dismissal was changed, corrected, or modified. 
(c) SAVINGS CLAUSE.-In the case of any eligible veteran who 
was discharged or released from active duty before June 1, 1966, 
the 10-year delimiting period shall run from such date, if it is later 
than the date which otherwise would be applicable. In the case of 
any eligible veteran who was discharged or released from active 
duty before August 31, 1967, and who pursues a course of farm 
cooperative training, apprenticeship or other training on the job, the 
10-year delimiting period shall run from August 31, 1967, if it is 
later than the date which would otherwise be applicable. 
(d) PRISONERS OF WAR.-In the case of any veteran (1) who 
served on or after January 31, 1955, (2) who became eligible for 
educational assistance under the provisions of this chapter or chapter 
36 of this title, and (3) who, subsequent to the veteranï¿½s last 
discharge or release from active duty, was captured and held as a 
prisoner of war by a foreign government or power, there shall be 

497 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3471 

excluded, in computing the veteranï¿½s 10-year period of eligibility for 
educational assistance, any period during which the veteran was so 
detained and any period immediately following the veteranï¿½s release 
from such detention during which the veteran was hospitalized at a 
military, civilian, or Department of Veterans Affairs medical facility. 

(e) TERMINATION OF ASSISTANCE.-No educational assistance 
shall be afforded any eligible veteran under this chapter or chapter 
36 of this title after December 31, 1989. 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 14, Sec. 1662; 
amended Pub. 

L. 90-77, title III, Sec. 305, Aug. 31, 1967, 81 Stat. 188; Pub. L. 
93-337, Sec. 1, July 10, 1974, 88 Stat. 292; Pub. L. 94-502, title II, 
Sec. 211(3), title IV, Sec. 403(b), Oct. 15, 1976, 90 Stat. 2388, 2393; 
Pub. L. 95-202, title II, Sec. 203(a)(1), (b)(1), Nov. 23, 1977, 91 
Stat. 1439; Pub. L. 96-466, title III, Sec. 301, Oct. 17, 1980, 94 
Stat. 2191; Pub. L. 97-35, title XX, Sec. 2003(b)(1), Aug. 13, 1981, 
95 Stat. 782; Pub. L. 97-72, title II, Sec. 201(a), Nov. 3, 1981, 95 
Stat. 1054; Pub. L. 97-295, Sec. 4(39), Oct. 12, 1982, 96 Stat. 1307; 
Pub. L. 97-306, title II, Sec. 206(a), Oct. 14, 1982, 96 Stat. 1435; 
Pub. L. 98-160, title VII, Sec. 702(10), Nov. 21, 1983, 97 Stat. 1009; 
Pub. L. 101-237, title IV, Sec. 420(a)(3), 423(b)(1), Dec. 18, 1989, 
103 Stat. 2087, 2092; renumbered Sec. 3462 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 107-14, 
Sec. 8(a)(5), June 5, 2001, 115 Stat. 34; Pub. L. 108-183, title III, 
Sec. 306(d), Dec. 16, 2003, 117 Stat. 2661; Pub. L. 109-233, title V, 
Sec. 503(8)(A), (C), June 15, 2006, 120 Stat. 416.) 
ï¿½ï¿½ 3463. Vacantï¿½ 

SUBCHAPTER III-ENROLLMENT 

ï¿½ 3470. Selection of program 

Subject to the provisions of this chapter, each eligible veteran 
may select a program of education to assist the veteran in attaining 
an educational, professional, or vocational objective at any 
educational institution (approved in accordance with chapter 36 of this 
title) selected by the veteran, which will accept and retain the veteran 
as a student or trainee in any field or branch of knowledge 
which such institution finds the veteran qualified to undertake or 
pursue. 

(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 15, Sec. 1670; 
amended Pub. 

L. 94-502, title II, Sec. 211(5), Oct. 15, 1976, 90 Stat. 2388; 
renumbered Sec. 3470, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 3471. Applications; approval 

Any eligible veteran, or any person on active duty (after consultation 
with the appropriate service education officer), who desires to 
initiate a program of education under this chapter shall 
submit an application to the Secretary which shall be in such form, 
and contain such information, as the Secretary shall prescribe. The 
Secretary shall approve such application unless the Secretary finds 
that (1) such veteran or person is not eligible for or entitled to the 
educational assistance for which application is made, (2) the veteranï¿½s 
or personï¿½s selected educational institution or training establishment 
fails to meet any requirement of this chapter or chapter 
36 of this title, (3) the veteranï¿½s or personï¿½s enrollment in, or pursuit 
of, the program of education selected would violate any provision of this 
chapter or chapter 36 of this title, or (4) the veteran 
or person is already qualified, by reason of previous education or 
training, for the educational, professional, or vocational objective 


Sec. 3472 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 498 

for which the program of education is offered. The Secretary shall 
not treat a person as already qualified for the objective of a program of 
education offered by a qualified provider of entrepreneurship courses 
solely because such person is the owner or operator of 
a business. The Secretary shall notify the veteran or person of the 
approval or disapproval of the veteranï¿½s or personï¿½s application. 

(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 15, Sec. 1671; 
amended Pub. 

L. 92-540, title III, Sec. 302, Oct. 24, 1972, 86 Stat. 1080; Pub. L. 
94-502, title II, Sec. 211(6), Oct. 15, 1976, 90 Stat. 2388; Pub. L. 
96-466, title III, Sec. 302, Oct. 17, 1980, 94 Stat. 2192; Pub. L. 
101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3471, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 108-183, title III, Sec. 305(b), Dec. 16, 2003, 
117 Stat. 2660.) 
ï¿½ï¿½ 3472. Vacantï¿½ 

ï¿½ï¿½ 3473. Repealed. Pub. L. 102-568, title III, Sec. 313(a)(3)(A), 
Oct. 29, 1992, 106 Stat. 4332ï¿½ 

ï¿½ 3474. Discontinuance for unsatisfactory conduct or 
progress 

The Secretary shall discontinue the educational assistance allowance 
of an eligible veteran if, at any time, the Secretary finds 
that according to the regularly prescribed standards and practices 
of the educational institution, the veteranï¿½s attendance, conduct, or 
progress is unsatisfactory. The Secretary may renew the payment 
of the educational assistance allowance only if the Secretary finds 
that- 

(1) the veteran will be resuming enrollment at the same 
educational institution in the same program of education and 
the educational institution has both approved such veteranï¿½s 
reenrollment and certified it to the Department of Veterans Affairs; or 
(2) in the case of a proposed change of either educational 
institution or program of education by the veteran- 
(A) the cause of the unsatisfactory attendance, conduct, or progress 
has been removed; 
(B) the program proposed to be pursued is suitable to 
the veteranï¿½s aptitudes, interests, and abilities; and 
(C) if a proposed change of program is involved, the 
change meets the requirements for approval under section 
3691 of this title. 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 16, Sec. 1674; 
amended Pub. L. 94-502, title II, Sec. 206, 211(8), Oct. 15, 1976, 90 
Stat. 2387, 2388; Pub. L. 95-202, title III, Sec. 305(b)(1), Nov. 23, 
1977, 91 Stat. 1443; Pub. L. 96-466, title III, Sec. 306, Oct. 17, 
1980, 94 Stat. 2193; Pub. L. 101-237, title IV, Sec. 411(a), 412(b), 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2084, 2085, 2092; renumbered 
Sec. 3474 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406.) 
ï¿½ï¿½ 3475. Vacantï¿½ 

ï¿½ 3476. Education outside the United States 

An eligible veteran may not enroll in any course offered by an 
educational institution not located in a State unless that educational 
institution is an approved institution of higher learning 
and the course is approved by the Secretary. The Secretary may 
deny or discontinue educational assistance under this chapter in 
the case of any veteran enrolled in an institution of higher learning 


499 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3482 

not located in a State if the Secretary determines that such enrollment 
is not in the best interest of the veteran or the Federal Government. 

(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 17, Sec. 1676; 
amended Pub. L. 94-502, title II, Sec. 211(9), Oct. 15, 1976, 90 Stat. 
2389; Pub. L. 96-466, title III, Sec. 307(b), Oct. 17, 1980, 94 Stat. 
2193; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3476, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 103-446, title VI, Sec. 604(a), Nov. 
2, 1994, 108 Stat. 4671.) 
ï¿½ï¿½ï¿½ 3477, 3478. Vacantï¿½ 

SUBCHAPTER IV-PAYMENTS TO ELIGIBLE VETERANS; 
VETERAN-STUDENT SERVICES 


ï¿½ 3481. Educational assistance allowance 

(a) GENERAL.-The Secretary shall, in accordance with the applicable 
provisions of this section and chapter 36 of this title, pay 
to each eligible veteran who is pursuing a program of education 
under this chapter an educational assistance allowance to meet, in 
part, the expenses of the veteranï¿½s subsistence, tuition, fees, 
supplies, books, equipment, and other educational costs. 
(b) INSTITUTIONAL TRAINING.-The educational assistance allowance of an 
eligible veteran pursuing a program of education, 
other than a program exclusively by correspondence, at an educational 
institution shall be paid as provided in chapter 36 of this 
title. 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 17, Sec. 1681; 
amended Pub. 

L. 91-219, title II, Sec. 205, Mar. 26, 1970, 84 Stat. 81; Pub. L. 
91-584, Sec. 6, Dec. 24, 1970, 84 Stat. 1576; Pub. L. 92-540, title II, 
Sec. 202, Oct. 24, 1972, 86 Stat. 1079; Pub. L. 94-502, title II, Sec. 
210(2), 211(10), Oct. 15, 1976, 90 Stat. 2388, 2389; Pub. L. 97-35, 
title XX, Sec. 2003(b)(4), Aug. 13, 1981, 95 Stat. 782; Pub. L. 101-
237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3481, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 
Stat. 406; amended Pub. L. 109-233, title V, Sec. 503(8)(A), 
June 15, 2006, 120 Stat. 416.) 
ï¿½ 3482. Computation of educational assistance allowances 

(a)(1) Except as provided in subsection (b), (c), or (g) of this 
section, or section 3687 of this title, while pursuing a program of 
education under this chapter of half-time or more, each eligible veteran 
shall be paid the monthly educational assistance allowance set 
forth in column II, III, IV, or V (whichever is applicable as determined 
by the veteranï¿½s dependency status) opposite the applicable 
type of program as shown in column I: 

Column I Column II Column III Column IV Column V 
Type of program No dependents 
One dependent 
Two dependents More than two dependents 
Institutional training: 
Full-time ..................... 
Three-quarter-time ..... 
Half-time .................... 
Cooperative ................ 
$376 
283 
188 
304 
$448 
336 
224 
355 
$510 
383 
255 
404 
The amount in column IV, plus the following for each dependent in 
excess of two: 
$32 
24 
17 
23 

(2) A ï¿½ï¿½cooperativeï¿½ï¿½ program, other than a ï¿½ï¿½farm cooperativeï¿½ï¿½ 
program, means a full-time program of education which consists of 

Sec. 3482 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 500 

institutional courses and alternate phases of training in a business 
or industrial establishment with the training in the business or 
industrial establishment being strictly supplemental to the 
institutional portion. 

(b) The educational assistance allowance of an individual pursuing a 
program of education- 
(1) while on active duty, or 
(2) on less than a half-time basis, 
shall be computed at the rate of (A) the established charges for 
tuition and fees which the institution requires similarly 
circumstanced nonveterans enrolled in the same program to pay, or 
(B) $376 per month for a full-time course, whichever is the lesser. 
An individualï¿½s entitlement shall be charged for institutional 
courses on the basis of the applicable monthly training time rate 
as determined under section 3688 of this title. 
(c)(1) An eligible veteran who is enrolled in an educational 
institution for a ï¿½ï¿½farm cooperativeï¿½ï¿½ program consisting of 
institutional agricultural courses prescheduled to fall within 44 
weeks of any period of 12 consecutive months and who pursues such 
program on- 

(A) a full-time basis (a minimum of ten clock hours per 
week or four hundred and forty clock hours in such year 
prescheduled to provide not less than eighty clock hours in any 
three-month period), 
(B) a three-quarter-time basis (a minimum of 7 clock hours 
per week), or 
(C) a half-time basis (a minimum of 5 clock hours per 
week), 
shall be eligible to receive an educational assistance allowance at 
the appropriate rate provided in the table in paragraph (2) of this 
subsection, if such eligible veteran is concurrently engaged in 
agricultural employment which is relevant to such institutional 
agricultural courses as determined under standards prescribed by the 
Secretary. In computing the foregoing clock hour requirements there 
shall be included the time involved in field trips and individual and 
group instruction sponsored and conducted by the educational institution 
through a duly authorized instructor of such institution in 
which the veteran is enrolled. 

(2) The monthly educational assistance allowance of an eligible 
veteran pursuing a farm cooperative program under this chapter 
shall be paid as set forth in column II, III, IV, or V (whichever is 
applicable as determined by the veteranï¿½s dependency status) opposite 
the basis shown in column I: 
Column I Column II Column III Column IV Column V 
Basis No dependents 
One dependent 
Two dependents More than two dependents 
Full-time ......................... 
Three-quarter-time .......... 
Half-time ......................... 
$304 
228 
152 
$355 
266 
178 
$404 
303 
202 
The amount in column IV, plus the following for each 
dependent in excess of two: 
$23 
18 
12 

(d)(1) Notwithstanding the prohibition in section 3471 of this 
title prohibiting enrollment of an eligible veteran in a program of 


501 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3482 

education in which such veteran has ï¿½ï¿½already qualified,ï¿½ï¿½ a veteran 
shall be allowed up to six months of educational assistance (or the 
equivalent thereof in part-time assistance) for the pursuit of 
refresher training to permit such veteran to update such veteranï¿½s 
knowledge and skills and to be instructed in the technological advances 
which have occurred in such veteranï¿½s field of employment 
during and since the period of such veteranï¿½s active military service. 

(2) A veteran pursuing refresher training under this subsection 
shall be paid an educational assistance allowance based upon the 
rate prescribed in the table in subsection (a)(1) or in subsection 
(c)(2) of this section, whichever is applicable. 
(3) The educational assistance allowance paid under the authority of 
this subsection shall be charged against the period of entitlement the 
veteran has earned pursuant to section 3461(a) of 
this title. 
(e) The educational assistance allowance of an eligible veteran 
pursuing an independent study program which leads to a standard 
college degree shall be computed at the rate provided in subsection 
(b) of this section. If the entire training is to be pursued by 
independent study, the amount of such veteranï¿½s entitlement to 
educational assistance under this chapter shall be charged in 
accordance with the rate at which the veteran is pursuing the 
independent study program but at not more than the rate at which 
such entitlement is charged for pursuit of such program on less 
than a half-time basis. In any case in which independent study is 
combined with resident training, the educational assistance allowance 
shall be paid at the applicable institutional rate based on the 
total training time determined by adding the number of semester 
hours (or the equivalent thereof) of resident training to the number 
of semester hours (or the equivalent thereof) of independent study 
that do not exceed the number of semester hours (or the equivalent 
thereof) required for the less than half-time institutional rate, as 
determined by the Secretary, for resident training. A veteranï¿½s 
entitlement shall be charged for a combination of independent study 
and resident training on the basis of the applicable monthly training 
time rate as determined under section 3688 of this title. 
(f) The educational assistance allowance of an eligible veteran 
pursuing a course by open circuit television shall be computed in 
the same manner that such allowance is computed under subsection (e) 
of this section for an independent study program. 
(g)(1) Subject to the provisions of paragraph (2) of this subsection, 
the amount of the educational assistance allowance paid to 
an eligible veteran who is pursuing a program of education under 
this chapter while incarcerated in a Federal, State, local, or other 
penal institution or correctional facility for conviction of a felony 
may not exceed such amount as the Secretary determines, in accordance 
with regulations which the Secretary shall prescribe, is 
necessary to cover the cost of established charges for tuition and 
fees required of similarly circumstanced nonveterans enrolled in 
the same program and to cover the cost of necessary supplies, 
books, and equipment, or the applicable monthly educational assistance 
allowance prescribed for a veteran with no dependents in 
subsection (a)(1) or (c)(2) of this section or section 3687(b)(1) of 
this 


Sec. 3482A CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 502 

title, whichever is the lesser. The amount of the educational 
assistance allowance payable to a veteran while so incarcerated shall be 
reduced to the extent that the tuition and fees of the veteran for 
any course are paid under any Federal program (other than a program 
administered by the Secretary) or under any State or local 
program. 

(2) Paragraph (1) of this subsection shall not apply in the case 
of any veteran who is pursuing a program of education under this 
chapter while residing in a halfway house or participating in a 
work-release program in connection with such veteranï¿½s conviction 
of a felony. 
(h)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a licensing or certification 
test described in section 3452(b) of this title is the lesser of $2,000 
or the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for such licensing or certification test is equal to 
the number (including any fraction) determined by dividing the 
total amount paid to such individual for such test by the full-time 
monthly institutional rate of the educational assistance allowance 
which, except for paragraph (1), such individual would otherwise be 
paid under this chapter. 
(3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individualï¿½s 
available entitlement under this chapter. 
(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 18, Sec. 1682; 
amended Pub. 

L. 90-77, title III, Sec. 301, 303(b), Aug. 31, 1967, 81 Stat. 184, 
185; Pub. L. 90-631, Sec. 3, Oct. 23, 1968, 82 Stat. 1333; Pub. L. 
91-219, title I, Sec. 103(a)-(d), title II, Sec. 204(a)(3), Mar. 26, 
1970, 84 Stat. 76, 77, 79; Pub. L. 91-584, Sec. 9, Dec. 24, 1970, 84 
Stat. 1577; Pub. L. 92-540, title I, Sec. 102(2)-(4), title III, Sec. 
303, title IV, Sec. 401(4), (5), Oct. 24, 1972, 86 Stat. 1075, 1081, 
1090; Pub. L. 93-508, title I, Sec. 102(2)-(4), title II, Sec. 204, 
Dec. 3, 1974, 88 Stat. 1579, 1582; Pub. L. 93-602, title II, Sec. 
203(b), Jan. 2, 1975, 88 Stat. 1958; Pub. L. 94-502, title II, Sec. 
201(1)-(3), 207, Oct. 15, 1976, 90 Stat. 2384, 2385, 2387; Pub. L. 
95-202, title I, Sec. 102(2)-(4), Nov. 23, 1977, 91 Stat. 1434; Pub. L. 
96-466, title II, Sec. 201(2)-(4), 211(2)-(4), title III, Sec. 308-310, 
title VI, Sec. 602(a), Oct. 17, 1980, 94 Stat. 2187-2190, 2194, 2208;
Pub. L. 97-35, title XX, Sec. 2003(b)(5), Aug. 13, 1981, 95 Stat. 782; 
Pub. L. 97-306, title II, Sec. 204, 205(b), Oct. 14, 1982, 96 Stat. 1434; 
Pub. L. 98-160, title VII, Sec. 702(11), Nov. 21, 1983, 97 Stat. 1009; 
Pub. L. 98-543, title II, Sec. 202(1)-(3), Oct. 24, 1984, 98 Stat. 2741; 
Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered Sec. 3482 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-275, title I, Sec. 
104(a), Oct. 9, 1996, 110 Stat. 3327; Pub. L. 106-419, title I, Sec. 
122(b)(3), Nov. 1, 2000, 114 Stat. 1834; Pub. L. 109-461, title X, Sec. 
1002(d), Dec. 22, 2006, 
120 Stat. 3465.) 
ï¿½ï¿½ 3482A. Vacantï¿½ 

ï¿½ 3483. Approval of courses 

An eligible veteran shall receive the benefits of this chapter 
while enrolled in a course of education offered by an educational 
institution only if such course is approved in accordance with the 
provisions of subchapter I of chapter 36 of this title. 

(Added Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 80 Stat. 19, Sec. 1685; 
renumbered Sec. 1686, Pub. L. 90-77, title III, Sec. 304(a), Aug. 31, 
1967, 81 Stat. 186; renumbered Sec. 1683, Pub. L. 92-540, title IV, 
Sec. 401(7), Oct. 24, 1972, 86 Stat. 1090; renumbered Sec. 3483, Pub. 
L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 


503 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3485 

ï¿½ 3484. Apprenticeship or other on-job training; correspondence courses 

Any eligible veteran may pursue a program of apprenticeship 
or other on-job training or a program of education exclusively by 
correspondence and be paid an educational assistance allowance or 
training assistance allowance, as applicable, under the provisions 
of section 3687 or 3686 of this title. 

(Added Pub. L. 92-540, title III, Sec. 304, Oct. 24, 1972, 86 Stat. 
1081, Sec. 1684; 
renumbered Sec. 3484 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 3485. Work-study allowance 

(a)(1) Individuals utilized under the authority of subsection (b) 
shall be paid an additional educational assistance allowance 
(hereinafter in this section referred to as ï¿½ï¿½work-study allowanceï¿½ï¿½). 
Such allowance shall be paid in return for an individualï¿½s entering into 
an agreement described in paragraph (3). 

(2) Such work-study allowance shall be paid in an amount 
equal to the product of- 
(A) the applicable hourly minimum wage; and 
(B) the number of hours worked during the applicable period. 
(3) An agreement described in this paragraph is an agreement 
of an individual to perform services, during or between periods of 
enrollment, aggregating not more than a number of hours equal to 
25 times the number of weeks in the semester or other applicable 
enrollment period, required in connection with a qualifying work-
study activity. 
(4) For the purposes of this section, the term ï¿½ï¿½qualifying work-
study activityï¿½ï¿½ means any of the following: 
(A) The outreach services program under chapter 63 of this 
title as carried out under the supervision of a Department employee or, 
during the period preceding June 30, 2010, outreach services to 
servicemembers and veterans furnished by employees of a State approving 
agency. 
(B) The preparation and processing of necessary papers 
and other documents at educational institutions or regional offices or 
facilities of the Department. 
(C) The provision of hospital and domiciliary care and 
medical treatment under chapter 17 of this title, including, 
during the period preceding June 30, 2010, the provision of 
such care to veterans in a State home for which payment is 
made under section 1741 of this title. 
(D) Any other activity of the Department as the Secretary 
determines appropriate. 
(E) In the case of an individual who is receiving educational 
assistance under chapter 1606 or 1607 of title 10, an activity relating 
to the administration of that chapter at Department of Defense, Coast 
Guard, or National Guard facilities. 
(F) During the period preceding June 30, 2010, an activity 
relating to the administration of a national cemetery or a State 
veteransï¿½ cemetery. 

Sec. 3485 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 504 

(5) An individual may elect, in a manner prescribed by the Secretary, to 
be paid in advance an amount equal to 40 percent of the 
total amount of the work-study allowance agreed to be paid under 
the agreement in return for the individualï¿½s agreement to perform 
the number of hours of work specified in the agreement (but not 
more than an amount equal to 50 times the applicable hourly minimum 
wage). 
(6) For the purposes of this subsection and subsection (e), the 
term ï¿½ï¿½applicable hourly minimum wagesï¿½ï¿½ means- 
(A) the hourly minimum wage under section 6(a) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)); or 
(B) the hourly minimum wage under comparable law of 
the State in which the services are to be performed, if such 
wage is higher than the wage referred to in subparagraph (A) 
and the Secretary has made a determination to pay such higher wage. 
(b) Notwithstanding any other provision of law, the Secretary 
shall, subject to the provisions of subsection (e) of this section, 
utilize, in connection with the activities specified in subsection (a)(1) 
of this section, the service of individuals who are pursuing programs of 
rehabilitation, education, or training under chapter 30, 
31, 32, 33, or 34 of this title or chapter 1606 or 1607 of title 10, 
at a rate equal to at least three-quarters of that required of a full-
time student. In carrying out this section, the Secretary, wherever 
feasible, shall give priority to veterans with disabilities rated at 30 
percent or more for purposes of chapter 11 of this title. In the event 
an individual ceases to be at least a three-quarter-time student before 
completing such agreement, the individual may, with the approval of the 
Secretary, be permitted to complete such agreement. 
(c) The Secretary shall determine the number of individuals 
whose services the Department of Veterans Affairs can effectively 
utilize and the types of services that such individuals may be required 
to perform, on the basis of a survey, which the Secretary 
shall conduct annually, of each Department of Veterans Affairs regional 
office in order to determine the numbers of individuals 
whose services can effectively be utilized during an enrollment period in 
each geographical area where Department of Veterans Affairs activities 
are conducted, and shall determine which individuals shall be offered 
agreements under this section in accordance 
with regulations which the Secretary shall prescribe, including as 
criteria (1) the need of the individual to augment the veteranï¿½s 
educational assistance or subsistence allowance; (2) the availability to 
the individual of transportation to the place where the individualï¿½s 
services are to be performed; (3) the motivation of the individual; 
and (4) in the case of a disabled veteran pursuing a course of 
vocational rehabilitation under chapter 31 of this title, the 
compatibility of the work assignment to the veteranï¿½s physical 
condition. 
(d) While performing the services authorized by this section, 
individuals shall be deemed employees of the United States for the 
purposes of the benefits of chapter 81 of title 5 but not for the 
purposes of laws administrated by the Office of Personnel Management. 
(e)(1) Subject to paragraph (2) of this subsection, the Secretary 
may, notwithstanding any other provision of law, enter into an 


505 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3485 

agreement with an individual under this section, or a modification 
of such an agreement, whereby the individual agrees to perform a 
qualifying work-study activity described in subsection (a)(4) and 
agrees that the Secretary shall, in lieu of paying the work-study 
allowance payable for such services, as provided in subsection (a) of 
this section, deduct the amount of the allowance from the amount 
which the individual has been determined to be indebted to the 
United States by virtue of such individualï¿½s participation in a 
benefits program under this chapter, chapter 30, 31, 32, 33, 35, or 36 
of this title, or chapter 1606 or 1607 of title 10 (other than an 
indebtedness arising from a refund penalty imposed under section 
2135 of such title). 

(2)(A) Subject to subparagraph (B) of this paragraph, the provisions 
of this section (other than those provisions which are determined by 
the Secretary to be inapplicable to an agreement under 
this subsection) shall apply to any agreement authorized under 
paragraph (1) of this subsection. 

(B) For the purposes of this subsection, the Secretary may- 
(i) waive, in whole or in part, the limitations in subsection 
(a) of this section concerning the number of hours and periods 
during which services can be performed by the individual and 
the provisions of subsection (b) of this section requiring the 
individualï¿½s pursuit of a program of rehabilitation, education, or 
training; 
(ii) in accordance with such terms and conditions as may 
be specified in the agreement under this subsection, waive or 
defer charging interest and administrative costs pursuant to 
section 5315 of this title on the indebtedness to be satisfied by 
performance of the agreement; and 
(iii) notwithstanding the indebtedness offset provisions of 
section 5314 of this title, waive or defer until the termination 
of an agreement under this subsection the deduction of all or 
any portion of the amount of indebtedness covered by the 
agreement from future payments to the individual as described 
in section 5314 of this title. 
(3)(A) Subject to the provisions of subparagraphs (B) and (C) 
of this paragraph, an agreement authorized under this subsection 
shall terminate in accordance with the provisions of this section 
and the terms and conditions of the agreement which are consistent with 
this subsection. 

(B) In no event shall an agreement under this subsection continue in 
force after the total amount of the individualï¿½s indebtedness described 
in paragraph (1) of this subsection has been recouped, waived, or 
otherwise liquidated. 
(C) Notwithstanding the provisions of subparagraphs (A) and 
(B) of this paragraph, if the Secretary finds that an individual was 
without fault and was allowed to perform services described in the 
agreement after its termination, the Secretary shall, as reasonable 
compensation therefor, pay the individual at the applicable hourly 
minimum wage rate for such services as the Secretary determines 
were satisfactorily performed. 
(4) The Secretary shall promulgate regulations to carry out 
this subsection. 

Sec. 3486 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 506 

(Added Pub. L. 92-540, title II, Sec. 203, Oct. 24, 1972, 86 Stat. 
1079, Sec. 1685; amended Pub. L. 93-508, title II, Sec. 205, Dec. 3, 
1974, 88 Stat. 1582; Pub. L. 94-502, title II, Sec. 208, 211(11), Oct. 
15, 1976, 90 Stat. 2388, 2389; Pub. L. 95-202, title I, Sec. 105, Nov. 
23, 1977, 91 Stat. 1435; Pub. L. 96-466, title VIII, Sec. 801(b), Oct. 
17, 1980, 94 Stat. 2216; Pub. L. 97-295, Sec. 4(42), Oct. 12, 1982, 96 
Stat. 1308; Pub. L. 99-576, title III, Sec. 308(c), Oct. 28, 1986, 100 
Stat. 3270; Pub. L. 101-237, title IV, Sec. 405(a)-(d)(2), (4)(A), 
423(b)(1), Dec. 18, 1989, 103 Stat. 2080, 2081, 2092; Pub. L. 102-16, 
Sec. 6(a)-(b)(2), 10(a)(5), Mar. 22, 1991, 105 Stat. 50, 51, 55; Pub. 
L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 3485 and amended Pub. L. 102-83, Sec. 2(c)(2), 5(a), 
Aug. 6, 1991, 105 Stat. 402, 406; Pub. L. 102-568, title III, Sec. 311, 
Oct. 29, 1992, 106 Stat. 4330; Pub. L. 105-368, title II, Sec. 202(a), 
Nov. 11, 1998, 112 Stat. 3326; Pub. L. 107-14, Sec. 8(a)(16), June 5, 
2001, 115 Stat. 35; Pub. L. 107-103, title I, Sec. 107(a), Dec. 27, 
2001, 115 Stat. 983; Pub. L. 107-330, title III, Sec. 308(g)(11), Dec. 
6, 2002, 116 Stat. 2829; Pub. L. 108-183, title III, Sec. 306(f)(1), 
Dec. 16, 2003, 117 Stat. 2661; Pub. L. 109-233, title IV, Sec. 
402(e)(1), June 15, 2006, 120 Stat. 411; Pub. L. 109-444, Sec. 2(g), 
Dec. 21, 2006, 120 Stat. 3305; Pub. L. 109-461, title III, Secs. 304, 
307, title X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3428, 3429, 3468; 
Pub. L. 110-157, title III, Sec. 302, Dec. 26, 2007, 121 Stat. 1836; 
Pub. L. 110-252, title V, Sec. 5003(b)(2)(A)(i), June 30, 2008, 122 
Stat. 2375 (conforming amendment effective August 1, 2009).) 

ï¿½ï¿½ï¿½ 3486, 3487. Vacantï¿½ 

SUBCHAPTER V-SPECIAL ASSISTANCE FOR THE 
EDUCATIONALLY DISADVANTAGED 


ï¿½ 3490. Purpose 

It is the purpose of this subchapter (1) to encourage and assist 
veterans who have academic deficiencies to attain a high school 
education or its equivalent and to qualify for and pursue courses 
of higher education, (2) to assist eligible veterans to pursue 
postsecondary education through tutorial assistance where required, and 

(3) to encourage educational institutions to develop programs which 
provide special tutorial, remedial, preparatory, or other educational 
or supplementary assistance to such veterans. 
(Added Pub. L. 91-219, title II, Sec. 204(a)(4), Mar. 26, 1970, 84 Stat. 
79, Sec. 1690; renumbered Sec. 3490, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3491. Elementary and secondary education and preparatory educational 
assistance 

(a) In the case of any eligible veteran who- 
(1) has not received a secondary school diploma (or an 
equivalency certificate), or 
(2) is not on active duty and who, in order to pursue a program of 
education for which the veteran would otherwise be eligible, needs r
efresher courses, deficiency courses, or other preparatory or special 
educational assistance to qualify for admission to an appropriate 
educational institution, 
the Secretary may, without regard to so much of the provisions of 
section 3471 of this title as prohibit the enrollment of an eligible 
veteran in a program of education in which the veteran is ï¿½ï¿½already 
qualifiedï¿½ï¿½, approve the enrollment of such veteran in an appropriate 
course or courses or other special educational assistance program. 

(b)(1) The Secretary shall pay to an eligible veteran pursuing 
a course or courses or program pursuant to subsection (a)(2) of this 
section, an educational assistance allowance as provided in sections 
3481 and 3482(a) or (b) of this title. 


507 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE Sec. 3492 

(2) The Secretary shall pay to an eligible veteran described in 
subsection (a)(1) of this section who is pursuing a course or courses 
or program under this subchapter for the purpose of attaining a 
secondary school diploma (or an equivalency certificate) an educational 
assistance allowance (A) at the rate of established charges 
for tuition and fees required of similarly circumstanced non-
veterans enrolled in the same course, courses, or program, or (B) 
at the institutional full-time rate provided in section 3482(a) of this 
title, whichever is the lesser. 
(c) The provisions of section 3473(d)(1) of this title, relating to 
the disapproval of enrollment in certain courses, shall be applicable 
to the enrollment of an eligible veteran who, while serving on active 
duty, enrolls in one or more courses under this subchapter for 
the purpose of attaining a secondary school diploma (or an equivalency 
certificate). (Added Pub. L. 91-219, title II, Sec. 204(a)(4), Mar. 26, 
1970, 84 Stat. 79, Sec. 1691; amended Pub. L. 92-540, title III, Sec. 
305, Oct. 24, 1972, 86 Stat. 1081; Pub. L. 94-502, title II, Sec. 
211(12), Oct. 15, 1976, 90 Stat. 2389; Pub. L. 96-466, title III, 
Sec. 311, Oct. 17, 1980, 94 Stat. 2194; Pub. L. 97-295, Sec. 4(43), 
Oct. 12, 1982, 96 Stat. 1308; Pub. L. 97-306, title II, Sec. 203(b), 
Oct. 14, 1982, 96 Stat. 1434; Pub. 

L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3491 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 
406.) 
ï¿½ 3492. Tutorial assistance 

(a) In the case of any eligible veteran who- 
(1) is enrolled in and pursuing a postsecondary course of 
education on a half-time or more basis at an educational institution; 
and 
(2) has a deficiency in a subject required as a part of, or 
which is prerequisite to, or which is indispensable to the satisfactory 
pursuit of, an approved program of education, 
the Secretary may approve individualized tutorial assistance for 
such veteran if such assistance is necessary for the veteran to 
complete such program successfully. 

(b) The Secretary shall pay to an eligible veteran receiving tutorial 
assistance pursuant to subsection (a) of this section, in addition to 
the educational assistance allowance provided in section 
3482 of this title, the cost of such tutorial assistance in an amount 
not to exceed $100 per month, for a maximum of twelve months, 
or until a maximum of $1,200 is utilized, upon certification by the 
educational institution that- 
(1) the individualized tutorial assistance is essential to correct a 
deficiency of the eligible veteran in a subject required as 
a part of, or which is prerequisite to, or which is indispensable 
to the satisfactory pursuit of, an approved program of education; 
(2) the tutor chosen to perform such assistance is qualified 
and is not the eligible veteranï¿½s parent, spouse, child (whether 
or not married or over eighteen years of age), brother, or sister; 
and 
(3) the charges for such assistance do not exceed the customary charges 
for such tutorial assistance. 
(Added Pub. L. 91-219, title II, Sec. 204(a)(4), Mar. 26, 1970, 84 
Stat. 80, Sec. 1692; amended Pub. L. 92-540, title III, Sec. 306, Oct. 
24, 1972, 86 Stat. 1081; Pub. L. 


Sec. 3493 CH. 34-VETERANSï¿½ EDUCATIONAL ASSISTANCE 508 

93-508, title II, Sec. 206, Dec. 3, 1974, 88 Stat. 1583; Pub. L. 
94-502, title II, Sec. 209, Oct. 15, 1976, 90 Stat. 2388; Pub. L. 
95-202, title I, Sec. 102(5), Nov. 23, 1977, 91 Stat. 1434; Pub. L. 
96-466, title II, Sec. 201(5), 211(5), title III, Sec. 312, Oct. 17, 
1980, 94 Stat. 2188, 2190, 2195; Pub. L. 98-543, title II, Sec. 202(4), 
Oct. 24, 1984, 98 Stat. 2742; Pub. L. 100-689, title I, Sec. 107(c)(1), 
(2)(A), Nov. 18, 1988, 102 Stat. 4169; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3492 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3493. Effect on educational entitlement 

The educational assistance allowance or cost of individualized 
tutorial assistance authorized by this subchapter shall be paid 
without charge to any period of entitlement the veteran may have 
earned pursuant to section 3461(a) of this title. 

(Added Pub. L. 91-219, title II, Sec. 204(a)(4), Mar. 26, 1970, 84 Stat. 
80, Sec. 1693; renumbered Sec. 3493 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ï¿½ï¿½ 3495 to 3498. Vacantï¿½ 


CHAPTER 35 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


509 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½ 
CHAPTER 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ 

EDUCATIONAL ASSISTANCE 
SUBCHAPTER I-DEFINITIONS 
Sec. 
3500. Purpose. 
3501. Definitions. 
SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 
3510. Eligibility and entitlement generally. 
3511. Duration of educational assistance. 
3512. Periods of eligibility. 
3513. Application. 
3514. Processing of applications. 
SUBCHAPTER III-PROGRAM OF EDUCATION 
3520. Educational and vocational counseling. 
3521. Approval of application. 
3523. Disapproval of enrollment in certain courses. 
3524. Discontinuance for unsatisfactory progress. 
SUBCHAPTER IV-PAYMENTS TO ELIGIBLE PERSONS 
3531. Educational assistance allowance. 
3532. Computation of educational assistance allowance. 
3533. Special assistance for the educationally disadvantaged. 
3534. Apprenticeship or other on-job training; correspondence courses. 
3535. Approval of courses. 
3536. Specialized vocational training courses. 
3537. Work-study allowance. 
SUBCHAPTER V-SPECIAL RESTORATIVE TRAINING 
3540. Purpose. 
3541. Entitlement to special restorative training. 
3542. Special training allowance. 
3543. Special administrative provisions. 
SUBCHAPTER VI-MISCELLANEOUS PROVISIONS 
3561. Authority and duties of Secretary. 
3562. Nonduplication of benefits. 
3563. Notification of eligibility. 
3564. Annual adjustment of amounts of educational assistance. 

SUBCHAPTER VII-PHILIPPINE COMMONWEALTH ARMY AND PHILIPPINE 
SCOUTS 

3565. Children of certain Philippine veterans. 
3566. Definitions. 

511 


Sec. 3500 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 512 

SUBCHAPTER I-DEFINITIONS 

ï¿½ 3500. Purpose 

The Congress hereby declares that the educational program established 
by this chapter is for the purpose of providing opportunities for 
education to children whose education would otherwise be 
impeded or interrupted by reason of the disability or death of a 
parent from a disease or injury incurred or aggravated in the 
Armed Forces after the beginning of the Spanish-American War, 
and for the purpose of aiding such children in attaining the 
educational status which they might normally have aspired to and 
obtained but for the disability or death of such parent. The Congress 
further declares that the educational program extended to the surviving 
spouses of veterans who died of service-connected disabilities 
and to spouses of veterans with a service-connected total disability 
permanent in nature is for the purpose of assisting them in preparing 
to support themselves and their families at a standard of living level 
which the veteran, but for the veteranï¿½s death or service disability, 
could have expected to provide for the veteranï¿½s family. 

(Added Pub. L. 90-631, Sec. 2(a)(1), Oct. 23, 1968, 82 Stat. 1331, Sec. 
1700; amended Pub. L. 94-502, title III, Sec. 310(1), Oct. 15, 1976, 90 
Stat. 2391; renumbered 
Sec. 3500, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3501. Definitions 

(a) For the purposes of this chapter and chapter 36 of this 
title- 
(1) The term ï¿½ï¿½eligible personï¿½ï¿½ means any of the following: 
(A) A child of a person who, as a result of qualifying 
service- 
(i) died of a service-connected disability; or 
(ii) has a total disability permanent in nature resulting from a 
service-connected disability, or who died 
while a disability so evaluated was in existence. 
(B) The surviving spouse of any person who died of a 
service-connected disability sustained during a period of 
qualifying service. 
(C) The spouse or child of any member of the Armed 
Forces serving on active duty who, at the time of application for 
benefits under this chapter is listed, pursuant to 
section 556 of title 37 and regulations issued thereunder, 
by the Secretary concerned in one or more of the following 
categories and has been so listed for a total of more than 
ninety days: (i) missing in action, (ii) captured in line of 
duty by a hostile force, or (iii) forcibly detained or interned 
in line of duty by a foreign government or power. 
(D)(i) The spouse of any person who has a total disability permanent in 
nature resulting from a service-connected disability sustained during a 
period of qualifying 
service, or (ii) the surviving spouse of a veteran who died 
while a disability so evaluated was in existence. 

(E) The spouse or child of a person who- 
(i) at the time of the Secretaryï¿½s determination 
under clause (ii), is a member of the Armed Forces 

513 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3501 

who is hospitalized or receiving outpatient medical 
care, services, or treatment; 

(ii) the Secretary determines has a total disability 
permanent in nature incurred or aggravated in the 
line of duty in the active military, naval, or air service; 
and 
(iii) is likely to be discharged or released from 
such service for such disability. 
(2) The term ï¿½ï¿½childï¿½ï¿½ includes individuals who are married 
and individuals who are above the age of twenty-three years. 
(3) The term ï¿½ï¿½duty with the Armed Forcesï¿½ï¿½ as used in section 3512 of 
this title means (A) active duty, (B) active duty for 
training for a period of six or more consecutive months, or (C) 
active duty for training required by section 12103(d) of title 10. 
(4) The term ï¿½ï¿½guardianï¿½ï¿½ includes a fiduciary legally appointed by a 
court of competent jurisdiction, or any other person who has been 
appointed by the Secretary under section 
5502 of this title to receive payment of benefits for the use and 
benefit of the eligible person. 
(5) The term ï¿½ï¿½program of educationï¿½ï¿½ means any curriculum or any 
combination of unit courses or subjects pursued 
at an educational institution which is generally accepted as 
necessary to fulfill the requirements for the attainment of a 
predetermined and identified educational, professional, or vocational 
objective. Such term also includes any preparatory 
course described in section 3002(3)(B) of this title. Such term 
also includes licensing or certification tests, the successful 
completion of which demonstrates an individualï¿½s possession of the 
knowledge or skill required to enter into, maintain, or advance 
in employment in a predetermined and identified vocation or 
profession, provided such tests and the licensing or 
credentialing organizations or entities that offer such tests are 
approved by the Secretary in accordance with section 3689 of 
this title. Such term also includes national tests for admission 
to institutions of higher learning or graduate schools (such as 
the Scholastic Aptitude Test (SAT), Law School Admission Test 
(LSAT), Graduate Record Exam (GRE), and Graduate Management Admission 
Test (GMAT)) and national tests providing an 
opportunity for course credit at institutions of higher learning 
(such as the Advanced Placement (AP) exam and College-Level 
Examination Program (CLEP)). 
(6) The term ï¿½ï¿½educational institutionï¿½ï¿½ means any public or 
private secondary school, vocational school, correspondence 
school, business school, junior college, teachersï¿½ college, college, 
normal school, professional school, university, or scientific or 
technical institution, or any other institution if it furnishes 
education at the secondary school level or above. Such term 
also includes any private entity (that meets such requirements 
as the Secretary may establish) that offers, either directly or 
under an agreement with another entity (that meets such requirements), 
a course or courses to fulfill requirements for the 
attainment of a license or certificate generally recognized as 
necessary to obtain, maintain, or advance in employment in a 

Sec. 3501 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 514 

profession or vocation in a high technology occupation (as determined 
by the Secretary). 

(7) The term ï¿½ï¿½special restorative trainingï¿½ï¿½ means training 
furnished under subchapter V of this chapter. 
(8) The term ï¿½ï¿½total disability permanent in natureï¿½ï¿½ means 
any disability rated total for the purposes of disability compensation 
which is based upon an impairment reasonably certain to continue 
throughout the life of the disabled person. 
(9) The term ï¿½ï¿½training establishmentï¿½ï¿½ means any establishment 
providing apprentice or other training on the job, including those 
under the supervision of a college or university or any State department 
of education, or any State apprenticeship agency, or any State board of 
vocational education, or any joint apprenticeship committee, or the 
Bureau of Apprenticeship and Training established pursuant to the Act 
of August 16, 1937, popularly known as the ï¿½ï¿½National Apprenticeship 
Actï¿½ï¿½ (29 U.S.C. 50 et seq.), or any agency of the Federal Government 
authorized to supervise such training. (10) The term ï¿½ï¿½institution of 
higher learningï¿½ï¿½ means a college, university, or similar institution, 
including a technical or business school, offering postsecondary level 
academic instruction that leads to an associate or higher degree if 
the school is empowered by the appropriate State education authority 
under State law to grant an associate or higher degree. When 
there is no State law to authorize the granting of a degree, the 
school may be recognized as an institution of higher learning 
if it is accredited for degree programs by a recognized accrediting 
agency. Such term shall also include a hospital offering 
educational programs at the postsecondary level without regard to 
whether the hospital grants a postsecondary degree. 
Such term shall also include an educational institution which 
is not located in a State, which offers a course leading to a 
standard college degree, or the equivalent, and which is recognized 
by the secretary of education (or comparable official) of 
the country or other jurisdiction in which the institution is located. 
(11) The term ï¿½ï¿½standard college degreeï¿½ï¿½ means an associate or higher 
degree awarded by (A) an institution of higher learning that is 
accredited as a collegiate institution by a recognized regional or 
national accrediting agency; or (B) an institution of higher learning 
that is a ï¿½ï¿½candidateï¿½ï¿½ for accreditation 
as that term is used by the regional or national accrediting 
agencies; or (C) an institution of higher learning upon completion of 
a course which is accredited by an agency recognized to 
accredit specialized degree-level programs. For the purpose of 
this section, the accrediting agency must be one recognized by 
the Secretary of Education under the provisions of section 3675 
of this title. 
(12) The term ï¿½ï¿½qualifying serviceï¿½ï¿½ means service in the active 
military, naval, or air service after the beginning of the 
Spanish-American War that did not terminate under dishonorable 
conditions. 

515 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3511 

(b) If an eligible person has attained the personï¿½s majority and 
is under no known legal disability, all references in this chapter to 
ï¿½ï¿½parent or guardianï¿½ï¿½ shall refer to the eligible person. 
(c) Any provision of this chapter which requires any action to 
be taken by or with respect to the parent or guardian of an eligible 
person who has not attained such personï¿½s majority, or who, having 
attained such personï¿½s majority, is under a legal disability, shall 
not apply when the Secretary determines that its application would 
not be in the best interest of the eligible person, would result in 
undue delay, or would not be administratively feasible. In such a 
case the Secretary, where necessary to protect the interest of the 
eligible person, may designate some other person (who may be the 
eligible person) as the person by or with respect to whom the action 
so required should be taken. 
(d) No eligible person may be afforded educational assistance 
under this chapter unless such person was discharged or released 
after each period such person was on duty with the Armed Forces 
under conditions other than dishonorable, or while such person is 
on duty with the Armed Forces. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1193, Sec. 1701; Pub. L. 
86-236, Sec. 1, Sept. 8, 1959, 73 Stat. 471; Pub. L. 86-785, 
Sec. 1-3, Sept. 14, 1960, 74 Stat. 1023;Pub. L. 88-361, Sec. 1, 
July 7, 1964, 78 Stat. 297; Pub. L. 89-222, Sec. 3, Sept. 30, 1965, 
79 Stat. 896; Pub. L. 89-349, Sec. 1, Nov. 8, 1965, 79 Stat. 1313; 
Pub. L. 89- 358, Sec. 4(j), Mar. 3, 1966, 80 Stat. 24; Pub. L. 
90-631, Sec. 2(b), (c), Oct. 23, 1968, 82 Stat. 1332; Pub. L. 
91-24, Sec. 9(a), June 11, 1969, 83 Stat. 34; Pub. L. 91-584, Sec. 
1, Dec. 24, 1970, 84 Stat. 1575; Pub. L. 92-540, title III, Sec. 309, 
Oct. 24, 1972, 86 Stat. 1083; Pub. L. 93-295, title III, Sec. 302, 
May 31, 1974, 88 Stat. 184; Pub.

L. 94-502, title III, Sec. 302, 310(2)-(5), Oct. 15, 1976, 90 Stat. 
2389, 2391; Pub. L. 96-466, title III, Sec. 327(a), title VIII, Sec. 
801(c), Oct. 17, 1980, 94 Stat. 2197, 2216; Pub. L. 98-160, title VII, 
Sec. 702(12), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101-237, title IV, 
Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 102-40, 
title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered Sec. 
3501 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105
Stat. 406; Pub. L. 104-106, div. A, title XV, Sec. 1501(e)(2)(C), Feb. 
10, 1996, 110 Stat. 501; Pub. L. 106-419, title I, Secs. 114(a), 
122(a), Nov. 1, 2000, 114 Stat. 1833; Pub. L. 107-103, title I, Secs. 
108(a), 110(a), Dec. 27, 2001, 115 Stat. 985, 986; Pub. L. 108-454, 
title I, Sec. 106(a), Dec. 10, 2004, 118 Stat. 3602; Pub. L. 109-444, 
Sec. 3(a), (b)(1), Dec. 21, 2006, 120 Stat. 3305; Pub. L. 109-461, 
title III, Sec. 301(a), (b)(1), title X, Sec. 1006(b), Dec. 22, 2006, 
120 Stat. 3425, 3468.) 
SUBCHAPTER II-ELIGIBILITY AND ENTITLEMENT 

ï¿½ 3510. Eligibility and entitlement generally 

Each eligible person shall, subject to the provisions of this 
chapter, be entitled to receive educational assistance. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1194, Sec. 1710; renumbered 
Sec. 3510, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 3511. Duration of educational assistance 

(a)(1) Each eligible person, whether made eligible by one or 
more of the provisions of section 3501(a)(1) of this title, shall be 
entitled to educational assistance under this chapter for an aggregate 
period not in excess of 45 months (or to the equivalent thereof in 
part-time training). 

(2)(A) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of an educational assistance 
allowance described in subparagraph (B) of this paragraph shall 
not- 


Sec. 3511 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 516 

(i) be charged against the entitlement of any individual 
under this chapter; or 
(ii) be counted toward the aggregate period for which section 3695 of 
this title limits an individualï¿½s receipt of assistance. 
(B) The payment of the educational assistance allowance referred to 
in subparagraph (A) of this paragraph is the payment of 
such an allowance to an individual for pursuit of a course or 
courses under this chapter if the Secretary finds that the individual- 
(i) had to discontinue such course pursuit as a result of 
being ordered to serve on active duty under section 688, 
12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10 or of 
being involuntarily ordered to full-time National Guard duty 
under section 502(f) of title 32; and 
(ii) failed to receive credit or training time toward completion of the 
individualï¿½s approved educational, professional, or 
vocational objective as a result of having to discontinue, as described 
in clause (i) of this subparagraph, his or her course 
pursuit. 
(C) The period for which, by reason of this subsection, an educational 
assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 
of this title shall not exceed the portion of the period of enrollment 
in the course or courses for which the individual failed to receive 
credit or with respect to which the individual lost training time, as 
determined under subparagraph (B)(ii) of this paragraph. 
(b) If any eligible person pursuing a program of education, or 
of special restorative training, under this chapter ceases to be an 
ï¿½ï¿½eligible personï¿½ï¿½ because- 
(1) the parent or spouse from whom eligibility is derived 
is found no longer to have a ï¿½ï¿½total disability permanent in natureï¿½ï¿½,
as defined in section 3501(a)(8) of this title, 
(2) the parent or spouse from whom eligibility is derived 
based upon section 3501(a)(1)(C) of this title is no longer listed 
in one of the categories specified therein, 
(3) the spouse, as an eligible person under subparagraph 
(D) or (E) of section 3501(a)(1) of this title, is divorced, without 
fault on such personï¿½s part, from the person upon whose disability such 
personï¿½s eligibility is based, or (4) the parent or spouse from whom 
such eligibility is derived based upon subparagraph (E) of section 
3501(a)(1) of this title no longer meets a requirement under clause 
(i), (ii), or (iii) of that subparagraph, 
then such eligible person (if such person has sufficient remaining 
entitlement) may, nevertheless, be afforded educational assistance 
under this chapter until the end of the quarter or semester for 
which enrolled if the educational institution in which such person 
is enrolled is operated on a quarter or semester system, or if the 
educational institution is not so operated until the end of the 
course, or until 12 weeks have expired, whichever first occurs. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1194, Sec. 1711; Pub. L. 
88-361, Sec. 2, July 7, 1964, 78 Stat. 297; Pub. L. 89-358, Sec. 4(k), 
Mar. 3, 1966, 80 Stat. 24; Pub. L. 90-631, Sec. 1(c), 2(d), Oct. 23, 
1968, 82 Stat. 1331, 1332; Pub. L. 91-24, Sec. 9(b), 


517 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3512 

June 11, 1969, 83 Stat. 34; Pub. L. 91-584, Sec. 2, Dec. 24, 1970, 84 
Stat. 1575; Pub. L. 94-502, title III, Sec. 303, 310(6), Oct. 15, 1976, 
90 Stat. 2390, 2391; renumbered Sec. 3511 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-127, Sec. 
2(c), Oct. 10, 1991, 105 Stat. 620; Pub. L. 107-103, title I, Secs. 
103(a), 108(b)(1), (c)(1), Dec. 27, 2001, 115 Stat. 979, 985; Pub. L. 
109- 233, title V, Sec. 503(7), June 15, 2006, 120 Stat. 416; Pub. L. 
109-444, Sec. 3(b)(2), Dec. 21, 2006, 120 Stat. 3306; Pub. L. 109-461, 
title III, Secs. 301(b)(2), 302(a), title 
X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3425, 3428, 3468.) 

ï¿½ 3512. Periods of eligibility 

(a) The educational assistance to which an eligible person 
whose eligibility is based on the death or disability of a parent or 
on a parent being listed in one of the categories referred to in section 
3501(a)(1)(C) of this title is entitled under section 3511 of this 
title or subchapter V of this chapter may be afforded the person 
during the period beginning on the personï¿½s eighteenth birthday, or 
on the successful completion of the personï¿½s secondary schooling, 
whichever first occurs, and ending on the personï¿½s twenty-sixth 
birthday, except that- 
(1) if the person is above the age of compulsory school attendance under 
applicable State law, and the Secretary determines that the personï¿½s 
best interests will be served thereby, 
such period may begin before the personï¿½s eighteenth birthday; 
(2) if the person has a mental or physical handicap, and 
the Secretary determines that the personï¿½s best interests will 
be served by pursuing a program of special restorative training 
or a specialized course of vocational training approved under 
section 3536 of this title, such period may begin before the personï¿½s 
eighteenth birthday, but not before the personï¿½s fourteenth birthday; 
(3) if the Secretary first finds that the parent from whom 
eligibility is derived has a service-connected total disability 
permanent in nature, or if the death of the parent from whom 
eligibility is derived occurs, after the eligible personï¿½s eighteenth 
birthday but before the personï¿½s twenty-sixth birthday, 
then (unless paragraph (4) of (5) applies) such period shall end 
8 years after the date that is elected by that person to be the 
beginning date of entitlement under section 3511 of this title 
or subchapter V of this chapter if- 
(A) the Secretary approves that beginning date; 
(B) the eligible person elects that beginning date by 
not later than the end of the 60-day period beginning on 
the date on which the Secretary provides written notice to 
that person of that personï¿½s opportunity to make such election, such 
notice including a statement of the deadline for 
the election imposed under this subparagraph; and 
(C) that beginning date- 
(i) in the case of a person whose eligibility is 
based on a parent who has a service-connected total 
disability permanent in nature, is the date determined 
pursuant to subsection (d), subsection (d), or any date 
between the two dates described in subsection (d); and 
(ii) in the case of a person whose eligibility is 
based on the death of a parent, is between- 
(I) the date of the parentï¿½s death; and 

Sec. 3512 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 518 

(II) the date of the Secretaryï¿½s decision that 
the death was service-connected; 
(4) if the person otherwise eligible under paragraph (3) 
fails to elect a beginning date of entitlement in accordance 
with that paragraph, the beginning date of the personï¿½s entitlement 
shall be the date of the Secretaryï¿½s decision that the parent has a 
service-connected total disability permanent in nature, or that the 
parentï¿½s death was service-connected, whichever is applicable; 
(5) if the person serves on duty with the Armed Forces as 
an eligible person after the personï¿½s eighteenth birthday but 
before the personï¿½s twenty-sixth birthday, then such period 
shall end 8 years after the personï¿½s first discharge or release 
from such duty with the Armed Forces (excluding from such 8 
years all periods during which the eligible person served on active 
duty before August 1, 1962, pursuant to (A) a call or order 
thereto issued to the person as a Reserve after July 30, 1961, 
or (B) an extension of enlistment, appointment, or period of 
duty with the Armed Forces pursuant to section 2 of Public 
Law 87-117); however, in no event shall such period be extended 
beyond the personï¿½s thirty-first birthday by reason of 
this paragraph; 
(6) if the person becomes eligible by reason of a parent 
being listed in one of the categories referred to in section 
3501(a)(1)(C) of this title after the personï¿½s eighteenth birthday 
but before the personï¿½s twenty-sixth birthday, then (unless 
paragraph (5) applies) such period shall end eight years after 
the date on which the person becomes eligible by reason of 
such provisions, but in no event shall such period be extended 
beyond the personï¿½s thirty-first birthday by reason of this 
clause; 
(7)(A) if such person is enrolled in an educational institution 
regularly operated on the quarter or semester system and 
such period ends during a quarter or semester, such period 
shall be extended to the end of the quarter or semester; or 

(B) if such person is enrolled in an educational institution 
operated on other than a quarter or semester system and such 
period ends after a major portion of the course is completed, 
such period shall be extended to the end of the course, or until 
12 weeks have expired, whichever first occurs; and 
(8) if the person is pursuing a preparatory course described 
in section 3002(3)(B) of this title, such period may begin on the 
date that is the first day of such course pursuit, notwithstanding 
that such date may be before the personï¿½s eighteenth 
birthday, except that in no case may such person be afforded 
educational assistance under this chapter for pursuit of secondary 
schooling unless such course pursuit would otherwise 
be authorized under this subsection. 
(b)(1)(A) Except as provided in subparagraph (B), (C), or (D), 
a person made eligible by subparagraph (B) or (D) of section 
3501(a)(1) of this title or a person made eligible by the disability 
of a spouse under section 3501(a)(1)(E) of this title may be afforded 
educational assistance under this chapter during the 10-year period 
beginning on the date (as determined by the Secretary) the person 


519 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3512 

becomes an eligible person within the meaning of section 
3501(a)(1)(B), 3501(a)(1)(D)(i), 3501(a)(1)(D)(ii), or 3501(a)(1)(E) of 
this title. In the case of a surviving spouse made eligible by clause 

(ii) of section 3501(a)(1)(D) of this title, the 10-year period may not 
be reduced by any earlier period during which the person was eligible 
for educational assistance under this chapter as a spouse made 
eligible by clause (i) of that section. 
(B) Notwithstanding subparagraph (A), an eligible person referred to in 
that subparagraph may, subject to the Secretaryï¿½s approval, elect a 
later beginning date for the 10-year period than 
would otherwise be applicable to the person under that subparagraph. 
The beginning date so elected may be any date between the 
beginning date determined for the person under subparagraph (A) 
and whichever of the following dates applies: 
(i) The date on which the Secretary notifies the veteran 
from whom eligibility is derived that the veteran has a service-
connected total disability permanent in nature. 
(ii) The date on which the Secretary determines that the 
veteran from whom eligibility is derived died of a service-connected 
disability. 
(iii) The date on which the Secretary notifies the member 
of the Armed Forces from whom eligibility is derived that the 
member has a total disability permanent in nature incurred or 
aggravated in the line of duty in the active military, naval, or 
air service. 
(C) Notwithstanding subparagraph (A), an eligible person referred to in 
that subparagraph who is made eligible under section 
3501(a)(1)(B) of this title by reason of the death of a person on active 
duty may be afforded educational assistance under this chapter during the 
20-year period beginning on the date (as determined 
by the Secretary) such person becomes an eligible person within 
the meaning of such section. 
(D) Notwithstanding subparagraph (A), an eligible person referred to in 
that subparagraph who is made eligible under section 
3501(a)(1)(D)(i) of this title by reason of a service-connected 
disability that was determined to be a total disability permanent in 
nature not later than three years after discharge from service may 
be afforded educational assistance under this chapter during the 
20-year period beginning on the date the disability was so determined to 
be a total disability permanent in nature, but only if the 
eligible person remains the spouse of the disabled person throughout the 
period. 
(2) Notwithstanding the provisions of paragraph (1) of this subsection, 
in the case of any eligible person (as defined in section 
3501(a)(1)(B), (C), (D), or (E) of this title) whose eligibility is 
based 
on the death or disability of a spouse or on a spouse being listed 
in one of the categories referred to in section 3501(a)(1)(C) of this 
title who was prevented from initiating or completing such personï¿½s 
chosen program of education within such period because of a physical or 
mental disability which was not the result of such personï¿½s 
own willful misconduct, such person shall, upon application made 
within one year after (A) the last date of the delimiting period 
otherwise applicable under this section, (B) the termination of the 
period of mental or physical disability, or (C) October 1, 1980, which

Sec. 3512 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 520 

ever is the latest, be granted an extension of the applicable 
delimiting period for such length of time as the Secretary determines, 
from the evidence, that such person was so prevented from initiating or 
completing such program of education. When an extension 
of the applicable delimiting period is granted under the exception 
in the preceding sentence, the delimiting period will again begin 
running on the first day following such eligible personï¿½s recovery 
from such disability on which it is reasonably feasible, as determined 
in accordance with regulations which the Secretary shall 
prescribe, for such eligible person to initiate or resume pursuit of 
a program of education with educational assistance under this 
chapter. 

(c) Notwithstanding the provisions of subsection (a) of this section, 
an eligible person may be afforded educational assistance beyond the 
age limitation applicable to such person under such subsection if (1) 
such person suspends pursuit of such personï¿½s program of education 
after having enrolled in such program within the 
time period applicable to such person under such subsection, (2) 
such person is unable to complete such program after the period of 
suspension and before attaining the age limitation applicable to 
such person under such subsection, and (3) the Secretary finds that 
the suspension was due to conditions beyond the control of such 
person; but in no event shall educational assistance be afforded 
such person by reason of this subsection beyond the age limitation 
applicable to such person under subsection (a) of this section plus 
a period of time equal to the period such person was required to 
suspend the pursuit of such personï¿½s program, or beyond such personï¿½s 
thirty-first birthday, whichever is earlier. 
(d) The term ï¿½ï¿½first findsï¿½ï¿½ as used in this section means the effective 
date of the rating or date of notification to the person from 
whom eligibility is derived establishing a service-connected total 
disability permanent in nature whichever is more advantageous to 
the eligible person. 
(e) No person made eligible by section 3501(a)(1)(C) of this title 
based on a spouse being listed in one of the categories referred to 
in section 3501(a)(1)(C) of this title may be afforded educational 
assistance under this chapter beyond 10 years after the date on 
which the spouse was so listed. 
ï¿½(f) Repealed. Pub. L. 108-183, title III, Sec. 306(f)(2), Dec. 16, 
2003, 117 Stat. 2661.ï¿½ 
ï¿½(g) Repealed. Pub. L. 107-103, title I, Sec. 108(b)(2), Dec. 27, 
2001, 115 Stat. 985.ï¿½ 

(h) Notwithstanding any other provision of this section, if an 
eligible person, during the delimiting period otherwise applicable to 
such person under this section, serves on active duty pursuant to 
an order to active duty issued under section 688, 12301(a), 
12301(d), 12301(g), 12302, or 12304 of title 10, or is involuntarily 
ordered to full-time National Guard duty under section 502(f) of 
title 32, such person shall be granted an extension of such delimiting 
period for the length of time equal to the period of such active 
duty plus four months. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1194, Sec. 1712; Pub. L. 
87-815, Sec. 2(a), Oct. 15, 1962, 76 Stat. 926; Pub. L. 87-819, Sec. 2, 
Oct. 15, 1962, 76 Stat. 935; Pub. L. 88-361, Sec. 3, July 7, 1964, 78 
Stat. 297; Pub. L. 90-77, title III, Sec. 307(a), 

521 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3514 

Aug. 31, 1967, 81 Stat. 189; Pub. L. 90-631, Sec. 2(e), Oct. 23, 1968, 
82 Stat. 1333; Pub. L. 91-219, title II, Sec. 208, Mar. 26, 1970, 84 
Stat. 83; Pub. L. 91-584, Sec. 3, Dec. 24, 1970, 84 Stat. 1575; 
Pub. L. 92-540, title IV, Sec. 402(1), Oct. 24, 1972, 86 Stat. 1090; 
Pub. L. 93-337, Sec. 2, July 10, 1974, 88 Stat. 292; Pub. L. 94-502, 
title III, Sec. 304, 310(7)-(9), Oct. 15, 1976, 90 Stat. 2390, 2391; 
Pub. L. 95-202, title II, Sec. 203(a)(2), (b)(2), Nov. 23, 1977, 91 
Stat. 1439, 1440; Pub. L. 96-466, title III, Sec. 321, 322, Oct. 17, 
1980, 94 Stat. 2195; Pub. L. 97-66, title VI, Sec. 605(a), Oct. 17, 
1981, 95 Stat. 1036; Pub. L. 97-295, Sec. 4(44), Oct. 12, 1982, 96 
Stat. 1308; Pub. L. 98-160, title VII, Sec. 702(13), Nov. 21, 1983, 
97 Stat. 1009; Pub. 

L. 99-576, title III, Sec. 313, Oct. 28, 1986, 100 Stat. 3273; Pub. 
L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered Sec. 3512 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 106- 419, title I, Secs. 
112, 114(b), Nov. 1, 2000, 114 Stat. 1831, 1833; Pub. L. 107-14, 
Secs. 7(f)(1), 8(a)(6), June 5, 2001, 115 Stat. 33, 34; Pub. L. 107-
103, title I, Secs. 103(b), 108(b)(2), (c)(2), (3), Dec. 27, 2001, 
115 Stat. 979, 985; Pub. L. 107-330, title III, Sec. 308(e)(1), 
Dec. 6, 2002, 116 Stat. 2828; Pub. L. 108-183, title III, Secs. 303(a), 
306(f)(2), Dec. 16, 2003, 117 Stat. 2659, 2661; Pub. L. 108-454, 
title I, Sec. 105, Dec. 10, 2004, 118 Stat. 3602; Pub. L. 109-444, Sec. 
3(b)(3), Dec. 21, 2006, 120 Stat. 3306; Pub. L. 109-461, title III, 
Sec. 301(b)(3), title X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3426, 
3468; Pub. L. 110-389, title III, Sec. 321, Oct. 10, 2008, 122 
Stat. 4168.) 
ï¿½ 3513. Application 

The parent or guardian of a person or the eligible person if 
such person has attained legal majority for whom educational assistance 
is sought under this chapter shall submit an application to the Secretary 
which shall be in such form and contain such information as the Secretary 
shall prescribe. If the Secretary finds that the person on whose behalf 
the application is submitted is an eligible person, the Secretary shall 
approve the application provisionally. The Secretary shall notify the 
parent or guardian or eligible person (if the person has attained legal
majority) of the provisional approval or of the disapproval of the 
application. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1195, Sec. 1713; Pub. L. 
94-502, title III, 
Sec. 305, Oct. 15, 1976, 90 Stat. 2390; Pub. L. 101-237, title IV, Sec.
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3513, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3514. Processing of applications 

(a) Further processing of an application for educational assistance and 
the award of such assistance shall be pursuant to the requirements of 
subchapters III and IV of this chapter unless the parent or guardian 
requests special restorative training for the eligible person, in which 
case the application will be processed under 
subchapter V of this chapter. 
(b) If the request for special restorative training is approved, 
educational assistance will be afforded pursuant to the terms of 
subchapter V of this chapter. If the request for special restorative 
training is disapproved, or if approved the restorative training is 
completed or discontinued, any educational assistance subsequently 
afforded will be in accordance with subchapters III and IV of this 
chapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1195, Sec. 1714; renumbered 
Sec. 3514, Pub. 

L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

Sec. 3520 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 522 

SUBCHAPTER III-PROGRAM OF EDUCATION 

ï¿½ 3520. Educational and vocational counseling 

The Secretary may, upon request, arrange for educational or 
vocational counseling for persons eligible for benefits under this 
chapter to assist such persons in selecting their educational, 
vocational, or professional objectives and in developing their programs 
of education. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1195, Sec. 1720; Pub. L. 
90-631, Sec. 2(g), Oct. 23, 1968, 82 Stat. 1333; Pub. L. 91-584, Sec. 
4, Dec. 24, 1970, 84 Stat. 1576; Pub. L. 92-540, title III, Sec. 310, 
Oct. 24, 1972, 86 Stat. 1083; Pub. L. 94-502, title III, Sec. 310(10),
Oct. 15, 1976, 90 Stat. 2391; Pub. L. 96-466, title III, Sec. 323(a), 
Oct. 17, 1980, 94 Stat. 2196; Pub. L. 97-295, Sec. 4(45), Oct. 12, 
1982, 96 Stat. 1308; Pub. L. 99-576, title III, Sec. 314(a), Oct. 28, 
1986, 100 Stat. 3273; Pub. L. 101- 237, title IV, Sec. 423(b)(1)(A), 
Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3520, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3521. Approval of application 

The Secretary shall approve an application if the Secretary 
finds that- 

(1) the proposed program of education constitutes a ï¿½ï¿½program of 
educationï¿½ï¿½ as that term is defined in this chapter; (2) the eligible 
person is not already qualified, by reason of previous education or 
training, for the educational, professional, or vocational objective 
for which the program of education is offered; (3) the eligible 
personï¿½s proposed educational institution or training establishment 
is in compliance with all the requirements of this chapter and chapter 
36 of this title; and (4) it does not appear that the enrollment in or 
pursuit of such personï¿½s program of education would violate any 
provisions of this chapter or chapter 36 of this title. (Pub. L. 
85-857, Sept. 2, 1958, 72 Stat. 1196, Sec. 1721; Pub. L. 94-502, 
title III, Sec. 310(11), Oct. 15, 1976, 90 Stat. 2391; Pub. L. 96-466, 
title III, Sec. 324, Oct. 17, 1980, 94 Stat. 2196; Pub. L. 99-576, 
title III, Sec. 314(b)(1), (2), Oct. 28, 1986, 100 Stat. 3273; Pub. L. 
101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3521, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406.) 

ï¿½ï¿½ 3522. Vacantï¿½ 

ï¿½ 3523. Disapproval of enrollment in certain courses 

(a) The Secretary shall not approve the enrollment of an eligible 
person in- 
(1) any bartending course or personality development 
course; 
(2) any sales or sales management course which does not 
provide specialized training within a specific vocational field; 
(3) any type of course which the Secretary finds to be avocational or 
recreational in character (or the advertising for which the Secretary 
finds contains significant avocational or recreational themes) unless 
the eligible person submits justification showing that the course will 
be a bona fide use in the pursuit of the personï¿½s present or 
contemplated business or occupation; or 

523 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3524 

(4) any independent study program except an accredited 
independent study program (including open circuit television) 
leading to a standard college degree. 
(b) The Secretary shall not approve the enrollment of an eligible 
person in any course of flight training other than one given by 
an educational institution of higher learning for credit toward a 
standard college degree the eligible person is seeking. 
(c) The Secretary shall not approve the enrollment of an eligible 
person in any course to be pursued by radio. 
(d) The Secretary shall not approve the enrollment of an eligible person 
in any course which is to be pursued as a part of such 
personï¿½s regular secondary school education (except as provided in 
section 3533 of this title), but this subsection shall not prevent the 
enrollment of an eligible person in a course not leading to a standard 
college degree if the Secretary finds that such person has 
ended such personï¿½s secondary school education (by completion or 
otherwise) and that such course is a specialized vocational course 
pursued for the purpose of qualifying in a bona fide vocational 
objective. 
(e) An eligible person may not enroll in any course at an educational 
institution which is not located in a State or in the Republic of the 
Philippines, unless such course is pursued at an approved 
institution of higher learning and the course is approved by the 
Secretary. The Secretary, in the Secretaryï¿½s discretion, may deny or 
discontinue educational assistance under this chapter in the case 
of any eligible person in such an institution if the Secretary 
determines that such enrollment is not in the best interest of the 
eligible 
person or the Federal Government. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1196, Sec. 1723; Pub. L. 
86-785, Sec. 4, Sept. 14, 1960, 74 Stat. 1024; Pub. L. 87-546, July 25, 
1962, 76 Stat. 216; Pub. L. 91-219, title II, Sec. 209, Mar. 26, 1970, 
84 Stat. 83; Pub. L. 92-540, title III, Sec. 311, Oct. 24, 1972, 86 
Stat. 1083; Pub. L. 93-508, title II, Sec. 207, Dec. 3, 1974,  Stat. 
1583; Pub. L. 94-502, title III, Sec. 306, 310(12)-(14), Oct. 15, 1976, 
90 Stat. 2390, 2392; Pub. L. 96-466, title III, Sec. 325, 326, 327(b), 
Oct. 17, 1980, 94 Stat. 2196, 2197; Pub. L. 97-306, title II, Sec. 
202(b), Oct. 14, 1982, 96 Stat. 1433; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3523 
and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 102-568, title III, Sec. 313(a)(7), Oct. 29, 1992, 106 
Stat. 4333; Pub. L. 104-275, title I, Sec. 104(b), Oct. 9, 1996, 110 
Stat. 3327.) 

ï¿½ 3524. Discontinuance for unsatisfactory progress 

The Secretary shall discontinue the educational assistance allowance 
on behalf of an eligible person if, at any time, the Secretary finds 
that according to the regularly prescribed standards 
and practices of the educational institution such person is attending, 
the personï¿½s attendance, conduct, or progress is unsatisfactory. 
The Secretary may renew the payment of the educational assistance 
allowance only if the Secretary finds that- 

(1) the eligible person will be resuming enrollment at the 
same educational institution in the same program of education 
and the educational institution has both approved such eligible 
personï¿½s reenrollment and certified it to the Department of Veterans 
Affairs; or 
(2) in the case of a proposed change of either educational 
institution or program of education by the eligible person- 

Sec. 3525 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 524 

(A) the cause of the unsatisfactory attendance, conduct, or progress 
has been removed; 
(B) the program proposed to be pursued is suitable to 
the eligible personï¿½s aptitudes, interests, and abilities; and 
(C) if a proposed change of program is involved, the 
change meets the requirements for approval under section 
3691 of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1197, Sec. 1724; Pub. L. 
94-502, title III, Sec. 307, 310(15), Oct. 15, 1976, 90 Stat. 2390, 
2392; Pub. L. 95-202, title III, Sec. 305(b)(1), Nov. 23, 1977, 91 
Stat. 1443; Pub. L. 96-466, title III, Sec. 328, Oct. 17, 1980, 94 
Stat. 2197; Pub. L. 101-237, title IV, Sec. 411(b), 412(b), 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2084, 2085, 2092; renumbered 
Sec. 3524 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ï¿½ï¿½ 3525, 3526. Vacantï¿½ 

SUBCHAPTER IV-PAYMENTS TO ELIGIBLE PERSONS 

ï¿½ 3531. Educational assistance allowance 

(a) The Secretary shall, in accordance with the provisions of 
chapter 36 of this title, pay to the parent or guardian of each 
eligible person who is pursuing a program of education under this 
chapter, and who applies therefor on behalf of such eligible person, an 
educational assistance allowance to meet, in part, the expenses of 
the eligible personï¿½s subsistence, tuition, fees, supplies, books, 
equipment, and other educational costs. 
(b) The educational assistance allowance of an eligible person 
pursuing a program of education at an educational institution shall 
be paid as provided in chapter 36 of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1197, Sec. 1731; Pub. L. 
89-358, Sec. 4(l), Mar. 3, 1966, 80 Stat. 24; Pub. L. 92-540, title 
III, Sec. 312, Oct. 24, 1972, 86 Stat. 1083; Pub. L. 94-502, title III, 
Sec. 309(c), 310(16), Oct. 15, 1976, 90 Stat. 2391, 2392; Pub. L. 
96-466, title III, Sec. 329, Oct. 17, 1980, 94 Stat. 2197; Pub. L. 
101- 237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3531, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 3532. Computation of educational assistance allowance 

(a)(1) The educational assistance allowance on behalf of an eligible 
person who is pursuing a program of education consisting of 
institutional courses shall be paid at the monthly rate of $788 for 
full-time, $592 for three-quarter-time, or $394 for half-time pursuit. 

(2) The educational assistance allowance on behalf of an eligible 
person pursuing a program of education on less than a halftime basis 
shall be paid at the rate of the lesser of- 
(A) the established charges for tuition and fees that the 
educational institution involved requires similarly 
circumstanced nonveterans enrolled in the same program to 
pay; or 
(B) $788 per month for a full-time course. 
(b) The educational assistance allowance to be paid on behalf 
of an eligible person who is pursuing a full-time program of education 
which consists of institutional courses and alternate phases 
of training in a business or industrial establishment with the training 
in the business or industrial establishment being strictly supplemental 
to the institutional portion, shall be computed at the 
rate of $788 per month. 

525 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3532 

(c)(1) An eligible person who is enrolled in an educational institution 
for a ï¿½ï¿½farm cooperativeï¿½ï¿½ program consisting of institutional 
agricultural courses prescheduled to fall within forty-four weeks of 
any period of twelve consecutive months and who pursues such 
program on- 

(A) a full-time basis (a minimum of ten clock hours per 
week or four hundred and forty clock hours in such year 
prescheduled to provide not less than eighty clock hours in any 
three-month period), 
(B) a three-quarter-time basis (a minimum of seven clock 
hours per week), or 
(C) a half-time basis (a minimum of five clock hours per 
week), 
shall be eligible to receive an educational assistance allowance at 
the appropriate rate provided in paragraph (2) of this subsection, 
if such eligible person is concurrently engaged in agricultural 
employment which is relevant to such institutional agricultural 
courses as determined under standards prescribed by the Secretary. In 
computing the foregoing clock hour requirements there 
shall be included the time involved in field trips and individual and 
group instruction sponsored and conducted by the educational institution 
through a duly authorized instructor of such institution in 
which the person is enrolled. 

(2) The monthly educational assistance allowance to be paid on 
behalf of an eligible person pursuing a farm cooperative program 
under this chapter shall be $636 for full-time, $477 for three-quarter-
time, or $319 for half-time pursuit. 
(d) If a program of education is pursued by an eligible person 
at an institution located in the Republic of the Philippines, the 
educational assistance allowance computed for such person under this 
section shall be paid at the rate of $0.50 for each dollar. 
(e) In the case of an eligible person who is pursuing a program 
of education under this chapter while incarcerated in a Federal, 
State, local, or other penal institution or correctional facility for 
conviction of a felony, the educational assistance allowance shall be 
paid in the same manner prescribed in section 3482(g) of this title 
for incarcerated veterans, except that the references therein to the 
monthly educational assistance allowance prescribed for a veteran 
with no dependents shall be deemed to refer to the applicable allowance 
payable to an eligible person under corresponding provisions of this 
chapter or chapter 36 of this title, as determined by 
the Secretary. 
(f)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a licensing or certification 
test described in section 3501(a)(5) of this title is the lesser of 
$2,000 or the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for such licensing or certification test is equal to 
the number (including any fraction) determined by dividing the 
total amount paid to such individual for such test by the full-time 
monthly institutional rate of the educational assistance allowance 
which, except for paragraph (1), such individual would otherwise be 
paid under this chapter. 

Sec. 3533 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 526 

(3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individualï¿½s 
available entitlement under this chapter. 
(g)(1) Subject to paragraph (3), the amount of educational assistance 
payable under this chapter for a national test for admission or national 
test providing an opportunity for course credit at 
institutions of higher learning described in section 3501(a)(5) of 
this title is the amount of the fee charged for the test. 

(2) The number of months of entitlement charged in the case 
of any individual for a test described in paragraph (1) is equal to 
the number (including any fraction) determined by dividing the 
total amount of educational assistance paid such individual for 
such test by the full-time monthly institutional rate of educational 
assistance, except for paragraph (1), such individual would otherwise be 
paid under this chapter. 
(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the 
amount of the individualï¿½s available entitlement under this chapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1198, Sec. 1732; Pub. L. 89-222, 
Sec. 1, Sept. 30, 1965, 79 Stat. 896; Pub. L. 91-219, title I, Sec. 
104(a), (b), title II, Sec.210, Mar. 25, 1970, 84 Stat. 77, 78, 83; 
Pub. L. 92-540, title I, Sec. 103(1)-(3), Oct. 24, 1972, 86 Stat. 1075, 
1076; Pub. L. 93-508, title I, Sec. 103(1)-(3), title II, Sec. 208, 
Dec. 3, 1974, 88 Stat. 1580, 1584; Pub. L. 93-602, title II, Sec. 204(a), 
Jan. 2, 1975, 88 Stat. 1958; Pub. L. 94-502, title III, Sec. 301(1), 
308, Oct. 15, 1976, 90 Stat. 2389, 2390; Pub. L. 95-202, title I, Sec. 
103(1), Nov. 23, 1977, 91 Stat. 1434; Pub. L. 96-466, title II, Sec. 
202(1), 212(1), title III, Sec. 330, title VI, Sec. 602(b),Oct. 17, 
1980, 94 Stat. 2188, 2190, 2198, 2209; Pub. L. 98-543, title II, Sec. 
203(1), Oct. 24, 1984, 98 Stat. 2742; Pub. L. 101-237, title IV, Sec. 
403(a)(1)-(7), 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2078, 2079, 
2092; Pub. L. 102-16, Sec. 10(a)(6), Mar. 22, 1991, 105 Stat. 56;
renumbered Sec. 3532 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, Sec. 316(b), 
Oct. 29, 1992, 106 Stat. 4334; Pub. L. 103-446, title V, Sec. 507(b), 
Nov. 2, 1994,108 Stat. 4664; Pub. L. 104-275, title I, Sec. 105(c), 
Oct. 9, 1996, 110 Stat. 3327; Pub. L. 105-178, title VIII, Sec. 
8210(a), as added Pub. L. 105-206, title IX, Sec. 9014(b), July 22, 
1998, 112 Stat. 866; Pub. L. 106-419, title I, Secs. 111(a), 
122(b)(4), Nov. 1, 2000, 114 Stat. 1830, 1834; Pub. L. 107-103, 
title I, Sec. 102(a), Dec. 27, 2001, 115 Stat. 978; Pub. L. 108-183, 
title III, Sec. 302(a), Dec. 16, 2003, 117 Stat. 2658; Pub. L. 
108-454, title I, Sec. 106(b)(3), Dec. 10, 2004, 118 Stat. 3603;
Pub. L. 109-461, title X, Sec. 1002(e), Dec. 22, 2006, 120 Stat. 
3465.) 

ï¿½ 3533. Special assistance for the educationally disadvantaged 

(a)(1) Any eligible person shall be entitled to the assistance 
provided an eligible veteran under section 3491(a) (if pursued in a 
State) of this title and be paid an educational assistance allowance 
therefor in the manner prescribed by section 3491(b) of this title, 
except that the corresponding rate provisions of this chapter shall 
apply, as determined by the Secretary, to such pursuit by an eligible 
person. 

(2) Educational assistance under this chapter for the first five 
months of full-time pursuit of a program (or the equivalent thereof 
in part-time educational assistance) consisting of such course or 
courses shall be provided without charge to entitlement. 
(b) Any eligible person shall, without charge to any entitlement 
such person may have under section 3511 of this title, be entitled 
to the benefits provided an eligible veteran under section 3492 of 
this title. 

527 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3536 

(Added Pub. L. 92-540, title III, Sec. 313, Oct. 24, 1972, 86 Stat. 
1084, Sec. 1733; amended Pub. L. 94-502, title III, Sec. 310(17), 
(18), Oct. 15, 1976, 90 Stat. 2392; Pub. L. 98-223, title II, Sec. 
203(b), Mar. 2, 1984, 98 Stat. 41; Pub. L. 100-689, title I, Sec. 
106(c), Nov. 18, 1988, 102 Stat. 4167; Pub. L. 101-237, title IV, 
Sec. 403(a)(8), Dec. 18, 1989, 103 Stat. 2079; Pub. L. 102-16, Sec. 
10(a)(6), Mar. 22, 1991, 105 Stat. 56; renumbered Sec. 3533 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3534. Apprenticeship or other on-job training; correspondence 
courses 

(a) Any eligible person shall be entitled to pursue, in a State, 
a program of apprenticeship or other on-job training and be paid 
a training assistance allowance as provided in section 3687 of this 
title. 
(b) Any eligible spouse or surviving spouse shall be entitled to 
pursue a program of education exclusively by correspondence and 
be paid an educational assistance allowance as provided in section 
3686 (other than subsection (a)(2)) of this title and the period of 
such spouseï¿½s entitlement shall be charged with one month for each 
$788 which is paid to the spouse as an educational assistance allowance 
for such course. 
(Added Pub. L. 92-540, title III, Sec. 313, Oct. 24, 1972, 86 Stat. 
1084, Sec. 1734; amended Pub. L. 94-502, title III, Sec. 310(19), 
Oct. 15, 1976, 90 Stat. 2392; Pub. 

L. 101-237, title IV, Sec. 403(a)(9), Dec. 18, 1989, 103 Stat. 2079; 
renumbered Sec. 3534 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-178, title VIII, Sec. 8210(b), 
as added Pub. L. 105-206, title IX, Sec. 9014(b), July 22, 1998, 11 
Stat. 966; Pub. L. 106-419, title I, Sec. 111(b), Nov. 1, 2000, 114 
Stat. 1830; Pub. L. 107-103, title I, Sec. 102(b), Dec. 27, 2001, 115 
Stat. 978; Pub. 
L. 108-183, title III, Sec. 302(b), Dec. 16, 2003, 117 Stat. 2659.) 
ï¿½ 3535. Approval of courses 

An eligible person shall receive the benefits of this chapter 
while enrolled in a course of education offered by an educational 
institution only if such course (1) is approved in accordance with 
the provisions of subchapter I of chapter 36 of this title, or (2) is 
approved for the enrollment of the particular individual under the 
provisions of section 3536 of this title. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1199, Sec. 1735; Pub. L. 
88-126, Sec. 2, Sept. 23, 1963, 77 Stat. 162; Pub. L. 89-358, Sec. 
4(n), Mar. 3, 1966, 80 Stat. 25; Pub. L. 92-540, title IV, Sec. 402(4), 
Oct. 24, 1972, 86 Stat. 1090; renumbered Sec. 3535 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3536. Specialized vocational training courses 

The Secretary may approve a specialized course of vocational 
training leading to a predetermined vocational objective for the 
enrollment of an eligible person under this subchapter if the Secretary 
finds that such course, either alone or when combined with 
other courses, constitutes a program of education which is suitable 
for that person and is required because of a mental or physical 
handicap. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1199, Sec. 1737; Pub. L. 88-126, 
Sec. 4, Sept. 23, 1963, 77 Stat. 162; renumbered Sec. 1736, Pub. L. 
92-540, title IV, Sec. 402(3), Oct. 24, 1972, 86 Stat. 1090; Pub. L. 
94-502, title III, Sec. 310(20), Oct. 15, 1976, 90 Stat. 2392; amended 
Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered Sec. 3536, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 


Sec. 3537 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 528 

ï¿½ 3537. Work-study allowance 

(a) Subject to subsection (b) of this section, the Secretary shall 
utilize, in connection with the activities described in section 
3485(a) of this title, the services of any eligible person who is 
pursuing, in a State, at least a three-quarter-time program of 
education (other than a course of special restorative training) and 
shall pay to such person an additional educational assistance allowance 
(hereinafter in this section referred to as ï¿½ï¿½work-study allowanceï¿½ï¿½) 
in return for such eligible personï¿½s agreement to perform such services.
The amount of the work-study allowance shall be determined 
in accordance with section 3485(a) of this title. 
(b) The Secretaryï¿½s utilization of, and payment of a work-study 
allowance for, the services of an eligible person pursuant to 
subsection (a) of this section shall be subject to the same requirements, 
terms, and conditions as are set out in section 3485 of this title 
with regard to individuals pursuing at least three-quarter-time programs 
of education referred to in subsection (b) of such section. 
(Added Pub. L. 101-237, title IV, Sec. 406(a)(1), Dec. 18, 1989, 103 
Stat. 2082, Sec. 1737; renumbered Sec. 3537 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 107-14, Sec. 
8(a)(16), June 5, 2001, 115 Stat. 35.) 

ï¿½ï¿½ 3538. Vacantï¿½ 

SUBCHAPTER V-SPECIAL RESTORATIVE TRAINING 

ï¿½ 3540. Purpose 

The purpose of special restorative training is to overcome, or 
lessen, the effects of a manifest physical or mental disability which 
would handicap an eligible person (other than a person made eligible 
under subparagraph (C) of such section by reason of a spouse being 
listed in one of the categories referred to in that subparagraph) in the 
pursuit of a program of education. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1200, Sec. 1740; Pub. L. 96-466, 
title III, Sec. 331, Oct. 17, 1980, 94 Stat. 2198; renumbered Sec. 3540 
and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 107-103, title I, Sec. 109(a), Dec. 27, 2001, 115 Stat. 986; 
Pub. L. 109-444, Sec. 3(b)(4), Dec. 21, 2006, 120 Stat. 3307; Pub. L. 
109-461, title III, Sec. 301(b)(4), title X, Sec. 1006(b), Dec. 
22, 2006, 120 Stat. 3427, 3468.) 

ï¿½ 3541. Entitlement to special restorative training 

(a) The Secretary at the request of an eligible person is authorized- 
(1) to determine whether such person is in need of special 
restorative training; and 
(2) where need is found to exist, to prescribe a course 
which is suitable to accomplish the purposes of this chapter. 
Such a course, at the discretion of the Secretary, may contain elements 
that would contribute toward an ultimate objective of a program of 
education. 

(b) The total period of educational assistance under this subchapter and 
other subchapters of this chapter may not exceed the 
amount of entitlement as established in section 3511 of this title, 
except that the Secretary may extend such period in the case of 
any person if the Secretary finds that additional assistance is nec

529 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3543 

essary to accomplish the purpose of special restorative training as 
stated in subsection (a) of this section. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1200, Sec. 1741; Pub. L. 88-361, 
Sec. 6, July 7, 1964, 78 Stat. 298; Pub. L. 94-502, title III, Sec. 
310(21), Oct. 15, 1976, 90 Stat. 2392; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3541 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 107-103, title I, Sec. 109(b)(1), Dec. 27, 2001, 115 Stat. 986.) 

ï¿½ 3542. Special training allowance 

(a) While the eligible person is enrolled in and pursuing a full-
time course of special restorative training, the eligible person shall 
be entitled to receive a special training allowance computed at the 
basic rate of $788 per month. If the charges for tuition and fees 
applicable to any such course are more than $247 per calendar 
month, the basic monthly allowance may be increased by the 
amount that such charges exceed $247 a month, upon election by 
the eligible person to have such personï¿½s period of entitlement reduced 
by one day for each such increased amount of allowance that 
is equal to one-thirtieth of the full-time basic monthly rate of special 
training allowance. 
(b) No payments of a special training allowance shall be made 
for the same period for which the payment of an educational assistance 
allowance is made or for any period during which the training 
is pursued on less than a full-time basis. 
(c) Full-time training for the purpose of this section shall be 
determined by the Secretary with respect to the capacities of the 
individual trainee. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1200, Sec. 1742; Pub. L. 89-222, 
Sec. 2, Sept. 30, 1965, 79 Stat. 896; Pub. L. 91-219, title I, Sec. 104(c), 
Mar. 26, 1970, 84 Stat. 78; Pub. L. 92-540, title I, Sec. 103(4), Oct. 24, 
1972, 86 Stat. 1076; Pub. L. 93-508, title I, Sec. 103(4), Dec. 3, 1974, 
88 Stat. 1580; Pub. L. 93-602, title II, Sec. 204(b), Jan. 2, 1975, 88 
Stat. 1958; Pub. L. 94-502, title III, Sec. 301(2), Oct. 15, 1976, 90 
Stat. 2389; Pub. L. 95-202, title I, Sec. 103(2), Nov. 23, 1977, 91 Stat. 
1435; Pub. L. 96-466, title II, Sec. 202(2), 212(2), Oct. 17, 1980, 94 
Stat. 2188, 2190; Pub. L. 98-543, title II, Sec. 203(2), Oct. 24, 1984, 
98 Stat. 2742; Pub. L. 101-237, title IV, Sec. 403(a)(10), 423(b)(1)(A),
Dec. 18, 1989, 103 Stat. 2080, 2092; renumbered Sec. 3542, Pub. L. 
102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-178, title 
VIII, Sec. 8210(c), as added Pub. L. 105-206, title IX, Sec. 9014(b), 
July 22, 1998, 112 Stat. 866; Pub. L. 106-419, title I, Sec. 111(c), 
Nov. 1, 2000, 114 Stat. 1830; Pub. L. 107-103, title I, Secs. 102(c), 
109(b)(2), Dec. 27, 2001, 115 Stat. 978, 986; Pub. L. 108-183, title III, 
Sec. 302(c), Dec. 16, 2003, 117 Stat. 2659.) 

ï¿½ 3543. Special administrative provisions 

(a) In carrying out the Secretaryï¿½s responsibilities under this 
chapter the Secretary may by agreement arrange with public or 
private educational institutions or others to provide training 
arrangements as may be suitable and necessary to accomplish the 
purposes of this subchapter. In any instance where the Secretary 
finds that a customary tuition charge is not applicable, the Secretary 
may agree on the fair and reasonable amounts which may 
be charged for the training provided to the eligible person. 
(b) The Secretary shall make such rules and regulations as the 
Secretary may deem necessary in order to promote good conduct on 
the part of the persons who are following courses of special restorative 
training and otherwise to carry out the purposes of this chapter. 

Sec. 3561 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 530 

(c) In a case in which the Secretary authorizes training under 
section 3541(a) of this title on behalf of an eligible person, the 
parent or guardian shall be entitled- 
(1) to receive on behalf of the eligible person the special 
training allowance provided for under section 3542(a) of this 
title; 
(2) to elect an increase in the basic monthly allowance provided for 
under such section; and 
(3) to agree with the Secretary on the fair and reasonable 
amounts which may be charged under subsection (a). 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1200, Sec. 1743; Pub. L. 
94-502, title III, Sec. 310(22), Oct. 15, 1976, 90 Stat. 2392; Pub. 
L. 101-237, title IV, Sec. 423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 
2092; renumbered Sec. 3543, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406; Pub. L. 107-103, title I, Sec. 109(b)(3), 
(4), Dec. 27, 2001, 115 Stat. 986.) 

SUBCHAPTER VI-MISCELLANEOUS PROVISIONS 

ï¿½ 3561. Authority and duties of Secretary 

(a) The Secretary may provide the educational and vocational 
counseling authorized under section 3520 of this title, and may provide
additional counseling if the Secretary deems it to be necessary 
to accomplish the purposes of this chapter. 
(b) Where any provision of this chapter authorizes or requires 
any function, power, or duty to be exercised by a State, or by any 
officer or agency thereof, such function, power, or duty shall, with 
respect to the Republic of the Philippines, be exercised by the 
Secretary. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1200, Sec. 1761; Pub. L. 
89-358, Sec. 3(a)(1), Mar. 3, 1966, 80 Stat. 19; Pub. L. 94-502, title 
III, Sec. 310(23), Oct. 15, 1976, 90 Stat. 2392; Pub. L. 96-466, title 
III, Sec. 323(b), Oct. 17, 1980, 94 Stat. 2196; Pub. L. 101-237, title 
IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3561 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406.) 
ï¿½ 3562. Nonduplication of benefits 

The commencement of a program of education or special restorative 
training under this chapter shall be a bar (1) to subsequent 
payments of compensation, dependency and indemnity compensation, or 
pension based on the death of a parent to an eligible person 
over the age of eighteen by reason of pursuing a course in an 
educational institution, or (2) to increased rates, or additional 
amounts, of compensation, dependency and indemnity compensation, or 
pension because of such a person whether eligibility is 
based upon the death or upon the total permanent disability of the 
parent. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1201, Sec. 1762; Pub. L. 
88-361, Sec. 4, July 
7, 1964, 78 Stat. 298; Pub. L. 89-358, Sec. 3(a)(2), Mar. 3, 1966, 80 
Stat. 20; renumbered Sec. 3562, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406.) 

ï¿½ 3563. Notification of eligibility 

The Secretary shall notify the parent or guardian of each eligible 
person whose eligibility is based on the death or disability of 
a parent or on a parent being listed in one of the categories referred 
to in section 3501(a)(1)(C) of this title of the educational assistance 
available to such person under this chapter. Such notifica


531 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. Sec. 3565 

tion shall be provided not later than the month in which such eligible 
person attains such personï¿½s thirteenth birthday or as soon 
thereafter as feasible. 

(Added Pub. L. 91-219, title II, Sec. 207(a), Mar. 26, 1970, 84 Stat. 
82, Sec. 1763; amended Pub. L. 94-502, title III, Sec. 310(24), Oct. 
15, 1976, 90 Stat. 2392; Pub. 

L. 97-295, Sec. 4(46), Oct. 12, 1982, 96 Stat. 1308; Pub. L. 101-237, 
title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3563 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 109-444, Sec. 3(b)(5), Dec. 21, 2006, 120 Stat. 3307; 
Pub. L. 109-461, title III, Sec. 301(b)(5), title 
X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 3427, 3468.) 
ï¿½ 3564. Annual adjustment of amounts of educational assistance 

(a) With respect to any fiscal year, the Secretary shall provide 
a percentage increase in the rates payable under sections 3532, 
3534(b), and 3542(a) of this title equal to the percentage by 
which- 
(1) the Consumer Price Index (all items, United States city 
average) for the 12-month period ending on the June 30 preceding the 
beginning of the fiscal year for which the increase 
is made, exceeds 
(2) such Consumer Price Index for the 12-month period 
preceding the 12-month period described in paragraph (1). 
(b) Any increase under subsection (a) in a rate with respect to 
a fiscal year after fiscal year 2004 and before fiscal year 2014 shall 
be rounded down to the next lower whole dollar amount. Any such 
increase with respect to a fiscal year after fiscal year 2013 shall be 
rounded to the nearest whole dollar amount. 
(Added Pub. L. 106-419, title I, Sec. 111(f)(1)(A), Nov. 1, 2000, 114 
Stat. 1831; amended Pub. L. 108-183, title III, Sec. 304(b), Dec. 16, 
2003, 117 Stat. 2660.) 

SUBCHAPTER VII-PHILIPPINE COMMONWEALTH ARMY 
AND PHILIPPINE SCOUTS 


ï¿½ 3565. Children of certain Philippine veterans 

(a) BASIC ELIGIBILITY.-The term ï¿½ï¿½eligible personï¿½ï¿½ as used in 
section 3501(a)(1) of this title includes the children of those 
Commonwealth Army veterans and ï¿½ï¿½Newï¿½ï¿½ Philippine Scouts who meet 
the requirements of service-connected disability or death, based on 
service as defined in section 3566 of this title. 
(b) ADMINISTRATIVE PROVISIONS.-The provisions of this chapter and 
chapter 36 shall apply to the educational assistance for 
children of Commonwealth Army veterans and ï¿½ï¿½Newï¿½ï¿½ Philippine 
Scouts, except that- 
(1) educational assistance allowances authorized by section 
3532 of this title and the special training allowance authorized 
by section 3542 of this title shall be paid at the rate of $0.50 
for each dollar, and 
(2) any reference to a State approving agency shall be 
deemed to refer to the Secretary. 
(c) DELIMITING DATES.-In the case of any individual who is an 
eligible person solely by virtue of subsection (a) of this section, and 
who is above the age of seventeen years and below the age of twenty-
three years on September 30, 1966, the period referred to in sec

Sec. 3566 CH. 35-SURVIVORSï¿½ AND DEPENDENTSï¿½ ED. ASST. 532 

tion 3512 of this title shall not end until the expiration of the five-
year period which begins on September 30, 1966. 

(Added Pub. L. 89-613, Sec. 1, Sept. 30, 1966, 80 Stat. 861, Sec. 1765; 
amended 
Pub. L. 91-24, Sec. 9(c), June 11, 1969, 83 Stat. 34; Pub. L. 97-295, 
Sec. 4(47), Oct. 
12, 1982, 96 Stat. 1308; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), 
Dec. 18, 1989, 
103 Stat. 2092; renumbered Sec. 3565 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-446, title V, Sec. 507(b), 
Nov. 2, 1994, 108 
Stat. 4664; Pub. L. 109-233, title V, Sec. 503(8)(A), June 15, 2006, 
120 Stat. 416.) 

ï¿½ 3566. Definitions 

(a) The term ï¿½ï¿½Commonwealth Army veteransï¿½ï¿½ means persons 
who served before July 1, 1946, in the organized military forces of 
the Government of the Philippines, while such forces were in the 
service of the Armed Forces pursuant to the military order of the 
President dated July 26, 1941, including among such military 
forces organized guerrilla forces under commanders appointed, 
designated, or subsequently recognized by the Commander-in-Chief, 
Southwest Pacific Area, or other competent authority in the Army 
of the United States, and who were discharged or released from 
such service under conditions other than dishonorable. 
(b) The term ï¿½ï¿½ï¿½ï¿½Newï¿½ï¿½ Philippine Scoutsï¿½ï¿½ means Philippine 
Scouts who served under section 14 of the Armed Forces Voluntary 
Recruitment Act of 1945, and who were discharged or released 
from such service under conditions other than dishonorable. 
(Added Pub. L. 89-613, Sec. 1, Sept. 30, 1966, 80 Stat. 861, Sec. 1766; 
renumbered 
Sec. 3566, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 


CHAPTER 36 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


533 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 36-ADMINISTRATION OF EDUCATIONAL 
BENEFITS


SUBCHAPTER I-STATE APPROVING AGENCIES 

Sec. 
3670. Scope of approval. 
3671. Designation. 
3672. Approval of courses. 
3673. Approval activities: cooperation and coordination of activities. 
3674. Reimbursement of expenses. 
3674A. Evaluations of agency performance; qualifications and 
performance of 


agency personnel. 
3675. Approval of accredited courses. 
3676. Approval of nonaccredited courses. 
3677. Approval of training on the job. 
3678. Notice of approval of courses. 
3679. Disapproval of courses. 

SUBCHAPTER II-MISCELLANEOUS PROVISIONS 

3680. Payment of educational assistance or subsistence allowances. 
3680A. Disapproval of enrollment in certain courses. 
3681. Limitations on educational assistance. 
3682. Control by agencies of the United States. 
3683. Conflicting interests. 
3684. Reports by veterans, eligible persons, and institutions; 
reporting fee. 
3684A. Procedures relating to computer matching program. 
3685. Overpayments to eligible persons or veterans. 
3686. Correspondence courses. 
3687. Apprenticeship or other on-job training. 
3688. Measurement of courses. 
3689. Approval requirements for licensing and certification testing. 
3690. Overcharges by educational institutions; discontinuance of 
allowances; ex


amination of records; false or misleading statements. 
3691. Change of program. 
3692. Advisory committee. 
3693. Compliance surveys. 
3694. Use of other Federal agencies. 
3695. Limitation on period of assistance under two or more programs. 
3696. Limitation on certain advertising, sales, and enrollment 
practices. 
3697. Funding of contract educational and vocational counseling. 
3697A. Educational and vocational counseling. 

SUBCHAPTER III-REPEALED] 

[3698. Repealed.] 
[3699. Repealed.] 

535 


Sec. 3670 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 536 

SUBCHAPTER I-STATE APPROVING AGENCIES 

ï¿½ 3670. Scope of approval 

(a) A course approved under and for the purposes of this chapter shall 
be deemed approved for the purposes of chapters 34 and 
35 of this title. 
(b) Any course approved under chapter 33 of this title, prior to 
February 1, 1965, under subchapter VII of chapter 35 of this title, 
prior to March 3, 1966, and not disapproved under section 3483, 
section 1656 (as in effect prior to February 1, 1965), or section 3679 
of this title, shall be deemed approved for the purposes of this 
chapter. 
(Added Pub. L. 89-358, Sec. 3(a)(5), Mar. 3, 1966, 80 Stat. 20, Sec. 
1770; amended 
Pub. L. 92-540, title IV, Sec. 403(1), Oct. 24, 1972, 86 Stat. 1090; 
Pub. L. 97-295, 
Sec. 4(49), Oct. 12, 1982, 96 Stat. 1308; renumbered Sec. 3670 and 
amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 3671. Designation 

(a) Unless otherwise established by the law of the State concerned, the 
chief executive of each State is requested to create or 
designate a State department or agency as the ï¿½ï¿½State approving 
agencyï¿½ï¿½ for such State for the purposes of this chapter and chapters 34 
and 35 of this title. 
(b)(1) If any State fails or declines to create or designate a 
State approving agency, or fails to enter into an agreement under 
section 3674(a), the provisions of this chapter which refer to the 
State approving agency shall, with respect to such State, be 
deemed to refer to the Secretary. 

(2) In the case of courses subject to approval by the Secretary 
under section 3672 of this title, the provisions of this chapter which 
refer to a State approving agency shall be deemed to refer to the 
Secretary. 
(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 158, Sec. 1771; 
amended 
Pub. L. 89-358, Sec. 3(a)(6), Mar. 3, 1966, 80 Stat. 20; Pub. L. 92-540, 
title IV, Sec. 
403(2), Oct. 24, 1972, 86 Stat. 1090; Pub. L. 94-502, title V, Sec. 
513(a)(1), Oct. 15, 
1976, 90 Stat. 2402; Pub. L. 100-323, Sec. 13(b)(4), May 20, 1988, 102 
Stat. 573; 
Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 
2092; renumbered Sec. 3671 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 
Stat. 406.) 

ï¿½ 3672. Approval of courses 

(a) An eligible person or veteran shall receive the benefits of 
this chapter and chapters 34 and 35 of this title while enrolled in 
a course of education offered by an educational institution only if 
(1) such course is approved as provided in this chapter and chapters 34 
and 35 of this title by the State approving agency for the 
State where such educational institution is located, or by the Secretary, 
or (2) such course is approved (A) for the enrollment of the 
particular individual under the provisions of section 3536 of this 
title or (B) for special restorative training under subchapter V of 
chapter 35 of this title. Approval of courses by State approving 
agencies shall be in accordance with the provisions of this chapter 
and chapters 34 and 35 of this title and such other regulations and 
policies as the State approving agency may adopt. Each State approving 
agency shall furnish the Secretary with a current list of 

537 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3672 

educational institutions specifying courses which it has approved, 
and, in addition to such list, it shall furnish such other information 
to the Secretary as it and the Secretary may determine to be necessary 
to carry out the purposes of this chapter and chapters 34 
and 35 of this title. Each State approving agency shall notify the 
Secretary of the disapproval of any course previously approved and 
shall set forth the reasons for such disapproval. 

(b) The Secretary shall be responsible for the approval of 
courses of education offered by any agency of the Federal Government 
authorized under other laws to supervise such education. The 
Secretary may approve any course in any other educational institution in 
accordance with the provisions of this chapter and chapters 
34 and 35 of this title. 
(c)(1) In the case of programs of apprenticeship where- 

(A) the apprenticeship standards have been approved by 
the Secretary of Labor pursuant to section 2 of the Act of August 16, 
1937 (popularly known as the ï¿½ï¿½National Apprenticeship Actï¿½ï¿½) 
(29 U.S.C. 50a), as a national apprenticeship program for operation in 
more than one State, and 
(B) the training establishment is a carrier directly engaged 
in interstate commerce which provides such training in more 
than one State, 
the Secretary shall act as a ï¿½ï¿½State approving agencyï¿½ï¿½ as such term 
is used in section 3687(a)(1) of this title and shall be responsible 
for the approval of all such programs. 

(2) The period of a program of apprenticeship may be determined based 
upon a specific period of time (commonly referred to 
as a ï¿½ï¿½time-based programï¿½ï¿½), based upon the demonstration of successful 
mastery of skills (commonly referred to as a ï¿½ï¿½competencybased 
programï¿½ï¿½), or based upon a combination thereof. 
(3)(A) In the case of a competency-based program of apprenticeship, 
State approving agencies shall determine the period for 
which payment may be made for such a program under chapters 
30 and 35 of this title and chapter 1606 of title 10. In determining 
the period of such a program, State approving agencies shall take 
into consideration the approximate term of the program recommended in 
registered apprenticeship program standards recognized by the Secretary 
of Labor. 

(B) The sponsor of a competency-based program of apprenticeship shall 
provide notice to the State approving agency involved of 
any such standards that may apply to the program and the proposed 
approximate period of training under the program. 
(4) The sponsor of a competency-based program of apprenticeship shall 
notify the Secretary upon the successful completion of a 
program of apprenticeship by an individual under chapter 30 or 35 
of this title, or chapter 1606 of title 10, as the case may be. 
(d)(1) Pursuant to regulations prescribed by the Secretary in 
consultation with the Secretary of Labor, the Secretary and State 
approving agencies shall actively promote the development of 
apprenticeship and on the job training programs for the purposes of 
sections 3677 and 3687 of this title and shall utilize the services 
of disabled veteransï¿½ outreach program specialists under section 
4103A of this title to promote the development of such programs. 
The Secretary of Labor shall provide assistance and services to the 


Sec. 3673 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 538 

Secretary, and to State approving agencies, to increase the use of 
apprenticeships. 

(2) In conjunction with outreach services provided by the Secretary 
under chapter 77 of this title for education and training benefits, 
each State approving agency shall conduct outreach programs 
and provide outreach services to eligible persons and veterans 
about education and training benefits available under applicable 
Federal and State law. 
(e) A program of education exclusively by correspondence, and 
the correspondence portion of a combination correspondence-residence 
course leading to a vocational objective, that is offered by an 
educational institution (as defined in section 3452(c) of this title) 
may be approved only if (1) the educational institution is accredited 
by an entity recognized by the Secretary of Education, and (2) at 
least 50 percent of those pursuing such a program or course require 
six months or more to complete the program or course. 
(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 158, Sec. 1772; 
amended 
Pub. L. 89-358, Sec. 3(a)(7), (8), Mar. 3, 1966, 80 Stat. 20, 21; Pub. 
L. 91-219, title 
II, Sec. 211, Mar. 26, 1970, 84 Stat. 83; Pub. L. 92-540, title IV, Sec. 
403(3)-(5), 
Oct. 24, 1972, 86 Stat. 1090; Pub. L. 96-466, title V, Sec. 502, Oct. 
17, 1980, 94 
Stat. 2203; Pub. L. 97-295, Sec. 4(50), Oct. 12, 1982, 96 Stat. 1308; 
Pub. L. 101- 
237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3672 
and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 
103-446, title VI, Sec. 605(a)(1), Nov. 2, 1994, 108 Stat. 4671; Pub. 
L. 107-103, title 
III, Sec. 303, Dec. 27, 2001, 115 Stat. 992; Pub. L. 108-454, title I, 
Secs. 104(a), 
(b), 110(b), Dec. 10, 2004, 118 Stat. 3601, 3602, 3605.) 

ï¿½ 3673. Approval activities: cooperation and coordination of 
activities 

(a) COOPERATION IN ACTIVITIES.-The Secretary and each State 
approving agency shall take cognizance of the fact that definite 
duties, functions, and responsibilities are conferred upon the Secretary 
and each State approving agency under the educational programs established 
under this chapter and chapters 34 and 35 of 
this title. To assure that such programs are effectively and efficiently 
administered, the cooperation of the Secretary and the State 
approving agencies is essential. It is necessary to establish an exchange 
of information pertaining to activities of educational institutions, and 
particular attention should be given to the enforcement 
of approval standards, enforcement of enrollment restrictions, and 
fraudulent and other criminal activities on the part of persons connected 
with educational institutions in which eligible persons or 
veterans are enrolled under this chapter and chapters 34 and 35 
of this title. 
(b) COORDINATION OF ACTIVITIES.-The Secretary shall take 
appropriate actions to ensure the coordination of approval activities 
performed by State approving agencies under this chapter and 
chapters 34 and 35 of this title and approval activities performed 
by the Department of Labor, the Department of Education, and 
other entities in order to reduce overlap and improve efficiency in 
the performance of such activities. 
(c) AVAILABILITY OF INFORMATION MATERIAL.-The Secretary 
will furnish the State approving agencies with copies of such 
Department of Veterans Affairs informational material as may aid 
them in carrying out chapters 34 and 35 of this title. 

539 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3674 

(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 158, Sec. 1773; 
amended Pub. L. 89-358, Sec. 3(a)(7), (11), Mar. 3, 1966, 80 Stat. 20, 
21; Pub. L. 92-540, title IV, Sec. 403(6), Oct. 24, 1972, 86 Stat. 1090; 
Pub. L. 97-295, Sec. 4(51), Oct. 12, 1982, 96 Stat. 1308; Pub. L. 
101-237, title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 3673, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 110-389, title III, Sec. 326(a)(1), (2)(A), (3), Oct. 10, 
2008, 122 Stat. 
4169.) 

ï¿½ 3674. Reimbursement of expenses 

(a)(1) Subject to paragraphs (2) through (4) of this subsection, 
the Secretary is authorized to enter into contracts or agreements 
with State and local agencies to pay such State and local agencies 
for reasonable and necessary expenses of salary and travel incurred 
by employees of such agencies and an allowance for administrative 
expenses in accordance with the formula contained in subsection 

(b) of this section in (A) rendering necessary services in 
ascertaining the qualifications of educational institutions for 
furnishing courses of education to eligible persons or veterans under 
this chapter and chapters 30 through 35 of this title and chapter 
106 of title 10, and in the supervision of such educational 
institutions, and (B) furnishing, at the request of the Secretary, any 
other services in connection with such chapters. Each such contract or 
agreement shall be conditioned upon compliance with the standards and 
provisions of such chapters. The Secretary may also reimburse such 
agencies for work performed by their subcontractors 
where such work has a direct relationship to the requirements of 
such chapters, and has had the prior approval of the Secretary. 
(2)(A) The Secretary shall make payments to State and local 
agencies, out of amounts available for the payment of readjustment 
benefits, for the reasonable and necessary expenses of salary and 
travel incurred by employees of such agencies in carrying out contracts 
or agreements entered into under this section, for expenses 
approved by the Secretary that are incurred in carrying out activities 
described in section 3674A(a)(3) of this title (except for 
administrative overhead expenses allocated to such activities), and for 
the allowance for administrative expenses described in subsection (b). 

(B) The Secretary shall make such a payment to an agency 
within a reasonable time after the agency has submitted a report 
pursuant to paragraph (3) of this subsection. 
(C) Subject to paragraph (4) of this subsection, the amount of 
any such payment made to an agency for any period shall be equal 
to the amount of the reasonable and necessary expenses of salary 
and travel certified by such agency for such period in accordance 
with paragraph (3) of this subsection plus the allowance for 
administrative expenses described in subsection (b) and the amount of 
expenses approved by the Secretary that are incurred in carrying out 
activities described in section 3674A(a)(3) of this title for such 
period (except for administrative overhead expenses allocated to such 
activities). 
(3) Each State and local agency with which a contract or agreement is 
entered into under this section shall submit to the Secretary on a 
monthly or quarterly basis, as determined by the agency, a report 
containing a certification of the reasonable and necessary expenses 
incurred for salary and travel by such agency 
under such contract or agreement for the period covered by the re

Sec. 3674A CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 540 

port. The report shall be submitted in the form and manner required by 
the Secretary. 

(4) The total amount made available under this section for any 
fiscal year shall be $19,000,000. 
(b) The allowance for administrative expenses incurred pursuant to 
subsection (a) of this section shall be paid in accordance with 
the following formula: 
Total salary cost reimbursable under this section Allowable for 
administrative expense 
$5,000 or less $693. 
Over $5,000 but not exceeding $10,000 $1,247. 
Over $10,000 but not exceeding $35,000 $1,247 for the first $10,000, 
plus $1,155 for each additional $5,000 or fraction thereof. 
Over $35,000 but not exceeding $40,000 $7,548. 
Over $40,000 but not exceeding $75,000 $7,548 for the first $40,000, 
plus $999 for each additional 
$5,000 or fraction thereof. 
Over $75,000 but not exceeding $80,000 $14,969. 
Over $80,000 $14,969 for the first $80,000, plus $872 for each 
additional $5,000 or fraction thereof. 

(c) Each State and local agency with which the Secretary contracts or 
enters into an agreement under subsection (a) of this section shall 
report to the Secretary periodically, but not less often 
than annually, as determined by the Secretary, on the activities in 
the preceding twelve months (or the period which has elapsed since 
the last report under this subsection was submitted) carried out 
under such contract or agreement. Each such report shall describe, 
in such detail as the Secretary shall prescribe, services performed 
and determinations made in connection with ascertaining the 
qualifications of educational institutions in connection with this 
chapter and chapters 32, 34, and 35 of this title and in supervising 
such institutions. 
(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 159, Sec. 1774; 
amended 
Pub. L. 89-358, Sec. 3(a)(7), (8), (11), Mar. 3, 1966, 80 Stat. 20, 21; 
Pub. L. 90-631, 
Sec. 4, Oct. 23, 1968, 82 Stat. 1334; Pub. L. 92-540, title IV, Sec. 
403(7), 411, Oct. 
24, 1972, 86 Stat. 1090, 1092; Pub. L. 93-508, title II, Sec. 210(1), 
Dec. 3, 1974, 88 
Stat. 1584; Pub. L. 94-502, title V, Sec. 503, Oct. 15, 1976, 90 Stat. 
2399; Pub. L. 
95-202, title III, Sec. 303, Nov. 23, 1977, 91 Stat. 1441; Pub. L. 
96-466, title II, 
Sec. 203(1), 213(1), Oct. 17, 1980, 94 Stat. 2188, 2190; Pub. L. 
97-295, Sec. 4(51), 
Oct. 12, 1982, 96 Stat. 1308; Pub. L. 100-323, Sec. 13(a)(1), (b)(5), 
May 20, 1988, 
102 Stat. 571, 573; Pub. L. 101-237, title IV, Sec. 414, 423(b)(1)(A), 
Dec. 18, 1989, 
103 Stat. 2085, 2092; Pub. L. 102-16, Sec. 10(a)(7), Mar. 22, 1991, 
105 Stat. 56; renumbered Sec. 3674 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; Pub. L. 103-446, title VI, Sec. 606(a)(1), (b), Nov. 2, 
1994, 108 Stat. 
4672; Pub. L. 106-419, title I, Sec. 123, Nov. 1, 2000, 114 Stat. 1837; 
Pub. L. 107- 
14, Sec. 8(a)(7), June 5, 2001, 115 Stat. 34; Pub. L. 107-330, title 
III, Sec. 301, Dec. 
6, 2002, 116 Stat. 2824; Pub. L. 110-252, title V, Sec. 5005, June 30, 
2008, 122 Stat. 
2379.) 

ï¿½ 3674A. Evaluations of agency performance; qualifications 
and performance of agency personnel 

(a) The Secretary shall- 
(1)(A) conduct, in conjunction with State approving agencies, an annual 
evaluation of each State approving agency on 
the basis of standards developed by the Secretary in conjunction with the 
State approving agencies, and (B) provide each 
such agency an opportunity to comment on the evaluation; 


541 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3675 

(2) take into account the results of annual evaluations carried out under 
paragraph (1) when negotiating the terms and 
conditions of a contract or agreement under section 3674 of 
this title; 
(3) cooperate with State approving agencies in developing 
and implementing a uniform national curriculum, to the extent 
practicable, for training new employees and for continuing the 
training of employees of such agencies, and sponsor, with the 
agencies, such training and continuation of training; and 
(4) prescribe prototype qualification and performance 
standards, developed in conjunction with State approving agencies, for 
use by such agencies in the development of qualification and performance 
standards for State approving agency 
personnel carrying out approval responsibilities under a contract or 
agreement entered into under section 3674(a). 
(b)(1) Each State approving agency carrying out a contract or 
agreement with the Secretary under section 3674(a) of this title 
shall- 

(A) apply qualification and performance standards based 
on the standards developed under subsection (a)(4); and 
(B) make available to any person, upon request, the criteria used to
carry out its functions under a contract or agreement entered into 
under section 3674(a) of this title. 
(2) In developing and applying standards described in subsection (a)
(4), the State approving agency may take into consideration the 
Stateï¿½s merit system requirements and other local requirements and 
conditions. 
(3) The Secretary shall provide assistance in developing such 
standards to a State approving agency that requests it. 
(Added Pub. L. 100-323, Sec. 13(b)(1)(A), May 20, 1988, 102 Stat. 572, 
Sec. 1774A; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), 
Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3674A and amended Pub. 
L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
103-446, title VI, Sec. 606(c), Nov. 2, 1994, 108 Stat. 4672; Pub. L. 
105-368, title X, Sec. 1005(b)(8), Nov. 11, 1998, 112 Stat. 3365; 
Pub. L. 107- 14, Sec. 8(a)(8), June 5, 2001, 115 Stat. 35.) 

ï¿½ 3675. Approval of accredited courses 

(a)(1) A State approving agency may approve the courses offered by an 
educational institution when- 

(A) such courses have been accredited and approved by a 
nationally recognized accrediting agency or association; 
(B) such courses are conducted under the Act of February 
23, 1917 (20 U.S.C. 11 et seq.); 
(C) such courses are accepted by the State department of 
education for credit for a teacherï¿½s certificate or a teacherï¿½s 
degree; or 
(D) such courses are approved by the State as meeting the 
requirement of regulations prescribed by the Secretary of 
Health and Human Services under sections 1819(f)(2)(A)(i) and 
1919(f)(2)(A)(i) of the Social Security Act (42 U.S.C. 
1395i3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)). (2)(A) For the purposes 
of this chapter, the Secretary of Education shall publish a list of 
nationally recognized accrediting agencies and associations which 
that Secretary determines to be reliable 


Sec. 3675 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 542 

authority as to the quality of training offered by an educational 
institution. 

(B) Except as provided in section 3672(e) of this title, a State 
approving agency may utilize the accreditation of any accrediting 
association or agency listed pursuant to subparagraph (A) of this 
paragraph for approval of courses specifically accredited and 
approved by such accrediting association or agency. 
(3)(A) An educational institution shall submit an application 
for approval of courses to the appropriate State approving agency. 
In making application for approval, the institution (other than an 
elementary school or secondary school) shall transmit to the State 
approving agency copies of its catalog or bulletin which must be 
certified as true and correct in content and policy by an authorized 
representative of the institution. 

(B) Each catalog or bulletin transmitted by an institution 
under subparagraph (A) of this paragraph shall- 
(i) state with specificity the requirements of the institution 
with respect to graduation; 
(ii) include the information required under paragraphs (6) 
and (7) of section 3676(b) of this title; and 
(iii) include any attendance standards of the institution, if 
the institution has and enforces such standards. 
(b) As a condition of approval under this section, the State approving 
agency must find the following: 
(1) The educational institution keeps adequate records, as 
prescribed by the State approving agency, to show the progress 
and grades of the eligible person or veteran and to show that 
satisfactory standards relating to progress and conduct are enforced. 
(2) The educational institution maintains a written record 
of the previous education and training of the eligible person or 
veteran that clearly indicates that appropriate credit has been 
given by the educational institution for previous education and 
training, with the training period shortened proportionately. 
(3) The educational institution and its approved courses 
meet the criteria of paragraphs (1), (2), and (3) of section 
3676(c) of this title. 
(c)(1) A State approving agency may approve the entrepreneur
ship courses offered by a qualified provider of entrepreneurship 
courses. 

(2) For purposes of this subsection, the term ï¿½ï¿½entrepreneurship 
courseï¿½ï¿½ means a non-degree, non-credit course of business education 
that enables or assists a person to start or enhance a small 
business concern (as defined pursuant to section 3(a) of the Small 
Business Act (15 U.S.C. 632(a))). 
(3) Subsection (a) and paragraphs (1) and (2) of subsection (b) 
shall not apply to- 
(A) an entrepreneurship course offered by a qualified provider of
entrepreneurship courses; and 
(B) a qualified provider of entrepreneurship courses by 
reason of such provider offering one or more entrepreneurship 
courses. 
(4) Notwithstanding paragraph (3), a qualified provider of 
entrepreneurship courses shall maintain such records as the Sec

543 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3676 

retary determines to be necessary to comply with reporting requirements 
that apply under section 3684(a)(1) of this title with respect 
to eligible persons and veterans enrolled in an entrepreneurship 
course offered by the provider. 

(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 159, Sec. 1775; 
amended Pub. L. 89-358, Sec. 3(a)(8), Mar. 3, 1966, 80 Stat. 21; Pub. L. 
94-502, title V, Sec. 504, 513(a)(2), Oct. 15, 1976, 90 Stat. 2399, 
2402; Pub. L. 96-466, title VIII, Sec. 801(d), Oct. 17, 1980, 94 Stat. 
2216; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3675 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, Sec. 
312, Oct. 29, 1992, 106 Stat. 4330; Pub. L. 103-446, title VI, Sec. 
605(a)(2)(A), Nov. 2, 1994, 108 Stat. 4672; Pub. L. 104-275, title I, 
Sec. 103(c), Oct. 9, 1996, 110 Stat. 3326; Pub. L. 108-183, title III, 
Sec. 305(a), Dec. 16, 2003, 117 Stat. 2660; Pub. L. 108-454, 
title I, Sec. 110(c)(1), Dec. 10, 2004, 118 Stat. 3605.) 
ï¿½ 3676. Approval of nonaccredited courses 

(a) No course of education which has not been approved by a 
State approving agency pursuant to section 3675 of this title, which 
is offered by a public or private, profit or nonprofit, educational 
institution shall be approved for the purposes of this chapter unless 
the educational institution offering such course submits to the appropriate 
State approving agency a written application for approval 
of such course in accordance with the provisions of this chapter. 
(b) Such application shall be accompanied by not less than two 
copies of the current catalog or bulletin which is certified as true 
and correct in content and policy by an authorized owner or official 
and includes the following: 
(1) Identifying data, such as volume number and date of 
publication; 
(2) Names of the institution and its governing body, officials and faculty; 
(3) A calendar of the institution showing legal holidays, beginning and 
ending date of each quarter, term, or semester, 
and other important dates; 
(4) Institution policy and regulations on enrollment with 
respect to enrollment dates and specific entrance requirements 
for each course; 
(5) Institution policy and regulations relative to leave, absences, class 
cuts, makeup work, tardiness and interruptions 
for unsatisfactory attendance; 
(6) Institution policy and regulations relative to standards 
of progress required of the student by the institution (this policy will 
define the grading system of the institution, the minimum grades considered 
satisfactory, conditions for interruption for unsatisfactory grades or 
progress and a description of 
the probationary period, if any, allowed by the institution, and 
conditions of reentrance for those students dismissed for unsatisfactory 
progress. A statement will be made regarding 
progress records kept by the institution and furnished the student); 
(7) Institution policy and regulations relating to student 
conduct and conditions for dismissal for unsatisfactory conduct; 
(8) Detailed schedules of fees, charges for tuition, books, 
supplies, tools, student activities, laboratory fees, service 
charges, rentals, deposits, and all other charges; 

Sec. 3676 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 544 

(9) Policy and regulations of the institution relative to the 
refund of the unused portion of tuition, fees, and other charges 
in the event the student does not enter the course or withdraws or is 
discontinued therefrom; 
(10) A description of the available space, facilities, and 
equipment; 
(11) A course outline for each course for which approval is 
requested, showing subjects or units in the course, type of work 
or skill to be learned, and approximate time and clock hours 
to be spent on each subject or unit; and 
(12) Policy and regulations of the institution relative to 
granting credit for previous educational training. 
(c) The appropriate State approving agency may approve the 
application of such institution when the institution and its 
non-accredited courses are found upon investigation to have met the 
following criteria: 
(1) The courses, curriculum, and instruction are consistent 
in quality, content, and length with similar courses in public 
schools and other private schools in the State, with recognized 
accepted standards. 
(2) There is in the institution adequate space, equipment, 
instructional material, and instructor personnel to provide 
training of good quality. 
(3) Educational and experience qualifications of directors, 
administrators, and instructors are adequate. 
(4) The institution maintains a written record of the previous 
education and training of the eligible person and clearly 
indicates that appropriate credit has been given by the institution for 
previous education and training, with the training period shortened 
proportionately and the eligible person so notified. 
(5) A copy of the course outline, schedule of tuition, fees, 
and other charges, regulations pertaining to absence, grading 
policy, and rules of operation and conduct will be furnished the 
eligible person upon enrollment. 
(6) Upon completion of training, the eligible person is 
given a certificate by the institution indicating the approved 
course and indicating that training was satisfactorily completed. 
(7) Adequate records as prescribed by the State approving 
agency are kept to show attendance and progress or grades, 
and satisfactory standards relating to attendance, progress, 
and conduct are enforced. 
(8) The institution complies with all local, city, county, municipal, 
State, and Federal regulations, such as fire codes, 
building and sanitation codes. The State approving agency may 
require such evidence of compliance as is deemed necessary. 
(9) The institution is financially sound and capable of fulfilling its 
commitments for training. 
(10) The institution does not utilize advertising of any type 
which is erroneous or misleading, either by actual statement, 
omission, or intimation. The institution shall not be deemed to 
have met this requirement until the State approving agency 
(A) has ascertained from the Federal Trade Commission 

545 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3676 

whether the Commission has issued an order to the institution 
to cease and desist from any act or practice, and (B) has, if 
such an order has been issued, given due weight to that fact. 

(11) The institution does not exceed its enrollment limitations as 
established by the State approving agency. 
(12) The institutionï¿½s administrators, directors, owners, 
and instructors are of good reputation and character. 
(13) The institution has and maintains a policy for the refund of the 
unused portion of tuition, fees, and other charges 
in the event the eligible person fails to enter the course or 
withdraws or is discontinued therefrom at any time before 
completion and- 
(A) in the case of an institution (other than (i) a Federal, State, or 
local Government institution or (ii) an institution described in 
subparagraph (B)), such policy provides 
that the amount charged to the eligible person for tuition, 
fees, and other charges for a portion of the course shall not 
exceed the approximate pro rata portion of the total 
charges for tuition, fees, and other charges that the length 
of the completed portion of the course bears to its total 
length; or 
(B) in the case of an institution that is a nonaccredited 
public educational institution, the institution has and 
maintains a refund policy regarding the unused portion of 
tuition, fees, and other charges that is substantially the 
same as the refund policy followed by accredited public 
educational institutions located within the same State as 
such institution. 
(14) Such additional criteria as may be deemed necessary 
by the State approving agency. 
(d) The Secretary may waive, in whole or in part, the requirements of 
subsection (c)(13) of this section in the case of an educational 
institution which- 
(1) is a college, university, or similar institution offering 
postsecondary level academic instruction that leads to an associate or
higher degree, 
(2) is operated by an agency of a State or of a unit of local 
government, 
(3) is located within such State or, in the case of an institution 
operated by an agency of a unit of local government, 
within the boundaries of the area over which such unit has 
taxing jurisdiction, and 
(4) is a candidate for accreditation by a regional accred
iting association, 
if the Secretary determines, pursuant to regulations which the 
Secretary shall prescribe, that such requirements would work an 
undue administrative hardship because the total amount of tuition, 
fees, and other charges at such institution is nominal. 

(e) Notwithstanding any other provision of this title, a course 
of education shall not be approved under this section if it is to be 
pursued in whole or in part by independent study. 
(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 159, Sec. 1776; 
amended Pub. L. 89-358, Sec. 3(a)(9), Mar. 3, 1966, 80 Stat. 21; Pub. 
L. 97-66, title VI, Sec. 606, Oct. 17, 1981, 95 Stat. 1037; Pub. L. 
101-237, title IV, Sec. 423(b)(1)(A), Dec. 


Sec. 3677 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 546 

18, 1989, 103 Stat. 2092; renumbered Sec. 3676 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, 
title III, Sec. 313(a)(1), Oct. 29, 1992, 106 Stat. 4331; Pub. L. 
109-461, title III, Sec. 303, Dec. 22, 2006, 120 Stat. 3428; Pub. L. 
110-389, title III, Sec. 322, Oct. 10, 2008, 122 Stat. 4168.) 

ï¿½ 3677. Approval of training on the job 

(a) Any State approving agency may approve a program of 
training on the job (other than a program of apprenticeship) only 
when it finds that the job which is the objective of the training is 
one in which progression and appointment to the next higher 
classification are based upon skills learned through organized and 
supervised training on the job and not on such factors as length of 
service and normal turnover, and that the provisions of subsections 
(b) and (c) of this section are met. 
(b)(1) The training establishment offering training which is desired to 
be approved for the purposes of this chapter must submit 
to the appropriate State approving agency a written application for 
approval which, in addition to furnishing such information as is required 
by the State approving agency, contains a certification 
that- 

(A) the wages to be paid the eligible veteran or person (i) 
upon entrance into training, are not less than wages paid non-
veterans in the same training position and are at least 50 per 
centum of the wages paid for the job for which the veteran or 
person is to be trained, and (ii) such wages will be increased 
in regular periodic increments until, not later than the last full 
month of the training period, they will be at least 85 per centum of 
the wages paid for the job for which such eligible veteran or person 
is being trained; and 
(B) there is reasonable certainty that the job for which the 
eligible veteran or person is to be trained will be available to 
the veteran or person at the end of the training period. 
(2) The requirement under paragraph (1)(A)(ii) shall not apply 
with respect to a training establishment operated by the United 
States or by a State or local government. 
(3) The requirement for certification under paragraph (1) shall 
not apply to training described in section 3452(e)(2) of this title. 
(c) As a condition for approving a program of training on the 
job (other than a program of apprenticeship) the State approving 
agency must find upon investigation that the following criteria are 
met: 
(1) The training content of the course is adequate to qualify the 
eligible veteran or person for appointment to the job for 
which the veteran or person is to be trained. 
(2) The job customarily requires full-time training for a period of 
not less than six months and not more than two years. 
(3) The length of the training period is not longer than 
that customarily required by the training establishments in 
the community to provide an eligible veteran or person with 
the required skills, arrange for the acquiring of job knowledge, 
technical information, and other facts which the eligible veteran or 
person will need to learn in order to become competent 
on the job for which the veteran or person is being trained. 
(4) Provision is made for related instruction for the individual
eligible veteran or person who may need it. 

547 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3678 

(5) There is in the training establishment adequate space, 
equipment, instructional material, and instructor personnel to 
provide satisfactory training on the job. 
(6) Adequate records are kept to show the progress made 
by each eligible veteran or person toward such veteranï¿½s or personï¿½s 
job objective. 
(7) No course of training will be considered bona fide if 
given to an eligible veteran or person who is already qualified 
by training and experience for the job. 
(8) A signed copy of the training agreement for each eligible veteran 
or person, including the training program and 
wage scale as approved by the State approving agency, is provided to 
the veteran or person and to the Secretary and the 
State approving agency by the employer. 
(9) That the course meets such other criteria as may be established by 
the State approving agency. 
(d)(1) The Secretary may conduct a pilot program under which 
the Secretary operates a program of training on the job under this 
section for a period (notwithstanding subsection (c)(2)) of up to 
three years in duration to train employees of the Department to become 
qualified adjudicators of claims for compensation, dependency 
and indemnity compensation, and pension. 

(2)(A) Not later than three years after the implementation of 
the pilot project, the Secretary shall submit to Congress an initial 
report on the pilot project. The report shall include an assessment 
of the usefulness of the program in recruiting and retaining of 
personnel of the Department as well as an assessment of the value of 
the program as a training program. 

(B) Not later than 18 months after the date on which the initial report 
under subparagraph (A) is submitted, the Secretary 
shall submit to Congress a final report on the pilot project. The 
final report shall include recommendations of the Secretary with 
respect to continuation of the pilot project and with respect to 
expansion of the types of claims for which the extended period of on 
the job training is available to train such employees. 
(Added Pub. L. 90-77, title III, Sec. 304(d), Aug. 31, 1967, 81 Stat. 
186, Sec. 1777; amended Pub. L. 91-219, title II, Sec. 212, Mar. 26, 
1970, 84 Stat. 83; Pub. L. 92-540, title III, Sec. 314, Oct. 24, 1972, 
86 Stat. 1084; Pub. L. 94-502, title V, Sec. 513(a)(3), Oct. 15, 1976, 
90 Stat. 2402; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 18, 
1989, 103 Stat. 2092; renumbered Sec. 3677, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-368, title II, Sec. 205(a), 
Nov. 11, 1998, 112 Stat. 3327; Pub. L. 108-454, title I, Sec. 108, 
Dec. 10, 2004, 118 Stat. 3604; Pub. L. 110-389, title III, Sec. 325, 
Oct. 10, 2008, 122 Stat. 4169.) 

ï¿½ 3678. Notice of approval of courses 

The State approving agency, upon determining that an educational 
institution has complied with all the requirements of this 
chapter, will issue a letter to such institution setting forth the 
courses which have been approved for the purposes of this chapter, 
and will furnish an official copy of such letter and any subsequent 
amendments to the Secretary. The letter of approval shall be 
accompanied by a copy of the catalog or bulletin of the institution, 
as approved by the State approving agency, and shall contain the 
following information: 

(1) date of letter and effective date of approval of courses; 

Sec. 3679 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 548 

(2) proper address and name of each educational institution; 
(3) authority for approval and conditions of approval, referring 
specifically to the approved catalog or bulletin published 
by the educational institution; 
(4) name of each course approved; 
(5) where applicable, enrollment limitations such as maximum numbers 
authorized and student-teacher ratio; 
(6) signature of responsible official of State approving 
agency; and 
(7) such other fair and reasonable provisions as are considered 
necessary by the appropriate State approving agency. (Added Pub. L. 
88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 162, Sec. 1777; renumbered 
Sec. 1778, Pub. L. 90-77, title III, Sec. 304(d), Aug. 31, 1967, 81 
Stat. 186; amended Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), Dec. 
18, 1989, 103 Stat. 2092; renumbered Sec. 3678, Pub. L. 102-83, Sec. 
5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3679. Disapproval of courses 

(a) Any course approved for the purposes of this chapter which 
fails to meet any of the requirements of this chapter shall be 
immediately disapproved by the appropriate State approving agency. An 
educational institution which has its courses disapproved by a 
State approving agency will be notified of such disapproval by a 
certified or registered letter of notification and a return receipt 
secured. 
(b) Each State approving agency shall notify the Secretary of 
each course which it has disapproved under this section. The Secretary 
shall notify the State approving agency of the Secretaryï¿½s 
disapproval of any educational institution under chapter 31 of this 
title. 
(Added Pub. L. 88-126, Sec. 1, Sept. 23, 1963, 77 Stat. 162, Sec. 1778; 
renumbered Sec. 1779, Pub. L. 90-77, title III, Sec. 304(d), Aug. 31, 
1967, 81 Stat. 186; amended Pub. L. 94-502, title V, Sec. 513(a)(4), 
Oct. 15, 1976, 90 Stat. 2402; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 
3679, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

SUBCHAPTER II-MISCELLANEOUS PROVISIONS 

ï¿½ 3680. Payment of educational assistance or subsistence allowances 

(a) PERIOD FOR WHICH PAYMENT MAY BE MADE.-Payment of 
educational assistance or subsistence allowances to eligible veterans 
or eligible persons pursuing a program of education or training, other 
than a program by correspondence, in an educational institution under 
chapter 31, 34, or 35 of this title shall be paid as 
provided in this section and, as applicable, in section 3108, 3482, 
3491, or 3532 of this title. Such payments shall be paid only for the 
period of such veteransï¿½ or personsï¿½ enrollment in, and pursuit of, 
such program, but no amount shall be paid- 
(1) to any eligible veteran or eligible person for any period 
when such veteran or person is not pursuing such veteranï¿½s or 
personï¿½s course in accordance with the regularly established 
policies and regulations of the educational institution, with the 
provisions of such regulations as may be prescribed by the Secretary 
pursuant to subsection (g) of this section, and with the 

549 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3680 

requirements of this chapter or of chapter 34 or 35 of this title, 
but payment may be made for an actual period of pursuit of 
one or more unit subjects pursued for a period of time shorter 
than the enrollment period at the educational institution; 

(2) to any eligible veteran or person for auditing a course; 
or 
(3) to any eligible veteran or person for a course for which 
the grade assigned is not used in computing the requirements 
for graduation including a course from which the student withdraws 
unless- 
(A) the eligible veteran or person withdraws because 
he or she is ordered to active duty; or 
(B) the Secretary finds there are mitigating circumstances, except 
that, in the first instance of withdrawal (without regard to 
withdrawals described in subclause (A) of this clause) by the eligible 
veteran or person 
from a course or courses with respect to which the veteran 
or person has been paid assistance under this title, mitigating 
circumstances shall be considered to exist with respect to courses 
totaling not more than six semester hours 
or the equivalent thereof. 
Notwithstanding the foregoing, the Secretary may, subject to such 
regulations as the Secretary shall prescribe, continue to pay 
allowances to eligible veterans and eligible persons enrolled in courses 
set forth in clause (1) of this subsection- 

(A) during periods when the schools are temporarily closed 
under an established policy based upon an Executive order of 
the President or due to an emergency situation; 
(B) during periods between consecutive school terms where 
such veterans or persons transfer from one approved educational 
institution to another approved educational institution 
for the purpose of enrolling in and pursuing a similar course 
at the second institution if the period between such consecutive 
terms does not exceed 30 days; or 
(C) during periods between school terms where the educational 
institution certifies the enrollment of the eligible veteran or eligible 
person on an individual term basis if (i) the period between those 
terms does not exceed eight weeks, and (ii) 
both the terms preceding and following the period are not 
shorter in length than the period. 
(b) CORRESPONDENCE TRAINING CERTIFICATIONS.-No educational assistance 
allowance shall be paid to an eligible veteran or 
spouse or surviving spouse enrolled in and pursuing a program of 
education exclusively by correspondence until the Secretary shall 
have received- 
(1) from the eligible veteran or spouse or surviving spouse 
a certificate as to the number of lessons actually completed by 
the veteran or spouse or surviving spouse and serviced by the 
educational institution; and 
(2) from the training establishment a certification or an 
endorsement on the veteranï¿½s or spouseï¿½s or surviving spouseï¿½s 
certificate, as to the number of lessons completed by the veteran or 
spouse or surviving spouse and serviced by the institution. 

Sec. 3680 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 550 

(c) APPRENTICESHIP AND OTHER ON-JOB TRAINING.-No training assistance 
allowance shall be paid to an eligible veteran or eligible person 
enrolled in and pursuing a program of apprenticeship 
or other on-job training until the Secretary shall have received- 
(1) from such veteran or person a certification as to such 
veteranï¿½s or personï¿½s actual attendance during such period; and 
(2) from the training establishment a certification, or an 
endorsement on the veteranï¿½s or personï¿½s certificate, that such 
veteran or person was enrolled in and pursuing a program of 
apprenticeship or other on-job training during such period. 
(d) ADVANCE PAYMENT OF INITIAL EDUCATIONAL ASSISTANCE OR 
SUBSISTENCE ALLOWANCE.-(1) The educational assistance or subsistence 
allowance advance payment provided for in this subsection 
is based upon a finding by the Congress that eligible veterans and 
eligible persons may need additional funds at the beginning of a 
school term to meet the expenses of books, travel, deposits, and 
payment for living quarters, the initial installment of tuition, and 
the other special expenses which are concentrated at the beginning 
of a school term. 
(2) Subject to the provisions of this subsection, and under regulations 
which the Secretary shall prescribe, an eligible veteran or 
eligible person shall be paid an educational assistance allowance or 
subsistence allowance, as appropriate, advance payment. Such advance 
payment shall be made in an amount equivalent to the allowance for the 
month or fraction thereof in which pursuit of the 
program will commence, plus the allowance for the succeeding 
month. In the case of a person on active duty, who is pursuing a 
program of education, the advance payment shall be in a lump sum 
based upon the amount payable for the entire quarter, semester, or 
term, as applicable. In no event shall an advance payment be made 
under this subsection to a veteran or person intending to pursue 
a program of education on less than a half-time basis. An advance 
payment may not be made under this subsection to any veteran or 
person unless the veteran or person requests such payment and the 
Secretary finds that the educational institution at which such veteran 
or person is accepted or enrolled has agreed to, and can satisfactorily, 
carry out the provisions of paragraphs (4)(B) and (C) and 
(5) of this subsection. The application for advance payment, to be 
made on a form prescribed by the Secretary, shall- 
(A) in the case of an initial enrollment of a veteran or person in an 
educational institution, contain information showing 
that the veteran or person (i) is eligible for educational benefits, 
(ii) has been accepted by the institution, and (iii) has notified the 
institution of such veteranï¿½s or personï¿½s intention to attend that 
institution; and 
(B) in the case of a re-enrollment of a veteran or person, 
contain information showing that the veteran or person (i) is 
eligible to continue such veteranï¿½s or personï¿½s program of education or 
training and (ii) intends to re-enroll in the same institution, 
and, in either case, shall also state the number of semester or 
clock-hours to be pursued by such veteran or person. 

(3) For purposes of the Secretaryï¿½s determination whether any 
veteran or person is eligible for an advance payment under this 

551 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3680 

section, the information submitted by the institution, the veteran 
or person, shall establish such veteranï¿½s or personï¿½s eligibility unless 
there is evidence in such veteranï¿½s or personï¿½s file in the processing 
office establishing that the veteran or person is not eligible 
for such advance payment. 

(4) The advance payment authorized by paragraph (2) of this 
subsection shall, in the case of an eligible veteran or eligible person, 
be (A) drawn in favor of the veteran or person; (B) mailed to 
the educational institution listed on the application form for temporary 
care and delivery to the veteran or person by such institution; and (C) 
delivered to the veteran or person upon such veteranï¿½s 
or personï¿½s registration at such institution, but in no event shall 
such delivery be made earlier than thirty days before the program 
of education is to commence. 
(5) Upon delivery of the advance payment pursuant to paragraph (4) of 
this subsection, the institution shall submit to the Secretary a 
certification of such delivery. If such delivery is not effected within 
thirty days after commencement of the program of 
education in question, such institution shall return such payment 
to the Secretary forthwith. 
(e) RECOVERY OF ERRONEOUS PAYMENTS.-(1) Subject to paragraph (2), if 
an eligible veteran or eligible person fails to enroll in 
or pursue a course for which an educational assistance or subsistence 
allowance advance payment is made, the amount of such payment and any 
amount of subsequent payments which, in whole or 
in part, are due to erroneous information required to be furnished 
under subsection (d)(2) of this section, shall become an overpayment 
and shall constitute a liability of such veteran or person to 
the United States and may be recovered, unless waived pursuant 
to section 5302 of this title, from any benefit otherwise due such 
veteran or person under any law administered by the Department 
of Veterans Affairs or may be recovered in the same manner as any 
other debt due the United States. 
(2) Paragraph (1) shall not apply to the recovery of an overpayment 
of an educational allowance or subsistence allowance advance 
payment to an eligible veteran or eligible person who fails to enroll 
in or pursue a course of education for which the payment is made 
if such failure is due to the death of the veteran or person. 
(f) PAYMENTS FOR LESS THAN HALF-TIME TRAINING.-Payment 
of educational assistance allowance in the case of any eligible veteran 
or eligible person pursuing a program of education on less 
than a half-time basis shall be made in an amount computed for 
the entire quarter, semester, or term not later than the last day 
of the month immediately following the month in which certification is 
received from the educational institution that such veteran or person 
has enrolled in and is pursuing a program at such 
institution. Such lump sum payment shall be computed at the rate 
provided in section 3482(b) or 3532(a)(2) of this title, as applicable. 
(g) DETERMINATION OF ENROLLMENT, PURSUIT, AND ATTENDANCE.-(1) The 
Secretary may, pursuant to regulations which the 
Secretary shall prescribe, determine and define with respect to an 
eligible veteran and eligible person the following: 
(A) Enrollment in a course or program of education or 
training. 

Sec. 3680A CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 552 

(B) Pursuit of a course or program of education or training. 
(C) Attendance at a course or program of education or 
training. 
(2) The Secretary may withhold payment of benefits to an eligible 
veteran or eligible person until the Secretary receives such 
proof as the Secretary may require of enrollment in and satisfactory 
pursuit of a program of education by the eligible veteran or eligible 
person. The Secretary shall adjust the payment withheld, 
when necessary, on the basis of the proof the Secretary receives. 
(3) In the case of an individual other than an individual described in 
paragraph (4), the Secretary may accept the individualï¿½s 
monthly certification of enrollment in and satisfactory pursuit of a 
program of education as sufficient proof of the certified matters. 
(4) In the case of an individual who has received an accelerated 
payment of basic educational assistance under section 3014A of 
this title during an enrollment period for a program of education, 
the Secretary may accept the individualï¿½s certification of enrollment 
in and satisfactory pursuit of the program of education as 
sufficient proof of the certified matters if the certification is 
submitted after the enrollment period has ended. 
(Added Pub. L. 92-540, title II, Sec. 201, Oct. 24, 1972, 86 Stat. 
1076, Sec. 1780; amended Pub. L. 93-208, Dec. 28, 1973, 87 Stat. 907; 
Pub. L. 93-508, title II, Sec. 209, Dec. 3, 1974, 88 Stat. 1584; 
Pub. L. 94-502, title V, Sec. 505, 506, 513(a)(5)- (12), Oct. 15, 1976, 
90 Stat. 2400, 2402, 2403; Pub. L. 96-466, title III, Sec. 341, 
342, title VI, Sec. 601(c), (d), 602(c), Oct. 17, 1980, 94 Stat. 2198, 
2208, 2209; Pub. L. 97-35, title XX, Sec. 2003(c), Aug. 13, 1981, 95 
Stat. 782; Pub. L. 97-295, Sec. 4(52), Oct. 12, 1982, 96 Stat. 1308; 
Pub. L. 97-306, title II, Sec. 205(c), Oct. 14, 1982, 96 Stat. 1434; Pub. 
L. 99-576, title III, Sec. 315(a)(1), 316, title VII, Sec. 701(59), Oct. 
28, 1986, 100 Stat. 3274, 3296; Pub. L. 100-689, title I, Sec. 121(a), 
Nov. 18, 1988, 102 Stat. 4173; Pub. L. 101-237, title IV, Sec. 412(a), 
415(a), 423(b)(1), (2), Dec. 18, 1989, 103 Stat. 2085, 2086, 2092; 
Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; 
renumbered Sec. 3680 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-127, Sec. 6(a), Oct. 10, 1991, 
105 Stat. 622; Pub. L. 102-568, title III, Sec. 314, Oct. 29, 1992, 106 
Stat. 4333; Pub. L. 103-446, title VI, Sec. 605(a)(2)(B), title XII, 
Sec. 1201(i)(6), Nov. 2, 1994, 108 Stat. 4672, 4688; Pub. L. 106-419, 
title I, Sec. 121(a), Nov. 1, 2000, 114 Stat. 1833; Pub. L. 107-103, 
title I, Sec. 104(b), Dec. 27, 2001, 115 Stat. 981; 
Pub. L. 109-233, title V, Sec. 503(8)(A), June 15, 2006, 120 Stat. 416.) 
ï¿½ 3680A. Disapproval of enrollment in certain courses 

(a) The Secretary shall not approve the enrollment of an eligible 
veteran in- 
(1) any bartending course or personality development 
course; 
(2) any sales or sales management course which does not 
provide specialized training within a specific vocational field; 
(3) any type of course which the Secretary finds to be avocational or 
recreational in character (or the advertising for 
which the Secretary finds contains significant avocational or 
recreational themes) unless the veteran submits justification 
showing that the course will be of bona fide use in the pursuit 
of the veteranï¿½s present or contemplated business or occupation; or 
(4) any independent study program except an accredited 
independent study program (including open circuit television) 
leading (A) to a standard college degree, or (B) to a certificate 

553 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3680A 

that reflects educational attainment offered by an institution of 
higher learning. 

(b) Except to the extent otherwise specifically provided in this 
title or chapter 106 of title 10, the Secretary shall not approve the 
enrollment of an eligible veteran in any course of flight training 
other than one given by an educational institution of higher learning 
for credit toward a standard college degree the eligible veteran 
is seeking. 
(c) The Secretary shall not approve the enrollment of an eligible 
veteran in any course to be pursued by radio. 
(d)(1) Except as provided in paragraph (2) of this subsection, 
the Secretary shall not approve the enrollment of any eligible veteran, 
not already enrolled, in any course for any period during 
which the Secretary finds that more than 85 percent of the students 
enrolled in the course are having all or part of their tuition, 
fees, or other charges paid to or for them by the educational institution 
or by the Department of Veterans Affairs under this title or 
under chapter 106 of title 10. The Secretary may waive the requirements 
of this subsection, in whole or in part, if the Secretary determines, 
pursuant to regulations which the Secretary shall prescribe, 
it to be in the interest of the eligible veteran and the Federal 
Government. The provisions of this subsection shall not apply to any 
course offered by an educational institution if the total number of 
veterans and persons receiving assistance under this chapter or 
chapter 30, 31, 32, or 35 of this title or under chapter 106 of title 
10 who are enrolled in such institution equals 35 percent or less, 
or such other percent as the Secretary prescribes in regulations, of 
the total student enrollment at such institution (computed separately 
for the main campus and any branch or extension of such 
institution), except that the Secretary may apply the provisions of 
this subsection with respect to any course in which the Secretary 
has reason to believe that the enrollment of such veterans and persons 
may be in excess of 85 percent of the total student enrollment 
in such course. 

(2) Paragraph (1) of this subsection does not apply with respect 
to the enrollment of a veteran- 
(A) in a course offered pursuant to section 3019, 
3034(a)(3), 3234, or 3241(a)(2) of this title; 
(B) in a farm cooperative training course; or 
(C) in a course described in subsection (g). 
(e) The Secretary may not approve the enrollment of an eligible 
veteran in a course not leading to a standard college degree offered 
by a proprietary profit or proprietary nonprofit educational 
institution if- 
(1) the educational institution has been operating for less 
than two years; 
(2) the course is offered at a branch of the educational institution and 
the branch has been operating for less than two 
years; or 
(3) following either a change in ownership or a complete 
move outside its original general locality, the educational institution 
does not retain substantially the same faculty, student 
body, and courses as before the change in ownership or the 
move outside the general locality (as determined in accordance 

Sec. 3681 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 554 

with regulations the Secretary shall prescribe) unless the educational 
institution following such change or move has been in 
operation for at least two years. 

(f) The Secretary may not approve the enrollment of an eligible 
veteran in a course as a part of a program of education offered by 
an educational institution if the course is provided under contract 
by another educational institution or entity and- 
(1) the Secretary would be barred under subsection (e) 
from approving the enrollment of an eligible veteran in the 
course of the educational institution or entity providing the 
course under contract; or 
(2) the educational institution or entity providing the 
course under contract has not obtained approval for the course 
under this chapter. 
(g) Notwithstanding subsections (e) and (f)(1), the Secretary 
may approve the enrollment of an eligible veteran in a course approved 
under this chapter if the course is offered by an educational 
institution under contract with the Department of Defense or the 
Department of Homeland Security and is given on or immediately 
adjacent to a military base, Coast Guard station, National Guard 
facility, or facility of the Selected Reserve. 
(Added Pub. L. 102-568, title III, Sec. 313(a)(2), Oct. 29, 1992, 106 
Stat. 4331; Pub. L. 104-275, title I, Secs. 103(a)(2), (b), 104(c), 
Oct. 9, 1996, 110 Stat. 3326, 3327; Pub. L. 105-114, title IV, Sec. 
401(d), (e), Nov. 21, 1997, 111 Stat. 2293; Pub. L. 105-368, title X, 
Sec. 1005(b)(9), Nov. 11, 1998, 112 Stat. 3365; Pub. L. 107-103, 
title I, Sec. 111(a), Dec. 27, 2001, 115 Stat. 986; Pub. L. 107-296, 
title XVII, Sec. 1704(d), Nov. 25, 2002, 116 Stat. 2315.) 
ï¿½ 3681. Limitations on educational assistance 

(a) No educational assistance allowance granted under chapter 
30, 34, 35, or 36 of this title or 106 or 107 of title 10, or 
subsistence 
allowance granted under chapter 31 of this title shall be paid to 
any eligible person (1) who is on active duty and is pursuing a 
course of education which is being paid for by the Armed Forces 
(or by the Department of Health and Human Services in the case 
of the Public Health Service; or (2) who is attending a course of 
education or training paid for under chapter 41 of title 5. 
(b) No person may receive benefits concurrently under two or 
more of the provisions of law listed below: 
(1) Chapters 30, 31, 32, 34, 35, and 36 of this title. 
(2) Chapters 106 and 107 of title 10. 
(3) Section 903 of the Department of Defense Authorization Act, 1981 
(Public Law 96-342, 10 U.S.C. 2141 note). 
(4) The Hostage Relief Act of 1980 (Public Law 96-449, 5 
U.S.C. 5561 note). 
(5) The Omnibus Diplomatic Security and Antiterrorism 
Act of 1986 (Public Law 99-399). 
(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 21, Sec. 1781; 
amended Pub. L. 91-219, title II, Sec. 213(1), Mar. 26, 1970, 84 Stat. 
83; Pub. L. 92-540, title IV, Sec. 403(8), Oct. 24, 1972, 86 Stat. 1090; 
Pub. L. 94-502, title V, Sec. 513(a)(13), Oct. 15, 1976, 90 Stat. 2403; 
Pub. L. 96-466, title I, Sec. 102, title VIII, Sec. 801(e), Oct. 17, 
1980, 94 Stat. 2187, 2216; Pub. L. 97-295, Sec. 4(53), Oct. 12, 1982, 
96 Stat. 1309; Pub. L. 98-223, title II, Sec. 203(c)(1), Mar. 2, 1984, 
98 Stat. 41; Pub. L. 98- 525, title VII, Sec. 703(c), Oct. 19, 1984, 
98 Stat. 2564; Pub. L. 99-576, title III, Sec. 317, 321(9), Oct. 28, 
1986, 100 Stat. 3275, 3278; Pub. L. 101-237, title IV, Sec. 
423(a)(8)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3681, 
Pub. L. 102-83, 


555 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3683 

Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, title III, 
Sec. 315, Oct. 29, 
1992, 106 Stat. 4333.) 

ï¿½ 3682. Control by agencies of the United States 

Except as provided in section 3674A of this title, no department, 
agency, or officer of the United States, in carrying out this 
chapter, shall exercise any supervision or control, whatsoever, over 
any State approving agency, or State educational agency, or any 
educational institution. Nothing in this section shall be deemed to 
prevent any department, agency, or officer of the United States 
from exercising any supervision or control which such department, 
agency, or officer is authorized by law to exercise over any Federal 
educational institution or to prevent the furnishing of education 
under this chapter or chapter 34 or 35 of this title in any institution 
over which supervision or control is exercised by such other 
department, agency, or officer under authority of law. 

(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 21, Sec. 1782; 
amended Pub. L. 92-540, title IV, Sec. 403(9), Oct. 24, 1972, 86 Stat. 
1090; Pub. L. 100-323, Sec. 13(b)(6), May 20, 1988, 102 Stat. 574; 
renumbered Sec. 3682 and amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 
ï¿½ 3683. Conflicting interests 

(a) Every officer or employee of the Department of Veterans Affairs who 
has, while such an officer or employee, owned any interest in, or 
received any wages, salary, dividends, profits, gratuities, 
or services from, any educational institution operated for profit in 
which an eligible person or veteran was pursuing a program of education 
or course under this chapter or chapter 34 or 35 of this title 
shall be immediately dismissed from such officerï¿½s or employeeï¿½s office 
or employment. 
(b) If the Secretary finds that any person who is an officer or 
employee of a State approving agency has, while such person was 
such an officer or employee, owned any interest in, or received any 
wages, salary, dividends, profits, gratuities, or services from, an 
educational institution operated for profit in which an eligible person 
or veteran was pursuing a program of education or course 
under this chapter or chapter 34 or 35 of this title, the Secretary 
shall discontinue making payments under section 3674 of this title 
to such State approving agency unless such agency shall, without 
delay, take such steps as may be necessary to terminate the employment of 
such person and such payments shall not be resumed 
while such person is an officer or employee of the State approving 
agency, or State department of veteransï¿½ affairs or State department of 
education. 
(c) A State approving agency shall not approve any course offered by an 
educational institution operated for profit, and, if any 
such course has been approved, shall disapprove each such course, 
if it finds that any officer or employee of the Department of Veterans 
Affairs or the State approving agency owns an interest in, or 
receives any wages, salary, dividends, profits, gratuities, or services 
from, such institution. 
(d) The Secretary may, after reasonable notice and public hearings, 
waive in writing the application of this section in the case of 
any officer or employee of the Department of Veterans Affairs or 
of a State approving agency, if the Secretary finds that no det

Sec. 3684 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 556 

riment will result to the United States or to eligible persons or 
veterans by reasons of such interest or connection of such officer or 
employee. 

(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 22, Sec. 1783; 
amended Pub. L. 92-540, title IV, Sec. 403(10), Oct. 24, 1972, 86 Stat. 
1090; Pub. L. 94-502, 
title V, Sec. 513(a)(14)-(16), Oct. 15, 1976, 90 Stat. 2403; Pub. L. 
97-295, Sec. 4(54), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 101-237, 
title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3683 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3684. Reports by veterans, eligible persons, and institutions; 
reporting fee 

(a)(1) Except as provided in paragraph (2) of this subsection, 
the veteran or eligible person and the educational institution offering 
a course in which such veteran or eligible person is enrolled 
under chapter 31, 34,, 1 35, or 36 of this title shall, without delay, 
report to the Secretary, in the form prescribed by the Secretary, 
such enrollment and any interruption or termination of the education of 
each such veteran or eligible person. The date of such 
interruption or termination will be the last date of pursuit, or, in 
the case of correspondence training, the last date a lesson was 
serviced by a school. 

(2)(A) In the case of a program of independent study pursued 
on less than a half-time basis in an educational institution, the 
Secretary may approve a delay by the educational institution in 
reporting the enrollment or reenrollment of an eligible veteran or 
eligible person until the end of the term, quarter, or semester if the 
educational institution requests the delay and the Secretary determines 
that it is not feasible for the educational institution to monitor 
interruption or termination of the veteranï¿½s or eligible personï¿½s 
pursuit of such program. 

(B) An educational institution which, pursuant to subparagraph (A) of 
this paragraph, is delaying the reporting of the enrollment or 
reenrollment of a veteran shall provide the veteran with 
notice of the delay at the time that the veteran enrolls or reenrolls. 
(3)(A) Subject to subparagraph (B) of this paragraph, an educational 
institution offering courses on a term, quarter, or semester 
basis may certify the enrollment of a veteran who is not on active 
duty, or of an eligible person, in such courses for more than one 
term, quarter, or semester at a time, but not for a period extending 
beyond the end of a school year (including the summer enrollment 
period). 

(B) Subparagraph (A) of this paragraph shall not apply with 
respect to any term, quarter, or semester for which the veteran or 
eligible person is enrolled on a less than half-time basis and shall 
not be construed as restricting the Secretary from requiring that 
an educational institution, in reporting an enrollment for more 
than one term, quarter, or semester, specify the dates of any intervals 
within or between any such terms, quarters, or semesters. 
(b) The Secretary, prior to making payment of a reporting fee 
to an educational institution, as provided for in subsection (c) of 
this section, shall require such institution to certify that it has 
exercised reasonable diligence in determining whether such institu
1 So in original. 


557 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3684A 

tion or any course offered by such institution approved for the 
enrollment of veterans or eligible persons meets all of the applicable 
requirements of chapters 31, 34, 35, and 36 of this title and that 
it will, without delay, report any failure to meet any such requirement 
to the Secretary. 

(c) The Secretary may pay to any educational institution, or to 
the sponsor of a program of apprenticeship, furnishing education or 
training under either this chapter or chapter 31, 34, or 35 of this 
title, a reporting fee which will be in lieu of any other compensation 
or reimbursement for reports or certifications which such educational 
institution or joint apprenticeship training committee is 
required to submit to the Secretary by law or regulation. Such 
reporting fee shall be computed for each calendar year by multiplying 
$7 by the number of eligible veterans or eligible persons enrolled 
under this chapter or chapter 31, 34, or 35 of this title, or $11 in 
the case of those eligible veterans and eligible persons whose 
educational assistance checks are directed in care of each institution 
for temporary custody and delivery and are delivered at the time 
of registration as provided under section 3680(d)(4) of this title, 
during the calendar year. The reporting fee shall be paid to such 
educational institution or joint apprenticeship training committee 
as soon as feasible after the end of the calendar year for which it 
is applicable. No reporting fee payable to an educational institution 
under this subsection shall be subject to offset by the Secretary 
against any liability of such institution for any overpayment for 
which such institution may be administratively determined to be 
liable under section 3685 of this title unless such liability is not 
contested by such institution or has been upheld by a final decree 
of a court of appropriate jurisdiction. The reporting fee payable 
under this subsection shall be paid from amounts appropriated for 
readjustment benefits. 
(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 22, Sec. 1784; 
amended Pub. L. 90-77, title III, Sec. 308(a), Aug. 31, 1967, 81 Stat. 
189; Pub. L. 92-540, title III, Sec. 315, Oct. 24, 1972, 86 Stat. 1084; 
Pub. L. 93-508, title II, Sec. 210(2), Dec. 3, 1974, 88 Stat. 1585; 
Pub. L. 94-502, title V, Sec. 507, 508, 513(a)(17), Oct. 15, 1976, 90 
Stat. 2400, 2403; Pub. L. 95-202, title III, Sec. 304(a)(1), Nov. 23, 
1977, 91 Stat. 1442; Pub. L. 96-466, title III, Sec. 343(a), (b)(1), 
title VI, Sec. 601(e), Oct. 17, 1980, 94 Stat. 2198, 2208; Pub. L. 
97-295, Sec. 4(55), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 99-576, 
title III, Sec. 318, 319, Oct. 28, 1986, 100 Stat. 3275; Pub. 

L. 101-237, title IV, Sec. 416(a), 423(b)(1)(A), Dec. 18, 1989, 103 
Stat. 2086, 2092; renumbered Sec. 3684 and amended Pub. L. 102-83, Sec. 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-368, title II,
Sec. 201(a), (b), Nov. 11, 1998, 112 Stat. 3326; Pub. L. 106-419, title 
IV, Sec. 404(a)(7), Nov. 1, 2000, 114 Stat. 1865; Pub. 
L. 108-454, title I, Sec. 110(d), Dec. 10, 2004, 118 Stat. 3605.) 
ï¿½ 3684A. Procedures relating to computer matching program 

(a)(1) Notwithstanding section 552a(p) of title 5 and subject to 
paragraph (2) of this subsection, the Secretary may suspend, terminate, 
reduce, or make a final denial of any financial assistance or 
payment under an educational assistance program provided for in 
chapter 30 or 32 of this title or in chapter 106 of title 10 in the 
case of any individual, or take other adverse action against such 
individual, based on information produced by a matching program 
with the Department of Defense. 

(2) The Secretary may not take any action referred to in paragraph (1) 
of this subsection until- 

Sec. 3685 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 558 

(A) the individual concerned has been provided a written 
notice containing a statement of the findings of the Secretary 
based on the matching program, a description of the proposed 
action, and notice of the individualï¿½s right to contest such findings 
within 10 days after the date of the notice; and 
(B) the 10-day period referred to in subparagraph (A) of 
this paragraph has expired. 
(3) In computing the 10-day period referred to in paragraph (2) 
of this subsection, Saturdays, Sundays, and Federal holidays shall 
be excluded. 
(b) For the purposes of subsection (q) of section 552a of title 
5, compliance with the provisions of subsection (a) of this section 
shall be considered compliance with the provisions of subsection (p) 
of such section 552a. 
(c) For purposes of this section, the term ï¿½ï¿½matching programï¿½ï¿½ 
has the same meaning provided in section 552a(a)(8) of title 5. 
(Added Pub. L. 101-366, title II, Sec. 206(a), Aug. 15, 1990, 104 Stat. 
441, Sec. 1784A; renumbered Sec. 3684A, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3685. Overpayments to eligible persons or veterans 

(a) Whenever the Secretary finds that an overpayment has 
been made to a veteran or eligible person, the amount of such 
overpayment shall constitute a liability of such veteran or eligible 
person to the United States. 
(b) Whenever the Secretary finds that an overpayment has 
been made to a veteran or eligible person as the result of (1) the 
willful or negligent failure of an educational institution to report, 
as required under this chapter or chapter 34 or 35 of this title, to 
the Department of Veterans Affairs excessive absences from a 
course, or discontinuance or interruption of a course by the veteran 
or eligible person, or (2) the willful or negligent false certification 
by an educational institution, the amount of such overpayment 
shall constitute a liability of the educational institution to the 
United States. 
(c) Any overpayment referred to in subsection (a) or (b) of this 
section may be recovered, except as otherwise provided in the last 
sentence of section 3684(c) of this title, in the same manner as any 
other debt due the United States. 
(d) Any overpayment referred to in subsection (a) or (b) of this 
section may be waived as to a veteran or eligible person as provided in 
section 5302 of this title. Waiver of any such overpayment 
as to a veteran or eligible person shall in no way release any 
educational institution from liability under subsection (b) of this 
section. 
(e)(1) Any amount collected from a veteran or eligible person 
pursuant to this section shall be reimbursed to the educational 
institution which is liable pursuant to subsection (b) of this section 
to the extent that collection was made from the educational institution. 

(2) Nothing in this section or any other provision of this title 
shall be construed as (A) precluding the imposition of any civil or 
criminal liability under this title or any other law, or (B) requiring 

559 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3686 

any institution of higher learning to maintain daily attendance 
records for any course leading to a standard college degree. 

(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 22, Sec. 1785; 
amended Pub. L. 92-540, title IV, Sec. 403(11), Oct. 24, 1972, 86 Stat. 
1090; Pub. L. 95-202, title III, Sec. 304(a)(2), Nov. 23, 1977, 91 
Stat. 1442; Pub. L. 96-466, title III, Sec. 344, Oct. 17, 1980, 94 
Stat. 2199; Pub. L. 101-237, title IV, Sec. 423(b)(1), Dec. 18, 
1989, 103 Stat. 2092; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 
1991, 105 Stat. 239; renumbered Sec. 3685 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3686. Correspondence courses 

(a)(1) Each eligible veteran (as defined in section 3452(a)(1) 
and (2) of this title) and each eligible spouse or surviving spouse 
(as defined in section 3501(a)(1)(B), (C), (D), or (E) of this title) 
who enters into an enrollment agreement to pursue a program of 
education exclusively by correspondence shall be paid an educational 
assistance allowance computed at the rate of 55 percent of the 
established charge which the institution requires nonveterans to pay 
for the course or courses pursued by the eligible veteran or spouse 
or surviving spouse. The term ï¿½ï¿½established chargeï¿½ï¿½ as used herein 
means the charge for the course or courses determined on the basis 
of the lowest extended time payment plan offered by the institution 
and approved by the appropriate State approving agency or the actual 
cost to the veteran or spouse or surviving spouse, whichever 
is the lesser. Such allowance shall be paid quarterly on a pro rata 
basis for the lessons completed by the veteran or spouse or surviving 
spouse and serviced by the institution. 

(2) The period of entitlement of any veteran or spouse or surviving 
spouse who is pursuing any program of education exclusively by 
correspondence shall be charged with one month for each 
$376 which is paid to the veteran or spouse or surviving spouse as 
an educational assistance allowance for such course. 
(3) Notwithstanding any other provision of law unless enacted 
in express limitation of this paragraph, funds in the Department 
of Veterans Affairs readjustment benefits account shall be available 
for payments under paragraph (1) of this subsection for pursuit of 
a program of education exclusively by correspondence in which the 
veteran or spouse or surviving spouse enrolls after September 30, 
1981. 
(b) The enrollment agreement shall fully disclose the obligation 
of both the institution and the veteran or spouse or surviving 
spouse and shall prominently display the provisions for affirmance, 
termination, refunds, and the conditions under which payment of 
the allowance is made by the Secretary to the veteran or spouse 
or surviving spouse. A copy of the enrollment agreement shall be 
furnished to each such veteran or spouse or surviving spouse at the 
time such veteran or spouse or surviving spouse signs such agreement. 
No such agreement shall be effective unless such veteran or 
spouse or surviving spouse shall, after the expiration of five days 
after the enrollment agreement is signed, have signed and submitted to 
the Secretary a written statement, with a signed copy to 
the institution, specifically affirming the enrollment agreement. In 
the event the veteran or spouse or surviving spouse at any time 
notifies the institution of such veteranï¿½s or spouseï¿½s intention not to 
affirm the agreement in accordance with the preceding sentence, 

Sec. 3687 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 560 

the institution, without imposing any penalty or charging any fee 
shall promptly make a full refund of all amounts paid. 

(c) In the event a veteran or spouse or surviving spouse elects 
to terminate such veteranï¿½s or spouseï¿½s enrollment under an affirmed 
enrollment agreement, the institution may charge the veteran or spouse 
or surviving spouse a registration or similar fee not in excess of 
10 percent of the tuition for the course, or $50, whichever is less. 
Where the veteran or spouse or surviving spouse elects 
to terminate the agreement after completion of one or more but 
less than 25 percent of the total number of lessons comprising the 
course, the institution may retain such registration or similar fee 
plus 25 percent of the tuition for the course. Where the veteran or 
spouse or surviving spouse elects to terminate the agreement after 
completion of 25 percent but less than 50 percent of the lessons 
comprising the course, the institution may retain the full registration 
or similar fee plus 50 percent of the course tuition. If 50 percent or 
more of the lessons are completed, no refund of tuition is 
required. 
(Added Pub. L. 92-540, title III, Sec. 316(1), Oct. 24, 1972, 86 Stat. 
1084, Sec. 1786; amended Pub. L. 93-508, title I, Sec. 104(1), Dec. 3, 
1974, 88 Stat. 1580; Pub. L. 93-602, title II, Sec. 205(a), Jan. 2, 
1975, 88 Stat. 1958; Pub. L. 94-502, title V, Sec. 501(1), 513(a)(18), 
Oct. 15, 1976, 90 Stat. 2398, 2403; Pub. L. 95-202, title I, Sec. 
104(1), Nov. 23, 1977, 91 Stat. 1435; Pub. L. 96-466, title II, Sec. 
203(2), 213(2), title VI, Sec. 604, Oct. 17, 1980, 94 Stat. 2189, 
2191, 2209; Pub. L. 97-35, title XX, Sec. 2004(a), Aug. 13, 1981, 95 
Stat. 782; Pub. L. 97-174, Sec. 5(a), May 4, 1982, 96 Stat. 75; Pub. L. 
97-295, Sec. 4(56), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 98-543, 
title II, Sec. 204(1), Oct. 24, 1984, 98 Stat. 2742; Pub. L. 101-237 
title IV, Sec. 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3686 and amended Pub. 

L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
103-446, title VI, Sec. 605(a)(2)(C), Nov. 2, 1994, 108 Stat. 4672; 
Pub. L. 109-444, Sec. 3(c)(1), Dec. 21, 2006, 120 Stat. 3307; Pub. L. 
109-461, title III, Sec. 301(c)(1), title X, Sec. 1006(b), Dec. 22, 
2006, 120 Stat. 3427, 3468; Pub. L. 110-389, title III, Sec. 323, 
Oct. 10, 2008, 122 Stat. 4168.) 
ï¿½ 3687. Apprenticeship or other on-job training 

(a) An eligible veteran (as defined in section 3452(a)(1) of this 
title) or an eligible person (as defined in section 3501(a) of this 
title) shall be paid a training assistance allowance as prescribed by 
subsection (b) of this section while pursuing a full-time- 
(1) program of apprenticeship approved by a State approving agency as 
meeting the standards of apprenticeship published by the Secretary of 
Labor pursuant to section 2 of the Act of August 16, 1937 (popularly 
known as the ï¿½ï¿½National Apprenticeship Actï¿½ï¿½) (29 U.S.C. 50a), or 
(2) program of other on-job training approved under provi
sions of section 3677 of this title, 
subject to the conditions and limitations of chapters 34 and 35 of 
this title with respect to educational assistance. 

(b)(1) The monthly training assistance allowance of an eligible 
veteran pursuing a program described under subsection (a) shall be 
as follows: 


561 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3687 

Column I Column II Column III Column IV Column V 
Periods of training No dependents One dependent Two dependents More 
than two dependents 
First 6 months 
Second 6 months 
Third 6 months 
Fourth and any succeeding 6-month 
periods 
$274 
205 
136 
68 
$307 
239 
171 
101 
$336 
267 
198 
131 
The amount in column IV, plus the 
following for each 
dependent in excess of two: 
$14 
14 
14 
14 

(2) The monthly training assistance allowance of an eligible 
person pursuing a program described under subsection (a) shall be 
$574 for the first six months, $429 for the second six months, $285 
for the third six months, and $144 for the fourth and any succeeding 
six-month period of training. 
(3) In any month in which an eligible veteran or person pursuing a 
program of apprenticeship or a program of other on-job 
training fails to complete one hundred and twenty hours of training 
in such month, the monthly training assistance allowance set forth 
in subsection (b)(1) or (2) of this section, as applicable, shall be 
reduced proportionately in the proportion that the number of hours 
worked bears to one hundred and twenty hours rounded off to the 
nearest eight hours. 
(c) For the purpose of this chapter, the terms ï¿½ï¿½program of 
apprenticeshipï¿½ï¿½ and ï¿½ï¿½program of other on-job trainingï¿½ï¿½ shall have the 
same meaning as ï¿½ï¿½program of educationï¿½ï¿½; and the term ï¿½ï¿½training 
assistance allowanceï¿½ï¿½ shall have the same meaning as ï¿½ï¿½educational 
assistance allowanceï¿½ï¿½ as set forth in chapters 34 and 35 of this 
title. 
(d) With respect to any fiscal year, the Secretary shall provide 
a percentage increase (rounded to the nearest dollar) in the rates 
payable under subsection (b)(2) equal to the percentage by which- 
(1) the Consumer Price Index (all items, United States city 
average) for the 12-month period ending on the June 30 preceding the 
beginning of the fiscal year for which the increase 
is made, exceeds 
(2) such Consumer Price Index for the 12-month period 
preceding the 12-month period described in paragraph (1). 
(e)(1) For each month that an individual (as defined in para
graph (3)) is paid a training assistance allowance under subsection 
(a), the entitlement of the individual shall be charged at a percentage 
rate (rounded to the nearest percent) that is equal to the ratio 
of- 

(A) the training assistance allowance for the month involved, to (B) 
the monthly educational assistance allowance 
otherwise payable for full-time enrollment in an educational 
institution.. 
(2) For any month in which an individual fails to complete 120 
hours of training, the entitlement otherwise chargeable under para

Sec. 3688 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 562 

graph (1) shall be reduced in the same proportion as the monthly 
training assistance allowance payable is reduced under subsection 
(b)(3). 

(3) In this section, the term ï¿½ï¿½individualï¿½ï¿½ means- 
(A) an eligible veteran who is entitled to monthly educational 
assistance allowances payable under section 3015(e) of 
this title, or 
(B) an eligible person who is entitled to monthly educational 
assistance allowances payable under section 3532(a) of 
this title, as the case may be. 
(Added Pub. L. 92-540, title III, Sec. 316(1), Oct. 24, 1972, 86 Stat. 
1085, Sec. 1787; amended Pub. L. 93-508, title I, Sec. 104(2), (3), 
Dec. 3, 1974, 88 Stat. 1580; Pub. 

L. 93-602, title II, Sec. 205(b), Jan. 2, 1975, 88 Stat. 1959; Pub. L. 
94-502, title V, Sec. 501(2), Oct. 15, 1976, 90 Stat. 2398; Pub. L. 
95-202, title I, Sec. 104(2), Nov. 23, 1977, 91 Stat. 1435; Pub. L. 
96-466, title II, Sec. 203(3), 213(3), Oct. 17, 1980, 94 Stat. 2189, 
2191; Pub. L. 97-295, Sec. 4(57), Oct. 12, 1982, 96 Stat. 1309; Pub. 
L. 98-543, title II, Sec. 204(2), Oct. 24, 1984, 98 Stat. 2742; Pub. L. 
101-237, title IV, Sec. 403(b), Dec. 18, 1989, 103 Stat. 2080; 
renumbered Sec. 3687 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-178, title VIII, Sec. 8210(d), 
as added Pub. L. 105-206, title IX, Sec. 9014(b), July 22, 1998, 112 
Stat. 866; Pub. L. 106-419, title I, Sec. 111(d), (f)(2), Nov. 1, 2000, 
114 Stat. 1830, 1831; Pub. L. 107-103, title I, Sec. 102(d), Dec. 27, 
2001, 115 Stat. 978; Pub. L. 108-183, title III, Sec. 302(d), Dec. 16, 
2003, 117 Stat. 2659; Pub. L. 108-454, 
title I, Sec. 102(a), Dec. 10, 2004, 118 Stat. 3600.) 
ï¿½ 3688. Measurement of courses 

(a) For the purposes of this chapter and chapters 34 and 35 of 
this title- 
(1) an institutional trade or technical course offered on a 
clock-hour basis, not leading to a standard college degree, involving 
shop practice as an integral part thereof, shall be considered a 
full-time course when a minimum of 22 hours per 
week of attendance (excluding supervised study) is required, 
with no more than 2 1/2 hours of rest periods per week allowed; 
(2) an institutional course offered on a clock-hour basis, 
not leading to a standard college degree, in which theoretical 
or classroom instruction predominates shall be considered a 
full-time course when a minimum of 18 hours per week net of 
instruction (excluding supervised study but which may include 
customary intervals not to exceed 10 minutes between hours of 
instruction) is required; 
(3) an academic high school course requiring sixteen units 
for a full course shall be considered a full-time course when (A) 
a minimum of four units per year is required or (B) an individual is 
pursuing a program of education leading to an accredited high school 
diploma at a rate which, if continued, would 
result in receipt of such a diploma in four ordinary school 
years. For the purpose of subclause (A) of this clause, a unit 
is defined to be not less than one hundred and twenty sixty-
minute hours or their equivalent of study in any subject in one 
academic year; 
(4) an institutional undergraduate course offered by a college or 
university on a standard quarter-or semester-hour 
basis, other than a course pursued as part of a program of education 
beyond the baccalaureate level, shall be considered a 

563 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3688 

full-time course when a minimum of fourteen semester hours 
per semester or the equivalent thereof (including such hours 
for which no credit is granted but which are required to be 
taken to correct an educational deficiency and which the educational 
institution considers to be quarter or semester hours 
for other administrative purposes), for which credit is granted 
toward a standard college degree, is required, except that 
where such college or university certifies, upon the request of 
the Secretary, that (A) full-time tuition is charged to all 
undergraduate students carrying a minimum of less than fourteen 
such semester hours or the equivalent thereof, or (B) all undergraduate 
students carrying a minimum of less than fourteen 
such semester hours or the equivalent thereof, are considered 
to be pursuing a full-time course for other administrative purposes, 
then such an institutional undergraduate course offered 
by such college or university with such minimum number of 
such semester hours shall be considered a full-time course, but 
in the event such minimum number of semester hours is less 
than twelve semester hours or the equivalent thereof, then 
twelve semester hours or the equivalent thereof shall be considered a 
full-time course; 

(5) a program of apprenticeship or a program of other on-
job training shall be considered a full-time program when the 
eligible veteran or person is required to work the number of 
hours constituting the standard workweek of the training establishment, 
but a workweek of less than thirty hours shall not 
be considered to constitute full-time training unless a lesser 
number of hours has been established as the standard workweek for the 
particular establishment through bona fide collective bargaining; 
(6) an institutional course offered as part of a program of 
education, not leading to a standard college degree, under section 
3034(a)(3), 3241(a)(2), or 3533(a) of this title shall be considered 
a full-time course on the basis of measurement criteria 
provided in clause (2), (3), or (4) of this subsection as determined 
by the educational institution; and 
(7) an institutional course not leading to a standard college 
degree offered by an educational institution on a standard 
quarter-or semester-hour basis shall be measured as full time 
on the same basis as provided in paragraph (4) of this subsection, 
but if the educational institution offering the course is 
not an institution of higher learning, then in no event shall 
such course be considered full time when it requires less than 
the minimum weekly hours of attendance required for full time 
by paragraph (1) or (2) of this subsection, as appropriate. 
(b) The Secretary shall define part-time training in the case of 
the types of courses referred to in subsection (a), and shall define 
full-time and part-time training in the case of all other types of 
courses pursued under this chapter, chapter 30, 32, 33, or 35 of 
this title, or chapter 106 of title 10. 
(Added Pub. L. 92-540, title III, Sec. 316(2), Oct. 24, 1972, 86 
Stat. 1086, Sec. 1788; amended Pub. L. 93-508, title II, Sec. 211, 
Dec. 3, 1974, 88 Stat. 1585; Pub. L. 94-502, title V, Sec. 509(a), 
Oct. 15, 1976, 90 Stat. 2400; Pub. L. 95-202, title III, Sec. 
304(a)(3), Nov. 23, 1977, 91 Stat. 1442; Pub. L. 96-466, title III, 
Sec. 345, title VI, 


Sec. 3689 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 564 

Sec. 601(f), Oct. 17, 1980, 94 Stat. 2199, 2208; Pub. L. 97-295, 
Sec. 4(58), Oct. 12, 
1982, 96 Stat. 1309; Pub. L. 99-576, title III, Sec. 315(a)(2), (b), 
Oct. 28, 1986, 100 Stat. 3274; Pub. L. 100-322, title III, Sec. 321(a), 
May 20, 1988, 102 Stat. 535; Pub.

L. 101-237, title IV, Sec. 413(a), 417, 423(b)(1)(A), Dec. 18, 1989, 
103 Stat. 2085, 2086, 2092; renumbered Sec. 3688 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
102-568, title III, Sec. 316(a), Oct. 29, 1992, 106 Stat. 4333; 
Pub. L. 103-446, title VI, Sec. 607, title XII, Sec. 1201(e)(12), Nov. 
2, 1994, 108 Stat. 4672, 4685; Pub. L. 110-252, title V, Sec. 
5003(b)(2)(A)(ii), June 30, 2008, 122 Stat. 2375 (conforming 
amendment effective August 1, 2009).) ï¿½ 3689. Approval requirements 
for licensing and certification testing 

(a) IN GENERAL.-(1) No payment may be made for a licensing 
or certification test described in section 3452(b) or 3501(a)(5) of 
this title unless the Secretary determines that the requirements of 
this section have been met with respect to such test and the 
organization or entity offering the test. The requirements of approval 
for tests and organizations or entities offering tests shall be in 
accordance with the provisions of this chapter and chapters 30, 32, 33, 
34, and 35 of this title and with regulations prescribed by the 
Secretary to carry out this section. 
(2) To the extent that the Secretary determines practicable, 
State approving agencies may, in lieu of the Secretary, approve 
licensing and certification tests, and organizations and entities 
offering such tests, under this section. 
(b) REQUIREMENTS FOR TESTS.-(1) Subject to paragraph (2), a 
licensing or certification test is approved for purposes of this 
section only if- 
(A) the test is required under Federal, State, or local law 
or regulation for an individual to enter into, maintain, or advance 
in employment in a predetermined and identified vocation or 
profession; or (B) the Secretary determines that the test is generally 
accepted, in accordance with relevant government, business, or 
industry standards, employment policies, or hiring practices, as 
attesting to a level of knowledge or skill required to qualify to 
enter into, maintain, or advance in employment in a predetermined and 
identified vocation or profession. (2) A licensing or certification 
test offered by a State, or a political subdivision of a State, is 
deemed approved by the Secretary for 
purposes of this section. 
(c) REQUIREMENTS FOR ORGANIZATIONS OR ENTITIES OFFERING 
TESTS.-(1) Each organization or entity that is not an entity of the 
United States, a State, or political subdivision of a State, that 
offers a licensing or certification test for which payment may be 
made under chapter 30, 32, 33, 34, or 35 of this title and that 
meets the following requirements, shall be approved by the Secretary 
to offer such test: 
(A) The organization or entity certifies to the Secretary 
that the licensing or certification test offered by the organization 
or entity is generally accepted, in accordance with relevant 
government, business, or industry standards, employment policies, or 
hiring practices, as attesting to a level of knowledge or 
skill required to qualify to enter into, maintain, or advance in 
employment in a predetermined and identified vocation or profession. 

565 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3689 

(B) The organization or entity is licensed, chartered, or incorporated 
in a State and has offered such test, or a test to certify or license 
in a similar or related occupation, for a minimum of two years before 
the date on which the organization 
or entity first submits to the Secretary an application for approval 
under this section. 
(C) The organization or entity employs, or consults with, 
individuals with expertise or substantial experience with respect to 
all areas of knowledge or skill that are measured by 
the test and that are required for the license or certificate 
issued. 
(D) The organization or entity has no direct financial interest in- 
(i) the outcome of the test; or 
(ii) organizations that provide the education or training of candidates 
for licenses or certificates required for vocations or professions. 
(E) The organization or entity maintains appropriate 
records with respect to all candidates who take the test for a 
period prescribed by the Secretary, but in no case for a period 
of less than three years. 
(F)(i) The organization or entity promptly issues notice of 
the results of the test to the candidate for the license or certificate. 

(ii) The organization or entity has in place a process to review 
complaints submitted against the organization or entity 
with respect to the test or the process for obtaining a license 
or certificate required for vocations or professions. 
(G) The organization or entity furnishes to the Secretary 
such information with respect to the test as the Secretary requires to 
determine whether payment may be made for the test 
under chapter 30, 32, 33, 34, or 35 of this title, including personal 
identifying information, fee payment, and test results. 
Such information shall be furnished in the form prescribed by 
the Secretary. 
(H) The organization or entity furnishes to the Secretary 
the following information: 
(i) A description of the licensing or certification test offered by the 
organization or entity, including the purpose 
of the test, the vocational, professional, governmental, and 
other entities that recognize the test, and the license or 
certificate issued upon successful completion of the test. 
(ii) The requirements to take the test, including the 
amount of the fee charged for the test and any prerequisite 
education, training, skills, or other certification. 
(iii) The period for which the license or certificate 
awarded upon successful completion of the test is valid, 
and the requirements for maintaining or renewing the license or 
certificate. 
(I) Upon request of the Secretary, the organization or entity furnishes 
such information to the Secretary that the Secretary determines 
necessary to perform an assessment of- 

Sec. 3690 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 566 

(i) the test conducted by the organization or entity as 
compared to the level of knowledge or skills that a license 
or certificate attests; and 
(ii) the applicability of the test over such periods of 
time as the Secretary determines appropriate. 
(2) With respect to each organization or entity that is an entity 
of the United States, a State, or political subdivision of a State, 
that offers a licensing or certification test for which payment may 
be made under chapters 30, 32, 34, or 35 of this title, the following 
provisions of paragraph (1) shall apply to the entity: subparagraphs 
(E), (F), (G), and (H). 
(d) ADMINISTRATION.-Except as otherwise specifically provided 
in this section or chapter 30, 32, 33, 34, or 35 of this title, in 
implementing this section and making payment under any such chapter 
for a licensing or certification test, the test is deemed to be a 
ï¿½ï¿½courseï¿½ï¿½ and the organization or entity that offers such test is 
deemed to be an ï¿½ï¿½institutionï¿½ï¿½ or ï¿½ï¿½educational institutionï¿½ï¿½, 
respectively, as those terms are applied under and for purposes of 
sections 3671, 3673, 3674, 3678, 3679, 3681, 3682, 3683, 3685, 3690, 
and 3696 of this title. 
(e) PROFESSIONAL CERTIFICATION AND LICENSURE ADVISORY 
COMMITTEE.-(1) There is established within the Department a 
committee to be known as the Professional Certification and Licensure 
Advisory Committee (hereinafter in this section referred to as 
the ï¿½ï¿½Committeeï¿½ï¿½). 
(2) The Committee shall advise the Secretary with respect to 
the requirements of organizations or entities offering licensing and 
certification tests to individuals for which payment for such tests 
may be made under chapter 30, 32, 33, 34, or 35 of this title, and 
such other related issues as the Committee determines to be appropriate. 
(3)(A) The Secretary shall appoint seven individuals with expertise in 
matters relating to licensing and certification tests to 
serve as members of the Committee. 

(B) The Secretary of Labor and the Secretary of Defense shall 
serve as ex officio members of the Committee. 
(C) A vacancy in the Committee shall be filled in the manner 
in which the original appointment was made. 
(4)(A) The Secretary shall appoint the chairman of the Committee. 

(B) The Committee shall meet at the call of the chairman. 
(5) The Committee shall terminate December 31, 2006. 
(Added Pub. L. 106-419, title I, Sec. 122(c)(1), Nov. 1, 2000, 114 
Stat. 1835; amended Pub. L. 107-330, title III, Sec. 308(d), Dec. 
6, 2002, 116 Stat. 2828; Pub. L. 110- 
252, title V, Sec. 5003(b)(2)(A)(iii), June 30, 2008, 122 Stat. 
2375, 2378 (conforming 
amendment effective August 1, 2009).) 

ï¿½ 3690. Overcharges by educational institutions; discontinuance of 
allowances; examination of records; false 
or misleading statements 

(a) OVERCHARGES BY EDUCATIONAL INSTITUTIONS.-If the Secretary finds 
that an educational institution has- 
(1) charged or received from any eligible veteran or eligible 
person pursuing a program of education under this chapter or 

567 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3690 

chapter 34 or 35 of this title any amount for any course in excess of 
the charges for tuition and fees which such institution 
requires similarly circumstanced nonveterans not receiving assistance 
under such chapters who are enrolled in the same 
course to pay, or 

(2) instituted, after October 24, 1972, a policy or practice 
with respect to the payment of tuition, fees, or other charges 
in the case of eligible veterans and the Secretary finds that the 
effect of such policy or practice substantially denies to veterans 
the benefits of the advance allowances under such section, 
the Secretary may disapprove such educational institution for the 
enrollment of any eligible veteran or eligible person not already 
enrolled therein under this chapter or chapter 31, 34, or 35 of this 
title. 

(b) DISCONTINUANCE OF ALLOWANCES.-(1) The Secretary may 
discontinue the educational assistance allowance of any eligible 
veteran or eligible person if the Secretary finds that the program 
of education or any course in which the veteran or person is enrolled 
fails to meet any of the requirements of this chapter or chapter 34 
or 35 of this title, or if the Secretary finds that the educational 
institution offering such program or course has violated 
any provision of this chapter or chapter 34 or 35 of this title, or 
fails to meet any of the requirements of such chapters. 
(2) Except as provided in paragraph (3) of this subsection, any 
action by the Secretary under paragraph (1) of this subsection to 
discontinue (including to suspend) assistance provided to any eligible 
veteran or eligible person under this chapter or chapter 31, 32, 
34, or 35 of this title shall be based upon evidence that the veteran 
or eligible person is not or was not entitled to such assistance. 
Whenever the Secretary so discontinues any such assistance, the 
Secretary shall concurrently provide written notice to such veteran 
or person of such discontinuance and that such veteran or person 
is entitled thereafter to a statement of the reasons for such action 
and an opportunity to be heard thereon. 
(3)(A) The Secretary may suspend educational assistance to eligible 
veterans and eligible persons already enrolled, and may disapprove 
the enrollment or reenrollment of any eligible veteran or 
eligible person, in any course as to which the Secretary has evidence 
showing a substantial pattern of eligible veterans or eligible 
persons, or both, who are receiving such assistance by virtue of 
their enrollment in such course but who are not entitled to such 
assistance because (i) the course approval requirements of this 
chapter are not being met, or (ii) the educational institution 
offering such course has violated one or more of the recordkeeping or 
reporting requirements of this chapter or chapter 30, 32, 33, 34, or 
35 of this title. 

(B) Action may be taken under subparagraph (A) of this paragraph only 
after- 
(i) the Secretary provides to the State approving agency 
concerned and the educational institution concerned written 
notice of any such failure to meet such approval requirements 
and any such violation of such recordkeeping or reporting requirements; 

Sec. 3691 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 568 

(ii) such institution refuses to take corrective action or 
does not within 60 days after such notice (or within such 
longer period as the Secretary determines is reasonable and 
appropriate) take corrective action; and 
(iii) the Secretary, not less than 30 days before taking action under 
such subparagraph, provides to each eligible veteran and eligible 
person already enrolled in such course written notice of the 
Secretaryï¿½s intent to take such action (and the 
reasons therefor) unless such corrective action is taken within 
such 60 days (or within such longer period as the Secretary 
has determined is reasonable and appropriate), and of the date 
on which the Secretary intends to take action under such subparagraph. 
(c) EXAMINATION OF RECORDS.-Notwithstanding any other 
provision of law, the records and accounts of educational institutions 
pertaining to eligible veterans or eligible persons who received 
educational assistance under this chapter or chapter 31, 32, 
34, or 35 of this title, as well as the records of other students 
which the Secretary determines necessary to ascertain institutional 
compliance with the requirements of such chapters, shall be available 
for examination by duly authorized representatives of the Government. 
(d) FALSE OR MISLEADING STATEMENTS.-Whenever the Secretary finds that 
an educational institution has willfully submitted 
a false or misleading claim, or that a veteran or person, with the 
complicity of an educational institution, has submitted such a 
claim, the Secretary shall make a complete report of the facts of 
the case to the appropriate State approving agency and, where 
deemed advisable, to the Attorney General of the United States for 
appropriate action. 
(Added Pub. L. 92-540, title III, Sec. 316(2), Oct. 24, 1972, 86 
Stat. 1088, Sec. 1790; amended Pub. L. 94-502, title V, Sec. 510, 
513(a)(19), Oct. 15, 1976, 90 Stat. 2401, 2403; Pub. L. 95-202, 
title III, Sec. 306, Nov. 23, 1977, 91 Stat. 1445; Pub. L. 96- 
466, title VIII, Sec. 801(f), Oct. 17, 1980, 94 Stat. 2216; Pub. L. 
97-295, Sec. 4(59), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 97-306, 
title II, Sec. 207, Oct. 14, 1982, 96 Stat. 1435; Pub. L. 101-237, 
title IV, Sec. 423(a)(9), (b)(1)(A), (2), Dec. 18, 1989, 103 
Stat. 2092; renumbered Sec. 3690, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 102-86, title V, Sec. 506(b)(1), Aug. 
14, 1991, 105 Stat. 426; Pub. L. 109-233, title V, Sec. 503(8)(A), 
June 15, 2006, 120 Stat. 416; Pub. L. 110-252, title V, Sec. 
5003(b)(2)(A)(iv), June 30, 2008, 122 Stat. 2375 (conforming 
amendment effective August 1, 2009).) 

ï¿½ 3691. Change of program 

(a) Except as provided in subsections (b) and (c) of this section, 
each eligible veteran and eligible person may make not more than 
one change of program of education, but an eligible veteran or 
eligible person whose program has been interrupted or discontinued 
due to the veteranï¿½s or personï¿½s own misconduct, the veteranï¿½s or 
personï¿½s own neglect, or the veteranï¿½s or personï¿½s own lack of 
application shall not be entitled to any such change. 
(b) The Secretary, in accordance with procedures that the Secretary 
may establish, may approve a change other than a change 
under subsection (a) of this section (or an initial change in the 
case of a veteran or person not eligible to make a change under 
subsection (a)) in program if the Secretary finds that- 

569 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3692 

(1) the program of education which the eligible veteran or 
eligible person proposes to pursue is suitable to the veteranï¿½s 
or personï¿½s aptitudes, interests, and abilities; and 
(2) in any instance where the eligible veteran or eligible 
person has interrupted, or failed to progress in, the veteranï¿½s 
or personï¿½s program due to the veteranï¿½s or personï¿½s own misconduct, 
the veteranï¿½s or personï¿½s own neglect, or the veteranï¿½s 
or personï¿½s own lack of application, there exists a reasonable 
likelihood with respect to the program which the eligible veteran or 
eligible person proposes to pursue that there will not 
be a recurrence of such an interruption or failure to progress. 
(c) The Secretary may also approve additional changes in program if 
the Secretary finds such changes are necessitated by circumstances 
beyond the control of the eligible veteran or eligible 
person. 
(d)(1) For the purposes of this section, the term ï¿½ï¿½change of 
program of educationï¿½ï¿½ shall not be deemed to include a change by a 
veteran or eligible person from the pursuit of one program to the 
pursuit of another program if- 

(A) the veteran or eligible person has successfully completed the 
former program; 
(B) the program leads to a vocational, educational, or professional 
objective in the same general field as the former program; 
(C) the former program is a prerequisite to, or generally 
required for, pursuit of the subsequent program; 
(D) in the case of a change from the pursuit of a subsequent program 
to the pursuit of a former program, the veteran 
or eligible person resumes pursuit of the former program without loss 
of credit or standing in the former program; or 
(E) the change from the program to another program is at 
the same educational institution and such educational institution 
determines that the new program is suitable to the aptitudes, 
interests, and abilities of the veteran or eligible person 
and certifies to the Secretary the enrollment of the veteran or 
eligible person in the new program. 
(2) A veteran or eligible person undergoing a change from one 
program of education to another program of education as described 
in paragraph (1)(E) shall not be required to apply to the Secretary 
for approval of such change. 
(Added Pub. L. 92-540, title III, Sec. 316(2), Oct. 24, 1972, 86 Stat. 
1089, Sec. 1791; amended Pub. L. 94-502, title V, Sec. 513(a)(20), 
Oct. 15, 1976, 90 Stat. 2403; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 101-366, title II, 
Sec. 208(a), Aug. 15, 1990, 104 Stat. 443; renumbered Sec. 3691, Pub. 
L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-568, 
title III, Sec. 317, Oct. 29, 1992, 106 Stat. 4334; Pub. L. 110-389, 
title III, Sec. 324, Oct. 10, 2008, 
122 Stat. 4168.) 
ï¿½ 3692. Advisory committee 

(a) There shall be a Veteransï¿½ Advisory Committee on Education formed 
by the Secretary which shall be composed of persons 
who are eminent in their respective fields of education, labor, and 
management and of representatives of institutions and establishments 
furnishing education to eligible veterans or persons enrolled 
under chapter 30, 32, 33, or 35 of this title and chapter 1606 of 

Sec. 3693 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 570 

title 10. The committee shall also, to the maximum extent practicable, 
include veterans representative of World War II, the Korean conflict 
era, the post-Korean conflict era, the Vietnam era, the post-Vietnam 
era, and the Persian Gulf War. The Assistant Secretary of Education for 
Postsecondary Education (or such other comparable official of the 
Department of Education as the Secretary of Education may designate) 
and the Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training shall be ex officio members of the advisory committee. 

(b) The Secretary shall consult with and seek the advice of the 
committee from time to time with respect to the administration of 
this chapter, chapters 30, 32, 33, and 35 of this title, and chapter 
1606 of title 10. The committee may make such reports and 
recommendations as it considers desirable to the Secretary and the 
Congress. 
(c) The committee shall remain in existence until December 31, 
2009. 
(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 23, Sec. 1788; 
renumbered Sec. 1792 and amended Pub. L. 92-540, title III, Sec. 
316(2), (3), Oct. 24, 1972, 86 Stat. 1086, 1089; Pub. L. 96-466, title 
III, Sec. 346, Oct. 17, 1980, 94 Stat. 2200; Pub. L. 99-576, title III, 
Sec. 304, Oct. 28, 1986, 100 Stat. 3269; Pub. L. 100-689, title I, Sec. 
123, Nov. 18, 1988, 102 Stat. 4174; Pub. L. 101-237, title IV, Sec. 
423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 102-25, title III, 
Sec. 338, Apr. 6, 1991, 105 Stat. 91; Pub. L. 102-54, Sec. 14(c)(7), 
June 13, 1991, 105 Stat. 285; renumbered Sec. 3692, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. 

L. 103-210, Sec. 2(d), Dec. 20, 1993, 107 Stat. 2497; Pub. L. 103-446, 
title VI, Sec. 608, Nov. 2, 1994, 108 Stat. 4672; Pub. L. 108-183, 
title III, Sec. 307, Dec. 16, 2003, 117 Stat. 2661; Pub. L. 110-252, 
title V, Sec. 5003(b)(2)(A)(v), June 30, 2008, 122 
Stat. 2375 (conforming amendment effective August 1, 2009).) 
ï¿½ 3693. Compliance surveys 

(a) Except as provided in subsection (b) of this section, the Secretary 
shall conduct an annual compliance survey of each institution offering 
one or more courses approved for the enrollment of eligible veterans 
or persons if at least 300 veterans or persons are enrolled in such 
course or courses under provisions of this title or if 
any such course does not lead to a standard college degree. Such 
compliance survey shall be designed to ensure that the institution 
and approved courses are in compliance with all applicable provisions 
of chapters 30 through 36 of this title. The Secretary shall 
assign at least one education compliance specialist to work on 
compliance surveys in any year for each 40 compliance surveys required 
to be made under this section for such year. 
(b) The Secretary may waive the requirement in subsection (a) 
of this section for an annual compliance survey with respect to an 
institution if the Secretary determines, based on the institutionï¿½s 
demonstrated record of compliance with all the applicable provisions of 
chapters 30 through 36 of this title, that the waiver would 
be appropriate and in the best interest of the United States Government. 
(Added Pub. L. 94-502, title V, Sec. 511(1), Oct. 15, 1976, 90 Stat. 
2401, Sec. 1793; amended Pub. L. 100-322, title III, Sec. 322, May 20, 
1988, 102 Stat. 535; Pub. L. 101-237, title IV, Sec. 423(b)(1)(A), 
Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 
3693, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 


571 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3695 

ï¿½ 3694. Use of other Federal agencies 

(a) IN GENERAL.-In carrying out the Secretaryï¿½s functions 
under this chapter or chapter 34 or 35 of this title, the Secretary 
may utilize the facilities and services of any other Federal department 
or agency. Any such utilization shall be pursuant to proper 
agreement with the Federal department or agency concerned; and 
payment to cover the cost thereof shall be made either in advance 
or by way of reimbursement, as may be provided in such agreement. 
(b) COORDINATION OF INFORMATION AMONG THE DEPARTMENTS 
OF VETERANS AFFAIRS, DEFENSE, AND LABOR WITH RESPECT TO ONJOB TRAINING.-
At the time of a servicememberï¿½s discharge or release from active duty 
service, the Secretary of Defense shall furnish to the Secretary such 
pertinent information concerning each 
registered apprenticeship pursued by the servicemember during the 
period of active duty service of the servicemember. The Secretary, 
in conjunction with the Secretary of Labor, shall encourage and assist 
States and private organizations to give credit to 
servicemembers for the registered apprenticeship program so pursued in 
the case of any related apprenticeship program the 
servicemember may pursue as a civilian. 
(Added Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 23, Sec. 1790; 
renumbered 
Sec. 1794, Pub. L. 92-540, title III, Sec. 316(2), Oct. 24, 1972, 86 
Stat. 1086; amended Pub. L. 94-502, title V, Sec. 513(a)(21), Oct. 15, 
1976, 90 Stat. 2403; Pub. L. 101- 
237, title IV, Sec. 423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; 
renumbered Sec. 
3694, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
108-454, title 
I, Sec. 107, Dec. 10, 2004, 118 Stat. 3603.) 

ï¿½ 3695. Limitation on period of assistance under two or 
more programs 

(a) The aggregate period for which any person may receive assistance 
under two or more of the provisions of law listed below 
may not exceed 48 months (or the part-time equivalent thereof): 
(1) Parts VII or VIII, Veterans Regulation numbered 1(a), 
as amended. 
(2) Title II of the Veteransï¿½ Readjustment Assistance Act 
of 1952. 
(3) The War Orphansï¿½ Educational Assistance Act of 1956. 
(4) Chapters 30, 32, 33, 34, 35, and 36 of this title, and the 
former chapter 33. 
(5) Chapters 107, 1606, 1607, and 1611 of title 10. 
(6) Section 903 of the Department of Defense Authorization Act, 1981 
(Public Law 96-342, 10 U.S.C. 2141 note). 
(7) The Hostage Relief Act of 1980 (Public Law 96-449, 5 
U.S.C. 5561 note). 
(8) The Omnibus Diplomatic Security and Antiterrorism 
Act of 1986 (Public Law 99-399). 
(b) No person may receive assistance under chapter 31 of this 
title in combination with assistance under any of the provisions of 
law cited in subsection (a) of this section in excess of 48 months 
(or the part-time equivalent thereof) unless the Secretary determines that 
additional months of benefits under chapter 31 of this 
title are necessary to accomplish the purposes of a rehabilitation 

Sec. 3696 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 572 

program (as defined in section 3101(5) of this title) in the individual 
case. 

(Added Pub. L. 90-631, Sec. 1(d)(1), Oct. 23, 1968, 82 Stat. 1331, 
Sec. 1791; renumbered Sec. 1795 and amended Pub. L. 92-540, title 
III, Sec. 316(2), title IV, Sec. 
403(13), Oct. 24, 1972, 86 Stat. 1086, 1090; Pub. L. 96-466, title I, 
Sec. 103, Oct. 
17, 1980, 94 Stat. 2187; Pub. L. 98-223, title II, Sec. 203(c)(2), 
Mar. 2, 1984, 98 Stat. 41; Pub. L. 98-525, title VII, Sec. 703(d), 
Oct. 19, 1984, 98 Stat. 2564; Pub. L. 101- 237, title IV, Sec. 
423(a)(8)(B), (b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3695 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 106-65, div. A, title V, Sec. 551(b), 
Oct. 5, 1999, 113 Stat. 614; Pub. L. 107- 103, title V, Sec. 509(d),
Dec. 27, 2001, 115 Stat. 997; Pub. L. 107-107, div. A, title 
X, Sec. 1048(i)(8), Dec. 28, 2001, 115 Stat. 1229; Pub. L. 108-375, 
div. A, title V, Sec. 527(b)(2), Oct. 28, 2004, 118 Stat. 1894; 
Pub. L. 110-252, title V, Sec. 5003(b)(1)(B), June 30, 2008, 122 
Stat. 2375 (conforming amendment effective August 1, 2009).) 

ï¿½ 3696. Limitation on certain advertising, sales, and enrollment
practices 

(a) The Secretary shall not approve the enrollment of an eligible 
veteran or eligible person in any course offered by an institution 
which utilizes advertising, sales, or enrollment practices of any 
type which are erroneous, deceptive, or misleading either by actual 
statement, omission, or intimation. 
(b) To ensure compliance with this section, any institution offering 
courses approved for the enrollment of eligible persons or 
veterans shall maintain a complete record of all advertising, sales, 
or enrollment materials (and copies thereof) utilized by or on behalf 
of the institution during the preceding 12-month period. Such 
record shall be available for inspection by the State approving 
agency or the Secretary. Such materials shall include but are not 
limited to any direct mail pieces, brochures, printed literature used 
by sales persons, films, video tapes, and audio tapes disseminated 
through broadcast media, material disseminated through print 
media, tear sheets, leaflets, handbills, fliers, and any sales or 
recruitment manuals used to instruct sales personnel, agents, or 
representatives of such institution. 
(c) The Secretary shall, pursuant to section 3694 of this title, 
enter into an agreement with the Federal Trade Commission to utilize, 
where appropriate, its services and facilities, consistent with 
its available resources, in carrying out investigations and making 
the Secretaryï¿½s determinations under subsection (a) of this section. 
Such agreement shall provide that cases arising under subsection 
(a) of this section or any similar matters with respect to any of the 
requirements of this chapter or chapters 34 and 35 of this title 
shall be referred to the Federal Trade Commission which in its 
discretion will conduct an investigation and make preliminary 
findings. The findings and results of any such investigations shall be 
referred to the Secretary who shall take appropriate action in such 
cases within ninety days after such referral. 
(Added Pub. L. 93-508, title II, Sec. 212(a), Dec. 3, 1974, 88 Stat. 
1585, Sec. 1796; amended Pub. L. 94-502, title V, Sec. 512, 
513(a)(22), Oct. 15, 1976, 90 Stat. 2402, 2403; Pub. L. 98-543, title 
IV, Sec. 401, Oct. 24, 1984, 98 Stat. 2749; Pub. L. 101- 237, title 
IV, Sec. 423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3696 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 406.) 


573 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS Sec. 3697A 

ï¿½ 3697. Funding of contract educational and vocational 
counseling 

(a) Subject to subsection (b) of this section, educational or 
vocational counseling services obtained by the Department of Veterans 
Affairs by contract and provided to an individual under section 
3697A of this title or to an individual applying for or receiving 
benefits under section 1524 or chapter 30, 32, 33, 34, or 35 of this 
title, or chapter 106 of title 10, shall be paid for out of funds 
appropriated, or otherwise available, to the Department of Veterans 
Affairs for payment of readjustment benefits. 
(b) Payments under this section shall not exceed $6,000,000 in 
any fiscal year. 
(Added Pub. L. 100-687, div. B, title XIII, Sec. 1302(a), Nov. 18, 
1988, 102 Stat. 4127, Sec. 1797; amended Pub. L. 101-237, title IV, 
Sec. 423(b)(1)(B), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 102-16, 
Sec. 2(b)(3), Mar. 22, 1991, 105 Stat. 49; renumbered Sec. 3697 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 103-446, title VI, Sec. 609(a), Nov. 2, 1994, 108 Stat. 4673; 
Pub. L. 110-252, title V, Sec. 5003(b)(2)(A)(vi), June 30, 2008, 122 
Stat. 2375 (conforming 
amendment effective August 1, 2009).) 
ï¿½ 3697A. Educational and vocational counseling 

(a) The Secretary shall make available to an individual described in 
subsection (b) of this section, upon such individualï¿½s request, 
counseling services, including such educational and vocational 
counseling and guidance, testing, and other assistance as the 
Secretary determines necessary to aid the individual in selecting- 
(1) an educational or training objective and an educational 
institution or training establishment appropriate for the attainment of 
such objective; or 
(2) an employment objective that would be likely to provide 
such individual with satisfactory employment opportunities in 
the light of the individualï¿½s personal circumstances. 
(b) For the purposes of this section, the term ï¿½ï¿½individualï¿½ï¿½ 
means an individual who- 
(1) is eligible for educational assistance under chapter 30, 
31, 32, or 33 of this title or chapter 106 or 107 of title 10; 
(2) was discharged or released from active duty under conditions other 
than dishonorable if not more than one year has 
elapsed since the date of such last discharge or release from 
active duty; or 
(3) is serving on active duty in any State with the Armed 
Forces and is within 180 days of the estimated date of such individualï¿½s 
discharge or release from active duty under conditions other than 
dishonorable, including those who are making 
a determination of whether to continue as members of the 
Armed Forces. 
(c) In any case in which the Secretary has rated the individual 
as being incompetent, the counseling services described in subsection 
(a) of this section shall be required to be provided to the 
individual before the selection of a program of education or training. 
(d) At such intervals as the Secretary determines necessary, 
the Secretary shall make available information concerning the need 
for general education and for trained personnel in the various 

Sec. 3698 CH. 36-ADMINISTRATION OF EDUCATIONAL BENEFITS 574 

crafts, trades, and professions. Facilities of other Federal agencies 
collecting such information shall be utilized to the extent the 
Secretary determines practicable. 

(e) The Secretary shall take appropriate steps (including individual 
notification where feasible) to acquaint all individuals described in 
subsection (b) of this section with the availability and 
advantages of counseling services under this section. 
(Added Pub. L. 102-16, Sec. 2(a), Mar. 22, 1991, 105 Stat. 48, Sec. 
1797A; renumbered Sec. 3697A, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406; amended Pub. L. 110-252, title V, Sec. 5003(b)(2)(B), 
June 30, 2008, 122 Stat. 2375 (conforming amendment effective 
August 1, 2009).) 

SUBCHAPTER III-REPEALED 

ï¿½ï¿½ 3698. Repealed. Pub. L. 108-183, title III, Sec. 306(e), Dec. 
16, 2003, 117 Stat. 2661ï¿½ 

ï¿½ï¿½ 3699. Repealed. Pub. L. 108-183, title III, Sec. 306(e), Dec. 
16, 2003, 117 Stat. 2661ï¿½ 


CHAPTER 37 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


575 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½ 

CHAPTER 37-HOUSING AND SMALL BUSINESS LOANS 

SUBCHAPTER I-GENERAL 

Sec. 
3701. Definitions. 
3702. Basic entitlement. 
3703. Basic provisions relating to loan guaranty and insurance. 
3704. Restrictions on loans. 
3705. Warranties. 
3706. Escrow of deposits and downpayments. 
3707. Adjustable rate mortgages. 
3707A. Hybrid adjustable rate mortgages. 
3708. Authority to buy down interest rates: pilot program. 


SUBCHAPTER II-LOANS 

3710. Purchase or construction of homes. 
3711. Direct loans to veterans. 
3712. Loans to purchase manufactured homes and lots. 
3713. Release from liability under guaranty. 
3714. Assumptions; release from liability. 


SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

3720. Powers of Secretary. 

3721. Incontestability. 

3722. Veterans Housing Benefit Program Fund. 

[3723. Repealed.] 

3726. Withholding of payments, benefits, etc. 

3727. Expenditures to correct or compensate for structural defects 
in mortgaged 
homes. 

3728. Exemption from State anti-usury provisions. 

3729. Loan fee. 

3730. Use of attorneys in court. 

3731. Appraisals. 

3732. Procedure on default. 

3733. Property management. 

[3734. Repealed.] 

[3735. Renumbered] 

3736. Reporting requirements. 

SUBCHAPTER IV-SMALL BUSINESS LOANS 

3741. Definitions. 
3742. Small business loan program. 
3743. Liability on loans. 
3744. Approval of loans by the Secretary. 
3745. Interest on loans. 
3746. Maturity of loans. 
3747. Eligible financial institutions. 
3748. Preference for disabled veterans. 
3749. Revolving fund. 
3750. Incorporation of other provisions by the Secretary. 
3751. Termination of program. 


577 


Sec. 3701 CH. 37-HOUSING AND SMALL BUSINESS LOANS 578 

SUBCHAPTER V-DIRECT HOUSING LOANS FOR NATIVE AMERICAN 
VETERANS 


3761. Direct housing loans to Native American veterans; program 
authority. 
3762. Direct housing loans to Native American veterans; program 
administration. 
3763. Native American Veteran Housing Loan Program Account. 
3764. Qualified non-Native American veterans. 
3765. Definitions. 

SUBCHAPTER VI-TRANSFERRED] 
[3771 to 3775. Repealed or renumbered.] 

SUBCHAPTER I-GENERAL 

ï¿½ 3701. Definitions 

(a) For the purpose of this chapter, the term ï¿½ï¿½housing loanï¿½ï¿½ 
means a loan for any of the purposes specified by sections 3710(a) 
and 3712(a)(1) of this title. 
(b) For the purposes of housing loans under this chapter- 
(1) The term ï¿½ï¿½World War IIï¿½ï¿½ (A) means the period beginning on 
September 16, 1940, and ending on July 25, 1947, and 
(B) includes, in the case of any veteran who enlisted or reenlisted 
in a Regular component of the Armed Forces after October 6, 1945, 
and before October 7, 1946, the period of the first 
such enlistment or reenlistment. 
(2) The term ï¿½ï¿½veteranï¿½ï¿½ includes the surviving spouse of 
any veteran (including a person who died in the active military, naval, 
or air service) who died from a service-connected 
disability, but only if such surviving spouse is not eligible for 
benefits under this chapter on the basis of the spouseï¿½s own active 
duty. The active duty or service in the Selected Reserve of 
the deceased spouse shall be deemed to have been active duty 
or service in the Selected Reserve by such surviving spouse for 
the purposes of this chapter. 
(3) The term ï¿½ï¿½veteranï¿½ï¿½ also includes, for purposes of home 
loans, the spouse of any member of the Armed Forces serving 
on active duty who is listed, pursuant to section 556 of title 37, 
United States Code, and regulations issued thereunder, by the 
Secretary concerned in one or more of the following categories 
and has been so listed for a total of more than ninety days: (A) 
missing in action, (B) captured in line of duty by a hostile 
force, or (C) forcibly detained or interned in line of duty by a 
foreign government or power. The active duty of the member 
shall be deemed to have been active duty by such spouse for 
the purposes of this chapter. The loan eligibility of such spouse 
under this paragraph shall be limited to one loan guaranteed 
or made for the acquisition of a home, and entitlement to such 
loan shall terminate automatically, if not used, upon receipt by 
such spouse of official notice that the member is no longer listed in 
one of the categories specified in the first sentence of this 
paragraph. 
(4) The term ï¿½ï¿½veteranï¿½ï¿½ also includes an individual serving 
on active duty. 
(5)(A) The term ï¿½ï¿½veteranï¿½ï¿½ also includes an individual who 
is not otherwise eligible for the benefits of this chapter and (i) 
who has completed a total service of at least 6 years in the Se


579 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3702 

lected Reserve and, following the completion of such service, 
was discharged from service with an honorable discharge, was 
placed on the retired list, was transferred to the Standby Reserve or 
an element of the Ready Reserve other than the Selected Reserve after 
service in the Selected Reserve characterized by the Secretary 
concerned as honorable service, or continues serving in the Selected 
Reserve, or (ii) who was discharged or released from the Selected 
Reserve before completing 6 years of service because of a service-
connected disability. 

(B) The term ï¿½ï¿½Selected Reserveï¿½ï¿½ means the Selected Reserve of the 
Ready Reserve of any of the reserve components 
(including the Army National Guard of the United States and 
the Air National Guard of the United States) of the Armed 
Forces, as required to be maintained under section 10143(a) of 
title 10. 
(c) Benefits shall not be afforded under this chapter to any individual 
on account of service as a commissioned officer of the National Oceanic 
and Atmospheric Administration (or predecessor entity), or of the 
Regular or Reserve Corps of the Public Health Service, unless such 
service would have qualified such individual for 
benefits under title III of the Servicemenï¿½s Readjustment Act of 
1944. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1203, Sec. 1801; Pub. L. 
91-584, Sec. 5(a), Dec. 24, 1970, 84 Stat. 1576; Pub. L. 94-324, Sec. 
7(1), (2), June 30, 1976, 90 Stat. 721; Pub. L. 97-72, title III, Sec. 
303(a), Nov. 3, 1981, 95 Stat. 1059; Pub. L. 97-295, Sec. 4(62), Oct. 
12, 1982, 96 Stat. 1309; Pub. L. 100-322, title IV, Sec. 415(c)(1), 
May 20, 1988, 102 Stat. 551; Pub. L. 101-237, title III, Sec. 
313(a), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3701 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 102-547, Sec. 2(a)(1), Oct. 28, 1992, 106 Stat. 
3633; Pub. L. 103-446, title IX, Sec. 901, Nov. 2, 1994, 108 Stat. 
4675; Pub. L. 104-106, div. A, title XV, Sec. 1501(e)(2)(B), 
Feb. 10, 1996, 110 Stat. 501.) 

ï¿½ 3702. Basic entitlement 

(a)(1) The veterans described in paragraph (2) of this subsection are 
eligible for the housing loan benefits of this chapter. In 
the case of any veteran who served on active duty during two or 
more of the periods specified in paragraph (2) for which eligibility 
for the housing loan benefits under this chapter may be granted, 
entitlement derived from service during the most recent such period 
(A) shall cancel any unused entitlement derived from service 
during any earlier such period, and (B) shall be reduced by the 
amount by which entitlement from service during any earlier such 
period has been used to obtain a direct, guaranteed, or insured 
housing loan- 

(i) on real property which the veteran owns at the time of 
application; or 
(ii) as to which the Secretary has incurred actual liability 
or loss, unless in the event of loss or the incurrence and payment of 
such liability by the Secretary the resulting indebtedness of the 
veteran to the United States has been paid in full. 
(2) The veterans referred to in the first sentence of paragraph 
(1) of this subsection are the following: 

Sec. 3702 CH. 37-HOUSING AND SMALL BUSINESS LOANS 580 

(A) Each veteran who served on active duty at any time 
during World War II, the Korean conflict, or the Vietnam era 
and whose total service was for 90 days or more. 
(B) Each veteran who after September 15, 1940, was discharged or 
released from a period of active duty for a service-
connected disability. 
(C) Each veteran, other than a veteran described in clause 
(A) or (B) of this paragraph, who- 
(i) served after July 25, 1947, for a period of more than 
180 days and was discharged or released therefrom under conditions 
other than dishonorable; or 
(ii) has served more than 180 days in active duty status 
and continues on active duty without a break therein. 
(D) Each veteran who served on active duty for 90 days or 
more at any time during the Persian Gulf War, other than a 
veteran ineligible for benefits under this title by reason of section 
5303A(b) of this title. 
(E) Each veteran described in section 3701(b)(5) this title. 
(F) Each veteran who was discharged or released from a 
period of active duty of 90 days or more by reason of a sole 
survivorship discharge (as that term is defined in section 1174(i) 
of title 10). 
(3) Any unused entitlement of World War II or Korean conflict 
veterans which expired under provisions of law in effect before October 
23, 1970, is hereby restored and shall not expire until used. 
(4) A veteranï¿½s entitlement under this chapter shall not be reduced by 
any entitlement used by the veteranï¿½s spouse which was 
based upon the provisions of paragraph (3) of section 3701(b) of 
this title. 
(b) In computing the aggregate amount of guaranty or insurance housing 
loan entitlement available to a veteran under this chapter, the 
Secretary may exclude the amount of guaranty or insurance housing loan 
entitlement used for any guaranteed, insured, or direct loan under the 
following circumstances: (1)(A) The property which secured the loan has 
been disposed of by the veteran or has been destroyed by fire or other 
natural hazard; and 

(B) the loan has been repaid in full, or the Secretary has 
been released from liability as to the loan, or if the Secretary 
has suffered a loss on such loan, the loss has been paid in full. 
(2) A veteran-transferee has agreed to assume the outstanding balance 
on the loan and consented to the use of the veteran-transfereeï¿½s 
entitlement, to the extent that the entitlement of the veteran-
transferor had been used originally, in place of the veteran-
transferorï¿½s for the guaranteed, insured, or direct loan, and the 
veteran-transferee otherwise meets the requirements of this chapter. 
(3)(A) The loan has been repaid in full; and 

(B) the loan for which the veteran seeks to use entitlement 
under this chapter is secured by the same property which secured the 
loan referred to in subparagraph (A) of this paragraph. 
(4) In a case not covered by paragraph (1) or (2)- 

581 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3702 

(A) the loan has been repaid in full and, if the Secretary has suffered 
a loss on the loan, the loss has been 
paid in full; or 
(B) the Secretary has been released from liability as to 
the loan and, if the Secretary has suffered a loss on the 
loan, the loss has been paid in full. 
The Secretary may, in any case involving circumstances the Secretary 
deems appropriate, waive one or more of the conditions prescribed in 
paragraph (1). The authority of the Secretary under this 
subsection to exclude an amount of guaranty or insurance housing 
loan entitlement previously used by a veteran may be exercised 
only once for that veteran under the authority of paragraph (4). 

(c) An honorable discharge shall be deemed to be a certificate 
of eligibility to apply for a guaranteed loan. Any veteran who does 
not have a discharge certificate, or who received a discharge other 
than honorable, may apply to the Secretary for a certificate of 
eligibility. Upon making a loan guaranteed or insured under this 
chapter, the lender shall forthwith transmit to the Secretary a report 
thereon in such detail as the Secretary may, from time to time, 
prescribe. Where the loan is guaranteed, the Secretary shall provide 
the lender with a loan guaranty certificate or other evidence 
of the guaranty. The Secretary shall also endorse on the veteranï¿½s 
discharge, or eligibility certificate, the amount and type of guaranty 
used, and the amount, if any, remaining. Nothing in this 
chapter shall preclude the assignment of any guaranteed loan or 
the security therefor. 
(d) Housing loans will be automatically guaranteed under this 
chapter only if made (1) by any Federal land bank, national bank, 
State bank, private bank, building and loan association, insurance 
company, credit union, or mortgage and loan company, that is subject to 
examination and supervision by an agency of the United States or of any 
State, or (2) by any State, or (3) by any lender approved by the 
Secretary pursuant to standards established by the Secretary. Any 
housing loan proposed to be made to a veteran pursuant to this chapter 
by any lender not of a class specified in the preceding sentence may be 
guaranteed by the Secretary if the Secretary finds that it is in accord 
otherwise with the provisions of 
this chapter. 
(e) The Secretary may at any time upon thirty daysï¿½ notice require 
housing loans to be made by any lender or class of lenders 
to be submitted to the Secretary for prior approval. No guaranty 
or insurance liability shall exist with respect to any such loan unless 
evidence of guaranty or insurance is issued by the Secretary. 
(f) Any housing loan at least 20 percent of which is guaranteed 
under this chapter may be made by any national bank or Federal 
savings and loan association, or by any bank, trust company, building 
and loan association, or insurance company, organized or authorized to 
do business in the District of Columbia. Any such loan 
may be so made without regard to the limitations and restrictions 
of any other law relating to- 
(1) ratio of amount of loan to the value of the property; 
(2) maturity of loan; 
(3) requirement for mortgage or other security; 
(4) dignity of lien; or 

Sec. 3703 CH. 37-HOUSING AND SMALL BUSINESS LOANS 582 

(5) percentage of assets which may be invested in real estate loans. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1203, Sec. 1802; Pub. L. 86-73, 
Sec. 1, June 30, 1959, 73 Stat. 156; Pub. L. 87-84, Sec. 1(b), July 6,
1961, 75 Stat. 201; Pub. 

L. 90-19, Sec. 25(1), May 25, 1967, 81 Stat. 28; Pub. L. 90-77, title 
IV, Sec. 403(a), Aug. 31, 1967, 81 Stat. 190; Pub. L. 91-506, Sec. 
2(a), Oct. 23, 1970, 84 Stat. 1108; Pub. L. 91-584, Sec. 5(b), Dec. 
24, 1970, 84 Stat. 1576; Pub. L. 93-569, Sec. 2(a), (b), Dec. 31, 
1974, 88 Stat. 1863; Pub. L. 94-324, Sec. 7(3)-(5), June 30, 1976, 90 
Stat. 721; Pub. L. 95-476, title I, Sec. 102, Oct. 18, 1978, 92 
Stat. 1497; Pub. L. 97-72, title III, Sec. 303(b), Nov. 3, 1981, 
95 Stat. 1060; Pub. L. 97-295, Sec. 4(61), Oct. 12, 1982, 96 Stat. 
1309; Pub. L. 98-223, title II, Sec. 204, Mar. 2, 1984, 98 Stat. 
42; Pub. L. 100-322, title IV, Sec. 415(a)(1), (2), May 20, 1988, 102 
Stat. 549, 550; Pub. L. 101-237, title III, Sec. 310, 313(b)(1), Dec. 
18, 1989, 103 Stat. 2075, 2077; Pub. L. 102-25, title III, Sec. 341, 
Apr. 6, 1991, 105 Stat. 92; Pub. L. 102-40, title IV, Sec. 402(d)(1), 
May 7, 1991, 105 Stat. 239; renumbered Sec. 3702 and amended Pub. L. 
102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
102-547, Sec. 2(a)(2), Oct. 28, 1992, 106 Stat. 3633; Pub. L. 103-446, 
title IX, Sec. 902, title XII, Sec. 1201(f)(4), Nov. 2, 1994, 108 Stat. 
4676, 4687; Pub. L. 105-368, title VI, Sec. 603(a), Nov. 11, 1998, 112
Stat. 3348; Pub. L. 106-117, title VII, Sec. 711, Nov. 30, 1999, 113 
Stat. 1584; Pub. L. 107-103, title IV, Sec. 405(a), Dec. 27, 2001, 115 
Stat. 993; Pub. L. 108-183, title IV, Sec. 403, Dec. 16, 2003, 117 
Stat. 2664; Pub. L. 110-317, Sec. 6(a), Aug. 29, 2008, 122 Stat. 3528.) 
ï¿½ 3703. Basic provisions relating to loan guaranty and insurance 

(a)(1)(A) Any loan to a veteran eligible for benefits under this 
chapter, if made for any of the purposes specified in section 3710 
of this title and in compliance with the provisions of this chapter, 
is automatically guaranteed by the United States in an amount not 
to exceed the lesser of- 

(i)(I) in the case of any loan of not more than $45,000, 50 

percent of the loan; 

(II) in the case of any loan of more than $45,000, but not 
more than $56,250, $22,500; 
(III) except as provided in subclause (IV) of this clause, in 
the case of any loan of more than $56,250, the lesser of $36,000 
or 40 percent of the loan; or 
(IV) in the case of any loan of more than $144,000 for a 
purpose specified in clause (1), (2), (3), (5), (6), or (8) of 
section 
3710(a) of this title, the lesser of the maximum guaranty 
amount (as defined in subparagraph (C)) or 25 percent of the 
loan; or 
(ii) the maximum amount of guaranty entitlement available to the 
veteran as specified in subparagraph (B) of this 
paragraph. 
(B) The maximum amount of guaranty entitlement available to 
a veteran for purposes specified in section 3710 of this title shall 
be $36,000, or in the case of a loan described in subparagraph 
(A)(i)(IV) of this paragraph, the maximum guaranty amount (as defined 
in subparagraph (C)), reduced by the amount of entitlement 
previously used by the veteran under this chapter and not restored 
as a result of the exclusion in section 3702(b) of this title. 
(C) In this paragraph, the term ï¿½ï¿½maximum guaranty amountï¿½ï¿½ 
means the dollar amount that is equal to 25 percent of the Freddie 
Mac conforming loan limit limitation determined under section 
305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 

583 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3703 

U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the 
year involved. 
(2)(A) Any housing loan which might be guaranteed under the 
provisions of this chapter, when made or purchased by any financial 
institution subject to examination and supervision by any 
agency of the United States or of any State may, in lieu of such 
guaranty, be insured by the Secretary under an agreement whereby the 
Secretary will reimburse any such institution for losses incurred on 
such loan up to 15 per centum of the aggregate of loans 
so made or purchased by it. 

(B) Loans insured under this section shall be made on such 
other terms, conditions, and restrictions as the Secretary may 
prescribe within the limitations set forth in this chapter. 
(b) The liability of the United States under any guaranty, within the 
limitations of this chapter, shall decrease or increase pro 
rata with any decrease or increase of the amount of the unpaid portion 
of the obligation. 
(c)(1) Loans guaranteed or insured under this chapter shall be 
payable upon such terms and conditions as may be agreed upon by 
the parties thereto, subject to the provisions of this chapter and 
regulations of the Secretary issued pursuant to this chapter, and 
shall bear interest not in excess of such rate as the Secretary may 
from time to time find the loan market demands, except that in 
establishing the rate of interest that shall be applicable to such 
loans, the Secretary shall consult with the Secretary of Housing 
and Urban Development regarding the rate of interest applicable 
to home loans insured under section 203(b) of the National Housing 
Act (12 U.S.C. 1709(b)). In establishing rates of interest under this 
paragraph for one or more of the purposes described in clauses (4) 
and (7) of section 3710(a) of this title, the Secretary may establish 
a rate or rates higher than the rate specified for other purposes 
under such section, but any such rate may not exceed such rate as 
the Secretary may from time to time find the loan market demands 
for loans for such purposes. 

(2) The provisions of the Servicemenï¿½s Readjustment Act of 
1944 which were in effect before April 1, 1958, with respect to the 
interest chargeable on loans made or guaranteed under such Act 
shall, notwithstanding the provisions of paragraph (1) of this 
subsection, continue to be applicable- 
(A) to any loan made or guaranteed before April 1, 1958; 
and 
(B) to any loan with respect to which a commitment to 
guarantee was entered into by the Secretary before April 1, 
1958. 
(3) This section shall not be construed to prohibit a veteran 
from paying to a lender any reasonable discount required by such 
lender, when the proceeds from the loan are to be used- 
(A) to refinance indebtedness pursuant to clause (5), (8), or 
(9)(B)(i) of section 3710(a) of this title or section 3712(a)(1)(F) 
of this title; 
(B) to repair, alter, or improve a farm residence or other 
dwelling pursuant to clauses (4) and (7) of section 3710(a) of 
this title; 

Sec. 3703 CH. 37-HOUSING AND SMALL BUSINESS LOANS 584 

(C) to construct a dwelling or farm residence on land already owned 
or to be acquired by the veteran except where the 
land is directly or indirectly acquired from a builder or developer 
who has contracted to construct such dwelling for the veteran; 
(D) to purchase a dwelling from a class of sellers which the 
Secretary determines are legally precluded under all circumstances 
from paying such a discount if the best interest of 
the veteran would be so served; or 
(E) to refinance indebtedness and purchase a manufactured-home lot 
pursuant to section 3710(a)(9)(B)(ii) or 
3712(a)(1)(G) of this title, but only with respect to that portion 
of the loan used to refinance such indebtedness. 
(4)(A) In guaranteeing or insuring loans under this chapter, 
the Secretary may elect whether to require that such loans bear 
interest at a rate that is- 

(i) agreed upon by the veteran and the mortgagee; or 
(ii) established under paragraph (1). 
The Secretary may, from time to time, change the election 
under this subparagraph. 
(B) Any veteran, under a loan described in subparagraph (A)(i), 
may pay reasonable discount points in connection with the loan. 
Except in the case of a loan for the purpose specified in section 
3710(a)(8), 3710(b)(7), or 3712(a)(1)(F) of this title, discount 
points 
may not be financed as part of the principal amount of a loan 
guaranteed or insured under this chapter. 
(C) Not later than 10 days after an election under subparagraph (A), 
the Secretary shall transmit to the Committees on Veteransï¿½ Affairs 
of the Senate and House of Representatives a notification of the 
election, together with an explanation of the reasons 
therefor. 
(d)(1) The maturity of any housing loan shall not be more than 
thirty years and thirty-two days. 
(2)(A) Any loan for a term of more than five years shall be amortized 
in accordance with established procedure. 

(B) The Secretary may guarantee loans with provisions for various rates 
of amortization corresponding to anticipated variations 
in family income. With respect to any loan guaranteed under this 
subparagraph- 
(i) the initial principal amount of the loan may not exceed 
the reasonable value of the property as of the time the loan is 
made; and 
(ii) the principal amount of the loan thereafter (including 
the amount of all interest to be deferred and added to principal) may 
not at any time be scheduled to exceed the projected 
value of the property. 
(C) For the purposes of subparagraph (B) of this paragraph, 
the projected value of the property shall be calculated by the 
Secretary by increasing the reasonable value of the property as of the 
time the loan is made at a rate not in excess of 2.5 percent per 
year, but in no event may the projected value of the property for 
the purposes of such subparagraph exceed 115 percent of such reasonable 
value. A loan made for a purpose other than the acquisi

585 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3703 

tion of a single-family dwelling unit may not be guaranteed under 
such subparagraph. 

(3) Any real estate housing loan (other than for repairs, alterations, 
or improvements) shall be secured by a first lien on the realty. In 
determining whether a loan for the purchase or construction of a home 
is so secured, the Secretary may disregard a superior lien created by a 
duly recorded covenant running with the realty in favor of a private 
entity to secure an obligation to such entity for the homeownerï¿½s share 
of the costs of the management, operation, or maintenance of property, 
services or programs within and for the benefit of the development or 
community in which the veteranï¿½s realty is located, if the Secretary 
determines that the interests of the veteran borrower and of the 
Government will not be 
prejudiced by the operation of such covenant. In respect to any 
such superior lien to be created after June 6, 1969, the Secretaryï¿½s 
determination must have been made prior to the recordation of the 
covenant. 
(e)(1) Except as provided in paragraph (2) of this subsection, an 
individual who pays a fee under section 3729 of this title, or who 
is exempted under section 3729(c)(1) of this title from paying such 
fee, with respect to a housing loan guaranteed or insured under 
this chapter that is closed after December 31, 1989, shall have no 
liability to the Secretary with respect to the loan for any loss 
resulting from any default of such individual except in the case of 
fraud, misrepresentation, or bad faith by such individual in obtaining 
the loan or in connection with the loan default. 

(2) The exemption from liability provided by paragraph (1) of 
this subsection shall not apply to- 
(A) an individual from whom a fee is collected (or who is 
exempted from such fee) under section 3729(b)(2)(I) of this 
title; or 
(B) a loan made for any purpose specified in section 3712 
of this title. 
(f) The application for or obtaining of a loan made, insured, or 
guaranteed under this chapter shall not be subject to reporting 
requirements applicable to requests for, or receipts of, Federal 
contracts, grants, loans, loan guarantees, loan insurance, or 
cooperative agreements except to the extent that such requirements are 
provided for in, or by the Secretary pursuant to, this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1205, 1212, Sec. 1803; Pub. L. 
86-73, Sec. 2, June 30, 1959, 73 Stat. 156; Pub. L. 86-665, Sec. 1, 
July 14, 1960, 74 Stat. 531; Pub. L. 87-84, Sec. 1(a), July 6, 1961, 
75 Stat. 201; Pub. L. 89-358, Sec. 5(d), Mar. 3, 1966, 80 Stat. 26; 
Pub. L. 90-77, title IV, Sec. 403(b), Aug. 31, 1967, 81 Stat. 190; Pub. 
L. 91-22, Sec. 4, June 6, 1969, 83 Stat. 32; Pub. L. 91-506, Sec. 2(b), 
(c), Oct. 23, 1970, 84 Stat. 1108; Pub. L. 93-75, July 26, 1973, 87 
Stat. 176; Pub. L. 93-569, Sec. 2(c), 8(1)-(5), Dec. 31, 1974, 88 Stat. 
1863, 1866; Pub. L. 94-324, Sec. 7(6), (16), June 30, 1976, 90 Stat. 
721; Pub. L. 95-476, title I, Sec. 103, Oct. 18, 1978, 92 Stat. 1498; 
Pub. L. 96-385, title IV, Sec. 401(c)(1), Oct. 7, 1980, 94 Stat. 1533; 
Pub. L. 97-66, title V, Sec. 501(a), Oct. 17, 1981, 95 Stat. 1031; Pub. 
L. 97- 72, title III, Sec. 303(c), (e), Nov. 3, 1981, 95 Stat. 1060; 
Pub. L. 97-295, Sec. 4(61), (63), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 
97-306, title IV, Sec. 406(b), Oct. 14, 1982, 96 Stat. 1444; Pub. L. 
98-223, title II, Sec. 205(c), Mar. 2, 1984, 98 Stat. 43; Pub. 

L. 100-198, Sec. 3(a)(1), Dec. 21, 1987, 101 Stat. 1315; Pub. L. 100-
253, Sec. 3(a), Feb. 29, 1988, 102 Stat. 20; Pub. L. 100-322, title IV, 
Sec. 415(a)(3), (c)(2), (d)(1), May 20, 1988, 102 Stat. 550-552; Pub. 
L. 101-237, title III, Sec. 304(a), 306(a), 313(b)(1), (6), Dec. 18, 
1989, 103 Stat. 2073, 2074, 2077; Pub. L. 102-54, Sec. 4(b), 6, June 
13, 1991, 105 Stat. 268; renumbered Sec. 3703 and amended Pub. L. 102- 

Sec. 3704 CH. 37-HOUSING AND SMALL BUSINESS LOANS 586 

83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-547, 
Sec. 10(a), Oct. 28, 1992, 106 Stat. 3643; Pub. L. 103-78, Sec. 6, 
Aug. 13, 1993, 107 Stat. 769; Pub. 

L. 103-353, Sec. 7, Oct. 13, 1994, 108 Stat. 3175; Pub. L. 104-110, 
title I, Sec. 101(d), Feb. 10, 1996, 110 Stat. 768; Pub. L. 107-103, 
title IV, Sec. 401, Dec. 27, 2001, 115 Stat. 993; Pub. L. 107-330, 
title III, Sec. 308(f)(1), Dec. 6, 2002, 116 Stat. 2828; Pub. L. 
108-454, title IV, Sec. 403, Dec. 10, 2004, 118 Stat. 3616; Pub. L. 110- 
389, title V, Sec. 504(a), Oct. 10, 2008, 122 Stat. 4176.) 
ï¿½ 3704. Restrictions on loans 

(a) No loan for the purchase or construction of residential property 
shall be financed through the assistance of this chapter unless 
the property meets or exceeds minimum requirements for planning, 
construction, and general acceptability prescribed by the Secretary; 
however, this subsection shall not apply to a loan for the purchase 
of residential property on which construction is fully completed 
more than one year before such loan is made. 
(b) Subject to notice and opportunity for a hearing, the Secretary may 
refuse to appraise any dwelling or housing project 
owned, sponsored, or to be constructed by any person identified 
with housing previously sold to veterans under this chapter as to 
which substantial deficiencies have been discovered, or as to which 
there has been a failure or indicated inability to discharge contractual 
liabilities to veterans, or as to which it is ascertained that the 
type of contract of sale or the methods or practices pursued in relation 
to the marketing of such properties were unfair or unduly prejudicial 
to veteran purchasers. The Secretary may also refuse to appraise any 
dwelling or housing project owned, sponsored, or to be 
constructed by any person refused the benefits of participation 
under the National Housing Act pursuant to a determination of the 
Secretary of Housing and Urban Development. 
(c)(1) Except as provided in paragraph (2) of this subsection, no 
loan for the purchase or construction of residential property shall 
be financed through the assistance of this chapter unless the veteran 
applicant, at the time that the veteran applies for the loan, 
and also at the time that the loan is closed, certifies in such form 
as the Secretary may require, that the veteran intends to occupy 
the property as the veteranï¿½s home. Except as provided in paragraph (2) 
of this subsection, no loan for the repair, alteration, or 
improvement of residential property shall be financed through the 
assistance of the provisions of this chapter unless the veteran 
applicant, at the time that the veteran applies to the lender for the 
loan, and also at the time that the loan is closed, certifies, in such 
form as may be required by the Secretary, that the veteran occupies the 
property as the veteranï¿½s home. Notwithstanding the foregoing provisions 
of this subsection, in the case of a loan automatically guaranteed under 
this chapter, the veteran shall be required 
to make the certification only at the time the loan is closed. For 
the purposes of this chapter the requirement that the veteran recipient 
of a guaranteed or direct home loan must occupy or intend 
to occupy the property as the veteranï¿½s home means that the veteran as 
of the date of the veteranï¿½s certification actually lives in 
the property personally as the veteranï¿½s residence or actually intends 
upon completion of the loan and acquisition of the dwelling 
unit to move into the property personally within a reasonable time 
and to utilize such property as the veteranï¿½s residence. Notwith


587 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3704 

standing the foregoing requirements of this subsection, the provisions 
for certification by the veteran at the time the veteran applies for 
the loan and at the time the loan is closed shall be considered to be 
satisfied if the Secretary finds that (1) in the case of a 
loan for repair, alteration, or improvement the veteran in fact did 
occupy the property at such times, or (2) in the case of a loan for 
construction or purchase the veteran intended to occupy the property 
as the veteranï¿½s home at such times and the veteran did in 
fact so occupy it when, or within a reasonable time after, the loan 
was closed. 

(2) In any case in which a veteran is in active duty status as 
a member of the Armed Forces and is unable to occupy a property 
because of such status, the occupancy requirements of- 
(A) paragraph (1) of this subsection; 
(B) paragraphs (1) through (5) and paragraph (7) of section 
3710(a) of this title; 
(C) section 3712(a)(5)(A)(i) of this title; and 
(D) section 3712(e)(5) of this title; 
shall be considered to be satisfied if the spouse of the veteran 
occupies the property as the spouseï¿½s home and the spouse makes the 
certification required by paragraph (1) of this subsection. 
(d) Subject to notice and opportunity for a hearing, whenever 
the Secretary finds with respect to guaranteed or insured loans 
that any lender or holder has failed to maintain adequate loan 
accounting records, or to demonstrate proper ability to service loans 
adequately or to exercise proper credit judgment or has willfully or 
negligently engaged in practices otherwise detrimental to the interest 
of veterans or of the Government, the Secretary may refuse either 
temporarily or permanently to guarantee or insure any loans 
made by such lender or holder and may bar such lender or holder 
from acquiring loans guaranteed or insured under this chapter; 
however, the Secretary shall not refuse to pay a guaranty or insurance 
claim on loans theretofore entered into in good faith between 
a veteran and such lender. The Secretary may also refuse either 
temporarily or permanently to guarantee or insure any loans made 
by a lender or holder refused the benefits of participation under the 
National Housing Act pursuant to a determination of the Secretary 
of Housing and Urban Development. 
(e) Any housing loan which is financed through the assistance 
of this chapter and to which section 3714 of this chapter applies 
shall include a provision that the loan is immediately due and payable 
upon transfer of the property securing such loan to any transferee 
unless the acceptability of the assumption of the loan is established 
pursuant to such section 3714. 
(f) A loan for the purchase or construction of new residential 
property, the construction of which began after the energy efficiency 
standards under section 109 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12709), as amended by 
section 101(c) of the Energy Policy Act of 1992, take effect, may not 
be financed through the assistance of this chapter unless the new 
residential property is constructed in compliance with such standards. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1206, Sec. 1804; Pub. L. 86-73, 
Sec. 3, June 
30, 1959, 73 Stat. 156; Pub. L. 86-665, Sec. 5, July 14, 1960, 74 Stat. 
532; Pub. 


Sec. 3705 CH. 37-HOUSING AND SMALL BUSINESS LOANS 588 

L. 89-117, title II, Sec. 217(b), Aug. 10, 1965, 79 Stat. 473; Pub. L. 
90-19, Sec. 
25(2), May 25, 1967, 81 Stat. 28; Pub. L. 91-506, Sec. 2(d), Oct. 23, 
1970, 84 Stat. 
1108; Pub. L. 93-569, Sec. 2(d), (e), Dec. 31, 1974, 88 Stat. 1863, 
1864; Pub. L. 94-324, Sec. 7(7), (8), June 30, 1976, 90 Stat. 721; 
Pub. L. 97-295, Sec. 4(64), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 
100-198, Sec. 8(a)(1), 10(b), Dec. 21, 1987, 101 Stat. 1319, 1323; Pub. 
L. 100-322, title IV, Sec. 415(c)(3), May 20, 1988, 102 Stat. 551; Pub. 
L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 3704 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-486, title I, Sec. 101(c)(2), 
Oct. 24, 1992, 106 Stat. 2787; Pub. L. 103- 
446, title IX, Sec. 903, Nov. 2, 1994, 108 Stat. 4676.) 
ï¿½ 3705. Warranties 

(a) The Secretary shall require that in connection with any 
property upon which there is located a dwelling designed principally 
for not more than a four-family residence and which is appraised for 
guaranty or insurance before the beginning of construction, the seller 
or builder, and such other person as may be required by the Secretary 
to become warrantor, shall deliver to the 
purchaser or owner of such property a warranty that the dwelling 
is constructed in substantial conformity with the plans and 
specifications (including any amendments thereof, or changes and 
variations therein, which have been approved in writing by the 
Secretary) on which the Secretary based the Secretaryï¿½s valuation of 
the dwelling. The Secretary shall deliver to the builder, seller, or 
other warrantor the Secretaryï¿½s written approval (which shall be 
conclusive evidence of such appraisal) of any amendment of, or 
change or variation in, such plans and specifications which the 
Secretary deems to be a substantial amendment thereof, or change or 
variation therein, and shall file a copy of such written approval 
with such plans and specifications. Such warranty shall apply only 
with respect to such instances of substantial nonconformity to such 
approved plans and specifications (including any amendments 
thereof, or changes or variations therein, which have been approved 
in writing, as provided in this section, by the Secretary) as 
to which the purchaser or home owner has given written notice to 
the warrantor within one year from the date of conveyance of title 
to, or initial occupancy of, the dwelling, whichever first occurs. 
Such warranty shall be in addition to, and not in derogation of, all 
other rights and privileges which such purchaser or owner may 
have under any other law or instrument. The provisions of this section
shall apply to any such property covered by a mortgage insured or 
guaranteed by the Secretary on and after October 1, 1954, 
unless such mortgage is insured or guaranteed pursuant to a commitment 
therefor made before October 1, 1954. 
(b) The Secretary shall permit copies of the plans and specifications 
(including written approvals of any amendments thereof, or 
changes or variations therein, as provided in this section) for 
dwellings in connection with which warranties are required by 
subsection (a) of this section to be made available in their appropriate 
local offices for inspection or for copying by any purchaser, home 
owner, or warrantor during such hours or periods of time as the 
Secretary may determine to be reasonable. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1206, Sec. 1805; Pub. L. 
94-324, Sec. 7(9), June 30, 1976, 90 Stat. 721; Pub. L. 101-237, title 
III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; Pub. L. 102-54, Sec. 
15(a)(1), June 13, 1991, 105 Stat. 288; renum


589 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3707 

bered Sec. 3705, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 103- 
446, title XII, Sec. 1202(a)(2), Nov. 2, 1994, 108 Stat. 4689.) 

ï¿½ 3706. Escrow of deposits and downpayments 

(a) Any deposit or downpayment made by an eligible veteran 
in connection with the purchase of proposed or newly constructed 
and previously unoccupied residential property in a project on 
which the Secretary has issued a Certificate of Reasonable Value, 
which purchase is to be financed with a loan guaranteed, insured, 
or made under the provisions of this chapter, shall be deposited 
forthwith by the seller, or the agent of the seller, receiving such 
deposit or payment, in a trust account to safeguard such deposit or 
payment from the claims of creditors of the seller. The failure of 
the seller or the sellerï¿½s agent to create such trust account and to 
maintain it until the deposit or payment has been disbursed for the 
benefit of the veteran purchaser at settlement or, if the transaction 
does not materialize, is otherwise disposed of in accordance with 
the terms of the contract, may constitute an unfair marketing practice 
within the meaning of section 3704(b) of this title. 
(b) If an eligible veteran contracts for the construction of a 
property in a project on which the Secretary has issued a Certificate 
of Reasonable Value and such construction is to be financed with the 
assistance of a construction loan to be guaranteed, insured, or made 
under the provisions of this chapter, it may be considered an unfair 
marketing practice under section 3704(b) of this title if any deposit 
or downpayment of the veteran is not maintained in a special trust 
account by the recipient until it is either (1) applied on behalf of 
the veteran to the cost of the land or to the cost of construction or 
(2), if the transaction does not materialize, is otherwise disposed of 
in accordance with the terms of the contract. (Added Pub. L. 86-665, 
Sec. 6(a), July 14, 1960, 74 Stat. 532, Sec. 1806; amended Pub. L. 
94-324, Sec. 7(10), June 30, 1976, 90 Stat. 721; Pub. L. 101-237, title 
III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 
3706 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 103-446, title 
XII, Sec. 1201(e)(13), Nov. 2, 1994, 108 Stat. 4685.) 

ï¿½ 3707. Adjustable rate mortgages 

(a) The Secretary shall carry out a demonstration project under 
this section during fiscal years 1993 through 2012 for the purpose 
of guaranteeing loans in a manner similar to the manner in which 
the Secretary of Housing and Urban Development insures adjustable rate 
mortgages under section 251 of the National Housing Act. (b) Interest 
rate adjustment provisions of a mortgage guaranteed under this section 
shall- 
(1) correspond to a specified national interest rate index 
approved by the Secretary, information on which is readily accessible 
to mortgagors from generally available published 
sources; 
(2) be made by adjusting the monthly payment on an annual basis; 
(3) be limited, with respect to any single annual interest 
rate adjustment, to a maximum increase or decrease of 1 percentage 
point; and 

Sec. 3707A CH. 37-HOUSING AND SMALL BUSINESS LOANS 590 

(4) be limited, over the term of the mortgage, to a maximum increase 
of 5 percentage points above the initial contract 
interest rate. 
(c) The Secretary shall promulgate underwriting standards for 
loans guaranteed under this section, taking into account- 
(1) the status of the interest rate index referred to in subsection 
(b)(1) and available at the time an underwriting decision is made, 
regardless of the actual initial rate offered by the 
lender; 
(2) the maximum and likely amounts of increases in mortgage payments 
that the loans would require; 
(3) the underwriting standards applicable to adjustable 
rate mortgages insured under title II of the National Housing 
Act; and 
(4) such other factors as the Secretary finds appropriate. 
(d) The Secretary shall require that the mortgagee make available to 
the mortgagor, at the time of loan application, a written explanation of
the features of the adjustable rate mortgage, including 
a hypothetical payment schedule that displays the maximum potential 
increases in monthly payments to the mortgagor over the 
first five years of the mortgage term. 
(Added Pub. L. 102-547, Sec. 3(a)(1), Oct. 28, 1992, 106 Stat. 3634; 
amended Pub. 

L. 103-78, Sec. 7, Aug. 13, 1993, 107 Stat. 769; Pub. L. 108-454, title 
IV, Sec. 404, 
Dec. 10, 2004, 118 Stat. 3616; Pub. L. 110-389, title V, Sec. 505(a), 
Oct. 10, 2008, 
122 Stat. 4176.) 
ï¿½ 3707A. Hybrid adjustable rate mortgages 

(a) The Secretary shall carry out a demonstration project under 
this section during fiscal years 2004 through 2012 for the purpose 
of guaranteeing loans in a manner similar to the manner in which 
the Secretary of Housing and Urban Development insures adjustable rate 
mortgages under section 251 of the National Housing Act 
in accordance with the provisions of this section with respect to hybrid 
adjustable rate mortgages described in subsection (b). 
(b) Adjustable rate mortgages that are guaranteed under this 
section shall be adjustable rate mortgages (commonly referred to as 
ï¿½ï¿½hybrid adjustable rate mortgagesï¿½ï¿½) having interest rate adjustment 
provisions that- 
(1) specify an initial rate of interest that is fixed for a period of 
not less than the first three years of the mortgage term; 
(2) provide for an initial adjustment in the rate of interest 
by the mortgagee at the end of the period described in paragraph (1); and 
(3) comply in such initial adjustment, and any subsequent 
adjustment, with subsection (c). 
(c) Interest rate adjustment provisions of a mortgage guaranteed under 
this section shall- 
(1) correspond to a specified national interest rate index 
approved by the Secretary, information on which is readily accessible 
to mortgagors from generally available published 
sources; 
(2) be made by adjusting the monthly payment on an annual basis; 

591 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3708 

(3) in the case of the initial contract interest rate adjustment- 
(A) if the initial contract interest rate remained fixed 
for less than 5 years, be limited to a maximum increase or 
decrease of 1 percentage point; or 
(B) if the initial contract interest rate remained fixed 
for 5 years or more, be limited to a maximum increase or 
decrease of such percentage point or points as the Secretary may 
prescribe; 
(4) in the case of any single annual interest rate adjustment after the 
initial contract interest rate adjustment, be limited to a maximum 
increase or decrease of such percentage 
points as the Secretary may prescribe; and 
(5) be limited, over the term of the mortgage, to a maximum increase of 
such number of percentage points as the Secretary shall prescribe for 
purposes of this section. 
(d) The Secretary shall promulgate underwriting standards for 
loans guaranteed under this section, taking into account- 
(1) the status of the interest rate index referred to in subsection 
(c)(1) and available at the time an underwriting decision is made, 
regardless of the actual initial rate offered by the 
lender; 
(2) the maximum and likely amounts of increases in mortgage payments 
that the loans would require; 
(3) the underwriting standards applicable to adjustable 
rate mortgages insured under title II of the National Housing 
Act; and 
(4) such other factors as the Secretary finds appropriate. 
(e) The Secretary shall require that the mortgagee make available to 
the mortgagor, at the time of loan application, a written explanation 
of the features of the adjustable rate mortgage, including 
a hypothetical payment schedule that displays the maximum potential 
increases in monthly payments to the mortgagor over the 
first five years of the mortgage term. 
(Added Pub. L. 107-330, title III, Sec. 303(a), Dec. 6, 2002, 116 Stat. 
2825; amended 
Pub. L. 108-454, title IV, Sec. 405(a), (b), Dec. 10, 2004, 118 Stat. 
3616; Pub. L. 
109-233, title I, Sec. 102, June 15, 2006, 120 Stat. 399; Pub. L. 110-
389, title V, 
Sec. 505(b), Oct. 10, 2008, 122 Stat. 4176.) 

ï¿½ 3708. Authority to buy down interest rates: pilot program 

(a) In order to enable the purchase of housing in areas where 
the supply of suitable military housing is inadequate, the Secretary 
may conduct a pilot program under which the Secretary may make 
periodic or lump sum assistance payments on behalf of an eligible 
veteran for the purpose of buying down the interest rate on a loan 
to that veteran that is guaranteed under this chapter for a purpose 
described in paragraph (1), (6), or (10) of section 3710(a) of this 
title. 
(b) An individual is an eligible veteran for the purposes of this 
section if- 
(1) the individual is a veteran, as defined in section 
3701(b)(4) of this title; 
(2) the individual submits an application for a loan guaranteed under 
this chapter within one year of an assignment of 

Sec. 3710 CH. 37-HOUSING AND SMALL BUSINESS LOANS 592 

the individual to duty at a military installation in the United 
States designated by the Secretary of Defense as a housing 
shortage area; 

(3) at the time the loan referred to in subsection (a) is 
made, the individual is an enlisted member, warrant officer, or 
an officer (other than a warrant officer) at a pay grade of O3 or 
below; 
(4) the individual has not previously used any of the individualï¿½s 
entitlement to housing loan benefits under this chapter; and 
(5) the individual receives comprehensive prepurchase 
counseling from the Secretary (or the designee of the Secretary) before 
making application for a loan guaranteed under 
this chapter. 
(c) Loans with respect to which the Secretary may exercise the 
buy down authority under subsection (a) shall- 
(1) provide for a buy down period of not more than three 
years in duration; 
(2) specify the maximum and likely amounts of increases 
in mortgage payments that the loans would require; and 
(3) be subject to such other terms and conditions as the 
Secretary may prescribe by regulation. 
(d) The Secretary shall promulgate underwriting standards for 
loans for which the interest rate assistance payments may be made 
under subsection (a). Such standards shall be based on the interest 
rate for the second year of the loan. 
(e) The Secretary or lender shall provide comprehensive 
prepurchase counseling to eligible veterans explaining the features 
of interest rate buy downs under subsection (a), including a 
hypothetical payment schedule that displays the increases in monthly 
payments to the mortgagor over the first five years of the mortgage 
term. For the purposes of this subsection, the Secretary may assign 
personnel to military installations referred to in subsection (b)(2). 
(f) There is authorized to be appropriated $3,000,000 annually 
to carry out this section. 
(g) The Secretary may not guarantee a loan under this chapter 
after September 30, 1998, on which the Secretary is obligated to 
make payments under this section. 
(Added Pub. L. 104-106, div. B, title XXVIII, Sec. 2822(b)(1), Feb. 10, 
1996, 110 
Stat. 556.) 

SUBCHAPTER II-LOANS 

ï¿½ 3710. Purchase or construction of homes 

(a) Except as provided in section 3704(c)(2) of this title, any 
loan to a veteran, if made pursuant to the provisions of this chapter, 
is automatically guaranteed if such loan is for one or more of 
the following purposes: 
(1) To purchase or construct a dwelling to be owned and 
occupied by the veteran as a home. 
(2) To purchase a farm on which there is a farm residence 
to be owned and occupied by the veteran as the veteranï¿½s 
home. 

593 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3710 

(3) To construct on land owned by the veteran a farm residence to be 
occupied by the veteran as the veteranï¿½s home. 
(4) To repair, alter, or improve a farm residence or other 
dwelling owned by the veteran and occupied by the veteran as 
the veteranï¿½s home. 
(5) To refinance existing mortgage loans or other liens 
which are secured of record on a dwelling or farm residence 
owned and occupied by the veteran as the veteranï¿½s home. 
(6) To purchase a one-family residential unit in a condominium housing 
development or project, if such development or 
project is approved by the Secretary under criteria which the 
Secretary shall prescribe in regulations. 
(7) To improve a dwelling or farm residence owned by the 
veteran and occupied by the veteran as the veteranï¿½s home 
through energy efficiency improvements, as provided in subsection (d). 
(8) To refinance in accordance with subsection (e) of this 
section an existing loan guaranteed, insured, or made under 
this chapter. 
(9)(A)(i) To purchase a manufactured home to be permanently affixed to 
a lot that is owned by the veteran. 

(ii) To purchase a manufactured home and a lot to which 
the home will be permanently affixed. 
(B)(i) To refinance, in accordance with the terms and conditions 
applicable under the provisions of subsection (e) of this 
section (other than paragraph (1)(E) of such subsection) to the 
guaranty of a loan for the purpose specified in clause (8) of this 
subsection, an existing loan guaranteed, insured, or made 
under this chapter that is secured by a manufactured home 
permanently affixed to a lot that is owned by the veteran. 

(ii) To refinance, in accordance with section 3712(a)(5) of 
this title, an existing loan that was made for the purchase of, 
and that is secured by, a manufactured home that is permanently affixed 
to a lot and to purchase the lot to which the 
manufactured home is affixed. 
(10) To purchase a dwelling to be owned and occupied by 
the veteran as a home and make energy efficiency improvements, as 
provided in subsection (d). 
(11) To refinance in accordance with subsection (e) an existing loan 
guaranteed, insured, or made under this chapter, 
and to improve the dwelling securing such loan through energy 
efficiency improvements, as provided in subsection (d). 
(12) With respect to a loan guaranteed after the date of the 
enactment of this paragraph and before the date that is five 
years after that date, to purchase stock or membership in a cooperative 
housing corporation for the purpose of entitling the 
veteran to occupy for dwelling purposes a single family residential unit 
in a development, project, or structure owned or 
leased by such corporation, in accordance with subsection (h). 
If there is an indebtedness which is secured by a lien against land 
owned by the veteran, the proceeds of a loan guaranteed under this 
section or made under section 3711 of this title for construction of 
a dwelling or farm residence on such land may be used also to liq


Sec. 3710 CH. 37-HOUSING AND SMALL BUSINESS LOANS 594 

uidate such lien, but only if the reasonable value of the land is 
equal to or greater than the amount of the lien. 

(b) No loan may be guaranteed under this section or made 
under section 3711 of this title unless- 
(1) the proceeds of such loan will be used to pay for the 
property purchased, constructed, or improved; 
(2) the contemplated terms of payment required in any 
mortgage to be given in part payment of the purchase price or 
the construction cost bear a proper relation to the veteranï¿½s 
present and anticipated income and expenses; 
(3) the veteran is a satisfactory credit risk, as determined 
in accordance with the credit underwriting standards established 
pursuant to subsection (g) of this section; 
(4) the nature and condition of the property is such as to 
be suitable for dwelling purposes; 
(5) except in the case of a loan described in clause (7) or 
(8) of this subsection, the loan to be paid by the veteran for 
such property or for the cost of construction, repairs, or alterations, 
does not exceed the reasonable value thereof as determined pursuant to 
section 3731 of this title; 
(6) if the loan is for repair, alteration, or improvement of 
property, such repair, alteration, or improvement substantially 
protects or improves the basic livability or utility of such property; 
(7) in the case of a loan (other than a loan made for a purpose 
specified in subsection (a)(8) of this section) that is made 
to refinance- 
(A) a construction loan, 
(B) an installment land sales contract, or 
(C) a loan assumed by the veteran that provides for a 
lower interest rate than the loan being refinanced, 
the amount of the loan to be guaranteed or made does not exceed the 
lesser of- 

(i) the reasonable value of the dwelling or farm residence securing the 
loan, as determined pursuant to section 
3731 of this title; or 
(ii) the sum of the outstanding balance on the loan to 
be refinanced and the closing costs (including discounts) 
actually paid by the veteran, as specified by the Secretary 
in regulations; and 
(8) in the case of a loan to refinance a loan (other than a 
loan or installment sales contract described in clause (7) of this 
subsection or a loan made for a purpose specified in subsection 
(a)(8) of this section), the amount of the loan to be guaranteed 
or made does not exceed 100 percent of the reasonable value 
of the dwelling or farm residence securing the loan, as determined 
pursuant to section 3731 of this title. 
ï¿½(c) Repealed. Pub. L. 100-198, Sec. 3(a)(2), Dec. 21, 1987, 101 
Stat. 1315.ï¿½ 

(d)(1) The Secretary shall carry out a program to demonstrate 
the feasibility of guaranteeing loans for the acquisition of an existing 
dwelling and the cost of making energy efficiency improvements to the 
dwelling or for energy efficiency improvements to a 
dwelling owned and occupied by a veteran. A loan may be guaran


595 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3710 

teed under this subsection only if it meets the requirements of this 
chapter, except as those requirements are modified by this subsection. 

(2) The cost of energy efficiency measures that may be financed 
by a loan guaranteed under this section may not exceed the greater 
of- 
(A) the cost of the energy efficiency improvements, up to 
$3,000; or 
(B) $6,000, if the increase in the monthly payment for 
principal and interest does not exceed the likely reduction in 
monthly utility costs resulting from the energy efficiency improvements. 
(3) Notwithstanding the provisions of section 3703(a)(1)(A) of 
this title, any loan guaranteed under this subsection shall be 
guaranteed in an amount equal to the sum of- 
(A) the guaranty that would be provided under those provisions for the 
dwelling without the energy efficiency improvements; and 
(B) an amount that bears the same relation to the cost of 
the energy efficiency improvements as the guaranty referred to 
in subparagraph (A) bears to the amount of the loan minus the 
cost of such improvements. 
(4) The amount of the veteranï¿½s entitlement, calculated in accordance 
with section 3703(a)(1)(B) of this title, shall not be affected by the 
amount of the guaranty referred to in paragraph 
(3)(B). 
(5) The Secretary shall take appropriate actions to notify eligible 
veterans, participating lenders, and interested realtors of the 
availability of loan guarantees under this subsection and the procedures 
and requirements that apply to the obtaining of such guarantees. 
(6) For the purposes of this subsection: 
(A) The term ï¿½ï¿½energy efficiency improvementï¿½ï¿½ includes a 
solar heating system, a solar heating and cooling system, or a 
combined solar heating and cooling system, and the application 
of a residential energy conservation measure. 
(B) The term ï¿½ï¿½solar heatingï¿½ï¿½ has the meaning given such 
term in section 3(1) of the Solar Heating and Cooling Demonstration 
Act of 1974 (42 U.S.C. 5502(1)) and, in addition, includes a passive 
system based on conductive, convective, or radiant energy transfer. 
(C) The terms ï¿½ï¿½solar heating and coolingï¿½ï¿½ and ï¿½ï¿½combined 
solar heating and coolingï¿½ï¿½ have the meaning given such terms 
in section 3(2) of the Solar Heating and Cooling Demonstration 
Act of 1974 (42 U.S.C. 5502(2)) and, in addition, include a passive 
system based on conductive, convective, or radiant energy 
transfer. 
(D) The term ï¿½ï¿½passive systemï¿½ï¿½ includes window and skylight glazing, 
thermal floors, walls, and roofs, movable insulation panels (when in 
conjunction with glazing), portions of a 
residential structure that serve as solar furnaces so as to add 
heat to the structure, double-pane window insulation, and such 
other energy-related components as are determined by the Sec

Sec. 3710 CH. 37-HOUSING AND SMALL BUSINESS LOANS 596 

retary to enhance the natural transfer of energy for the purpose of 
heating or heating and cooling a residence. 

(E) The term ï¿½ï¿½residential energy conservation measureï¿½ï¿½ 
means- 
(i) caulking and weatherstripping of all exterior doors 
and windows; 
(ii) furnace efficiency modifications limited to- 
(I) replacement burners, boilers, or furnaces designed to reduce the 
firing rate or to achieve a reduction in the amount of fuel consumed as 
a result of increased combustion efficiency, 
(II) devices for modifying flue openings which will 
increase the efficiency of the heating system, and 
(III) electrical or mechanical furnace ignition systems which replace 
standing gas pilot lights; 
(iii) clock thermostats; 
(iv) ceiling, attic, wall, and floor insulation; 
(v) water heater insulation; 
(vi) storm windows and doors; 
(vii) heat pumps; and 
(viii) such other energy conservation measures as the 
Secretary may identify for the purposes of this subparagraph. 
(e)(1) For a loan to be guaranteed for the purpose specified in 
subsection (a)(8) or for the purpose specified in subsection (a)(11) 
of this section- 

(A) the interest rate of the loan must be less than the interest rate 
of the loan being refinanced or, in a case in which 
the loan is a fixed rate loan and the loan being refinanced is 
an adjustable rate loan, the loan bears interest at a rate that 
is agreed upon by the veteran and the mortgagee; 
(B) the loan must be secured by the same dwelling or farm 
residence as was the loan being refinanced; 
(C) the amount of the loan may not exceed- 
(i) an amount equal to the sum of the balance of the 
loan being refinanced and such closing costs (including any 
discount permitted pursuant to section 3703(c)(3)(A) of this 
title) as may be authorized by the Secretary (under regulations which 
the Secretary shall prescribe) to be included in 
the loan; or 
(ii) in the case of a loan for the purpose specified in 
subsection (a)(11), an amount equal to the sum of the 
amount referred to with respect to the loan under clause 
(i) and the amount specified under subsection (d)(2); 
(D) notwithstanding section 3703(a)(1) of this title, the 
amount of the guaranty of the loan may not exceed the greater 
of (i) the original guaranty amount of the loan being refinanced, or 
(ii) 25 percent of the loan; 
(E) the term of the loan may not exceed the original term 
of the loan being refinanced by more than 10 years; and 
(F) the veteran must own the dwelling or farm residence 
securing the loan and- 

597 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3710 

(i) must occupy such dwelling or residence as such veteranï¿½s home; 
(ii) must have previously occupied such dwelling or 
residence as such veteranï¿½s home and must certify, in such 
form as the Secretary shall require, that the veteran has 
previously so occupied such dwelling or residence; or 
(iii) in any case in which a veteran is in active duty 
status as a member of the Armed Forces and is unable to 
occupy such residence or dwelling as a home because of 
such status, the spouse of the veteran must occupy, or 
must have previously occupied, such dwelling or residence 
as such spouseï¿½s home and must certify such occupancy in 
such form as the Secretary shall require. 
(2) A loan to a veteran may be guaranteed by the Secretary 
under this chapter for the purpose specified in clause (8) of 
subsection (a) of this section without regard to the amount of 
outstanding guaranty entitlement available for use by such veteran, 
and the amount of such veteranï¿½s guaranty entitlement shall not 
be charged as a result of any guaranty provided for such purpose. 
For purposes of section 3702(b) of this title, such loan shall be 
deemed to have been obtained with the guaranty entitlement used 
to obtain the loan being refinanced. 
(3) If a veteran is deceased and if such veteranï¿½s surviving 
spouse was a co-obligor under an existing loan guaranteed, insured, 
or made under this chapter, such surviving spouse shall, only for 
the purpose specified in subsection (a)(8) of this section, be deemed 
to be a veteran eligible for benefits under this chapter. 
(f)(1) For a loan to be guaranteed for the purpose specified in 
subclause (A)(ii) or (B)(ii) of subsection (a)(9) of this section, the 
purchase of (or the refinancing of a loan secured by) the manufactured 
home and the lot for that home shall be considered as one 
loan and must comply with such criteria as may be prescribed by 
the Secretary in regulations. 

(2) A loan may not be guaranteed for the purposes of subsection (a)(9) 
of this section unless the manufactured home purchased, upon being 
permanently affixed to the lot, is considered to 
be real property under the laws of the State where the lot is located. 
(g)(1) For the purposes of this subsection, the term ï¿½ï¿½veteranï¿½ï¿½, 
when used with respect to a loan guaranteed or to be guaranteed 
under this chapter, includes the veteranï¿½s spouse if the spouse is 
jointly liable with the veteran under the loan. 

(2) For the purpose of determining whether a veteran meets 
the standards referred to in subsection (b)(3) of this section and 
section 3712(e)(2) of this title, the Secretary shall prescribe 
regulations which establish- 
(A) credit underwriting standards to be used in evaluating 
loans to be guaranteed under this chapter; and 
(B) standards to be used by lenders in obtaining credit information and 
processing loans to be guaranteed under this 
chapter. 
(3) In the regulations prescribed under paragraph (2) of this 
subsection, the Secretary shall establish standards that include- 

Sec. 3710 CH. 37-HOUSING AND SMALL BUSINESS LOANS 598 

(A) debt-to-income ratios to apply in the case of the veteran applying 
for the loan; 
(B) criteria for evaluating the reliability and stability of 
the income of the veteran applying for the loan; and 
(C) procedures for ascertaining the monthly income required by the 
veteran to meet the anticipated loan payment 
terms. 
If the procedures described in clause (C) of this paragraph include 
standards for evaluating residual income, the Secretary shall, in 
establishing such standards, give appropriate consideration to 
State statistics (in States as to which the Secretary determines 
that such statistics are reliable) pertinent to residual income and 
the cost of living in the State in question rather than in a larger 
region. 

(4)(A) Any lender making a loan under this chapter shall certify, in 
such form as the Secretary shall prescribe, that the lender 
has complied with the credit information and loan processing 
standards established under paragraph (2)(B) of this subsection, 
and that, to the best of the lenderï¿½s knowledge and belief, the loan 
meets the underwriting standards established under paragraph 
(2)(A) of this subsection. 

(B) Any lender who knowingly and willfully makes a false certification 
under subparagraph (A) of this paragraph shall be liable 
to the United States Government for a civil penalty equal to two 
times the amount of the Secretaryï¿½s loss on the loan involved or to 
another appropriate amount, not to exceed $10,000, whichever is 
greater. All determinations necessary to carry out this subparagraph 
shall be made by the Secretary. 
(5) Pursuant to regulations prescribed to carry out this paragraph, 
the Secretary may, in extraordinary situations, waive the 
application of the credit underwriting standards established under 
paragraph (2) of this subsection when the Secretary determines, 
considering the totality of circumstances, that the veteran is a 
satisfactory credit risk. 
(h)(1) A loan may not be guaranteed under subsection (a)(12) 
unless- 

(A) the development, project, or structure of the cooperative housing 
corporation complies with such criteria as the Secretary prescribes 
in regulations; and (B) the dwelling unit that the purchase of stock or 
membership in the development, project, or structure of the cooperative 
housing corporation entitles the purchaser to occupy is a 
single family residential unit. 
(2) In this subsection, the term ï¿½ï¿½cooperative housing corporationï¿½ï¿½ has 
the meaning given such term in section 216(b)(1) of the 
Internal Revenue Code of 1986. 
(3) When applying the term ï¿½ï¿½value of the propertyï¿½ï¿½ to a loan 
guaranteed under subsection (a)(12), such term means the appraised value 
of the stock or membership entitling the purchaser to the permanent 
occupancy of the dwelling unit in the development, project, or structure 
of the cooperative housing corporation. (Pub. L. 85-857, Sept. 2, 1958, 
72 Stat. 1207, Sec. 1810; Pub. L. 90-301, Sec. 1(a), 2(a), May 7, 1968, 
82 Stat. 113; Pub. L. 91-506, Sec. 3, Oct. 23, 1970, 84 Stat. 1108; 
Pub. L. 93-569, Sec. 3, Dec. 31, 1974, 88 Stat. 1864; Pub. L. 94-324, 
Sec. 7(11), 


599 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3711 

June 30, 1976, 90 Stat. 721; Pub. L. 95-476, title I, Sec. 104, 105(a), 
Oct. 18, 1978, 92 Stat. 1498, 1499; Pub. L. 96-385, title IV, Sec. 
401(a), 402(a), Oct. 7, 1980, 94 Stat. 1532, 1533; Pub. L. 98-223, 
title II, Sec. 205(a), Mar. 2, 1984, 98 Stat. 42; Pub. L. 99-576, title 
IV, Sec. 402(a), (b), Oct. 28, 1986, 100 Stat. 3280; Pub. L. 100-198, 
Sec. 3(a)(2), 7(a), (c), 8(a)(2), 11(b), 13, Dec. 21, 1987, 101 Stat. 
1315, 1318-1320, 1325; Pub. L. 100-322, title IV, Sec. 415(c)(4), May 
20, 1988, 102 Stat. 551; Pub. L. 101-237, title III, Sec. 309, 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2075, 2077; renumbered Sec. 3710 and amended 
Pub. L. 102-83, Sec. 4(a)(2)(A)(iv), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 403, 406; Pub. L. 102-547, Sec. 6(1), 9(a), (b), Oct. 28, 1992, 106 
Stat. 3636, 3641, 3642; Pub. L. 103-446, title IX, Sec. 904(a), (b), 
905, Nov. 2, 1994, 
108 Stat. 4676, 4677; Pub. L. 104-110, title I, Sec. 101(e), Feb. 13, 
1996, 110 Stat. 768; Pub. L. 109-461, title V, Sec. 501, Dec. 22, 2006, 
120 Stat. 3431; Pub. L. 110-389, title V, Sec. 504(b), Oct. 10, 2008, 
122 Stat. 4176.) 
ï¿½ 3711. Direct loans to veterans 

(a) The Congress finds that housing credit for purposes specified in 
section 3710 or 3712 of this title is not and has not been generally 
available to veterans living in rural areas, or in small cities and 
towns not near large metropolitan areas. It is therefore the 
purpose of this section to provide housing credit for veterans living 
in such rural areas and such small cities and towns. 
(b) Whenever the Secretary finds that private capital is not 
generally available in any rural area or small city or town for the 
financing of loans guaranteed for purposes specified in section 3710 
or 3712 of this title, the Secretary shall designate such rural area 
or small city or town as a ï¿½ï¿½housing credit shortage areaï¿½ï¿½. The 
Secretary shall, with respect to any such area, make, or enter into 
commitments to make, to any veteran eligible under this title, a 
loan for any or all of the purposes described in section 3710(a) or 
3712 of this title (other than the refinancing of a loan under section 
3710(a)(8) or 3712(a)(1)(F)). 
(c) No loan may be made under this section to a veteran unless 
the veteran shows to the satisfaction of the Secretary that- 
(1) the veteran is unable to obtain from a private lender 
in such housing credit shortage area, at an interest rate not in 
excess of the rate authorized for guaranteed home loans or 
manufactured home loans, as appropriate, a loan for such purpose for 
which the veteran is qualified under section 3710 or 
3712 of this title, as appropriate; and 
(2) the veteran is unable to obtain a loan for such purpose 
from the Secretary of Agriculture under title III of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) 
or title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.). 
(d)(1) Loans made under this section shall bear interest at a 
rate determined by the Secretary, not to exceed the rate authorized 
for guaranteed home loans, or manufactured home loans, as appropriate, 
and shall be subject to such requirements or limitations prescribed 
for loans guaranteed under this title as may be applicable. 
(2)(A) Except for any loan made under this chapter for the purposes 
described in section 3712 of this title, the original principal 
amount of any loan made under this section shall not exceed an 
amount which bears the same ratio to $33,000 as the amount of 
guaranty to which the veteran is entitled under section 3710 of this 
title at the time the loan is made bears to $36,000; and the guaranty 
entitlement of any veteran who heretofore or hereafter has 
been granted a loan under this section shall be charged with an 


Sec. 3711 CH. 37-HOUSING AND SMALL BUSINESS LOANS 600 

amount which bears the same ratio to $36,000 as the amount of 
the loan bears to $33,000. 

(B) The original principal amount of any loan made under this 
section for the purposes described in section 3712 of this title shall 
not exceed the amount that bears the same ratio to $33,000 as the 
amount of guaranty to which the veteran is entitled under such 
section at the time the loan is made bears to $20,000. The amount 
of the guaranty entitlement for purposes specified in section 3710 
of this title of any veteran who is granted a loan under this section, 
or who before October 18, 1978, was granted a loan under this section, 
shall be charged with the amount that bears the same ratio 
to $20,000 as the amount of the loan bears to $33,000. 
(3) No veteran may obtain loans under this section aggregating 
more than $33,000. 
(e) Loans made under this section shall be repaid in monthly 
installments, except that in the case of any such loan made for any 
of the purposes described in paragraphs (2), (3), or (4) of section 
3710(a) of this title, the Secretary may provide that such loan shall 
be repaid in quarterly, semiannual, or annual installments. 
(f) In connection with any loan under this section, the Secretary may 
make advances in cash to pay taxes and assessments on the real estate, 
to provide for repairs, alterations, and improvements, and to meet the 
incidental expenses of the transaction. The 
Secretary shall determine the expenses incident to origination of 
loans made under this section, which expenses, or a reasonable flat 
allowance in lieu thereof, shall be paid by the veteran in addition 
to the loan closing costs. 
(g) The Secretary may sell, and shall offer for sale, to any person or 
entity approved for such purpose by the Secretary, any loan 
made under this section at a price which the Secretary determines 
to be reasonable under the conditions prevailing in the mortgage 
market when the agreement to sell the loan is made; and shall 
guarantee any loan thus sold subject to the same conditions, terms, 
and limitations which would be applicable were the loan guaranteed for 
purposes specified in section 3710 or 3712 of this title, as 
appropriate. 
(h) The Secretary may exempt dwellings constructed through 
assistance provided by this section from the minimum land planning and 
subdivision requirements prescribed pursuant to subsection (a) of
section 3704 of this title, and with respect to such dwellings may 
prescribe special minimum land planning and subdivision requirements 
which shall be in keeping with the general housing facilities in the 
locality but shall require that such dwellings meet minimum 
requirements of structural soundness and general acceptability. (i) The 
Secretary is authorized, without regard to the provisions of subsections 
(a), (b), and (c) of this section, to make or enter into a commitment to 
make a loan to any veteran to assist the veteran in acquiring a 
specially adapted housing unit authorized under chapter 21 of this 
title, if the veteran is determined to be eligible for the benefits of 
such chapter 21, and is eligible for loan 
guaranty benefits under this chapter. 
(j)(1) If any builder or sponsor proposes to construct one or 
more dwellings in a housing credit shortage area, or in any area 


601 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3711 

for a veteran who is determined to be eligible for assistance in 
acquiring a specially adapted housing unit under chapter 21 of this 
title, the Secretary may enter into commitment with such builder 
or sponsor, under which funds available for loans under this section 
will be reserved for a period not in excess of three months, or 
such longer period as the Secretary may authorize to meet the 
needs in any particular case, for the purpose of making loans to 
veterans to purchase such dwellings. Such commitment may not be 
assigned or transferred except with the written approval of the 
Secretary. The Secretary shall not enter into any such commitment 
unless such builder or sponsor pays a nonrefundable commitment 
fee to the Secretary in an amount determined by the Secretary, not 
to exceed 2 percent of the funds reserved for such builder or sponsor. 

(2) Whenever the Secretary finds that a dwelling with respect 
to which funds are being reserved under this subsection has been 
sold, or contracted to be sold, to a veteran eligible for a direct loan 
under this section, the Secretary shall enter into a commitment to 
make the veteran a loan for the purchase of such dwelling. With 
respect to any loan made to an eligible veteran under this subsection, 
the Secretary may make advances during the construction 
of the dwelling, up to a maximum in advances of (A) the cost of 
the land plus (B) 80 percent of the value of the construction in 
place. 
(k) Without regard to any other provision of this chapter, the 
Secretary may take or cause to be taken such action as in the 
Secretaryï¿½s judgment may be necessary or appropriate for or in 
connection with the custody, management, protection, and realization or 
sale of investments under this section, may determine the Secretaryï¿½s 
necessary expenses and expenditures, and the manner in 
which the same shall be incurred, allowed and paid, may make 
such rules, regulations, and orders as the Secretary may deem necessary 
or appropriate for carrying out the Secretaryï¿½s functions 
under this section and, except as otherwise expressly provided in 
this chapter, may employ, utilize, compensate, and, to the extent 
not inconsistent with the Secretaryï¿½s basic responsibilities under 
this chapter, delegate any of the Secretaryï¿½s functions under this 
section to such persons and such corporate or other agencies, including
agencies of the United States, as the Secretary may designate. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1208, Sec. 1811; Pub. L. 
86-665, Sec. 2, July 
14, 1960, 74 Stat. 531; Pub. L. 87-84, Sec. 2, July 6, 1961, 75 Stat. 
201; Pub. L. 88-402, Aug. 4, 1964, 78 Stat. 380; Pub. L. 89-358, Sec. 
5(e), Mar. 3, 1966, 80 Stat. 26; Pub. L. 90-77, title IV, Sec. 404, 
Aug. 31, 1967, 81 Stat. 190; Pub. L. 90-301, Sec. 1(b), May 7, 1968, 82 
Stat. 113; Pub. L. 91-22, Sec. 3, June 6, 1969, 83 Stat. 32; Pub. L. 
91-506, Sec. 4, Oct. 23, 1970, 84 Stat. 1109; Pub. L. 92-66, Aug. 5, 1971, 
85 Stat. 173; Pub. L. 93-569, Sec. 4, Dec. 31, 1974, 88 Stat. 1864; 
Pub. L. 94-324, Sec. 3, 7(12)-(15), June 30, 1976, 90 Stat. 720, 721; 
Pub. L. 95-476, title I, Sec. 105(b), Oct. 18, 1978, 92 Stat. 1499; Pub. 
L. 96-385, title IV, Sec. 401(c)(2), 402(b), Oct. 7, 1980, 94 Stat. 1533; 
Pub. L. 97-295, Sec. 4(65), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 97-306, 
title IV, Sec. 406(c)(1), Oct. 14, 1982, 96 Stat. 1445; Pub. L. 100-198, 
Sec. 3(c), Dec. 21, 1987, 101 Stat. 1316; Pub. L. 100-322, title IV, 
Sec. 415(c)(5), (d)(2) May 20, 1988, 102 Stat. 551, 552; Pub. L. 
101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 3711 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-368, title VI, Sec. 
602(e)(1)(B), Nov. 11, 1998, 112 Stat. 3346.) 


Sec. 3712 CH. 37-HOUSING AND SMALL BUSINESS LOANS 602 

ï¿½ 3712. Loans to purchase manufactured homes and lots 

(a)(1) Notwithstanding any other provision of this chapter, any 
loan to a veteran eligible for the housing loan benefits of this chapter, 
if made pursuant to the provisions of this section, may be guaranteed if 
such loan is for one of the following purposes: 

(A) To purchase a lot on which to place a manufactured 
home already owned by the veteran. 
(B) To purchase a single-wide manufactured home. 
(C) To purchase a single-wide manufactured home and a 
lot on which to place such home. 
(D) To purchase a double-wide manufactured home. 
(E) To purchase a double-wide manufactured home and a 
lot on which to place such home. 
(F) To refinance in accordance with paragraph (4) of this 
subsection an existing loan guaranteed, insured, or made 
under this section. 
(G) To refinance in accordance with paragraph (5) of this 
subsection an existing loan that was made for the purchase of, 
and that is secured by, a manufactured home and to purchase 
a lot on which such manufactured home is or will be placed. 
(2) A loan for any of the purposes described in paragraph (1) 
of this subsection (other than the refinancing under clause (F) of 
such paragraph of an existing loan) may include an amount determined by 
the Secretary to be appropriate to cover the cost of necessary 
preparation of a lot already owned or to be acquired by the 
veteran, including the costs of installing utility connections and 
sanitary facilities, of paving, and of constructing a suitable pad for 
the manufactured home. 
(3) Any loan made for the purposes described in clause (C), (E), 
or (G) of paragraph (1) of this subsection shall be considered as 
part of one loan. The transaction may be evidenced by a single loan 
instrument or by separate loan instruments for (A) that portion of 
the loan which finances the purchase of the manufactured home, 
and (B) that portion of the loan which finances the purchase of the 
lot and the necessary preparation of such lot. 
(4)(A) For a loan to be guaranteed for the purpose specified in 
clause (F) of paragraph (1) of this subsection- 

(i) the interest rate of the loan must be less than the interest rate 
of the loan being refinanced; 
(ii) the loan must be secured by the same manufactured 
home or manufactured-home lot, or manufactured home and 
manufactured-home lot, as was the loan being refinanced; 
(iii) the amount of the loan may not exceed an amount 
equal to the sum of the balance of the loan being refinanced 
and such closing costs (including any discount permitted pursuant to 
section 3703(c)(3)(A) of this title) as may be authorized by the 
Secretary, under regulations which the Secretary 
shall prescribe, to be included in such loan; 
(iv) notwithstanding section 3703(a)(1) of this title, the 
amount of the guaranty of the loan may not exceed the greater 
of (I) the original guaranty amount of the loan being refinanced, or 
(II) 25 percent of the loan; 

603 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3712 

(v) the term of the loan may not exceed the original term 
of the loan being refinanced; 
(vi) the veteran must own the manufactured home, or the 
manufactured-home lot, or the manufactured home and the 
manufactured-home lot, securing the loan and- 
(I) must occupy the home, a manufactured home on 
the lot, or the home and the lot, securing the loan; 
(II) must have previously occupied the home, a manufactured home on the 
lot, or the home and the lot, securing 
the loan as the veteranï¿½s home and must certify, in such 
form as the Secretary shall require, that the veteran has 
previously so occupied the home (or such a home on the 
lot); or 
(III) in any case in which a veteran is in active duty 
status as a member of the Armed Forces and is unable to 
occupy the home, a manufactured home on the lot, or the 
home and the lot, as a home because of such status, the 
spouse of the veteran must occupy, or must have previously occupied, 
the manufactured home on the lot, or the 
home and the lot, as such spouseï¿½s home and must certify 
such occupancy in such form as the Secretary shall require. 
(B) A loan to a veteran may be guaranteed by the Secretary 
under this chapter for the purpose specified in clause (F) of paragraph 
(1) of this subsection without regard to the amount of outstanding 
guaranty entitlement available for use by such veteran, 
and the amount of such veteranï¿½s guaranty entitlement shall not 
be charged as a result of any guaranty provided for such purpose. 
For purposes of section 3702(b) of this title, such loan shall be 
deemed to have been obtained with the guaranty entitlement used 
to obtain the loan being refinanced. 
(C) If a veteran is deceased and if such veteranï¿½s surviving 
spouse was a co-obligor under an existing loan previously guaranteed, 
insured, or made for purposes specified in this section, such 
surviving spouse shall, only for the purpose specified in clause (F) 
of paragraph (1) of this subsection, be deemed to be a veteran eligible 
for benefits under this chapter. 
(5)(A) For a loan to be guaranteed for the purpose specified in 
paragraph (1)(G) of this subsection or section 3710(a)(9)(B)(ii) of 
this title- 

(i) the loan must be secured by the same manufactured 
home as was the loan being refinanced and such manufactured 
home must be owned and occupied by the veteran (except as 
provided in section 3704(c)(2) of this title) as such veteranï¿½s 
home; and 
(ii) the amount of the loan may not exceed an amount 
equal to the sum of- 
(I) the purchase price of the lot, 
(II) the amount (if any) determined by the Secretary 
to be appropriate under paragraph (2) of this subsection to 
cover the cost of necessary preparation of such lot, 
(III) the balance of the loan being refinanced, and 
(IV) such closing costs (including any discount permitted pursuant to 
section 3703(c)(3)(E) of this title) as 

Sec. 3712 CH. 37-HOUSING AND SMALL BUSINESS LOANS 604 

may be authorized by the Secretary, under regulations 
which the Secretary shall prescribe, to be included in such 
loan. 

(B) When a loan is made to a veteran for the purpose specified 
in paragraph (1)(G) of this subsection or section 3710(a)(9)(B)(ii) of 
this title, and the loan being refinanced was guaranteed, insured, 
or made under this section, the portion of the loan made for the 
purpose of refinancing such loan may be guaranteed by the Secretary 
under this chapter without regard to the amount of outstanding guaranty 
entitlement available for use by such veteran, 
and the amount of such veteranï¿½s guaranty entitlement shall not 
be charged as a result of any guaranty provided for such portion 
of such loan. For the purposes of section 3702(b) of this title, such 
portion of such loan shall be deemed to have been obtained with 
the guaranty entitlement used to obtain the loan being refinanced. 
(b)(1) Use of entitlement for purposes specified in this section 
for the purchase of a manufactured home unit shall preclude the 
use of remaining entitlement for the purchase of an additional 
manufactured home unit until the unit which secured the loan has 
been disposed of by the veteran or has been destroyed by fire or 
other natural hazard. 

(2) The Secretary shall restore entitlement to all housing loan 
benefits under this chapter for the veteran when the conditions 
prescribed in section 3702(b) of this title have been met. 
(c)(1) Loans for any of the purposes authorized by subsection 

(a) of this section shall be submitted to the Secretary for approval 
prior to the closing of the loan, except that the Secretary may exempt 
any lender of a class listed in section 3702(d) of this title from 
compliance with such prior approval requirement if the Secretary 
determines that the experience of such lender or class of lenders 
in manufactured home financing warrants such exemption. 
(2) Upon determining that a loan submitted for prior approval 
is eligible for guaranty for purposes specified in this section, the 
Secretary shall issue a commitment to guarantee such loan and 
shall thereafter guarantee the loan when made if such loan qualifies 
therefor in all respects. 
(3)(A) The Secretaryï¿½s guaranty may not exceed the lesser of (i) 
the lesser of $20,000 or 40 percent of the loan, or (ii) the maximum 
amount of the guaranty entitlement available to the veteran as 
specified in paragraph (4) of this subsection. 

(B) A claim under the Secretaryï¿½s guaranty shall, at the election of 
the holder of a loan, be made by the filing of an accounting 
with the Secretary- 
(i) within a reasonable time after the receipt by such holder of an 
appraisal by the Secretary of the value of the security 
for the loan; or 
(ii) after liquidation of the security for the loan. 
(C) If the holder of a loan applies for payment of a claim under 
clause (i) of subparagraph (B) of this paragraph, the amount of 
such claim payable by the Secretary shall be the lesser of- 
(i) the amount equal to the excess, if any, of the total indebtedness 
over the amount of the appraisal referred to in 
such clause; or 
(ii) the amount equal to the guaranty under this section. 

605 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3712 

(D) If the holder of a loan files for payment of a claim under 
clause (ii) of subparagraph (B) of this paragraph, the amount of 
such claim payable by the Secretary shall be the lesser of- 
(i) the amount equal to the excess, if any, of the total indebtedness 
over the greater of the value of the property securing the loan, as 
determined by the Secretary, or the amount of 
the liquidation or resale proceeds; or 
(ii) the amount equal to the guaranty under this section. 
(E) In any accounting filed pursuant to subparagraph (B)(ii) of 
this paragraph, the Secretary shall permit to be included therein 
accrued unpaid interest from the date of the first uncured default 
to such cutoff date as the Secretary may establish, and the Secretary 
shall allow the holder of the loan to charge against the liquidation or 
resale proceeds accrued interest from the cutoff date established to 
such further date as the Secretary may determine and 
such costs and expenses as the Secretary determines to be reasonable 
and proper. 
(F) The liability of the United States under the guaranty provided for 
by this paragraph shall decrease or increase pro rata with 
any decrease or increase of the amount of the unpaid portion of the 
obligation. 
(4) The maximum amount of guaranty entitlement available to 
a veteran for purposes specified in this section shall be $20,000 
reduced by the amount of any such entitlement previously used by 
the veteran. Use of entitlement for purposes specified in section 
3710 or 3711 of this title shall reduce entitlement available for use 
for purposes specified in this section to the same extent that 
entitlement available for purposes specified in such section 3710 is 
reduced below $20,000. 
(5) The amount of any loan guaranteed for purposes specified 
in this section shall not exceed an amount equal to 95 percent of 
the purchase price of the property securing the loan. 
(d)(1) The maturity of any loan guaranteed for purposes specified in 
this section shall not be more than- 

(A) fifteen years and thirty-two days, in the case of a loan 
for the purchase of a lot; 
(B) twenty years and thirty-two days, in the case of a loan 
for the purchase of- 
(i) a single-wide manufactured home; or 
(ii) a single-wide manufactured home and a lot; 
(C) twenty-three years and thirty-two days, in the case of 
a loan for the purchase of a double-wide manufactured home; 
or 
(D) twenty-five years and thirty-two days, in the case of a 
loan for the purchase of a double-wide manufactured home and 
a lot. 
(2) Nothing in paragraph (1) of this subsection shall preclude 
the Secretary, under regulations which the Secretary shall prescribe, 
from consenting to necessary advances for the protection of 
the security or the holderï¿½s lien, to a reasonable extension of the 
term of such loan, or to a reasonable reamortization of such loan. 
(e) No loan shall be guaranteed for purposes specified in this 
section unless- 

Sec. 3712 CH. 37-HOUSING AND SMALL BUSINESS LOANS 606 

(1) the loan is repayable in approximately equal monthly 
installments; 
(2) the terms of repayment bear a proper relationship to 
the veteranï¿½s present and anticipated income and expenses, 
and the veteran is a satisfactory credit risk, as determined in 
accordance with the regulations prescribed under section 
3710(g) of this title and taking into account the purpose of this 
program to make available lower cost housing to low and lower 
income veterans, especially those who have been recently discharged or 
released from active military, naval, or air service, 
who may not have previously established credit ratings; 
(3) the loan is secured by a first lien on the manufactured 
home purchased with the proceeds of the loan and on any lot 
acquired or improved with the proceeds of the loan; 
(4) the amount of the loan to be paid by the veteran is not 
in excess of the amount determined to be reasonable, based 
upon- 
(A) with respect to any portion of the loan to purchase 
a new manufactured home, such cost factors as the Secretary considers 
proper to take into account; 
(B) with respect to any portion of the loan to purchase 
a used manufactured home, the reasonable value of the 
property, as determined by the Secretary; 
(C) with respect to any portion of the loan to purchase 
a lot, the reasonable value of such lot, as determined by 
the Secretary; and 
(D) with respect to any portion of the loan to cover the 
cost of necessary site preparation, an appropriate amount, 
as determined by the Secretary; 
(5) the veteran certifies, in such form as the Secretary 
shall prescribe, that the veteran will personally occupy the 
property as the veteranï¿½s home; except that the requirement of 
this clause shall not apply (A) in the case of a guaranteed loan 
that is for the purpose described in paragraph (1)(F) of subsection 
(a), or 
(B) in the case described in section 3704(c)(2); 
(6) the manufactured home is or will be placed on a site 
which meets specifications which the Secretary shall establish 
by regulation; and 
(7) the interest rate to be charged on the loan does not exceed the 
permissible rate established by the Secretary. 
(f) The Secretary shall establish such rate of interest for 
manufactured home loans and manufactured home lot loans as the 
Secretary determines to be necessary in order to assure a reasonable 
supply of manufactured home loan financing for veterans for purposes 
specified in this section. 
(g) The Secretary shall promulgate such regulations as the Secretary 
determines to be necessary or appropriate in order to fully 
implement the provisions of this section, and such regulations may 
specify which provisions in other sections of this chapter the 
Secretary determines should be applicable to loans guaranteed or 
made for purposes specified in this section. The Secretary shall 
have such powers and responsibilities in respect to matters arising 

607 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3712 

under this section as the Secretary has in respect to loans made 
or guaranteed or under other sections of this chapter. 

(h)(1) No loan for the purchase of a manufactured home shall 
be guaranteed for purposes specified in this section unless the 
manufactured home and lot, if any, meet or exceed standards for 
planning, construction, and general acceptability as prescribed by 
the Secretary and no loan for the purchase of a lot on which to 
place a manufactured home owned by a veteran shall be guaranteed for 
purposes specified in this section unless the lot meets such 
standards prescribed for manufactured home lots. Such standards 
shall be designed to encourage the maintenance and development 
of sites for manufactured homes which will be attractive residential 
areas and which will be free from, and not substantially contribute 
to, adverse scenic or environmental conditions. 

(2) Any manufactured housing unit properly displaying a certification 
of conformity to all applicable Federal manufactured 
home construction and safety standards pursuant to section 616 of 
the National Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5415) shall be deemed to meet 
the standards required by paragraph (1). 
(i) The Secretary shall require the manufacturer to become a 
warrantor of any new manufactured home which is approved for 
purchase with financing through the assistance of this chapter and 
to furnish to the purchaser a written warranty in such form as the 
Secretary shall require. Such warranty shall include (1) a specific 
statement that the manufactured home meets the standards prescribed by 
the Secretary pursuant to the provisions of subsection 
(h) of this section; and (2) a provision that the warrantorï¿½s liability 
to the purchaser or owner is limited under the warranty to instances of 
substantial nonconformity to such standards which become evident within 
one year from date of purchase and as to 
which the purchaser or owner gives written notice to the warrantor 
not later than ten days after the end of the warranty period. The 
warranty prescribed herein shall be in addition to, and not in 
derogation of, all other rights and privileges which such purchaser or 
owner may have under any other law or instrument and shall so 
provide in the warranty document. 
(j) Subject to notice and opportunity for a hearing, the Secretary is 
authorized to deny guaranteed or direct loan financing in 
the case of- 
(1) manufactured homes constructed by a manufacturer 
who fails or is unable to discharge the manufacturerï¿½s obligations 
under the warranty; 
(2) manufactured homes which are determined by the Secretary not to 
conform to the standards provided for in subsection (h); or 
(3) a manufacturer of manufactured homes who has engaged in procedures 
or practices determined by the Secretary 
to be unfair or prejudicial to veterans or the Government. 
(k) Subject to notice and opportunity for a hearing, the Secretary may 
refuse to approve as acceptable any site in a manufactured home park or 
subdivision owned or operated by any person whose rental or sale 
methods, procedures, requirements, or practices are determined by the 
Secretary to be unfair or prejudicial to 

Sec. 3713 CH. 37-HOUSING AND SMALL BUSINESS LOANS 608 

veterans renting or purchasing such sites. The Secretary may also 
refuse to guarantee or make direct loans for veterans to purchase 
manufactured homes offered for sale by any dealer if substantial 
deficiencies have been discovered in such homes, or if the Secretary 
determines that there has been a failure or indicated inability of 
the dealer to discharge contractual liabilities to veterans, or that 
the type of contract of sale or methods, procedures, or practices 
pursued by the dealer in the marketing of such properties have 
been unfair or prejudicial to veteran purchasers. 

(l) The provisions of sections 3704(d) and 3721 of this title 
shall be fully applicable to lenders making guaranteed manufactured 
home loans and manufactured home lot loans and holders of 
such loans. 
(Added Pub. L. 91-506, Sec. 5, Oct. 23, 1970, 84 Stat. 1110, Sec. 1819; 
amended Pub. L. 93-569, Sec. 5, Dec. 31, 1974, 88 Stat. 1864; Pub. L. 
94-324, Sec. 5, 7(20)-(23), June 30, 1976, 90 Stat. 720, 722; Pub. L. 
95-476, title I, Sec. 107, Oct. 18, 1978, 92 Stat. 1500; Pub. L. 96-385, 
title IV, Sec. 401(b), 402(c), Oct. 7, 1980, 94 Stat. 1532, 1533; Pub. L. 
97-66, title V, Sec. 503, Oct. 17, 1981, 95 Stat. 1032; Pub. 

L. 97-72, title III, Sec. 303(h), (i), Nov. 3, 1981, 95 Stat. 1060; 
Pub. L. 97-295, Sec. 4(66), Oct. 12, 1982, 96 Stat. 1310; Pub. L. 
97-306, title IV, Sec. 406(a), (c)(2), Oct. 14, 1982, 96 Stat. 1444, 
1445; Pub. L. 98-223, title II, Sec. 205(b), Mar. 2, 1984, 98 Stat. 43; 
Pub. L. 99-576, title IV, Sec. 402(c)(2), Oct. 28, 1986, 100 Stat. 3281; 
Pub. L. 100-198, Sec. 3(b), 7(b), 8(b), Dec. 21, 1987, 101 Stat. 1315, 
1318, 1320; Pub. L. 100-253, Sec. 3(b), Feb. 29, 1988, 102 Stat. 20; 
renumbered Sec. 1812 and amended Pub. L. 100-322, title IV, Sec. 
415(b)(4), May 20, 1988, 102 Stat. 551; Pub. L. 101-237, title III, 
Sec. 313(b)(1), (7), Dec. 18, 1989, 103 Stat. 2077; Pub. L. 101-508, 
title VIII, Sec. 8031(a), Nov. 5, 1990, 104 Stat. 1388-348; Pub. L. 
102-54, Sec. 14(c)(8), June 13, 1991, 105 Stat. 285; renumbered Sec. 
3712 and amended Pub. L. 102-83, Sec. 4(a)(2)(A)(v), 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 403, 406; Pub. L. 102-547, Sec. 6(2), Oct. 28,
1992, 106 Stat. 3636; Pub. L. 103-446, title IX, Sec. 906, title XII, 
Sec. 1201(e)(14), Nov. 2, 1994, 108 Stat. 4677, 4685; Pub. L. 104-66, 
title I, Sec. 1141(b), Dec. 21, 1995, 109 Stat. 726.) 
ï¿½ 3713. Release from liability under guaranty 

(a) Whenever any veteran disposes of residential property securing a 
guaranteed, insured, or direct housing loan obtained by 
the veteran, the Secretary, upon application made by such veteran 
and by the transferee incident to such disposal, shall issue to such 
veteran in connection with such disposal a release relieving the 
veteran of all further liability to the Secretary on account of such 
loan (including liability for any loss resulting from any default of 
the transferee or any subsequent purchaser of such property) if the 
Secretary has determined, after such investigation as the Secretary 
may deem appropriate, that (1) the loan is current, and (2) the 
purchaser of such property from such veteran (A) is obligated by 
contract to purchase such property and to assume full liability for the 
repayment of the balance of the loan remaining unpaid, and has 
assumed by contract all of the obligations of the veteran under the 
terms of the instruments creating and securing the loan, and (B) 
qualifies from a credit standpoint, to the same extent as if the 
transferee were a veteran eligible for purposes specified in section 
3710 of this title, for a guaranteed or insured or direct loan in an 
amount equal to the unpaid balance of the obligation for which the 
transferee has assumed liability. 
(b) If any veteran disposes of residential property securing a 
guaranteed, insured, or direct housing loan obtained by the veteran 
under this chapter without receiving a release from liability with 

609 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3714 

respect to such loan under subsection (a), and a default subsequently 
occurs which results in liability of the veteran to the Secretary on 
account of the loan, the Secretary may relieve the veteran of such 
liability if the Secretary determines, after such investigation as the 
Secretary deems appropriate, that the property was 
disposed of by the veteran in such a manner, and subject to such 
conditions, that the Secretary would have issued the veteran a release 
from liability under subsection (a) with respect to the loan if 
the veteran had made application therefor incident to such disposal. 
Failure of a transferee to assume by contract all of the liabilities of 
the original veteran-borrower shall bar such release of liability only 
in cases in which no acceptable transferee, either immediate or remote, 
is legally liable to the Secretary for the indebtedness of the original 
veteran-borrower arising from termination of the loan. The failure of a 
veteran to qualify for release from liability under this subsection does 
not preclude relief from being granted under section 5302(b) of this 
title, if the veteran is eligible for 
relief under that section. 

(c) This section shall apply only to loans for which commitments are 
made before March 1, 1988. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1212, Sec. 1817; Pub. L. 
92-328, title II, Sec. 204, June 30, 1972, 86 Stat. 397; Pub. L. 
94-324, Sec. 7(18), (19), June 30, 1976, 90 Stat. 722; Pub. L. 97-72, 
title III, Sec. 303(f), Nov. 3, 1981, 95 Stat. 1060; Pub. L. 100-198, 
Sec. 10(a)(2), Dec. 21, 1987, 101 Stat. 1323; renumbered Sec. 1813 
and amended Pub. L. 100-322, title IV, Sec. 415(b)(2), May 20, 1988, 
102 Stat. 550; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 
1989, 103 Stat. 2077; Pub. L. 102- 40, title IV, Sec. 402(d)(1), May 
7, 1991, 105 Stat. 239; renumbered Sec. 3713 and amended Pub. L. 102-
83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103- 
446, title XII, Sec. 1201(e)(15), Nov. 2, 1994, 108 Stat. 4686.) 

ï¿½ 3714. Assumptions; release from liability 

(a)(1) Except as provided in subsection (f) of this section, if a 
veteran or any other person disposes of residential property securing 
a loan guaranteed, insured, or made under this chapter and the 
veteran or other person notifies the holder of the loan in writing 
before the property is disposed of, the veteran or other person, as 
the case may be, shall be relieved of all further liability to the 
Secretary with respect to the loan (including liability for any loss 
resulting from any default of the purchaser or any subsequent owner 
of the property) and the application for assumption shall be approved 
if the holder determines that- 

(A) the loan is current; and 
(B) the purchaser of the property from such veteran or 
other person- 
(i) is obligated by contract to purchase such property 
and to assume full liability for the repayment of the balance of the 
loan remaining unpaid and has assumed by 
contract all of the obligations of the veteran under the 
terms of the instruments creating and securing the loan; 
and 
(ii) qualifies from a credit standpoint, to the same extent as if the 
purchaser were a veteran eligible under section 3710 of this title, for 
a guaranteed or insured or direct loan in an amount equal to the unpaid 
balance of the obligation for which the purchaser is to assume liability. 

Sec. 3714 CH. 37-HOUSING AND SMALL BUSINESS LOANS 610 

(2) For the purposes of paragraph (1), paragraph (3), and paragraph 
(4)(C)(ii) of this subsection, the Secretary shall be considered 
to be the holder of the loan if the actual holder is not an approved 
lender described in section 3702. 
(3) If the holder of the loan determines that the loan is not current 
or that the purchaser of the property does not meet the requirements of 
paragraph (1)(B) of this subsection, the holder 
shall- 
(A) notify the transferor and the Secretary of such determination; and 
(B) notify the transferor that the transferor may appeal 
the determination to the Secretary. 
(4)(A) Upon the appeal of the transferor after a determination 
described in paragraph (3) is made, the Secretary shall, in a timely 
manner, review and make a determination (or a redetermination in 
any case in which the Secretary made the determination described 
in such paragraph) with respect to whether the loan is current and 
whether the purchaser of the property meets the requirements of 
paragraph (1)(B) of this subsection. The Secretary shall transmit, 
in writing, a notice of the nature of such determination to the 
transferor and the holder and shall inform them of the action that 
shall or may be taken under subparagraph (B) of this paragraph 
as a result of the determination of the Secretary. 

(B)(i) If the Secretary determines under subparagraph (A) of 
this paragraph that the loan is current and that the purchaser 
meets the requirements of paragraph (1)(B) of this subsection, the 
holder shall approve the assumption of the loan, and the transferor 
shall be relieved of all liability to the Secretary with respect to 
such loan. 

(ii) If the Secretary determines under subparagraph (A) of this 
paragraph that the purchaser does not meet the requirements of 
paragraph (1)(B) of this subsection, the Secretary may direct the 
holder to approve the assumption of the loan if- 
(I) the Secretary determines that the transferor of the 
property is unable to make payments on the loan and has 
made reasonable efforts to find a buyer who meets the requirements of 
paragraph (1)(B) of this subsection and that, as a result, the proposed 
transfer is in the best interests of the Department and the transferor; 
(II) the transferor has requested, within 15 days after receiving the 
notice referred to in subparagraph (A) of this paragraph, that the 
Secretary approve the assumption; and 
(III) the transferor will, upon assumption of the loan by 
the purchaser, be secondarily liable on the loan. 
(C) If- 
(i) the loan is not approved for assumption under subparagraph (B) of 
this paragraph or paragraph (1) of this subsection; 
or 
(ii) no appeal is made by the transferor under subparagraph (A) of this 
paragraph within 30 days after the holder informs the transferor of its 
determination under paragraph (3) 
of this subsection, 

611 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3714 

the holder may demand immediate, full payment of the principal, and all 
interest earned thereon, of such loan if the transferor disposes of the 
property. 

(b) If a person disposes of residential property described in subsection
(a)(1) of this section and the person fails to notify the holder 
of the loan before the property is disposed of, the holder, upon 
learning of such action by the person, may demand immediate and 
full payment of the principal, interest, and all other amounts owing 
under the terms of the loan. 
(c)(1) In any case in which the holder of a loan described in 
subsection (a)(1) of this section has knowledge of a personï¿½s disposing
of residential property securing the loan, the holder shall 
notify the Secretary of such action. 

(2) If the holder fails to notify the Secretary in such a case, the 
holder shall be liable to the Secretary for any damage sustained by 
the Secretary as a result of the holderï¿½s failure, as determined at 
the time the Secretary is required to make payments in accordance 
with any insurance or guaranty provided by the Secretary with respect 
to the loan concerned. 
(d) With respect to a loan guaranteed, insured, or made under 
this chapter, the Secretary shall provide, by regulation, that at 
least one instrument evidencing either the loan or the mortgage or 
deed of trust therefor, shall conspicuously contain, in such form as 
the Secretary shall specify, a notice in substantially the following 
form: ï¿½ï¿½This loan is not assumable without the approval of the 
Department of Veterans Affairs or its authorized agentï¿½ï¿½. 
(e) The Secretary shall establish in regulations a reasonable 
amount as the maximum amount that a lender may charge for 
processing an application for a creditworthiness determination and 
assumption of a loan pursuant to this section. Such regulations 
shall establish requirements for the timely processing of applications 
for acceptance of assumptions. 
(f)(1) This section shall apply- 

(A) in the case of loans other than loans to finance the purchase of 
real property described in section 3733(a)(1) of this 
title, only to loans for which commitments are made on or after 
March 1, 1988; and 
(B) in the case of loans to finance the purchase of such 
property, only to loans which are closed after January 1, 1989. 
(2) This section shall not apply to a loan which the Secretary 
has sold without recourse. 
(Added Pub. L. 100-198, Sec. 10(a)(1), Dec. 21, 1987, 101 Stat. 1321, 
Sec. 1817A; renumbered Sec. 1814, Pub. L. 100-322, title IV, Sec. 
415(b)(2)(B), May 20, 1988, 102 Stat. 551; amended Pub. L. 100-689, 
title III, Sec. 302, Nov. 18, 1988, 102 Stat. 4176; Pub. L. 101-237, 
title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered 
Sec. 3714 and amended Pub. L. 102-83, Sec. 4(a)(2)(B)(iv), (3), (4), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403, 404, 406; Pub. L. 105-368, 
title X, Sec. 1005(b)(10), Nov. 11, 1998, 112 Stat. 3365; Pub. L. 
107-103, title IV, Sec. 403, Dec. 27, 2001, 
115 Stat. 993.) 


Sec. 3715 CH. 37-HOUSING AND SMALL BUSINESS LOANS 612 

ï¿½ï¿½ï¿½ 3715 to 3719. Vacantï¿½ 

SUBCHAPTER III-ADMINISTRATIVE PROVISIONS 

ï¿½ 3720. Powers of Secretary 

(a) Notwithstanding the provisions of any other law, with respect to 
matters arising by reason of this chapter, the Secretary 
may- 
(1) sue and be sued in the Secretaryï¿½s official capacity in 
any court of competent jurisdiction, State or Federal, but nothing in 
this clause shall be construed as authorizing garnishment or attachment 
against the Secretary, the Department of 
Veterans Affairs, or any of its employees; 
(2) subject to specific limitations in this chapter, consent to 
the modification, with respect to rate of interest, time of payment of 
principal or interest or any portion thereof, security or 
other provisions of any note, contract, mortgage or other instrument 
securing a loan which has been guaranteed, insured, 
made or acquired under this chapter; 
(3) pay, or compromise, any claim on, or arising because of, 
any such guaranty or insurance; 
(4) pay, compromise, waive or release any right, title, 
claim, lien or demand, however acquired, including any equity 
or any right of redemption; 
(5) purchase at any sale, public or private, upon such 
terms and for such prices as the Secretary determines to be 
reasonable, and take title to, property, real, personal or mixed; 
and similarly sell, at public or private sale, exchange, assign, 
convey, or otherwise dispose of any such property; and 
(6) complete, administer, operate, obtain and pay for insurance on, 
and maintain, renovate, repair, modernize, lease, or 
otherwise deal with any property acquired or held pursuant to 
this chapter. The acquisition of any such property shall not deprive 
any State or political subdivision thereof of its civil or 
criminal jurisdiction of, on, or over such property (including 
power to tax) or impair the rights under the State or local law 
of any persons on such property. Without regard to section 
3302(b) of title 31 or any other provision of law not expressly 
in limitation of this paragraph, the Secretary may permit brokers 
utilized by the Secretary in connection with such properties to 
deduct from rental collections amounts covering authorized fees, 
costs, and expenses incurred in connection with 
the management, repair, sale, or lease of any such properties 
and remit the net balances to the Secretary. 
(b) The powers granted by this section may be exercised by the 
Secretary without regard to any other provision of law not enacted 
expressly in limitation of this section, which otherwise would govern 
the expenditure of public funds, except that title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
251 et seq.) shall apply to any contract for services or supplies on 
account of any property acquired pursuant to this section. 
(c) The financial transactions of the Secretary incident to, or 
arising out of, the guaranty or insurance of loans pursuant to this 
chapter, and the acquisition, management, and disposition of prop

613 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3720 

erty, real, personal, or mixed, incident to such activities and 
pursuant to this section, shall be final and conclusive upon all 
officers of the Government. 

(d) The right to redeem provided for by section 2410(c) of title 
28 shall not arise in any case in which the subordinate lien or 
interest of the United States derives from a guaranteed or insured 
loan. 
ï¿½(e) Repealed. Pub. L. 105-368, title VI, Sec. 602(c)(1), Nov. 11, 
1998, 112 Stat. 3346ï¿½ 

(f) Whenever loss, destruction, or damage to any residential 
property securing loans guaranteed, insured, made, or acquired by 
the Secretary under this chapter occurs as the result of a major 
disaster as determined by the President under the Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et seq.), the Secretary 
shall (1) provide counseling and such other service to the 
owner of such property as may be feasible and shall inform such 
owner concerning the disaster assistance available from other Federal 
agencies and from State or local agencies, and (2) pursuant to 
subsection (a)(2) of this section, extend on an individual case basis 
such forebearance or indulgence to such owner as the Secretary 
determines to be warranted by the facts of the case and the 
circumstances of such owner. 
(g) The Secretary shall, at the request of the Secretary of 
Housing and Urban Development and without reimbursement, certify to 
such Secretary whether an applicant for assistance under 
any law administered by the Department of Housing and Urban 
Development is a veteran. 
(h)(1) The Secretary may, upon such terms and conditions as 
the Secretary considers appropriate, issue or approve the issuance 
of, and guarantee the timely payment of principal and interest on, 
certificates or other securities evidencing an interest in a pool of 
mortgage loans made in connection with the sale of properties acquired 
under this chapter. 

(2) The Secretary may not under this subsection guarantee the 
payment of principal and interest on certificates or other securities 
issued or approved after December 31, 2011. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1213, Sec. 1820; Pub. L. 
88-151, Sec. 1, Oct. 
17, 1963, 77 Stat. 271; Pub. L. 88-560, title VII, Sec. 701(e)(1), 
Sept. 2, 1964, 78 Stat. 800; Pub. L. 89-625, Oct. 4, 1966, 80 Stat. 874; 
Pub. L. 89-769, Sec. 3(c), Nov. 6, 1966, 80 Stat. 1316; Pub. L. 90-448, 
title VIII, Sec. 807(h), Aug. 1, 1968, 82 Stat. 545; Pub. L. 91-606, 
title II, Sec. 233, Dec. 31, 1970, 84 Stat. 1753; Pub. L. 92-328, title 
II, Sec. 205, June 30, 1972, 86 Stat. 397; Pub. L. 93-288, title VII, Sec. 
702(l), formerly title VI, Sec. 602(l), May 22, 1974, 88 Stat. 164, 
renumbered title VII, Sec. 702(l), Pub. L. 103-337, div. C, title XXXIV, 
Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L. 94-324, Sec. 
7(24)-(26), June 30, 1976, 90 Stat. 722; Pub. L. 95-117, title IV, Sec. 
403(a), Oct. 3, 1977, 91 Stat. 1066; Pub. L. 97-258, Sec. 3(k)(3), Sept. 
13, 1982, 96 Stat. 1065; Pub. L. 97-295, Sec. 4(67), Oct. 12, 1982, 96 
Stat. 1310; Pub. L. 98-160, title VII, Sec. 702(14), Nov. 21, 1983, 97 
Stat. 1009; Pub. L. 99-576, title IV, Sec. 404, Oct. 28, 1986, 100 
Stat. 3281; Pub. L. 100-707, title I, Sec. 109(n), Nov. 23, 1988, 102 
Stat. 4709; Pub. L. 101-237, title III, Sec. 313(b)(1), (2), Dec. 18, 
1989, 103 Stat. 2077; Pub. L. 102-54, Sec. 4(a), June 13, 1991, 105 
Stat. 268; renumbered Sec. 3720 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-291, Sec. 5(a), May
20, 1992, 106 Stat. 179; Pub. L. 102-547, Sec. 4, Oct. 28, 1992, 106 
Stat. 3636; Pub. L. 104-110, title I, Sec. 101(f), Feb. 13, 1996, 110 
Stat. 768; Pub. L. 104-275, title II, Sec. 201, Oct. 9, 1996, 110 
Stat. 3330; Pub. L. 105-33, title VIII, Sec. 8011, Aug. 5, 1997, 111 
Stat. 664; Pub. L. 105-368, title VI, Secs. 602(c)(1), 604(a), Nov. 
11, 1998, 112 Stat. 


Sec. 3721 CH. 37-HOUSING AND SMALL BUSINESS LOANS 614 

3346, 3348; Pub. L. 106-419, title IV, Sec. 402(a), Nov. 1, 2000, 114 
Stat. 1861; Pub. 

L. 107-103, title IV, Sec. 405(b), Dec. 27, 2001, 115 Stat. 994.) 
ï¿½ 3721. Incontestability 

Any evidence of guaranty or insurance issued by the Secretary 
shall be conclusive evidence of the eligibility of the loan for 
guaranty or insurance under the provisions of this chapter and of the 
amount of such guaranty or insurance. Nothing in this section shall 
preclude the Secretary from establishing, as against the original 
lender, defenses based on fraud or material misrepresentation. The 
Secretary shall not, by reason of anything contained in this section, 
be barred from establishing, by regulations in force at the date of 
such issuance or disbursement, whichever is the earlier, partial 
defenses to the amount payable on the guaranty or insurance. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1213, Sec. 1821; Pub. L. 101-
237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 3721, Pub. L. 102- 
83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3722. Veterans Housing Benefit Program Fund 

(a) There is hereby established in the Treasury of the United 
States a fund known as the Veterans Housing Benefit Program 
Fund (hereinafter in this section referred to as the ï¿½ï¿½Fundï¿½ï¿½). 
(b) The Fund shall be available to the Secretary, without fiscal 
year limitation, for all housing loan operations under this chapter, 
other than administrative expenses, consistent with the Federal 
Credit Reform Act of 1990. 
(c) There shall be deposited into the Fund the following, which 
shall constitute the assets of the Fund: 
(1) Any amount appropriated to the Fund. 
(2) Amounts paid into the Fund under section 3729 of this 
title or any other provision of law or regulation established by 
the Secretary imposing fees on persons or other entities participating 
in the housing loan programs under this chapter. 
(3) All other amounts received by the Secretary on or after 
October 1, 1998, incident to housing loan operations under this 
chapter, including- 
(A) collections of principal and interest on housing 
loans made by the Secretary under this chapter; 
(B) proceeds from the sale, rental, use, or other disposition of 
property acquired under this chapter; 
(C) proceeds from the sale of loans pursuant to sections 3720(h) and 
3733(a)(3) of this title; and 
(D) penalties collected pursuant to section 
3710(g)(4)(B) of this title. 
(d) Amounts deposited into the Fund under paragraphs (2) and 
(3) of subsection (c) shall be deposited in the appropriate financing 
or liquidating account of the Fund. 
(e) For purposes of this section, the term ï¿½ï¿½housing loanï¿½ï¿½ shall 
not include a loan made pursuant to subchapter V of this chapter. 
(Added Pub. L. 105-368, title VI, Sec. 602(a)(2), Nov. 11, 1998, 112 
Stat. 3345; 
amended Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 Stat. 35.) 


615 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3727 

ï¿½ï¿½ 3723. Repealed. Pub. L. 105-368, title VI, Sec. 602(a)(1), 
Nov. 11, 1998, 112 Stat. 3345ï¿½ 

ï¿½ï¿½ 3724. Repealed. Pub. L. 105-368, title VI, Sec. 602(a)(1), 
Nov. 11, 1998, 112 Stat. 3345ï¿½ 

ï¿½ï¿½ 3725. Repealed. Pub. L. 105-368, title VI, Sec. 602(a)(1), 
Nov. 11, 1998, 112 Stat. 3345ï¿½ 

ï¿½ 3726. Withholding of payments, benefits, etc 

(a) No officer, employee, department, or agency of the United 
States shall set off against, or otherwise withhold from, any veteran 
or the surviving spouse of any veteran any payments (other 
than benefit payments under any law administered by the Department of 
Veterans Affairs) which such veteran or surviving spouse 
would otherwise be entitled to receive because of any liability to 
the Secretary allegedly arising out of any loan made to, assumed 
by, or guaranteed or insured on account of, such veteran or surviving 
spouse under this chapter, unless the Secretary provides 
such veteran or surviving spouse with notice by certified mail with 
return receipt requested of the authority of the Secretary to waive 
the payment of indebtedness under section 5302(b) of this title. 
(b) If the Secretary does not waive the entire amount of the 
liability, the Secretary shall then determine whether the veteran or 
surviving spouse should be released from liability under section 
3713(b) of this title. 
(c) If the Secretary determines that the veteran or surviving 
spouse should not be released from liability, the Secretary shall 
notify the veteran or surviving spouse of that determination and 
provide a notice of the procedure for appealing that determination, 
unless the Secretary has previously made such determination and 
notified the veteran or surviving spouse of the procedure for 
appealing the determination. 
(Added Pub. L. 89-358, Sec. 5(f)(1), Mar. 3, 1966, 80 Stat. 26, Sec. 
1826; amended 
Pub. L. 94-324, Sec. 7(30), June 30, 1976, 90 Stat. 722; Pub. L. 
97-66, title V, Sec. 
504, Oct. 17, 1981, 95 Stat. 1033; Pub. L. 101-237, title III, Sec. 
313(b)(1), (2), Dec. 
18, 1989, 103 Stat. 2077; renumbered Sec. 3726, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 105-33, title VIII, Sec. 8033(a), 
Aug. 5, 1997, 111 Stat. 
669.) 

ï¿½ 3727. Expenditures to correct or compensate for structural 
defects in mortgaged homes 

(a) The Secretary is authorized, with respect to any property 
improved by a one-to four-family dwelling inspected during construction 
by the Department of Veterans Affairs or the Federal 
Housing Administration which the Secretary finds to have structural 
defects seriously affecting the livability of the property, to 
make expenditures for (1) correcting such defects, (2) paying the 
claims of the owner of the property arising from such defects, or 
(3) acquiring title to the property; except that such authority of the 
Secretary shall exist only (A) if the owner requests assistance 
under this section not later than four years (or such shorter time 
as the Secretary may prescribe) after the mortgage loan was made, 
guaranteed, or insured, and (B) if the property is encumbered by 

Sec. 3728 CH. 37-HOUSING AND SMALL BUSINESS LOANS 616 

a mortgage which is made, guaranteed, or insured under this chapter 
after May 7, 1968. 

(b) The Secretary shall by regulation prescribe the terms and 
conditions under which expenditures and payments may be made 
under the provisions of this section, and the Secretaryï¿½s decisions 
regarding such expenditures or payments, and the terms and conditions 
under which the same are approved or disapproved, shall 
be final and conclusive, and shall not be subject to judicial review. 
(c) The Secretary is authorized to make expenditures for the 
purposes of this section from the fund established pursuant to section 
3722 of this title. 
(Added Pub. L. 90-301, Sec. 5(a), May 7, 1968, 82 Stat. 116, Sec. 1827; 
amended 
Pub. L. 94-324, Sec. 7(31), June 30, 1976, 90 Stat. 722; Pub. L. 
101-237, title III, 
Sec. 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 
3727 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 406; Pub. L. 105-368, 
title VI, Sec. 602(e)(1)(C), title X, Sec. 1005(b)(11), Nov. 11, 1998, 
112 Stat. 3346, 
3365.) 

ï¿½ 3728. Exemption from State anti-usury provisions 

If, under any law of the United States, loans and mortgages insured 
under title I or title II of the National Housing Act are exempt from 
the application of the provisions of any State constitution or law (1) 
limiting the rate or amount of interest, discount 
points, or other charges which may be charged, taken, received, or 
reserved by lenders, (2) restricting the manner of calculating such 
interest (including prohibition of the charging of interest on 
interest), or (3) requiring a minimum amortization of principal, then 
loans guaranteed or insured under this chapter are also exempt 
from the application of such provisions. 

(Added Pub. L. 96-128, title IV, Sec. 401(a), Nov. 28, 1979, 93 Stat. 
986, Sec. 1828; 
amended Pub. L. 97-66, title V, Sec. 501(b), Oct. 17, 1981, 95 Stat. 
1032; renumbered Sec. 3728, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 3729. Loan fee 

(a) REQUIREMENT OF FEE.-(1) Except as provided in subsection (c), a 
fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, and 
each person assuming a loan to which section 3714 of this title applies.
No such loan may be guaranteed, insured, made, or assumed 
until the fee payable under this section has been remitted to the 
Secretary. 
(2) The fee may be included in the loan and paid from the proceeds 
thereof. 
(b) DETERMINATION OF FEE.-(1) The amount of the fee shall 
be determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan guaranteed, 
insured, or made, or, in the case of a loan assumption, the 
unpaid principal balance of the loan on the date of the transfer of 
the property. 
(2) The loan fee table referred to in paragraph (1) is as follows: 

617 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3729 

LOAN FEE TABLE 

Type of loan Active duty 
veteran Reservist Other obligor 
(A)(i) Initial loan described in section 3710(a) to purchase or 
construct a dwelling with 0-down, or any 
other initial loan described in section 3710(a) other 
than with 5-down or 10-down (closed before January 1, 2004) ................................................................. 2.00 2.75 NA 
(A)(ii) Initial loan described in section 3710(a) to purchase or 
construct a dwelling with 0-down, or any 
other initial loan described in section 3710(a) other 
than with 5-down or 10-down (closed on or after 
January 1, 2004, and before October 1, 2004) .......... 2.20 2.40 NA 
(A)(iii) Initial loan described in section 3710(a) to 
purchase or construct a dwelling with 0-down, or 
any other initial loan described in section 3710(a) 
other than with 5-down or 10-down (closed on or 
after October 1, 2004, and before October 1, 2011) 2.15 2.40 NA 
(A)(iv) Initial loan described in section 3710(a) to 
purchase or construct a dwelling with 0-down, or 
any other initial loan described in section 3710(a) 
other than with 5-down or 10-down (closed on or 
after October 1, 2011) ..................................... 1.40 1.65 NA 
(B)(i) Subsequent loan described in section 3710(a) to 
purchase or construct a dwelling with 0-down, or 
any other subsequent loan described in section 
3710(a) (closed before January 1, 2004) .................... 3.00 3.00 NA 
(B)(ii) Subsequent loan described in section 3710(a) 
to purchase or construct a dwelling with 0-down, or 
any other subsequent loan described in section 
3710(a) (closed on or after January 1, 2004, and before October 1, 2011) .... 3.30 3.30 NA 
(B)(iii) Subsequent loan described in section 3710(a) 
to purchase or construct a dwelling with 0-down, or 
any other subsequent loan described in section 
3710(a) (closed on or after October 1, 2011 and before October 1, 2013) ...... 2.15 2.15 NA 
(B)(iv) Subsequent loan described in section 3710(a) 
to purchase or construct a dwelling with 0-down, or 
any other subsequent loan described in section 
3710(a) (closed on or after October 1, 2013) ............. 1.25 1.25 NA 
(C)(i) Loan described in section 3710(a) to purchase 
or construct a dwelling with 5-down (closed before 
October 1, 2011) ....................................... 1.50 1.75 NA 
(C)(ii) Loan described in section 3710(a) to purchase 
or construct a dwelling with 5-down (closed on or 
after October 1, 2011) .................................... 0.75 1.00 NA 
(D)(i) Initial loan described in section 3710(a) to purchase or construct a 
dwelling with 10-down (closed 
before October 1, 2011) ................................... 1.25 1.50 NA 
(D)(ii) Initial loan described in section 3710(a) to purchase or 
construct a dwelling with 10-down (closed 
on or after October 1, 2011) .......................... 0.50 0.75 NA 


Sec. 3729 CH. 37-HOUSING AND SMALL BUSINESS LOANS 618 

LOAN FEE TABLE-Continued 

Type of loan Active duty 
veteran Reservist Other obligor 
(E) Interest rate reduction refinancing loan ..... 0.50 0.50 NA 
(F) Direct loan under section 3711 ................. 1.00 1.00 NA 
(G) Manufactured home loan under section 3712 
(other than an interest rate reduction refinancing 
loan) ....................................................... 1.00 1.00 NA 
(H) Loan to Native American veteran under section 
3762 (other than an interest rate reduction refinancing loan) ... 1.25 1.25 NA 
(I) Loan assumption under section 3714 ............ 0.50 0.50 0.50 
(J) Loan under section 3733(a) ................... 2.25 2.25 2.25 

(3) Any reference to a section in the ï¿½ï¿½Type of loanï¿½ï¿½ column in 
the loan fee table in paragraph (2) refers to a section of this title. 
(4) For the purposes of paragraph (2): 
(A) The term ï¿½ï¿½active duty veteranï¿½ï¿½ means any veteran eligible for the 
benefits of this chapter other than a Reservist. 
(B) The term ï¿½ï¿½Reservistï¿½ï¿½ means a veteran described in section 3701 
(b)(5)(A) of this title who is eligible under section 
3702(a)(2)(E) of this title. 
(C) The term ï¿½ï¿½other obligorï¿½ï¿½ means a person who is not a 
veteran, as defined in section 101 of this title or other provision of 
this chapter. 
(D) The term ï¿½ï¿½initial loanï¿½ï¿½ means a loan to a veteran guaranteed under 
section 3710 or made under section 3711 of this 
title if the veteran has never obtained a loan guaranteed under 
section 3710 or made under section 3711 of this title. 
(E) The term ï¿½ï¿½subsequent loanï¿½ï¿½ means a loan to a veteran, 
other than an interest rate reduction refinancing loan, guaranteed under 
section 3710 or made under section 3711 of this 
title if the veteran has previously obtained a loan guaranteed 
under section 3710 or made under section 3711 of this title. 
(F) The term ï¿½ï¿½interest rate reduction refinancing loanï¿½ï¿½ 
means a loan described in section 3710(a)(8), 3710(a)(9)(B)(i), 
3710(a)(11), 3712(a)(1)(F), or 3762(h) of this title. 
(G) The term ï¿½ï¿½0-downï¿½ï¿½ means a downpayment, if any, of 
less than 5 percent of the total purchase price or construction 
cost of the dwelling. 
(H) The term ï¿½ï¿½5-downï¿½ï¿½ means a downpayment of at least 
5 percent or more, but less than 10 percent, of the total purchase price 
or construction cost of the dwelling. 
(I) The term ï¿½ï¿½10-downï¿½ï¿½ means a downpayment of 10 percent or more of the 
total purchase price or construction cost of 
the dwelling. 
(c) WAIVER OF FEE.-(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, but 
for the receipt of retirement pay, would be entitled to receive 
compensation) or from a surviving spouse of any veteran (including a 

619 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3731 

person who died in the active military, naval, or air service) who 
died from a service-connected disability. 

(2) A veteran who is rated eligible to receive compensation as 
a result of a pre-discharge disability examination and rating shall 
be treated as receiving compensation for purposes of this subsection as 
of the date on which the veteran is rated eligible to receive 
compensation as a result of the pre-discharge disability examination 
and rating without regard to whether an effective date of 
the award of compensation is established as of that date. 
(Added Pub. L. 97-253, title IV, Sec. 406(a)(1), Sept. 8, 1982, 96 
Stat. 805, Sec. 1829; amended Pub. L. 98-369, div. B, title V, Sec. 
2511(a), July 18, 1984, 98 Stat. 1117; Pub. L. 100-198, Sec. 2, 10(c), 
Dec. 21, 1987, 101 Stat. 1315, 1323; Pub. L. 100-203, title VII, Sec. 
7002, Dec. 22, 1987, 101 Stat. 1330-279; Pub. L. 100-322, title IV, 
Sec. 415(c)(6), May 20, 1988, 102 Stat. 551; Pub. L. 101-237, title III, 
Sec. 303(a), 313(b)(1), Dec. 18, 1989, 103 Stat. 2071, 2077; Pub. L. 
101-239, title V, Sec. 5001, Dec. 19, 1989, 103 Stat. 2136; Pub. L. 
101-508, title VIII, Sec. 8032, Nov. 5, 1990, 104 Stat. 1388-348; Pub. 
L. 102-54, Sec. 15(a)(3), (4), June 13, 1991, 105 Stat.  289; renumbered 
Sec. 3729 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406; Pub. L. 102-547, Sec. 2(b)(1), 5, Oct. 28, 1992, 106 
Stat. 3633, 3636; Pub. L. 103-66, title XII, Sec. 12007, Aug. 10, 1993, 
107 Stat. 414; Pub. L. 103-446, title IX, Sec. 904(c), Nov. 2, 1994, 
108 Stat. 4677; Pub. L. 104-275, title II, Sec. 202(b), Oct. 9, 1996, 
110 Stat. 3330; Pub. L. 105-33, title VIII, Secs. 8012, 8032, Aug. 5, 
1997, 111 Stat. 664, 669; Pub. L. 105-368, title VI, Secs. 602(e)(1)(D), 
603(b), Nov. 11, 1998, 112 Stat. 3346, 3348; Pub. L. 106-419, title IV, 
Sec. 402(b), Nov. 1, 2000, 114 Stat. 1861; Pub. L. 107-14, Sec. 8(b)(4), 
June 5, 2001, 115 Stat. 36; Pub. L. 107-103, title IV, Secs. 405(c), 
406, Dec. 27, 2001, 115 Stat. 994; Pub. L. 108-183, title IV, Sec. 405, 
Dec. 16, 2003, 117 Stat. 2665; Pub. L. 108-454, title 
IV, Sec. 406, Dec. 10, 2004, 118 Stat. 3617.) 
ï¿½ 3730. Use of attorneys in court 

(a) The Secretary shall authorize attorneys employed by the 
Department of Veterans Affairs to exercise the right of the United 
States to bring suit in court to foreclose a loan made or acquired 
by the Secretary under this chapter and to recover possession of 
any property acquired by the Secretary under this chapter. The 
Secretary may acquire the services of attorneys, other than those 
who are employees of the Department of Veterans Affairs, to exercise 
that right. The activities of attorneys in bringing suit under 
this section shall be subject to the direction and supervision of the 
Attorney General and to such terms and conditions as the Attorney 
General may prescribe. 
(b) Nothing in this section derogates from the authority of the 
Attorney General under sections 516 and 519 of title 28 to direct 
and supervise all litigation to which the United States or an agency 
or officer of the United States is a party. 
(Added Pub. L. 98-369, div. B, title V, Sec. 2512(b)(1), July 18, 1984, 
98 Stat. 1120, Sec. 1830; amended Pub. L. 99-576, title IV, Sec. 406, 
Oct. 28, 1986, 100 Stat. 3282; Pub. L. 101-237, title III, Sec. 
313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3730, 
Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105- 
368, title X, Sec. 1005(b)(12), Nov. 11, 1998, 112 Stat. 3365.) 

ï¿½ 3731. Appraisals 

(a) The Secretary shall- 
(1) subject to subsection (b)(2) and in consultation with appropriate 
representatives of institutions which are regularly engaged in making 
housing loans, prescribe uniform qualifications for appraisers, 
including the successful completion of a written test, submission of a 
sample appraisal, certification of 

Sec. 3731 CH. 37-HOUSING AND SMALL BUSINESS LOANS 620 

an appropriate number of years of experience as an appraiser, 
and submission of recommendations from other appraisers; 

(2) use such qualifications in determining whether to approve an 
appraiser to make appraisals of the reasonable value 
of any property, construction, repairs, or alterations for the 
purposes of this chapter; and 
(3) in consultation with local representatives of institutions 
described in clause (1) of this subsection, develop and maintain 
lists of appraisers who are approved under clause (2) of this 
subsection to make appraisals for the purposes of this chapter. 
(b)(1) The Secretary shall select appraisers from a list required 
by subsection (a)(3) of this section on a rotating basis to make 
appraisals for the purposes of this chapter. 

(2) If uniform qualifications become applicable for appraisers 
who perform appraisals for or in connection with the Federal 
Government, the qualifications required by subsection (a)(1) of this 
section may be more stringent than such uniform qualifications, but 
the Secretary may use no written test in determining the qualifications 
of appraisers other than the test prescribed to implement 
such uniform qualifications. 
(c) Except as provided in subsection (f) of this section, the appraiser 
shall forward an appraisal report to the Secretary for review. Upon 
receipt of such report, the Secretary shall determine 
the reasonable value of the property, construction, repairs, or 
alterations for purposes of this chapter, and notify the veteran of such 
determination. Upon request, the Secretary shall furnish a copy of 
the appraisal made of property for the purposes of this chapter to 
the lender proposing to make the loan which is to be secured by 
such property and is to be guaranteed under this chapter. 
(d) If a lender (other than a lender authorized under subsection 
(f) of this section to determine reasonable value)- 
(1) has proposed to make a loan to be guaranteed under 
this chapter, 
(2) has been furnished a certificate of reasonable value of 
any property or of any construction, repairs, or alterations of 
property which is to be the security for such loan, and 
(3) within a reasonable period prescribed by the Secretary, 
has furnished to the Secretary an additional appraisal of the 
reasonable value of such property, construction, repairs, or 
alterations which was made by an appraiser selected by the 
lender from the list required by subsection (a)(3) of this section, 
the Secretary shall consider both the initial appraisal and the 
additional appraisal and shall, if appropriate, issue a revised 
certificate of reasonable value of such property, construction, 
repairs, or alterations. 

(e)(1) In no case may a veteran be required to pay all or any 
portion of the cost of the additional appraisal described in 
subsection (d)(3) of this section. 

(2) If a veteran, within a reasonable period prescribed by the 
Secretary, has furnished to the Secretary an additional appraisal 
of the reasonable value of such property, construction, repairs, or 
alterations which was made by an appraiser selected by the veteran 
from the list required by subsection (a)(3) of this section, the 

621 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3732 

Secretary shall consider such appraisal, along with other appraisals 
furnished to the Secretary, and shall, if appropriate, issue a revised 
certificate of reasonable value of such property, construction, 
repairs, or alterations. 

(f)(1) Subject to the provisions of paragraphs (2) and (3) of this 
subsection, the Secretary may, in accordance with standards and 
procedures established in regulations prescribed by the Secretary, 
authorize a lender to determine the reasonable value of property 
for the purposes of this chapter if the lender is authorized to make 
loans which are automatically guaranteed under section 3702(d) of 
this title. In such a case, the appraiser selected by the Secretary 
pursuant to subsection (b) of this section shall submit the appraisal 
report directly to the lender for review, and the lender shall, as 
soon as possible thereafter, furnish a copy of the appraisal to the 
veteran who is applying for the loan concerned and to the Secretary. 

(2) In exercising the authority provided in paragraph (1) of this 
subsection, the Secretary shall assign a sufficient number of personnel 
to carry out an appraisal-review system to monitor, on at 
least a random-sampling basis, the making of appraisals by appraisers 
and the effectiveness and the efficiency of the determination of 
reasonable value of property by lenders. 
(4) Not later than April 30 of each year following a year in 
which the Secretary authorizes lenders to determine reasonable 
value of property under this subsection, the Secretary shall submit 
to the Committees on Veteransï¿½ Affairs of the Senate and the 
House of Representatives a report relating to the exercise of that 
authority during the year in which the authority was exercised. 
(5) A report submitted pursuant to paragraph (4) of this subsection 
shall include, for the period covered by each report- 
(A) the number and value of loans made by lenders exercising the 
authority of this subsection; 
(B) the number and value of such loans reviewed by the 
appraisal-review monitors referred to in paragraph (2) of this 
subsection; 
(C) the number and value of loans made under this subsection of which 
the Secretary received notification of default; 
(D) the amount of guaranty paid by the Secretary to such 
lenders by reason of defaults on loans as to which reasonable 
value was determined under this subsection; and 
(E) such recommendations as the Secretary considers appropriate to 
improve the exercise of the authority provided for 
in this subsection and to protect the interests of the United 
States. 
(Added Pub. L. 99-576, title IV, Sec. 407(a), Oct. 28, 1986, 100 Stat. 
3282, Sec. 1831; amended Pub. L. 100-198, Sec. 11(a), (b), Dec. 21, 
1987, 101 Stat. 1324; Pub. 

L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
Pub. L. 102-54, Sec. 3(b), (c), June 13, 1991, 105 Stat. 267; 
renumbered Sec. 3731 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-547, Sec. 7, Oct. 28, 1992, 
106 Stat. 3636; Pub. L. 104-110, title I, Sec. 101(g), Feb. 13, 1996, 
110 Stat. 768.) 
ï¿½ 3732. Procedure on default 

(a)(1) In the event of default in the payment of any loan guaranteed 
under this chapter, the holder of the obligation shall notify 


Sec. 3732 CH. 37-HOUSING AND SMALL BUSINESS LOANS 622 

the Secretary of such default. Upon receipt of such notice, the 
Secretary may, subject to subsection (c) of this section, pay to such 
holder the guaranty not in excess of the pro rata portion of the 
amount originally guaranteed. Except as provided in section 
3703(e) of this title, if the Secretary makes such a payment, the 
Secretary shall be subrogated to the rights of the holder of the 
obligation to the extent of the amount paid on the guaranty. 

(2) Before suit or foreclosure the holder of the obligation shall 
notify the Secretary of the default, and within thirty days thereafter 
the Secretary may, at the Secretaryï¿½s option, pay the holder 
of the obligation the unpaid balance of the obligation plus accrued 
interest and receive an assignment of the loan and security. Nothing in 
this section shall preclude any forebearance for the benefit 
of the veteran as may be agreed upon by the parties to the loan 
and approved by the Secretary. 
(3) The Secretary may establish the date, not later than the 
date of judgment and decree of foreclosure or sale, upon which accrual 
of interest or charges shall cease. 
(4)(A) Upon receiving a notice pursuant to paragraph (1) of this 
subsection, the Secretary shall- 

(i) provide the veteran with information and, to the extent 
feasible, counseling regarding- 
(I) alternatives to foreclosure, as appropriate in light 
of the veteranï¿½s particular circumstances, including possible methods 
of curing the default, conveyance of the 
property to the Secretary by means of a deed in lieu of 
foreclosure, and the actions authorized by paragraph (2) of 
this subsection; and 
(II) what the Department of Veterans Affairsï¿½ and the 
veteranï¿½s liabilities would be with respect to the loan in 
the event of foreclosure; and 
(ii) advise the veteran regarding the availability of such 
counseling; 
except with respect to loans made by a lender which the Secretary has 
determined has a demonstrated record of consistently providing timely 
and accurate information to veterans 
with respect to such matters. 
(B) The Secretary shall, to the extent of the availability of 
appropriations, ensure that sufficient personnel are available to 
administer subparagraph (A) of this paragraph effectively and 
efficiently. 
(5) In the event of default in the payment of any loan guaranteed or 
insured under this chapter in which a partial payment has 
been tendered by the veteran concerned and refused by the holder, 
the holder of the obligation shall notify the Secretary as soon as 
such payment has been refused. The Secretary may require that 
any such notification include a statement of the circumstances of 
the default, the amount tendered, the amount of the indebtedness 
on the date of the tender, and the reasons for the holderï¿½s refusal. 
(b) With respect to any loan made under section 3711 which 
has not been sold as provided in subsection (g) of such section, if 
the Secretary finds, after there has been a default in the payment 
of any installment of principal or interest owing on such loan, that 
the default was due to the fact that the veteran who is obligated 

623 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3732 

under the loan has become unemployed as the result of the closing 
(in whole or in part) of a Federal installation, the Secretary shall 

(1) extend the time for curing the default to such time as the 
Secretary determines is necessary and desirable to enable such veteran 
to complete payments on such loan, including an extension of 
time beyond the stated maturity thereof, or (2) modify the terms 
of such loan for the purpose of changing the amortization provisions 
thereof by recasting, over the remaining term of the loan, or 
over such longer period as the Secretary may determine, the total 
unpaid amount then due with the modification to become effective 
currently or upon the termination of an agreed-upon extension of 
the period for curing the default. 
(c)(1) For purposes of this subsection- 

(A) The term ï¿½ï¿½defaulted loanï¿½ï¿½ means a loan that is guaranteed under 
this chapter, that was made for a purpose described 
in section 3710(a) of this title, and that is in default. 
(B) The term ï¿½ï¿½liquidation saleï¿½ï¿½ means a judicial sale or 
other disposition of real property to liquidate a defaulted loan 
that is secured by such property. 
(C) The term ï¿½ï¿½net valueï¿½ï¿½, with respect to real property, 
means the amount equal to (i) the fair market value of the 
property, minus (ii) the total of the amounts which the Secretary 
estimates the Secretary would incur (if the Secretary 
were to acquire and dispose of the property) for property taxes, 
assessments, liens, property maintenance, property improvement, 
administration, resale (including losses sustained on the resale of 
the property), and other costs resulting from the acquisition and 
disposition of the property, excluding any amount 
attributed to the cost to the Government of borrowing funds. 
(D) Except as provided in subparagraph (D) of paragraph 
(10) of this subsection, the term ï¿½ï¿½total indebtednessï¿½ï¿½, with respect 
to a defaulted loan, means the amount equal to the total 
of (i) the unpaid principal of the loan, (ii) the interest on the 
loan as of the date applicable under paragraph (10) of this subsection, 
and (iii) such reasonably necessary and proper charges 
(as specified in the loan instrument and permitted by regulations 
prescribed by the Secretary to implement this subsection) 
associated with liquidation of the loan, including advances for 
taxes, insurance, and maintenance or repair of the real property 
securing the loan. 
(2)(A) Except as provided in subparagraph (B) of this para
graph, this subsection applies to any case in which the holder of 
a defaulted loan undertakes to liquidate the loan by means of a 
liquidation sale. 

(B) This subsection does not apply to a case in which the Secretary 
proceeds under subsection (a)(2) of this section. 
(3)(A) Before carrying out a liquidation sale of real property securing 
a defaulted loan, the holder of the loan shall notify the Secretary of 
the proposed sale. Such notice shall be provided in accordance with 
regulations prescribed by the Secretary to implement 
this subsection. 

(B) After receiving a notice described in subparagraph (A) of 
this paragraph, the Secretary shall determine the net value of the 
property securing the loan and the amount of the total indebted

Sec. 3732 CH. 37-HOUSING AND SMALL BUSINESS LOANS 624 

ness under the loan and shall notify the holder of the loan of the 
determination of such net value. 

(4) A case referred to in paragraphs (5), (6), and (7) of this 
subsection as being described in this paragraph is a case in which the 
net value of the property securing a defaulted loan exceeds the 
amount of the total indebtedness under the loan minus the amount 
guaranteed under this chapter. 
(5) In a case described in paragraph (4) of this subsection, if 
the holder of the defaulted loan acquires the property securing the 
loan at a liquidation sale for an amount that does not exceed the 
lesser of the net value of the property or the total indebtedness 
under the loan- 
(A) the holder shall have the option to convey the property 
to the United States in return for payment by the Secretary of 
an amount equal to the lesser of such net value or total indebtedness; 
and 
(B) the liability of the United States under the loan guaranty under 
this chapter shall be limited to the amount of such 
total indebtedness minus the net value of the property. 
(6) In a case described in paragraph (4) of this subsection, if 
the holder of the defaulted loan does not acquire the property securing 
the loan at the liquidation sale, the liability of the United 
States under the loan guaranty under this chapter shall be limited 
to the amount equal to (A) the amount of such total indebtedness, 
minus (B) the amount realized by the holder incident to the sale 
or the net value of the property, whichever is greater. 
(7) In a case described in paragraph (4) of this subsection, if 
the holder of the defaulted loan acquires the property securing the 
loan at the liquidation sale for an amount that exceeds the lesser 
of the total indebtedness under the loan or the net value and- 
(A)(i) the amount was the minimum amount for which, 
under applicable State law, the property was permitted to be 
sold at the liquidation sale, the holder shall have the option to 
convey the property to the United States in return for payment 
by the Secretary of an amount equal to the lesser of the 
amount for which the holder acquired the property or the total 
indebtedness under the loan; or 

(ii) there was no minimum amount for which the property 
had to be sold at the liquidation sale under applicable State 
law, the holder shall have the option to convey the property to 
the United States in return for payment by the Secretary of an 
amount equal to the lesser of such net value or total indebtedness; and 
(B) the liability of the United States under the loan guaranty under 
this chapter is as provided in paragraph (6) of this 
subsection. 
(8) If the net value of the property securing a defaulted loan 
is not greater than the amount of the total indebtedness under the 
loan minus the amount guaranteed under this chapter- 
(A) the Secretary may not accept conveyance of the property from the 
holder of the loan; and 
(B) the liability of the United States under the loan guaranty shall be 
limited to the amount of the total indebtedness 

625 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3732 

under the loan minus the amount realized by the holder of the 
loan incident to the sale at a liquidation sale of the property. 

(9) In no event may the liability of the United States under a 
guaranteed loan exceed the amount guaranteed with respect to 
that loan under section 3703(b) of this title. All determinations 
under this subsection of net value and total indebtedness shall be 
made by the Secretary. 
(10)(A) Except as provided in subparagraphs (B) and (C) of this 
paragraph, the date referred to in paragraph (1)(D)(ii) of this 
subsection shall be the date of the liquidation sale of the property 
securing the loan (or such earlier date following the expiration of a 
reasonable period of time for such sale to occur as the Secretary 
may specify pursuant to regulations prescribed by the Secretary to 
implement this subsection). 

(B)(i) Subject to division (ii) of this subparagraph, in any case 
in which there is a substantial delay in such sale caused by the 
holder of the loan exercising forebearance at the request of the 
Secretary, the date referred to in paragraph (1)(D)(ii) of this 
subsection shall be such date, on or after the date on which forebearance 
was requested and prior to the date of such sale, as the Secretary 
specifies pursuant to regulations which the Secretary shall prescribe to 
implement this paragraph. 

(ii) The Secretary may specify a date under subdivision (i) of 
this subparagraph only if, based on the use of a date so specified 
for the purposes of such paragraph (1)(D)(ii), the Secretary is 
authorized, under paragraph (5)(A) or (7)(A) of this subsection, to 
accept conveyance of the property. 
(C) In any case in which there is an excessive delay in such 
liquidation sale caused- 
(i) by the Department of Veterans Affairs (including any 
delay caused by its failure to provide bidding instructions in a 
timely fashion); or 
(ii) by a voluntary case commenced under title 11, United 
States Code (relating to bankruptcy); 
the date referred to in paragraph (1)(D)(ii) of this subsection 
shall be a date, earlier than the date of such liquidation sale, 
which the Secretary specifies pursuant to regulations which 
the Secretary shall prescribe to implement this paragraph. 
(D) For the purpose of determining the liability of the United 
States under a loan guaranty under paragraphs (5)(B), (6), (7)(B), 
and (8)(B), the amount of the total indebtedness with respect to 
such loan guaranty shall include, in any case in which there was 
an excessive delay caused by the Department of Veterans Affairs 
in the liquidation sale of the property securing such loan, any
interest which had accrued as of the date of such sale and which 
would not be included, except for this subparagraph, in the calculation 
of such total indebtedness as a result of the specification of an 
earlier date under subparagraph (C)(i) of this paragraph. 
(11) This subsection shall apply to loans closed before October 
1, 2012. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1212, Sec. 1816(a)-(c); 
Pub. L. 89-117, title I, Sec. 107(f), Aug. 10, 1965, 79 Stat. 460; 
Pub. L. 94-324, Sec. 7(17), June 30, 1976, 90 Stat. 722; Pub. L. 
98-369, div. B, title V, Sec. 2512(a), July 18, 1984, 98 Stat. 
1117; Pub. L. 100-198, Sec. 4(a), 5(a), Dec. 21, 1987, 101 Stat. 
1316; renumbered 


Sec. 3733 CH. 37-HOUSING AND SMALL BUSINESS LOANS 626 

Sec. 1832 and amended Pub. L. 100-322, title IV, Sec. 415(b)(1)(A)-
(C), (5), May 20, 1988, 102 Stat. 550, 551; Pub. L. 101-237, title III, 
Sec. 304(b), 307-308(b)(1), 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 
2073-2075, 2077; Pub. L. 102-54, Sec. 1, 3(a), 14(g)(1), June 13, 1991, 
105 Stat. 267, 288; renumbered Sec. 3732 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-66, title 
XII, Sec. 12006(a), Aug. 10, 1993, 107 Stat. 414; Pub. L. 103-446, 
title IX, Sec. 907, Nov. 2, 1994, 108 Stat. 4677; Pub. L. 105-33, title 
VIII, Sec. 8013, Aug. 5, 1997, 111 Stat. 664; Pub. L. 106-419, title IV, 
Sec. 402(c), Nov. 1, 2000, 114 Stat. 1863; Pub. L. 107-103, title IV, 
Sec. 405(d), Dec. 27, 2001, 115 Stat. 994; Pub. L. 108-183, title IV, 
Sec. 406, Dec. 16, 2003, 117 Stat. 2666; Pub. L. 109-233, title V, Sec. 
503(9), June 15, 2006, 120 Stat. 416.) 

ï¿½ 3733. Property management 

(a)(1) Of the number of purchases made during any fiscal year 
of real property acquired by the Secretary as the result of a default 
on a loan guaranteed under this chapter for a purpose described in 
section 3710(a) of this title, not more than 65 percent, nor less than 
50 percent, of such purchases may be financed by a loan made by 
the Secretary. The maximum percentage stated in the preceding 
sentence may be increased to 80 percent for any fiscal year if the 
Secretary determines that such an increase is necessary in order 
to maintain the effective functioning of the loan guaranty program. 

(2) After September 30, 1990, the percentage limitations described in 
paragraph (1) of this subsection shall have no effect. 
(3) The Secretary may, beginning on October 1, 1990, sell any 
note evidencing a loan referred to in paragraph (1)- 
(A) with recourse; or 
(B) without recourse, but only if the amount received is 
equal to an amount which is not less than the unpaid balance 
of such loan. 
(4)(A) Except as provided in subparagraph (B), the amount of 
a loan made by the Secretary to finance the purchase of real property 
from the Secretary described in paragraph (1) may not exceed 
an amount equal to 95 percent of the purchase price of such real 
property. 

(B)(i) The Secretary may waive the provisions of subparagraph 

(A) in the case of any loan described in paragraph (5). 
(ii) A loan described in subparagraph (A) may, to the extent 
the Secretary determines to be necessary in order to market 
competitively the property involved, exceed 95 percent of the purchase 
price. 
(5) The Secretary may include, as part of a loan to finance a 
purchase of real property from the Secretary described in paragraph 
(1), an amount to be used only for the purpose of rehabilitating such 
property. Such amount may not exceed the amount necessary to 
rehabilitate the property to a habitable state, and payments shall be 
made available periodically as such rehabilitation is 
completed. 
(6) The Secretary shall make a loan to finance the sale of real 
property described in paragraph (1) at an interest rate that is 
lower than the prevailing mortgage market interest rate in areas 
where, and to the extent, the Secretary determines, in light of 
prevailing conditions in the real estate market involved, that such 
lower interest rate is necessary in order to market the property 
competitively and is in the interest of the long-term stability and 

627 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3733 

solvency of the Veterans Housing Benefit Program Fund established by 
section 3722(a) of this title. 

(7) During the period that begins on December 16, 2003 and 
ends on September 30, 2013, the Secretary shall carry out the 
provisions of this subsection as if- 
(A) the references in the first sentence of paragraph (1) to 
ï¿½ï¿½65 percentï¿½ï¿½ and ï¿½ï¿½may be financedï¿½ï¿½ were references to ï¿½ï¿½85 
percentï¿½ï¿½ and ï¿½ï¿½shall be financedï¿½ï¿½, respectively; 
(B) the second sentence of paragraph (1) were repealed; 
and 
(C) the reference in paragraph (2) to ï¿½ï¿½September 30, 1990,ï¿½ï¿½ 
were a reference to ï¿½ï¿½September 30, 2013,ï¿½ï¿½. 
(b) The Secretary may not make a loan to finance a purchase 
of property acquired by the Secretary as a result of a default on 
a loan guaranteed under this chapter unless the purchaser meets 
the credit underwriting standards established under section 
3710(g)(2)(A) of this title. 
(c)(1) The Secretary shall identify and compile information on 
common factors which the Secretary finds contribute to foreclosures 
on loans guaranteed under this chapter. 

(2) The Secretary shall include a summary of the information 
compiled, and the Secretaryï¿½s findings, under paragraph (1) in the 
annual report submitted to the Congress under section 529 of this 
title. As part of such summary and findings, the Secretary shall 
provide a separate analysis of the factors which contribute to 
foreclosures of loans which have been assumed. 
(d)(1) The Secretary shall furnish to real estate brokers and 
other real estate sales professionals information on the availability 
of real property for disposition under this chapter and the procedures 
used by the Department of Veterans Affairs to dispose of 
such property. 

(2) For the purpose of facilitating the most expeditious sale, at 
the highest possible price, of real property acquired by the Secretary 
as the result of a default on a loan guaranteed, insured, or 
made under this chapter, the Secretary shall list all such property 
with real estate brokers under such arrangements as the Secretary 
determines to be most appropriate and cost effective. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1212, Sec. 1816(d)-(f), 1832; 
Pub. L. 98-369, div. B, title V, Sec. 2512(a)(2), July 18, 1984, 98 
Stat. 1117; Pub. L. 99-576, title IV, Sec. 402(c)(1), 403, 408(a), Oct. 
28, 1986, 100 Stat. 3281, 3283; Pub. L. 100-136, Sec. 2, Oct. 16, 1987, 
101 Stat. 813; Pub. L. 100-198, Sec. 6(a)(1), (b)(1), 14, Dec. 21, 
1987, 101 Stat. 1317, 1318, 1325; Pub. L. 100-203, title VII, Sec. 7001, 
7003(a), Dec. 22, 1987, 101 Stat. 1330-278, 1330-279; Pub. L. 100-253, 
Sec. 2, Feb. 29, 1988, 102 Stat. 20; renumbered Sec. 1833 and amended 
Pub. L. 100-322, title IV, Sec. 415(b)(1)(D), (5)(B), (C), May 20, 
1988, 102 Stat. 550, 551; Pub. L. 100-689, title III, Sec. 301, Nov. 
18, 1988, 102 Stat. 4176; Pub. L. 101-237, title III, Sec. 305(a), 
313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2073, 2077; Pub. L. 101-239, 
title V, Sec. 5002, 5003(a), Dec. 19, 1989, 103 Stat. 2136; Pub. L.
102-54, Sec. 2, 14(g)(1), 15(a)(5), June 13, 1991, 105 Stat. 267, 288, 
289; renumbered Sec. 3733 and amended Pub. L. 102-83, Sec. 2(c)(3), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 402, 406; Pub. L. 102-291, Sec. 
5(b), May 20, 1992, 106 Stat. 180; Pub. L. 105-368, title VI, Sec. 
602(c)(2), (e)(1)(E), Nov. 11, 1998, 112 Stat. 3346; Pub. L. 108-183, 
title IV, Sec. 404, Dec. 16, 2003, 117 Stat. 2664; Pub. L. 109-233, 
title V, Sec. 503(10), June 15, 2006, 
120 Stat. 416.) 


Sec. 3734 CH. 37-HOUSING AND SMALL BUSINESS LOANS 628 

ï¿½ 3734. Annual submission of information on the Veterans 
Housing Benefit Program Fund and housing programs 

(a) In the documents providing detailed information on the 
budget for the Department of Veterans Affairs that the Secretary 
submits to the Congress in conjunction with the Presidentï¿½s budget 
submission for each fiscal year pursuant to section 1105 of title 31, 
the Secretary shall include- 
(1) a description of the operations of the Veterans Housing 
Benefit Program Fund and the Guaranty and Indemnity Fund 
during the fiscal year preceding the fiscal year in which such 
budget is submitted; and 
(2) the needs of such fund, if any, for appropriations for- 
(A) the fiscal year in which the budget is submitted; 
and 
(B) the fiscal year for which the budget is submitted. 
(b) The matters submitted under subsection (a) of this section 
shall include, with respect to the fund referred to in subsection (a), 
the following: 
(1) Information and financial data on the operations of the 
fund during the fiscal year before the fiscal year in which such 
matters are submitted and estimated financial data and related 
information on the operation of the fund for- 
(A) the fiscal year of the submission; and 
(B) the fiscal year following the fiscal year of the submission. 
(2) Estimates of the amount of revenues derived by the 
fund in the fiscal year preceding the fiscal year of the submission, 
in the fiscal year of the submission, and in the fiscal year 
following the fiscal year of the submission from each of the following 
sources: 
(A) Fees collected under section 3729(a) of this title for 
each category of loan guaranteed, insured, or made under 
this chapter or collected under section 3729(b) of this title 
for assumed loans. 
(B) Investment income. 
(C) Sales of foreclosed properties. 
(D) Loan asset sales. 
(E) Each additional source of revenue. 
(3) Information, for each fiscal year referred to in paragraph (2) of 
this subsection, regarding the types of dispositions 
made and anticipated to be made of defaults on loans guaranteed, 
insured, or made under this chapter, including the cost 
to the fund, and the numbers, of such types of dispositions. 
(c) The information submitted under subsection (a) shall include a 
statement that summarizes the financial activity of each of 
the housing programs operated under this chapter. The statement 
shall be presented in a form that is simple, concise, and readily 
understandable, and shall not include references to financing accounts, 
liquidating accounts, or program accounts. 
(Added Pub. L. 101-237, title III, Sec. 302(b)(1), Dec. 18, 1989, 103 
Stat. 2070, Sec. 1834; renumbered Sec. 3734 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105-368, title 
VI, Sec. 602(d), (e)(1)(F), (3)(A), Nov. 11, 


629 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3742 

1998, 112 Stat. 3346, 3347; Pub. L. 107-14, Sec. 8(a)(9), June 5, 2001, 
115 Stat. 35; 
Pub. L. 107-330, title III, Sec. 308(g)(12), Dec. 6, 2002, 116 Stat. 
2829.) 

ï¿½ï¿½ 3735. Renumbered 2041ï¿½ 

ï¿½ 3736. Reporting requirements 

The annual report required by section 529 of this title shall include a 
discussion of the activities under this chapter. Beginning 
with the report submitted at the close of fiscal year 1996, and 
every second year thereafter, this discussion shall include information 
regarding the following: 

(1) Loans made to veterans whose only qualifying service 
was in the Selected Reserve. 
(2) Interest rates and discount points which were negotiated between 
the lender and the veteran pursuant to section 
3703(c)(4)(A)(i) of this title. 
(3) The determination of reasonable value by lenders pursuant to 
section 3731(f) of this title. 
(4) Loans that include funds for energy efficiency improvements 
pursuant to section 3710(a)(10) of this title. 
(5) Direct loans to Native American veterans made pursu
ant to subchapter V of this chapter. 
(Added Pub. L. 104-110, title II, Sec. 201(a)(1), Feb. 13, 1996, 110 
Stat. 770.) 

SUBCHAPTER IV-SMALL BUSINESS LOANS 

ï¿½ 3741. Definitions 

For the purposes of this subchapter- 

(1) The term ï¿½ï¿½disabled veteranï¿½ï¿½ means (A) a veteran who 
is entitled to compensation under laws administered by the 
Secretary for a disability rated at 30 percent or more, or (B) 
a veteran whose discharge or release from active duty was for 
a disability incurred or aggravated in line of duty. 
(2) The term ï¿½ï¿½veteran of the Vietnam eraï¿½ï¿½ means a person 
(A) who served on active duty for a period of more than 180 
days, any part of which occurred during the Vietnam era, and 
who was discharged or released therefrom with other than a 
dishonorable discharge, or (B) who was discharged or released 
from active duty for a service-connected disability if any part 
of such active duty was performed during the Vietnam era. 
(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1055, Sec. 1841; 
amended Pub. L. 99-576, title VII, Sec. 702(9), Oct. 28, 1986, 100 
Stat. 3302; renumbered Sec. 3741 and amended Pub. L. 102-83, Sec. 
4(a)(1), 5(a), Aug. 6, 1991, 
105 Stat. 403, 406.) 

ï¿½ 3742. Small business loan program 

(a)(1) Subject to subsection (b) of this section, the Secretary 
may provide financial assistance to veteransï¿½ small business concerns 
for the purpose of (A) financing plant construction, conversion, or 
expansion (including the acquisition of land), (B) financing 
the acquisition of equipment, facilities, machinery, supplies, or 
materials, or (C) supplying such concerns with working capital. 

(2) Subject to paragraph (3)(A) of this subsection, financial 
assistance under this section may be provided in the form of (A) loan 
guaranties, or (B) direct loans. 

Sec. 3742 CH. 37-HOUSING AND SMALL BUSINESS LOANS 630 

(3) The Secretary shall specify in regulations the criteria to be 
met for a business concern to qualify as a veteransï¿½ small business 
concern for the purposes of this subchapter. Such regulations shall 
include requirements- 
(A) that at least 51 percent of a business concern must be 
owned by individuals who are veterans of the Vietnam era or 
disabled veterans in order for such concern to qualify for a loan 
guaranty and that at least 51 percent of a business concern 
must be owned by disabled veterans in order for such concern 
to qualify for a direct loan; and 
(B) that the management and daily business operations of 
the concern must be directed by one or more of the veterans 
whose ownership interest is part of the majority ownership for 
the purposes of meeting the requirement in clause (A) of this 
paragraph. 
(b) The availability of financial assistance under subsection (a) 
of this section is subject to the following limitations: 
(1) The Secretary may not make a direct loan under this 
section unless the veteransï¿½ small business concern applying 
for the loan shows to the satisfaction of the Secretary that the 
concern is unable to obtain a loan guaranteed by the Department under 
this section or made or guaranteed by the Small 
Business Administration. 
(2) The Secretary may not guarantee a loan under this section if the 
loan bears a rate of interest in excess of the maximum rate of interest 
prescribed under section 3745 of this 
title. 
(3) The Secretary may not make or guarantee a loan under 
this section for an amount in excess of $200,000. 
(4) The original liability of the Secretary on any loan guaranteed 
under this section may not exceed 90 percent of the 
amount of the loan, and such liability shall decrease or increase pro 
rata with any decrease or increase of the amount of 
the unpaid portion of the loan, but such liability may not exceed the 
amount of the original guaranty. 
(c) Each loan made or guaranteed under this subchapter shall 
be of such sound value, taking into account the creditworthiness of 
the veteransï¿½ small business concern (and the individual owners) 
applying for such loan, or so secured as reasonably to assure payment. 
(d)(1) Except as provided in paragraph (2) of this subsection, 
the Secretary may not make or guarantee a loan under this subchapter to 
a veteransï¿½ small business concern in which an ownership interest is 
held by a veteran who also has an ownership interest in another small 
business concern if such ownership interest 
was considered in qualifying that other concern for an outstanding 
loan made or guaranteed under this subchapter or the Small Business Act 
(15 U.S.C. 631 et seq.). 

(2) Paragraph (1) of this subsection shall not apply if 51 percent or 
more of the business concern seeking a direct or guaranteed 
loan under this subchapter is owned by veterans of the Vietnam 
era or disabled veterans without including the ownership interest 
of the veteran whose ownership interest in another small business 
concern was previously considered in qualifying that other concern 

631 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3742 

for an outstanding guaranteed or direct business loan under this 
subchapter or the Small Business Act (15 U.S.C. 631 et seq.). 

(e)(1) In order to protect the interest of the United States, upon 
application by a veteransï¿½ small business concern which is the 
recipient of a loan guaranteed under this subchapter, the Secretary 
(subject to the provisions of this subsection) may undertake the 
veteransï¿½ small business concernï¿½s obligation to make payments 
under such loan or, if the loan was a direct loan made by the 
Secretary, may suspend such obligation. While such payments are 
being made by the Secretary pursuant to the undertaking of such 
obligation or while such obligation is suspended, no such payment 
with respect to the loan may be required from the concern. 

(2) The Secretary may undertake or suspend a veteransï¿½ small 
business concernï¿½s obligation under this subsection only if- 
(A) such undertaking or suspension of the obligation is, in 
the judgment of the Secretary, necessary to protect the interest 
of the United States; 
(B) with the undertaking or suspension of the obligation, 
the small business concern would, in the judgment of the Secretary, 
become or remain a viable small business entity; and 
(C) the small business concern executes an agreement in 
writing satisfactory to the Secretary as provided by paragraph 
(4) of this subsection. 
(3) The period of time for which the Secretary undertakes or 
suspends the obligation on a loan under this subsection may not 
exceed five years. The Secretary may extend the maturity of any 
loan on which the Secretary undertakes or suspends the obligation 
under this subsection for a corresponding period of time. 
(4)(A) Before the Secretary may undertake or suspend a veteransï¿½ small 
business concernï¿½s obligation under this subsection, 
the Secretary shall require the small business concern to execute 
an agreement to repay the aggregate amount of the payments 
which were required under the loan during the period for which 
the obligation was undertaken or suspended- 

(i) by periodic payments not less in amount or less frequently falling 
due than those which were due under the loan 
during such period, 
(ii) pursuant to a repayment schedule agreed upon by the 
Secretary and the small business concern, or 
(iii) by a combination of the method of payments described 
in clauses (i) and (ii) of this subparagraph. 
(B) In addition to requiring the small business concern to execute the 
agreement described in subparagraph (A) of this paragraph, the 
Secretary shall, before the undertaking or suspension of 
the obligation, take such action and require the small business concern 
to take such action as the Secretary considers appropriate in 
the circumstances, including the provision of such security as the 
Secretary considers necessary or appropriate, to assure that the 
rights and interest of the United States and any lender will be 
safeguarded adequately during and after the period in which such 
obligation is so undertaken or suspended. 
(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1055, Sec. 1842; amended Pub. L. 99-576, title VII, Sec. 702(10), Oct. 
28, 1986, 100 Stat. 3302; Pub. 

L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 

Sec. 3743 CH. 37-HOUSING AND SMALL BUSINESS LOANS 632 

3742 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), 5(a), (c)(1), 
Aug. 6, 1991, 105 
Stat. 404, 406.) 

ï¿½ 3743. Liability on loans 

Each individual who has an ownership interest in a veteransï¿½ 
small business concern that is provided a direct loan under this 
subchapter, or that obtains a loan guaranteed under this subchapter, 
shall execute a note or other document evidencing the direct or guaranteed 
business loan, and such individuals shall be 
jointly and severally liable to the United States for the amount of 
such direct loan or, in the case of a guaranteed loan, for any 
amount paid by the Secretary on account of such loan. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1057, Sec. 1843; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3743, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3744. Approval of loans by the Secretary 

(a) Except as provided in subsection (b) of this section, a loan 
may not be guaranteed under this subchapter unless, before the 
closing of the loan, it is submitted to the Secretary for approval 
and the Secretary grants approval. 
(b) The Secretary may exempt any lender of a class of lenders 
listed in section 3702(d) of this title from the prior approval 
requirement in subsection (a) of this section if the Secretary 
determines that the experience of such lender or class of lenders 
warrants such exemption. 
(c) The Secretary may at any time upon thirty daysï¿½ notice require 
loans to be made by any lender or class of lenders under this 
subchapter to be submitted to the Secretary for prior approval. No 
guaranty shall exist with respect to any such loan unless evidence 
of the guaranty is issued by the Secretary. 
(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1057, Sec. 1844; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3744 and amended 
Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406.) 

ï¿½ 3745. Interest on loans 

(a) Loans guaranteed under this subchapter shall bear interest 
not in excess of such rate as the Secretary may from time to time 
find the loan market demands. In establishing the rate of interest 
that shall be applicable to such loans, the Secretary shall consult 
with the Administrator of the Small Business Administration. 
(b) The rate of interest on any direct loan made by the Secretary 
under this subchapter may not exceed the maximum rate in 
effect under subsection (a) of this section at the time the direct loan 
is made. 
(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1058, Sec. 1845; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3745 and amended Pub. 
L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406;
Pub. L. 103-446, title XII, Sec. 1201(a)(3), Nov. 2, 1994, 
108 Stat. 4682.) 

ï¿½ 3746. Maturity of loans 

The maturity of a loan made or guaranteed under this subchapter that is 
used in whole or in part for the construction, con


633 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3749 

version, or expansion of facilities or for acquisition of real property 
may not exceed twenty years plus such additional reasonable time 
as the Secretary may determine, at the time the loan is made, is 
required to complete the construction, acquisition, or expansion of 
such facilities. The maturity of any other loan made or guaranteed 
under this subchapter may not exceed ten years. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1058, Sec. 1846; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3746, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3747. Eligible financial institutions 

The Secretary may not guarantee under this subchapter a loan 
made by an entity not subject to examination and supervision by 
an agency of the United States or of a State. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1058, Sec. 1847; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3747, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3748. Preference for disabled veterans 

In the extension of financial assistance under this subchapter, 
the Secretary shall give preference, first, to veteransï¿½ small 
business concerns in which disabled veterans who have successfully 
completed a vocational rehabilitation program for self-employment 
in a small business enterprise under chapter 31 of this title have 
a significant ownership interest, and, second, to veteransï¿½ small 
business concerns in which other disabled veterans have a significant 
ownership interest. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1058, Sec. 1848; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3748, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3749. Revolving fund 

(a) There is established in the Treasury a revolving fund to be 
known as the ï¿½ï¿½Department of Veterans Affairs Small Business 
Loan Revolving Fundï¿½ï¿½ (hereinafter in this section referred to as the 
ï¿½ï¿½fundï¿½ï¿½). 
(b) Amounts in the fund shall be available to the Secretary 
without fiscal year limitation for all loan guaranty and direct loan 
operations under this subchapter other than administrative expenses 
and may not be used for any other purpose. 
(c)(1) There is authorized to be appropriated to the fund a total 
of $25,000,000. 

(2) There shall be deposited into the fund all amounts received 
by the Secretary derived from loan operations under this subchapter, 
including all collection of principal and interest and the 
proceeds from the use of property held or of property sold. 
(d) The Secretary shall determine annually whether there has 
developed in the fund a surplus which, in the Secretaryï¿½s judgment, 
is more than necessary to meet the needs of the fund. Any such 
surplus shall immediately be transferred into the general fund of 
the Treasury. 
(e) Not later than two years after the termination of the authority 
of the Secretary to make new commitments for financial assistance 
under this subchapter, the Secretary shall transfer into 

Sec. 3750 CH. 37-HOUSING AND SMALL BUSINESS LOANS 634 

the general fund of the Treasury all amounts in the fund except 
those that the Secretary determines may be required for the liquidation 
of obligations under this subchapter. All amounts received thereafter 
derived from loan operations under this subchapter, except so much 
thereof as the Secretary may determine to be necessary for liquidating 
outstanding obligations under this subchapter, shall also be so deposited. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1058, Sec. 1849; amended Pub. L. 99-576, title VII, Sec. 702(11), Oct. 
28, 1986, 100 Stat. 3302; Pub.

L. 101-237, title III, Sec. 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; 
renumbered Sec. 3749 and amended Pub. L. 102-83, Sec. 4(a)(2)(B)(v), 
5(a), Aug. 6, 1991, 105 Stat. 403, 406.) 
ï¿½ 3750. Incorporation of other provisions by the Secretary 

The Secretary may provide that the provisions of sections of 
other subchapters of this chapter that are not otherwise applicable 
to loans made or guaranteed under this subchapter shall be applicable 
to loans made or guaranteed under this subchapter. The Secretary shall 
exercise authority under the preceding sentence by 
regulations prescribed after publication in the Federal Register and 
a period of not less than thirty days for public comment. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1059, Sec. 1850;amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3750, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3751. Termination of program 

The Secretary may not make commitments for financial assistance under 
this subchapter after September 30, 1986. 

(Added Pub. L. 97-72, title III, Sec. 302(a), Nov. 3, 1981, 95 Stat. 
1059, Sec. 1851; amended Pub. L. 101-237, title III, Sec. 313(b)(1), 
Dec. 18, 1989, 103 Stat. 2077; renumbered Sec. 3751, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

SUBCHAPTER V-DIRECT HOUSING LOANS FOR NATIVE 
AMERICAN VETERANS 


ï¿½ 3761. Direct housing loans to Native American veterans; 
program authority 

(a) The Secretary shall make direct housing loans to Native 
American veterans. The purpose of such loans is to permit such 
veterans to purchase, construct, or improve dwellings on trust land. 
The Secretary shall make such loans in accordance with the provisions 
of this subchapter. 
(b) The Secretary shall, to the extent practicable, make direct 
housing loans to Native American veterans who are located in a variety 
of geographic areas and in areas experiencing a variety of economic 
circumstances. 
(Added Pub. L. 102-547, Sec. 8(a), Oct. 28, 1992, 106 Stat. 3636; 
amended Pub. L. 105-114, title II, Sec. 201(a), Nov. 21, 1997, 111 
Stat. 2282; Pub. L. 107-103, title IV, Sec. 402(a), Dec. 27, 2001, 115 
Stat. 993; Pub. L. 108-454, title IV, Sec. 407, Dec. 10, 2004, 118 Stat. 
3617; Pub. L. 109-233, title I, Sec. 103(a), (f)(2), June 15, 
2006, 120 Stat. 399, 400.) 

ï¿½ 3762. Direct housing loans to Native American veterans; 
program administration 

(a) The Secretary may make a direct housing loan to a Native 
American veteran under this subchapter if- 

635 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3762 

(1)(A) the Secretary has entered into a memorandum of 

understanding with respect to such loans with the tribal orga

nization that has jurisdiction over the veteran; or 

(B) the tribal organization that has jurisdiction over the 
veteran has entered into a memorandum of understanding 
with any department or agency of the United States with respect to 
direct housing loans to Native Americans that the Secretary determines 
substantially complies with the requirements of subsection (b); and 
(2) the memorandum is in effect when the loan is made. 
(b)(1) Subject to paragraph (2), the Secretary shall ensure that 
each memorandum of understanding that the Secretary enters into 
with a tribal organization shall provide for the following: 

(A) That each Native American veteran who is under the 
jurisdiction of the tribal organization and to whom the Secretary makes 
a direct loan under this subchapter- 
(i) holds, possesses, or purchases using the proceeds of 
the loan a meaningful interest in a lot or dwelling (or both) 
that is located on trust land; and 
(ii) will purchase, construct, or improve (as the case 
may be) a dwelling on the lot using the proceeds of the 
loan. 
(B) That each such Native American veteran will convey to 
the Secretary by an appropriate instrument the interest referred to in 
subparagraph (A) as security for a direct housing 
loan under this subchapter. 
(C) That the tribal organization and each such Native 
American veteran will permit the Secretary to enter upon the 
trust land of that organization or veteran for the purposes of 
carrying out such actions as the Secretary determines are necessary- 
(i) to evaluate the advisability of the loan; and 
(ii) to monitor any purchase, construction, or improvements carried out 
using the proceeds of the loan. 
(D) That the tribal organization has established standards 
and procedures that apply to the foreclosure of the interest 
conveyed by a Native American veteran pursuant to subparagraph (B), 
including- 
(i) procedures for foreclosing the interest; and 
(ii) procedures for the resale of the lot or the dwelling 
(or both) purchased, constructed, or improved using the 
proceeds of the loan. 
(E) That the tribal organization agrees to such other terms 
and conditions with respect to the making of direct loans to 
Native American veterans under the jurisdiction of the tribal 
organization as the Secretary may require in order to ensure 
that loans under this subchapter are made in a responsible 
and prudent manner. 
(2) The Secretary may not enter into a memorandum of understanding with 
a tribal organization under this subsection unless 
the Secretary determines that the memorandum provides for such 
standards and procedures as are necessary for the reasonable protection 
of the financial interests of the United States. 

Sec. 3762 CH. 37-HOUSING AND SMALL BUSINESS LOANS 636 

(c)(1)(A) Except as provided in subparagraph (B), the principal 
amount of any direct housing loan made to a Native American veteran 
under this section may not exceed $80,000. 

(B)(i) Subject to clause (ii), the Secretary may make loans exceeding 
the amount specified in subparagraph (A) in a geographic 
area if the Secretary determines that housing costs in the area are 
significantly higher than average housing costs nationwide. The 
amount of such increase shall be the amount that the Secretary 
determines is necessary in order to make direct housing loans under 
this subchapter to Native American veterans who are located in a 
variety of geographic areas and in geographic areas experiencing a 
variety of economic conditions. 

(ii) The amount of a loan made by the Secretary under this 
subchapter may not exceed the maximum loan amount authorized 
for loans guaranteed under section 3703(a)(1)(C) of this title. 
(2) Loans made under this section shall bear interest at a rate 
determined by the Secretary, which rate may not exceed the appropriate 
rate authorized for guaranteed loans under section 
3703(c)(1) or section 3712(f) of this title, and shall be subject to 
such requirements or limitations prescribed for loans guaranteed 
under this title as the Secretary may prescribe. 
(3) Notwithstanding section 3704(a) of this title, the Secretary 
shall establish minimum requirements for planning, construction, 
improvement, and general acceptability relating to any direct loan 
made under this section. 
(d)(1) The Secretary shall establish credit underwriting standards to be 
used in evaluating loans made under this subchapter. 
In establishing such standards, the Secretary shall take into account the 
purpose of this program to make available housing to Native American 
veterans living on trust lands. 

(2) The Secretary shall determine the reasonable value of the 
interest in property that will serve as security for a loan made 
under this section and shall establish procedures for appraisals 
upon which the Secretary may base such determinations. The procedures 
shall incorporate generally the relevant requirements of 
section 3731 of this title, unless the Secretary determines that such 
requirements are impracticable to implement in a geographic area, 
on particular trust lands, or under circumstances specified by the 
Secretary. 
(e) Loans made under this section shall be repaid in monthly 
installments. 
(f) In connection with any loan under this section, the Secretary may 
make advances in cash to provide for repairs, alterations, and 
improvements and to meet incidental expenses of the 
loan transaction. The Secretary shall determine the amount of any 
expenses incident to the origination of loans made under this section, 
which expenses, or a reasonable flat allowance in lieu thereof, 
shall be paid by the veteran in addition to the loan closing costs. 
(g) Without regard to any provision of this chapter (other than 
a provision of this section), the Secretary may- 
(1) take any action that the Secretary determines to be 
necessary with respect to the custody, management, protection, 
and realization or sale of investments under this section; 

637 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3762 

(2) determine any necessary expenses and expenditures 
and the manner in which such expenses and expenditures shall 
be incurred, allowed, and paid; 
(3) make such rules, regulations, and orders as the Secretary considers 
necessary for carrying out the Secretaryï¿½s 
functions under this section; and 
(4) in a manner consistent with the provisions of this chapter and with 
the Secretaryï¿½s functions under this subchapter, 
employ, utilize, and compensate any persons, organizations, or 
departments or agencies (including departments and agencies 
of the United States) designated by the Secretary to carry out 
such functions. 
(h)(1) The Secretary may make direct loans to Native American 
veterans in order to enable such veterans to refinance existing 
loans made under this section. 

(2)(A) The Secretary may not make a loan under this subsection unless 
the loan meets the requirements set forth in subparagraphs (B), (C), 
and (E) of paragraph (1) of section 3710(e) of 
this title. 

(B) The Secretary may not make a loan under this subsection 
unless the loan will bear an interest rate at least one percentage 
point less than the interest rate borne by the loan being refinanced. 
(C) Paragraphs (2) and (3) of such section 3710(e) shall apply 
to any loan made under this subsection, except that for the purposes of 
this subsection the reference to subsection (a)(8) of section 
3710 of this title in such paragraphs (2) and (3) shall be deemed 
to be a reference to this subsection. 
(i)(1) The Secretary shall, in consultation with tribal organizations 
(including the National Congress of American Indians and the 
National American Indian Housing Council), carry out an outreach 
program to inform and educate Native American veterans of the 
availability of direct housing loans for Native American veterans 
who live on trust lands. 

(2) Activities under the outreach program shall include the following: 
(A) Attending conferences and conventions conducted by 
the National Congress of American Indians in order to work 
with the National Congress in providing information and training to 
tribal organizations and Native American veterans regarding the 
availability of housing benefits under this subchapter and in assisting 
such organizations and veterans with 
respect to such housing benefits. 
(B) Attending conferences and conventions conducted by 
the National American Indian Housing Council in order to 
work with the Housing Council in providing information and 
training to tribal organizations and tribal housing entities regarding 
the availability of such benefits. 
(C) Attending conferences and conventions conducted by 
the Department of Hawaiian Homelands in order to work with 
the Department of Hawaiian Homelands in providing information and 
training to tribal housing entities in Hawaii regarding 
the availability of such benefits. 

Sec. 3763 CH. 37-HOUSING AND SMALL BUSINESS LOANS 638 

(D) Producing and disseminating information to tribal governments, 
tribal veterans service organizations, and tribal organizations 
regarding the availability of such benefits. 
(E) Assisting tribal organizations and Native American 
veterans with respect to such benefits. 
(F) Outstationing loan guarantee specialists in tribal facilities on a 
part-time basis if requested by the tribal government. 
(j) The Secretary shall include as part of the annual benefits 
report of the Veterans Benefits Administration information concerning 
the cost and number of loans provided under this subchapter for the 
fiscal year covered by the report. 
(Added Pub. L. 102-547, Sec. 8(a), Oct. 28, 1992, 106 Stat. 3637; 
amended Pub. L. 104-275, title II, Sec. 202(a), Oct. 9, 1996, 110 Stat. 
3330; Pub. L. 105-114, titleII, Sec. 201(b), (c), Nov. 21, 1997, 111
Stat. 2282, 2283; Pub. L. 107-103, title IV, Sec. 402(b), (c), Dec. 27, 
2001, 115 Stat. 993; Pub. L. 109-233, title I, Sec. 103(b), 
(c)(1), (d), (e), (f)(3), June 15, 2006, 120 Stat. 400, 401.) 

ï¿½ 3763. Native American Veteran Housing Loan Program Account 

(a) There is hereby established in the Treasury of the United 
States an account known as the ï¿½ï¿½Native American Veteran Housing Loan 
Program Accountï¿½ï¿½ (hereinafter in this subchapter referred 
to as the ï¿½ï¿½Accountï¿½ï¿½). 
(b) The Account shall be available to the Secretary to carry out 
all operations relating to the making of direct housing loans to Native 
American veterans under this subchapter, including any administrative 
expenses relating to the making of such loans. 
Amounts in the Account shall be available without fiscal year 
limitation.   
(Added Pub. L. 102-547, Sec. 8(a), Oct. 28, 1992, 106 Stat. 3639; 
amended Pub. L.  105-368, title VI, Sec. 602(e)(3)(B), Nov. 11, 1998, 
112 Stat. 3347; Pub. L. 107-14, 
Sec. 8(a)(16), June 5, 2001, 115 Stat. 35.) 

ï¿½ 3764. Qualified non-Native American veterans 

(a) TREATMENT OF NON-NATIVE AMERICAN VETERANS.-Subject 
to the succeeding provisions of this section, for purposes of this 
subchapter- 
(1) a qualified non-Native American veteran is deemed to 
be a Native American veteran; and 
(2) for purposes of applicability to a non-Native American 
veteran, any reference in this subchapter to the jurisdiction of 
a tribal organization over a Native American veteran is 
deemed to be a reference to jurisdiction of a tribal organization 
over the Native American spouse of the qualified non-Native 
American veteran. 
(b) USE OF LOAN.-In making direct loans under this subchapter to a 
qualified non-Native American veteran by reason of 
eligibility under subsection (a), the Secretary shall ensure that the 
tribal organization permits, and the qualified non-Native American 
veteran actually holds, possesses, or purchases, using the proceeds 
of the loan, jointly with the Native American spouse of the qualified 
non-Native American veteran, a meaningful interest in the lot, 
dwelling, or both, that is located on trust land. 
(c) RESTRICTIONS IMPOSED BY TRIBAL ORGANIZATIONS.-Nothing in 
subsection (b) shall be construed as precluding a tribal orga

639 CH. 37-HOUSING AND SMALL BUSINESS LOANS Sec. 3765 

nization from imposing reasonable restrictions on the right of the 
qualified non-Native American veteran to convey, assign, or otherwise 
dispose of such interest in the lot or dwelling, or both, if such 
restrictions are designed to ensure the continuation in trust status 
of the lot or dwelling, or both. Such requirements may include the 
termination of the interest of the qualified non-Native American 
veteran in the lot or dwelling, or both, upon the dissolution of the 
marriage of the qualified non-Native American veteran to the Native 
American spouse. 

(Added Pub. L. 109-233, title I, Sec. 104(a)(2), June 15, 2006, 120 
Stat. 401.) 

ï¿½ 3765. Definitions 

For the purposes of this subchapter- 

(1) The term ï¿½ï¿½trust landï¿½ï¿½ means any land that- 
(A) is held in trust by the United States for Native 
Americans; 
(B) is subject to restrictions on alienation imposed by 
the United States on Indian lands (including native Hawaiian homelands); 
(C) is owned by a Regional Corporation or a Village 
Corporation, as such terms are defined in section 3(g) and 
3(j) of the Alaska Native Claims Settlement Act, respectively (43 U.S.C. 
1602(g), (j)); or 
(D) is on any island in the Pacific Ocean if such land 
is, by cultural tradition, communally-owned land, as determined by the 
Secretary. 
(2) The term ï¿½ï¿½Native American veteranï¿½ï¿½ means any veteran who is a 
Native American. 
(3) The term ï¿½ï¿½Native Americanï¿½ï¿½ means- 
(A) an Indian, as defined in section 4(d) of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 450b(d)); 
(B) a native Hawaiian, as that term is defined in section 201(a)(7) of 
the Hawaiian Homes Commission Act, 
1920 (Public Law 67-34; 42 Stat. 108); 
(C) an Alaska Native, within the meaning provided for 
the term ï¿½ï¿½Nativeï¿½ï¿½ in section 3(b) of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1602(b)); and 
(D) a Pacific Islander, within the meaning of the Native American 
Programs Act of 1974 (42 U.S.C. 2991 et 
seq.). 
(4) The term ï¿½ï¿½tribal organizationï¿½ï¿½ shall have the meaning 
given such term in section 4(l) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b(l)) and shall 
include the Department of Hawaiian Homelands, in the case of 
native Hawaiians, and such other organizations as the Secretary may 
prescribe. 
(5) The term ï¿½ï¿½qualified non-Native American veteranï¿½ï¿½ 
means a veteran who- 
(A) is the spouse of a Native American, but (B) is not 
a Native American. 
(Added Pub. L. 102-547, Sec. 8(a), Oct. 28, 1992, 106 Stat. 3639, Sec. 
3764; renumbered Sec. 3765 and amended Pub. L. 109-233, title I, 
Sec. 104(a)(1), (b), June 15, 
2006, 120 Stat. 401, 402.) 


Sec. 3771 CH. 37-HOUSING AND SMALL BUSINESS LOANS 640 

SUBCHAPTER VI-TRANSFERRED 

ï¿½ï¿½ 3771. Repealed. Pub. L. 107-95, Sec. 5(d)(3), Dec. 21, 2001, 
115 Stat. 918ï¿½ 

ï¿½ï¿½ï¿½ 3772 to 3775. Renumbered 2051 to 2054ï¿½ 


CHAPTER 39 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


641 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½ 

CHAPTER 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED 
VETERANS AND MEMBERS OF THE ARMED FORCES 

Sec. 
3901. Definitions. 
3902. Assistance for providing automobile and adaptive equipment. 
3903. Limitations on assistance; special training courses. 
3904. Research and development.


ï¿½ 3901. Definitions 

For purposes of this chapter- 

(1) The term ï¿½ï¿½eligible personï¿½ï¿½ means- 
(A) any veteran entitled to compensation under chapter 11 
of this title for any of the disabilities described in subclause (i), 
(ii), or (iii) below, if the disability is the result of an injury 
incurred or disease contracted in or aggravated by active military, 
naval, or air service: 
(i) The loss or permanent loss of use of one or both 
feet; 
(ii) The loss or permanent loss of use of one or both 
hands; 
(iii) The permanent impairment of vision of both eyes 
of the following status: central visual acuity of 20/200 or 
less in the better eye, with corrective glasses, or central 
visual acuity of more than 20/200 if there is a field defect 
in which the peripheral field has contracted to such an extent that the 
widest diameter of visual field subtends an 
angular distance no greater than twenty degrees in the 
better eye; or 
(B) any member of the Armed Forces serving on active 
duty who is suffering from any disability described in subclause (i), 
(ii), or (iii) of clause (A) of this paragraph if such disability is the 
result of an injury incurred or disease contracted 
in or aggravated by active military, naval, or air service. 
(2) The term ï¿½ï¿½adaptive equipmentï¿½ï¿½ includes, but is not limited 
to, power steering, power brakes, power window lifts, power seats, 
and special equipment necessary to assist the eligible person into 
and out of the automobile or other conveyance. Such term also includes 
(A) air-conditioning equipment when such equipment is necessary to the 
health and safety of the veteran and to the safety of 
others, regardless of whether the automobile or other conveyance 
is to be operated by the eligible person or is to be operated for such 
person by another person; and (B) any modification of the size of 
643 


Sec. 3902 CH. 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT 644 

the interior space of the automobile or other conveyance if needed 
because of the physical condition of such person in order for such 
person to enter or operate the vehicle. 

(Added Pub. L. 91-666, Sec. 2(a), Jan. 11, 1971, 84 Stat. 1998, Sec. 
1901; amended Pub. L. 93-538, Sec. 2, Dec. 22, 1974, 88 Stat. 1736;
Pub. L. 94-433, title III, Sec. 303, Sept. 30, 1976, 90 Stat. 1377;
Pub. L. 95-116, Sec. 1(a), Oct. 3, 1977, 91 Stat. 1062; renumbered Sec. 
3901, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 3902. Assistance for providing automobile and adaptive 
equipment 

(a) The Secretary, under regulations which the Secretary shall 
prescribe, shall provide or assist in providing an automobile or 
other conveyance to each eligible person by paying the total purchase 
price of the automobile or other conveyance (including all 
State, local, and other taxes) or $11,000, whichever is the lesser, 
to the seller from whom the eligible person is purchasing under a 
sales agreement between the seller and the eligible person. 
(b)(1) The Secretary, under regulations which the Secretary 
shall prescribe, shall provide each eligible person the adaptive 
equipment deemed necessary to insure that the eligible person will 
be able to operate the automobile or other conveyance in a manner 
consistent with such personï¿½s own safety and the safety of others 
and so as to satisfy the applicable standards of licensure established 
by the State of such personï¿½s residency or other proper licensing 
authority. 

(2) In the case of any veteran (other that a person eligible for 
assistance under paragraph (1) of this subsection) who is entitled 
to compensation for ankylosis of one or both knees, or one or both 
hips, the Secretary, under the terms and conditions set forth in 
subsections (a), (c), and (d) of section 3903 of this title and under 
regulations which the Secretary shall prescribe, shall provide such 
adaptive equipment to overcome the disability resulting from such 
ankylosis as (A) is necessary to meet the applicable standards of 
licensure established by the State of such veteranï¿½s residency or 
other proper licensing authority for the operation of such veteranï¿½s 
automobile or other conveyance by such veteran, and (B) is determined 
to be necessary by the Under Secretary for Health for the 
safe operation of such automobile or other conveyance by such veteran. 
(c) In accordance with regulations which the Secretary shall 
prescribe, the Secretary shall (1) repair, replace, or reinstall 
adaptive equipment deemed necessary for the operation of an automobile 
or other conveyance acquired in accordance with the provisions of 
this chapter, and (2) provide, repair, replace, or reinstall such 
adaptive equipment for any automobile or other conveyance which 
an eligible person may previously or subsequently have acquired. 
(d) If an eligible person cannot qualify to operate an automobile or
other conveyance, the Secretary shall provide or assist in 
providing an automobile or other conveyance to such person, as 
provided in subsection (a) of this section, if the automobile or other 
conveyance is to be operated for the eligible person by another person. 
(Added Pub. L. 91-666, Sec. 2(a), Jan. 11, 1971, 84 Stat. 1999, Sec. 
1902; amended 
Pub. L. 93-538, Sec. 3, Dec. 22, 1974, 88 Stat. 1736; Pub. L. 95-479, 
title III, Sec. 


645 CH. 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT Sec. 3903 

304, Oct. 18, 1978, 92 Stat. 1565; Pub. L. 97-66, title III, Sec. 
301-303, Oct. 17, 
1981, 95 Stat. 1030; Pub. L. 98-543, title III, Sec. 305(a), Oct. 24, 
1984, 98 Stat. 
2748; Pub. L. 100-322, title III, Sec. 302, May 20, 1988, 102 Stat. 534;
renumbered Sec. 3902 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-405, title 
III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 105-178, 
title VIII, Sec. 8205(a), June 9, 1998, 112 Stat. 494; Pub. L. 107-103, 
title V, Sec. 503, Dec. 27, 2001, 115 Stat. 995; Pub. L. 108-183, title 
IV, Sec. 402(b), Dec. 16, 2003, 117 Stat. 2664.) 
ï¿½ 3903. Limitations on assistance; special training courses 

(a) No eligible person shall be entitled to receive more than one 
automobile or other conveyance under the provisions of this chapter, 
and no payment shall be made under this chapter for the repair, 
maintenance, or replacement of an automobile or other conveyance. 
(b) Except as provided in subsection (d) of section 3902 of this 
title, no eligible person shall be provided an automobile or other 
conveyance under this chapter until it is established to the 
satisfaction of the Secretary, in accordance with regulations the 
Secretary shall prescribe, that the eligible person will be able to 
operate the automobile or other conveyance in a manner consistent with 
such personï¿½s own safety and the safety of others and will satisfy the 
applicable standards of licensure to operate the automobile or other 
conveyance established by the State of such personï¿½s residency or 
other proper licensing authority. 
(c)(1) An eligible person shall not be entitled to adaptive equipment 
under this chapter for more than two automobiles or other 
conveyances at any one time or (except as provided in paragraph 

(2) of this subsection) during any four-year period. 
(2) In a case in which the four-year limitation in paragraph (1) 
of this subsection precludes an eligible person from being entitled 
to adaptive equipment under this chapter, if the Secretary determines 
that, due to circumstances beyond the control of such person, 
one of the automobiles or other conveyances for which adaptive 
equipment was provided to such person during the applicable four-
year period is no longer available for the use of such person, the 
Secretary may provide adaptive equipment to such person for an 
additional automobile or other conveyance during such period. Provision 
of adaptive equipment under this paragraph is within the 
discretion of the Secretary. Any action to provide adaptive equipment 
under this paragraph shall be made pursuant to regulations 
which the Secretary shall prescribe. 
(d) Adaptive equipment shall not be provided under this chapter unless 
it conforms to minimum standards of safety and quality 
prescribed by the Secretary. 
(e)(1) The Secretary shall provide, directly or by contract, for 
the conduct of special driver training courses at every hospital and, 
where appropriate, at regional offices and other medical facilities, 
of the Department to instruct such eligible person to operate the 
type of automobile or other conveyance such person wishes to obtain 
with assistance under this chapter, and may make such 
courses available to any veteran, eligible for care under chapter 17 
of this title or member of the Armed Forces, who is determined by 
the Secretary to need the special training provided in such courses 


Sec. 3904 CH. 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT 646 

even though such veteran or member is not eligible for the assistance 
provided under this chapter. 

(2) The Secretary is authorized to obtain insurance on automobiles and 
other conveyances used in conducting the special driver training courses 
provided under this subsection and to obtain, at Government expense, 
personal liability and property damage insurance for all persons taking 
such courses without regard to whether such persons are taking the 
course on an in-patient or outpatient basis. 
(3) Notwithstanding any other provision of law, the Secretary 
may obtain, by purchase, lease, gift, or otherwise, any automobile, 
motor vehicle, or other conveyance deemed necessary to carry out 
the purposes of this subsection, and may sell, assign, transfer, or 
convey any such automobile, vehicle, or conveyance to which the 
Department obtains title for such price and upon such terms as the 
Secretary deems appropriate; and any proceeds received from any 
such disposition shall be credited to the applicable Department
appropriation. 
(Added Pub. L. 91-666, Sec. 2(a), Jan. 11, 1971, 84 Stat. 2000, Sec. 
1903; amended Pub. L. 93-538, Sec. 4(a), (b), Dec. 22, 1974, 88 Stat. 
1736, 1737; Pub. L. 94-581, title I, Sec. 108, Oct. 21, 1976, 90 Stat. 
2847; Pub. L. 97-66, title III, Sec. 303, Oct. 17, 1981, 95 Stat. 1030; 
Pub. L. 98-543, title III, Sec. 305(b), Oct. 24, 1984, 98 Stat. 2748; 
renumbered Sec. 3903 and amended Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 
106-117, title VIII, Sec. 804, Nov. 30, 1999, 113 Stat. 1586.) 

ï¿½ 3904. Research and development 

(a) In carrying out medical and prosthetic research under section 7303 
of this title, the Secretary, through the Under Secretary 
for Health, shall provide for special emphasis on the research and 
development of adaptive equipment and adapted conveyances (including 
vans) meeting standards of safety and quality prescribed under 
subsection (d) of section 3903, including support for the production 
and distribution of devices and conveyances so developed. 
(b) In carrying out subsection (a) of this section, the Secretary, 
through the Under Secretary for Health, shall consult and cooperate 
with the Secretary of Health and Human Services and the Secretary of 
Education, in connection with programs carried out under 
section 204(b)(3) of the Rehabilitation Act of 1973 (relating to the 
establishment and support of Rehabilitation Engineering Research 
Centers). 
(Added Pub. L. 93-538, Sec. 5(a), Dec. 22, 1974, 88 Stat. 1737, Sec. 
1904; amended Pub. L. 94-581, title II, Sec. 205(b)(2), (3), Oct. 21, 
1976, 90 Stat. 2859; Pub. L. 95-602, title I, Sec. 122(f), Nov. 6, 
1978, 92 Stat. 2987; Pub. L. 97-295, Sec. 4(69), Oct. 12, 1982, 96 
Stat. 1310; Pub. L. 102-40, title IV, Sec. 403(b)(1), May 7, 1991, 105 
Stat. 239; renumbered Sec. 3904 and amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub.
L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; 
Pub. L. 105-220, title IV, Sec. 414(c), Aug. 7, 1998, 
112 Stat. 1242.) 


CHAPTER 41 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


647 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 41-JOB COUNSELING, TRAINING, AND 
PLACEMENT SERVICE FOR VETERANS


Sec. 

4100. Findings. 

4101. Definitions. 

4102. Purpose. 

4102A. Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training; program functions; Regional Administrators. 

4103. Directors and Assistant Directors for Veteransï¿½ Employment 
and Training; 
additional Federal personnel. 

4103A. Disabled veteransï¿½ outreach program. 

4104. Local veteransï¿½ employment representatives. 

[4104A. Repealed.] 

4105. Cooperation of Federal agencies. 

4106. Estimate of funds for administration; authorization of 
appropriations. 

4107. Administrative controls; annual report. 

4108. Cooperation and coordination. 

4109. National Veteransï¿½ Employment and Training Services 
Institute. 

4110. Advisory Committee on Veterans Employment, Training, and 
Employer 
Outreach. 

4110A. Special unemployment study. 

4110B. Coordination and nonduplication. 

[4111. Repealed.] 

4112. Performance incentive awards for quality employment, training, 
and placement services. 

4113. Outstationing of Transition Assistance Program personnel. 

4114. Credentialing and licensure of veterans: demonstration project. 

ï¿½ 4100. Findings 

The Congress makes the following findings: 

(1) As long as unemployment and underemployment continue as serious 
problems among disabled veterans and Vietnam-era veterans, alleviating 
unemployment and underemployment among such veterans is a national 
responsibility. 
(2) Because of the special nature of employment and training needs of 
such veterans and the national responsibility to meet those needs, 
policies and programs to increase opportunities for such veterans to 
obtain employment, job training, counseling, and job placement services 
and assistance in securing advancement in employment should be 
effectively and vigorously implemented by the Secretary of Labor and 
such implementation should be accomplished through the Assistant 
Secretary of Labor for Veteransï¿½ Employment and Training. 
(Added Pub. L. 97-306, title III, Sec. 301(a), Oct. 14, 1982, 96 Stat. 
1436, Sec. 2000; amended Pub. L. 100-323, Sec. 15(b)(1), May 20, 1988, 
102 Stat. 574; renumbered Sec. 4100, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406.) 

649 


Sec. 4101 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 650 

ï¿½ 4101. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½special disabled veteranï¿½ï¿½ has the same 
meaning provided in section 4211(1) of this title. 
(2) The term ï¿½ï¿½veteran of the Vietnam eraï¿½ï¿½ has the same 
meaning provided in section 4211(2) of this title. 
(3) The term ï¿½ï¿½disabled veteranï¿½ï¿½ has the same meaning 
provided in section 4211(3) of this title. 
(4) The term ï¿½ï¿½eligible veteranï¿½ï¿½ has the same meaning provided in 
section 4211(4) of this title. 
(5) The term ï¿½ï¿½eligible personï¿½ï¿½ means- 
(A) the spouse of any person who died of a service-connected 
disability, 
(B) the spouse of any member of the Armed Forces 
serving on active duty who, at the time of application for 
assistance under this chapter, is listed, pursuant to section 
556 of title 37 and regulations issued thereunder, by the 
Secretary concerned in one or more of the following categories and 
has been so listed for a total of more than 
ninety days: (i) missing in action, (ii) captured in line of 
duty by a hostile force, or (iii) forcibly detained or interned 
in line of duty by a foreign government or power, or 
(C) the spouse of any person who has a total disability 
permanent in nature resulting from a service-connected 
disability or the spouse of a veteran who died while a disability so 
evaluated was in existence. 
(6) The term ï¿½ï¿½Stateï¿½ï¿½ means each of the several States of 
the United States, the District of Columbia, and the Commonwealth of 
Puerto Rico, and may include, to the extent determined necessary and 
feasible, Guam, American Samoa, the 
Virgin Islands, the Commonwealth of the Northern Marianas 
Islands, and the Trust Territory of the Pacific Islands. 
(7) The term ï¿½ï¿½employment service delivery systemï¿½ï¿½ means 
a service delivery system at which or through which labor exchange 
services, including employment, training, and placement services, are 
offered in accordance with the Wagner-
Peyser Act. 
(8) The term ï¿½ï¿½Secretaryï¿½ï¿½ means the Secretary of Labor. 
(9) The term ï¿½ï¿½intensive servicesï¿½ï¿½ means local employment 
and training services of the type described in section 134(d)(3) 
of the Workforce Investment Act of 1998. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1221, Sec. 2010; renumbered 
Sec. 2001, Pub. 

L. 87-675, Sec. 1(a), Sept. 19, 1962, 76 Stat. 558; amended Pub. L. 
89-358, Sec. 6(c)(1), Mar. 3, 1966, 80 Stat. 27; Pub. L. 92-540, title 
V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 1094; Pub. L. 93-508, title IV, 
Sec. 401(a), Dec. 3, 1974, 88 Stat. 1592; Pub. L. 96-466, title V, Sec. 
503, title VIII, Sec. 801(h), Oct. 17, 1980, 94 Stat. 2203, 2216; Pub. 
L. 100-323, Sec. 3(b), 15(a)(1), May 20, 1988, 102 Stat. 562, 574; 
renumbered Sec. 4101 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), 
Aug. 6, 1991, 105 Stat. 406; Pub. L. 107-288, Sec. 5(a)(1)(A), (c)(1), 
Nov. 7, 2002, 116 Stat. 2044, 
2045.) 
ï¿½ 4102. Purpose 

The Congress declares as its intent and purpose that there 
shall be an effective (1) job and job training intensive services 
program, (2) employment placement service program, and (3) job train


651 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4102A 

ing placement service program for eligible veterans and eligible 
persons and that, to this end policies and regulations shall be 
promulgated and administered by an Assistant Secretary of Labor for 
Veteransï¿½ Employment and Training, established by section 4102A 
of this title, through a Veteransï¿½ Employment and Training Service 
within the Department of Labor, so as to provide such veterans and 
persons the maximum of employment and training opportunities, 
with priority given to the needs of disabled veterans and veterans 
who served on active duty during a war or in a campaign or expedition 
for which a campaign badge has been authorized through existing 
programs, coordination and merger of programs and implementation of 
new programs, including programs carried out by the Veteransï¿½ 
Employment and Training Service to implement all efforts to ease the 
transition of servicemembers to civilian careers that are consistent 
with, or an outgrowth of, the military experience of the servicemembers. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1217, Sec. 2011; renumbered 
Sec. 2002, Pub. 

L. 87-675, Sec. 1(a), Sept. 19, 1962, 76 Stat. 558; amended Pub. L. 
89-358, Sec. 6(c), Mar. 3, 1966, 80 Stat. 27; Pub. L. 92-540, title V, 
Sec. 502(a), Oct. 24, 1972, 86 Stat. 1094; Pub. L. 93-508, title IV, 
Sec. 401(b), Dec. 3, 1974, 88 Stat. 1592; Pub. L. 94-502, title VI, 
Sec. 601(a), Oct. 15, 1976, 90 Stat. 2404; Pub. L. 96-466, title V, Sec. 
504(a)(2), Oct. 17, 1980, 94 Stat. 2203; Pub. L. 97-306, title III, 
Sec. 302, Oct. 14, 1982, 96 Stat. 1437; Pub. L. 98-160, title VII, 
Sec. 702(15), Nov. 21, 1983, 97 Stat. 1010; Pub. L. 100-323, Sec. 
15(b)(1), (d), May 20, 1988, 102 Stat. 574; renumbered Sec. 4102 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 107-288, Sec. 5(a)(1)(B), (b)(1), Nov. 7, 2002, 116 Stat. 
2044, 2045.) 
ï¿½ 4102A. Assistant Secretary of Labor for Veteransï¿½ Employ

ment and Training; program functions; Regional 

Administrators 

(a) ESTABLISHMENT OF POSITION OF ASSISTANT SECRETARY OF 
LABOR FOR VETERANSï¿½ EMPLOYMENT AND TRAINING.-(1) There is 
established within the Department of Labor an Assistant Secretary 
of Labor for Veteransï¿½ Employment and Training, appointed by the 
President by and with the advice and consent of the Senate, who 
shall formulate and implement all departmental policies and procedures 
to carry out (A) the purposes of this chapter, chapter 42, and 
chapter 43 of this title, and (B) all other Department of Labor 
employment, unemployment, and training programs to the extent they 
affect veterans. 
(2) The employees of the Department of Labor administering 
chapter 43 of this title shall be administratively and functionally 
responsible to the Assistant Secretary of Labor for Veteransï¿½ Employment 
and Training. 
(3)(A) There shall be within the Department of Labor a Deputy 
Assistant Secretary of Labor for Veteransï¿½ Employment and Training. The 
Deputy Assistant Secretary shall perform such functions 
as the Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training prescribes. 

(B) No individual may be appointed as a Deputy Assistant Secretary of 
Labor for Veteransï¿½ Employment and Training unless the 
individual has at least five years of service in a management position 
as an employee of the Federal civil service or comparable service in a 
management position in the Armed Forces. For purposes 
of determining such service of an individual, there shall be ex

Sec. 4102A CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 652 

cluded any service described in subparagraphs (A), (B), and (C) of 
section 308(d)(2) of this title. 

(b) PROGRAM FUNCTIONS.-The Secretary shall carry out the 
following functions: 
(1) Except as expressly provided otherwise, carry out all 
provisions of this chapter and chapter 43 of this title through 
the Assistant Secretary of Labor for Veteransï¿½ Employment 
and Training and administer through such Assistant Secretary 
all programs under the jurisdiction of the Secretary for the 
provision of employment and training services designed to 
meet the needs of all veterans and persons eligible for services 
furnished under this chapter. 
(2) In order to make maximum use of available resources 
in meeting such needs, encourage all such programs, and all 
grantees and contractors under such programs to enter into cooperative 
arrangements with private industry and business 
concerns (including small business concerns owned by veterans 
or disabled veterans), educational institutions, trade associations, 
and labor unions. 
(3) Ensure that maximum effectiveness and efficiency are 
achieved in providing services and assistance to eligible veterans 
under all such programs by coordinating and consulting 
with the Secretary of Veterans Affairs with respect to (A) programs 
conducted under other provisions of this title, with particular 
emphasis on coordination of such programs with readjustment counseling 
activities carried out under section 1712A of this title, apprenticeship 
or other on-the-job training programs carried out under section 3687 of 
this title, and rehabilitation and training activities carried out 
under chapter 31 of this title and (B) determinations covering veteran 
population in a State. 
(4) Ensure that employment, training, and placement activities are 
carried out in coordination and cooperation with appropriate State 
public employment service officials. 
(5) Subject to subsection (c), make available for use in each 
State by grant or contract such funds as may be necessary to 
support- 
(A) disabled veteransï¿½ outreach program specialists appointed under 
section 4103A(a)(1) of this title, (B) local veteransï¿½ employment 
representatives assigned under section 4104(b) of this title, and 
(C) the reasonable expenses of such specialists and 
representatives described in subparagraphs (A) and (B), 
respectively, for training, travel, supplies, and other business 
expenses, including travel expenses and per diem for 
attendance at the National Veteransï¿½ Employment and 
Training Services Institute established under section 4109 
of this title. 
(6) Monitor and supervise on a continuing basis the distribution and 
use of funds provided for use in the States under 
paragraph (5). 
(7) Establish, and update as appropriate, a comprehensive 
performance accountability system (as described in subsection 
(f)) and carry out annual performance reviews of veterans em

653 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4102A 

ployment, training, and placement services provided through 
employment service delivery systems, including through disabled 
veteransï¿½ outreach program specialists and through local 
veteransï¿½ employment representatives in States receiving 
grants, contracts, or awards under this chapter. 

(8) With advice and assistance from the Advisory Committee on Veterans 
Employment and Training, and Employer 
Outreach established under section 4110 of this title, furnish 
information to employers (through meetings in person with hiring 
executives of corporations and otherwise) with respect to 
the training and skills of veterans and disabled veterans, and 
the advantages afforded employers by hiring veterans with 
such training and skills, and to facilitate employment of veterans and 
disabled veterans through participation in labor exchanges (Internet-
based and otherwise), and other means. 
(c) CONDITIONS FOR RECEIPT OF FUNDS.-(1) The distribution 
and use of funds under subsection (b)(5) in order to carry out sections 
4103A(a) and 4104(a) of this title shall be subject to the continuing 
supervision and monitoring of the Secretary and shall not 
be governed by the provisions of any other law, or any regulations 
prescribed thereunder, that are inconsistent with this section or 
section 4103A or 4104 of this title. 
(2)(A) A State shall submit to the Secretary an application for 
a grant or contract under subsection (b)(5). The application shall 
contain the following information: 

(i) A plan that describes the manner in which the State 
shall furnish employment, training, and placement services required 
under this chapter for the program year, including a description of- 
(I) duties assigned by the State to disabled veteransï¿½ 
outreach program specialists and local veteransï¿½ employment 
representatives consistent with the requirements of 
sections 4103A and 4104 of this title; 
(II) the manner in which such specialists and representatives are 
integrated in the employment service delivery systems in the State; and 
(III) the program of performance incentive awards described in section 
4112 of this title in the State for the program year. 
(ii) The veteran population to be served. 
(iii) For each employee of the State who is assigned to perform the 
duties of a disabled veteransï¿½ outreach program specialist or a local 
veteransï¿½ employment representative under 
this chapter- 
(I) the date on which the employee is so assigned; and 
(II) whether the employee has satisfactorily completed 
such training by the National Veteransï¿½ Employment and 
Training Services Institute as the Secretary requires for 
purposes of paragraph (8). 
(iv) Such additional information as the Secretary may require to make a 
determination with respect to awarding a 
grant or contract to the State. 
(B)(i) Subject to the succeeding provisions of this subpara
graph, of the amount available under subsection (b)(5) for a fiscal 


Sec. 4102A CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 654 

year, the Secretary shall make available to each State with an 
application approved by the Secretary an amount of funding in proportion 
to the number of veterans seeking employment using such 
criteria as the Secretary may establish in regulation, including 
civilian labor force and unemployment data, for the State on an annual 
basis. The proportion of funding shall reflect the ratio of- 

(I) the total number of veterans residing in the State that 
are seeking employment; to 
(II) the total number of veterans seeking employment in 
all States. 
(ii) The Secretary shall phase in over the three fiscal-year period 
that begins on October 1, 2003, the manner in which amounts 
are made available to States under subsection (b)(5) and this 
subsection, as amended by the Jobs for Veterans Act. 
(iii) In carrying out this paragraph, the Secretary may establish 
minimum funding levels and hold-harmless criteria for States. 
(3)(A)(i) As a condition of a grant or contract under this section 
for a program year, in the case of a State that the Secretary 
determines has an entered-employment rate for veterans that is 
deficient for the preceding program year, the State shall develop a 
corrective action plan to improve that rate for veterans in the State. 

(ii) The State shall submit the corrective action plan to the 
Secretary for approval, and if approved, shall expeditiously implement 
the plan. 
(iii) If the Secretary does not approve a corrective action plan 
submitted by the State under clause (i), the Secretary shall take 
such steps as may be necessary to implement corrective actions in 
the State to improve the entered-employment rate for veterans in 
that State. 
(B) To carry out subparagraph (A), the Secretary shall establish in 
regulations a uniform national threshold entered-employment rate for 
veterans for a program year by which determinations 
of deficiency may be made under subparagraph (A). 
(C) In making a determination with respect to a deficiency 
under subparagraph (A), the Secretary shall take into account the 
applicable annual unemployment data for the State and consider 
other factors, such as prevailing economic conditions, that affect 
performance of individuals providing employment, training, and 
placement services in the State. 
(4) In determining the terms and conditions of a grant or contract under 
which funds are made available to a State in order to 
carry out section 4103A or 4104 of this title, the Secretary shall 
take into account- 
(A) the results of reviews, carried out pursuant to subsection (b)(7), 
of the performance of the employment, training, 
and placement service delivery system in the State, and 
(B) the monitoring carried out under this section. 
(5) Each grant or contract by which funds are made available 
to a State shall contain a provision requiring the recipient of the 
funds- 
(A) to comply with the provisions of this chapter; and 
(B) on an annual basis, to notify the Secretary of, and provide 
supporting rationale for, each nonveteran who is employed 
as a disabled veteransï¿½ outreach program specialist and local 

655 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4102A 

veteransï¿½ employment representative for a period in excess of 
6 months. 

(6) Each State shall coordinate employment, training, and 
placement services furnished to veterans and eligible persons 
under this chapter with such services furnished with respect to 
such veterans and persons under the Workforce Investment Act of 
1998 and the Wagner-Peyser Act. 
(7) Of the amount of a grant or contract under which funds are 
made available to a State in order to carry out section 4103A or 
4104 of this title for any program year, one percent shall be for the 
purposes of making cash awards under the program of performance 
incentive awards described in section 4112 of this title in the State. 
(8)(A) As a condition of a grant or contract under which funds 
are made available to a State in order to carry out section 4103A 
or 4104 of this title, the Secretary shall require the State to require 
each employee hired by the State who is assigned to perform the 
duties of a disabled veteransï¿½ outreach program specialist or a local 
veteransï¿½ employment representative under this chapter to 
satisfactorily complete training provided by the National Veteransï¿½ 
Employment and Training Services Institute during the three-year period 
that begins on the date on which the employee is so assigned. 

(B) For any employee described in subparagraph (A) who does 
not complete such training during such period, the Secretary may 
reduce by an appropriate amount the amount made available to the 
State employing that employee. 
(C) The Secretary may establish such reasonable exceptions to 
the completion of training otherwise required under subparagraph 
(A) as the Secretary considers appropriate. 
(d) PARTICIPATION IN OTHER FEDERALLY FUNDED JOB TRAINING 
PROGRAMS.-The Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training shall promote and monitor participation of 
qualified veterans and eligible persons in employment and training 
opportunities under title I of the Workforce Investment Act of 1998 
and other federally funded employment and training programs. 
(e) REGIONAL ADMINISTRATORS.-(1) The Secretary shall assign 
to each region for which the Secretary operates a regional office a 
representative of the Veteransï¿½ Employment and Training Service 
to serve as the Regional Administrator for Veteransï¿½ Employment 
and Training in such region. 
(2) Each such Regional Administrator shall carry out such duties as the 
Secretary may require to promote veterans employment 
and reemployment within the region that the Administrator serves. 
(f) ESTABLISHMENT OF PERFORMANCE STANDARDS AND OUTCOMES MEASURES.-(1) 
The Assistant Secretary of Labor for Veteransï¿½ Employment and Training 
shall establish and implement a 
comprehensive performance accountability system to measure the 
performance of employment service delivery systems, including disabled 
veteransï¿½ outreach program specialists and local veteransï¿½ 
employment representatives providing employment, training, and 
placement services under this chapter in a State to provide 
accountability of that State to the Secretary for purposes of 
subsection (c). 
(2) Such standards and measures shall- 

Sec. 4103 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 656 

(A) be consistent with State performance measures applicable under 
section 136(b) of the Workforce Investment Act of 
1998; and 
(B) be appropriately weighted to provide special consideration for 
placement of (i) veterans requiring intensive services 
(as defined in section 4101(9) of this title), such as special disabled 
veterans and disabled veterans, and (ii) veterans who enroll in 
readjustment counseling under section 1712A of this 
title. 
(g) AUTHORITY TO PROVIDE TECHNICAL ASSISTANCE TO 
STATES.-The Secretary may provide such technical assistance as 
the Secretary determines appropriate to any State that the Secretary 
determines has, or may have, an entered-employment rate 
in the State that is deficient, as determined under subsection (c)(3) 
with respect to a program year, including assistance in the development 
of a corrective action plan under that subsection. 
(Added Pub. L. 94-502, title VI, Sec. 601(b)(1), Oct. 15, 1976, 90 
Stat. 2404, Sec. 2002A; amended Pub. L. 96-466, title V, Sec. 
504(a)(3), (4), Oct. 17, 1980, 94 Stat. 2203; Pub. L. 97-306, title 
III, Sec. 303, Oct. 14, 1982, 96 Stat. 1437; Pub. L. 98-160, title VII, 
Sec. 702(15), Nov. 21, 1983, 97 Stat. 1010; Pub. L. 100-323, Sec. 2(a), 
(e)(3)(A), 15(a)(2), (b)(1), May 20, 1988, 102 Stat. 556, 559, 574; 
Pub. L. 101-237, title IV, Sec. 423(b)(8)(A), Dec. 18, 1989, 103 Stat. 
2093; renumbered Sec. 4102A and amended Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 103-446, 
title VII, Sec. 701(a), title XII, Sec. 1201(a)(4), Nov. 2, 1994, 108 
Stat. 4674, 4682; Pub. L. 104-275, title III, Sec. 301, Oct. 9, 1996, 110 
Stat. 3332; Pub. L. 105-277, div. A, Sec. 101(f)[title VIII, Sec. 
405(d)(29)(A), (f)(21)(A)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-424, 
2681-432; Pub. L. 105-368, title X, Sec. 1005(b)(13), Nov. 11, 1998, 
112 Stat. 3365; Pub. L. 107-288, Sec. 4(a)(1), Nov. 7, 2002, 116 Stat. 
2038; Pub. L. 108-183, title VII, Sec. 708(b)(1)(A), (2), Dec. 16, 
2003, 117 Stat. 2673; Pub. L. 109-233, title II, Sec. 201, title V, 
Sec. 503(11), June 15, 2006, 120 Stat. 402, 416; Pub. L. 109-461, title 
VI, Sec. 601(a), (b), Dec. 
22, 2006, 120 Stat. 3436.) 

ï¿½ 4103. Directors and Assistant Directors for Veteransï¿½ Employment and 
Training; additional Federal personnel 

(a) DIRECTORS AND ASSISTANT DIRECTORS.-(1) The Secretary 
shall assign to each State a representative of the Veteransï¿½ Employment 
and Training Service to serve as the Director for Veteransï¿½ Employment 
and Training, and shall assign full-time Federal clerical or other 
support personnel to each such Director. 
(2)(A) Each Director for Veteransï¿½ Employment and Training 
for a State shall, at the time of appointment, have been a bona fide 
resident of the State for at least two years. 

(B) The Secretary may waive the requirement in subparagraph 
(A) with respect to a Director for Veteransï¿½ Employment and Training if 
the Secretary determines that the waiver is in the public interest. Any 
such waiver shall be made on a case-by-case basis. 
(3) Full-time Federal clerical or other support personnel assigned to 
Directors for Veteransï¿½ Employment and Training shall 
be appointed in accordance with the provisions of title 5 governing 
appointments in the competitive service and shall be paid in accordance 
with the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5. 
(b) ADDITIONAL FEDERAL PERSONNEL.-The Secretary may also 
assign as supervisory personnel such representatives of the Veteransï¿½ 
Employment and Training Service as the Secretary deter

657 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4103A 

mines appropriate to carry out the employment, training, and 
placement services required under this chapter, including Assistant 
Directors for Veteransï¿½ Employment and Training. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1218, Sec. 2012; renumbered 
Sec. 2003, Pub. L. 87-675, Sec. 1(a), Sept. 19, 1962, 76 Stat. 558; 
amended Pub. L. 89-358, Sec. 6(c)(1), Mar. 3, 1966, 80 Stat. 27; Pub. 
L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 1094; Pub. L. 
93-508, title IV, Sec. 401(c), Dec. 3, 1974, 88 Stat. 1592; Pub. 
L. 94-502, title VI, Sec. 602, 606(1), Oct. 15, 1976, 90 Stat. 2404, 
2405; Pub. L. 96-466, title V, Sec. 505, title VIII, Sec. 801(i), 
Oct. 17, 1980, 94 Stat. 2204, 2216; Pub. L. 97-295, Sec. 4(70), Oct. 
12, 1982, 96 Stat. 1310; Pub. L. 97-306, title III, Sec. 304(a)(1), 
(b), (c), Oct. 14, 1982, 96 Stat. 1437, 1438; Pub. L. 100-323, Sec. 
5, 7(a), 15(a)(2), (c)(1), (3)(A), May 20, 1988, 102 Stat. 563, 564, 
574; Pub. L. 101-237, title IV, Sec. 423(b)(8)(B), Dec. 18, 1989, 103 
Stat. 2093; renumbered Sec. 4103 and amended Pub. L. 102-83, Sec. 5(a), 
(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-446, title XII, Sec. 
1201(d)(14), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 104-275, title 
III, Sec. 302, Oct. 9, 1996, 110 Stat. 3332; Pub. L. 107-288, Sec. 
4(a)(1), Nov. 7, 2002, 116 Stat. 2042; Pub. L. 110-389, title III, 
Sec. 316, Oct. 10, 2008, 122 Stat. 
4167.) 
ï¿½ 4103A. Disabled veteransï¿½ outreach program 

(a) REQUIREMENT FOR EMPLOYMENT BY STATES OF A SUFFICIENT NUMBER OF 
SPECIALISTS.-(1) Subject to approval by the Secretary, a State shall 
employ such full-or part-time disabled veteransï¿½ outreach program 
specialists as the State determines appropriate and efficient to carry 
out intensive services under this chapter to meet the employment needs 
of eligible veterans with the following priority in the provision of 
services: 
(A) Special disabled veterans. 
(B) Other disabled veterans. 
(C) Other eligible veterans in accordance with priorities 
determined by the Secretary taking into account applicable 
rates of unemployment and the employment emphases set 
forth in chapter 42 of this title. 
(2) In the provision of services in accordance with this subsection, 
maximum emphasis in meeting the employment needs of 
veterans shall be placed on assisting economically or educationally 
disadvantaged veterans. 
(b) REQUIREMENT FOR QUALIFIED VETERANS.-A State shall, to 
the maximum extent practicable, employ qualified veterans to 
carry out the services referred to in subsection (a). Preference shall 
be given in the appointment of such specialists to qualified disabled 
veterans. 
(c) PART-TIME EMPLOYEES.-A part-time disabled veteransï¿½ outreach 
program specialist shall perform the functions of a disabled 
veteransï¿½ outreach program specialist under this section on a halftime 
basis. 
(Added Pub. L. 96-466, title V, Sec. 506(a), Oct. 17, 1980, 94 Stat. 
2204, Sec. 2003A; amended Pub. L. 97-306, title III, Sec. 305, Oct. 14, 
1982, 96 Stat. 1439; Pub. L. 100-323, Sec. 2(e)(1), 7(b), 15(c)(1), 
May 20, 1988, 102 Stat. 559, 565, 574; Pub. L. 101-237, title IV, Sec. 
423(b)(8), Dec. 18, 1989, 103 Stat. 2093; renumbered Sec. 4103A and 
amended Pub. L. 102-83, Sec. 2(c)(4), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 402, 406; Pub. L. 102-568, title V, Sec. 501, 503, Oct. 29, 1992, 
106 Stat. 4340; Pub. 

L. 103-446, title VII, Sec. 701(b), Nov. 2, 1994, 108 Stat. 4674; Pub. 
L. 105-277, div. A, title I, Sec. 101(f)[title VIII, Sec. 405(d)(29)(B),
(f)(21)(B)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-424, 2681-432; 
Pub. L. 105-368, title X, Sec. 1004(a), Nov. 11, 1998, 112 Stat. 3364; 
Pub. L. 107-95, Sec. 9(a), Dec. 21, 2001, 115 Stat. 920; Pub. L. 
107-288, Sec. 4(b)(1), Nov. 7, 2002, 116 Stat. 2043; Pub. L. 109-461, 
title VI, Sec. 
602(a), Dec. 22, 2006, 120 Stat. 3437.) 

Sec. 4104 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 658 

ï¿½ 4104. Local veteransï¿½ employment representatives 

(a) REQUIREMENT FOR EMPLOYMENT BY STATES OF A SUFFICIENT NUMBER OF 
REPRESENTATIVES.-Subject to approval by the 

Secretary, a State shall employ such full-and part-time local veteransï¿½ 
employment representatives as the State determines appropriate and 
efficient to carry out employment, training, and placement services 
under this chapter. 
(b) PRINCIPAL DUTIES.-As principal duties, local veteransï¿½ employment 
representatives shall- 
(1) conduct outreach to employers in the area to assist veterans in 
gaining employment, including conducting seminars 
for employers and, in conjunction with employers, conducting 
job search workshops and establishing job search groups; and 
(2) facilitate employment, training, and placement services 
furnished to veterans in a State under the applicable State employment 
service delivery systems. 
(c) REQUIREMENT FOR QUALIFIED VETERANS AND ELIGIBLE PERSONS.-A State 
shall, to the maximum extent practicable, employ 
qualified veterans or eligible persons to carry out the services 
referred to in subsection (a). Preference shall be accorded in the 
following order: 
(1) To qualified service-connected disabled veterans. 
(2) If no veteran described in paragraph (1) is available, to 
qualified eligible veterans. 
(3) If no veteran described in paragraph (1) or (2) is available, then 
to qualified eligible persons. 
(d) PART-TIME EMPLOYEES.-A part-time local veteransï¿½ employment 
representative shall perform the functions of a local veteransï¿½ 
employment representative under this section on a half-time 
basis. 
(e) REPORTING.-Each local veteransï¿½ employment representative shall be 
administratively responsible to the manager of the 
employment service delivery system and shall provide reports, not 
less frequently than quarterly, to the manager of such office and 
to the Director for Veteransï¿½ Employment and Training for the 
State regarding compliance with Federal law and regulations with 
respect to special services and priorities for eligible veterans and 
eligible persons. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1219, Sec. 2013; renumbered 
Sec. 2004, Pub. L. 87-675, Sec. 1(a), Sept. 19, 1962, 76 Stat. 558; 
amended Pub. L. 89-358, Sec. 6(c)(1), Mar. 3, 1966, 80 Stat. 27; 
Pub. L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 1095; 
Pub. L. 94-502, title VI, Sec. 606(2), Oct. 15, 1976, 90 Stat. 2405; 
Pub. L. 100-323, Sec. 3(a), May 20, 1988, 102 Stat. 560; Pub. L. 
101-237, title IV, 
Sec. 423(b)(8)(B), Dec. 18, 1989, 103 Stat. 2093; Pub. L. 102-16, 
Sec. 10(a)(8), Mar. 22, 1991, 105 Stat. 56; renumbered Sec. 4104 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 
406; Pub. L. 107-14, Sec. 8(a)(10), June 5, 2001, 115 Stat. 35; Pub. 
L. 107-95, Sec. 9(b), Dec. 21, 2001, 115 Stat. 920; Pub. L. 107-288, 
Sec. 4(b)(2), Nov. 7, 2002, 116 Stat. 2043; Pub. L. 109-461, 
title VI, Sec. 602(b), Dec. 22, 2006, 120 Stat. 3437.) 
ï¿½ï¿½ 4104A. Repealed. Pub. L. 107-288, Sec. 4(a)(3)(A)(i), Nov. 7, 
2002, 116 Stat. 2042ï¿½ 

ï¿½ 4105. Cooperation of Federal agencies 

(a) All Federal agencies shall furnish the Secretary such 
records, statistics, or information as the Secretary may deem nec

659 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4106 

essary or appropriate in administering the provisions of this chapter, 
and shall otherwise cooperate with the Secretary in providing 
continuous employment and training opportunities for eligible veterans 
and eligible persons. 

(b) For the purpose of assisting the Secretary and the Secretary of 
Veterans Affairs in identifying employers with potential 
job training opportunities under the Veteransï¿½ Job Training Act 
(Public Law 98-77; 29 U.S.C. 1721 note) and otherwise in order to 
carry out this chapter, the Secretary of Defense shall, on the 15th 
day of each month, provide the Secretary and the Secretary of Veterans 
Affairs with updated information regarding any list maintained by the 
Secretary of Defense of employers participating in the 
National Committee for Employer Support of the Guard and Reserve. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1219, Sec. 2014; renumbered 
Sec. 2005 and amended Pub. L. 87-675, Sec. 1(a), (c), Sept. 19, 1962, 
76 Stat. 558, 559; Pub. L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 
86 Stat. 1095; Pub. L. 93-508, title IV, Sec. 401(d), Dec. 3, 1974, 88 
Stat. 1592; Pub. L. 94-502, title VI, Sec. 606(3), Oct. 15, 1976, 90 
Stat. 2405; Pub. L. 100-323, Sec. 6(a), 15(a)(2), May 20, 1988, 102 Stat. 
564, 574; Pub. L. 101-237, title IV, Sec. 423(b)(8)(A), Dec. 18, 1989, 
103 Stat. 2093; renumbered Sec. 4105, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 109-233, title V, Sec. 
503(12), June 15, 2006, 120 Stat. 417.) 

ï¿½ 4106. Estimate of funds for administration; authorization 
of appropriations 

(a) The Secretary shall estimate the funds necessary for the 
proper and efficient administration of this chapter and chapters 42 
and 43 of this title. Such estimated sums shall include the annual 
amounts necessary for salaries, rents, printing and binding, travel, 
and communications. Sums thus estimated shall be included as a 
special item in the annual budget for the Department of Labor. 
Estimated funds necessary for proper intensive services, placement, 
and training services to eligible veterans and eligible persons 
provided by the various State public employment service agencies 
shall each be separately identified in the budgets of those agencies 
as approved by the Department of Labor. Funds estimated pursuant to the 
first sentence of this subsection shall include amounts 
necessary in all of the States for the purposes specified in paragraph 
(5) of section 4102A(b) of this title and to fund the National 
Veteransï¿½ Employment and Training Services Institute under section 4109 
of this title and shall be approved by the Secretary only 
if the level of funding proposed is in compliance with such sections. 
Each budget submission with respect to such funds shall include a 
separate listing of the amount for the National Veteransï¿½ Employment 
and Training Services Institute together with information 
demonstrating the compliance of such budget submission with the 
funding requirements specified in the preceding sentence. 
(b) There are authorized to be appropriated such sums as may 
be necessary for the proper and efficient administration of this 
chapter. 
(c) In the event that the regular appropriations Act making 
appropriations for administrative expenses for the Department of 
Labor with respect to any fiscal year does not specify an amount 
for the purposes specified in subsection (b) of this section for that 
fiscal year, then of the amounts appropriated in such Act there 

Sec. 4107 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 660 

shall be available only for the purposes specified in subsection (b) 
of this section such amount as was set forth in the budget estimate 
submitted pursuant to subsection (a) of this section. 

(d) Any funds made available pursuant to subsections (b) and 
(c) of this section shall not be available for any purpose other than 
those specified in such subsections. 
(Added Pub. L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 
1096, Sec. 2006; amended Pub. L. 93-508, title IV, Sec. 401(e), Dec. 3, 
1974, 88 Stat. 1592; Pub. L. 94-502, title VI, Sec. 603, Oct. 15, 1976, 
90 Stat. 2404; Pub. L. 97-306, title III, Sec. 306, Oct. 14, 1982, 96 
Stat. 1440; Pub. L. 100-323, Sec. 2(b), (c), (e)(2), 15(a)(2), 
May 20, 1988, 102 Stat. 558, 559, 574; renumbered Sec. 4106 and amended 
Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 
107-288, Secs. 
4(d)(1), 5(a)(1)(C), Nov. 7, 2002, 116 Stat. 2044.) 
ï¿½ 4107. Administrative controls; annual report 

(a) The Secretary shall establish administrative controls for 
the following purposes: 
(1) To insure that each eligible veteran, especially veterans 
of the Vietnam era and disabled veterans, and each eligible 
person who requests assistance under this chapter shall 
promptly be placed in a satisfactory job or job training opportunity or 
receive some other specific form of assistance designed to enhance such 
veteranï¿½s and eligible personï¿½s employment prospects substantially, such 
as individual job development or intensive services. 
(2) To determine whether or not the employment service 
agencies in each State have committed the necessary staff to 
insure that the provisions of this chapter are carried out; and 
to arrange for necessary corrective action where staff resources 
have been determined by the Secretary to be inadequate. 
(b) The Secretary shall apply performance standards established under 
section 4102A(f) of this title for determining compliance by the State 
public employment service agencies with the provisions of this chapter 
and chapter 42 of this title. Not later than February 1 of each year, 
the Secretary shall report to the Committees on Veteransï¿½ Affairs of 
the Senate and the House of Representatives on the performance of 
States and organizations and entities 
carrying out employment, training, and placement services under 
this chapter, as measured under subsection (b)(7) of section 4102A 
of this title. In the case of a State that the Secretary determines 
has not met the minimum standard of performance (established by 
the Secretary under subsection (f) of such section), the Secretary 
shall include an analysis of the extent and reasons for the Stateï¿½s 
failure to meet that minimum standard, together with the Stateï¿½s 
plan for corrective action during the succeeding year. 
(c) Not later than February 1 of each year, the Secretary shall 
report to the Committees on Veteransï¿½ Affairs of the Senate and 
the House of Representatives on the success during the preceding 
program year of the Department of Labor and its affiliated State 
employment service agencies in carrying out the provisions of this 
chapter and programs for the provision of employment and training 
services to meet the needs of eligible veterans and eligible persons. 
The report shall include- 
(1) specification, by State and by age group, of the numbers of 
eligible veterans, disabled veterans, special disabled 

661 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4108 

veterans, eligible persons, recently separated veterans (as defined 
in section 4211(6) of this title), and servicemembers 
transitioning to civilian careers who registered for assistance 
with, or who are identified as veterans by, the public employment 
service system and, for each of such categories, the numbers referred 
to and placed in permanent and other jobs, the numbers referred to and 
placed in jobs and job training programs supported by the Federal 
Government, the number who received intensive services, and the number 
who received some, and the number who received no, reportable service; 

(2) a comparison of the rate of entered employment (as determined in a 
manner consistent with State performance measures applicable under 
section 136(b) of the Workforce Investment Act of 1998) for each of the 
categories of veterans and persons described in clause (1) of this 
subsection with such 
rate of entered employment (as so determined) for nonveterans 
of the same age groups registered for assistance with the public 
employment system in each State; 
(3) any determination made by the Secretary during the 
preceding fiscal year under section 4106 of this title or subsection 
(a)(2) of this section and a statement of the reasons for 
such determination; 
(4) a report on activities carried out during the preceding 
program year under section 4212(d) of this title; 
(5) a report on the operation during the preceding program 
year of programs for the provision of employment and training 
services designed to meet the needs of eligible veterans and eligible 
persons, including an evaluation of the effectiveness of 
such programs during such program year in meeting the requirements of 
section 4102A(b) of this title, the efficiency with 
which services were provided through such programs during 
such year, and such recommendations for further legislative 
action relating to veteransï¿½ employment and training as the 
Secretary considers appropriate; and 
(6) a report on the operation during the preceding program 
year of the program of performance incentive awards for quality 
employment services under section 4112 of this title. 
(Added Pub. L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 
1096, Sec. 2007; amended Pub. L. 93-508, title IV, Sec. 401(f), Dec. 3, 
1974, 88 Stat. 1592; Pub. L. 94-502, title VI, Sec. 604, Oct. 15, 1976, 
90 Stat. 2404; Pub. L. 95-202, title III, Sec. 309(b), Nov. 23, 1977, 
91 Stat. 1446; Pub. L. 96-466, title V, Sec. 507, Oct. 17, 1980, 94 
Stat. 2205; Pub. L. 97-306, title III, Sec. 307, Oct. 14, 1982, 96 
Stat. 1440; Pub. L. 100-323, Sec. 2(d), 15(a)(2), May 20, 1988, 102 
Stat. 558, 574; renumbered Sec. 4107 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 107-288, Secs. 
4(a)(3)(B), (e)(1), 5(a)(1)(D), (E), (d)(1), Nov. 7, 2002, 116 Stat. 
2042, 2044, 2045.) 

ï¿½ 4108. Cooperation and coordination 

(a) In carrying out the Secretaryï¿½s responsibilities under this 
chapter, the Secretary shall from time to time consult with the 
Secretary of Veterans Affairs and keep the Secretary of Veterans 
Affairs fully advised of activities carried out and all data gathered 
pursuant to this chapter to insure maximum cooperation and coordination 
between the Department of Labor and the Department 
of Veterans Affairs. 

Sec. 4109 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 662 

(b) The Secretary of Veterans Affairs shall provide to appropriate 
employment service offices and Department of Labor offices, 
as designated by the Secretary, on a monthly or more frequent 
basis, the name and address of each employer located in the areas 
served by such offices that offer a program of job training which 
has been approved by the Secretary of Veterans Affairs under section 7 
of the Veteransï¿½ Job Training Act (29 U.S.C. 1721 note). 
(Added Pub. L. 92-540, title V, Sec. 502(a), Oct. 24, 1972, 86 Stat. 
1097, Sec. 2008; amended Pub. L. 94-502, title VI, Sec. 606(4), Oct. 
15, 1976, 90 Stat. 2405; Pub.

L. 100-323, Sec. 6(b)(1), (2)(A), 15(a)(2), May 20, 1988, 102 Stat. 
564, 574; Pub. L. 101-237, title IV, Sec. 423(b)(8), Dec. 18, 1989, 
103 Stat. 2093; renumbered Sec. 4108, Pub. L. 102-83, Sec. 5(a), 
Aug. 6, 1991, 105 Stat. 406.) ï¿½ 4109. National Veteransï¿½ Employment 
and Training Services Institute 

(a) In order to provide for such training as the Secretary considers 
necessary and appropriate for the efficient and effective provision of
employment, job-training, intensive services, placement, job-search, 
and related services to veterans, the Secretary shall establish and 
make available such funds as may be necessary to operate a National 
Veteransï¿½ Employment and Training Services Institute for the training 
of disabled veteransï¿½ outreach program specialists, local veteransï¿½ 
employment representatives, Directors for 
Veteransï¿½ Employment and Training, and Assistant Directors for 
Veteransï¿½ Employment and Training, Regional Administrators for 
Veteransï¿½ Employment and Training, and such other personnel involved in 
the provision of employment, job-training, intensive services, placement, 
or related services to veterans as the Secretary 
considers appropriate, including travel expenses and per diem for 
attendance at the Institute. 
(b) In implementing this section, the Secretary shall, as the 
Secretary considers appropriate, provide, out of program funds 
designated for the Institute, training for Veteransï¿½ Employment and 
Training Service personnel, including travel expenses and per diem 
to attend the Institute. 
(c)(1) Nothing in this section shall be construed as preventing 
the Institute to enter into contracts or agreements with departments or 
agencies of the United States or of a State, or with other 
organizations, to carry out training of personnel of such departments, 
agencies, or organizations in the provision of services referred to in 
subsection (a). 

(2) All proceeds collected by the Institute under a contract or 
agreement referred to in paragraph (1) shall be applied to the 
applicable appropriation. 
(Added Pub. L. 97-306, title III, Sec. 308(a), Oct. 14, 1982, 96 Stat. 
1440, Sec. 2009; amended Pub. L. 100-323, Sec. 8(a), May 20, 1988, 102 
Stat. 566; renumbered Sec. 4109, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; Pub. L. 107-288, Sec. 
5(a)(1)(F), (e), Nov. 7, 2002, 116 Stat. 2044, 2046.) 

ï¿½ 4110. Advisory Committee on Veterans Employment,
Training, and Employer Outreach 

(a)(1) There is hereby established within the Department of 
Labor an advisory committee to be known as the Advisory Committee on 
Veterans Employment, Training, and Employer Outreach. 


663 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4110 

(2) The advisory committee shall- 
(A) assess the employment and training needs of veterans 
and their integration into the workforce; 
(B) determine the extent to which the programs and activities of the 
Department of Labor are meeting such needs; 
(C) assist the Assistant Secretary of Labor for Veteransï¿½ 
Employment and Training in carrying out outreach activities 
to employers with respect to the training and skills of veterans 
and the advantages afforded employers by hiring veterans; 
(D) make recommendations to the Secretary, through the 
Assistant Secretary of Labor for Veteransï¿½ Employment and 
Training, with respect to outreach activities and the employment and 
training of veterans; and 
(E) carry out such other activities that are necessary to 
make the reports and recommendations referred to in subsection (f) of 
this section. 
(b) The Secretary of Labor shall, on a regular basis, consult 
with and seek the advice of the advisory committee with respect to 
the matters referred to in subsection (a)(2) of this section. 
(c)(1) The Secretary of Labor shall appoint at least 12, but no 
more than 16, individuals to serve as members of the advisory committee 
as follows: 

(A) Seven individuals, one each from among representatives nominated by 
each of the following organizations: 
(i) The National Society of Human Resource Managers. 
(ii) The Business Roundtable. 
(iii) The National Association of State Workforce Agencies. 
(iv) The United States Chamber of Commerce. 
(v) The National Federation of Independent Business. 
(vi) A nationally recognized labor union or organization. 
(vii) The National Governors Association. 
(B) Not more than five individuals from among representatives nominated 
by veterans service organizations that have a 
national employment program. 
(C) Not more than five individuals who are recognized authorities in the 
fields of business, employment, training, rehabilitation, or labor and 
who are not employees of the Department of Labor. 
(2) A vacancy in the advisory committee shall be filled in the 
manner in which the original appointment was made. 
(d) The following, or their representatives, shall be ex officio, 
nonvoting members of the advisory committee: 
(1) The Secretary of Veterans Affairs. 
(2) The Secretary of Defense. 
(3) The Director of the Office of Personnel Management. 
(4) The Assistant Secretary of Labor for Veterans Employment and 
Training. 
(5) The Assistant Secretary of Labor for Employment and 
Training. 
(6) The Administrator of the Small Business Administration. 

Sec. 4110 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 664 

(e)(1) The advisory committee shall meet at least quarterly. 

(2) The Secretary of Labor shall appoint the chairman of the 
advisory committee who shall serve in that position for no more 
than 2 consecutive years. 
(3)(A) Members of the advisory committee shall serve without 
compensation. 

(B) Members of the advisory committee shall be allowed reasonable and 
necessary travel expenses, including per diem in lieu 
of subsistence, at rates authorized for persons serving intermittently 
in the Government service in accordance with the provisions 
of subchapter I of chapter 57 of title 5 while away from their homes 
or regular places of business in the performance of the responsibilities 
of the advisory committee. 
(4) The Secretary of Labor shall provide staff and administrative 
support to the advisory committee through the Veterans Employment and 
Training Service. 
(f)(1) Not later than December 31 of each year, the advisory 
committee shall submit to the Secretary and to the Committees on 
Veteransï¿½ Affairs of the Senate and House of Representatives a report on 
the employment and training needs of veterans, with special emphasis on 
disabled veterans, for the previous fiscal year. 
Each such report shall contain- 

(A) an assessment of the employment and training needs 
of veterans and their integration into the workforce; 
(B) an assessment of the outreach activities carried out by 
the Secretary of Labor to employers with respect to the training and 
skills of veterans and the advantages afforded employers by hiring 
veterans; 
(C) an evaluation of the extent to which the programs and 
activities of the Department of Labor are meeting such needs; 
(D) a description of the activities of the advisory committee 
during that fiscal year; 
(E) a description of activities that the advisory committee 
proposes to undertake in the succeeding fiscal year; and 
(F) any recommendations for legislation, administrative action, and 
other action that the advisory committee considers 
appropriate. 
(2) In addition to the annual reports made under paragraph 
(1), the advisory committee may make recommendations to the Secretary 
of Labor with respect to the employment and training needs 
of veterans at such times and in such manner as the advisory committee 
determines appropriate. 
(g) Within 60 days after receiving each annual report referred 
to in subsection (f)(1), the Secretary of Labor shall transmit to 
Congress a copy of the report together with any comments concerning 
the report that the Secretary considers appropriate. 
(h) The advisory committee shall continue until terminated by 
law. 
(Added Pub. L. 97-306, title III, Sec. 308(a), Oct. 14, 1982, 96 Stat. 
1441, Sec. 2010; amended Pub. L. 100-323, Sec. 10, 15(a)(2), (3), 
(b)(1), May 20, 1988, 102 Stat. 566, 574; Pub. L. 101-237, title IV, 
Sec. 423(b)(8)(A), Dec. 18, 1989, 103 Stat. 2093; Pub. 

L. 102-16, Sec. 8(a), Mar. 22, 1991, 105 Stat. 52; renumbered Sec. 
4110 and amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(a), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 102-568, title V, Sec. 504, Oct. 29, 
1992, 106 Stat. 4340; Pub. L. 103-446, title XII, Sec. 1201(a)(5), 
(g)(3), (i)(7), Nov. 2, 1994, 108 Stat. 4682, 4687, 4688; Pub. L. 

665 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4110B 

109-233, title II, Sec. 202(a)(1), (2), (b)-(d), June 15, 2006, 120 
Stat. 403, 404; Pub. 

L. 109-461, title VI, Sec. 604(b), Dec. 22, 2006, 120 Stat. 3439; 
Pub. L. 110-387, 
title IX, Sec. 901(a)(4), Oct. 10, 2008, 122 Stat. 4142.) 
ï¿½ 4110A. Special unemployment study 

(a)(1) The Secretary, through the Bureau of Labor Statistics, 
shall conduct an annual study of unemployment among each of the 
following categories of veterans: 

(A) Veterans who were called to active duty while members of the 
National Guard or a Reserve Component. 
(B) Veterans who served in combat or in a war zone in the 
Post 9/11 Global Operations theaters. 
(C) Veterans who served on active duty during the Post 9/ 
11 Global Operations period who did not serve in the Post 9/ 
11 Global Operations theaters. 
(D) Veterans of the Vietnam era who served in the Vietnam theater of 
operations during the Vietnam era. 
(E) Veterans who served on active duty during the Vietnam era who did 
not serve in the Vietnam theater of operations. 
(F) Veterans discharged or released from active duty within four 
years of the applicable study. 
(G) Special disabled veterans. 
(2) Within each of the categories of veterans specified in paragraph 
(1), the Secretary shall include a separate category for 
women who are veterans. 
(b) The Secretary shall promptly submit to Congress a report 
on the results of each study under subsection (a). 
(c) In this section: 
(1) The term ï¿½ï¿½Post 9/11 Global Operations periodï¿½ï¿½ means 
the period of the Persian Gulf War beginning on September 11, 
2001, and ending on the date thereafter prescribed by Presidential 
proclamation or law. 
(2) The term ï¿½ï¿½Post 9/11 Global Operations theatersï¿½ï¿½ means 
Afghanistan, Iraq, or any other theater in which the Global 
War on Terrorism Expeditionary Medal is awarded for service. 
(Added Pub. L. 100-323, Sec. 9(a), May 20, 1988, 102 Stat. 566, 
Sec. 2010A; renumbered Sec. 4110A, Pub. L. 102-83, Sec. 5(a), Aug. 6, 
1991, 105 Stat. 406; amended Pub. L. 103-446, title VII, Sec. 701(c), 
Nov. 2, 1994, 108 Stat. 4674; Pub. L. 105-368, title X, Sec. 
1005(b)(14), Nov. 11, 1998, 112 Stat. 3365; Pub. L. 110-389, title 
III, Sec. 317, Oct. 10, 2008, 122 Stat. 4167.) 

ï¿½ 4110B. Coordination and nonduplication 

In carrying out this chapter, the Secretary shall require that 
an appropriate administrative entity in each State enter into an 
agreement with the Secretary regarding the implementation of the 
Workforce Investment Act of 1998 that includes the description and 
information described in paragraphs (8) and (14) of section 112(b) 
of the Workforce Investment Act of 1998 (29 U.S.C. 2822(b)). 

(Added Pub. L. 105-220, title III, Sec. 322, Aug. 7, 1998, 112 Stat. 
1087; amended 
Pub. L. 109-233, title V, Sec. 503(13), June 15, 2006, 120 Stat. 417.) 


Sec. 4111 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 666 

ï¿½ï¿½ 4111. Repealed. Pub. L. 107-95, Sec. 5(e)(3), Dec. 21, 2001, 
115 Stat. 918ï¿½ 

ï¿½ 4112. Performance incentive awards for quality employment, training, 
and placement services 

(a) CRITERIA FOR PERFORMANCE INCENTIVE AWARDS.-(1) For 
purposes of carrying out a program of performance incentive 
awards under section 4102A(c)(2)(A)(i)(III) of this title, the 
Secretary, acting through the Assistant Secretary of Labor for 
Veteransï¿½ Employment and Training, shall establish criteria for 
performance incentive awards programs to be administered by States 
to- 
(A) encourage the improvement and modernization of employment, 
training, and placement services provided under this 
chapter; and 
(B) recognize eligible employees and employment service 
offices for excellence in the provision of such services or for 
having made demonstrable improvements in the provision of 
such services. 
(2) The Secretary shall establish such criteria in consultation 
with representatives of States, political subdivisions of States, and 
other providers of employment, training, and placement services 
under the Workforce Investment Act of 1998 consistent with the 
performance measures established under section 4102A(b)(7) of this 
title. 
(b) FORM OF AWARDS.-Under the criteria established by the 
Secretary for performance incentive awards to be administered by 
States, an award under such criteria may be a cash award or such 
other nonfinancial awards as the Secretary may specify. 
(c) ADMINISTRATION AND USE OF AWARDS.-Performance incentive cash awards 
under this section- 
(1) shall be made from amounts allocated from the grant 
or contract amount for a State for a program year under section 
4102A(c)(7) of this title; 
(2) in the case of such an award made to an eligible employee, shall be 
in addition to the regular pay of the recipient; 
and 
(3) in the case of such an award made to an employment 
service office, may be used by that employment service office 
for any purpose. 
(d) ELIGIBLE EMPLOYEE DEFINED.-In this section, the term 
ï¿½ï¿½eligible employeeï¿½ï¿½ means any of the following: 
(1) A disabled veteransï¿½ outreach program specialist. 
(2) A local veteransï¿½ employment representative. 
(3) An individual providing employment, training, and 
placement services to veterans under the Workforce Investment Act of 
1998 or through an employment service delivery 
system (as defined in section 4101(7) of this title). 
(Added Pub. L. 107-288, Sec. 3(a), Nov. 7, 2002, 116 Stat. 2037; 
amended Pub. L. 
109-461, title VI, Sec. 603, Dec. 22, 2006, 120 Stat. 3437.) 


667 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT Sec. 4114 

ï¿½ 4113. Outstationing of Transition Assistance Program personnel 

(a) STATIONING OF TAP PERSONNEL AT OVERSEAS MILITARY INSTALLATIONS.-(1) 
The Secretary- 
(A) shall station employees of the Veteransï¿½ Employment 
and Training Service, or contractors under subsection (c), at 
each veterans assistance office described in paragraph (2); and 
(B) may station such employees or contractors at such 
other military installations outside the United States as the 
Secretary, after consultation with the Secretary of Defense, determines 
to be appropriate or desirable to carry out the purposes of this chapter. 
(2) Veterans assistance offices referred to in paragraph (1)(A) 
are those offices that are established by the Secretary of Veterans 
Affairs on military installations pursuant to the second sentence of 
section 6304(a) of this title. 
(b) FUNCTIONS.-Employees (or contractors) stationed at military 
installations pursuant to subsection (a) shall provide, in person, 
counseling, assistance in identifying employment and training 
opportunities, help in obtaining such employment and training, and 
other related information and services to members of the Armed 
Forces who are being separated from active duty, and the spouses 
of such members, under the Transition Assistance Program and 
Disabled Transition Assistance Program established in section 
1144 of title 10. 
(c) AUTHORITY TO CONTRACT WITH PRIVATE ENTITIES.-The 
Secretary, consistent with section 1144 of title 10, may enter into 
contracts with public or private entities to provide, in person, some 
or all of the counseling, assistance, information and services under 
the Transition Assistance Program required under subsection (a). 
(Added Pub. L. 108-183, title III, Sec. 309(a)(1), Dec. 16, 2003, 117 
Stat. 2663; 
amended Pub. L. 109-233, title IV, Sec. 402(e)(2), June 15, 2006, 120 
Stat. 411.) 

ï¿½ 4114. Credentialing and licensure of veterans: demonstration project 

(a) DEMONSTRATION PROJECT AUTHORIZED.-The Assistant Secretary for 
Veteransï¿½ Employment and Training may carry out a 
demonstration project on credentialing in accordance with this section 
for the purpose of facilitating the seamless transition of members of 
the Armed Forces from service on active duty to civilian employment. 
(b) IDENTIFICATION OF MILITARY OCCUPATIONAL SPECIALTIES 
AND ASSOCIATED CREDENTIALS AND LICENSES.-(1) The Assistant 
Secretary shall select not less than 10 military occupational 
specialties for purposes of the demonstration project. Each specialty so 
selected by the Assistant Secretary shall require a skill or set of 
skills that is required for civilian employment in an industry with 
high growth or high worker demand. 
(2) The Assistant Secretary shall consult with appropriate Federal, State, 
and industry officials to identify requirements for credentials, 
certifications, and licenses that require a skill or set of 
skills required by a military occupational specialty selected under 
paragraph (1). 

Sec. 4114 CH. 41-JOB COUNSELING, TRAINING, AND PLACEMENT 668 

(3) The Assistant Secretary shall analyze the requirements 
identified under paragraph (2) to determine which requirements 
may be satisfied by the skills, training, or experience acquired by 
members of the Armed Forces with the military occupational specialties 
selected under paragraph (1). 
(c) ELIMINATION OF BARRIERS TO CREDENTIALING AND LICENSURE.-The Assistant 
Secretary shall cooperate with appropriate 
Federal, State, and industry officials to reduce or eliminate any 
barriers to providing a credential, certification, or license to a veteran 
who acquired any skill, training, or experience while serving 
as a member of the Armed Forces with a military occupational specialty 
selected under subsection (b)(1) that satisfies the Federal and 
State requirements for the credential, certification, or license. 
(d) TASK FORCE.-The Assistant Secretary may establish a 
task force of individuals with appropriate expertise to provide assistance 
to the Assistant Secretary in carrying out this section. 
(e) CONSULTATION.-In carrying out this section, the Assistant 
Secretary shall consult with the Secretary of Defense, the Secretary 
of Veterans Affairs, appropriate Federal and State officials, private-
sector employers, labor organizations, and industry trade associations. 
(f) CONTRACT AUTHORITY.-For purposes of carrying out any 
part of the demonstration project under this section, the Assistant 
Secretary may enter into a contract with a public or private entity 
with appropriate expertise. 
(g) PERIOD OF PROJECT.-The period during which the Assistant Secretary may 
carry out the demonstration project under this 
section shall be the period beginning on the date that is 60 days 
after the date of the enactment of the Veterans Benefits, Health 
Care, and Information Technology Act of 2006 and ending on September 30, 
2009. 
(h) FUNDING.-The Assistant Secretary may carry out the demonstration 
project under this section utilizing unobligated funds 
that are appropriated in accordance with the authorization set 
forth in section 4106 of this title. 
(Added Pub. L. 109-461, title VI, Sec. 604(a)(1), Dec. 22, 2006, 120 
Stat. 3437.) 


CHAPTER 42 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


669 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 42-EMPLOYMENT AND TRAINING OF 
VETERANS


Sec. 

4211. Definitions. 

4212. Veteransï¿½ employment emphasis under Federal contracts. 

4213. Eligibility requirements for veterans under Federal employment and 
training programs. 

4214. Employment within the Federal Government. 

4215. Priority of service for veterans in Department of Labor job 
training programs. 

ï¿½ 4211. Definitions 

As used in this chapter- 

(1) The term ï¿½ï¿½special disabled veteranï¿½ï¿½ means- 
(A) a veteran who is entitled to compensation (or who but 
for the receipt of military retired pay would be entitled to 
compensation) under laws administered by the Secretary for a 
disability (i) rated at 30 percent or more, or (ii) rated at 10 or 20 
percent in the case of a veteran who has been determined 
under section 3106 of this title to have a serious employment 
handicap; or 
(B) a person who was discharged or released from active 
duty because of service-connected disability. 
(2) The term ï¿½ï¿½veteran of the Vietnam eraï¿½ï¿½ means an eligible 
veteran any part of whose active military, naval, or air service was 
during the Vietnam era. 
(3) The term ï¿½ï¿½disabled veteranï¿½ï¿½ means (A) a veteran who is entitled 
to compensation (or who but for the receipt of military retired 
pay would be entitled to compensation) under laws administered by 
the Secretary, or (B) a person who was discharged or released from 
active duty because of a service-connected disability. 
(4) The term ï¿½ï¿½eligible veteranï¿½ï¿½ means a person who- 
(A) served on active duty for a period of more than 180 
days and was discharged or released therefrom with other than 
a dishonorable discharge; 
(B) was discharged or released from active duty because of 
a service-connected disability; 
(C) as a member of a reserve component under an order 
to active duty pursuant to section 12301(a), (d), or (g), 12302, 
or 12304 of title 10, served on active duty during a period of 
war or in a campaign or expedition for which a campaign 
badge is authorized and was discharged or released from such 
duty with other than a dishonorable discharge; or 
671 


Sec. 4212 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS 672 

(D) was discharged or released from active duty by reason 
of a sole survivorship discharge (as that term is defined in section 
1174(i) of title 10). 
(5) The term ï¿½ï¿½department or agencyï¿½ï¿½ means any agency of the 
Federal Government or the District of Columbia, including any Executive 
agency as defined in section 105 of title 5 and the United 
States Postal Service and the Postal Regulatory Commission, and 
the term ï¿½ï¿½department, agency, or instrumentality in the executive 
branchï¿½ï¿½ includes the United States Postal Service and the Postal 
Regulatory Commission. 
(6) The term ï¿½ï¿½recently separated veteranï¿½ï¿½ means any veteran 
during the three-year period beginning on the date of such veteranï¿½s 
discharge or release from active duty. 
(Added Pub. L. 92-540, title V, Sec. 503(a), Oct. 24, 1972, 86 Stat. 
1097, Sec. 2011; amended Pub. L. 94-502, title VI, Sec. 607(1), 
Oct. 15, 1976, 90 Stat. 2405; Pub. L. 96-466, title V, Sec. 508, 
Oct. 17, 1980, 94 Stat. 2206; Pub. L. 97-306, title III, Sec. 309, 
Oct. 14, 1982, 96 Stat. 1441; Pub. L. 98-223, title II, Sec. 206, 
Mar. 2, 1984, 98 Stat. 43; Pub. L. 101-237, title IV, Sec. 407(a)(2), 
Dec. 18, 1989, 103 Stat. 2082; Pub. L. 102-16, Sec. 1, Mar. 22, 1991, 
105 Stat. 48; Pub. L. 102-54, Sec. 14(c)(9), June 13, 1991, 105 Stat. 
285; renumbered Sec. 4211 and amended Pub. L. 102-83, Sec. 4(a)(1), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403, 406; Pub. L. 102-127, 
Sec. 5, Oct. 10, 1991, 105 Stat. 622; Pub. L. 102-568, title V, Sec. 
502, Oct. 29, 1992, 106 Stat. 4340; Pub. L. 104-106, div. A, title XV, 
Sec. 1501(e)(2)(D), Feb. 10, 1996, 110 Stat. 501; Pub. L. 106-419, 
title III, Sec. 322(c), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107-288, 
Sec. 2(b)(2)(D), Nov. 7, 2002, 116 Stat. 2036; Pub. L. 109-435, title 
VI, Sec. 604(f), Dec. 20, 2006, 120 Stat. 3242; Pub. L. 110-317, 
Sec. 6(b), Aug. 29, 
2008, 122 Stat. 3528.) 
ï¿½ 4212. Veteransï¿½ employment emphasis under Federal contracts 

(a)(1) Any contract in the amount of $100,000 or more entered 
into by any department or agency of the United States for the 
procurement of personal property and nonpersonal services (including 
construction) for the United States, shall contain a provision 
requiring that the party contracting with the United States take 
affirmative action to employ and advance in employment qualified 
covered veterans. This section applies to any subcontract in the 
amount of $100,000 or more entered into by a prime contractor in 
carrying out any such contract. 

(2) In addition to requiring affirmative action to employ such 
qualified covered veterans under such contracts and subcontracts 
and in order to promote the implementation of such requirement, 
the Secretary of Labor shall prescribe regulations requiring that- 
(A) each such contractor for each such contract shall immediately list 
all of its employment openings with the appropriate 
employment service delivery system (as defined in section 
4101(7) of this title), and may also list such openings with one-
stop career centers under the Workforce Investment Act of 
1998, other appropriate service delivery points, or Americaï¿½s 
Job Bank (or any additional or subsequent national electronic 
job bank established by the Department of Labor), except that 
the contractor may exclude openings for executive and senior 
management positions and positions which are to be filled from 
within the contractorï¿½s organization and positions lasting three 
days or less; 

673 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS Sec. 4212 

(B) each such employment service delivery system shall 
give such qualified covered veterans priority in referral to such 
employment openings; and 
(C) each such employment service delivery system shall 
provide a list of such employment openings to States, political 
subdivisions of States, or any private entities or organizations 
under contract to carry out employment, training, and placement 
services under chapter 41 of this title. 
(3) In this section: 
(A) The term ï¿½ï¿½covered veteranï¿½ï¿½ means any of the following 
veterans: 
(i) Disabled veterans. 
(ii) Veterans who served on active duty in the Armed 
Forces during a war or in a campaign or expedition for 
which a campaign badge has been authorized. 
(iii) Veterans who, while serving on active duty in the 
Armed Forces, participated in a United States military operation for 
which an Armed Forces service medal was 
awarded pursuant to Executive Order No. 12985 (61 Fed. 
Reg. 1209). 
(iv) Recently separated veterans. 
(B) The term ï¿½ï¿½qualifiedï¿½ï¿½, with respect to an employment 
position, means having the ability to perform the essential 
functions of the position with or without reasonable accommodation for 
an individual with a disability. 
(b) If any special disabled veteran or veteran of the Vietnam 
era believes any contractor of the United States has failed to comply 
or refuses to comply with the provisions of the contractorï¿½s contract 
relating to the employment of veterans, the veteran may file 
a complaint with the Secretary of Labor, who shall promptly investigate 
such complaint and take appropriate action in accordance 
with the terms of the contract and applicable laws and regulations. 
(c) The Secretary of Labor shall include as part of the annual 
report required by section 4107(c) of this title the number of 
complaints filed pursuant to subsection (b) of this section, the actions 
taken thereon and the resolutions thereof. Such report shall also 
include the number of contractors listing employment openings, the 
nature, types, and number of positions listed and the number of 
veterans receiving priority pursuant to subsection (a)(2)(B). 
(d)(1) Each contractor to whom subsection (a) applies shall, in 
accordance with regulations which the Secretary of Labor shall 
prescribe, report at least annually to the Secretary of Labor on- 

(A) the number of employees in the workforce of such contractor, by job 
category and hiring location, and the number of 
such employees, by job category and hiring location, who are 
qualified covered veterans; 
(B) the total number of new employees hired by the contractor during 
the period covered by the report and the number 
of such employees who are qualified covered veterans; and 
(C) the maximum number and the minimum number of 
employees of such contractor during the period covered by the 
report. 
(2) The Secretary of Labor shall ensure that the administration 
of the reporting requirement under paragraph (1) is coordinated 

Sec. 4213 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS 674 

with respect to any requirement for the contractor to make any 
other report to the Secretary of Labor. 

(Added Pub. L. 92-540, title V, Sec. 503(a), Oct. 24, 1972, 86 Stat. 
1097, Sec. 2012; amended Pub. L. 93-508, title IV, Sec. 402, Dec. 3, 
1974, 88 Stat. 1593; Pub. L. 94-502, title VI, Sec. 605, 607(2), Oct. 
15, 1976, 90 Stat. 2405; Pub. L. 95-520, Sec. 6(a), Oct. 26, 1978, 92 
Stat. 1821; Pub. L. 96-466, title V, Sec. 509, title VIII, Sec. 
801(j), Oct. 17, 1980, 94 Stat. 2206, 2217; Pub. L. 97-306, title III, 
Sec. 310(a), Oct. 14, 1982, 96 Stat. 1442; renumbered Sec. 4212 and 
amended Pub. L. 102-83, Sec. 4(b)(8), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 405, 406; Pub. L. 103-446, title VII, Sec. 702(a), Nov. 2, 1994, 
108 Stat. 4674; Pub. L. 106-419, title III, Sec. 322(a), (b), Nov. 
1, 2000, 114 Stat. 1855; Pub. L. 107-288, Sec. 2(b)(1), (2)(A)-(C), 
Nov. 7, 2002, 116 
Stat. 2034, 2035.) 

ï¿½ 4213. Eligibility requirements for veterans under Federal 
employment and training programs 

(a) Amounts and periods of time specified in subsection (b) 
shall be disregarded in determining eligibility under any of the 
following: 
(1) Any public service employment program. 
(2) Any emergency employment program. 
(3) Any job training program assisted under the Economic 
Opportunity Act of 1964. 
(4) Any employment or training program carried out under 
title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 
et seq.). 
(5) Any other employment or training (or related) program 
financed in whole or in part with Federal funds. 
(b) Subsection (a) applies with respect to the following amounts 
and periods of time: 
(1) Any amount received as pay or allowances by any person while 
serving on active duty. 
(2) Any period of time during which such person served on 
active duty. 
(3) Any amount received under chapters 11, 13, 30, 31, 32, 
and 36 of this title by an eligible veteran. 
(4) Any amount received by an eligible person under chapters 13 and 
35 of this title. 
(5) Any amount received by an eligible member under 
chapter 106 of title 10. 
(Added Pub. L. 92-540, title V, Sec. 503(a), Oct. 24, 1972, 86 Stat. 
1098, Sec. 2013; amended Pub. L. 96-466, title VIII, Sec. 801(k)(1), 
(2)(A), Oct. 17, 1980, 94 Stat. 2217; Pub. L. 102-54, Sec. 14(c)(10), 
June 13, 1991, 105 Stat. 285; renumbered Sec. 4213, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103-446, title 
VII, Sec. 702(b), Nov. 2, 1994, 108 Stat. 4675; Pub. L. 105-277, div. 
A, Sec. 101(f) [title VIII, Sec. 405(d)(29)(C), (f)(21)(C)], Oct. 21, 
1998, 112 Stat. 2681-337, 2681- 424, 2681-432; Pub. L. 106-419, title 
IV, Sec. 404(a)(9), Nov. 1, 2000, 114 Stat. 
1865.) 

ï¿½ 4214. Employment within the Federal Government 

(a)(1) The United States has an obligation to assist veterans of 
the Armed Forces in readjusting to civilian life. The Federal 
Government is also continuously concerned with building an effective 
work force, and veterans constitute a uniquely qualified recruiting 
source. It is, therefore, the policy of the United States and the 
purpose of this section to promote the maximum of employment and 
job advancement opportunities within the Federal Government for 


675 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS Sec. 4214 

qualified covered veterans (as defined in paragraph (2)(B)) who are 
qualified for such employment and advancement. 

(2) In this section: 
(A) The term ï¿½ï¿½agencyï¿½ï¿½ has the meaning given the term 
ï¿½ï¿½department or agencyï¿½ï¿½ in section 4211(5) of this title. 
(B) The term ï¿½ï¿½qualified covered veteranï¿½ï¿½ means a veteran 
described in section 4212(a)(3) of this title. 
(b)(1) To further the policy stated in subsection (a) of this sec
tion, veterans referred to in paragraph (2) of this subsection shall 
be eligible, in accordance with regulations which the Office of 
Personnel Management shall prescribe, for veterans recruitment 
appointments, and for subsequent career-conditional appointments, 
under the terms and conditions specified in Executive Order Numbered 
11521 (March 26, 1970), except that- 

(A) such an appointment may be made up to and including 
the level GS-11 or its equivalent; 
(B) a veteran shall be eligible for such an appointment 
without regard to the number of years of education completed 
by such veteran; 
(C) a veteran who is entitled to disability compensation 
under the laws administered by the Department of Veterans 
Affairs or whose discharge or release from active duty was for 
a disability incurred or aggravated in line of duty shall be 
given a preference for such an appointment over other veterans; 
(D) a veteran receiving such an appointment shall- 
(i) in the case of a veteran with less than 15 years of 
education, receive training or education; and 
(ii) upon successful completion of the prescribed probationary period, 
acquire a competitive status; and 
(E) a veteran given an appointment under the authority of 
this subsection whose employment under the appointment is 
terminated within one year after the date of such appointment 
shall have the same right to appeal that termination to the 
Merit Systems Protection Board as a career or career-conditional 
employee has during the first year of employment. 
(2) This subsection applies to qualified covered veterans. 
(3) A qualified covered veteran may receive such an appointment at any 
time. 
(c) Each agency shall include in its affirmative action plan for 
the hiring, placement, and advancement of handicapped individuals 
in such agency as required by section 501(b) of the Rehabilitation 
Act of 1973 (29 U.S.C. 791(b)), a separate specification of plans (in 
accordance with regulations which the Office of Personnel Management 
shall prescribe in consultation with the Secretary, the Secretary of 
Labor, and the Secretary of Health and Human Services, 
consistent with the purposes, provisions, and priorities of such Act) 
to promote and carry out such affirmative action with respect to 
disabled veterans in order to achieve the purpose of this section. 
(d) The Office of Personnel Management shall be responsible 
for the review and evaluation of the implementation of this section 
and the activities of each agency to carry out the purpose and 
provisions of this section. The Office shall periodically obtain (on at 
least an annual basis) information on the implementation of this 

Sec. 4214 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS 676 

section by each agency and on the activities of each agency to carry 
out the purpose and provisions of this section. The information 
obtained shall include specification of the use and extent of 
appointments made by each agency under subsection (b) of this section and 
the results of the plans required under subsection (c) of this section. 

(e)(1) The Office of Personnel Management shall submit to the 
Congress annually a report on activities carried out under this section. 
Each such report shall include the following information with 
respect to each agency: 

(A) The number of appointments made under subsection 
(b) of this section since the last such report and the grade levels in 
which such appointments were made. 
(B) The number of individuals receiving appointments 
under such subsection whose appointments were converted to 
career or career-conditional appointments, or whose employment under 
such an appointment has terminated, since the 
last such report, together with a complete listing of categories 
of causes of appointment terminations and the number of such 
individuals whose employment has terminated falling into each 
such category. 
(C) The number of such terminations since the last such 
report that were initiated by the agency involved and the number of 
such terminations since the last such report that were 
initiated by the individual involved. 
(D) A description of the education and training programs 
in which individuals appointed under such subsection are participating 
at the time of such report. 
(2) Information shown for an agency under clauses (A) through 
(D) of paragraph (1) of this subsection- 
(A) shall be shown for all veterans; and 
(B) shall be shown separately (i) for veterans who are entitled to 
disability compensation under the laws administered by 
the Secretary or whose discharge or release from active duty 
was for a disability incurred or aggravated in line of duty, and 
(ii) for other veterans. 
(f) Notwithstanding section 4211 of this title, the terms ï¿½ï¿½veteranï¿½ï¿½ 
and ï¿½ï¿½disabled veteranï¿½ï¿½ as used in subsection (a) of this section 
shall have the meaning provided for under generally applicable civil 
service law and regulations. 
(g) To further the policy stated in subsection (a) of this section, 
the Secretary may give preference to qualified covered veterans for 
employment in the Department as veteransï¿½ benefits counselors 
and veteransï¿½ claims examiners and in positions to provide the outreach 
services required under section 6303 of this title, to serve as 
veteransï¿½ representatives at certain educational institutions as provided 
in section 6305 of this title, or to provide readjustment counseling under 
section 1712A of this title. (Added Pub. L. 93-508, title IV, Sec. 403(a), 
Dec. 3, 1974, 88 Stat. 1593, Sec. 2014; amended Pub. L. 95-202, title III, 
Sec. 308, Nov. 23, 1977, 91 Stat. 1445; Pub. L. 95-520, Sec. 6(b), Oct. 
26, 1978, 92 Stat. 1821; Pub. L. 96-466, title V, Sec. 510, title VIII, 
Sec. 801(l), Oct. 17, 1980, 94 Stat. 2207, 2217; Pub. L. 97-72, title II, 
Sec. 202(a), Nov. 3, 1981, 95 Stat. 1054; Pub. L. 97-295, Sec. 4(95)(A), 
Oct. 12, 1982, 96 Stat. 1313; Pub. L. 98-543, title II, Sec. 211, Oct. 
24, 1984, 98 Stat. 2743; Pub. L. 99-576, title III, Sec. 332, Oct. 28, 
1986, 100 Stat. 3279; Pub. L. 101-237, title IV, 


677 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS Sec. 4215 

Sec. 407(a)(1), (b), Dec. 18, 1989, 103 Stat. 2082; Pub. L. 102-16, 
Sec. 9(a), (b), Mar. 22, 1991, 105 Stat. 54; renumbered Sec. 4214 and 
amended Pub. L. 102-83, Sec. 2(c)(5), 4(a)(1), (3), (4), (b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 402-406; Pub. L. 102-127, 
Sec. 4, Oct. 10, 1991, 105 Stat. 622; Pub. L. 102-568, title V, Sec. 
505, Oct. 29, 1992, 106 Stat. 4340; Pub. L. 107-288, Sec. 2(c)(1)-(3), 
Nov. 7, 2002, 116 Stat. 2036; Pub. L. 109-233, title IV, Sec. 
402(e)(3), June 15, 2006, 120 Stat. 
411.) 

ï¿½ 4215. Priority of service for veterans in Department of 
Labor job training programs 

(a) DEFINITIONS.-In this section: 
(1) The term ï¿½ï¿½covered personï¿½ï¿½ means any of the following 
individuals: 
(A) A veteran. 
(B) The spouse of any of the following individuals: 
(i) Any veteran who died of a service-connected 
disability. 
(ii) Any member of the Armed Forces serving on 
active duty who, at the time of application for assistance under this 
section, is listed, pursuant to section 556 of title 37 and regulations 
issued thereunder, by the Secretary concerned in one or more of the 
following categories and has been so listed for a total of more than 90 
days: (I) missing in action, (II) captured in line of duty by a hostile 
force, or (III) forcibly detained or interned in line of duty by a 
foreign government or power. 
(iii) Any veteran who has a total disability resulting from a service-
connected disability. 
(iv) Any veteran who died while a disability so 
evaluated was in existence. 
(2) The term ï¿½ï¿½qualified job training programï¿½ï¿½ means any 
workforce preparation, development, or delivery program or 
service that is directly funded, in whole or in part, by the Department 
of Labor and includes the following: 
(A) Any such program or service that uses technology 
to assist individuals to access workforce development programs (such as 
job and training opportunities, labor market information, career 
assessment tools, and related support services). 
(B) Any such program or service under the public employment service 
system, one-stop career centers, the 
Workforce Investment Act of 1998, a demonstration or 
other temporary program, and those programs implemented by States or 
local service providers based on Federal block grants administered by 
the Department of 
Labor. 
(C) Any such program or service that is a workforce 
development program targeted to specific groups. 
(3) The term ï¿½ï¿½priority of serviceï¿½ï¿½ means, with respect to 
any qualified job training program, that a covered person shall 
be given priority over nonveterans for the receipt of employment, 
training, and placement services provided under that 
program, notwithstanding any other provision of law. 

Sec. 4215 CH. 42-EMPLOYMENT AND TRAINING OF VETERANS 678 

(b) ENTITLEMENT TO PRIORITY OF SERVICE.-(1) A covered person is 
entitled to priority of service under any qualified job training 
program if the person otherwise meets the eligibility requirements 
for participation in such program. 
(2) The Secretary of Labor may establish priorities among covered 
persons for purposes of this section to take into account the 
needs of disabled veterans and special disabled veterans, and such 
other factors as the Secretary determines appropriate. 
(c) ADMINISTRATION OF PROGRAMS AT STATE AND LOCAL LEVELS.-An entity of 
a State or a political subdivision of the State 
that administers or delivers services under a qualified job training 
program shall- 
(1) provide information and priority of service to covered 
persons regarding benefits and services that may be obtained 
through other entities or service providers; and 
(2) ensure that each covered person who applies to or who 
is assisted by such a program is informed of the employment-
related rights and benefits to which the person is entitled 
under this section. 
(d) ADDITION TO ANNUAL REPORT.-In the annual report required under 
section 4107(c) of this title for the program year beginning in 2003 
and each subsequent program year, the Secretary of Labor shall evaluate 
whether covered persons are receiving priority of service and are being 
fully served by qualified job training programs, and whether the 
representation of veterans in such programs is in proportion to the 
incidence of representation of veterans in the labor market, including 
within groups that the Secretary may designate for priority under such 
programs, if any. 
(Added Pub. L. 107-288, Sec. 2(a)(1), Nov. 7, 2002, 116 Stat. 2033.) 


CHAPTER 43 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


679 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART III-READJUSTMENT AND RELATED BENEFITSï¿½


CHAPTER 43-EMPLOYMENT AND REEMPLOYMENT 
RIGHTS OF MEMBERS OF THE UNIFORMED SERVICES


SUBCHAPTER I-GENERAL 

Sec. 
4301. Purposes; sense of Congress. 
4302. Relation to other law and plans or agreements. 
4303. Definitions. 
4304. Character of service. 


SUBCHAPTER II-EMPLOYMENT AND REEMPLOYMENT RIGHTS AND 
LIMITATIONS; PROHIBITIONS 


4311. Discrimination against persons who serve in the uniformed 
services and 
acts of reprisal prohibited. 

4312. Reemployment rights of persons who serve in the uniformed 
services. 

4313. Reemployment positions. 

4314. Reemployment by the Federal Government. 

4315. Reemployment by certain Federal agencies. 

4316. Rights, benefits, and obligations of persons absent from 
employment for 
service in a uniformed service. 

4317. Health plans. 

4318. Employee pension benefit plans. 

4319. Employment and reemployment rights in foreign countries. 

SUBCHAPTER III-PROCEDURES FOR ASSISTANCE, ENFORCEMENT, AND 
INVESTIGATION 


4321. Assistance in obtaining reemployment or other employment rights 
or benefits. 

4322. Enforcement of employment or reemployment rights. 

4323. Enforcement of rights with respect to a State or private employer. 

4324. Enforcement of rights with respect to Federal executive agencies. 

4325. Enforcement of rights with respect to certain Federal agencies. 

4326. Conduct of investigation; subpoenas. 

4327. Noncompliance of Federal officials with deadlines; 
inapplicability of statutes of limitations. 

SUBCHAPTER IV-MISCELLANEOUS PROVISIONS 

4331. Regulations. 

4332. Reports. 

4333. Outreach. 

4334. Notice of rights and duties. 

4335. Training for Federal executive agency human resources personnel 
on employment and reemployment rights and limitations. 

SUBCHAPTER I-GENERAL 

ï¿½ 4301. Purposes; sense of Congress 

(a) The purposes of this chapter are- 
(1) to encourage noncareer service in the uniformed services by 
eliminating or minimizing the disadvantages to civilian 
careers and employment which can result from such service; 
681 


Sec. 4302 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 682 

(2) to minimize the disruption to the lives of persons performing 
service in the uniformed services as well as to their 
employers, their fellow employees, and their communities, by 
providing for the prompt reemployment of such persons upon 
their completion of such service; and 
(3) to prohibit discrimination against persons because of 
their service in the uniformed services. 
(b) It is the sense of Congress that the Federal Government 
should be a model employer in carrying out the provisions of this 
chapter. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3150; 
amended Pub. L. 
104-275, title III, Sec. 311(1), Oct. 9, 1996, 110 Stat. 3333.) 

ï¿½ 4302. Relation to other law and plans or agreements 

(a) Nothing in this chapter shall supersede, nullify or diminish 
any Federal or State law (including any local law or ordinance), 
contract, agreement, policy, plan, practice, or other matter that 
establishes a right or benefit that is more beneficial to, or is in 
addition to, a right or benefit provided for such person in this chapter. 
(b) This chapter supersedes any State law (including any local 
law or ordinance), contract, agreement, policy, plan, practice, or 
other matter that reduces, limits, or eliminates in any manner any 
right or benefit provided by this chapter, including the establishment 
of additional prerequisites to the exercise of any such right 
or the receipt of any such benefit. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3150.) 

ï¿½ 4303. Definitions 

For the purposes of this chapter- 

(1) The term ï¿½ï¿½Attorney Generalï¿½ï¿½ means the Attorney General of the 
United States or any person designated by the Attorney General to 
carry out a responsibility of the Attorney 
General under this chapter. 
(2) The term ï¿½ï¿½benefitï¿½ï¿½, ï¿½ï¿½benefit of employmentï¿½ï¿½, or ï¿½ï¿½rights 
and benefitsï¿½ï¿½ means any advantage, profit, privilege, gain, status, 
account, or interest (other than wages or salary for work 
performed) that accrues by reason of an employment contract 
or agreement or an employer policy, plan, or practice and includes 
rights and benefits under a pension plan, a health plan, 
an employee stock ownership plan, insurance coverage and 
awards, bonuses, severance pay, supplemental unemployment 
benefits, vacations, and the opportunity to select work hours or 
location of employment. 
(3) The term ï¿½ï¿½employeeï¿½ï¿½ means any person employed by an 
employer. Such term includes any person who is a citizen, national, or 
permanent resident alien of the United States employed in a workplace 
in a foreign country by an employer that 
is an entity incorporated or otherwise organized in the United 
States or that is controlled by an entity organized in the 
United States, within the meaning of section 4319(c) of this 
title. 
(4)(A) Except as provided in subparagraphs (B) and (C), 
the term ï¿½ï¿½employerï¿½ï¿½ means any person, institution, organization, or 
other entity that pays salary or wages for work per


683 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4303 

formed or that has control over employment opportunities, including- 

(i) a person, institution, organization, or other entity 
to whom the employer has delegated the performance of 
employment-related responsibilities; 
(ii) the Federal Government; 
(iii) a State; 
(iv) any successor in interest to a person, institution, 
organization, or other entity referred to in this subparagraph; and 
(v) a person, institution, organization, or other entity 
that has denied initial employment in violation of section 
4311. 
(B) In the case of a National Guard technician employed 
under section 709 of title 32, the term ï¿½ï¿½employerï¿½ï¿½ means the 
adjutant general of the State in which the technician is employed. 
(C) Except as an actual employer of employees, an employee pension 
benefit plan described in section 3(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1002(2)) shall be deemed to be an employer only with respect 
to the obligation to provide benefits described in section 4318. 
(5) The term ï¿½ï¿½Federal executive agencyï¿½ï¿½ includes the 
United States Postal Service, the Postal Regulatory Commission, any 
nonappropriated fund instrumentality of the United 
States, any Executive agency (as that term is defined in section 
105 of title 5) other than an agency referred to in section 
2302(a)(2)(C)(ii) of title 5, and any military department (as 
that term is defined in section 102 of title 5) with respect to 
the civilian employees of that department. 
(6) The term ï¿½ï¿½Federal Governmentï¿½ï¿½ includes any Federal 
executive agency, the legislative branch of the United States, 
and the judicial branch of the United States. 
(7) The term ï¿½ï¿½health planï¿½ï¿½ means an insurance policy or 
contract, medical or hospital service agreement, membership or 
subscription contract, or other arrangement under which 
health services for individuals are provided or the expenses of 
such services are paid. 
(8) The term ï¿½ï¿½noticeï¿½ï¿½ means (with respect to subchapter II) 
any written or verbal notification of an obligation or intention 
to perform service in the uniformed services provided to an employer 
by the employee who will perform such service or by the 
uniformed service in which such service is to be performed. 
(9) The term ï¿½ï¿½qualifiedï¿½ï¿½, with respect to an employment 
position, means having the ability to perform the essential 
tasks of the position. 
(10) The term ï¿½ï¿½reasonable effortsï¿½ï¿½, in the case of actions 
required of an employer under this chapter, means actions, including 
training provided by an employer, that do not place an 
undue hardship on the employer. 
(11) Notwithstanding section 101, the term ï¿½ï¿½Secretaryï¿½ï¿½ 
means the Secretary of Labor or any person designated by such 
Secretary to carry out an activity under this chapter. 

Sec. 4303 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 684 

(12) The term ï¿½ï¿½seniorityï¿½ï¿½ means longevity in employment 
together with any benefits of employment which accrue with, 
or are determined by, longevity in employment. 
(13) The term ï¿½ï¿½service in the uniformed servicesï¿½ï¿½ means 
the performance of duty on a voluntary or involuntary basis in 
a uniformed service under competent authority and includes 
active duty, active duty for training, initial active duty for 
training, inactive duty training, full-time National Guard duty, 
a period for which a person is absent from a position of employment 
for the purpose of an examination to determine the 
fitness of the person to perform any such duty, and a period 
for which a person is absent from employment for the purpose 
of performing funeral honors duty as authorized by section 
12503 of title 10 or section 115 of title 32. 
(14) The term ï¿½ï¿½Stateï¿½ï¿½ means each of the several States of 
the United States, the District of Columbia, the Commonwealth of 
Puerto Rico, Guam, the Virgin Islands, and other territories of the 
United States (including the agencies and political subdivisions 
thereof). 
(15) The term ï¿½ï¿½undue hardshipï¿½ï¿½, in the case of actions 
taken by an employer, means actions requiring significant difficulty 
or expense, when considered in light of- 
(A) the nature and cost of the action needed under this 
chapter; 
(B) the overall financial resources of the facility or facilities 
involved in the provision of the action; the number 
of persons employed at such facility; the effect on expenses 
and resources, or the impact otherwise of such action upon 
the operation of the facility; 
(C) the overall financial resources of the employer; the 
overall size of the business of an employer with respect to 
the number of its employees; the number, type, and location of its 
facilities; and 
(D) the type of operation or operations of the employer, 
including the composition, structure, and functions of the 
work force of such employer; the geographic separateness, 
administrative, or fiscal relationship of the facility or facilities 
in question to the employer. 
(16) The term ï¿½ï¿½uniformed servicesï¿½ï¿½ means the Armed 
Forces, the Army National Guard and the Air National Guard 
when engaged in active duty for training, inactive duty training, or 
full-time National Guard duty, the commissioned corps 
of the Public Health Service, and any other category of persons 
designated by the President in time of war or national emergency. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3150; 
amended Pub. L. 
104-275, title III, Sec. 311(2), Oct. 9, 1996, 110 Stat. 3334; 
Pub. L. 105-368, title 
II, Sec. 212(a), Nov. 11, 1998, 112 Stat. 3331; Pub. L. 106-419, 
title III, Sec. 323(a), 
Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107-14, Sec. 8(a)(11), (b)(2), 
June 5, 2001, 115 
Stat. 35, 36; Pub. L. 109-435, title VI, Sec. 604(f), Dec. 20, 2006, 
120 Stat. 3242.) 


685 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4311 

ï¿½ 4304. Character of service 

A personï¿½s entitlement to the benefits of this chapter by reason 
of the service of such person in one of the uniformed services 
terminates upon the occurrence of any of the following events: 

(1) A separation of such person from such uniformed service with a 
dishonorable or bad conduct discharge. 
(2) A separation of such person from such uniformed service under 
other than honorable conditions, as characterized 
pursuant to regulations prescribed by the Secretary concerned. 
(3) A dismissal of such person permitted under section 
1161(a) of title 10. 
(4) A dropping of such person from the rolls pursuant to 
section 1161(b) of title 10. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3152.) 

SUBCHAPTER II-EMPLOYMENT AND REEMPLOYMENT 
RIGHTS AND LIMITATIONS; PROHIBITIONS 


ï¿½ 4311. Discrimination against persons who serve in the uniformed 
services and acts of reprisal prohibited 

(a) A person who is a member of, applies to be a member of, 
performs, has performed, applies to perform, or has an obligation 
to perform service in a uniformed service shall not be denied initial 
employment, reemployment, retention in employment, promotion, 
or any benefit of employment by an employer on the basis of that 
membership, application for membership, performance of service, 
application for service, or obligation. 
(b) An employer may not discriminate in employment against 
or take any adverse employment action against any person because 
such person (1) has taken an action to enforce a protection afforded 
any person under this chapter, (2) has testified or otherwise made 
a statement in or in connection with any proceeding under this 
chapter, (3) has assisted or otherwise participated in an investigation 
under this chapter, or (4) has exercised a right provided for in 
this chapter. The prohibition in this subsection shall apply with 
respect to a person regardless of whether that person has performed 
service in the uniformed services. 
(c) An employer shall be considered to have engaged in actions 
prohibited- 
(1) under subsection (a), if the personï¿½s membership, application for 
membership, service, application for service, or obligation for service 
in the uniformed services is a motivating factor in the employerï¿½s 
action, unless the employer can prove 
that the action would have been taken in the absence of such 
membership, application for membership, service, application 
for service, or obligation for service; or 
(2) under subsection (b), if the personï¿½s (A) action to enforce a 
protection afforded any person under this chapter, (B) 
testimony or making of a statement in or in connection with 
any proceeding under this chapter, (C) assistance or other participation 
in an investigation under this chapter, or (D) exercise of a right 
provided for in this chapter, is a motivating factor in the employerï¿½s 
action, unless the employer can prove 

Sec. 4312 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 686 

that the action would have been taken in the absence of such 
personï¿½s enforcement action, testimony, statement, assistance, 
participation, or exercise of a right. 

(d) The prohibitions in subsections (a) and (b) shall apply to 
any position of employment, including a position that is described 
in section 4312(d)(1)(C) of this title. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3153; 
amended Pub. L. 
104-275, title III, Sec. 311(3), Oct. 9, 1996, 110 Stat. 3334.) 

ï¿½ 4312. Reemployment rights of persons who serve in the 
uniformed services 

(a) Subject to subsections (b), (c), and (d) and to section 4304, 
any person whose absence from a position of employment is necessitated 
by reason of service in the uniformed services shall be entitled to the 
reemployment rights and benefits and other employment benefits of this 
chapter if- 
(1) the person (or an appropriate officer of the uniformed 
service in which such service is performed) has given advance 
written or verbal notice of such service to such personï¿½s employer; 
(2) the cumulative length of the absence and of all previous absences 
from a position of employment with that employer by reason of service 
in the uniformed services does not 
exceed five years; and 
(3) except as provided in subsection (f), the person reports 
to, or submits an application for reemployment to, such employer in 
accordance with the provisions of subsection (e). 
(b) No notice is required under subsection (a)(1) if the giving 
of such notice is precluded by military necessity or, under all of the 
relevant circumstances, the giving of such notice is otherwise 
impossible or unreasonable. A determination of military necessity for 
the purposes of this subsection shall be made pursuant to regulations 
prescribed by the Secretary of Defense and shall not be subject to 
judicial review. 
(c) Subsection (a) shall apply to a person who is absent from 
a position of employment by reason of service in the uniformed 
services if such personï¿½s cumulative period of service in the uniformed 
services, with respect to the employer relationship for 
which a person seeks reemployment, does not exceed five years, except 
that any such period of service shall not include any service- 
(1) that is required, beyond five years, to complete an initial period 
of obligated service; 
(2) during which such person was unable to obtain orders 
releasing such person from a period of service in the uniformed 
services before the expiration of such five-year period and such 
inability was through no fault of such person; 
(3) performed as required pursuant to section 10147 of title 
10, under section 502(a) or 503 of title 32, or to fulfill additional 
training requirements determined and certified in writing by the 
Secretary concerned, to be necessary for professional 
development, or for completion of skill training or retraining; 
or 
(4) performed by a member of a uniformed service who is- 

687 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4312 

(A) ordered to or retained on active duty under section 
688, 12301(a), 12301(g), 12302, 12304, or 12305 of title 10 
or under section 331, 332, 359, 360, 367, or 712 of title 14; 
(B) ordered to or retained on active duty (other than 
for training) under any provision of law because of a war 
or national emergency declared by the President or the 
Congress, as determined by the Secretary concerned; 
(C) ordered to active duty (other than for training) in 
support, as determined by the Secretary concerned, of an 
operational mission for which personnel have been ordered 
to active duty under section 12304 of title 10; 
(D) ordered to active duty in support, as determined 
by the Secretary concerned, of a critical mission or requirement of the 
uniformed services; or 
(E) called into Federal service as a member of the National Guard under 
chapter 15 of title 10 or under section 
12406 of title 10. 
(d)(1) An employer is not required to reemploy a person under 
this chapter if- 

(A) the employerï¿½s circumstances have so changed as to 
make such reemployment impossible or unreasonable; 
(B) in the case of a person entitled to reemployment under 
subsection (a)(3), (a)(4), or (b)(2)(B) of section 4313, such employment 
would impose an undue hardship on the employer; or 
(C) the employment from which the person leaves to serve 
in the uniformed services is for a brief, nonrecurrent period 
and there is no reasonable expectation that such employment 
will continue indefinitely or for a significant period. 
(2) In any proceeding involving an issue of whether- 
(A) any reemployment referred to in paragraph (1) is impossible or 
unreasonable because of a change in an employerï¿½s 
circumstances, 
(B) any accommodation, training, or effort referred to in 
subsection (a)(3), (a)(4), or (b)(2)(B) of section 4313 would impose an 
undue hardship on the employer, or 
(C) the employment referred to in paragraph (1)(C) is for 
a brief, nonrecurrent period and there is no reasonable expectation that 
such employment will continue indefinitely or for a 
significant period, 
the employer shall have the burden of proving the impossibility or 
unreasonableness, undue hardship, or the brief or nonrecurrent nature of 
the employment without a reasonable expectation of continuing 
indefinitely or for a significant period. 

(e)(1) Subject to paragraph (2), a person referred to in subsection 
(a) shall, upon the completion of a period of service in the 
uniformed services, notify the employer referred to in such subsection 
of the personï¿½s intent to return to a position of employment 
with such employer as follows: 

(A) In the case of a person whose period of service in the 
uniformed services was less than 31 days, by reporting to the 
employer- 
(i) not later than the beginning of the first full regularly scheduled 
work period on the first full calendar day 
following the completion of the period of service and the 

Sec. 4312 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 688 

expiration of eight hours after a period allowing for the 
safe transportation of the person from the place of that 
service to the personï¿½s residence; or 

(ii) as soon as possible after the expiration of the 
eight-hour period referred to in clause (i), if reporting 
within the period referred to in such clause is impossible 
or unreasonable through no fault of the person. 
(B) In the case of a person who is absent from a position 
of employment for a period of any length for the purposes of 
an examination to determine the personï¿½s fitness to perform 
service in the uniformed services, by reporting in the manner 
and time referred to in subparagraph (A). 
(C) In the case of a person whose period of service in the 
uniformed services was for more than 30 days but less than 
181 days, by submitting an application for reemployment with 
the employer not later than 14 days after the completion of the 
period of service or if submitting such application within such 
period is impossible or unreasonable through no fault of the 
person, the next first full calendar day when submission of 
such application becomes possible. 
(D) In the case of a person whose period of service in the 
uniformed services was for more than 180 days, by submitting 
an application for reemployment with the employer not later 
than 90 days after the completion of the period of service. 
(2)(A) A person who is hospitalized for, or convalescing from, 
an illness or injury incurred in, or aggravated during, the performance 
of service in the uniformed services shall, at the end of the 
period that is necessary for the person to recover from such illness 
or injury, report to the personï¿½s employer (in the case of a person 
described in subparagraph (A) or (B) of paragraph (1)) or submit 
an application for reemployment with such employer (in the case 
of a person described in subparagraph (C) or (D) of such paragraph). 
Except as provided in subparagraph (B), such period of recovery may 
not exceed two years. 

(B) Such two-year period shall be extended by the minimum 
time required to accommodate the circumstances beyond such personï¿½s 
control which make reporting within the period specified in 
subparagraph (A) impossible or unreasonable. 
(3) A person who fails to report or apply for employment or 
reemployment within the appropriate period specified in this subsection 
shall not automatically forfeit such personï¿½s entitlement to 
the rights and benefits referred to in subsection (a) but shall be 
subject to the conduct rules, established policy, and general practices 
of the employer pertaining to explanations and discipline with 
respect to absence from scheduled work. 
(f)(1) A person who submits an application for reemployment in 
accordance with subparagraph (C) or (D) of subsection (e)(1) or 
subsection (e)(2) shall provide to the personï¿½s employer (upon the 
request of such employer) documentation to establish that- 

(A) the personï¿½s application is timely; 
(B) the person has not exceeded the service limitations set 
forth in subsection (a)(2) (except as permitted under subsection 
(c)); and 

689 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4313 

(C) the personï¿½s entitlement to the benefits under this 
chapter has not been terminated pursuant to section 4304. 
(2) Documentation of any matter referred to in paragraph (1) 
that satisfies regulations prescribed by the Secretary shall satisfy 
the documentation requirements in such paragraph. 
(3)(A) Except as provided in subparagraph (B), the failure of a 
person to provide documentation that satisfies regulations prescribed 
pursuant to paragraph (2) shall not be a basis for denying 
reemployment in accordance with the provisions of this chapter if 
the failure occurs because such documentation does not exist or is 
not readily available at the time of the request of the employer. If, 
after such reemployment, documentation becomes available that 
establishes that such person does not meet one or more of the 
requirements referred to in subparagraphs (A), (B), and (C) of 
paragraph (1), the employer of such person may terminate the employment 
of the person and the provision of any rights or benefits afforded the 
person under this chapter. 

(B) An employer who reemploys a person absent from a position of 
employment for more than 90 days may require that the 
person provide the employer with the documentation referred to in 
subparagraph (A) before beginning to treat the person as not having 
incurred a break in service for pension purposes under section 
4318(a)(2)(A). 
(4) An employer may not delay or attempt to defeat a reemployment 
obligation by demanding documentation that does not 
then exist or is not then readily available. 
(g) The right of a person to reemployment under this section 
shall not entitle such person to retention, preference, or displacement 
rights over any person with a superior claim under the provisions of 
title 5, United States Code, relating to veterans and other 
preference eligibles. 
(h) In any determination of a personï¿½s entitlement to protection 
under this chapter, the timing, frequency, and duration of the personï¿½s 
training or service, or the nature of such training or service 
(including voluntary service) in the uniformed services, shall not be 
a basis for denying protection of this chapter if the service does not 
exceed the limitations set forth in subsection (c) and the notice 
requirements established in subsection (a)(1) and the notification 
requirements established in subsection (e) are met. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3153; 
amended Pub. L. 
104-275, title III, Sec. 311(4), Oct. 9, 1996, 110 Stat. 3334.) 

ï¿½ 4313. Reemployment positions 

(a) Subject to subsection (b) (in the case of any employee) and 
sections 4314 and 4315 (in the case of an employee of the Federal 
Government), a person entitled to reemployment under section 
4312, upon completion of a period of service in the uniformed services, 
shall be promptly reemployed in a position of employment in 
accordance with the following order of priority: 
(1) Except as provided in paragraphs (3) and (4), in the 
case of a person whose period of service in the uniformed services was 
for less than 91 days- 
(A) in the position of employment in which the person 
would have been employed if the continuous employment 

Sec. 4313 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 690 

of such person with the employer had not been interrupted 
by such service, the duties of which the person is qualified 
to perform; or 

(B) in the position of employment in which the person 
was employed on the date of the commencement of the 
service in the uniformed services, only if the person is not 
qualified to perform the duties of the position referred to 
in subparagraph (A) after reasonable efforts by the employer to qualify 
the person. 
(2) Except as provided in paragraphs (3) and (4), in the 
case of a person whose period of service in the uniformed services was 
for more than 90 days- 
(A) in the position of employment in which the person 
would have been employed if the continuous employment 
of such person with the employer had not been interrupted 
by such service, or a position of like seniority, status and 
pay, the duties of which the person is qualified to perform; 
or 
(B) in the position of employment in which the person 
was employed on the date of the commencement of the 
service in the uniformed services, or a position of like seniority, 
status and pay, the duties of which the person is 
qualified to perform, only if the person is not qualified to 
perform the duties of a position referred to in subparagraph (A) after 
reasonable efforts by the employer to qualify the person. 
(3) In the case of a person who has a disability incurred 
in, or aggravated during, such service, and who (after reasonable 
efforts by the employer to accommodate the disability) is 
not qualified due to such disability to be employed in the position of 
employment in which the person would have been employed if the 
continuous employment of such person with the 
employer had not been interrupted by such service- 
(A) in any other position which is equivalent in seniority, status, and 
pay, the duties of which the person is 
qualified to perform or would become qualified to perform 
with reasonable efforts by the employer; or 
(B) if not employed under subparagraph (A), in a position which is the 
nearest approximation to a position referred to in subparagraph (A) in 
terms of seniority, status, 
and pay consistent with circumstances of such personï¿½s 
case. 
(4) In the case of a person who (A) is not qualified to be 
employed in (i) the position of employment in which the person 
would have been employed if the continuous employment of 
such person with the employer had not been interrupted by 
such service, or (ii) in the position of employment in which 
such person was employed on the date of the commencement 
of the service in the uniformed services for any reason (other 
than disability incurred in, or aggravated during, service in the 
uniformed services), and (B) cannot become qualified with reasonable 
efforts by the employer, in any other position which is 
the nearest approximation to a position referred to first in 

691 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4314 

clause (A)(i) and then in clause (A)(ii) which such person is 

qualified to perform, with full seniority. 

(b)(1) If two or more persons are entitled to reemployment 
under section 4312 in the same position of employment and more 
than one of them has reported for such reemployment, the person 
who left the position first shall have the prior right to reemployment 
in that position. 

(2) Any person entitled to reemployment under section 4312 
who is not reemployed in a position of employment by reason of 
paragraph (1) shall be entitled to be reemployed as follows: 
(A) Except as provided in subparagraph (B), in any other 
position of employment referred to in subsection (a)(1) or (a)(2), 
as the case may be (in the order of priority set out in the applicable 
subsection), that provides a similar status and pay to a 
position of employment referred to in paragraph (1) of this subsection, 
consistent with the circumstances of such personï¿½s 
case, with full seniority. 
(B) In the case of a person who has a disability incurred 
in, or aggravated during, a period of service in the uniformed 
services that requires reasonable efforts by the employer for 
the person to be able to perform the duties of the position of 
employment, in any other position referred to in subsection 
(a)(3) (in the order of priority set out in that subsection) that 
provides a similar status and pay to a position referred to in 
paragraph (1) of this subsection, consistent with circumstances 
of such personï¿½s case, with full seniority. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3157; 
amended Pub. L. 
104-275, title III, Sec. 311(5), Oct. 9, 1996, 110 Stat. 3335.) 

ï¿½ 4314. Reemployment by the Federal Government 

(a) Except as provided in subsections (b), (c), and (d), if a person 
is entitled to reemployment by the Federal Government under 
section 4312, such person shall be reemployed in a position of 
employment as described in section 4313. 
(b)(1) If the Director of the Office of Personnel Management 
makes a determination described in paragraph (2) with respect to 
a person who was employed by a Federal executive agency at the 
time the person entered the service from which the person seeks 
reemployment under this section, the Director shall- 

(A) identify a position of like seniority, status, and pay at 
another Federal executive agency that satisfies the requirements of 
section 4313 and for which the person is qualified; 
and 
(B) ensure that the person is offered such position. 
(2) The Director shall carry out the duties referred to in 
subparagraphs (A) and (B) of paragraph (1) if the Director determines 
that- 
(A) the Federal executive agency that employed the person 
referred to in such paragraph no longer exists and the functions of 
such agency have not been transferred to another Federal executive 
agency; or 
(B) it is impossible or unreasonable for the agency to reemploy the 
person. 

Sec. 4315 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 692 

(c) If the employer of a person described in subsection (a) was, 
at the time such person entered the service from which such person 
seeks reemployment under this section, a part of the judicial 
branch or the legislative branch of the Federal Government, and 
such employer determines that it is impossible or unreasonable for 
such employer to reemploy such person, such person shall, upon 
application to the Director of the Office of Personnel Management, 
be ensured an offer of employment in an alternative position in a 
Federal executive agency on the basis described in subsection (b). 
(d) If the adjutant general of a State determines that it is impossible 
or unreasonable to reemploy a person who was a National 
Guard technician employed under section 709 of title 32, such person 
shall, upon application to the Director of the Office of Personnel 
Management, be ensured an offer of employment in an alternative position 
in a Federal executive agency on the basis described in subsection (b). 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3158.) 

ï¿½ 4315. Reemployment by certain Federal agencies 

(a) The head of each agency referred to in section 
2302(a)(2)(C)(ii) of title 5 shall prescribe procedures for ensuring 
that the rights under this chapter apply to the employees of such 
agency. 
(b) In prescribing procedures under subsection (a), the head of 
an agency referred to in that subsection shall ensure, to the maximum 
extent practicable, that the procedures of the agency for reemploying 
persons who serve in the uniformed services provide for 
the reemployment of such persons in the agency in a manner similar to 
the manner of reemployment described in section 4313. 
(c)(1) The procedures prescribed under subsection (a) shall designate an 
official at the agency who shall determine whether or not 
the reemployment of a person referred to in subsection (b) by the 
agency is impossible or unreasonable. 

(2) Upon making a determination that the reemployment by 
the agency of a person referred to in subsection (b) is impossible 
or unreasonable, the official referred to in paragraph (1) shall notify 
the person and the Director of the Office of Personnel Management of 
such determination. 
(3) A determination pursuant to this subsection shall not be 
subject to judicial review. 
(4) The head of each agency referred to in subsection (a) shall 
submit to the Select Committee on Intelligence and the Committee 
on Veteransï¿½ Affairs of the Senate and the Permanent Select Committee 
on Intelligence and the Committee on Veteransï¿½ Affairs of 
the House of Representatives on an annual basis a report on the 
number of persons whose reemployment with the agency was determined 
under this subsection to be impossible or unreasonable during the year 
preceding the report, including the reason for each 
such determination. 
(d)(1) Except as provided in this section, nothing in this section, 
section 4313, or section 4325 shall be construed to exempt any 
agency referred to in subsection (a) from compliance with any other 
substantive provision of this chapter. 

(2) This section may not be construed- 

693 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4316 

(A) as prohibiting an employee of an agency referred to in 
subsection (a) from seeking information from the Secretary regarding 
assistance in seeking reemployment from the agency 
under this chapter, alternative employment in the Federal 
Government under this chapter, or information relating to the 
rights and obligations of employee and Federal agencies under 
this chapter; or 
(B) as prohibiting such an agency from voluntarily cooperating with or 
seeking assistance in or of clarification from the 
Secretary or the Director of the Office of Personnel Management of any 
matter arising under this chapter. 
(e) The Director of the Office of Personnel Management shall 
ensure the offer of employment to a person in a position in a Federal 
executive agency on the basis described in subsection (b) if- 
(1) the person was an employee of an agency referred to 
in section 2302(a)(2)(C)(ii) of title 5 at the time the person entered 
the service from which the person seeks reemployment 
under this section; 
(2) the appropriate officer of the agency determines under 
subsection (c) that reemployment of the person by the agency 
is impossible or unreasonable; and 
(3) the person submits an application to the Director for an 
offer of employment under this subsection. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3159.) 

ï¿½ 4316. Rights, benefits, and obligations of persons absent 
from employment for service in a uniformed service 

(a) A person who is reemployed under this chapter is entitled 
to the seniority and other rights and benefits determined by seniority 
that the person had on the date of the commencement of service 
in the uniformed services plus the additional seniority and rights 
and benefits that such person would have attained if the person 
had remained continuously employed. 
(b)(1) Subject to paragraphs (2) through (6), a person who is 
absent from a position of employment by reason of service in the 
uniformed services shall be- 

(A) deemed to be on furlough or leave of absence while performing such 
service; and 
(B) entitled to such other rights and benefits not determined by 
seniority as are generally provided by the employer 
of the person to employees having similar seniority, status, and 
pay who are on furlough or leave of absence under a contract, 
agreement, policy, practice, or plan in effect at the commencement of 
such service or established while such person performs 
such service. 
(2)(A) Subject to subparagraph (B), a person who- 
(i) is absent from a position of employment by reason of 
service in the uniformed services, and 
(ii) knowingly provides written notice of intent not to return to a 
position of employment after service in the uniformed 
service, 
is not entitled to rights and benefits under paragraph (1)(B). 

Sec. 4317 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 694 

(B) For the purposes of subparagraph (A), the employer shall 
have the burden of proving that a person knowingly provided clear 
written notice of intent not to return to a position of employment 
after service in the uniformed service and, in doing so, was aware 
of the specific rights and benefits to be lost under subparagraph 
(A). 
(3) A person deemed to be on furlough or leave of absence 
under this subsection while serving in the uniformed services shall 
not be entitled under this subsection to any benefits to which the 
person would not otherwise be entitled if the person had remained 
continuously employed. 
(4) Such person may be required to pay the employee cost, if 
any, of any funded benefit continued pursuant to paragraph (1) to 
the extent other employees on furlough or leave of absence are so 
required. 
(5) The entitlement of a person to coverage under a health plan 
is provided for under section 4317. 
(6) The entitlement of a person to a right or benefit under an 
employee pension benefit plan is provided for under section 4318. 
(c) A person who is reemployed by an employer under this 
chapter shall not be discharged from such employment, except for 
cause- 
(1) within one year after the date of such reemployment, 
if the personï¿½s period of service before the reemployment was 
more than 180 days; or 
(2) within 180 days after the date of such reemployment, 
if the personï¿½s period of service before the reemployment was 
more than 30 days but less than 181 days. 
(d) Any person whose employment with an employer is interrupted by a 
period of service in the uniformed services shall be permitted, upon 
request of that person, to use during such period of 
service any vacation, annual, or similar leave with pay accrued by 
the person before the commencement of such service. No employer 
may require any such person to use vacation, annual, or similar 
leave during such period of service. 
(e)(1) An employer shall grant an employee who is a member 
of a reserve component an authorized leave of absence from a position 
of employment to allow that employee to perform funeral honors duty as 
authorized by section 12503 of title 10 or section 115 
of title 32. 

(2) For purposes of section 4312(e)(1) of this title, an employee 
who takes an authorized leave of absence under paragraph (1) is 
deemed to have notified the employer of the employeeï¿½s intent to 
return to such position of employment. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3160; 
amended Pub. L. 
104-275, title III, Sec. 311(6), Oct. 9, 1996, 110 Stat. 3335; Pub. L. 
106-419, title 
III, Sec. 323(b), Nov. 1, 2000, 114 Stat. 1855.) 

ï¿½ 4317. Health plans 

(a)(1) In any case in which a person (or the personï¿½s dependents) has 
coverage under a health plan in connection with the personï¿½s position 
of employment, including a group health plan (as defined in section 
607(1) of the Employee Retirement Income Security 
Act of 1974), and such person is absent from such position of em


695 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4317 

ployment by reason of service in the uniformed services, or such 
person becomes eligible for medical and dental care under chapter 
55 of title 10 by reason of subsection (d) of section 1074 of that 
title, the plan shall provide that the person may elect to continue 
such coverage as provided in this subsection. The maximum period 
of coverage of a person and the personï¿½s dependents under such an 
election shall be the lesser of- 

(A) the 24-month period beginning on the date on which 
the personï¿½s absence begins; or 
(B) the day after the date on which the person fails to 
apply for or return to a position of employment, as determined 
under section 4312(e). 
(2) A person who elects to continue health-plan coverage under 
this paragraph may be required to pay not more than 102 percent 
of the full premium under the plan (determined in the same manner as 
the applicable premium under section 4980B(f)(4) of the Internal 
Revenue Code of 1986) associated with such coverage for the 
employerï¿½s other employees, except that in the case of a person who 
performs service in the uniformed services for less than 31 days, 
such person may not be required to pay more than the employee 
share, if any, for such coverage. 
(3) In the case of a health plan that is a multiemployer plan, 
as defined in section 3(37) of the Employee Retirement Income Security 
Act of 1974, any liability under the plan for employer contributions
and benefits arising under this paragraph shall be allocated- 
(A) by the plan in such manner as the plan sponsor shall 
provide; or 
(B) if the sponsor does not provide- 
(i) to the last employer employing the person before 
the period served by the person in the uniformed services, 
or 
(ii) if such last employer is no longer functional, to the 
plan. 
(b)(1) Except as provided in paragraph (2), in the case of a person 
whose coverage under a health plan was terminated by reason 
of service in the uniformed services, or by reason of the personï¿½s 
having become eligible for medical and dental care under chapter 
55 of title 10 by reason of subsection (d) of section 1074 of that 
title, an exclusion or waiting period may not be imposed in connection 
with the reinstatement of such coverage upon reemployment 
under this chapter if an exclusion or waiting period would not have 
been imposed under a health plan had coverage of such person by 
such plan not been terminated as a result of such service or 
eligibility. This paragraph applies to the person who is reemployed and 
to any individual who is covered by such plan by reason of the 
reinstatement of the coverage of such person. 

(2) Paragraph (1) shall not apply to the coverage of any illness 
or injury determined by the Secretary of Veterans Affairs to have 
been incurred in, or aggravated during, performance of service in 
the uniformed services. 
(3) In the case of a person whose coverage under a health plan 
is terminated by reason of the person having become eligible for 
medical and dental care under chapter 55 of title 10 by reason of 

Sec. 4318 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 696 

subsection (d) of section 1074 of that title but who subsequently 
does not commence a period of active duty under the order to active 
duty that established such eligibility because the order is canceled 
before such active duty commences, the provisions of paragraph (1) 
relating to any exclusion or waiting period in connection with the 
reinstatement of coverage under a health plan shall apply to such 
personï¿½s continued employment, upon the termination of such eligibility 
for medical and dental care under chapter 55 of title 10 that 
is incident to the cancellation of such order, in the same manner 
as if the person had become reemployed upon such termination of 
eligibility. 

(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3161; 
amended Pub. L. 104-275, title III, Sec. 311(7), Oct. 9, 1996, 110 
Stat. 3335; Pub. L. 108-454, title II, Sec. 201(a), Dec. 10, 2004, 118 
Stat. 3605; Pub. L. 109-233, title III, Sec. 303, 
June 15, 2006, 120 Stat. 406.) 

ï¿½ 4318. Employee pension benefit plans 

(a)(1)(A) Except as provided in subparagraph (B), in the case 
of a right provided pursuant to an employee pension benefit plan 
(including those described in sections 3(2) and 3(33) of the Employee 
Retirement Income Security Act of 1974) or a right provided 
under any Federal or State law governing pension benefits for 
governmental employees, the right to pension benefits of a person 
reemployed under this chapter shall be determined under this section. 

(B) In the case of benefits under the Thrift Savings Plan, the 
rights of a person reemployed under this chapter shall be those 
rights provided in section 8432b of title 5. The first sentence of this 
subparagraph shall not be construed to affect any other right or 
benefit under this chapter. 
(2)(A) A person reemployed under this chapter shall be treated 
as not having incurred a break in service with the employer or 
employers maintaining the plan by reason of such personï¿½s period or 
periods of service in the uniformed services. 

(B) Each period served by a person in the uniformed services 
shall, upon reemployment under this chapter, be deemed to constitute 
service with the employer or employers maintaining the 
plan for the purpose of determining the nonforfeitability of the personï¿½s 
accrued benefits and for the purpose of determining the accrual of 
benefits under the plan. 
(b)(1) An employer reemploying a person under this chapter 
shall, with respect to a period of service described in subsection 
(a)(2)(B), be liable to an employee pension benefit plan for funding 
any obligation of the plan to provide the benefits described in 
subsection (a)(2) and shall allocate the amount of any employer 
contribution for the person in the same manner and to the same extent 
the allocation occurs for other employees during the period of 
service. For purposes of determining the amount of such liability 
and any obligation of the plan, earnings and forfeitures shall not 
be included. For purposes of determining the amount of such liability 
and for purposes of section 515 of the Employee Retirement Income 
Security Act of 1974 or any similar Federal or State law governing 
pension benefits for governmental employees, service in the 
uniformed services that is deemed under subsection (a) to be serv


697 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4319 

ice with the employer shall be deemed to be service with the employer 
under the terms of the plan or any applicable collective bargaining 
agreement. In the case of a multiemployer plan, as defined 
in section 3(37) of the Employee Retirement Income Security Act 
of 1974, any liability of the plan described in this paragraph shall 
be allocated- 

(A) by the plan in such manner as the sponsor maintaining 
the plan shall provide; or 
(B) if the sponsor does not provide- 
(i) to the last employer employing the person before 
the period served by the person in the uniformed services, 
or 
(ii) if such last employer is no longer functional, to the 
plan. 
(2) A person reemployed under this chapter shall be entitled to 
accrued benefits pursuant to subsection (a) that are contingent on 
the making of, or derived from, employee contributions or elective 
deferrals (as defined in section 402(g)(3) of the Internal Revenue 
Code of 1986) only to the extent the person makes payment to the 
plan with respect to such contributions or deferrals. No such payment 
may exceed the amount the person would have been permitted or required 
to contribute had the person remained continuously employed by the 
employer throughout the period of service 
described in subsection (a)(2)(B). Any payment to the plan described in 
this paragraph shall be made during the period beginning with the date 
of reemployment and whose duration is three 
times the period of the personï¿½s service in the uniformed services, 
such payment period not to exceed five years. 
(3) For purposes of computing an employerï¿½s liability under 
paragraph (1) or the employeeï¿½s contributions under paragraph (2), 
the employeeï¿½s compensation during the period of service described 
in subsection (a)(2)(B) shall be computed- 
(A) at the rate the employee would have received but for 
the period of service described in subsection (a)(2)(B), or 
(B) in the case that the determination of such rate is not 
reasonably certain, on the basis of the employeeï¿½s average rate 
of compensation during the 12-month period immediately preceding such 
period (or, if shorter, the period of employment immediately preceding 
such period). 
(c) Any employer who reemploys a person under this chapter 
and who is an employer contributing to a multiemployer plan, as 
defined in section 3(37) of the Employee Retirement Income Security Act 
of 1974, under which benefits are or may be payable to 
such person by reason of the obligations set forth in this chapter, 
shall, within 30 days after the date of such reemployment, provide 
information, in writing, of such reemployment to the administrator 
of such plan. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3162; 
amended Pub. L. 
104-275, title III, Sec. 311(8), Oct. 9, 1996, 110 Stat. 3335.) 

ï¿½ 4319. Employment and reemployment rights in foreign 
countries 

(a) LIABILITY OF CONTROLLING UNITED STATES EMPLOYER OF 
FOREIGN ENTITY.-If an employer controls an entity that is incor

Sec. 4321 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 698 

porated or otherwise organized in a foreign country, any denial of 
employment, reemployment, or benefit by such entity shall be presumed 
to be by such employer. 

(b) INAPPLICABILITY TO FOREIGN EMPLOYER.-This subchapter 
does not apply to foreign operations of an employer that is a foreign 
person not controlled by an United States employer. 
(c) DETERMINATION OF CONTROLLING EMPLOYER.-For the purpose of this 
section, the determination of whether an employer controls an entity 
shall be based upon the interrelations of operations, 
common management, centralized control of labor relations, and 
common ownership or financial control of the employer and the entity. 
(d) EXEMPTION.-Notwithstanding any other provision of this 
subchapter, an employer, or an entity controlled by an employer, 
shall be exempt from compliance with any of sections 4311 through 
4318 of this title with respect to an employee in a workplace in a 
foreign country, if compliance with that section would cause such 
employer, or such entity controlled by an employer, to violate the 
law of the foreign country in which the workplace is located. 
(Added Pub. L. 105-368, title II, Sec. 212(b)(1), Nov. 11, 1998, 112 
Stat. 3331.) 

SUBCHAPTER III-PROCEDURES FOR ASSISTANCE, 
ENFORCEMENT, AND INVESTIGATION 


ï¿½ 4321. Assistance in obtaining reemployment or other employment rights 
or benefits 

The Secretary (through the Veteransï¿½ Employment and Training Service) 
shall provide assistance to any person with respect to 
the employment and reemployment rights and benefits to which 
such person is entitled under this chapter. In providing such 
assistance, the Secretary may request the assistance of existing Federal 
and State agencies engaged in similar or related activities and utilize 
the assistance of volunteers. 

(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3164.) 

ï¿½ 4322. Enforcement of employment or reemployment rights 

(a) A person who claims that- 
(1) such person is entitled under this chapter to employment or 
reemployment rights or benefits with respect to employment by an 
employer; and 
(2)(A) such employer has failed or refused, or is about to 
fail or refuse, to comply with the provisions of this chapter; or 

(B) in the case that the employer is a Federal executive 
agency, such employer or the Office of Personnel Management 
has failed or refused, or is about to fail or refuse, to comply 
with the provisions of this chapter, 
may file a complaint with the Secretary in accordance with subsection 
(b), and the Secretary shall investigate such complaint. 

(b) Such complaint shall be in writing, be in such form as the 
Secretary may prescribe, include the name and address of the employer 
against whom the complaint is filed, and contain a summary 
of the allegations that form the basis for the complaint. 
(c)(1) Not later than five days after the Secretary receives a 
complaint submitted by a person under subsection (a), the Sec


699 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4323 

retary shall notify such person in writing of his or her rights with 
respect to such complaint under this section and section 4323 or 
4324, as the case may be. 

(2) The Secretary shall, upon request, provide technical assistance 
to a potential claimant with respect to a complaint under this 
subsection, and when appropriate, to such claimantï¿½s employer. 
(d) The Secretary shall investigate each complaint submitted 
pursuant to subsection (a). If the Secretary determines as a result 
of the investigation that the action alleged in such complaint 
occurred, the Secretary shall attempt to resolve the complaint by 
making reasonable efforts to ensure that the person or entity 
named in the complaint complies with the provisions of this chapter. 
(e) If the efforts of the Secretary with respect to any complaint 
filed under subsection (a) do not resolve the complaint, the Secretary 
shall notify the person who submitted the complaint in writing of- 
(1) the results of the Secretaryï¿½s investigation; and 
(2) the complainantï¿½s entitlement to proceed under the enforcement of 
rights provisions provided under section 4323 (in 
the case of a person submitting a complaint against a State or 
private employer) or section 4324 (in the case of a person submitting a 
complaint against a Federal executive agency or the 
Office of Personnel Management). 
(f) Any action required by subsections (d) and (e) with respect 
to a complaint submitted by a person to the Secretary under subsection 
(a) shall be completed by the Secretary not later than 90 
days after receipt of such complaint. 
(g) This subchapter does not apply to any action relating to 
benefits to be provided under the Thrift Savings Plan under title 
5. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3164; 
amended Pub. L. 104-275, title III, Sec. 311(9), Oct. 9, 1996, 110 
Stat. 3335; Pub. L. 110-389, title 
III, Sec. 311(a)-(c), Oct. 10, 2008, 122 Stat. 4162.) 

ï¿½ 4323. Enforcement of rights with respect to a State or private 
employer 

(a) ACTION FOR RELIEF.-(1) A person who receives from the 
Secretary a notification pursuant to section 4322(e) of this title of 
an unsuccessful effort to resolve a complaint relating to a State (as 
an employer) or a private employer may request that the Secretary 
refer the complaint to the Attorney General. Not later than 60 days 
after the Secretary receives such a request with respect to a 
complaint, the Secretary shall refer the complaint to the Attorney 
General. If the Attorney General is reasonably satisfied that the person 
on whose behalf the complaint is referred is entitled to the rights 
or benefits sought, the Attorney General may appear on behalf of, 
and act as attorney for, the person on whose behalf the complaint 
is submitted and commence an action for relief under this chapter 
for such person. In the case of such an action against a State (as 
an employer), the action shall be brought in the name of the United 
States as the plaintiff in the action. 

Sec. 4323 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 700 

(2) Not later than 60 days after the date the Attorney General 
receives a referral under paragraph (1), the Attorney General 
shall- 
(A) make a decision whether to appear on behalf of, and 
act as attorney for, the person on whose behalf the complaint 
is submitted; and 
(B) notify such person in writing of such decision. 
(3) A person may commence an action for relief with respect 
to a complaint against a State (as an employer) or a private employer 
if the person- 
(A) has chosen not to apply to the Secretary for assistance 
under section 4322(a) of this title; 
(B) has chosen not to request that the Secretary refer the 
complaint to the Attorney General under paragraph (1); or 
(C) has been refused representation by the Attorney General with respect 
to the complaint under such paragraph. 
(b) JURISDICTION.-(1) In the case of an action against a State 
(as an employer) or a private employer commenced by the United 
States, the district courts of the United States shall have jurisdiction 
over the action. 
(2) In the case of an action against a State (as an employer) 
by a person, the action may be brought in a State court of competent 
jurisdiction in accordance with the laws of the State. 
(3) In the case of an action against a private employer by a 
person, the district courts of the United States shall have jurisdiction 
of the action. 
(c) VENUE.-(1) In the case of an action by the United States 
against a State (as an employer), the action may proceed in the 
United States district court for any district in which the State 
exercises any authority or carries out any function. 
(2) In the case of an action against a private employer, the action may 
proceed in the United States district court for any district 
in which the private employer of the person maintains a place of 
business. 
(d) REMEDIES.-(1) In any action under this section, the court 
may award relief as follows: 
(A) The court may require the employer to comply with the 
provisions of this chapter. 
(B) The court may require the employer to compensate the 
person for any loss of wages or benefits suffered by reason of 
such employerï¿½s failure to comply with the provisions of this 
chapter. 
(C) The court may require the employer to pay the person 
an amount equal to the amount referred to in subparagraph 
(B) as liquidated damages, if the court determines that the employerï¿½s 
failure to comply with the provisions of this chapter 
was willful. 
(2)(A) Any compensation awarded under subparagraph (B) or 
(C) of paragraph (1) shall be in addition to, and shall not diminish, 
any of the other rights and benefits provided for under this chapter. 
(B) In the case of an action commenced in the name of the 
United States for which the relief includes compensation awarded 
under subparagraph (B) or (C) of paragraph (1), such compensation 

701 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4324 

shall be held in a special deposit account and shall be paid, on 
order of the Attorney General, directly to the person. If the 
compensation is not paid to the person because of inability to do so 
within a period of 3 years, the compensation shall be covered into 
the Treasury of the United States as miscellaneous receipts. 

(3) A State shall be subject to the same remedies, including 
prejudgment interest, as may be imposed upon any private employer under 
this section. 
(e) EQUITY POWERS.-The court shall use, in any case in which 
the court determines it is appropriate, its full equity powers, 
including temporary or permanent injunctions, temporary restraining 
orders, and contempt orders, to vindicate fully the rights or benefits 
of persons under this chapter. 
(f) STANDING.-An action under this chapter may be initiated 
only by a person claiming rights or benefits under this chapter 
under subsection (a) or by the United States under subsection 
(a)(1). 
(g) RESPONDENT.-In any action under this chapter, only an 
employer or a potential employer, as the case may be, shall be a 
necessary party respondent. 
(h) FEES, COURT COSTS.-(1) No fees or court costs may be 
charged or taxed against any person claiming rights under this 
chapter. 
(2) In any action or proceeding to enforce a provision of this 
chapter by a person under subsection (a)(2) who obtained private 
counsel for such action or proceeding, the court may award any 
such person who prevails in such action or proceeding reasonable 
attorney fees, expert witness fees, and other litigation expenses. 
(i) DEFINITION.-In this section, the term ï¿½ï¿½private employerï¿½ï¿½ 
includes a political subdivision of a State. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3165; 
amended Pub. L. 104-275, title III, Sec. 311(10), Oct. 9, 1996, 110 
Stat. 3335; Pub. L. 105-368, title II, Sec. 211(a), Nov. 11, 1998, 
112 Stat. 3329; Pub. L. 110-389, title III, Secs. 311(d)(1), (e)(1), 
(f)(3), 315, Oct. 10, 2008, 122 Stat. 4162-4164, 4167.) 

ï¿½ 4324. Enforcement of rights with respect to Federal executive 
agencies 

(a)(1) A person who receives from the Secretary a notification 
pursuant to section 4322(e) may request that the Secretary refer 
the complaint for litigation before the Merit Systems Protection 
Board. Not later than 60 days after the date the Secretary receives 
such a request, the Secretary shall refer the complaint to the Office 
of Special Counsel established by section 1211 of title 5. 

(2)(A) If the Special Counsel is reasonably satisfied that the 
person on whose behalf a complaint is referred under paragraph (1) 
is entitled to the rights or benefits sought, the Special Counsel 
(upon the request of the person submitting the complaint) may appear 
on behalf of, and act as attorney for, the person and initiate 
an action regarding such complaint before the Merit Systems Protection 
Board. 

(B) Not later than 60 days after the date the Special Counsel 
receives a referral under paragraph (1), the Special Counsel shall- 

Sec. 4324 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 702 

(i) make a decision whether to represent a person before 
the Merit Systems Protection Board under subparagraph (A); 
and 
(ii) notify such person in writing of such decision. 
(b) A person may submit a complaint against a Federal executive agency 
or the Office of Personnel Management under this subchapter directly 
to the Merit Systems Protection Board if that person- 
(1) has chosen not to apply to the Secretary for assistance 
under section 4322(a); 
(2) has received a notification from the Secretary under 
section 4322(e); 
(3) has chosen not to be represented before the Board by 
the Special Counsel pursuant to subsection (a)(2)(A); or 
(4) has received a notification of a decision from the Special Counsel 
under subsection (a)(2)(B). 
(c)(1) The Merit Systems Protection Board shall adjudicate any 
complaint brought before the Board pursuant to subsection 
(a)(2)(A) or (b), without regard as to whether the complaint accrued 
before, on, or after October 13, 1994. A person who seeks a hearing 
or adjudication by submitting such a complaint under this paragraph may 
be represented at such hearing or adjudication in accordance with the 
rules of the Board. 

(2) If the Board determines that a Federal executive agency or 
the Office of Personnel Management has not complied with the provisions 
of this chapter relating to the employment or reemployment 
of a person by the agency, the Board shall enter an order requiring 
the agency or Office to comply with such provisions and to compensate 
such person for any loss of wages or benefits suffered by 
such person by reason of such lack of compliance. 
(3) Any compensation received by a person pursuant to an 
order under paragraph (2) shall be in addition to any other right 
or benefit provided for by this chapter and shall not diminish any 
such right or benefit. 
(4) If the Board determines as a result of a hearing or adjudication 
conducted pursuant to a complaint submitted by a person 
directly to the Board pursuant to subsection (b) that such person 
is entitled to an order referred to in paragraph (2), the Board may, 
in its discretion, award such person reasonable attorney fees, expert 
witness fees, and other litigation expenses. 
(d)(1) A person adversely affected or aggrieved by a final order 
or decision of the Merit Systems Protection Board under subsection 

(c) may petition the United States Court of Appeals for the Federal 
Circuit to review the final order or decision. Such petition and review 
shall be in accordance with the procedures set forth in section 
7703 of title 5. 
(2) Such person may be represented in the Federal Circuit proceeding by 
the Special Counsel unless the person was not represented by the 
Special Counsel before the Merit Systems Protection Board regarding 
such order or decision. (Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 
1994, 108 Stat. 3166; amended Pub. L. 104-275, title III, Sec. 311(11), 
Oct. 9, 1996, 110 Stat. 3336; Pub. L. 105-368, title II, Sec. 213(a), 
Nov. 11, 1998, 112 Stat. 3331; Pub. L. 110-389, title III, Sec. 
311(d)(2), (e)(2), Oct. 10, 2008, 122 Stat. 4163.) 


703 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4326 

ï¿½ 4325. Enforcement of rights with respect to certain Federal agencies 

(a) This section applies to any person who alleges that- 
(1) the reemployment of such person by an agency referred 
to in subsection (a) of section 4315 was not in accordance with 
procedures for the reemployment of such person under subsection (b) of 
such section; or 
(2) the failure of such agency to reemploy the person under 
such section was otherwise wrongful. 
(b) Any person referred to in subsection (a) may submit a claim 
relating to an allegation referred to in that subsection to the 
inspector general of the agency which is the subject of the allegation. 
The inspector general shall investigate and resolve the allegation 
pursuant to procedures prescribed by the head of the agency. 
(c) In prescribing procedures for the investigation and resolution of 
allegations under subsection (b), the head of an agency shall 
ensure, to the maximum extent practicable, that the procedures are 
similar to the procedures for investigating and resolving complaints 
utilized by the Secretary under section 4322(d). 
(d) This section may not be construed- 
(1) as prohibiting an employee of an agency referred to in 
subsection (a) from seeking information from the Secretary regarding 
assistance in seeking reemployment from the agency under this chapter 
or information relating to the rights and obligations of employees and 
Federal agencies under this chapter; 
or 
(2) as prohibiting such an agency from voluntarily cooperating with or 
seeking assistance in or of clarification from the 
Secretary or the Director of the Office of Personnel Management of any 
matter arising under this chapter. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3167; 
amended Pub. L. 
104-275, title III, Sec. 311(12), Oct. 9, 1996, 110 Stat. 3336.) 

ï¿½ 4326. Conduct of investigation; subpoenas 

(a) In carrying out any investigation under this chapter, the 
Secretaryï¿½s duly authorized representatives shall, at all reasonable 
times, have reasonable access to and the right to interview persons 
with information relevant to the investigation and shall have 
reasonable access to, for purposes of examination, and the right to 
copy and receive, any documents of any person or employer that 
the Secretary considers relevant to the investigation. 
(b) In carrying out any investigation under this chapter, the 
Secretary may require by subpoena the attendance and testimony 
of witnesses and the production of documents relating to any matter 
under investigation. In case of disobedience of the subpoena or 
contumacy and on request of the Secretary, the Attorney General 
may apply to any district court of the United States in whose 
jurisdiction such disobedience or contumacy occurs for an order 
enforcing the subpoena. 
(c) Upon application, the district courts of the United States 
shall have jurisdiction to issue writs commanding any person or 
employer to comply with the subpoena of the Secretary or to comply 
with any order of the Secretary made pursuant to a lawful in

Sec. 4327 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 704 

vestigation under this chapter and the district courts shall have 
jurisdiction to punish failure to obey a subpoena or other lawful 
order of the Secretary as a contempt of court. 

(d) Subsections (b) and (c) shall not apply to the legislative 
branch or the judicial branch of the United States. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3167; 
amended Pub. L. 
104-275, title III, Sec. 311(13), Oct. 9, 1996, 110 Stat. 3336.) 

ï¿½ 4327. Noncompliance of Federal officials with deadlines; 
inapplicability of statutes of limitations 

(a) EFFECT OF NONCOMPLIANCE OF FEDERAL OFFICIALS WITH 
DEADLINES.-(1) The inability of the Secretary, the Attorney General, 
or the Special Counsel to comply with a deadline applicable 
to such official under section 4322, 4323, or 4324 of this title- 
(A) shall not affect the authority of the Attorney General 
or the Special Counsel to represent and file an action or submit 
a complaint on behalf of a person under section 4323 or 4324 
of this title; 
(B) shall not affect the right of a person- 
(i) to commence an action under section 4323 of this 
title; 
(ii) to submit a complaint under section 4324 of this 
title; or 
(iii) to obtain any type of assistance or relief authorized by this 
chapter; 
(C) shall not deprive a Federal court, the Merit Systems 
Protection Board, or a State court of jurisdiction over an action 
or complaint filed by the Attorney General, the Special Counsel, or a 
person under section 4323 or 4324 of this title; and 
(D) shall not constitute a defense, including a statute of 
limitations period, that any employer (including a State, a private 
employer, or a Federal executive agency) or the Office of 
Personnel Management may raise in an action filed by the Attorney 
General, the Special Counsel, or a person under section 
4323 or 4324 of this title. 
(2) If the Secretary, the Attorney General, or the Special Counsel is 
unable to meet a deadline applicable to such official in section 
4322(f), 4323(a)(1), 4323(a)(2), 4324(a)(1), or 4324(a)(2)(B) of 
this title, and the person agrees to an extension of time, the 
Secretary, the Attorney General, or the Special Counsel, as the case 
may be, shall complete the required action within the additional 
period of time agreed to by the person. 
(b) INAPPLICABILITY OF STATUTES OF LIMITATIONS.-If any person seeks to 
file a complaint or claim with the Secretary, the Merit 
Systems Protection Board, or a Federal or State court under this 
chapter alleging a violation of this chapter, there shall be no limit 
on the period for filing the complaint or claim. 
(Added Pub. L. 110-389, title III, Sec. 311(f)(1), Oct. 10, 2008, 122 
Stat. 4163.) 

SUBCHAPTER IV-MISCELLANEOUS PROVISIONS 

ï¿½ 4331. Regulations 

(a) The Secretary (in consultation with the Secretary of Defense) may 
prescribe regulations implementing the provisions of 

705 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4332 

this chapter with regard to the application of this chapter to 
States, local governments, and private employers. 

(b)(1) The Director of the Office of Personnel Management (in 
consultation with the Secretary and the Secretary of Defense) may 
prescribe regulations implementing the provisions of this chapter 
with regard to the application of this chapter to Federal executive 
agencies (other than the agencies referred to in paragraph (2)) as 
employers. Such regulations shall be consistent with the regulations 
pertaining to the States as employers and private employers, 
except that employees of the Federal Government may be given 
greater or additional rights. 

(2) The following entities may prescribe regulations to carry 
out the activities of such entities under this chapter: 
(A) The Merit Systems Protection Board. 
(B) The Office of Special Counsel. 
(C) The agencies referred to in section 2302(a)(2)(C)(ii) of 
title 5. 
(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3168; 
amended Pub. L. 
109-233, title V, Sec. 503(14), June 15, 2006, 120 Stat. 417.) 

ï¿½ 4332. Reports 

(a) ANNUAL REPORT BY SECRETARY.-The Secretary shall, after 
consultation with the Attorney General and the Special Counsel referred 
to in section 4324(a)(1), transmit to Congress not later than 
July 1 each year a report on matters for the fiscal year ending in 
the year before the year in which such report is transmitted as follows: 
(1) The number of cases reviewed by the Department of 
Labor under this chapter during the fiscal year for which the 
report is made. 
(2) The number of cases reviewed by the Secretary of Defense under the 
National Committee for Employer Support of 
the Guard and Reserve of the Department of Defense during 
the fiscal year for which the report is made. 
(3) The number of cases referred to the Attorney General 
or the Special Counsel pursuant to section 4323 or 4324, respectively, 
during such fiscal year and the number of actions 
initiated by the Office of Special Counsel before the Merit Systems 
Protection Board pursuant to section 4324 during such 
fiscal year. 
(4) The number of complaints filed by the Attorney General pursuant to 
section 4323 during such fiscal year. 
(5) The number of cases reviewed by the Secretary and the 
Secretary of Defense through the National Committee for Employer Support 
of the Guard and Reserve of the Department of 
Defense that involve the same person. 
(6) With respect to the cases reported on pursuant to paragraphs (1), 
(2), (3), (4), and (5)- 
(A) the number of such cases that involve a disability-
related issue; and 
(B) the number of such cases that involve a person 
who has a service-connected disability. 
(7) The nature and status of each case reported on pursuant to 
paragraph (1), (2), (3), (4), or (5). 

Sec. 4332 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS 706 

(8) With respect to the cases reported on pursuant to paragraphs (1), 
(2), (3), (4), and (5) the number of such cases that 
involve persons with different occupations or persons seeking 
different occupations, as designated by the Standard Occupational 
Classification System. 
(9) An indication of whether there are any apparent patterns of 
violation of the provisions of this chapter, together 
with an explanation thereof. 
(10) Recommendations for administrative or legislative action that the 
Secretary, the Attorney General, or the Special 
Counsel considers necessary for the effective implementation of 
this chapter, including any action that could be taken to encourage 
mediation, before claims are filed under this chapter, 
between employers and persons seeking employment or reemployment. 
(b) QUARTERLY REPORTS.- 
(1) QUARTERLY REPORT BY SECRETARY.-Not later than 30 
days after the end of each fiscal quarter, the Secretary shall 
submit to Congress, the Secretary of Defense, the Attorney 
General, and the Special Counsel a report setting forth, for the 
previous full quarter, the following: 
(A) The number of cases for which the Secretary did 
not meet the requirements of section 4322(f) of this title. 
(B) The number of cases for which the Secretary received a request for 
a referral under paragraph (1) of section 4323(a) of this title but 
did not make such referral 
within the time period required by such paragraph. 
(2) QUARTERLY REPORT BY ATTORNEY GENERAL.-Not later 
than 30 days after the end of each fiscal quarter, the Attorney 
General shall submit to Congress, the Secretary, the Secretary 
of Defense, and the Special Counsel a report setting forth, for 
the previous full quarter, the number of cases for which the Attorney 
General received a referral under paragraph (1) of section 4323(a) of 
this title but did not meet the requirements of 
paragraph (2) of section 4323(a) of this title for such referral. 
(3) QUARTERLY REPORT BY SPECIAL COUNSEL.-Not later 
than 30 days after the end of each fiscal quarter, the Special 
Counsel shall submit to Congress, the Secretary, the Secretary 
of Defense, and the Attorney General a report setting forth, for 
the previous full quarter, the number of cases for which the 
Special Counsel received a referral under paragraph (1) of section 
4324(a) of this title but did not meet the requirements of 
paragraph (2)(B) of section 4324(a) of this title for such referral. 
(c) UNIFORM CATEGORIZATION OF DATA.-The Secretary shall 
coordinate with the Secretary of Defense, the Attorney General, 
and the Special Counsel to ensure that- 
(1) the information in the reports required by this section 
is categorized in a uniform way; and 
(2) the Secretary, the Secretary of Defense, the Attorney 
General, and the Special Counsel each have electronic access 
to the case files reviewed under this chapter by the Secretary, 
the Secretary of Defense, the Attorney General, and the Spe

707 CH. 43-VETERANSï¿½ REEMPLOYMENT RIGHTS Sec. 4335 

cial Counsel with due regard for the provisions of section 552a 
of title 5. 

(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3168; 
amended Pub. L. 108-454, title II, Sec. 202, Dec. 10, 2004, 118 Stat. 
3606; Pub. L. 110-181, div. A, title V, Sec. 595, Jan. 28, 2008, 122 
Stat. 139; Pub. L. 110-389, title III, Sec. 312(a)- 
(d), Oct. 10, 2008, 122 Stat. 4164, 4165.) 

ï¿½ 4333. Outreach 

The Secretary, the Secretary of Defense, and the Secretary of 
Veterans Affairs shall take such actions as such Secretaries determine 
are appropriate to inform persons entitled to rights and benefits under 
this chapter and employers of the rights, benefits, and 
obligations of such persons and such employers under this chapter. 

(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3169.) 

ï¿½ 4334. Notice of rights and duties 

(a) REQUIREMENT TO PROVIDE NOTICE.-Each employer shall 
provide to persons entitled to rights and benefits under this chapter a 
notice of the rights, benefits, and obligations of such persons 
and such employers under this chapter. The requirement for the 
provision of notice under this section may be met by the posting 
of the notice where employers customarily place notices for employees. 
(b) CONTENT OF NOTICE.-The Secretary shall provide to em
ployers the text of the notice to be provided under this section. 
(Added Pub. L. 108-454, title II, Sec. 203(a), Dec. 10, 2004, 118 Stat. 
3606.) 

ï¿½ 4335. Training for Federal executive agency human resources personnel 
on employment and reemployment rights and limitations 

(a) TRAINING REQUIRED.-The head of each Federal executive 
agency shall provide training for the human resources personnel of 
such agency on the following: 
(1) The rights, benefits, and obligations of members of the 
uniformed services under this chapter. 
(2) The application and administration of the requirements 
of this chapter by such agency with respect to such members. 
(b) CONSULTATION.-The training provided under subsection (a) 
shall be developed and provided in consultation with the Director 
of the Office of Personnel Management. 
(c) FREQUENCY.-The training under subsection (a) shall be 
provided with such frequency as the Director of the Office of Personnel 
Management shall specify in order to ensure that the 
human resources personnel of Federal executive agencies are kept 
fully and currently informed of the matters covered by the training. 
(d) HUMAN RESOURCES PERSONNEL DEFINED.-In this section, 
the term ï¿½ï¿½human resources personnelï¿½ï¿½, in the case of a Federal 
executive agency, means any personnel of the agency who are authorized 
to recommend, take, or approve any personnel action that is 
subject to the requirements of this chapter with respect to employees 
of the agency. 
(Added Pub. L. 110-389, title III, Sec. 313(a), Oct. 10, 2008, 122 
Stat. 4166.) 


CHAPTER 51 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


709 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

PART IV-GENERAL ADMINISTRATIVE PROVISIONS 

Chapter Sec. 

51. Claims, Effective Dates, and Payments ............ 5100


53. Special Provisions Relating to Benefits ......... 5301


55. Minors, Incompetents, and Other Wards ........... 5501

57. Records and Investigations .......................... 5701


59. Agents and Attorneys ................................ 5901


61. Penal and Forfeiture Provisions ......................... 6101


63. Outreach Activities ..................................... 6301


711 


CHAPTER 51-CLAIMS, EFFECTIVE DATES, AND 
PAYMENTS


SUBCHAPTER I-CLAIMS 

Sec. 
5100. Definition of ï¿½ï¿½claimantï¿½ï¿½. 
5101. Claims and forms. 
5102. Application forms furnished upon request; notice to 
claimants of incomplete applications. 
5103. Notice to claimants of required information and evidence.
5103A. Duty to assist claimants. 
5104. Decisions and notices of decisions. 
5105. Joint applications for social security and dependency and 
indemnity compensation. 
5106. Furnishing of information by other agencies.
5107. Claimant responsibility; benefit of the doubt. 
5108. Reopening disallowed claims. 
5109. Independent medical opinions. 
5109A. Revision of decisions on grounds of clear and unmistakable error. 
5109B. Expedited treatment of remanded claims. 

SUBCHAPTER II-EFFECTIVE DATES 

5110. Effective dates of awards. 
5111. Commencement of period of payment. 
5112. Effective dates of reductions and discontinuances. 
5113. Effective dates of educational benefits. 

SUBCHAPTER III-PAYMENT OF BENEFITS 

5120. Payment of benefits; delivery. 
5121. Payment of certain accrued benefits upon death of a beneficiary. 
5121A. Substitution in case of death of claimant. 
5122. Cancellation of checks mailed to deceased payees. 
5123. Rounding down of pension rates. 
5124. Acceptance of claimantï¿½s statement as proof of relationship. 
5125. Acceptance of reports of private physician examinations. 
5126. Benefits not to be denied based on lack of mailing address.


SUBCHAPTER I-CLAIMS 

ï¿½ 5100. Definition of ï¿½ï¿½claimantï¿½ï¿½ 

For purposes of this chapter, the term ï¿½ï¿½claimantï¿½ï¿½ means any 
individual applying for, or submitting a claim for, any benefit 
under the laws administered by the Secretary. 

(Added Pub. L. 106-475, Sec. 2, Nov. 9, 2000, 114 Stat. 2096.) 

ï¿½ 5101. Claims and forms 

(a) A specific claim in the form prescribed by the Secretary (or 
jointly with the Commissioner of Social Security, as prescribed by 
section 5105 of this title) must be filed in order for benefits to be 
paid or furnished to any individual under the laws administered by 
the Secretary. 
(b)(1) A claim by a surviving spouse or child for compensation 
or dependency and indemnity compensation shall also be considered to be 
a claim for death pension and accrued benefits, and a 

713 


Sec. 5102 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 714 

claim by a surviving spouse or child for death pension shall be 
considered to be a claim for death compensation (or dependency and 
indemnity compensation) and accrued benefits. 

(2) A claim by a parent for compensation or dependency and 
indemnity compensation shall also be considered to be a claim for 
accrued benefits. 
(c)(1) Any person who applies for or is in receipt of any compensation 
or pension benefit under laws administered by the Secretary shall, if 
requested by the Secretary, furnish the Secretary 
with the social security number of such person and the social security 
number of any dependent or beneficiary on whose behalf, or 
based upon whom, such person applies for or is in receipt of such 
benefit. A person is not required to furnish the Secretary with a 
social security number for any person to whom a social security 
number has not been assigned. 

(2) The Secretary shall deny the application of or terminate the 
payment of compensation or pension to a person who fails to furnish 
the Secretary with a social security number required to be furnished 
pursuant to paragraph (1) of this subsection. The Secretary 
may thereafter reconsider the application or reinstate payment of 
compensation or pension, as the case may be, if such person furnishes 
the Secretary with such social security number. 
(3) The costs of administering this subsection shall be paid for 
from amounts available to the Department of Veterans Affairs for 
the payment of compensation and pension. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1225, Sec. 3001; Pub. L. 
97-295, Sec. 4(95)(A), Oct. 12, 1982, 96 Stat. 1313; Pub. L. 99-576, 
title VII, Sec. 701(61), Oct. 28, 1986, 100 Stat. 3296; Pub. L. 
101-508, title VIII, Sec. 8053(a), Nov. 5, 1990, 104 Stat. 1388-352; 
renumbered Sec. 5101 and amended Pub. L. 102-40, title IV, Sec. 4
02(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83,
Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. 
L. 108-183, title VII, Sec. 708(c)(2), Dec. 16, 2003, 117 Stat. 2674.) 

ï¿½ 5102. Application forms furnished upon request; notice to 
claimants of incomplete applications 

(a) FURNISHING FORMS.-Upon request made by any person 
claiming or applying for, or expressing an intent to claim or apply 
for, a benefit under the laws administered by the Secretary, the 
Secretary shall furnish such person, free of all expense, all 
instructions and forms necessary to apply for that benefit. 
(b) INCOMPLETE APPLICATIONS.-If a claimantï¿½s application for 
a benefit under the laws administered by the Secretary is incomplete, 
the Secretary shall notify the claimant and the claimantï¿½s 
representative, if any, of the information necessary to complete the 
application. 
(c) TIME LIMITATION.-(1) If information that a claimant and 
the claimantï¿½s representative, if any, are notified under subsection 
(b) is necessary to complete an application is not received by the 
Secretary within one year from the date such notice is sent, no benefit 
may be paid or furnished by reason of the claimantï¿½s application. 
(2) This subsection shall not apply to any application or claim 
for Government life insurance benefits. 
(Added Pub. L. 106-475, Sec. 3(a), Nov. 9, 2000, 114 Stat. 2096; amended 
Pub. L. 108-183, title VII, Sec. 701(a), Dec. 16, 2003, 117 Stat. 2670.) 


715 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5103A 

ï¿½ 5103. Notice to claimants of required information and evidence 

(a) REQUIRED INFORMATION AND EVIDENCE.-(1) Upon receipt 
of a complete or substantially complete application, the Secretary 
shall notify the claimant and the claimantï¿½s representative, if any, 
of any information, and any medical or lay evidence, not previously 
provided to the Secretary that is necessary to substantiate the 
claim. As part of that notice, the Secretary shall indicate which 
portion of that information and evidence, if any, is to be provided 
by the claimant and which portion, if any, the Secretary, in accordance 
with section 5103A of this title and any other applicable provisions of 
law, will attempt to obtain on behalf of the claimant. 
(2)(A) The Secretary shall prescribe in regulations requirements 
relating to the contents of notice to be provided under this 
subsection. 

(B) The regulations required by this paragraph- 
(i) shall specify different contents for notice based on 
whether the claim concerned is an original claim, a claim for 
reopening a prior decision on a claim, or a claim for an increase in 
benefits; 
(ii) shall provide that the contents for such notice be appropriate to 
the type of benefits or services sought under the 
claim; 
(iii) shall specify for each type of claim for benefits the 
general information and evidence required to substantiate the 
basic elements of such type of claim; and 
(iv) shall specify the time period limitations required pursuant to 
subsection (b). (b) TIME LIMITATION.-(1) In the case of information or 
evidence that the claimant is notified under subsection (a) is to be 
provided by the claimant, such information or evidence must be received 
by the Secretary within one year from the date such notice 
is sent. 
(2) This subsection shall not apply to any application or claim 
for Government life insurance benefits. 
(3) Nothing in paragraph (1) shall be construed to prohibit the 
Secretary from making a decision on a claim before the expiration 
of the period referred to in that subsection. 
(Added Pub. L. 106-475, Sec. 3(a), Nov. 9, 2000, 114 Stat. 2096; 
amended Pub. L. 107-14, Sec. 8(a)(12), June 5, 2001, 115 Stat. 35; 
Pub. L. 108-183, title VII, Sec. 701(b), Dec. 16, 2003, 117 Stat. 2670; 
Pub. L. 110-389, title I, Sec. 101(a), Oct. 10, 
2008, 122 Stat. 4147.) 

ï¿½ 5103A. Duty to assist claimants 

(a) DUTY TO ASSIST.-(1) The Secretary shall make reasonable 
efforts to assist a claimant in obtaining evidence necessary to 
substantiate the claimantï¿½s claim for a benefit under a law administered 
by the Secretary. 
(2) The Secretary is not required to provide assistance to a 
claimant under this section if no reasonable possibility exists that 
such assistance would aid in substantiating the claim. 
(3) The Secretary may defer providing assistance under this 
section pending the submission by the claimant of essential information 
missing from the claimantï¿½s application. 

Sec. 5103A CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 716 

(b) ASSISTANCE IN OBTAINING RECORDS.-(1) As part of the assistance 
provided under subsection (a), the Secretary shall make 
reasonable efforts to obtain relevant records (including private 
records) that the claimant adequately identifies to the Secretary 
and authorizes the Secretary to obtain. 
(2) Whenever the Secretary, after making such reasonable efforts, is 
unable to obtain all of the relevant records sought, the Secretary shall 
notify the claimant that the Secretary is unable to obtain records with 
respect to the claim. Such a notification shall- 
(A) identify the records the Secretary is unable to obtain; 
(B) briefly explain the efforts that the Secretary made to 
obtain those records; and 
(C) describe any further action to be taken by the Secretary with respect 
to the claim. 
(3) Whenever the Secretary attempts to obtain records from a 
Federal department or agency under this subsection or subsection 
(c), the efforts to obtain those records shall continue until the 
records are obtained unless it is reasonably certain that such 
records do not exist or that further efforts to obtain those records 
would be futile. 
(c) OBTAINING RECORDS FOR COMPENSATION CLAIMS.-In the 
case of a claim for disability compensation, the assistance provided 
by the Secretary under subsection (b) shall include obtaining the 
following records if relevant to the claim: 
(1) The claimantï¿½s service medical records and, if the 
claimant has furnished the Secretary information sufficient to 
locate such records, other relevant records pertaining to the 
claimantï¿½s active military, naval, or air service that are held or 
maintained by a governmental entity. 
(2) Records of relevant medical treatment or examination 
of the claimant at Department health-care facilities or at the 
expense of the Department, if the claimant furnishes information 
sufficient to locate those records. 
(3) Any other relevant records held by any Federal department or agency 
that the claimant adequately identifies and authorizes the Secretary to 
obtain. 
(d) MEDICAL EXAMINATIONS FOR COMPENSATION CLAIMS.-(1) 
In the case of a claim for disability compensation, the assistance 
provided by the Secretary under subsection (a) shall include providing 
a medical examination or obtaining a medical opinion when 
such an examination or opinion is necessary to make a decision on 
the claim. 
(2) The Secretary shall treat an examination or opinion as 
being necessary to make a decision on a claim for purposes of paragraph 
(1) if the evidence of record before the Secretary, taking into 
consideration all information and lay or medical evidence (including 
statements of the claimant)- 
(A) contains competent evidence that the claimant has a 
current disability, or persistent or recurrent symptoms of disability; 
and 
(B) indicates that the disability or symptoms may be associated with 
the claimantï¿½s active military, naval, or air service; 
but 

717 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5105 

(C) does not contain sufficient medical evidence for the 
Secretary to make a decision on the claim. 
(e) REGULATIONS.-The Secretary shall prescribe regulations to 
carry out this section. 
(f) RULE WITH RESPECT TO DISALLOWED CLAIMS.-Nothing in 
this section shall be construed to require the Secretary to reopen 
a claim that has been disallowed except when new and material 
evidence is presented or secured, as described in section 5108 of 
this title. 
(g) OTHER ASSISTANCE NOT PRECLUDED.-Nothing in this section shall be 
construed as precluding the Secretary from providing 
such other assistance under subsection (a) to a claimant in substantiating 
a claim as the Secretary considers appropriate. 
(Added Pub. L. 106-475, Sec. 3(a), Nov. 9, 2000, 114 Stat. 2097.) 

ï¿½ 5104. Decisions and notices of decisions 

(a) In the case of a decision by the Secretary under section 511 
of this title affecting the provision of benefits to a claimant, the 
Secretary shall, on a timely basis, provide to the claimant (and to 
the claimantï¿½s representative) notice of such decision. The notice 
shall include an explanation of the procedure for obtaining review 
of the decision. 
(b) In any case where the Secretary denies a benefit sought, 
the notice required by subsection (a) shall also include (1) a 
statement of the reasons for the decision, and (2) a summary of the 
evidence considered by the Secretary. 
(Added Pub. L. 101-237, title I, Sec. 115(a)(1), Dec. 18, 1989, 103 
Stat. 2065, Sec. 3004; renumbered Sec. 5104, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-54, 
Sec. 14(d)(1), June 13, 1991, 105 Stat. 285; Pub. L. 103-446, title 
XII, Sec. 1201(d)(15), Nov. 2, 1994, 108 Stat. 4684.) 

ï¿½ 5105. Joint applications for social security and dependency and 
indemnity compensation 

(a) The Secretary and the Commissioner of Social Security 
shall jointly prescribe forms for use by survivors of members and 
former members of the uniformed services in filing application for 
benefits under chapter 13 of this title and title II of the Social 
Security Act (42 U.S.C. 401 et seq.). Each such form shall request 
information sufficient to constitute an application for benefits under 
both chapter 13 of this title and title II of the Social Security Act 
(42 U.S.C. 401 et seq.). 
(b) When an application on such a form is filed with either the 
Secretary or the Commissioner of Social Security, it shall be 
deemed to be an application for benefits under both chapter 13 of 
this title and title II of the Social Security Act (42 U.S.C. 401 et 
seq.). A copy of each such application filed with either the Secretary 
or the Commissioner, together with any additional information and 
supporting documents (or certifications thereof) which 
may have been received by the Secretary or the Commissioner with 
such application, and which may be needed by the other official in 
connection therewith, shall be transmitted by the Secretary or the 
Commissioner receiving the application to the other official. The 
preceding sentence shall not prevent the Secretary and the Commissioner 
of Social Security from requesting the applicant, or any 

Sec. 5106 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 718 

other individual, to furnish such additional information as may be 
necessary for purposes of chapter 13 of this title and title II of the 
Social Security Act (42 U.S.C. 401 et seq.), respectively. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1226, Sec. 3005; Pub. L. 
97-295, Sec. 4(95)(A), Oct. 12, 1982, 96 Stat. 1313; Pub. L. 98-160, 
title VII, Sec. 702(16), Nov. 21, 1983, 97 Stat. 1010; renumbered 
Sec. 5105, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 4(b)(9), Aug. 6, 1991, 105 Stat. 405; 
Pub. L. 103-296, title I, Sec. 108(k), Aug. 15, 1994, 108 Stat. 1488.) 

ï¿½ 5106. Furnishing of information by other agencies 

The head of any Federal department or agency shall provide 
such information to the Secretary as the Secretary may request for 
purposes of determining eligibility for or amount of benefits, or 
verifying other information with respect thereto. The cost of providing 
information to the Secretary under this section shall be 
borne by the department or agency providing the information. 

(Added Pub. L. 94-432, title IV, Sec. 403(2), Sept. 30, 1976, 90 Stat. 
1372, Sec. 3006; amended Pub. L. 99-576, title VII, Sec. 701(62), Oct. 
28, 1986, 100 Stat. 3296; renumbered Sec. 5106, Pub. L. 102-40, title 
IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 
106-475, Sec. 5, Nov. 9, 2000, 114 Stat. 2099.) 

ï¿½ 5107. Claimant responsibility; benefit of the doubt 

(a) CLAIMANT RESPONSIBILITY.-Except as otherwise provided 
by law, a claimant has the responsibility to present and support a 
claim for benefits under laws administered by the Secretary. 
(b) BENEFIT OF THE DOUBT.-The Secretary shall consider all 
information and lay and medical evidence of record in a case before 
the Secretary with respect to benefits under laws administered by 
the Secretary. When there is an approximate balance of positive 
and negative evidence regarding any issue material to the determination 
of a matter, the Secretary shall give the benefit of the 
doubt to the claimant. 
(Added Pub. L. 100-687, div. A, title I, Sec. 103(a)(1), Nov. 18, 1988, 
102 Stat. 4106, Sec. 3007; renumbered Sec. 5107 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 403-405; Pub. L. 106-398, Sec. 1 ((div. A), title XVI, 
Sec. 1611(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-359; Pub. L. 106-419, 
title I, Sec. 104(c)(2), Nov. 1, 2000, 114 Stat. 1828; Pub. L. 106-475, 
Sec. 4, Nov. 9, 2000, 114 Stat. 2098.) 

ï¿½ 5108. Reopening disallowed claims 

If new and material evidence is presented or secured with respect to a 
claim which has been disallowed, the Secretary shall reopen the claim 
and review the former disposition of the claim. 

(Added Pub. L. 100-687, div. A, title I, Sec. 103(a)(1), Nov. 18, 1988, 
102 Stat. 4107, Sec. 3008; renumbered Sec. 5108, Pub. L. 102-40, title 
IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 

ï¿½ 5109. Independent medical opinions 

(a) When, in the judgment of the Secretary, expert medical 
opinion, in addition to that available within the Department, is 
warranted by the medical complexity or controversy involved in a 
case being considered by the Department, the Secretary may secure 

719 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5110 

an advisory medical opinion from one or more independent medical 
experts who are not employees of the Department. 

(b) The Secretary shall make necessary arrangements with recognized 
medical schools, universities, or clinics to furnish such advisory 
medical opinions. Any such arrangement shall provide that 
the actual selection of the expert or experts to give the advisory 
opinion in an individual case shall be made by an appropriate official 
of such institution. 
(c) The Secretary shall furnish a claimant with notice that an 
advisory medical opinion has been requested under this section 
with respect to the claimantï¿½s case and shall furnish the claimant 
with a copy of such opinion when it is received by the Secretary. 
(Added Pub. L. 100-687, div. A, title I, Sec. 103(a)(1), Nov. 18, 1988, 
102 Stat. 4107, Sec. 3009; renumbered Sec. 5109, Pub. L. 102-40, title 
IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405.) 

ï¿½ 5109A. Revision of decisions on grounds of clear and unmistakable 
error 

(a) A decision by the Secretary under this chapter is subject to 
revision on the grounds of clear and unmistakable error. If evidence 
establishes the error, the prior decision shall be reversed or 
revised. 
(b) For the purposes of authorizing benefits, a rating or other 
adjudicative decision that constitutes a reversal or revision of a 
prior decision on the grounds of clear and unmistakable error has 
the same effect as if the decision had been made on the date of the 
prior decision. 
(c) Review to determine whether clear and unmistakable error 
exists in a case may be instituted by the Secretary on the Secretaryï¿½s 
own motion or upon request of the claimant. 
(d) A request for revision of a decision of the Secretary based 
on clear and unmistakable error may be made at any time after 
that decision is made. 
(e) Such a request shall be submitted to the Secretary and 
shall be decided in the same manner as any other claim. 
(Added Pub. L. 105-111, Sec. 1(a)(1), Nov. 21, 1997, 111 Stat. 2271.) 

ï¿½ 5109B. Expedited treatment of remanded claims 

The Secretary shall take such actions as may be necessary to 
provide for the expeditious treatment by the appropriate regional 
office of the Veterans Benefits Administration of any claim that is 
remanded to a regional office of the Veterans Benefits Administration 
by the Board of Veteransï¿½ Appeals. 

(Added Pub. L. 108-183, title VII, Sec. 707(a)(1), Dec. 16, 2003, 117 
Stat. 2672.) 

SUBCHAPTER II-EFFECTIVE DATES 

ï¿½ 5110. Effective dates of awards 

(a) Unless specifically provided otherwise in this chapter, the 
effective date of an award based on an original claim, a claim reopened 
after final adjudication, or a claim for increase, of compensation, 
dependency and indemnity compensation, or pension, 

Sec. 5110 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 720 

shall be fixed in accordance with the facts found, but shall not be 
earlier than the date of receipt of application therefor. 

(b)(1) The effective date of an award of disability compensation 
to a veteran shall be the day following the date of the veteranï¿½s 
discharge or release if application therefor is received within one year 
from such date of discharge or release. 

(2) The effective date of an award of increased compensation 
shall be the earliest date as of which it is ascertainable that an 
increase in disability had occurred, if application is received within 
one year from such date. 
(3)(A) The effective date of an award of disability pension to a 
veteran described in subparagraph (B) of this paragraph shall be 
the date of application or the date on which the veteran became 
permanently and totally disabled, if the veteran applies for a 
retroactive award within one year from such date, whichever is to the 
advantage of the veteran. 

(B) A veteran referred to in subparagraph (A) of this paragraph is a 
veteran who is permanently and totally disabled and who is prevented by 
a disability from applying for disability pension for a period of at 
least 30 days beginning on the date on which the veteran became 
permanently and totally disabled. 
(c) The effective date of an award of disability compensation by 
reason of section 1151 of this title shall be the date such injury or 
aggravation was suffered if an application therefor is received within 
one year from such date. 
(d) The effective date of an award of death compensation, dependency 
and indemnity compensation, or death pension for which 
application is received within one year from the date of death shall 
be the first day of the month in which the death occurred. 
(e)(1) Except as provided in paragraph (2) of this subsection, 
the effective date of an award of dependency and indemnity compensation 
to a child shall be the first day of the month in which 
the childï¿½s entitlement arose if application therefor is received 
within one year from such date. 

(2) In the case of a child who is eighteen years of age or over 
and who immediately before becoming eighteen years of age was 
counted under section 1311(b) of this title in determining the 
amount of the dependency and indemnity compensation of a surviving 
spouse, the effective date of an award of dependency and indemnity 
compensation to such child shall be the date the child attains the age 
of eighteen years if application therefor is received 
within one year from such date. 
(f) An award of additional compensation on account of dependents based on 
the establishment of a disability rating in the percentage evaluation 
specified by law for the purpose shall be payable from the effective 
date of such rating; but only if proof of dependents is received within 
one year from the date of notification 
of such rating action. 
(g) Subject to the provisions of section 5101 of this title, where 
compensation, dependency and indemnity compensation, or pension 
is awarded or increased pursuant to any Act or administrative 
issue, the effective date of such award or increase shall be fixed in 
accordance with the facts found but shall not be earlier than the 
effective date of the Act or administrative issue. In no event shall 

721 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5110 

such award or increase be retroactive for more than one year from 
the date of application therefor or the date of administrative 
determination of entitlement, whichever is earlier. 

(h) Where an award of pension has been deferred or pension 
has been awarded at a rate based on anticipated income for a year 
and the claimant later establishes that income for that year was 
at a rate warranting entitlement or increased entitlement, the 
effective date of such entitlement or increase shall be fixed in 
accordance with the facts found if satisfactory evidence is received 
before the expiration of the next calendar year. 
(i) Whenever any disallowed claim is reopened and thereafter 
allowed on the basis of new and material evidence resulting from 
the correction of the military records of the proper service department 
under section 1552 of title 10, or the change, correction, or 
modification of a discharge or dismissal under section 1553 of title 
10, or from other corrective action by competent authority, the 
effective date of commencement of the benefits so awarded shall be 
the date on which an application was filed for correction of the 
military record or for the change, modification, or correction of a 
discharge or dismissal, as the case may be, or the date such disallowed 
claim was filed, whichever date is the later, but in no event 
shall such award of benefits be retroactive for more than one year 
from the date of reopening of such disallowed claim. This subsection 
shall not apply to any application or claim for Government 
life insurance benefits. 
(j) Where a report or a finding of death of any person in the 
active military, naval, or air service has been made by the Secretary 
concerned, the effective date of an award of death compensation, 
dependency and indemnity compensation, or death pension, as 
applicable, shall be the first day of the month fixed by that Secretary 
as the month of death in such report or finding, if application therefor 
is received within one year from the date such report 
or finding has been made; however, such benefits shall not be payable to 
any person for any period for which such person has received, or was 
entitled to receive, an allowance, allotment, or service pay of the 
deceased. 
(k) The effective date of the award of benefits to a surviving 
spouse or of an award or increase of benefits based on recognition 
of a child, upon annulment of a marriage shall be the date the judicial 
decree of annulment becomes final if a claim therefor is filed 
within one year from the date the judicial decree of annulment becomes 
final; in all other cases the effective date shall be the date 
the claim is filed. 
(l) The effective date of an award of benefits to a surviving 
spouse based upon a termination of a remarriage by death or divorce, or 
of an award or increase of benefits based on recognition 
of a child upon termination of the childï¿½s marriage by death or divorce, 
shall be the date of death or the date the judicial decree or 
divorce becomes final, if an application therefor is received within 
one year from such termination. 
(n) The effective date of the award of any benefit or any increase 
therein by reason of marriage or the birth or adoption of a 
child shall be the date of such event if proof of such event is re

Sec. 5111 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 722 

ceived by the Secretary within one year from the date of the marriage, 
birth, or adoption. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1226, Sec. 3010; Pub. L. 
87-674, Sec. 3, Sept. 19, 1962, 76 Stat. 558; Pub. L. 87-825, Sec. 1,
Oct. 15, 1962, 76 Stat. 948; Pub. L. 91-376, Sec. 7, Aug. 12, 1970, 
84 Stat. 790; Pub. L. 91-584, Sec. 13, Dec. 24, 1970, 84 Stat. 1578; 
Pub. L. 93-177, Sec. 6(a), Dec. 6, 1973, 87 Stat. 696; Pub. L. 93-527, 
Sec. 9(b), Dec. 21, 1974, 88 Stat. 1705; Pub. L. 94-71, title I, Sec. 
104, Aug. 5, 1975, 89 Stat. 396; Pub. L. 97-66, title II, Sec. 204(b), 
Oct. 17, 1981, 95 Stat. 1029; Pub. L. 98-160, title VII, Sec. 703(1), 
Nov. 21, 1983, 97 Stat. 1010; Pub. L. 98-223, title II, Sec. 213(3) 
Mar. 2, 1984, 98 Stat. 46; Pub. L. 98-369, div. B, title V, Sec. 
2501(a), July 18, 1984, 98 Stat. 1116; Pub. L. 99-576, title VII, 
Sec. 701(63), Oct. 28, 1986, 100 Stat. 3296; renumbered Sec. 5110 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 
105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(2)(A)(vi), (b)(4)(B), 
5(c)(1), Aug. 6, 1991, 105 Stat. 403, 405, 406; Pub. L. 103-446, 
title XII, Sec. 1201(i)(8), Nov. 2, 1994, 108 Stat. 4688; Pub. L. 
108-454, title III, Sec. 305, Dec. 10, 2004, 118 Stat. 3611.) 
ï¿½ 5111. Commencement of period of payment 

(a) Notwithstanding section 5110 of this title or any other provision 
of law and except as provided in subsection (c) of this section, 
payment of monetary benefits based on an award or an increased award 
of compensation, dependency and indemnity compensation, or pension may 
not be made to an individual for any period before the first day of the 
calendar month following the month in which the award or increased 
award became effective as provided under section 5110 of this title or 
such other provision of law. 
(b)(1) Except as provided in paragraph (2) of this subsection, 
during the period between the effective date of an award or increased 
award as provided under section 5110 of this title or other 
provision of law and the commencement of the period of payment 
based on such award as provided under subsection (a) of this section, 
an individual entitled to receive monetary benefits shall be 
deemed to be in receipt of such benefits for the purpose of all laws 
administered by the Secretary. 

(2) If any person who is in receipt of retired or retirement pay 
would also be eligible to receive compensation or pension upon the 
filing of a waiver of such pay in accordance with section 5305 of 
this title, such waiver shall not become effective until the first day 
of the month following the month in which such waiver is filed, and 
nothing in this section shall prohibit the receipt of retired or 
retirement pay for any period before such effective date. 
(c)(1) This section shall apply to payments made pursuant to 
section 5310 of this title only if the monthly amount of dependency 
and indemnity compensation or pension payable to the surviving 
spouse is greater than the amount of compensation or pension the 
veteran would have received, but for such veteranï¿½s death, for the 
month in which such veteranï¿½s death occurred. 

(2) In the case of a temporary increase in compensation for 
hospitalization or treatment where such hospitalization or treatment 
commences and terminates within the same calendar month, 
the period of payment shall commence on the first day of such 
month. 
(d) For the purposes of this section, the term ï¿½ï¿½award or increased 
awardï¿½ï¿½ means- 
(1) an original or reopened award; or 

723 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5112 

(2) an award that is increased because of an added dependent, increase 
in disability or disability rating, or reduction in 
income. 
(Added Pub. L. 97-253, title IV, Sec. 401(a)(1), Sept. 8, 1982, 96 
Stat. 801, Sec. 3011; amended Pub. L. 98-223, title I, Sec. 113, 
Mar. 2, 1984, 98 Stat. 40; renumbered Sec. 5111 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991, 105 Stat. 
403.) 

ï¿½ 5112. Effective dates of reductions and discontinuances 

(a) Except as otherwise specified in this section, the effective 
date of reduction or discontinuance of compensation, dependency 
and indemnity compensation, or pension shall be fixed in accordance 
with the facts found. 
(b) The effective date of a reduction or discontinuance of 
compensation, dependency and indemnity compensation, or pension- 
(1) by reason of marriage or remarriage, or death of a 
payee shall be the last day of the month before such marriage, 
remarriage, or death occurs; 
(2) by reason of marriage, annulment, divorce, or death of 
a dependent of a payee shall be the last day of the month in 
which such marriage, annulment, divorce, or death occurs; 
(3) by reason of receipt of active service pay or retirement 
pay shall be the day before the date such pay began; 
(4) by reason of- 
(A) change in income shall (except as provided in section 5312 of this 
title) be the last day of the month in 
which the change occurred; and 
(B) change in corpus of estate shall be the last day of 
the calendar year in which the change occurred; 
(5) by reason of a change in disability or employability of 
a veteran in receipt of pension shall be the last day of the 
month in which discontinuance of the award is approved; 
(6) by reason of change in law or administrative issue, 
change in interpretation of a law or administrative issue, or, 
for compensation purposes, a change in service-connected or 
employability status or change in physical condition shall be 
the last day of the month following sixty days from the date 
of notice to the payee (at the payeeï¿½s last address of record) of 
the reduction or discontinuance; 
(7) by reason of the discontinuance of school attendance of 
a payee or a dependent of a payee shall be the last day of the 
month in which such discontinuance occurred; 
(8) by reason of termination of a temporary increase in 
compensation for hospitalization or treatment shall be the last 
day of the month in which the hospital discharge or termination of 
treatment occurred, whichever is earlier; 
(9) by reason of an erroneous award based on an act of 
commission or omission by the beneficiary, or with the beneficiaryï¿½s 
knowledge, shall be the effective date of the award; 
and 
(10) by reason of an erroneous award based solely on administrative 
error or error in judgment shall be the date of last 
payment. 

Sec. 5113 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 724 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1227, Sec. 3012; Pub. L. 
87-825, Sec. 2, Oct. 15, 1962, 76 Stat. 949; Pub. L. 89-730, Sec. 3, 
Nov. 2, 1966, 80 Stat. 1159; Pub. L. 90-275, Sec. 5, Mar. 28, 1968, 82 
Stat. 68; Pub. L. 92-198, Sec. 3, Dec. 15, 1971, 85 Stat. 664; Pub. L. 
94-433, title IV, Sec. 402, Sept. 30, 1976, 90 Stat. 1378; Pub. L. 
95-588, title III, Sec. 303, Nov. 4, 1978, 92 Stat. 2506; Pub. L. 
97-253, title IV, Sec. 402(a), Sept. 8, 1982, 96 Stat. 802; Pub. L. 
99-576, title V, Sec. 503, title VII, Sec. 701(64), Oct. 28, 1986, 
100 Stat. 3286, 3296; renumbered Sec. 5112 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 107-103, title II, Sec. 204(b)(2), Dec. 27, 2001, 115 
Stat. 990.) 
ï¿½ 5113. Effective dates of educational benefits 

(a) Except as provided in subsections (b) and (c), effective dates 
relating to awards under chapters 30, 31, 32, 34, and 35 of this 
title or chapter 106 of title 10 shall, to the extent feasible, 
correspond to effective dates relating to awards of disability 
compensation. 
(b)(1) When determining the effective date of an award under 
chapter 35 of this title for an individual described in paragraph (2) 
based on an original claim, the Secretary may consider the individualï¿½s 
application as having been filed on the eligibility date of the 
individual if that eligibility date is more than one year before the 
date of the initial rating decision. 

(2) An individual referred to in paragraph (1) is an eligible person 
who- 
(A) submits to the Secretary an original application for 
educational assistance under chapter 35 of this title within one 
year of the date that the Secretary makes the rating decision; 
(B) claims such educational assistance for pursuit of an approved 
program of education during a period preceding the 
one-year period ending on the date on which the application 
was received by the Secretary; and 
(C) would have been entitled to such educational assistance for 
such course pursuit if the individual had submitted 
such an application on the individualï¿½s eligibility date. 
(3) In this subsection: 
(A) The term ï¿½ï¿½eligibility dateï¿½ï¿½ means the date on which an 
individual becomes an eligible person. 
(B) The term ï¿½ï¿½eligible personï¿½ï¿½ has the meaning given that 
term under subparagraphs (A), (B), (D), and (E) of section 
3501(a)(1) of this title. 
(C) The term ï¿½ï¿½initial rating decisionï¿½ï¿½ means with respect 
to an eligible person a decision made by the Secretary that 
establishes (i) service connection for the death of the person from 
whom such eligibility is derived or (ii) the existence of the 
service-connected total disability permanent in nature (or, in the 
case of a person made eligible under section 3501(a)(1)(E), the 
total disability permanent in nature incurred or aggravated in 
the line of duty in the active military, naval, or air service) of 
the person from whom such eligibility is derived, as the case 
may be. 
(c) The effective date of an adjustment of benefits under any 
chapter referred to in subsection (a) of this section, if made on the 
basis of a certification made by the veteran or person and accepted 
by the Secretary under section 3680(g) of this title, shall be the 
date of the change. 

725 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5120 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1227, Sec. 3013; Pub. L. 
89-358, Sec. 4(p), Mar. 3, 1966, 80 Stat. 25; Pub. L. 99-576, title 
III, Sec. 321(10), Oct. 28, 1986, 100 Stat. 3278; Pub. L. 100-322, 
title III, Sec. 323, May 20, 1988, 102 Stat. 536; Pub. L. 101-237, 
title IV, Sec. 419, Dec. 18, 1989, 103 Stat. 2087; Pub. L. 102-16, Sec. 
10(a)(9), Mar. 22, 1991, 105 Stat. 56; renumbered Sec. 5113, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-83, Sec. 5(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 106-419, 
title I, Sec. 113(a), Nov. 1, 2000, 114 Stat. 1832; Pub. L. 109-444, 
Sec. 3(c)(2), Dec. 21, 2006, 120 Stat. 3307; Pub. L. 109-461, title 
III, Sec. 301(c)(2), title X, Sec. 1006(b), Dec. 22, 2006, 120 Stat. 
3427, 3468.) 
SUBCHAPTER III-PAYMENT OF BENEFITS 

ï¿½ 5120. Payment of benefits; delivery 

(a) Monetary benefits under laws administered by the Secretary shall 
be paid by checks drawn, pursuant to certification by 
the Secretary, in such form as to protect the United States against 
loss, and payable by the Treasurer of the United States. Such 
checks shall be payable without separate vouchers or receipts except 
in any case in which the Secretary may consider a voucher 
necessary for the protection of the Government. Such checks shall 
be transmitted by mail to the payee thereof at the payeeï¿½s last 
known address and, if the payee has moved and filed a regular 
change of address notice with the United States Postal Service, 
shall be forwarded to the payee. The envelope or cover of each such 
checks shall bear on the face thereof the following notice: 
ï¿½ï¿½POSTMASTER: PLEASE FORWARD if addressee has moved and filed a 
regular change-of-address notice. If addressee is deceased, return 
the letter with date of death, if known.ï¿½ï¿½ 
(b) Postmasters, delivery clerks, letter carriers, and all other 
postal employees are prohibited from delivering any mail addressed 
by the United States and containing any such check to any person 
whomsoever if such person has died or in the case of a surviving 
spouse, if the postal employee believes that the surviving spouse 
has remarried (unless the mail is addressed to the surviving spouse 
in the name the surviving spouse has acquired by the remarriage). 
The preceding sentence shall apply in the case of checks in payment 
of benefits other than pension, compensation, dependency and 
indemnity compensation, and insurance, only insofar as the Secretary 
deems it necessary to protect the United States against loss. 
(c) Whenever mail is not delivered because of the prohibition 
of subsection (b), such mail shall be returned forthwith by the 
postmaster with a statement of the reason for so doing, and if because 
of death or remarriage, the date thereof, if known. Checks returned 
under this subsection because of death or remarriage shall be canceled. 
(d) Notwithstanding subsection (a) of this section, pursuant to 
an agreement with the Department of the Treasury under which 
the Secretary certifies such benefits for payment, monetary benefits 
under laws administered by the Secretary may be paid other than 
by check upon the written request of the person to whom such benefits 
are to be paid, if such noncheck payment is determined by the 
Secretary to be in the best interest of such payees and the management 
of monetary benefits programs by the Department. 
(e) Whenever the first day of any calendar month falls on a 
Saturday, Sunday, or legal public holiday (as defined in section 
6103 of title 5), the Secretary shall, to the maximum extent prac

Sec. 5121 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 726 

ticable, certify benefit payments for such month in such a way that 
such payments will be delivered by mail, or transmitted for credit 
to the payeeï¿½s account pursuant to subsection (d) of this section, on 
the Friday immediately preceding such Saturday or Sunday, or in 
the case of a legal holiday, the weekday (other than Saturday) 
immediately preceding such legal public holiday, notwithstanding 
that such delivery or transmission of such payments is made in the 
same calendar month for which such payments are issued. 

(f)(1) In the case of a payee who does not have a mailing address, 
payments of monetary benefits under laws administered by 
the Secretary shall be delivered under an appropriate method 
prescribed pursuant to paragraph (2) of this subsection. 

(2) The Secretary shall prescribe an appropriate method or 
methods for the delivery of payments of monetary benefits under 
laws administered by the Secretary in cases described in paragraph 
(1) of this subsection. To the maximum extent practicable, such 
method or methods shall be designed to ensure the delivery of 
payments in such cases. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1227, Sec. 3020; Pub. L. 
95-117, title IV, Sec. 402(a), (b)(1), Oct. 3, 1977, 91 Stat. 1065, 
1066; Pub. L. 97-295, Sec. 4(73), Oct. 12, 1982, 96 Stat. 1310; Pub. 
L. 99-570, title XI, Sec. 11007(a)(2), Oct. 27, 1986, 100 Stat. 
3207-170; Pub. L. 99-576, title VII, Sec. 701(65), Oct. 28, 1986, 
100 Stat. 3296; renumbered Sec. 5120, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 403-405.) 

ï¿½ 5121. Payment of certain accrued benefits upon death of a 
beneficiary 

(a) Except as provided in sections 3329 and 3330 of title 31, 
periodic monetary benefits (other than insurance and servicemenï¿½s 
indemnity) under laws administered by the Secretary to which an 
individual was entitled at death under existing ratings or decisions 
or those based on evidence in the file at date of death (hereinafter 
in this section and section 5122 of this title referred to as ï¿½ï¿½accrued 
benefitsï¿½ï¿½) and due and unpaid, shall, upon the death of such 
individual be paid as follows: 
(1) Upon the death of a person receiving an apportioned 
share of benefits payable to a veteran, all or any part of such 
benefits to the veteran or to any other dependent or dependents of the
veteran, as may be determined by the Secretary. 
(2) Upon the death of a veteran, to the living person first 
listed below: 
(A) The veteranï¿½s spouse. 
(B) The veteranï¿½s children (in equal shares). 
(C) The veteranï¿½s dependent parents (in equal shares). 
(3) Upon the death of a surviving spouse or remarried surviving spouse, 
to the children of the deceased veteran. 
(4) Upon the death of a child, to the surviving children of 
the veteran who are entitled to death compensation, dependency and 
indemnity compensation, or death pension. 
(5) Upon the death of a child claiming benefits under chapter 18 of 
this title, to the surviving parents. 
(6) In all other cases, only so much of the accrued benefits 
may be paid as may be necessary to reimburse the person who 
bore the expense of last sickness and burial. 

727 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS Sec. 5122 

(b) No part of any accrued benefits shall be used to reimburse 
any political subdivision of the United States for expenses incurred 
in the last sickness or burial of any beneficiary. 
(c) Applications for accrued benefits must be filed within one 
year after the date of death. If a claimantï¿½s application is incomplete 
at the time it is originally submitted, the Secretary shall notify the 
claimant of the evidence necessary to complete the application. If such 
evidence is not received within one year from the date 
of such notification, no accrued benefits may be paid. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1228, Sec. 3021; Pub. L. 
92-328, title I, Sec. 105(b), June 30, 1972, 86 Stat. 395; Pub. L. 
97-258, Sec. 3(k)(4), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 98-160, 
title VII, Sec. 703(1), Nov. 21, 1983, 97 Stat. 1010; Pub. 

L. 99-576, title VII, Sec. 701(66), Oct. 28, 1986, 100 Stat. 3296; 
renumbered Sec. 5121 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 
104-275, title V, Sec. 507, Oct. 9, 1996, 110 Stat. 3343; Pub. L. 
107-14, Sec. 8(a)(16), June 5, 2001, 115 Stat. 35; Pub. L. 108-183, 
title I, Sec. 
104(a)-(c), Dec. 16, 2003, 117 Stat. 2656.) 
ï¿½ 5121A. Substitution in case of death of claimant 

(a) SUBSTITUTION.-(1) If a claimant dies while a claim for any 
benefit under a law administered by the Secretary, or an appeal of 
a decision with respect to such a claim, is pending, a living person 
who would be eligible to receive accrued benefits due to the claimant 
under section 5121(a) of this title may, not later than one year 
after the date of the death of such claimant, file a request to be 
substituted as the claimant for the purposes of processing the claim 
to completion. 
(2) Any person seeking to be substituted for the claimant shall 
present evidence of the right to claim such status within such time 
as prescribed by the Secretary in regulations. 
(3) Substitution under this subsection shall be in accordance 
with such regulations as the Secretary may prescribe. 
(b) LIMITATION.-Those who are eligible to make a claim under 
this section shall be determined in accordance with section 5121 of 
this title. 
(Added Pub. L. 110-389, title II, Sec. 212(a), Oct. 10, 2008, 122 
Stat. 4151.) 

ï¿½ 5122. Cancellation of checks mailed to deceased payees 

A check received by a payee in payment of accrued benefits 
shall, if the payee died on or after the last day of the period covered 
by the check, be returned to the issuing office and canceled, 
unless negotiated by the payee or the duly appointed representative of 
the payeeï¿½s estate. The amount represented by such check, 
or any amount recovered by reason of improper negotiation of any 
such check, shall be payable in the manner provided in section 
5121 of this title, without regard to section 5121(c) of this title. Any 
amount not paid in the manner provided in section 5121 of this 
title shall be paid to the estate of the deceased payee unless the 
estate will escheat. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1229, Sec. 3022; Pub. L. 
99-576, title VII, Sec. 701(67), Oct. 28, 1986, 100 Stat. 3296; 
renumbered Sec. 5122 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. 

L. 104-316, title II, Sec. 202(t), Oct. 19, 1996, 110 Stat. 3845.) 

Sec. 5123 CH. 51-CLAIMS, EFFECTIVE DATES, AND PAYMENTS 728 

ï¿½ 5123. Rounding down of pension rates 

The monthly or other periodic rate of pension payable to an individual 
under section 1521, 1541, or 1542 of this title or under 
section 306(a) of the Veteransï¿½ and Survivorsï¿½ Pension Improvement Act 
of 1978 (Public Law 95-588), if not a multiple of $1, shall 
be rounded down to the nearest dollar. 

(Added Pub. L. 97-253, title IV, Sec. 403(a)(1), Sept. 8, 1982, 96 
Stat. 802, Sec. 3023; renumbered Sec. 5123, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, 
Sec. 5(c)(1), Aug. 6, 1991, 105 Stat. 406.) 

ï¿½ 5124. Acceptance of claimantï¿½s statement as proof of relationship 

(a) For purposes of benefits under laws administered by the 
Secretary, the Secretary may accept the written statement of a 
claimant as proof of the existence of any relationship specified in 
subsection (b) for the purpose of acting on such individualï¿½s claim 
for benefits. 
(b) Subsection (a) applies to proof of the existence of any of the 
following relationships between a claimant and another person: 
(1) Marriage. 
(2) Dissolution of a marriage. 
(3) Birth of a child. 
(4) Death of any family member. 
(c) The Secretary may require the submission of documentation 
in support of the claimantï¿½s statement if- 
(1) the claimant does not reside within a State; 
(2) the statement on its face raises a question as to its validity; 
(3) there is conflicting information of record; or 
(4) there is reasonable indication, in the statement or oth
erwise, of fraud or misrepresentation. 
(Added Pub. L. 103-446, title III, Sec. 301(a), Nov. 2, 1994, 108 
Stat. 4657.) 

ï¿½ 5125. Acceptance of reports of private physician examinations 

For purposes of establishing any claim for benefits under chapter 
11 or 15 of this title, a report of a medical examination 
administered by a private physician that is provided by a claimant in 
support of a claim for benefits under that chapter may be accepted 
without a requirement for confirmation by an examination by a 
physician employed by the Veterans Health Administration if the 
report is sufficiently complete to be adequate for the purpose of 
adjudicating such claim. 

(Added Pub. L. 103-446, title III, Sec. 301(b), Nov. 2, 1994, 108 
Stat. 4658.) 

ï¿½ 5126. Benefits not to be denied based on lack of mailing 
address 

Benefits under laws administered by the Secretary may not be 
denied a claimant on the basis that the claimant does not have a 
mailing address. 

(Added Pub. L. 106-475, Sec. 3(b), Nov. 9, 2000, 114 Stat. 2098.) 


CHAPTER 53 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


729 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½


CHAPTER 53-SPECIAL PROVISIONS RELATING TO 
BENEFITS


Sec. 
5301. Nonassignability and exempt status of benefits. 
5302. Waiver of recovery of claims by the United States. 
5302A. Collection of indebtedness: certain debts of members of the 
Armed Forces 


and veterans who die of injury incurred or aggravated in the line of 

duty in a combat zone. 
5303. Certain bars to benefits. 
5303A. Minimum active-duty service requirement. 
5304. Prohibition against duplication of benefits. 
5305. Waiver of retired pay. 
5306. Renouncement of right to benefits. 
5307. Apportionment of benefits. 
5308. Withholding benefits of persons in territory of the enemy. 
5309. Payment of certain withheld benefits. 
5310. Payment of benefits for month of death. 
5311. Prohibition of certain benefit payments. 
5312. Annual adjustment of certain benefit rates. 
5313. Limitation on payment of compensation and dependency and 
indemnity 

compensation to persons incarcerated for conviction of a felony. 
5313A. Limitation on payment of clothing allowance to incarcerated 
veterans. 
5313B. Prohibition on providing certain benefits with respect to 
persons who are 

fugitive felons. 
5314. Indebtedness offsets. 
5315. Interest and administrative cost charges on delinquent payments 
of cer

tain amounts due the United States. 
5316. Authority to sue to collect certain debts. 
5317. Use of income information from other agencies: notice and 
verification. 
5317A. Use of income information from other agencies: independent 
verification 

required before termination or reduction of certain benefits and 
services. 
5318. Review of Social Security Administration death information. 
5319. Limitations on access to financial records. 

ï¿½ 5301. Nonassignability and exempt status of benefits 

(a)(1) Payments of benefits due or to become due under any 
law administered by the Secretary shall not be assignable except 
to the extent specifically authorized by law, and such payments 
made to, or on account of, a beneficiary shall be exempt from taxation, 
shall be exempt from the claim of creditors, and shall not be 
liable to attachment, levy, or seizure by or under any legal or 
equitable process whatever, either before or after receipt by the 
beneficiary. The preceding sentence shall not apply to claims of the 
United States arising under such laws nor shall the exemption 
therein contained as to taxation extend to any property purchased 
in part or wholly out of such payments. The provisions of this section 
shall not be construed to prohibit the assignment of insurance 

731 


Sec. 5301 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 732 

otherwise authorized under chapter 19 of this title, or of 
servicemenï¿½s indemnity. 

(2) For the purposes of this subsection, in any case where a 
payee of an educational assistance allowance has designated the 
address of an attorney-in-fact as the payeeï¿½s address for the purpose 
of receiving a benefit check and has also executed a power of 
attorney giving the attorney-in-fact authority to negotiate such 
benefit check, such action shall be deemed to be an assignment and 
is prohibited. 
(3)(A) This paragraph is intended to clarify that, in any case 
where a beneficiary entitled to compensation, pension, or dependency 
and indemnity compensation enters into an agreement with 
another person under which agreement such other person acquires 
for consideration the right to receive such benefit by payment of 
such compensation, pension, or dependency and indemnity compensation, 
as the case may be, except as provided in subparagraph 
(B), and including deposit into a joint account from which such 
other person may make withdrawals, or otherwise, such agreement 
shall be deemed to be an assignment and is prohibited. 

(B) Notwithstanding subparagraph (A), nothing in this paragraph is 
intended to prohibit a loan involving a beneficiary under 
the terms of which the beneficiary may use the benefit to repay 
such other person as long as each of the periodic payments made 
to repay such other person is separately and voluntarily executed 
by the beneficiary or is made by preauthorized electronic funds 
transfer pursuant to the Electronic Funds Transfers Act (15 U.S.C. 
1693 et seq.). 
(C) Any agreement or arrangement for collateral for security 
for an agreement that is prohibited under subparagraph (A) is also 
prohibited and is void from its inception. 
(b) This section shall prohibit the collection by setoff or otherwise 
out of any benefits payable pursuant to any law administered 
by the Secretary and relating to veterans, their estates, or their 
dependents, of any claim of the United States or any agency thereof 
against (1) any person other than the indebted beneficiary or the 
beneficiaryï¿½s estate; or (2) any beneficiary or the beneficiaryï¿½s 
estate except amounts due the United States by such beneficiary or 
the beneficiaryï¿½s estate by reason of overpayments or illegal payments 
made under such laws to such beneficiary or the beneficiaryï¿½s estate or 
to the beneficiaryï¿½s dependents as such. If the 
benefits referred to in the preceding sentence are insurance payable by 
reason of yearly renewable term insurance, United States 
Government life insurance, or National Service Life Insurance 
issued by the United States, the exemption provided in this section 
shall not apply to indebtedness existing against the particular 
insurance contract upon the maturity of which the claim is based, 
whether such indebtedness is in the form of liens to secure unpaid 
premiums or loans, or interest on such premiums or loans, or 
indebtedness arising from overpayments of dividends, refunds, loans, 
or other insurance benefits. 
(c)(1) Notwithstanding any other provision of this section, the 
Secretary may, after receiving a request under paragraph (2) of 
this subsection relating to a veteran, collect by offset of any 
compensation or pension payable to the veteran under laws adminis


733 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5301 

tered by the Secretary the uncollected portion of the amount of any 
indebtedness associated with the veteranï¿½s participation in a plan 
prescribed in chapter 73 of title 10. 

(2) If the Secretary concerned (as defined in section 101(5) of 
title 37) has tried under section 3711(a) of title 31 to collect an 
amount described in paragraph (1) of this subsection in the case of 
any veteran, has been unable to collect such amount, and has determined 
that the uncollected portion of such amount is not collectible from 
amounts payable by that Secretary to the veteran or that 
the veteran is not receiving any payment from that Secretary, that 
Secretary may request the Secretary to make collections in the case 
of such veteran as authorized in paragraph (1) of this subsection. 
(3)(A) A collection authorized by paragraph (1) of this subsection 
shall be conducted in accordance with the procedures prescribed in 
section 3716 of title 31 for administrative offset collections made 
after attempts to collect claims under section 3711(a) of 
such title. 

(B) For the purposes of subparagraph (A) of this paragraph, as 
used in the second sentence of section 3716(a) of title 31- 
(i) the term ï¿½ï¿½records of the agencyï¿½ï¿½ shall be considered to 
refer to the records of the department of the Secretary concerned; and 
(ii) the term ï¿½ï¿½agencyï¿½ï¿½ in clauses (3) and (4) shall be considered to 
refer to such department. 
(4) Funds collected under this subsection shall be credited to 
the Department of Defense Military Retirement Fund under chapter 74 of 
title 10 or to the Retired Pay Account of the Coast Guard, 
as appropriate. 
(d) Notwithstanding subsection (a) of this section, payments of 
benefits under laws administered by the Secretary shall not be exempt 
from levy under subchapter D of chapter 64 of the Internal 
Revenue Code of 1986 (26 U.S.C. 6331 et seq.). 
(e) In the case of a person who- 
(1) has been determined to be eligible to receive pension or 
compensation under laws administered by the Secretary but 
for the receipt by such person of pay pursuant to any provision 
of law providing retired or retirement pay to members or 
former members of the Armed Forces or commissioned officers 
of the National Oceanic and Atmospheric Administration or of 
the Public Health Service; and 
(2) files a waiver of such pay in accordance with section 
5305 of this title in the amount of such pension or compensation before 
the end of the one-year period beginning on the 
date such person is notified by the Secretary of such personï¿½s 
eligibility for such pension or compensation, 
the retired or retirement pay of such person shall be exempt from 
taxation, as provided in subsection (a) of this section, in an amount 
equal to the amount of pension or compensation which would have 
been paid to such person but for the receipt by such person of such 
pay. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1229, Sec. 3101; Pub. L. 
94-502, title VII, Sec. 701, Oct. 15, 1976, 90 Stat. 2405; Pub. L. 
95-479, title III, Sec. 301, Oct. 18, 1978, 92 Stat. 1564; Pub. L. 
97-295, Sec. 4(74), Oct. 12, 1982, 96 Stat. 1310; Pub. 

L. 99-576, title V, Sec. 504, title VII, Sec. 701(68), Oct. 28, 1986, 
100 Stat. 3286, 

Sec. 5302 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 734 

3296; Pub. L. 101-189, div. A, title XIV, Sec. 1404(b)(2), Nov. 29, 
1989, 103 Stat. 1586; Pub. L. 102-25, title VII, Sec. 705(c)(2), Apr. 
6, 1991, 105 Stat. 120; renumbered Sec. 5301 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-54, Sec. 14(d)(2), June 13, 1991, 105 Stat. 285; 
Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(vii), (b)(1), (2)(E), (4)(C), 
Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 102-86, title V, Sec. 
505(a), Aug. 14, 1991, 105 Stat. 426; Pub. L. 108-183, title VII, 
Sec. 702, Dec. 16, 2003, 117 Stat. 2671.) 

ï¿½ 5302. Waiver of recovery of claims by the United States 

(a) There shall be no recovery of payments or overpayments (or 
any interest thereon) of any benefits under any of the laws 
administered by the Secretary whenever the Secretary determines that 
recovery would be against equity and good conscience, if an application 
for relief is made within 180 days from the date of notification of the 
indebtedness by the Secretary to the payee, or within 
such longer period as the Secretary determines is reasonable in a 
case in which the payee demonstrates to the satisfaction of the 
Secretary that such notification was not actually received by such 
payee within a reasonable period after such date. The Secretary 
shall include in the notification to the payee a statement of the 
right of the payee to submit an application for a waiver under this 
subsection and a description of the procedures for submitting the 
application. 
(b) With respect to any loan guaranteed, insured, or made 
under chapter 37 of this title, the Secretary shall, except as provided 
in subsection (c) of this section, waive payment of an indebtedness to 
the Department by the veteran (as defined in sections 
101, 3701, and 3702(a)(2)(C)(ii) of this title), or the veteranï¿½s 
spouse, following default and loss of the property, where the Secretary 
determines that collection of such indebtedness would be 
against equity and good conscience. An application for relief under 
this subsection must be made within one year after the date on 
which the veteran receives notice by certified mail with return receipt 
requested from the Secretary of the indebtedness. The Secretary shall 
include in the notification a statement of the right of the veteran to 
submit an application for a waiver under this subsection and a 
description of the procedures for submitting the application. 
(c) The recovery of any payment or the collection of any indebtedness 
(or any interest thereon) may not be waived under this section if, in 
the Secretaryï¿½s opinion, there exists in connection with 
the claim for such waiver an indication of fraud, misrepresentation 
or bad faith on the part of the person or persons having an interest 
in obtaining a waiver of such recovery or the collection of such 
indebtedness (or any interest thereon). 
(d) No certifying or disbursing officer shall be liable for any 
amount paid to any person where the recovery of such amount is 
waived under subsection (a) or (b). 
(e) Where the recovery of a payment or overpayment made 
from the National Service Life Insurance Fund or United States 
Government Life Insurance Fund is waived under this section, the 
fund from which the payment was made shall be reimbursed from 
the National Service Life Insurance appropriation or the military 
and naval insurance appropriation, as applicable. 

735 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5303 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1230, Sec. 3102; Pub. L. 
92-328, title II, Sec. 202(a), June 30, 1972, 86 Stat. 396; Pub. L. 
96-466, title VI, Sec. 605(c)(3), Oct. 17, 1980, 94 Stat. 2211; Pub. 
L. 97-306, title IV, Sec. 407(a), Oct. 14, 1982, 96 Stat. 1445; Pub. L. 
99-576, title VII, Sec. 701(69), Oct. 28, 1986, 100 Stat. 3296; Pub. L. 
101-237, title III, Sec. 311, Dec. 18, 1989, 103 Stat. 2075; renumbered 
Sec. 5302, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102- 54, Sec. 5, June 13, 1991, 105 Stat. 268; Pub. 
L. 102-83, Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 
1991, 105 Stat. 403-406; Pub. L. 102-547, Sec. 12, Oct. 28, 1992, 106 
Stat. 3645; Pub. L. 105-33, title VIII, Sec. 8033(b), Aug. 5, 1997, 
111 Stat. 669.) 

ï¿½ 5302A. Collection of indebtedness: certain debts of members of the 
Armed Forces and veterans who die of 
injury incurred or aggravated in the line of duty ina combat zone 

(a) LIMITATION ON AUTHORITY.-The Secretary may not collect 
all or any part of an amount owed to the United States by a member of 
the Armed Forces or veteran described in subsection (b) 
under any program under the laws administered by the Secretary, 
other than a program referred to in subsection (c), if the Secretary 
determines that termination of collection is in the best interest of 
the United States. 
(b) COVERED INDIVIDUALS.-A member of the Armed Forces or 
veteran described in this subsection is any member or veteran who 
dies as a result of an injury incurred or aggravated in the line of 
duty while serving in a theater of combat operations (as determined by 
the Secretary in consultation with the Secretary of Defense) in a war 
or in combat against a hostile force during a period 
of hostilities (as that term is defined in section 1712A(a)(2)(B) of 
this title) after September 11, 2001. 
(c) INAPPLICABILITY TO HOUSING AND SMALL BUSINESS BENEFIT 
PROGRAMS.-The limitation on authority in subsection (a) shall not 
apply to any amounts owed the United States under any program 
carried out under chapter 37 of this title. 
(Added Pub. L. 110-252, title I, Sec. 1303(a)(1), June 30, 2008, 122 
Stat. 2327.) 

ï¿½ 5303. Certain bars to benefits 

(a) The discharge or dismissal by reason of the sentence of a 
general court-martial of any person from the Armed Forces, or the 
discharge of any such person on the ground that such person was 
a conscientious objector who refused to perform military duty or refused 
to wear the uniform or otherwise to comply with lawful orders of 
competent military authority, or as a deserter, or on the 
basis of an absence without authority from active duty for a continuous 
period of at least one hundred and eighty days if such person 
was discharged under conditions other than honorable unless such 
person demonstrates to the satisfaction of the Secretary that there 
are compelling circumstances to warrant such prolonged unauthorized 
absence, or of an officer by the acceptance of such officerï¿½s 
resignation for the good of the service, or (except as provided in 
subsection (c)) the discharge of any individual during a period of 
hostilities as an alien, shall bar all rights of such person under laws 
administered by the Secretary based upon the period of service 
from which discharged or dismissed, notwithstanding any action 
subsequent to the date of such discharge by a board established 
pursuant to section 1553 of title 10. 

Sec. 5303 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 736 

(b) Notwithstanding subsection (a), if it is established to the 
satisfaction of the Secretary that, at the time of the commission of 
an offense leading to a personï¿½s court-martial, discharge, or 
resignation, that person was insane, such person shall not be precluded 
from benefits under laws administered by the Secretary 
based upon the period of service from which such person was separated. 
(c) Subsection (a) shall not apply to any alien whose service 
was honest and faithful, and who was not discharged on the individualï¿½s 
own application or solicitation as an alien. No individual 
shall be considered as having been discharged on the individualï¿½s 
own application or solicitation as an alien in the absence of 
affirmative evidence establishing that the individual was so discharged. 
(d) This section shall not apply to any war-risk insurance, Government 
(converted) or National Service Life Insurance policy. 
(e)(1) Notwithstanding any other provision of law, (A) no benefits 
under laws administered by the Secretary shall be provided, as 
a result of a change in or new issuance of a discharge under section 
1553 of title 10, except upon a case-by-case review by the board of 
review concerned, subject to review by the Secretary concerned, 
under such section, of all the evidence and factors in each case 
under published uniform standards (which shall be historically 
consistent with criteria for determining honorable service and shall 
not include any criterion for automatically granting or denying 
such change or issuance) and procedures generally applicable to all 
persons administratively discharged or released from active military, 
naval, or air service under other than honorable conditions; 
and (B) any such person shall be afforded an opportunity to apply 
for such review under such section 1553 for a period of time 
terminating not less than one year after the date on which such uniform 
standards and procedures are promulgated and published. 

(2) Notwithstanding any other provision of law- 
(A) no person discharged or released from active military, 
naval, or air service under other than honorable conditions 
who has been awarded a general or honorable discharge under 
revised standards for the review of discharges, (i) as implemented by 
the Presidentï¿½s directive of January 19, 1977, initiating further 
action with respect to the Presidentï¿½s Proclamation 4313 of September 
16, 1974, (ii) as implemented on or 
after April 5, 1977, under the Department of Defenseï¿½s special 
discharge review program, or (iii) as implemented subsequent 
to April 5, 1977, and not made applicable to all persons 
administratively discharged or released from active military, naval, 
or air service under other than honorable conditions, shall be 
entitled to benefits under laws administered by the Secretary 
except upon a determination, based on a case-by-case review, 
under standards (meeting the requirements of paragraph (1) of 
this subsection) applied by the board of review concerned 
under section 1553 of title 10, subject to review by the Secretary 
concerned, that such person would be awarded an upgraded discharge 
under such standards; and 
(B) such determination shall be made by such board (i) on 
an expedited basis after notification by the Department to the 
Secretary concerned that such person has received, is in receipt 

737 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5303A 

of, or has applied for such benefits or after a written request 
is made by such person or such determination, (ii) on its own 
initiative before October 9, 1978, in any case where a general 
or honorable discharge has been awarded before October 9, 
1977, under revised standards referred to in clause (A)(i), (ii), 
or (iii) of this paragraph, or (iii) on its own initiative at the 
time a general or honorable discharge is so awarded in any 
case where a general or honorable discharge is awarded after 
October 8, 1977. 

If such board makes a preliminary determination that such person 
would not have been awarded an upgraded discharge under standards 
meeting the requirements of paragraph (1) of this subsection, 
such person shall be entitled to an appearance before the board, as 
provided for in section 1553(c) of title 10, prior to a final 
determination on such question and shall be given written notice by the 
board of such preliminary determination and of the right to such 
appearance. The Secretary shall, as soon as administratively feasible, 
notify the appropriate board of review of the receipt of benefits under 
laws administered by the Secretary, or of the application 
for such benefits, by any person awarded an upgraded discharge 
under revised standards referred to in clause (A)(i), (ii), or (iii) of 
this paragraph with respect to whom a favorable determination has 
not been made under this paragraph. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1230, Sec. 3103; Pub. L. 
86-113, July 28, 1959, 73 Stat. 262; Pub. L. 95-126, Sec. 1(a), Oct. 8, 
1977, 91 Stat. 1106; Pub. L. 97-295, Sec. 4(75), Oct. 12, 1982, 96 Stat. 
1310; Pub. L. 99-576, title VII, Sec. 701(70), Oct. 28, 1986, 100 Stat. 
3296; renumbered Sec. 5303, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), (3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405.) 

ï¿½ 5303A. Minimum active-duty service requirement 

(a) Notwithstanding any other provision of law, any requirements for 
eligibility for or entitlement to any benefit under this 
title or any other law administered by the Secretary that are based 
on the length of active duty served by a person who initially enters 
such service after September 7, 1980, shall be exclusively as prescribed 
in this title. 
(b)(1) Except as provided in paragraph (3) of this subsection, 
a person described in paragraph (2) of this subsection who is 
discharged or released from a period of active duty before completing 
the shorter of- 

(A) 24 months of continuous active duty, or 
(B) the full period for which such person was called or or
dered to active duty, 
is not eligible by reason of such period of active duty for any benefit 
under this title or any other law administered by the Secretary. 

(2) Paragraph (1) of this subsection applies- 
(A) to any person who originally enlists in a regular component of 
the Armed Forces after September 7, 1980; and 
(B) to any other person who enters on active duty after October 16, 
1981, and has not previously completed a continuous 
period of active duty of at least 24 months or been discharged 
or released from active duty under section 1171 of title 10. 
(3) Paragraph (1) of this subsection does not apply- 

Sec. 5303A CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 738 

(A) to a person who is discharged or released from active 
duty under section 1171 or 1173 of title 10; 
(B) to a person who is discharged or released from active 
duty for a disability incurred or aggravated in line of duty; 
(C) to a person who has a disability that the Secretary has 
determined to be compensable under chapter 11 of this title; 
(D) to the provision of a benefit for or in connection with 
a service-connected disability, condition, or death; 
(E) to benefits under chapter 19 of this title; 
(F) to benefits under chapter 30 or chapter 37 of this title 
by reason of- 
(i) a discharge or release from active duty for the convenience of 
the Government, as described in sections 
3011(a)(1)(A)(ii)(II) and 3012(b)(1)(A)(iv) of this title; 
(ii) a discharge or release from active duty for a medical condition 
which preexisted service on active duty and 
which the Secretary determines is not service connected, 
as described in clauses (A)(ii)(I) and (B)(ii)(I) of section 
3011(a)(1) of this title and in section 3012(b)(1)(A)(ii) of 
this title; 
(iii) an involuntary discharge or release from active 
duty for the convenience of the Government as a result of 
a reduction in force, as described in clauses (A)(ii)(III) and 
(B)(ii)(III) of section 3011(a)(1) of this title and in section 
3012(b)(1)(A)(v) of this title; or 
(iv) a discharge or release from active duty for a physical or mental 
condition that was not characterized as a 
disability and did not result from the individualï¿½s own willful 
misconduct but did interfere with the individualï¿½s performance of 
duty, as described in section 3011(a)(1)(A)(ii)(I) 
of this title; or 
(G) to benefits under chapter 43 of this title. 
(c)(1) Except as provided in paragraph (2) of this subsection, no 
dependent or survivor of a person as to whom subsection (b) of this 
section requires the denial of benefits shall, by reason of such 
personï¿½s period of active duty, be provided with any benefit under this 
title or any other law administered by the Secretary. 

(2) Paragraph (1) of this subsection does not apply to benefits 
under chapters 19 and 37 of this title. 
(d)(1) Notwithstanding any other provision of law and except 
as provided in paragraph (3) of this subsection, a person described 
in paragraph (2) of this subsection who is discharged or released 
from a period of active duty before completing the shorter of- 

(A) 24 months of continuous active duty, or 
(B) the full period for which such person was called or or
dered to active duty, 
is not eligible by reason of such period of active duty for any benefit 
under Federal law (other than this title or any other law administered 
by the Secretary), and no dependent or survivor of such 
person shall be eligible for any such benefit by reason of such period 
of active duty of such person. 

(2) Paragraph (1) of this subsection applies- 
(A) to any person who originally enlists in a regular component of the 
Armed Forces after September 7, 1980; and 

739 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5304 

(B) to any other person who enters on active duty after October 13, 
1982, and has not previously completed a continuous 
period of active duty of at least 24 months or been discharged 
or released from active duty under section 1171 of title 10. 
(3) Paragraph (1) of this subsection does not apply- 
(A) to any person described in clause (A), (B), or (C) of subsection 
(b)(3) of this section; or 
(B) with respect to a benefit under (i) the Social Security 
Act other than additional wages deemed to have been paid, 
under section 229(a) of the Social Security Act (42 U.S.C. 
429(a)), for any calendar quarter beginning after October 13, 
1982, or (ii) title 5 other than a benefit based on meeting the 
definition of preference eligible in section 2108(3) of such title. 
(e) For the purposes of this section, the term ï¿½ï¿½benefitï¿½ï¿½ includes 
a right or privilege, but does not include a refund of a participantï¿½s 
contributions to the educational benefits program provided by chapter 
32 of this title. 
(f) Nothing in this section shall be construed to deprive any 
person of any procedural rights, including any rights to assistance 
in applying for or claiming a benefit. 
(Added Pub. L. 97-66, title VI, Sec. 604(a)(1), Oct. 17, 1981, 95 Stat. 
1035, Sec. 3103A; amended Pub. L. 97-306, title IV, Sec. 408(a), Oct. 
14, 1982, 96 Stat. 1445; Pub. L. 99-576, title III, Sec. 321(11), Oct. 
28, 1986, 100 Stat. 3278; Pub. L. 100- 689, title I, Sec. 102(b)(3), 
Nov. 18, 1988, 102 Stat. 4163; Pub. L. 101-510, div. A, title V, Sec. 
562(a)(4), Nov. 5, 1990, 104 Stat. 1574; renumbered Sec. 5303A, Pub. 
L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 
L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 
Stat. 403-406; Pub. L. 103-353, Sec. 3, Oct. 13, 1994, 108 Stat. 
3169; Pub. L. 103-446, title IX, Sec. 908, Nov. 2, 1994, 
108 Stat. 4678; Pub. L. 105-368, title X, Sec. 1005(b)(15), Nov. 11, 
1998, 112 Stat. 
3365.) 
ï¿½ 5304. Prohibition against duplication of benefits 

(a)(1) Except as provided in section 1414 of title 10 or to the 
extent that retirement pay is waived under other provisions of law, 
not more than one award of pension, compensation, emergency officersï¿½, 
regular, or reserve retirement pay, or initial award of naval 
pension granted after July 13, 1943, shall be made concurrently to 
any person based on such personï¿½s own service or concurrently to 
any person based on the service of any other person. 

(2) Notwithstanding the provisions of paragraph (1) of this subsection 
and of section 5305 of this title, pension under section 1521 
or 1541 of this title may be paid to a person entitled to receive 
retired or retirement pay described in section 5305 of this title 
concurrently with such personï¿½s receipt of such retired or retirement 
pay if the annual amount of such retired or retirement pay is 
counted as annual income for the purposes of chapter 15 of this 
title. 
(b)(1) Except as provided in paragraphs (2) and (3) of this subsection 
and in section 1521(i) of this title, the receipt of pension, 
compensation, or dependency and indemnity compensation by a 
surviving spouse, child, or parent on account of the death of any 
person, or receipt by any person of pension or compensation on account 
of such personï¿½s own service, shall not bar the payment of 
pension, compensation, or dependency and indemnity compensation 
on account of the death or disability of any other person. 


Sec. 5305 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 740 

(2) Benefits other than insurance under laws administered by 
the Secretary may not be paid or furnished to or on account of any 
child by reason of the death of more than one parent in the same 
parental line; however, the child may elect one or more times to 
receive benefits by reason of the death of any one of such parents. 
(3) Benefits other than insurance under laws administered by 
the Secretary may not be paid to any person by reason of the death 
of more than one person to whom such person was married; however, the 
person may elect one or more times to receive benefits by 
reason of the death of any one spouse. 
(c) Pension, compensation, or retirement pay on account of any 
personï¿½s own service shall not be paid to such person for any period 
for which such person receives active service pay. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1230, Sec. 3104; Pub. L. 
86-495, Sec. 1, June 8, 1960, 74 Stat. 163; Pub. L. 88-664, Sec. 9, 
Oct. 13, 1964, 78 Stat. 1096; Pub. L. 91-376, Sec. 6, Aug. 12, 1970, 
84 Stat. 790; Pub. L. 95-588, title III, Sec. 304, Nov. 4, 1978, 92 
Stat. 2507; Pub. L. 96-385, title V, Sec. 503(a), Oct. 7, 1980, 94 
Stat. 1534; Pub. L. 99-576, title VII, Sec. 701(71), Oct. 28, 1986, 
100 Stat. 3297; renumbered Sec. 5304 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-83, Sec. 4(a)(1), 5(c)(1), Aug. 6, 1991, 105 Stat. 403, 
406; Pub. L. 108-454, title III, Sec. 308(a), Dec. 10, 2004, 118 Stat. 
3614.) 

ï¿½ 5305. Waiver of retired pay 

Except as provided in section 1414 of title 10, any person who 
is receiving pay pursuant to any provision of law providing retired 
or retirement pay to persons in the Armed Forces, or as a commissioned 
officer of the National Oceanic and Atmospheric Administration or of 
the Public Health Service, and who would be eligible to 
receive pension or compensation under the laws administered by 
the Secretary if such person were not receiving such retired or 
retirement pay, shall be entitled to receive such pension or 
compensation upon the filing by such person with the department by 
which such retired or retirement pay is paid of a waiver of so much 
of such personï¿½s retired or retirement pay as is equal in amount to 
such pension or compensation. To prevent duplication of payments, 
the department with which any such waiver is filed shall notify the 
Secretary of the receipt of such waiver, the amount waived, and the 
effective date of the reduction in retired or retirement pay. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1231, Sec. 3105; Pub. L. 
91-621, Sec. 6(a)(3), Dec. 31, 1970, 84 Stat. 1864; Pub. L. 99-576, 
title VII, Sec. 701(72), Oct. 28, 1986, 100 Stat. 3297; renumbered 
Sec. 5305, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 
105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(viii), Aug. 6, 
1991, 105 Stat. 403; Pub. L. 108-454, title III, Sec. 308(b), Dec. 
10, 2004, 118 Stat. 3614.) 

ï¿½ 5306. Renouncement of right to benefits 

(a) Any person entitled to pension, compensation, or dependency and 
indemnity compensation under any of the laws administered by the 
Secretary may renounce the right thereto. The application renouncing 
the right shall be in writing over the personï¿½s signature. Upon the 
filing of such an application, payment of such benefits and the right 
thereto shall be terminated, and such person shall be denied any and 
all rights thereto from such filing. (b) Renouncement of rights shall 
not preclude any person from filing a new application for pension, 
compensation, or dependency and indemnity compensation at a later 
date, but such new applica

741 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5308 

tion shall be treated as an original application, and no payments 
shall be made for any period before the date such new application 
is filed. 

(c) Notwithstanding subsection (b), if a new application for 
pension under chapter 15 of this title or for dependency and indemnity 
compensation for parents under section 1315 of this title is 
filed within one year after renouncement of that benefit, such 
application shall not be treated as an original application and 
benefits will be payable as if the renouncement had not occurred. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1231, Sec. 3106; Pub. L. 
99-576, title VII, Sec. 701(73), Oct. 28, 1986, 100 Stat. 3297; 
renumbered Sec. 5306, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991, 105 
Stat. 403; Pub. L. 103-446, title V, Sec. 503, Nov. 2, 1994, 108 Stat. 
4663.) 

ï¿½ 5307. Apportionment of benefits 

(a) All or any part of the compensation, pension, or emergency 
officersï¿½ retirement pay payable on account of any veteran may- 
(1) if the veteran is being furnished hospital treatment, institutional, 
or domiciliary care by the United States, or any political subdivision 
thereof, be apportioned on behalf of the veteranï¿½s spouse, children, or 
dependent parents; and 
(2) if the veteran is not living with the veteranï¿½s spouse, 
or if the veteranï¿½s children are not in the custody of the veteran, be 
apportioned as may be prescribed by the Secretary. 
(b) Where any of the children of a deceased veteran are not in 
the custody of the veteranï¿½s surviving spouse, the pension, 
compensation, or dependency and indemnity compensation otherwise 
payable to the surviving spouse may be apportioned as prescribed 
by the Secretary. 
(c) If a veteran is not living with the veteranï¿½s spouse, or if any 
of the veteranï¿½s children are not in the custody of the veteran, any 
subsistence allowance payable to the veteran under chapter 31 of 
this title or that portion of the educational assistance allowance 
payable on account of dependents under chapter 34 of this title 
may be apportioned as may be prescribed by the Secretary. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1231, Sec. 3107; Pub. L. 
92-540, title V, Sec. 505, Oct. 24, 1972, 86 Stat. 1099; Pub. L. 
98-160, title VII, Sec. 703(2), Nov. 21, 1983, 97 Stat. 1010; 
renumbered Sec. 5307, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 5308. Withholding benefits of persons in territory of the 
enemy 

(a) When any alien entitled to gratuitous benefits under laws 
administered by the Secretary is located in territory of, or under 
military control of, an enemy of the United States or of any of its 
allies, any award of such benefits in favor of such alien shall be 
terminated forthwith. 
(b) Any alien whose award is terminated under subsection (a) 
shall not thereafter be entitled to any such gratuitous benefits 
except upon the filing of a new claim, accompanied by evidence 
satisfactory to the Secretary showing that such alien was not guilty of 
mutiny, treason, sabotage, or rendering assistance to such enemy. 
Except as provided in section 5309 of this title, such gratuitous 

Sec. 5309 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 742 

benefits shall not be paid for any period before the date the new 
claim is filed. 

(c) While such alien is located in territory of, or under military 
control of, an enemy of the United States or of any of its allies, the 
Secretary, in the Secretaryï¿½s discretion, may apportion and pay any 
part of such benefits to the dependents of such alien. No dependent 
of such alien shall receive benefits by reason of this subsection in 
excess of the amount to which the dependent would be entitled if 
such alien were dead. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1231, Sec. 3108; Pub. L. 
99-576, title VII, Sec. 701(74), Oct. 28, 1986, 100 Stat. 3297; 
renumbered Sec. 5308 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405.) 
ï¿½ 5309. Payment of certain withheld benefits 

(a) Any person who, but for section 5308 of this title, was entitled to 
benefits under any of the laws administered by the Secretary, whose 
award of benefits was terminated under such section, or whose benefits 
were not paid pursuant to sections 3329 and 3330 of title 31, and who 
was not guilty of mutiny, treason, sabotage, or rendering assistance to 
an enemy of the United States or its allies, shall be paid the full 
amount of any benefits not paid because of such section 5308, or 
withheld (including the amount of any checks covered on such personï¿½s 
account into the Treasury as miscellaneous receipts together with any 
amount to such personï¿½s credit in the special-deposit account) pursuant 
to sections 3329 and 3330 of title 31. The Secretary shall certify to 
the Secretary of the Treasury the amounts of payments which, but for 
this section, would have been made from the special deposit account, 
and the Secretary of the Treasury, as directed by the Secretary, shall 
reimburse the appropriations of the Department from such special 
deposit account, or cover into the Treasury as miscellaneous receipts 
the amounts so certified. 
(b) No payments shall be made for any period before the date 
claim therefor is filed under this section to any person whose 
award was terminated, or whose benefits were not paid, before July 
1, 1954, because such person was a citizen or subject of Germany 
or Japan residing in Germany or Japan. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1232, Sec. 3109; Pub. L. 
97-258, Sec. 3(k)(4), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 99-576, 
title VII, Sec. 701(75), Oct. 28, 1986, 100 Stat. 3297; renumbered 
Sec. 5309 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), 
(d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(1), 
(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405.) 

ï¿½ 5310. Payment of benefits for month of death 

(a) If, in accordance with the provisions of section 5110(d) of 
this title, a surviving spouse is entitled to death benefits under 
chapter 11, 13, or 15 of this title for the month in which a veteranï¿½s 
death occurs, the amount of such death benefits for that month 
shall be not less than the amount of benefits the veteran would 
have received under chapter 11 or 15 of this title for that month 
but for the death of the veteran. 
(b)(1) If the surviving spouse of a veteran who was in receipt 
of compensation or pension at the time of death is not entitled to 
death benefits under chapter 11, 13, or 15 of this title for the 


743 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5312 

month in which the veteranï¿½s death occurs, that surviving spouse 
shall be entitled to a benefit for that month in the amount of benefits 
the veteran would have received under chapter 11 or 15 of this 
title for that month but for the death of the veteran. 

(2) If (notwithstanding section 5112(b)(1) of this title) a check 
or other payment is issued to, and in the name of, the deceased 
veteran as a benefit payment under chapter 11 or 15 of this title 
for the month in which death occurs, that check or other payment 
(A) shall be treated for all purposes as being payable to the surviving 
spouse, and (B) if that check or other payment is negotiated 
or deposited, shall be considered to be the benefit to which the 
surviving spouse is entitled under paragraph (1). However, if such 
check or other payment is in an amount less than the amount of 
the benefit under paragraph (1), the unpaid amount shall be treated in 
the same manner as an accrued benefit under section 5121 
of this title. 
(Added Pub. L. 87-825, Sec. 4(a), Oct. 15, 1962, 76 Stat. 950, Sec. 3110; 
amended 
Pub. L. 98-160, title VII, Sec. 703(3), Nov. 21, 1983, 97 Stat. 1010; 
renumbered Sec. 5310 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 
Stat. 238, 239; Pub. L. 104-275, title V, Sec. 506(a), Oct. 9, 1996, 
110 Stat. 3343; 
Pub. L. 105-114, title IV, Sec. 401(f), Nov. 21, 1997, 111 Stat. 2294.) 

ï¿½ 5311. Prohibition of certain benefit payments 

There shall be no payment of dependency and indemnity compensation, 
death compensation, or death pension which, because of 
a widowï¿½s relationship with another man before enactment of Public Law 
87-674, would not have been payable by the Veteransï¿½ Administration 
under the standard for determining remarriage applied by that agency 
before said enactment. 

(Added Pub. L. 91-376, Sec. 8(b), Aug. 12, 1970, 84 Stat. 790, Sec. 
3111; renumbered Sec. 5311, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238.) 

ï¿½ 5312. Annual adjustment of certain benefit rates 

(a) Whenever there is an increase in benefit amounts payable 
under title II of the Social Security Act (42 U.S.C. 401 et seq.) as 
a result of a determination made under section 215(i) of such Act 
(42 U.S.C. 415(i)), the Secretary shall, effective on the date of such 
increase in benefit amounts, increase each maximum annual rate 
of pension under sections 1521, 1541, and 1542 of this title, the 
rate of increased pension paid under such sections 1521 and 1541 
on account of children, and each rate of monthly allowance paid 
under section 1805 of this title, as such rates were in effect 
immediately prior to the date of such increase in benefit amounts 
payable under title II of the Social Security Act, by the same 
percentage as the percentage by which such benefit amounts are increased. 
(b)(1) Whenever there is an increase in benefit amounts payable under 
title II of the Social Security Act (42 U.S.C. 401 et seq.) 
as a result of a determination made under section 215(i) of such 
Act (42 U.S.C. 415(i)), the Secretary shall, effective on the date of 
such increase in benefit amounts, increase the maximum monthly 
rates of dependency and indemnity compensation for parents payable under 
subsections (b), (c), and (d), and the monthly rate provided in 
subsection (g), of section 1315 of this title and the annual 


Sec. 5313 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 744 

income limitations prescribed in subsections (b)(3), (c)(3), and (d)(3) 
of such section, and the annual benefit amount limitations under 
sections 5507(c)(2)(D) and 5508 of this title, as such rates and 
limitations were in effect immediately prior to the date of such increase 
in benefit amounts payable under title II of the Social Security Act, 
by the same percentage as the percentage by which such benefit 
amounts are increased. 

(2)(A) Whenever there is an increase under paragraph (1) of 
this subsection in such rates and annual income limitations, the 
Secretary shall, effective on the date of such increase in such rates 
and limitations, adjust (as provided in subparagraph (B) of this 
paragraph) the rates of dependency and indemnity compensation 
payable under subsection (b)(1) or (c)(1) of section 1315 of this title 
to any parent whose annual income is more than $800 but not 
more than the annual income limitation in effect under subsection 
(b)(3) or (c)(3) of such section, as appropriate, and adjust the rates 
of such compensation payable under subsection (d)(1) of such section to 
any parent whose annual income is more than $1,000 but 
not more than the annual income limitation in effect under subsection 
(d)(3) of such section. 

(B) The adjustment in rates of dependency and indemnity compensation 
referred to in subparagraph (A) of this paragraph shall 
be made by the Secretary in accordance with regulations which the 
Secretary shall prescribe. 
(c)(1) Whenever there is an increase under subsection (a) in 
benefit rates payable under sections 1521, 1541, 1542, and 1805 of 
this title and an increase under subsection (b) in benefit rates and 
annual income limitations under section 1315 of this title, the 
Secretary shall publish such rates and limitations (including those 
rates adjusted by the Secretary under subsection (b)(2) of this 
section), as increased pursuant to such subsections, in the Federal 
Register at the same time as the material required by section 
215(i)(2)(D) of the Social Security Act (42 U.S.C. 415(i)(2)(D)) is 
published by reason of a determination under section 215(i) of such 
Act (42 U.S.C. 415(i)). 

(2) Whenever such rates and income limitations are so increased, the 
Secretary may round such rates and income limitations in such manner 
as the Secretary considers equitable and appropriate for ease of 
administration. 
(Added Pub. L. 95-588, title III, Sec. 305(a), Nov. 4, 1978, 92 Stat. 
2507, Sec. 3112; 
amended Pub. L. 97-295, Sec. 4(76), Oct. 12, 1982, 96 Stat. 1311; 
renumbered Sec. 
5312, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 
238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 104- 204, title IV, Sec. 421(c), Sept. 26, 1996, 
110 Stat. 2926; Pub. L. 108-454, title V, 
Sec. 506, Dec. 10, 2004, 118 Stat. 3622.) 

ï¿½ 5313. Limitation on payment of compensation and depend

ency and indemnity compensation to persons in

carcerated for conviction of a felony 

(a)(1) To the extent provided in subsection (d) of this section, 
any person who is entitled to compensation or to dependency and 
indemnity compensation and who is incarcerated in a Federal, 
State, local, or other penal institution or correctional facility for a 
period in excess of sixty days for conviction of a felony shall not be 
paid such compensation or dependency and indemnity compensa


745 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5313 

tion, for the period beginning on the sixty-first day of such 
incarceration and ending on the day such incarceration ends, in an 
amount that exceeds- 

(A) in the case of a veteran with a service-connected disability rated 
at 20 percent or more, the rate of compensation 
payable under section 1114(a) of this title; or 
(B) in the case of a veteran with a service-connected disability not 
rated at 20 percent or more or in the case of a surviving spouse, 
parent, or child, one-half of the rate of compensation payable under 
section 1114(a) of this title. 
(2) The provisions of paragraph (1) of this subsection shall not 
apply with respect to any period during which a person is participating 
in a work-release program or is residing in a halfway house. 
(b)(1) All or any part of the compensation not paid to a veteran 
by reason of subsection (a) of this section may, as appropriate in 
an individual case, be apportioned under the same terms and conditions 
as are provided under section 5307 of this title. 

(2) All or any part of the dependency and indemnity compensation not 
paid to a surviving spouse or child by reason of subsection 
(a) of this section may, as appropriate in an individual case, be 
apportioned as follows: 
(A) In the case of dependency and indemnity compensation 
not paid to a surviving spouse, any apportionment shall be to 
the surviving child or children. 
(B) In the case of dependency and indemnity compensation 
not paid to a surviving child, any apportionment shall be to the 
surviving spouse or other surviving children, as applicable. 
(3) No apportionment may be made under this subsection to or 
on behalf of any person who is incarcerated in a Federal, State, 
local, or other penal institution or correctional facility for 
conviction 
of a felony. 
(c) The Secretary shall not assign to any veteran a rating of 
total disability based on the individual unemployability of the veteran 
resulting from a service-connected disability during any period 
during which the veteran is incarcerated in a Federal, State, local, 
or other penal institution or correctional facility for conviction of a 
felony. 
(d) The provisions of subsection (a) of this section shall apply 
(1) with respect to any period of incarceration of a person for 
conviction of a felony committed after October 7, 1980, and (2) with 
respect to any period of incarceration on or after October 1, 1980, 
for conviction of a felony of a person who on October 1, 1980, is 
incarcerated for conviction of such felony and with respect to whom 
the action granting an award of compensation or dependency and 
indemnity compensation is taken on or after such date. 
(e) For purposes of this section- 
(1) The term ï¿½ï¿½compensationï¿½ï¿½ includes disability compensation payable 
under section 1151 of this title. 
(2) The term ï¿½ï¿½dependency and indemnity compensationï¿½ï¿½ 
means death compensation payable under section 1121 or 1141 
of this title, death compensation and dependency and indemnity 
compensation payable under section 1151 of this title, and 
any benefit payable under chapter 13 of this title. 

Sec. 5313A CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 746 

(Added Pub. L. 96-385, title V, Sec. 504(a), Oct. 7, 1980, 94 Stat. 
1534, Sec. 3113; 
amended Pub. L. 98-160, title VII, Sec. 702(17), Nov. 21, 1983, 97 
Stat. 1010; renumbered Sec. 5313 and amended Pub. L. 102-40, title IV, 
Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(c)(1), Aug. 
6, 1991, 105 Stat. 404-406; Pub. L. 105-368, title X, Sec. 1005(b)(16), 
Nov. 11, 1998, 
112 Stat. 3365; Pub. L. 109-461, title X, Sec. 1002(f), Dec. 22, 2006, 
120 Stat. 3465.) 

ï¿½ 5313A. Limitation on payment of clothing allowance to incarcerated 
veterans 

In the case of a veteran who is incarcerated in a Federal, 
State, local, or other penal institution or correctional facility for a 
period in excess of 60 days and who is furnished clothing without 
charge by the institution, the amount of any annual clothing allowance 
payable to the veteran under section 1162 of this title shall 
be reduced by an amount equal to 1/365 of the amount of the allowance 
otherwise payable under that section for each day on which 
the veteran was so incarcerated during the 12-month period preceding 
the date on which payment of the allowance would be due. 
This section shall be carried out under regulations prescribed by 
the Secretary. 

(Added Pub. L. 104-275, title V, Sec. 502(a), Oct. 9, 1996, 110 Stat. 
3341; amended 
Pub. L. 109-461, title X, Sec. 1002(g), Dec. 22, 2006, 120 Stat. 3465.) 

ï¿½ 5313B. Prohibition on providing certain benefits with respect to 
persons who are fugitive felons 

(a) A veteran who is otherwise eligible for a benefit specified 
in subsection (c) may not be paid or otherwise provided such benefit 
for any period during which such veteran is a fugitive felon. A 
dependent of a veteran who is otherwise eligible for a benefit 
specified in subsection (c) may not be paid or otherwise provided such 
benefit for any period during which such veteran or such dependent 
is a fugitive felon. 
(b) For purposes of this section: 
(1) The term ï¿½ï¿½fugitive felonï¿½ï¿½ means a person who is a fugitive by 
reason of- 
(A) fleeing to avoid prosecution, or custody or confinement after 
conviction, for an offense, or an attempt to commit an offense, which 
is a felony under the laws of the 
place from which the person flees; or 
(B) violating a condition of probation or parole imposed for 
commission of a felony under Federal or State 
law. 
(2) The term ï¿½ï¿½felonyï¿½ï¿½ includes a high misdemeanor under 
the laws of a State which characterizes as high misdemeanors 
offenses that would be felony offenses under Federal law. 
(3) The term ï¿½ï¿½dependentï¿½ï¿½ means a spouse, surviving 
spouse, child, or dependent parent of a veteran. 
(c) A benefit specified in this subsection is a benefit under any 
of the following: 
(1) Chapter 11 of this title. 
(2) Chapter 13 of this title. 
(3) Chapter 15 of this title. 
(4) Chapter 17 of this title. 
(5) Chapter 19 of this title. 
(6) Chapter 30, 31, 32, 34, or 35 of this title. 

747 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5314 

(7) Chapter 37 of this title. 
(d)(1) The Secretary shall furnish to any Federal, State, or 
local law enforcement official, upon the written request of such 
official, the most current address maintained by the Secretary of a 
person who is eligible for a benefit specified in subsection (c) if such 
official- 

(A) provides to the Secretary such information as the Secretary may 
require to fully identify the person; 
(B) identifies the person as being a fugitive felon; and 
(C) certifies to the Secretary that apprehending such person is within 
the official duties of such official. 
(2) The Secretary shall enter into memoranda of understanding 
with Federal law enforcement agencies, and may enter into agreements 
with State and local law enforcement agencies, for purposes 
of furnishing information to such agencies under paragraph (1). 
(Added Pub. L. 107-103, title V, Sec. 505(a)(1), Dec. 27, 2001, 115 
Stat. 995.) 

ï¿½ 5314. Indebtedness offsets 

(a) Subject to subsections (b) and (d) of this section and section 
3485(e) of this title, the Secretary shall (unless the Secretary 
waives recovery under section 5302 of this title) deduct the amount 
of the indebtedness of any person who has been determined to be 
indebted to the United States by virtue of such personï¿½s participation 
in a benefits program administered by the Secretary from future payments 
made to such person under any law administered by 
the Secretary. 
(b) Deductions may not be made under subsection (a) of this 
section with respect to the indebtedness of a person described in 
such subsection unless the Secretary- 
(1) has made reasonable efforts to notify such person of 
such personï¿½s right to dispute through prescribed administrative 
processes the existence or amount of such indebtedness 
and of such personï¿½s right to request a waiver of such indebtedness 
under section 5302 of this title; 
(2) has made a determination with respect to any such dispute or 
request or has determined that the time required to 
make such a determination before making deductions would 
jeopardize the Secretaryï¿½s ability to recover the full amount of 
such indebtedness through deductions from such payments; 
and 
(3) has made reasonable efforts to notify such person about 
the proposed deductions from such payments. 
(c) Notwithstanding any other provision of this title or of any 
other law, the authority of the Secretary to make deductions under 
this section or to take other administrative action authorized by 
law for the purpose of collecting an indebtedness described in 
subsection (a) of this section, or for the purpose of determining the 
creditworthiness of a person who owes such an indebtedness, shall 
not be subject to any limitation with respect to the time for bringing 
civil actions or for commencing administrative proceedings. 
(d) The Secretary shall prescribe regulations for the administration 
of this section. 
(Added Pub. L. 96-466, title VI, Sec. 605(a)(1), Oct. 17, 1980, 94 
Stat. 2209, Sec. 
3114; amended Pub. L. 102-16, Sec. 6(b)(3), Mar. 22, 1991, 105 Stat. 
51; renum


Sec. 5315 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 748 

bered Sec. 5314 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), 
(d)(1), May 
7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), 
(2)(E), 5(c)(1), Aug. 
6, 1991, 105 Stat. 403-406.) 

ï¿½ 5315. Interest and administrative cost charges on delin

quent payments of certain amounts due the United 

States 

(a) Notwithstanding any other provision of this title or of any 
other law and subject to sections 3485(e) and 5302 of this title, 
interest and administrative costs (as described in subsections (b) and 
(c) of this section) shall be charged, under regulations which the 
Secretary shall prescribe, on any amount owed to the United 
States- 
(1) for an indebtedness resulting from a personï¿½s participation in a 
benefits program administered by the Secretary other 
than a loan, loan-guaranty, or loan-insurance program; 
(2) for an indebtedness resulting from the provision of care 
or services under chapter 17 of this title; or 
(3) to the extent not precluded by the terms of the loan instruments 
concerned, for an indebtedness resulting from a personï¿½s participation 
in a program of loans, loan guaranties, or 
loan insurance administered by the Secretary under this title. 
(b)(1) Interest on the amount of any indebtedness described in 
subsection (a) of this section shall accrue from the day on which 
the initial notification of the amount due is mailed to the person 
who owes such amount (using the most current address of such 
person that is available to the Secretary), but interest under this 
section shall not be charged (A) for any period before October 17, 
1980, or (B) if the amount due is paid within a reasonable period 
of time. The Secretary shall, in the regulations prescribed pursuant 
to subsection (a) of this section, prescribe what constitutes a 
reasonable period of time for payment of an indebtedness after the 
initial notification of indebtedness has been mailed. 

(2) The rate of interest to be charged under this section shall 
be based on the rate of interest paid by the United States for its 
borrowing and shall be determined by the Secretary under such 
regulations. 
(c) The administrative costs to be charged under this section 
with respect to an amount owed to the United States shall be so 
much of the costs incurred by the United States in collecting such 
amount as the Secretary determines, under such regulations, to be 
reasonable and appropriate. 
(Added Pub. L. 96-466, title VI, Sec. 605(a)(1), Oct. 17, 1980, 94 
Stat. 2210, Sec. 
3115; amended Pub. L. 102-16, Sec. 6(b)(4), Mar. 22, 1991, 105 Stat. 
51; renumbered Sec. 5315 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 
7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), 
(2)(E), 5(C)(1), Aug. 
6, 1991, 105 Stat. 403-406; Pub. L. 105-368, title X, Sec. 
1005(b)(17), Nov. 11, 1998, 
112 Stat. 3365.) 

ï¿½ 5316. Authority to sue to collect certain debts 

(a)(1) The Secretary shall take appropriate steps to authorize 
attorneys employed by the Department to exercise, subject to 
paragraphs (2) and (3) of this subsection, the right of the United 
States 
to bring suit in any court of competent jurisdiction to recover any 
indebtedness owed to the United States by a person by virtue of 


749 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5317 

such personï¿½s participation in a benefits program administered by 
the Secretary. 

(2) No suit may be filed under this section to recover any indebtedness 
owed by any person to the United States unless the 
Secretary has determined, under regulations which the Secretary 
shall prescribe, that such person has failed to respond appropriately 
to reasonable administrative efforts to collect such indebtedness. 
(3) The activities of attorneys employed by the Department in 
bringing suit under this section shall be subject to the direction 
and supervision of the Attorney General of the United States and 
to such terms and conditions as the Attorney General may prescribe. 
(b) Nothing in this section shall derogate from the authority of 
the Attorney General of the United States under sections 516 and 
519 of title 28 to direct and supervise all litigation to which the 
United States or an agency or officer of the United States is a 
party. 
(Added Pub. L. 96-466, title VI, Sec. 605(a)(1), Oct. 17, 1980, 94 
Stat. 2211, Sec. 
3116; renumbered Sec. 5316, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 
105 Stat. 238; amended Pub. L. 102-54, Sec. 14(d)(3), June 13, 1991, 
105 Stat. 285; 
Pub. L. 102-83, Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 403-405.) 

ï¿½ 5317. Use of income information from other agencies: notice and 
verification 

(a) The Secretary shall notify each applicant for a benefit or 
service described in subsection (c) of this section that income 
information furnished by the applicant to the Secretary may be compared 
with information obtained by the Secretary from the Commissioner of 
Social Security or the Secretary of the Treasury under 
section 6103(l)(7)(D)(viii) of the Internal Revenue Code of 1986. The 
Secretary shall periodically transmit to recipients of such benefits 
and services additional notifications of such matters. 
(b) The Secretary may not, by reason of information obtained 
from the Commissioner of Social Security or the Secretary of the 
Treasury under section 6103(l)(7)(D)(viii) of the Internal Revenue 
Code of 1986, terminate, deny, suspend, or reduce any benefit or 
service described in subsection (c) of this section until the Secretary 
takes appropriate steps to verify independently information relating to 
the following: 
(1) The amount of the asset or income involved. 
(2) Whether such individual actually has (or had) access to 
such asset or income for the individualï¿½s own use. 
(3) The period or periods when the individual actually had 
such asset or income. 
(c) The benefits and services described in this subsection are 
the following: 
(1) Needs-based pension benefits provided under chapter 
15 of this title or under any other law administered by the Secretary. 
(2) Parentsï¿½ dependency and indemnity compensation provided under 
section 1315 of this title. 
(3) Health-care services furnished under subsections 
(a)(2)(G), (a)(3), and (b) of section 1710 of this title. 

Sec. 5317A CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 750 

(4) Compensation paid under chapter 11 of this title at the 
100 percent rate based solely on unemployability and without 
regard to the fact that the disability or disabilities are not 
rated as 100 percent disabling under the rating schedule. 
(d) In the case of compensation described in subsection (c)(4) 
of this section, the Secretary may independently verify or otherwise 
act upon wage or self-employment information referred to in subsection 
(b) of this section only if the Secretary finds that the 
amount and duration of the earnings reported in that information 
clearly indicate that the individual may no longer be qualified for 
a rating of total disability. 
(e) The Secretary shall inform the individual of the findings 
made by the Secretary on the basis of verified information under 
subsection (b) of this section, and shall give the individual an 
opportunity to contest such findings, in the same manner as applies 
to other information and findings relating to eligibility for the 
benefit or service involved. 
(f) The Secretary shall pay the expenses of carrying out this 
section from amounts available to the Department for the payment 
of compensation and pension. 
(g) The authority of the Secretary to obtain information from 
the Secretary of the Treasury or the Commissioner of Social Security 
under section 6103(l)(7)(D)(viii) of the Internal Revenue Code 
of 1986 expires on September 30, 2011. 
(Added Pub. L. 101-508, title VIII, Sec. 8051(b)(1), Nov. 5, 1990, 104 
Stat. 1388- 
350, Sec. 3117; renumbered Sec. 5317, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 
7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 5(c)(1), Aug. 6, 
1991, 105 Stat. 
406; Pub. L. 102-568, title VI, Sec. 602(a), Oct. 29, 1992, 106 Stat. 
4342; Pub. L. 
103-66, title XII, Sec. 12004, Aug. 10, 1993, 107 Stat. 414; Pub. L. 
104-262, title 
I, Sec. 101(e)(3), Oct. 9, 1996, 110 Stat. 3181; Pub. L. 105-33, 
title VIII, Sec. 8014, 
Aug. 5, 1997, 111 Stat. 664; Pub. L. 106-419, title IV, Sec. 402(d), 
Nov. 1, 2000, 
114 Stat. 1863; Pub. L. 108-183, title VII, Sec. 708(c)(3), Dec. 16, 
2003, 117 Stat. 
2674; Pub. L. 110-389, title VIII, Sec. 802, Oct. 10, 2008, 122 
Stat. 4185.) 

ï¿½ 5317A. Use of income information from other agencies: 
independent verification required before termination or reduction of 
certain benefits and services 

(a) INDEPENDENT VERIFICATION REQUIRED.-The Secretary may 
terminate, deny, suspend, or reduce any benefit or service specified 
in section 5317(c), with respect to an individual under age 65 who 
is an applicant for or recipient of such a benefit or service, by 
reason of information obtained from the Secretary of Health and 
Human Services under section 453(j)(11) of the Social Security Act, 
only if the Secretary takes appropriate steps to verify independently 
information relating to the individualï¿½s employment and income from 
employment. 
(b) OPPORTUNITY TO CONTEST FINDINGS.-The Secretary shall 
inform each individual for whom the Secretary terminates, denies, 
suspends, or reduces any benefit or service under subsection (a) of 
the findings made by the Secretary under such subsection on the 
basis of verified information and shall provide to the individual an 
opportunity to contest such findings in the same manner as applies 
to other information and findings relating to eligibility for the 
benefit or service involved. 

751 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5319 

(c) SOURCE OF FUNDS FOR REIMBURSEMENT TO SECRETARY OF 
HEALTH AND HUMAN SERVICES.-The Secretary shall pay the expense of 
reimbursing the Secretary of Health and Human Services 
in accordance with section 453(j)(11)(E) of the Social Security Act, 
for the cost incurred by the Secretary of Health and Human Services in 
furnishing information requested by the Secretary under 
section 453(j)(11) of such Act, from amounts available to the Department 
for the payment of compensation and pensions. 
(d) EXPIRATION OF AUTHORITY.-The authority under this sec
tion shall expire on September 30, 2011.
(Added Pub. L. 110-157, title III, Sec. 301(b)(1), Dec. 26, 2007, 121 
Stat. 1835)


ï¿½ 5318. Review of Social Security Administration death information 

(a) The Secretary shall periodically compare Department of 
Veterans Affairs information regarding persons to or for whom 
compensation or pension is being paid with information in the 
records of the Social Security Administration relating to persons 
who have died for the purposes of- 
(1) determining whether any such persons to whom compensation and 
pension is being paid are deceased; 
(2) ensuring that such payments to or for any such persons 
who are deceased are terminated in a timely manner; and 
(3) ensuring that collection of overpayments of such benefits resulting 
from payments after the death of such persons is 
initiated in a timely manner. 
(b) The Social Security Administration death information referred to in 
subsection (a) of this section is death information available to the 
Secretary from or through the Commissioner of Social 
Security, including death information available to the Commissioner from 
a State, pursuant to a memorandum of understanding 
entered into by the Secretary and the Commissioner. Any such 
memorandum of understanding shall include safeguards to assure 
that information made available under it is not used for unauthorized 
purposes or improperly disclosed. 
(Added Pub. L. 101-508, title VIII, Sec. 8053(b)(1), Nov. 5, 1990, 104 
Stat. 1388- 
352, Sec. 3118; renumbered Sec. 5318, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 
7, 1991, 105 Stat. 238; amended Pub. L. 108-183, title VII, Sec. 
708(c)(4)(A), (B)(i), 
Dec. 16, 2003, 117 Stat. 2674.) 

ï¿½ 5319. Limitations on access to financial records 

(a) The Secretary may make a request referred to in section 
1113(p) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 
3413(p)) only if the Secretary determines that the requested 
information- 
(1) is necessary in order for the Secretary to administer 
the provisions of law referred to in that section; and 
(2) cannot be secured by a reasonable search of records 
and information of the Department. 
(b) The Secretary shall include a certification of the determinations 
referred to in subsection (a) in each request presented to a 
financial institution. 
(c) Information disclosed pursuant to a request referred to in 
subsection (a) may be used solely for the purpose of the administra

Sec. 5319 CH. 53-SPECIAL PROVISIONS RELATING TO BENEFITS 752 

tion of benefits programs under laws administered by the Secretary 
if, except for the exemption in subsection (a), the disclosure of that 
information would otherwise be prohibited by any provision of the 
Right to Financial Privacy Act of 1978. 

(Added Pub. L. 102-568, title VI, Sec. 603(b)(1), Oct. 29, 1992, 106 
Stat. 4342.) 


CHAPTER 55 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


753 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½


CHAPTER 55-MINORS, INCOMPETENTS, AND OTHER 
WARDS


Sec. 
5501. Commitment actions. 
5502. Payments to and supervision of fiduciaries. 
5503. Hospitalized veterans and estates of incompetent 
institutionalized vet


erans. 
5504. Administration of trust funds. 
[5505. Repealed.] 
5506. Definition of ï¿½ï¿½fiduciaryï¿½ï¿½. 
5507. Inquiry, investigations, and qualification of fiduciaries. 
5508. Periodic onsite reviews of institutional fiduciaries. 
5509. Authority to require fiduciary to receive payments at regional 
offices of the 

Department when failing to provide required accounting. 
5510. Annual report. 

ï¿½ 5501. Commitment actions 

The Secretary may incur necessary court costs and other expenses 
incident to proceedings for the commitment of mentally incompetent 
veterans to a Department hospital or domiciliary when 
necessary for treatment or domiciliary purposes. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1232, Sec. 3201; renumbered 
Sec. 5501, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; 
amended Pub. L. 
102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
404, 405.) 
ï¿½ 5502. Payments to and supervision of fiduciaries 

(a)(1) Where it appears to the Secretary that the interest of the 
beneficiary would be served thereby, payment of benefits under any 
law administered by the Secretary may be made directly to the 
beneficiary or to a relative or some other fiduciary for the use and 
benefit of the beneficiary, regardless of any legal disability on the 
part of the beneficiary. Where, in the opinion of the Secretary, any 
fiduciary receiving funds on behalf of a Department beneficiary is 
acting in such a number of cases as to make it impracticable to 
conserve properly the estates or to supervise the persons of the 
beneficiaries, the Secretary may refuse to make future payments in 
such cases as the Secretary may deem proper. 

(2) In a case in which the Secretary determines that a commission is 
necessary in order to obtain the services of a fiduciary in 
the best interests of a beneficiary, the Secretary may authorize a 
fiduciary appointed by the Secretary to obtain from the beneficiaryï¿½s 
estate a reasonable commission for fiduciary services rendered, but 
the commission for any year may not exceed 4 percent 
of the monetary benefits under laws administered by the Secretary 
paid on behalf of the beneficiary to the fiduciary during such year. 
755 


Sec. 5502 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS 756 

A commission may not be authorized for a fiduciary who receives 
any other form of remuneration or payment in connection with rendering
fiduciary services for benefits under this title on behalf of 
the beneficiary. 

(b) Whenever it appears that any fiduciary, in the opinion of 
the Secretary, is not properly executing or has not properly executed 
the duties of the trust of such fiduciary or has collected or 
paid, or is attempting to collect or pay, fees, commissions, or
allowances that are inequitable or in excess of those allowed by law for 
the duties performed or expenses incurred, or has failed to make 
such payments as may be necessary for the benefit of the ward or 
the dependents of the ward, then the Secretary may appear, by the 
Secretaryï¿½s authorized attorney, in the court which has appointed 
such fiduciary, or in any court having original, concurrent, or 
appellate jurisdiction over said cause, and make proper presentation 
of such matters. The Secretary, in the Secretaryï¿½s discretion, may 
suspend payments to any such fiduciary who shall neglect or 
refuse, after reasonable notice, to render an account to the Secretary 
from time to time showing the application of such payments 
for the benefit of such incompetent or minor beneficiary, or who 
shall neglect or refuse to administer the estate according to law. 
The Secretary may require the fiduciary, as part of such account, 
to disclose any additional financial information concerning the 
beneficiary (except for information that is not available to the 
fiduciary). The Secretary may appear or intervene by the Secretaryï¿½s 
duly authorized attorney in any court as an interested party in any 
litigation instituted by the Secretary or otherwise, directly affecting 
money paid to such fiduciary under this section. 
(c) Authority is hereby granted for the payment of any court 
or other expenses incident to any investigation or court proceeding 
for the appointment of any fiduciary or other person for the purpose of 
payment of benefits payable under laws administered by 
the Secretary or the removal of such fiduciary and appointment of 
another, and of expenses in connection with the administration of 
such benefits by such fiduciaries, or in connection with any other 
court proceeding hereby authorized, when such payment is authorized by 
the Secretary. 
(d) All or any part of any benefits the payment of which is suspended 
or withheld under this section may, in the discretion of the 
Secretary, be paid temporarily to the person having custody and 
control of the incompetent or minor beneficiary, to be used solely 
for the benefit of such beneficiary, or, in the case of an incompetent 
veteran, may be apportioned to the dependent or dependents, if 
any, of such veteran. Any part not so paid and any funds of a mentally 
incompetent or insane veteran not paid to the chief officer of 
the institution in which such veteran is a patient nor apportioned 
to the veteranï¿½s dependent or dependents may be ordered held in 
the Treasury to the credit of such beneficiary. All funds so held 
shall be disbursed under the order and in the discretion of the 
Secretary for the benefit of such beneficiary or the beneficiaryï¿½s 
dependents. Any balance remaining in such fund to the credit of any 
beneficiary may be paid to the beneficiary if the beneficiary recovers 
and is found competent, or if a minor, attains majority, or otherwise 
to the beneficiaryï¿½s fiduciary, or, in the event of the bene

757 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS Sec. 5503 

ficiaryï¿½s death, to the beneficiaryï¿½s personal representative, except 
as otherwise provided by law; however, payment will not be made 
to the beneficiaryï¿½s personal representative if, under the law of the 
beneficiaryï¿½s last legal residence, the beneficiaryï¿½s estate would 
escheat to the State. In the event of the death of a mentally 
incompetent or insane veteran, all gratuitous benefits under laws 
administered by the Secretary deposited before or after August 7, 1959, 
in the personal funds of patients trust fund on account of such veteran 
shall not be paid to the personal representative of such veteran, but 
shall be paid to the following persons living at the time 
of settlement, and in the order named: The surviving spouse, the 
children (without regard to age or marital status) in equal parts, 
and the dependent parents of such veteran, in equal parts. If any 
balance remains, such balance shall be deposited to the credit of 
the applicable current appropriation; except that there may be paid 
only so much of such balance as may be necessary to reimburse a 
person (other than a political subdivision of the United States) who 
bore the expenses of last sickness or burial of the veteran for such 
expenses. No payment shall be made under the two preceding sentences of 
this subsection unless claim therefor is filed with the Secretary within 
five years after the death of the veteran, except that, 
if any person so entitled under said two sentences is under legal 
disability at the time of death of the veteran, such five-year period 
of limitation shall run from the termination or removal of the legal 
disability. 

(e) Any funds in the hands of a fiduciary appointed by a State 
court or the Secretary derived from benefits payable under laws 
administered by the Secretary, which under the law of the State 
wherein the beneficiary had last legal residence would escheat to 
the State, shall escheat to the United States and shall be returned 
by such fiduciary, or by the personal representative of the deceased 
beneficiary, less legal expenses of any administration necessary to 
determine that an escheat is in order, to the Department, and shall 
be deposited to the credit of the applicable revolving fund, trust 
fund, or appropriation. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1232, Sec. 3202; Pub. L. 
86-146, Sec. 1(a), \Aug. 7, 1959, 73 Stat. 297; Pub. L. 92-328, 
title I, Sec. 105(a), June 30, 1972, 86 Stat. 395; Pub. L. 93-295, 
title III, Sec. 301, May 31, 1974, 88 Stat. 183; Pub. L. 97-295, Sec. 
4(77), Oct. 12, 1982, 96 Stat. 1311; Pub. L. 98-223, title II, Sec. 
207(a), (b)(1), Mar. 2, 1984, 98 Stat. 43; Pub. L. 99-576, title V, 
Sec. 505, title VII, Sec. 701(76), Oct. 28, 1986, 100 Stat. 3287, 
3297; renumbered Sec. 5502 and amended Pub. L. 102-40, title III, 
Sec. 305(a), title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 210, 
238; Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(ix), (3), (4), (b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 108-454, title 
V, Sec. 501(b), Dec. 10, 2004, 118 Stat. 
3617.) 

ï¿½ 5503. Hospitalized veterans and estates of incompetent 
institutionalized veterans 

(a)(1)(A) Where any veteran having neither spouse nor child is 
being furnished domiciliary care by the Department, no pension in 
excess of $90 per month shall be paid to or for the veteran for any 
period after the end of the third full calendar month following the 
month of admission for such care. 

(B) Except as provided in subparagraph (D) of this paragraph, 
where any veteran having neither spouse nor child is being fur

Sec. 5503 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS 758 

nished nursing home care by the Department, no pension in excess 
of $90 per month shall be paid to or for the veteran for any period 
after the end of the third full calendar month following the month 
of admission for such care. Any amount in excess of $90 per month 
to which the veteran would be entitled but for the application of 
the preceding sentence shall be deposited in a revolving fund at the 
Department medical facility which furnished the veteran nursing 
care, and such amount shall be available for obligation without 
fiscal year limitation to help defray operating expenses of that 
facility. 

(C) No pension in excess of $90 per month shall be paid to or 
for a veteran having neither spouse nor child for any period after 
the month in which such veteran is readmitted for care described 
in subparagraph (A) or (B) of this paragraph and furnished by the 
Department if such veteran is readmitted within six months of a 
period of care in connection with which pension was reduced pursuant 
to subparagraph (A) or (B) of this paragraph. 
(D) In the case of a veteran being furnished nursing home care 
by the Department and with respect to whom subparagraph (B) of 
this paragraph requires a reduction in pension, such reduction 
shall not be made for a period of up to three additional calendar 
months after the last day of the third month referred to in such 
subparagraph if the Secretary determines that the primary purpose 
for the furnishing of such care during such additional period is for 
the Department to provide such veteran with a prescribed program 
of rehabilitation services, under chapter 17 of this title, designed 
to restore such veteranï¿½s ability to function within such veteranï¿½s 
family and community. If the Secretary determines that it is necessary,
after such period, for the veteran to continue such program 
of rehabilitation services in order to achieve the purposes of such 
program and that the primary purpose of furnishing nursing home 
care to the veteran continues to be the provision of such program 
to the veteran, the reduction in pension required by subparagraph 
(B) of this paragraph shall not be made for the number of calendar 
months that the Secretary determines is necessary for the veteran 
to achieve the purposes of such program. 
(2) The provisions of paragraph (1) shall also apply to a veteran 
being furnished such care who has a spouse but whose pension is 
payable under section 1521(b) of this title. In such a case, 
the Secretary may apportion and pay to the spouse, upon an 
affirmative showing of hardship, all or any part of the amounts in 
excess of the amount payable to the veteran while being furnished 
such care which would be payable to the veteran if pension were 
payable under section 1521(c) of this title. 
(b) Notwithstanding any other provision of this section or any 
other provision of law, no reduction shall be made in the pension 
of any veteran for any part of the period during which the veteran 
is furnished hospital treatment, or institutional or domiciliary 
care, 
for Hansenï¿½s disease, by the United States or any political 
subdivision thereof. 
(c) Where any veteran in receipt of an aid and attendance allowance 
described in section 1114(r) of this title is hospitalized at 
Government expense, such allowance shall be discontinued from 
the first day of the second calendar month which begins after the 

759 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS Sec. 5503 

date of the veteranï¿½s admission for such hospitalization for so long 
as such hospitalization continues. Any discontinuance required by 
administrative regulation, during hospitalization of a veteran by 
the Department, of increased pension based on need of regular aid 
and attendance or additional compensation based on need of regular aid 
and attendance as described in subsection (l) or (m) of section 1114 of 
this title, shall not be effective earlier than the first 
day of the second calendar month which begins after the date of 
the veteransï¿½ admission for hospitalization. In case a veteran affected 
by this subsection leaves a hospital against medical advice 
and is thereafter admitted to hospitalization within six months 
from the date of such departure, such allowance, increased pension, 
or additional compensation, as the case may be, shall be discontinued 
from the date of such readmission for so long as such hospitalization 
continues. 

(d)(1) For the purposes of this subsection- 

(A) the term ï¿½ï¿½Medicaid planï¿½ï¿½ means a State plan for medical assistance 
referred to in section 1902(a) of the Social Security Act (42 U.S.C. 
1396a(a)); and 
(B) the term ï¿½ï¿½nursing facilityï¿½ï¿½ means a nursing facility described in 
section 1919 of such Act (42 U.S.C. 1396r), other 
than a facility that is a State home with respect to which the 
Secretary makes per diem payments for nursing home care 
pursuant to section 1741(a) of this title. 
(2) If a veteran having neither spouse nor child is covered by 
a Medicaid plan for services furnished such veteran by a nursing 
facility, no pension in excess of $90 per month shall be paid to or 
for the veteran for any period after the month of admission to such 
nursing facility. 
(3) Notwithstanding any provision of title XIX of the Social Security 
Act, the amount of the payment paid a nursing facility pursuant to a 
Medicaid plan for services furnished a veteran may not 
be reduced by any amount of pension permitted to be paid such 
veteran under paragraph (2) of this subsection. 
(4) A veteran is not liable to the United States for any payment of 
pension in excess of the amount permitted under this subsection that is 
paid to or for the veteran by reason of the inability 
or failure of the Secretary to reduce the veteranï¿½s pension under 
this subsection unless such inability or failure is the result of a 
willful concealment by the veteran of information necessary to 
make a reduction in pension under this subsection. 
(5) The provisions of this subsection shall apply with respect 
to a surviving spouse having no child in the same manner as they 
apply to a veteran having neither spouse nor child. 
(6) The costs of administering this subsection shall be paid for 
from amounts available to the Department of Veterans Affairs for 
the payment of compensation and pension. 
(7) This subsection expires on September 30, 2011. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1234, Sec. 3203; Pub. L. 86-146, 
Sec. 1(b), 2, Aug. 7, 1959, 73 Stat. 298; Pub. L. 86-211, Sec. 6, Aug. 
29, 1959, 73 Stat. 435; Pub. L. 87-544, Sec. 1, July 25, 1962, 76 Stat. 
208; Pub. L. 87-556, Sec. 1, July 27, 1962, 76 Stat. 245; Pub. L. 
87-645, Sec. 2(b), Sept. 7, 1962, 76 Stat. 441; Pub. 

L. 88-450, Sec. 5(a), Aug. 19, 1964, 78 Stat. 504; Pub. L. 89-362, 
Sec. 1, 2, Mar. 7, 1966, 80 Stat. 30; Pub. L. 91-24, Sec. 10, June 11, 
1969, 83 Stat. 34; Pub. L. 92-328, title I, Sec. 104, June 30, 1972, 
86 Stat. 394; Pub. L. 93-177, Sec. 5, Dec. 

Sec. 5504 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS 760 

6, 1973, 87 Stat. 696; Pub. L. 95-588, title III, Sec. 307, Nov. 4, 
1978, 92 Stat. 2510; Pub. L. 96-385, title V, Sec. 503(b), Oct. 7, 
1980, 94 Stat. 1534; Pub. L. 97-66, title VI, Sec. 602, Oct. 17, 
1981, 95 Stat. 1034; Pub. L. 98-160, title VII, Sec. 703(4), Nov.
21, 1983, 97 Stat. 1010; Pub. L. 98-543, title IV, Sec. 402(a), 
Oct. 24, 1984, 98 Stat. 2749; Pub. L. 99-576, title VII, Sec. 
701(77), Oct. 28, 1986, 100 Stat. 3298; Pub. L. 101-237, title I, 
Sec. 111(a), Dec. 18, 1989, 103 Stat. 2064; Pub. L. 101-508, title 
VIII, Sec. 8003(a), Nov. 5, 1990, 104 Stat. 1388-342; renumbered 
Sec. 5503 and amended Pub. L. 102-40, title III, Sec. 304(a), 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 209, 238; Pub. L. 
102-83, Sec. 4(a)(2)(A)(x), (3), (4), (b)(1), (2)(E), 5(c)(1),
Aug. 6, 1991, 105 Stat. 403-406; Pub. L. 102-86, title I, Sec. 
101(a), Aug. 14, 1991, 105 Stat. 414; Pub. L. 102-568, title VI, 
Sec. 601(a)-(c), Oct. 29, 1992, 106 Stat. 4341; Pub. L. 103-66, 
title XII, Sec. 12005, Aug. 10, 1993, 107 Stat. 414; Pub. L. 
105-33, title VIII, Sec. 8015, Aug. 5, 1997, 111 Stat. 664; Pub. L. 
105-368, title IX, Sec. 904(a), Nov. 11, 1998, 112 Stat. 3361; Pub. 
L. 106-419, title III, Sec. 304, title IV, Sec. 402(e), Nov. 1, 
2000, 114 Stat. 1853, 1863; Pub. L. 107-103, title II, Sec.
204(a), title V, Sec. 504, Dec. 27, 2001, 115 Stat. 990, 995.) 

ï¿½ 5504. Administration of trust funds 

All cash balances in the personal funds of patients and the 
funds due incompetent beneficiaries trust funds administered by 
the Secretary, and all moneys received which are properly for 
deposit into these funds, may be deposited, respectively, into deposit 
fund accounts with the United States Treasury and such balances 
and deposits shall thereupon be available for disbursement for 
properly authorized purposes. When any balances have been on deposit 
with the Treasurer of the United States for more than one 
year and represent moneys belonging to individuals whose whereabouts 
are unknown, they shall be transferred and disposed of as 
directed in section 1322(a) of title 31. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1235, Sec. 3204; Pub. L. 
97-258, Sec. 3(k)(5), Sept. 13, 1982, 96 Stat. 1065; renumbered Sec. 
5504, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991,105 Stat. 403.) 

ï¿½ï¿½ 5505. Repealed. Pub. L. 103-446, title XII, Sec. 
1201(g)(4)(A), Nov. 2, 1994, 108 Stat. 4687ï¿½ 

ï¿½ 5506. Definition of ï¿½ï¿½fiduciaryï¿½ï¿½ 

For purposes of this chapter and chapter 61 of this title, the 
term ï¿½ï¿½fiduciaryï¿½ï¿½ means- 

(1) a person who is a guardian, curator, conservator, committee, or 
person legally vested with the responsibility or care 
of a claimant (or a claimantï¿½s estate) or of a beneficiary (or a 
beneficiaryï¿½s estate); or 
(2) any other person having been appointed in a representative 
capacity to receive money paid under any of the laws administered 
by the Secretary for the use and benefit of a minor, 
incompetent, or other beneficiary. 
(Added Pub. L. 108-454, title V, Sec. 501(a)(1), Dec. 10, 2004, 118 
Stat. 3617.) 

ï¿½ 5507. Inquiry, investigations, and qualification of fiduciaries 

(a) Any certification of a person for payment of benefits of a 
beneficiary to that person as such beneficiaryï¿½s fiduciary under 
section 5502 of this title shall be made on the basis of- 
(1) an inquiry or investigation by the Secretary of the fitness of 
that person to serve as fiduciary for that beneficiary, 
such inquiry or investigation- 

761 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS Sec. 5508 

(A) to be conducted in advance of such certification; 
(B) to the extent practicable, to include a face-to-face 
interview with such person; and 
(C) to the extent practicable, to include a copy of a 
credit report for such person issued within one year of the 
date of the proposed appointment; 
(2) adequate evidence that certification of that person as fiduciary 
for that beneficiary is in the interest of such beneficiary (as 
determined by the Secretary under regulations); and 
(3) the furnishing of any bond that may be required by the 
Secretary. 
(b) As part of any inquiry or investigation of any person under 
subsection (a), the Secretary shall request information concerning 
whether that person has been convicted of any offense under Federal 
or State law which resulted in imprisonment for more than 
one year. If that person has been convicted of such an offense, the 
Secretary may certify the person as a fiduciary only if the Secretary 
finds that the person is an appropriate person to act as fiduciary 
for the beneficiary concerned under the circumstances. 
(c)(1) In the case of a proposed fiduciary described in paragraph 
(2), the Secretary, in conducting an inquiry or investigation 
under subsection (a)(1), may carry out such inquiry or investigation 
on an expedited basis that may include waiver of any specific 
requirement relating to such inquiry or investigation, including the 
otherwise applicable provisions of subparagraphs (A), (B), and (C) 
of such subsection. Any such inquiry or investigation carried out on 
such an expedited basis shall be carried out under regulations 
prescribed for purposes of this section. 

(2) Paragraph (1) applies with respect to a proposed fiduciary 
who is- 
(A) the parent (natural, adopted, or stepparent) of a beneficiary who 
is a minor; 
(B) the spouse or parent of an incompetent beneficiary; 
(C) a person who has been appointed a fiduciary of the 
beneficiary by a court of competent jurisdiction; or 
(D) being appointed to manage an estate where the annual 
amount of veterans benefits to be managed by the proposed fiduciary 
does not exceed $3,600, as adjusted pursuant to section 
5312 of this title. 
(d) TEMPORARY FIDUCIARIES.-When in the opinion of the Secretary, a 
temporary fiduciary is needed in order to protect the assets of the 
beneficiary while a determination of incompetency is 
being made or appealed or a fiduciary is appealing a determination 
of misuse, the Secretary may appoint one or more temporary fiduciaries 
for a period not to exceed 120 days. If a final decision has 
not been made within 120 days, the Secretary may not continue 
the appointment of the fiduciary without obtaining a court order 
for appointment of a guardian, conservator, or other fiduciary 
under the authority provided in section 5502(b) of this title. 
(Added Pub. L. 108-454, title V, Sec. 502(a), Dec. 10, 2004, 118 Stat. 
3618.) 

ï¿½ 5508. Periodic onsite reviews of institutional fiduciaries 

In addition to such other reviews of fiduciaries as the Secretary may 
otherwise conduct, the Secretary shall provide for the 


Sec. 5509 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS 762 

periodic onsite review of any person or agency located in the 
United States that receives the benefits payable under laws 
administered by the Secretary to another individual pursuant to the 
appointment of such person or agency as a fiduciary under section 
5502(a)(1) of this title in any case in which the fiduciary is serving 
in that capacity with respect to more than 20 beneficiaries and the 
total annual amount of such benefits exceeds $50,000, as adjusted 
pursuant to section 5312 of this title. 

(Added Pub. L. 108-454, title V, Sec. 504(a)(1), Dec. 10, 2004, 118 
Stat. 3620.) 

ï¿½ 5509. Authority to require fiduciary to receive payments 

at regional offices of the Department when failing

to provide required accounting 

(a) REQUIRED REPORTS AND ACCOUNTINGS.-The Secretary may 
require a fiduciary to file a report or accounting pursuant to 
regulations prescribed by the Secretary. 
(b) ACTIONS UPON FAILURE TO FILE.-In any case in which a 
fiduciary fails to submit a report or accounting required by the 
Secretary under subsection (a), the Secretary may, after furnishing 
notice to such fiduciary and the beneficiary entitled to such payment 
of benefits, require that such fiduciary appear in person at a regional 
office of the Department serving the area in which the beneficiary 
resides in order to receive such payments. 
(Added Pub. L. 108-454, title V, Sec. 504(a)(1), Dec. 10, 2004, 118 
Stat. 3621.) 

ï¿½ 5510. Annual report 

The Secretary shall include in the Annual Benefits Report of 
the Veterans Benefits Administration or the Secretaryï¿½s Annual 
Performance and Accountability Report information concerning 
fiduciaries who have been appointed to receive payments for 
beneficiaries of the Department. As part of such information, the 
Secretary shall separately set forth the following: -1 

(1) The number of beneficiaries in each category (veteran, 
surviving spouse, child, adult disabled child, or parent). 
(2) The types of benefit being paid (compensation, pension, 
dependency and indemnity compensation, death pension or 
benefits payable to a disabled child under chapter 18 of this 
title). 
(3) The total annual amounts and average annual amounts 
of benefits paid to fiduciaries for each category and type of benefit. 
(4) The number of fiduciaries who are the spouse, parent, 
legal custodian, court-appointed fiduciary, institutional fiduciary, 
custodian in fact, and supervised direct payees. 
(5) The number of cases in which the fiduciary was 
changed by the Secretary because of a finding that benefits 
had been misused. 
(6) How such cases of misuse of benefits were addressed by 
the Secretary. 
(7) The final disposition of such cases of misuse of benefits, 
including the number and dollar amount of any benefits reissued to 
beneficiaries. 
1 So in original. 


763 CH. 55-MINORS, INCOMPETENTS, AND OTHER WARDS Sec. 5510 

(8) The number of fiduciary cases referred to the Office of 
the Inspector General and the nature of the actions taken by 
the Inspector General. 
(9) The total amount of money recovered by the government 2 in cases 
arising from the misuse of benefits by a fiduciary. 
(10) Such other information as the Secretary considers ap
propriate. 
(Added Pub. L. 108-454, title V, Sec. 505(a), Dec. 10, 2004, 118 
Stat. 3621.) 

2 So in original. Probably should be capitalized. 


CHAPTER 57 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


765 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½ 

CHAPTER 57-RECORDS AND INVESTIGATIONS 

SUBCHAPTER I-RECORDS 

Sec. 
5701. Confidential nature of claims. 
5702. Furnishing of records. 
5703. Certification of records of District of Columbia. 
5704. Transcript of trial records. 
5705. Confidentiality of medical quality-assurance records. 


SUBCHAPTER II-INVESTIGATIONS 

5711. Authority to issue subpoenas. 
5712. Validity of affidavits. 
5713. Disobedience to subpoena. 

SUBCHAPTER III-INFORMATION SECURITY 

5721. Purpose. 
5722. Policy. 
5723. Responsibilities. 
5724. Provision of credit protection and other services. 
5725. Contracts for data processing or maintenance. 
5726. Reports and notice to Congress on data breaches. 
5727. Definitions. 
5728. Authorization of appropriations.


SUBCHAPTER I-RECORDS 

ï¿½ 5701. Confidential nature of claims 

(a) All files, records, reports, and other papers and documents 
pertaining to any claim under any of the laws administered by the 
Secretary and the names and addresses of present or former members of 
the Armed Forces, and their dependents, in the possession 
of the Department shall be confidential and privileged, and no 
disclosure thereof shall be made except as provided in this section. 
(b) The Secretary shall make disclosure of such files, records, 
reports, and other papers and documents as are described in subsection 
(a) of this section as follows: 
(1) To a claimant or duly authorized agent or representative of a 
claimant as to matters concerning the claimant alone 
when, in the judgment of the Secretary, such disclosure would 
not be injurious to the physical or mental health of the claimant and 
to an independent medical expert or experts for an advisory opinion 
pursuant to section 5109 or 7109 of this title. 
(2) When required by process of a United States court to 
be produced in any suit or proceeding therein pending. 
(3) When required by any department or other agency of 
the United States Government. 
767 


Sec. 5701 CH. 57-RECORDS AND INVESTIGATIONS 768 

(4) In all proceedings in the nature of an inquest into the 
mental competency of a claimant. 
(5) In any suit or other judicial proceeding when in the 
judgment of the Secretary such disclosure is deemed necessary 
and proper. 
(6) In connection with any proceeding for the collection of 
an amount owed to the United States by virtue of a personï¿½s 
participation in any benefit program administered by the Secretary when 
in the judgment of the Secretary such disclosure 
is deemed necessary and proper. 
(c)(1) The amount of any payment made by the Secretary to 
any person receiving benefits under a program administered by the 
Secretary shall be made known to any person who applies for such 
information. 

(2) Any appraisal report or certificate of reasonable value submitted 
to or prepared by the Secretary in connection with any loan 
guaranteed, insured, or made under chapter 37 of this title shall 
be made available to any person who applies for such report or 
certificate. 
(3) Subject to the approval of the President, the Secretary may 
publish at any time and in any manner any or all information of 
record pertaining to any claim filed with the Secretary if the Secretary 
determines that the public interest warrants or requires 
such publication. 
(d) The Secretary as a matter of discretion may authorize an 
inspection of Department records by duly authorized representatives of 
recognized organizations. 
(e) Except as otherwise specifically provided in this section 
with respect to certain information, the Secretary may release 
information, statistics, or reports to individuals or organizations 
when in the Secretaryï¿½s judgment such release would serve a useful 
purpose. 
(f) The Secretary may, pursuant to regulations the Secretary 
shall prescribe, release the name or address, or both, of any 
present or former member of the Armed Forces, or a dependent of 
a present or former member of the Armed Forces, (1) to any nonprofit 
organization if the release is directly connected with the conduct of 
programs and the utilization of benefits under this title, or 
(2) to any criminal or civil law enforcement governmental agency 
or instrumentality charged under applicable law with the protection of 
the public health or safety if a qualified representative of 
such agency or instrumentality has made a written request that 
such name or address be provided for a purpose authorized by law. 
Any organization or member thereof or other person who, knowing 
that the use of any name or address released by the Secretary pursuant 
to the preceding sentence is limited to the purpose specified 
in such sentence, willfully uses such name or address for a purpose 
other than those so specified, shall be guilty of a misdemeanor and 
be fined not more than $5,000 in the case of a first offense and not 
more than $20,000 in the case of any subsequent offense. 
(g)(1) Subject to the provisions of this subsection, and under 
regulations which the Secretary shall prescribe, the Secretary may 
release the name or address, or both, of any person who is a 
present or former member of the Armed Forces, or who is a de


769 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5701 

pendent of a present or former member of the Armed Forces, to a 
consumer reporting agency if the release of such information is 
necessary for a purpose described in paragraph (2) of this subsection. 

(2) A release of information under paragraph (1) of this subsection 
concerning a person described in such paragraph may be 
made for the purpose of- 
(A) locating such a person- 
(i) who has been administratively determined to be indebted to the 
United States by virtue of the personï¿½s participation in a benefits 
program administered by the Secretary; or 
(ii) if the Secretary has determined under such regulations that (I) 
it is necessary to locate such person in order 
to conduct a study pursuant to section 527 of this title or 
a study required by any other provision of law, and (II) all 
reasonable steps have been taken to assure that the release of such 
information to such reporting agency will not 
have an adverse effect on such person; or 
(B) Obtaining a consumer report in order to assess the 
ability of a person described in subparagraph (A)(i) of this 
paragraph to repay the indebtedness of such person to the 
United States, but the Secretary may release the name or address of 
such person for the purpose stated in this clause only 
if the Secretary determines under such regulations that such 
person has failed to respond appropriately to administrative efforts 
to collect such indebtedness. 
(3) The Secretary may also release to a consumer reporting 
agency, for the purposes specified in subparagraph (A) or (B) of 
paragraph (2) of this subsection, such other information as the 
Secretary determines under such regulations is reasonably necessary 
to identify a person described in such paragraph, except that the 
Secretary may not release to a consumer reporting agency any 
information which indicates any indebtedness on the part of such 
person to the United States or any information which reflects 
adversely on such person. Before releasing any information under this 
paragraph, the Secretary shall, under such regulations, take 
reasonable steps to provide for the protection of the personal privacy 
of persons about whom information is proposed to be released 
under this paragraph. 
(4)(A) If the Secretary determines, under regulations which the 
Secretary shall prescribe, that a person described in paragraph (1) 
of this subsection has failed to respond appropriately to reasonable 
administrative efforts to collect an indebtedness of such person 
described in paragraph (2)(A)(i) of this subsection, the Secretary may 
release information concerning the indebtedness, including the 
name and address of such person, to a consumer reporting agency 
for the purpose of making such information available for inclusion 
in consumer reports regarding such person and, if necessary, for 
the purpose of locating such person, if- 

(i) the Secretary has (I) made reasonable efforts to notify 
such person of such personï¿½s right to dispute through prescribed 
administrative processes the existence or amount of 
such indebtedness and of such personï¿½s right to request a waiver of 
such indebtedness under section 5302 of this title, (II) af

Sec. 5701 CH. 57-RECORDS AND INVESTIGATIONS 770 

forded such person a reasonable opportunity to exercise such 
rights, and (III) made a determination with respect to any such 
dispute or request; and 

(ii) thirty calendar days have elapsed after the day on 
which the Secretary has made a determination that reasonable 
efforts have been made to notify such person (I) that the Secretary 
intends to release such information for such purpose or 
purposes, and (II) that, upon the request of such person, the 
Secretary shall inform such person of whether such information has 
been so released and of the name and address of each 
consumer reporting agency to which such information was released by 
the Secretary and of the specific information so released. 
(B) After release of any information under subparagraph (A) of 
this paragraph concerning the indebtedness of any person, the 
Secretary shall promptly notify- 
(i) each consumer reporting agency to which such information has 
been released by the Secretary; and 
(ii) each consumer reporting agency described in subsection 
(i)(3)(B)(i) of this section to which such information has 
been transmitted by the Secretary through a consumer reporting agency 
described in subsection (i)(3)(B)(ii)(I) of this section, 
of any substantial change in the status or amount of such indebtedness 
and, upon the request of any such consumer reporting agency for 
verification of any or all information so released, 
promptly verify or correct, as appropriate, such information. 
The Secretary shall also, after the release of such information, 
inform such person, upon the request of such person, of the 
name and address of each consumer reporting agency described 
in clause (i) or (ii) of this subparagraph to which such information 
was released or transmitted by the Secretary and of the 
specific information so released or transmitted. 
(h)(1) Under regulations which the Secretary shall prescribe, 
the Secretary may release the name or address, or both, of any person 
who is a present or former member of the Armed Forces, or 
who is a dependent of a present or former member of the Armed 
Forces (and other information relating to the identity of such person), 
to any person in a category of persons described in such regulations 
and specified in such regulations as a category of persons 
to whom such information may be released, if the release of such 
information is necessary for a purpose described in paragraph (2) 
of this subsection. 

(2) A release of information under paragraph (1) of this subsection 
may be made for the purpose of- 
(A) determining the creditworthiness, credit capacity, income, or 
financial resources of a person who has (i) applied for 
any benefit under chapter 37 of this title, or (ii) submitted an 
offer to the Secretary for the purchase of property acquired by 
the Secretary under section 3720(a)(5) of this title; 
(B) verifying, either before or after the Secretary has approved a 
personï¿½s application for assistance in the form of a 
loan guaranty or loan insurance under chapter 37 of this title, 
information submitted by a lender to the Secretary regarding 

771 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5701 

the creditworthiness, credit capacity, income, or financial resources 
of such person; 

(C) offering for sale or other disposition by the Secretary, 
pursuant to section 3720 of this title, any loan or installment 
sale contract owned or held by the Secretary; or 
(D) providing assistance to any applicant for benefits 
under chapter 37 of this title or administering such benefits if 
the Secretary promptly records the fact of such release in appropriate 
records pertaining to the person concerning whom 
such release was made. 
(i)(1) No contract entered into for any of the purposes of sub
section (g) or (h) of this section, and no action taken pursuant to 
any such contract or either such subsection, shall result in the 
application of section 552a of title 5 to any consumer reporting agency 
or any employee of a consumer reporting agency. 

(2) The Secretary shall take reasonable steps to provide for the 
protection of the personal privacy of persons about whom information 
is disclosed under subsection (g) or (h) of this section. 
(3) For the purposes of this subsection and of subsection (g) of 
this section- 
(A) The term ï¿½ï¿½consumer reportï¿½ï¿½ has the meaning provided 
such term in subsection (d) of section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(d)). 
(B) The term ï¿½ï¿½consumer reporting agencyï¿½ï¿½ means- 
(i) a consumer reporting agency as such term is defined in subsection 
(f) of section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a(f)), or 
(ii) any person who, for monetary fees, dues, or on a 
cooperative nonprofit basis, regularly engages in whole or 
in part in the practice of (I) obtaining credit or other information 
on consumers for the purpose of furnishing such information to consumer 
reporting agencies (as defined in 
clause (i) of this paragraph), or (II) serving as a marketing 
agent under arrangements enabling third parties to obtain 
such information from such reporting agencies. 
(j) Except as provided in subsection (i)(1) of this section, any 
disclosure made pursuant to this section shall be made in accordance 
with the provisions of section 552a of title 5. 
(k)(1)(A) Under regulations that the Secretary shall prescribe, 
the Secretary may disclose the name and address of any individual 
described in subparagraph (C) to an entity described in subparagraph
(B) in order to facilitate the determination by such entity 
whether the individual is, or after death will be, a suitable organ, 
tissue, or eye donor if- 

(i) the individual is near death (as determined by the Secretary) or 
is deceased; and 
(ii) the disclosure is permitted under regulations promulgated pursuant 
to section 264 of the Health Insurance Portability and Accountability 
Act of 1996 (42 U.S.C. 1320d-2 note). 
(B) An entity described in this subparagraph is- 
(i) an organ procurement organization, including eye and 
tissue banks; or 
(ii) an entity that the Secretary has determined- 

Sec. 5702 CH. 57-RECORDS AND INVESTIGATIONS 772 

(I) is substantially similar in function, professionalism, 
and reliability to an organ procurement organization; and 
(II) should be treated for purposes of this subsection in 
the same manner as an organ procurement organization. 
(C) An individual described in this subparagraph is- 
(i) a veteran; or 
(ii) a dependent of veteran. 
(2) In this subsection, the term ï¿½ï¿½organ procurement organizationï¿½ï¿½ has 
the meaning given the term ï¿½ï¿½qualified organ procurement 
organizationï¿½ï¿½ in section 371(b) of the Public Health Service Act (42 
U.S.C. 273(b)). 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1236, Sec. 3301; Pub. L. 
87-671, Sec. 2, Sept. 19, 1962, 76 Stat. 557; Pub. L. 91-24, Sec. 11, 
June 11, 1969, 83 Stat. 34; Pub. 

L. 92-540, title IV, Sec. 412, Oct. 24, 1972, 86 Stat. 1093; Pub. L. 
94-321, Sec. 1(a), June 29, 1976, 90 Stat. 713; Pub. L. 94-581, title 
II, Sec. 210(b), Oct. 21, 1976, 90 Stat. 2863; Pub. L. 96-466, title 
VI, Sec. 606, Oct. 17, 1980, 94 Stat. 2212; Pub. L. 101-94, title III, 
Sec. 302(a), Aug. 16, 1989, 103 Stat. 628; renumbered Sec. 5701 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 
105 Stat. 238, 239; Pub. L. 102-83, Sec. 2(c)(6), 4(a)(1), (2)(A)(xi), 
(3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 402-406;
Pub. L. 107-14, Sec. 8(a)(13), June 5, 2001, 115 Stat. 35; Pub. L. 
109-461, title II, Sec. 204(a), Dec. 22, 2006, 120 Stat. 3411.) 
ï¿½ 5702. Furnishing of records 

(a) Any person desiring a copy of any record, paper, and so 
forth, in the custody of the Secretary that may be disclosed under 
section 5701 of this title must submit to the Secretary an application 
in writing for such copy. The application shall state specifically- 
(1) the particular record, paper, and so forth, a copy of 
which is desired and whether certified or uncertified; and 
(2) the purpose for which such copy is desired to be used. 
(b) The Secretary may establish a schedule of fees for copies 
and certification of such records. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1236, Sec. 3302; renumbered 
Sec. 5702 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(2)(A)(xii), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403- 405; Pub. L. 103-446, 
title XII, Sec. 1201(e)(16), Nov. 2, 1994, 108 Stat. 4686.) 

ï¿½ 5703. Certification of records of District of Columbia 

When a copy of any public record of the District of Columbia 
is required by the Secretary to be used in determining the eligibility 
of any person for benefits under laws administered by the 
Secretary, the official custodian of such public record shall without 
charge provide the applicant for such benefits or any person (including 
any veteransï¿½ organization) acting on the veteranï¿½s behalf 
or the authorized representative of the Secretary with a certified 
copy of such record. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1237, Sec. 3303; Pub. L. 
99-576, title VII, Sec. 701(78), Oct. 28, 1986, 100 Stat. 3298; 
renumbered Sec. 5703, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), 
(2)(A)(xiii), Aug. 6, 1991, 105 Stat. 403.) 

ï¿½ 5704. Transcript of trial records 

The Secretary may purchase transcripts of the record, including all 
evidence, of trial of litigated cases. 


773 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5705 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1237, Sec. 3304; renumbered 
Sec. 5704, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 
L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 
ï¿½ 5705. Confidentiality of medical quality-assurance records 

(a) Records and documents created by the Department as part 
of a medical quality-assurance program (other than reports submitted 
pursuant to section 7311(g) of this title) are confidential and 
privileged and may not be disclosed to any person or entity except 
as provided in subsection (b) of this section. 
(b)(1) Subject to paragraph (2) of this subsection, a record or 
document described in subsection (a) of this section shall, upon 
request, be disclosed as follows: 

(A) To a Federal agency or private organization, if such 
record or document is needed by such agency or organization 
to perform licensing or accreditation functions related to Department 
health-care facilities or to perform monitoring, required by statute, 
of Department health-care facilities. 
(B) To a Federal executive agency or provider of health-
care services, if such record or document is required by such 
agency or provider for participation by the Department in a 
health-care program with such agency or provider. 
(C) To a criminal or civil law enforcement governmental 
agency or instrumentality charged under applicable law with 
the protection of the public health or safety, if a qualified 
representative of such agency or instrumentality makes a written 
request that such record or document be provided for a purpose 
authorized by law. 
(D) To health-care personnel, to the extent necessary to 
meet a medical emergency affecting the health or safety of any 
individual. 
(2) The name of and other identifying information regarding 
any individual patient or employee of the Department, or any other 
individual associated with the Department for purposes of a medical 
quality-assurance program, contained in a record or document 
described in subsection (a) of this section shall be deleted from any 
record or document before any disclosure made under this subsection if 
disclosure of such name and identifying information 
would constitute a clearly unwarranted invasion of personal privacy. 
(3) No person or entity to whom a record or document has been 
disclosed under this subsection shall make further disclosure of 
such record or document except for a purpose provided in this subsection. 
(4) Nothing in this section shall be construed as authority to 
withhold any record or document from a committee of either House 
of Congress or any joint committee of Congress, if such record or 
document pertains to any matter within the jurisdiction of such 
committee or joint committee. 
(5) Nothing in this section shall be construed as limiting the 
use of records and documents described in subsection (a) of this 
section within the Department (including contractors and consultants 
of the Department). 

Sec. 5711 CH. 57-RECORDS AND INVESTIGATIONS 774 

(6) Nothing in this section shall be construed as authorizing or 
requiring withholding from any person or entity the disclosure of 
statistical information regarding Department health-care programs 
(including such information as aggregate morbidity and mortality 
rates associated with specific activities at individual Department 
health-care facilities) that does not implicitly or explicitly identify 
individual patients or employees of the Department, or individuals 
who participated in the conduct of a medical quality-assurance review. 
(c) For the purpose of this section, the term ï¿½ï¿½medical quality-
assurance programï¿½ï¿½ means- 
(1) with respect to any activity carried out before October 
7, 1980, a Department systematic health-care review activity 
carried out by or for the Department for the purpose of improving the 
quality of medical care or improving the utilization of 
health-care resources in Department health-care facilities; and 
(2) with respect to any activity carried out on or after October 7, 
1980, a Department systematic health-care review activity designated 
by the Secretary to be carried out by or for 
the Department for either such purpose. 
(d)(1) The Secretary shall prescribe regulations to carry out 
this section. In prescribing such regulations, the Secretary shall 
specify those activities carried out before October 7, 1980, which 
the Secretary determines meet the definition of medical quality-
assurance program in subsection (c)(1) of this section and those 
activities which the Secretary has designated under subsection (c)(2) 
of this section. The Secretary shall, to the extent appropriate, 
incorporate into such regulations the provisions of the administrative 
guidelines and procedures governing such programs in existence on 
October 7, 1980. 

(2) An activity may not be considered as having been designated as a 
medical quality-assurance program for the purposes of 
subsection (c)(2) of this section unless the designation has been 
specified in such regulations. 
(e) Any person who, knowing that a document or record is a 
document or record described in subsection (a) of this section, 
willfully discloses such record or document except as provided for in 
subsection (b) of this section shall be fined not more than $5,000 
in the case of a first offense and not more than $20,000 in the case 
of a subsequent offense. 
(Added Pub. L. 96-385, title V, Sec. 505(a), Oct. 7, 1980, 94 Stat. 
1535, Sec. 3305; amended Pub. L. 99-166, title II, Sec. 201, Dec. 3, 
1985, 99 Stat. 949; renumbered Sec. 5705 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), 403(b)(2), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-54, Sec. 14(d)(4), June 13, 1991, 105 Stat. 285; 
Pub. L. 102-83, Sec. 4(a)(2)(F), (3), (4), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 
405.) 

SUBCHAPTER II-INVESTIGATIONS 

ï¿½ 5711. Authority to issue subpoenas 

(a) For the purposes of the laws administered by the Secretary, 
the Secretary, and those employees to whom the Secretary may 
delegate such authority, to the extent of the authority so delegated, 
shall have the power to- 

775 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5721 

(1) issue subpoenas for and compel the attendance of witnesses within a 
radius of 100 miles from the place of hearing; 
(2) require the production of books, papers, documents, 
and other evidence; 
(3) take affidavits and administer oaths and affirmations; 
(4) aid claimants in the preparation and presentation of 
claims; and 
(5) make investigations and examine witnesses upon any 
matter within the jurisdiction of the Department. 
(b) Any person required by such subpoena to attend as a witness shall 
be allowed and paid the same fees and mileage as are 
paid witnesses in the district courts of the United States. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1237, Sec. 3311; renumbered 
Sec. 5711, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-54, Sec. 
14(d)(5)(A), June 13, 1991, 105 Stat. 286.) 
ï¿½ 5712. Validity of affidavits 

Any such oath, affirmation, affidavit, or examination, when 
certified under the hand of any such employee by whom it was administered 
or taken and authenticated by the seal of the Department, may be offered 
or used in any court of the United States and 
without further proof of the identity or authority of such employee 
shall have like force and effect as if administered or taken before 
a clerk of such court. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1237, Sec. 3312; renumbered Sec. 
5712, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; 
Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404.) 
ï¿½ 5713. Disobedience to subpoena 

In case of disobedience to any such subpoena, the aid of any 
district court of the United States may be invoked in requiring the 
attendance and testimony of witnesses and the production of documentary 
evidence, and such court within the jurisdiction of which 
the inquiry is carried on may, in case of contumacy or refusal to 
obey a subpoena issued to any officer, agent, or employee of any 
corporation or to any other person, issue an order requiring such 
corporation or other person to appear or to give evidence touching 
the matter in question; and any failure to obey such order of the 
court may be punished by such court as a contempt thereof. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1237, Sec. 3313; renumbered Sec. 
5713, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-54, Sec. 
14(d)(6)(A), (B), June 13, 1991, 105 Stat. 286.) 
SUBCHAPTER III-INFORMATION SECURITY 

ï¿½ 5721. Purpose 

The purpose of the Information Security Program is to establish a program 
to provide security for Department information and 
information systems commensurate to the risk of harm, and to 
communicate the responsibilities of the Secretary, Under Secretaries, 
Assistant Secretaries, other key officials, Assistant Secretary for 
Information and Technology, Associate Deputy Assistant 
Secretary for Cyber and Information Security, and Inspector General of 
the Department of Veterans Affairs as outlined in the provisions of 
subchapter III of chapter 35 of title 44 (also known as the 


Sec. 5722 CH. 57-RECORDS AND INVESTIGATIONS 776 

ï¿½ï¿½Federal Information Security Management Act of 2002ï¿½ï¿½, which 
was enacted as part of the E-Government Act of 2002 (Public Law 
107-347)). 

(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 Stat. 
3450.) 

ï¿½ 5722. Policy 

(a) IN GENERAL.-The security of Department information and 
information systems is vital to the success of the mission of the 
Department. To that end, the Secretary shall establish and maintain 
a comprehensive Department-wide information security program to 
provide for the development and maintenance of cost-effective security 
controls needed to protect Department information, in any 
media or format, and Department information systems. 
(b) ELEMENTS.-The Secretary shall ensure that the Department information 
security program includes the following elements: 
(1) Periodic assessments of the risk and magnitude of 
harm that could result from the unauthorized access, use, disclosure, 
disruption, modification, or destruction of information 
and information systems that support the operations and assets of the 
Department. 
(2) Policies and procedures that- 
(A) are based on risk assessments; 
(B) cost-effectively reduce security risks to an acceptable level; and 
(C) ensure that information security is addressed 
throughout the life cycle of each Department information 
system. 
(3) Selection and effective implementation of minimum, 
mandatory technical, operational, and management security 
controls, or other compensating countermeasures, to protect 
the confidentiality, integrity, and availability of each Department 
system and its information. 
(4) Subordinate plans for providing adequate security for 
networks, facilities, systems, or groups of information systems, 
as appropriate. 
(5) Annual security awareness training for all Department 
employees, contractors, and all other users of VA sensitive data 
and Department information systems that identifies the information 
security risks associated with the activities of such employees, 
contractors, and users and the responsibilities of such 
employees, contractors, and users to comply with Department 
policies and procedures designed to reduce such risks. 
(6) Periodic testing and evaluation of the effectiveness of 
security controls based on risk, including triennial certification 
testing of all management, operational, and technical controls, 
and annual testing of a subset of those controls for each Department 
system. 
(7) A process for planning, developing, implementing, evaluating, and 
documenting remedial actions to address deficiencies in information 
security policies, procedures, and practices. 
(8) Procedures for detecting, immediately reporting, and 
responding to security incidents, including mitigating risks before 
substantial damage is done as well as notifying and con

777 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5723 

sulting with the US-Computer Emergency Readiness Team of 
the Department of Homeland Security, law enforcement agencies, the 
Inspector General of the Department, and other offices as appropriate. 

(9) Plans and procedures to ensure continuity of operations 
for Department systems. 
(c) COMPLIANCE WITH CERTAIN REQUIREMENTS.-The Secretary 
shall comply with the provisions of subchapter III of chapter 35 of 
title 44 and other related information security requirements promulgated 
by the National Institute of Standards and Technology 
and the Office of Management and Budget that define Department 
information system mandates. 
(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 Stat. 
3450.) 

ï¿½ 5723. Responsibilities 

(a) SECRETARY OF VETERANS AFFAIRS.-In accordance with the 
provisions of subchapter III of chapter 35 of title 44, the Secretary 
is responsible for the following: 
(1) Ensuring that the Department adopts a Department-
wide information security program and otherwise complies 
with the provisions of subchapter III of chapter 35 of title 44 
and other related information security requirements. 
(2) Ensuring that information security protections are commensurate with 
the risk and magnitude of the potential harm 
to Department information and information systems resulting 
from unauthorized access, use, disclosure, disruption, modification, or 
destruction. 
(3) Ensuring that information security management processes are 
integrated with Department strategic and operational 
planning processes. 
(4) Ensuring that the Under Secretaries, Assistant Secretaries, and 
other key officials of the Department provide adequate security for the 
information and information systems 
under their control. 
(5) Ensuring enforcement and compliance with the requirements imposed 
on the Department under the provisions of subchapter III of chapter 35 
of title 44. 
(6) Ensuring that the Department has trained program 
and staff office personnel sufficient to assist in complying with 
all the provisions of subchapter III of chapter 35 of title 44 and 
other related information security requirements. 
(7) Ensuring that the Assistant Secretary for Information 
and Technology, in coordination with the Under Secretaries, 
Assistant Secretaries, and other key officials of the Department report 
to Congress, the Office of Management and Budget, and other entities as 
required by law and Executive Branch 
direction on the effectiveness of the Department information 
security program, including remedial actions. 
(8) Notifying officials other than officials of the Department of data 
breaches when required under this subchapter. 
(9) Ensuring that the Assistant Secretary for Information 
and Technology has the authority and control necessary to develop, 
approve, implement, integrate, and oversee the policies, 
procedures, processes, activities, and systems of the Depart

Sec. 5723 CH. 57-RECORDS AND INVESTIGATIONS 778 

ment relating to subchapter III of chapter 35 of title 44, including 
the management of all related mission applications, information 
resources, personnel, and infrastructure. 

(10) Submitting to the Committees on Veteransï¿½ Affairs of 
the Senate and House of Representatives, the Committee on 
Government Reform of the House of Representatives, and the 
Committee on Homeland Security and Governmental Affairs of 
the Senate, not later than March 1 each year, a report on the 
compliance of the Department with subchapter III of chapter 
35 of title 44, with the information in such report displayed in 
the aggregate and separately for each Administration, office, 
and facility of the Department. 
(11) Taking appropriate action to ensure that the budget 
for any fiscal year, as submitted by the President to Congress 
under section 1105 of title 31, sets forth separately the 
amounts required in the budget for such fiscal year for compliance by 
the Department with Federal law and regulations governing information 
security, including this subchapter and subchapter III of chapter 35 
of title 44. 
(12) Providing notice to the Director of the Office of Management and 
Budget, the Inspector General of the Department, 
and such other Federal agencies as the Secretary considers appropriate 
of a presumptive data breach of which notice is provided the Secretary 
under subsection (b)(16) if, in the opinion 
of the Assistant Secretary for Information and Technology, the 
breach involves the information of twenty or more individuals. 
(b) ASSISTANT SECRETARY FOR INFORMATION AND TECHNOLOGY.-The Assistant 
Secretary for Information and Technology, 
as the Chief Information Officer of the Department, is responsible 
for the following: 
(1) Establishing, maintaining, and monitoring Department-
wide information security policies, procedures, control techniques, 
training, and inspection requirements as elements of 
the Department information security program. 
(2) Issuing policies and handbooks to provide direction for 
implementing the elements of the information security program to all 
Department organizations. 
(3) Approving all policies and procedures that are related 
to information security for those areas of responsibility that 
are currently under the management and the oversight of 
other Department organizations. 
(4) Ordering and enforcing Department-wide compliance 
with and execution of any information security policy. 
(5) Establishing minimum mandatory technical, operational, and 
management information security control requirements for each 
Department system, consistent with risk, the 
processes identified in standards of the National Institute of 
Standards and Technology, and the responsibilities of the Assistant 
Secretary to operate and maintain all Department systems currently 
creating, processing, collecting, or disseminating data on behalf of 
Department information owners. 
(6) Establishing standards for access to Department information 
systems by organizations and individual employees, 
and to deny access as appropriate. 

779 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5723 

(7) Directing that any incidents of failure to comply with 
established information security policies be immediately reported to 
the Assistant Secretary. 
(8) Reporting any compliance failure or policy violation directly to 
the appropriate Under Secretary, Assistant Secretary, 
or other key official of the Department for appropriate administrative 
or disciplinary action. 
(9) Reporting any compliance failure or policy violation directly to the 
appropriate Under Secretary, Assistant Secretary, 
or other key official of the Department along with taking action to 
correct the failure or violation. 
(10) Requiring any key official of the Department who is 
so notified to report to the Assistant Secretary with respect to 
an action to be taken in response to any compliance failure or 
policy violation reported by the Assistant Secretary. 
(11) Ensuring that the Chief Information Officers and Information 
Security Officers of the Department comply with all 
cyber security directives and mandates, and ensuring that 
these staff members have all necessary authority and means to 
direct full compliance with such directives and mandates relating to 
the acquisition, operation, maintenance, or use of information 
technology resources from all facility staff. 
(12) Establishing the VA National Rules of Behavior for 
appropriate use and protection of the information which is 
used to support Department missions and functions. 
(13) Establishing and providing supervision over an effective incident 
reporting system. 
(14) Submitting to the Secretary, at least once every quarter, a report 
on any deficiency in the compliance with subchapter III of chapter 35 of 
title 44 of the Department or any 
Administration, office, or facility of the Department. 
(15) Reporting immediately to the Secretary on any significant deficiency 
in the compliance described by paragraph (14). 
(16) Providing immediate notice to the Secretary of any 
presumptive data breach. 
(c) ASSOCIATE DEPUTY ASSISTANT SECRETARY FOR CYBER AND 
INFORMATION SECURITY.-In accordance with the provisions of subchapter III 
of chapter 35 of title 44, the Associate Deputy Assistant 
Secretary for Cyber and Information Security, as the Senior Information 
Security Officer of the Department, is responsible for carrying out the 
responsibilities of the Assistant Secretary for Information and 
Technology under the provisions of subchapter III of 
chapter 35 of title 44, as set forth in subsection (b). 
(d) DEPARTMENT INFORMATION OWNERS.-In accordance with 
the criteria of the Centralized IT Management System, Department 
information owners are responsible for the following: 
(1) Providing assistance to the Assistant Secretary for Information 
and Technology regarding the security requirements 
and appropriate level of security controls for the information 
system or systems where sensitive personal information is currently 
created, collected, processed, disseminated, or subject to 
disposal. 

Sec. 5723 CH. 57-RECORDS AND INVESTIGATIONS 780 

(2) Determining who has access to the system or systems 
containing sensitive personal information, including types of 
privileges and access rights. 
(3) Ensuring the VA National Rules of Behavior is signed 
on an annual basis and enforced by all system users to ensure 
appropriate use and protection of the information which is 
used to support Department missions and functions. 
(4) Assisting the Assistant Secretary for Information and 
Technology in the identification and assessment of the common 
security controls for systems where their information resides. 
(5) Providing assistance to Administration and staff office 
personnel involved in the development of new systems regarding the 
appropriate level of security controls for their information. 
(e) OTHER KEY OFFICIALS.-In accordance with the provisions 
of subchapter III of chapter 35 of title 44, the Under Secretaries, 
Assistant Secretaries, and other key officials of the Department are 
responsible for the following: 
(1) Implementing the policies, procedures, practices, and 
other countermeasures identified in the Department information security 
program that comprise activities that are under 
their day-to-day operational control or supervision. 
(2) Periodically testing and evaluating information security 
controls that comprise activities that are under their day-today 
operational control or supervision to ensure effective implementation. 
(3) Providing a plan of action and milestones to the Assistant Secretary 
for Information and Technology on at least a 
quarterly basis detailing the status of actions being taken to 
correct any security compliance failure or policy violation. 
(4) Complying with the provisions of subchapter III of 
chapter 35 of title 44 and other related information security 
laws and requirements in accordance with orders of the Assistant 
Secretary for Information and Technology to execute the 
appropriate security controls commensurate to responding to a 
security bulletin of the Security Operations Center of the Department, 
with such orders to supersede and take priority over 
all operational tasks and assignments and be complied with 
immediately. 
(5) Ensuring that- 
(A) all employees within their organizations take immediate action to
comply with orders from the Assistant 
Secretary for Information and Technology to- 
(i) mitigate the impact of any potential security 
vulnerability; 
(ii) respond to a security incident; or 
(iii) implement the provisions of a bulletin or alert 
of the Security Operations Center; and 
(B) organizational managers have all necessary authority and means to 
direct full compliance with such orders from the Assistant Secretary. 
(6) Ensuring the VA National Rules of Behavior is signed 
and enforced by all system users to ensure appropriate use and 

781 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5724 

protection of the information which is used to support Department 
missions and functions on an annual basis. 

(f) USERS OF DEPARTMENT INFORMATION AND INFORMATION 
SYSTEMS.-Users of Department information and information systems are 
responsible for the following: 
(1) Complying with all Department information security 
program policies, procedures, and practices. 
(2) Attending security awareness training on at least an 
annual basis. 
(3) Reporting all security incidents immediately to the Information
Security Officer of the system or facility and to their 
immediate supervisor. 
(4) Complying with orders from the Assistant Secretary for 
Information and Technology directing specific activities when a 
security incident occurs. 
(5) Signing an acknowledgment that they have read, understand, and 
agree to abide by the VA National Rules of Behavior on an annual basis. 
(g) INSPECTOR GENERAL OF DEPARTMENT OF VETERANS AFFAIRS.-In accordance 
with the provisions of subchapter III of chapter 35 of title 44, the 
Inspector General of the Department is responsible for the following: 
(1) Conducting an annual audit of the Department information security 
program. 
(2) Submitting an independent annual report to the Office 
of Management and Budget on the status of Department information 
security program, based on the results of the annual 
audit. 
(3) Conducting investigations of complaints and referrals 
of violations as considered appropriate by the Inspector General. 
(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 
Stat. 3451.) 

ï¿½ 5724. Provision of credit protection and other services 

(a) INDEPENDENT RISK ANALYSIS.-(1) In the event of a data 
breach with respect to sensitive personal information that is processed 
or maintained by the Secretary, the Secretary shall ensure 
that, as soon as possible after the data breach, a non-Department 
entity or the Office of Inspector General of the Department conducts an 
independent risk analysis of the data breach to determine 
the level of risk associated with the data breach for the potential 
misuse of any sensitive personal information involved in the data 
breach. 
(2) If the Secretary determines, based on the findings of a risk 
analysis conducted under paragraph (1), that a reasonable risk exists for 
the potential misuse of sensitive personal information involved in a 
data breach, the Secretary shall provide credit protection services in 
accordance with the regulations prescribed by the 
Secretary under this section. 
(b) REGULATIONS.-Not later than 180 days after the date of 
the enactment of the Veterans Benefits, Health Care, and Information 
Technology Act of 2006, the Secretary shall prescribe interim 
regulations for the provision of the following in accordance with 
subsection (a)(2): 

Sec. 5725 CH. 57-RECORDS AND INVESTIGATIONS 782 

(1) Notification. 
(2) Data mining. 
(3) Fraud alerts. 
(4) Data breach analysis. 
(5) Credit monitoring. 
(6) Identity theft insurance. 
(7) Credit protection services. 
(c) REPORT.-(1) For each data breach with respect to sensitive 
personal information processed or maintained by the Secretary, the 
Secretary shall promptly submit to the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives a report containing 
the findings of any independent risk analysis conducted 
under subsection (a)(1), any determination of the Secretary under 
subsection (a)(2), and a description of any services provided pursuant 
to subsection (b). 
(2) In the event of a data breach with respect to sensitive personal 
information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, 
Air Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense, the Secretary shall submit the report required 
under paragraph (1) to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House 
of Representatives in addition to the Committees on Veteransï¿½ Affairs of 
the Senate and House of Representatives. 
(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 Stat. 
3455.) 

ï¿½ 5725. Contracts for data processing or maintenance 

(a) CONTRACT REQUIREMENTS.-If the Secretary enters into a 
contract for the performance of any Department function that requires 
access to sensitive personal information, the Secretary shall 
require as a condition of the contract that- 
(1) the contractor shall not, directly or through an affiliate 
of the contractor, disclose such information to any other person 
unless the disclosure is lawful and is expressly permitted 
under the contract; 
(2) the contractor, or any subcontractor for a subcontract 
of the contract, shall promptly notify the Secretary of any data 
breach that occurs with respect to such information. 
(b) LIQUIDATED DAMAGES.-Each contract subject to the requirements of 
subsection (a) shall provide for liquidated damages 
to be paid by the contractor to the Secretary in the event of a data 
breach with respect to any sensitive personal information processed 
or maintained by the contractor or any subcontractor under that 
contract. 
(c) PROVISION OF CREDIT PROTECTION SERVICES.-Any amount 
collected by the Secretary under subsection (b) shall be deposited 
in or credited to the Department account from which the contractor 
was paid and shall remain available for obligation without fiscal 
year limitation exclusively for the purpose of providing credit 
protection services pursuant to section 5724(b) of this title. 
(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 Stat. 
3456.) 


783 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5727 

ï¿½ 5726. Reports and notice to congress on data breaches 

(a) QUARTERLY REPORTS.-(1) Not later than 30 days after the 
last day of a fiscal quarter, the Secretary shall submit to the 
Committees on Veteransï¿½ Affairs of the Senate and House of 
Representatives a report on any data breach with respect to sensitive 
personal information processed or maintained by the Department that 
occurred during that quarter. 
(2) Each report submitted under paragraph (1) shall identify, 
for each data breach covered by the report- 
(A) the Administration and facility of the Department responsible for 
processing or maintaining the sensitive personal 
information involved in the data breach; and 
(B) the status of any remedial or corrective action with respect to 
the data breach. 
(b) NOTIFICATION OF SIGNIFICANT DATA BREACHES.-(1) In the 
event of a data breach with respect to sensitive personal information 
processed or maintained by the Secretary that the Secretary 
determines is significant, the Secretary shall provide notice of such 
breach to the Committees on Veteransï¿½ Affairs of the Senate and 
House of Representatives. 
(2) In the event of a data breach with respect to sensitive personal 
information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, 
Air Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense that the Secretary determines is significant 
under paragraph (1), the Secretary shall provide the notice required
under paragraph (1) to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House 
of Representatives in addition to the Committees on Veteransï¿½ Affairs 
of the Senate and House of Representatives. 
(3) Notice under paragraphs (1) and (2) shall be provided 
promptly following the discovery of such a data breach and the 
implementation of any measures necessary to determine the scope of 
the breach, prevent any further breach or unauthorized disclosures, 
and reasonably restore the integrity of the data system. 
(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 Stat. 
3457.) 

ï¿½ 5727. Definitions 

In this subchapter: 

(1) AVAILABILITY.-The term ï¿½ï¿½availabilityï¿½ï¿½ means ensuring 
timely and reliable access to and use of information. 
(2) CONFIDENTIALITY.-The term ï¿½ï¿½confidentialityï¿½ï¿½ means 
preserving authorized restrictions on access and disclosure, including
means for protecting personal privacy and proprietary 
information. 
(3) CONTROL TECHNIQUES.-The term ï¿½ï¿½control techniquesï¿½ï¿½ 
means methods for guiding and controlling the operations of 
information systems to ensure adherence to the provisions of 
subchapter III of chapter 35 of title 44 and other related information 
security requirements. 
(4) DATA BREACH.-The term ï¿½ï¿½data breachï¿½ï¿½ means the loss, 
theft, or other unauthorized access, other than those incidental 
to the scope of employment, to data containing sensitive per

Sec. 5727 CH. 57-RECORDS AND INVESTIGATIONS 784 

sonal information, in electronic or printed form, that results in 
the potential compromise of the confidentiality or integrity of 
the data. 

(5) DATA BREACH ANALYSIS.-The term ï¿½ï¿½data breach analysisï¿½ï¿½ means the 
process used to determine if a data breach has 
resulted in the misuse of sensitive personal information. 
(6) FRAUD RESOLUTION SYSTEMS.-The term ï¿½ï¿½fraud resolution servicesï¿½ï¿½ 
means services to assist an individual in the 
process of recovering and rehabilitating the credit of the individual 
after the individual experiences identity theft. 
(7) IDENTITY THEFT.-The term ï¿½ï¿½identity theftï¿½ï¿½ has the 
meaning given such term under section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681a). 
(8) IDENTITY THEFT INSURANCE.-The term ï¿½ï¿½identity theft 
insuranceï¿½ï¿½ means any insurance policy that pays benefits for 
costs, including travel costs, notary fees, and postage costs, lost 
wages, and legal fees and expenses associated with efforts to 
correct and ameliorate the effects and results of identity theft 
of the insured individual. 
(9) INFORMATION OWNER.-The term ï¿½ï¿½information ownerï¿½ï¿½ 
means an agency official with statutory or operational authority for 
specified information and responsibility for establishing 
the criteria for its creation, collection, processing, dissemination, 
or disposal, which responsibilities may extend to interconnected 
systems or groups of interconnected systems. 
(10) INFORMATION RESOURCES.-The term ï¿½ï¿½information resourcesï¿½ï¿½ means 
information in any medium or form and its related resources, such as 
personnel, equipment, funds, and information technology. 
(11) INFORMATION SECURITY.-The term ï¿½ï¿½information securityï¿½ï¿½ means 
protecting information and information systems 
from unauthorized access, use, disclosure, disruption, modification, 
or destruction in order to provide integrity, confidentiality, and 
availability. 
(12) INFORMATION SECURITY REQUIREMENTS.-The term 
ï¿½ï¿½information security requirementsï¿½ï¿½ means information security 
requirements promulgated in accordance with law, or directed by the 
Secretary of Commerce, the National Institute of 
Standards and Technology, and the Office of Management and 
Budget, and, as to national security systems, the President. 
(13) INFORMATION SYSTEM.-The term ï¿½ï¿½information systemï¿½ï¿½ means a 
discrete set of information resources organized 
for the collection, processing, maintenance, use, sharing, dissemination,
or disposition of information, whether automated 
or manual. 
(14) INTEGRITY.-The term ï¿½ï¿½integrityï¿½ï¿½ means guarding 
against improper information modification or destruction, and 
includes ensuring information non-repudiation and authenticity. 
(15) NATIONAL SECURITY SYSTEM.-The term ï¿½ï¿½national security systemï¿½ï¿½ 
means an information system that is protected 
at all times by policies and procedures established for the processing, 
maintenance, use, sharing, dissemination or disposition 
of information that has been specifically authorized under cri

785 CH. 57-RECORDS AND INVESTIGATIONS Sec. 5727 

teria established by statute or Executive Order to be kept classified 
in the interest of national defense or foreign policy. 

(16) PLAN OF ACTION AND MILESTONES.-The term ï¿½ï¿½plan of 
action and milestonesï¿½ï¿½, means a plan used as a basis for the 
quarterly reporting requirements of the Office of Management 
and Budget that includes the following information: 
(A) A description of the security weakness. 
(B) The identity of the office or organization responsible for
resolving the weakness. 
(C) An estimate of resources required to resolve the 
weakness by fiscal year. 
(D) The scheduled completion date. 
(E) Key milestones with estimated completion dates. 
(F) Any changes to the original key milestone date. 
(G) The source that identified the weakness. 
(H) The status of efforts to correct the weakness. 
(17) PRINCIPAL CREDIT REPORTING AGENCY.-The term 
ï¿½ï¿½principal credit reporting agencyï¿½ï¿½ means a consumer reporting 
agency as described in section 603(p) of the Fair Credit Reporting Act 
(15 U.S.C. 1681a(p)). 
(18) SECURITY INCIDENT.-The term ï¿½ï¿½security incidentï¿½ï¿½ 
means an event that has, or could have, resulted in loss or 
damage to Department assets, or sensitive information, or an 
action that breaches Department security procedures. 
(19) SENSITIVE PERSONAL INFORMATION.-The term ï¿½ï¿½sensitive personal 
informationï¿½ï¿½, with respect to an individual, 
means any information about the individual maintained by an 
agency, including the following: 
(A) Education, financial transactions, medical history, 
and criminal or employment history. 
(B) Information that can be used to distinguish or 
trace the individualï¿½s identity, including name, social security 
number, date and place of birth, motherï¿½s maiden 
name, or biometric records. 
(20) SUBORDINATE PLAN.-The term ï¿½ï¿½subordinate planï¿½ï¿½, 
also referred to as a ï¿½ï¿½system security planï¿½ï¿½, means a subordinate 
plan defines the security controls that are either planned 
or implemented for networks, facilities, systems, or groups of 
systems, as appropriate, within a specific accreditation boundary. 
(21) TRAINING.-The term ï¿½ï¿½trainingï¿½ï¿½ means a learning experience in 
which an individual is taught to execute a specific 
information security procedure or understand the information 
security common body of knowledge. 
(22) VA NATIONAL RULES OF BEHAVIOR.-The term ï¿½ï¿½VA 
National Rules of Behaviorï¿½ï¿½ means a set of Department rules 
that describes the responsibilities and expected behavior of 
personnel with regard to information system usage. 
(23) VA SENSITIVE DATA.-The term ï¿½ï¿½VA sensitive dataï¿½ï¿½ 
means all Department data, on any storage media or in any 
form or format, which requires protection due to the risk of 
harm that could result from inadvertent or deliberate disclosure, 
alteration, or destruction of the information and includes 
information whose improper use or disclosure could adversely 

Sec. 5728 CH. 57-RECORDS AND INVESTIGATIONS 786 

affect the ability of an agency to accomplish its mission, 
proprietary information, and records about individuals requiring 
protection under applicable confidentiality provisions. 

(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 
Stat. 3457.) 

ï¿½ 5728. Authorization of appropriations 

There are authorized to be appropriated to carry out this sub

chapter such sums as may be necessary for each fiscal year. 

(Added Pub. L. 109-461, title IX, Sec. 902(a), Dec. 22, 2006, 120 
Stat. 3460.) 


CHAPTER 59 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


787 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½ 

CHAPTER 59-AGENTS AND ATTORNEYS 

Sec. 
5901. Prohibition against acting as claims agent or attorney. 
5902. Recognition of representatives of organizations. 
5903. Recognition with respect to particular claims. 
5904. Recognition of agents and attorneys generally. 
5905. Penalty for certain acts.


ï¿½ 5901. Prohibition against acting as claims agent or attorney 

Except as provided by section 500 of title 5, no individual may 
act as an agent or attorney in the preparation, presentation, or 
prosecution of any claim under laws administered by the Secretary 
unless such individual has been recognized for such purposes by 
the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1238, Sec. 3401; Pub. L. 
91-24, Sec. 12(a), June 11, 1969, 83 Stat. 34; Pub. L. 99-576, 
title VII, Sec. 701(79), Oct. 28, 1986, 100 Stat. 3298; renumbered 
Sec. 5901, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 
1991, 105 
Stat. 403-405.) 

ï¿½ 5902. Recognition of representatives of organizations 

(a)(1) The Secretary may recognize representatives of the 
American National Red Cross, the American Legion, the Disabled 
American Veterans, the United Spanish War Veterans, the Veterans of 
Foreign Wars, and such other organizations as the Secretary may 
approve, in the preparation, presentation, and prosecution of claims 
under laws administered by the Secretary. 

(2) The Secretary may, in the discretion of the Secretary, furnish, if 
available, space and office facilities for the use of paid full-
time representatives of national organizations so recognized. 
(b)(1) No individual shall be recognized under this section- 

(A) unless the individual has certified to the Secretary that 
no fee or compensation of any nature will be charged any individual for 
services rendered in connection with any claim; and 
(B) unless, with respect to each claim, such individual has 
filed with the Secretary a power of attorney, executed in such 
manner and form as the Secretary may prescribe. 
(2) An individual recognized under this section shall be subject 
to the provisions of section 5904(b) of this title on the same basis 
as an individual recognized under section 5904(a) of this title. 
(c)(1) Unless a claimant specifically indicates in a power of attorney 
filed with the Department a desire to appoint only a recognized 
representative of an organization listed in or approved under 

789 


Sec. 5903 CH. 59-AGENTS AND ATTORNEYS 790 

subsection (a), the Secretary may, for any purpose, treat the power 
of attorney naming such an organization, a specific office of such 
an organization, or a recognized representative of such an organization 
as the claimantï¿½s representative as an appointment of the 
entire organization as the claimantï¿½s representative. 

(2) Whenever the Secretary is required or permitted to notify 
a claimantï¿½s representative, and the claimant has named in a 
power of attorney an organization listed in or approved under subsection 
(a), a specific office of such an organization, or a recognized 
representative of such an organization without specifically indicating 
a desire to appoint only a recognized representative of the 
organization, the Secretary shall notify the organization at the address 
designated by the organization for the purpose of receiving 
the notification concerned. 
(d) Service rendered in connection with any such claim, while 
not on active duty, by any retired officer, warrant officer, or enlisted 
member of the Armed Forces recognized under this section 
shall not be a violation of sections 203, 205, 206, or 207 of title 18. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1238, Sec. 3402; Pub. L. 91-24, 
Sec. 12(b), 
June 11, 1969, 83 Stat. 34; Pub. L. 98-160, title VII, Sec. 703(5), 
Nov. 21, 1983, 
97 Stat. 1010; renumbered Sec. 5902, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 
7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(1), (b)(1), (2)(E), 
Aug. 6, 1991, 105 
Stat. 403-405; Pub. L. 104-275, title V, Sec. 508(a), Oct. 9, 1996, 
110 Stat. 3343; 
Pub. L. 109-461, title I, Sec. 101(a)(2), Dec. 22, 2006, 120 Stat. 
3406.) 

ï¿½ 5903. Recognition with respect to particular claims 

(a) IN GENERAL.-The Secretary may recognize any individual 
for the preparation, presentation, and prosecution of any particular 
claim for benefits under any of the laws administered by the Secretary 
if- 
(1) such individual has certified to the Secretary that no 
fee or compensation of any nature will be charged any individual for 
services rendered in connection with such claim; and 
(2) such individual has filed with the Secretary a power of 
attorney, executed in such manner and in such form as the 
Secretary may prescribe. 
(b) SUSPENSION.-An individual recognized under this section 
shall be subject to the provisions of section 5904(b) of this title on 
the same basis as an individual recognized under section 5904(a) 
of this title. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1238, Sec. 3403; renumbered 
Sec. 5903, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-83, Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; 
Pub. L. 109-461, title I, Sec. 
101(a)(3), Dec. 22, 2006, 120 Stat. 3407.) 
ï¿½ 5904. Recognition of agents and attorneys generally 

(a) RECOGNITION.-(1) Except as provided in paragraph (4), the 
Secretary may recognize any individual as an agent or attorney for 
the preparation, presentation, and prosecution of claims under laws 
administered by the Secretary. 
(2) The Secretary shall prescribe in regulations (consistent 
with the Model Rules of Professional Conduct of the American Bar 
Association) qualifications and standards of conduct for individuals 
recognized under this section, including a requirement that, as a 
condition of being so recognized, an individual must- 

791 CH. 59-AGENTS AND ATTORNEYS Sec. 5904 

(A) show that such individual is of good moral character 
and in good repute, is qualified to render claimants valuable 
service, and is otherwise competent to assist claimants in presenting 
claims; 
(B) have such level of experience or specialized training as 
the Secretary shall specify; and 
(C) certify to the Secretary that the individual has satisfied any 
qualifications and standards prescribed by the Secretary under this 
section. 
(3) The Secretary shall prescribe in regulations requirements 
that each agent or attorney recognized under this section provide 
annually to the Secretary information about any court, bar, or Federal 
or State agency to which such agent or attorney is admitted 
to practice or otherwise authorized to appear, any relevant 
identification number or numbers, and a certification by such agent or 
attorney that such agent or attorney is in good standing in every 
jurisdiction where the agent or attorney is admitted to practice or 
otherwise authorized to appear. 
(4) The Secretary may not recognize an individual as an agent 
or attorney under paragraph (1) if such individual has been suspended 
or disbarred by any court, bar, or Federal or State agency 
to which the individual was previously admitted to practice and 
has not been subsequently reinstated. 
(5) The Secretary may prescribe in regulations reasonable restrictions 
on the amount of fees that an agent or attorney may 
charge a claimant for services rendered in the preparation, 
presentation, and prosecution of a claim before the Department. A fee 
that does not exceed 20 percent of the past due amount of benefits 
awarded on a claim shall be presumed to be reasonable. 
(6)(A) The Secretary may charge and collect an assessment 
from an individual recognized as an agent or attorney under this 
section in any case in which the Secretary pays to the agent or 
attorney, from past-due benefits owed to a claimant represented by 
the agent or attorney, an amount as a fee in accordance with a fee 
arrangement between the claimant and the agent or attorney. 

(B) The amount of an assessment under subparagraph (A) 
shall be equal to five percent of the amount of the fee required to 
be paid to the agent or attorney, except that the amount of such 
an assessment may not exceed $100. 
(C) The Secretary may collect an assessment under subparagraph (A) 
by offsetting the amount of the fee otherwise required to 
be paid to the agent or attorney from the past-due benefits owed 
to the claimant represented by the agent or attorney. 
(D) An agent or attorney who is charged an assessment under 
subparagraph (A) may not, directly or indirectly, request, receive, 
or obtain reimbursement for such assessment from the claimant 
represented by the agent or attorney. 
(E) Amounts collected under this paragraph shall be deposited 
in the account available for administrative expenses for veteransï¿½ 
benefits programs. Amounts so deposited shall be merged with 
amounts in such account and shall be available for the same purpose, 
and subject to the same conditions and limitations, as 
amounts otherwise in such account. 

Sec. 5904 CH. 59-AGENTS AND ATTORNEYS 792 

(b) SUSPENSION OF AGENTS AND ATTORNEYS.-The Secretary, 
after notice and opportunity for a hearing, may suspend or exclude 
from further practice before the Department any agent or attorney 
recognized under this section if the Secretary finds that such agent 
or attorney- 
(1) has engaged in any unlawful, unprofessional, or dishonest practice; 
(2) has been guilty of disreputable conduct; 
(3) is incompetent; 
(4) has violated or refused to comply with any of the laws 
administered by the Secretary, or with any of the regulations 
or instructions governing practice before the Department; 
(5) has in any manner deceived, misled, or threatened any 
actual or prospective claimant; 
(6) has presented to the Secretary a frivolous claim, issue, 
or argument, involving conduct inconsistent with ethical standards for 
the practice of law; 
(7) has been suspended or disbarred by any court or bar 
to which such agent or attorney was previously admitted to 
practice, or has been disqualified from participating in or appearing 
before any Federal agency, and has not been subsequently reinstated; 
(8) has charged excessive or unreasonable fees, as determined by the 
Secretary in accordance with subsection (c)(3)(A); 
or 
(9) has failed to comply with any other condition specified 
in regulations prescribed by the Secretary for purposes of this 
subsection. 
(c)(1) Except as provided in paragraph (4), in connection with 
a proceeding before the Department with respect to benefits under 
laws administered by the Secretary, a fee may not be charged, allowed, 
or paid for services of agents and attorneys with respect to 
services provided before the date on which a notice of disagreement 
is filed with respect to the case. The limitation in the preceding 
sentence does not apply to fees charged, allowed, or paid for services 
provided with respect to proceedings before a court. 

(2) A person who, acting as agent or attorney in a case referred 
to in paragraph (1) of this subsection, represents a person before 
the Department or the Board of Veteransï¿½ Appeals after a notice of 
disagreement is filed with respect to the case shall file a copy of 
any fee agreement between them with the Secretary pursuant to 
regulations prescribed by the Secretary. 
(3)(A) The Secretary may, upon the Secretaryï¿½s own motion or 
at the request of the claimant, review a fee agreement filed pursuant 
to paragraph (2) and may order a reduction in the fee called 
for in the agreement if the Secretary finds that the fee is excessive 
or unreasonable. 

(B) A finding or order of the Secretary under subparagraph (A) 
may be reviewed by the Board of Veteransï¿½ Appeals under section 
7104 of this title. 
(C) If the Secretary under subsection (b) suspends or excludes 
from further practice before the Department any agent or attorney 
who collects or receives a fee in excess of the amount authorized 
under this section, the suspension shall continue until the agent or 

793 CH. 59-AGENTS AND ATTORNEYS Sec. 5905 

attorney makes full restitution to each claimant from whom the 
agent or attorney collected or received an excessive fee. If the agent 
or attorney makes such restitution, the Secretary may reinstate 
such agent or attorney under such rules as the Secretary may prescribe. 

(4) A reasonable fee may be charged or paid in connection with 
any proceeding before the Department in a case arising out of a 
loan made, guaranteed, or insured under chapter 37 of this title. 
A person who charges a fee under this paragraph shall enter into 
a written agreement with the person represented and shall file a 
copy of the fee agreement with the Secretary at such time, and in 
such manner, as may be specified by the Secretary. 
(d) PAYMENT OF FEES OUT OF PAST-DUE BENEFITS.-(1) When 
a claimant and an agent or attorney have entered into a fee agreement 
described in paragraph (2), the total fee payable to the agent 
or attorney may not exceed 20 percent of the total amount of any 
past-due benefits awarded on the basis of the claim. 
(2)(A) A fee agreement referred to in paragraph (1) is one 
under which the total amount of the fee payable to the agent or 
attorney- 

(i) is to be paid to the agent or attorney by the Secretary 
directly from any past-due benefits awarded on the basis of the 
claim; and 
(ii) is contingent on whether or not the matter is resolved 
in a manner favorable to the claimant. 
(B) For purposes of subparagraph (A), a claim shall be considered to 
have been resolved in a manner favorable to the claimant 
if all or any part of the relief sought is granted. 
(3) To the extent that past-due benefits are awarded in any 
proceeding before the Secretary, the Board of Veteransï¿½ Appeals, or 
the United States Court of Appeals for Veterans Claims, the Secretary 
may direct that payment of any fee to an agent or attorney 
under a fee arrangement described in paragraph (1) be made out 
of such past-due benefits. In no event may the Secretary withhold 
for the purpose of such payment any portion of benefits payable for 
a period after the date of the final decision of the Secretary, the 
Board of Veteransï¿½ Appeals, or Court of Appeals for Veterans 
Claims making (or ordering the making of) the award. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1238, Sec. 3404; Pub. L. 
99-576, title VII, 
Sec. 701(80), Oct. 28, 1986, 100 Stat. 3298; Pub. L. 100-687, div. A, 
title I, Sec. 
104(a), Nov. 18, 1988, 102 Stat. 4108; renumbered Sec. 5904 and amended 
Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102- 
83, Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
403-405; Pub. L. 102- 
405, title III, Sec. 303(a), Oct. 9, 1992, 106 Stat. 1985; Pub. L. 
103-446, title V, Sec. 
504(a), Nov. 2, 1994, 108 Stat. 4663; Pub. L. 105-368, title V, Sec. 
512(a)(1), Nov. 
11, 1998, 112 Stat. 3341; Pub. L. 109-461, title I, Sec. 101(a)(1), 
(b), (c)(1), (d)-(f), 
Dec. 22, 2006, 120 Stat. 3405, 3407, 3408.) 

ï¿½ 5905. Penalty for certain acts 

Whoever wrongfully withholds from any claimant or beneficiary any part 
of a benefit or claim allowed and due to the claimant or beneficiary, 
shall be fined as provided in title 18, or imprisoned not more than one 
year, or both. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1239, Sec. 3405; Pub. L. 
99-576, title VII, 
Sec. 701(81), Oct. 28, 1986, 100 Stat. 3298; Pub. L. 100-687, div. A, 
title I, Sec. 


Sec. 5905 CH. 59-AGENTS AND ATTORNEYS 794 

104(b), Nov. 18, 1988, 102 Stat. 4109; renumbered Sec. 5905 and 
amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102- 
83, Sec. 5(c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 109-461, 
title I, Sec. 101(g), 
Dec. 22, 2006, 120 Stat. 3408.) 


CHAPTER 61 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


795 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½ 

CHAPTER 61-PENAL AND FORFEITURE PROVISIONS 

Sec. 
6101. Misappropriation by fiduciaries. 
6102. Fraudulent acceptance of payments. 
6103. Forfeiture for fraud. 
6104. Forfeiture for treason. 
6105. Forfeiture for subversive activities. 
6106. Misuse of benefits by fiduciaries. 
6107. Reissuance of benefits. 
6108. Authority for judicial orders of restitution.


ï¿½ 6101. Misappropriation by fiduciaries 

(a) Whoever, being a fiduciary (as defined in section 5506 of 
this title) for the benefit of a minor, incompetent, or other 
beneficiary under laws administered by the Secretary, shall lend, borrow, 
pledge, hypothecate, use, or exchange for other funds or property, except 
as authorized by law, or embezzle or in any manner 
misappropriate any such money or property derived therefrom in 
whole or in part and coming into such fiduciaryï¿½s control in any 
manner whatever in the execution of such fiduciaryï¿½s trust, or 
under color of such fiduciaryï¿½s office or service as such fiduciary, 
shall be fined in accordance with title 18, or imprisoned not more 
than five years, or both. 
(b) Any willful neglect or refusal to make and file proper accountings 
or reports concerning such money or property as required 
by law shall be taken to be sufficient evidence prima facie of such 
embezzlement or misappropriation. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1239, Sec. 3501; Pub. L. 99-576, 
title VII, 
Sec. 701(82), Oct. 28, 1986, 100 Stat. 3298; renumbered Sec. 6101, Pub. 
L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-54, 
Sec. 14(d)(7), 
June 13, 1991, 105 Stat. 286; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 
1991, 105 Stat. 
403; Pub. L. 103-446, title XII, Sec. 1201(e)(17), Nov. 2, 1994, 108
Stat. 4686; Pub. 

L. 108-454, title V, Sec. 501(c), Dec. 10, 2004, 118 Stat. 3618.) 
ï¿½ 6102. Fraudulent acceptance of payments 

(a) Any person entitled to monetary benefits under any of the 
laws administered by the Secretary whose right to payment thereof 
ceases upon the happening of any contingency, who thereafter 
fraudulently accepts any such payment, shall be fined in accordance 
with title 18, or imprisoned not more than one year, or both. 
(b) Whoever obtains or receives any money or check under any 
of the laws administered by the Secretary without being entitled to 
it, and with intent to defraud the United States or any beneficiary 
of the United States, shall be fined in accordance with title 18, or 
imprisoned not more than one year, or both. 
797 


Sec. 6103 CH. 61-PENAL AND FORFEITURE PROVISIONS 798 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1239, Sec. 3502; renumbered 
ec. 6102, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 
L. 102-54, Sec. 
14(d)(7), June 13, 1991, 105 Stat. 286; Pub. L. 102-83, Sec. 4(a)(1), 
Aug. 6, 1991,105 Stat. 403.) 
ï¿½ 6103. Forfeiture for fraud 

(a) Whoever knowingly makes or causes to be made or conspires, combines,
aids, or assists in, agrees to, arranges for, or in 
any way procures the making or presentation of a false or fraudulent 
affidavit, declaration, certificate, statement, voucher, or paper, 
concerning any claim for benefits under any of the laws administered by 
the Secretary (except laws pertaining to insurance benefits) shall 
forfeit all rights, claims, and benefits under all laws administered by 
the Secretary (except laws pertaining to insurance 
benefits). 
(b) Whenever a veteran entitled to disability compensation has 
forfeited the right to such compensation under this section, the 
compensation payable but for the forfeiture shall thereafter be paid 
to the veteranï¿½s spouse, children, and parents. Payments made to 
a spouse, children, and parents under the preceding sentence shall 
not exceed the amounts payable to each if the veteran had died 
from service-connected disability. No spouse, child, or parent who 
participated in the fraud for which forfeiture was imposed shall receive 
any payment by reason of this subsection. An apportionment 
award under this subsection may not be made in any case after 
September 1, 1959. 
(c) Forfeiture of benefits by a veteran shall not prohibit payment of the 
burial allowance, death compensation, dependency and 
indemnity compensation, or death pension in the event of the veteranï¿½s 
death. 
(d)(1) After September 1, 1959, no forfeiture of benefits may be 
imposed under this section or section 6104 of this title upon any 
individual who was a resident of, or domiciled in, a State at the 
time the act or acts occurred on account of which benefits would, 
but not for this subsection, be forfeited unless such individual 
ceases to be a resident of, or domiciled in, a State before the expiration 
of the period during which criminal prosecution could be instituted. This 
subsection shall not apply with respect to (A) any forfeiture occurring 
before September 1, 1959, or (B) an act or acts 
which occurred in the Philippine Islands before July 4, 1946. 

(2) The Secretary is hereby authorized and directed to review 
all cases in which, because of a false or fraudulent affidavit, 
declaration, certificate, statement, voucher, or paper, a forfeiture of 
gratuitous benefits under laws administered by the Secretary was 
imposed, pursuant to this section or prior provisions of law, on or 
before September 1, 1959. In any such case in which the Secretary 
determines that the forfeiture would not have been imposed under 
the provisions of this section in effect after September 1, 1959, the 
Secretary shall remit the forfeiture, effective June 30, 1972. Benefits 
to which the individual concerned becomes eligible by virtue of 
any such remission may be awarded, upon application therefor, and 
the effective date of any award of compensation, dependency and 
indemnity compensation, or pension made in such a case shall be 
fixed in accordance with the provisions of section 5110(g) of this 
title. 

799 CH. 61-PENAL AND FORFEITURE PROVISIONS Sec. 6105 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1240, Sec. 3503; Pub. L. 86-222, 
Sec. 1, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91-24, Sec. 13(a), June 11, 
1969, 83 Stat. 34; Pub. L. 92-328, title II, Sec. 206, June 30, 1972, 86 
Stat. 397; Pub. L. 98-160, title VII, Sec. 703(6), Nov. 21, 1983, 97 
Stat. 1011; Pub. L. 99-576, title VII, Sec. 701(83), Oct. 28, 1986, 100 
Stat. 3298; renumbered Sec. 6103 and amended Pub. L. 102-40, title IV, 
Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, 
Sec. 14(d)(8), June 13, 1991, 105 Stat. 286; Pub. L. 102-83, Sec.
4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 
103-446, title XII, Sec. 1201(e)(18), (f)(5), 
Nov. 2, 1994, 108 Stat. 4686, 4687.) 

ï¿½ 6104. Forfeiture for treason 

(a) Any person shown by evidence satisfactory to the Secretary 
to be guilty of mutiny, treason, sabotage, or rendering assistance 
to an enemy of the United States or of its allies shall forfeit all 
accrued or future gratuitous benefits under laws administered by the 
Secretary. 
(b) The Secretary, in the Secretaryï¿½s discretion, may apportion 
and pay any part of benefits forfeited under subsection (a) to the 
dependents of the person forfeiting such benefits. No dependent of 
any person shall receive benefits by reason of this subsection in 
excess of the amount to which the dependent would be entitled if 
such person were dead. 
(c) In the case of any forfeiture under this section there shall 
be no authority after September 1, 1959 (1) to make an apportionment 
award pursuant to subsection (b) or (2) to make an award to 
any person of gratuitous benefits based on any period of military, 
naval, or air service commencing before the date of commission of 
the offense. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1240, Sec. 3504; Pub. L. 
86-222, Sec. 2, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91-24, Sec. 
13(b), June 11, 1969, 83 Stat. 34; Pub. L. 97-295, Sec. 4(78), Oct. 
12, 1982, 96 Stat. 1311; Pub. L. 99-576, title VII, Sec. 701(84), 
Oct. 28, 1986, 100 Stat. 3298; renumbered Sec. 6104, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, 
Sec. 4(a)(1), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405.) 

ï¿½ 6105. Forfeiture for subversive activities 

(a) Any individual who is convicted after September 1, 1959, of 
any offense listed in subsection (b) of this section shall, from and 
after the date of commission of such offense, have no right to 
gratuitous benefits (including the right to burial in a national 
cemetery) 
under laws administered by the Secretary based on periods of military, 
naval, or air service commencing before the date of the commission of 
such offense and no other person shall be entitled to 
such benefits on account of such individual. After receipt of notice 
of the return of an indictment for such an offense the Secretary 
shall suspend payment of such gratuitous benefits pending disposition of 
the criminal proceedings. If any individual whose right to 
benefits has been terminated pursuant to this section is granted a 
pardon of the offense by the President of the United States, the 
right to such benefits shall be restored as of the date of such pardon. 
(b) The offenses referred to in subsection (a) of this section are 
those offenses for which punishment is prescribed in- 
(1) sections 894, 904, and 906 of title 10 (articles 94, 104, 
and 106 of the Uniform Code of Military Justice); 

Sec. 6106 CH. 61-PENAL AND FORFEITURE PROVISIONS 800 

(2) sections 175, 229, 792, 793, 794, 798, 831, 1091, 2332a, 
2332b, 2381, 2382, 2383, 2384, 2385, 2387, 2388, 2389, 2390, 
and chapter 105 of title 18; 
(3) sections 222, 223, 224, 225, and 226 of the Atomic Energy Act of 1954 
(42 U.S.C. 2272, 2273, 2274, 2275, and 2276); 
and 
(4) section 4 of the Internal Security Act of 1950 (50 U.S.C. 
783). 
(c) The Secretary of Defense or the Secretary of Homeland Security, as 
appropriate, shall notify the Secretary in each case in 
which an individual is convicted of an offense listed in paragraph 
(1) of subsection (b). The Attorney General shall notify the Secretary 
in each case in which an individual is indicted or convicted 
of an offense listed in paragraph (2), (3), or (4) of subsection (b). 
(Added Pub. L. 86-222, Sec. 3(a), Sept. 1, 1959, 73 Stat. 453, Sec. 3505; 
amended 
Pub. L. 92-128, Sec. 2(c), Sept. 25, 1971, 85 Stat. 348; Pub. L. 93-43, 
Sec. 8, June 
18, 1973, 87 Stat. 88; Pub. L. 97-295, Sec. 4(79), Oct. 12, 1982, 96 Stat. 
1311; renumbered Sec. 6105, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-54, Sec. 14(d)(9), June 13, 
1991, 105 Stat. 287; Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(xiv), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 103- 
446, title XII, Sec. 1201(e)(19), Nov. 2, 1994, 108 Stat. 4686; 
Pub. L. 107-296, title 
XVII, Sec. 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 108-183, 
title VII, Sec. 
705(a), Dec. 16, 2003, 117 Stat. 2672.) 

ï¿½ 6106. Misuse of benefits by fiduciaries 

(a) FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY FIDUCIARIES.-A fiduciary 
may not collect a fee from a beneficiary for 
any month with respect to which the Secretary or a court of competent 
jurisdiction has determined that the fiduciary misused all or 
part of the individualï¿½s benefit, and any amount so collected by the 
fiduciary as a fee for such month shall be treated as a misused part 
of the individualï¿½s benefit. 
(b) MISUSE OF BENEFITS DEFINED.-For purposes of this chapter, misuse 
of benefits by a fiduciary occurs in any case in which 
the fiduciary receives payment, under any of laws administered by 
the Secretary, for the use and benefit of a beneficiary and uses 
such payment, or any part thereof, for a use other than for the use 
and benefit of such beneficiary or that beneficiaryï¿½s dependents.
Retention by a fiduciary of an amount of a benefit payment as a 
fiduciary fee or commission, or as attorneyï¿½s fees (including 
expenses) 
and court costs, if authorized by the Secretary or a court of 
competent jurisdiction, shall be considered to be for the use or 
benefit 
of such beneficiary. 
(c) REGULATIONS.-The Secretary may prescribe by regulation 
the meaning of the term ï¿½ï¿½use and benefitï¿½ï¿½ for purposes of this 
section. 
(Added Pub. L. 108-454, title V, Sec. 503(a)(1), Dec. 10, 2004, 
118 Stat. 3619.) 

ï¿½ 6107. Reissuance of benefits 

(a) NEGLIGENT FAILURE BY SECRETARY.-(1) In any case in 
which the negligent failure of the Secretary to investigate or 
monitor a fiduciary results in misuse of benefits by the fiduciary, 
the Secretary shall pay to the beneficiary or the beneficiaryï¿½s 
successor 
fiduciary an amount equal to the amount of benefits that were so 
misused. 

801 CH. 61-PENAL AND FORFEITURE PROVISIONS Sec. 6108 

(2) There shall be considered to have been a negligent failure 
by the Secretary to investigate and monitor a fiduciary in the 
following cases: 
(A) A case in which the Secretary failed to review a fiduciaryï¿½s 
accounting within 60 days of the date on which that accounting is 
scheduled for review. 
(B) A case in which the Secretary was notified of allegations of 
misuse, but failed to act within 60 days of the date of 
such notification to terminate the fiduciary. 
(C) In any other case in which actual negligence is shown. 
(b) REISSUANCE OF MISUSED BENEFITS IN OTHER CASES.-(1) In 
any case in which a fiduciary described in paragraph (2) misuses 
all or part of an individualï¿½s benefit paid to such fiduciary, the 
Secretary shall pay to the beneficiary or the beneficiaryï¿½s successor 
fiduciary an amount equal to the amount of such benefit so misused. 
(2) Paragraph (1) applies to a fiduciary that- 
(A) is not an individual; or 
(B) is an individual who, for any month during a period 
when misuse occurs, serves 10 or more individuals who are 
beneficiaries under this title. 
(3) In any other case in which the Secretary obtains 
recoupment from a fiduciary who has misused benefits, the Secretary 
shall promptly remit payment of the recouped amounts to 
the beneficiary or the beneficiaryï¿½s successor fiduciary as the case 
may be. 
(c) LIMITATION ON TOTAL AMOUNT PAID.-The total of the 
amounts paid to a beneficiary (or a beneficiaryï¿½s successor fiduciary) 
under this section may not exceed the total benefit amount 
misused by the fiduciary with respect to that beneficiary. 
(d) RECOUPMENT OF AMOUNTS REISSUED.-In any case in 
which the Secretary reissues a benefit payment (in whole or in 
part) under subsection (a) or (b), the Secretary shall make a good 
faith effort to obtain recoupment from the fiduciary to whom the 
payment was originally made. 
(Added Pub. L. 108-454, title V, Sec. 503(a)(1), Dec. 10, 2004, 
118 Stat. 3619.) 

ï¿½ 6108. Authority for judicial orders of restitution 

(a) Any Federal court, when sentencing a defendant convicted 
of an offense arising from the misuse of benefits under this title, 
may order, in addition to or in lieu of any other penalty authorized 
by law, that the defendant make restitution to the Department. 
(b) Sections 3612, 3663, and 3664 of title 18 shall apply with 
respect to the issuance and enforcement of orders of restitution 
under subsection (a). In so applying those sections, the Department 
shall be considered the victim. 
(c) If the court does not order restitution, or orders only partial 
restitution, under subsection (a), the court shall state on the record 
the reasons therefor. 
(d) Amounts received in connection with misuse by a fiduciary 
of funds paid as benefits under laws administered by the Secretary 
shall be paid to the individual whose benefits were misused. If the 
Secretary has previously reissued the misused benefits, the 
amounts shall be treated in the same manner as overpayments re

Sec. 6108 CH. 61-PENAL AND FORFEITURE PROVISIONS 802 

couped by the Secretary and shall be deposited to the credit of the 
applicable revolving fund, trust fund, or appropriation.
(Added Pub. L. 108-454, title V, Sec. 504(b)(1), Dec. 10, 2004, 118 
Stat. 3621.)



CHAPTER 63 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


803 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART IV-GENERAL ADMINISTRATIVE PROVISIONSï¿½ 

CHAPTER 63-OUTREACH ACTIVITIES 
Sec. 
6301. 
6302. 
6303. 
Purpose; definitions. 
Biennial plan. 
Outreach services. 
6304. Veterans assistance offices. 
6305. 
6306. 
6307. 
6308. 
Outstationing of counseling and outreach personnel. 
Use of other agencies. 
Outreach for eligible dependents. 
Biennial report to Congress. 

ï¿½ 6301. Purpose; definitions 

(a) PURPOSE.-The Congress declares that- 
(1) the outreach services program authorized by this chapter is for 
the purpose of ensuring that all veterans (especially 
those who have been recently discharged or released from active 
military, naval, or air service, or from a reserve component, and 
those who are eligible for readjustment or other benefits and services 
under laws administered by the Department) 
are provided timely and appropriate assistance to aid and encourage 
them in applying for and obtaining such benefits and 
services in order that they may achieve a rapid social and economic 
readjustment to civilian life and obtain a higher standard of living 
for themselves and their dependents; and 
(2) the outreach services program authorized by this chapter is for 
the purpose of charging the Department with the affirmative duty of 
seeking out eligible veterans and eligible dependents and providing 
them with such services. 
(b) DEFINITIONS.-For the purposes of this chapter- 
(1) the term ï¿½ï¿½outreachï¿½ï¿½ means the act or process of reaching out 
in a systematic manner to proactively provide information, services, 
and benefits counseling to veterans, and to the 
spouses, children, and parents of veterans who may be eligible 
to receive benefits under the laws administered by the Secretary, to 
ensure that such individuals are fully informed 
about, and receive assistance in applying for, such benefits; 
(2) the term ï¿½ï¿½other governmental programsï¿½ï¿½ includes all 
programs under State or local laws as well as all programs 
under Federal law other than those authorized by this title; 
and 
(3) the term ï¿½ï¿½eligible dependentï¿½ï¿½ means a spouse, surviving spouse, 
child, or dependent parent of a person who 
served in the active military, naval, or air service. 
805 


Sec. 6302 CH. 63-OUTREACH ACTIVITIES 806 

(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 Stat. 
407; amended 
Pub. L. 110-181, div. A, title XVII, Sec. 1710, Jan. 28, 2008, 122 Stat. 
494.) 

ï¿½ 6302. Biennial plan 

(a) BIENNIAL PLAN REQUIRED.-The Secretary shall, during the 
first nine months of every odd-numbered year, prepare a biennial 
plan for the outreach activities of the Department for the two-fiscal-
year period beginning on October 1 of that year. 
(b) ELEMENTS.-Each biennial plan under subsection (a) shall 
include the following: 
(1) Plans for efforts to identify eligible veterans and eligible 
dependents who are not enrolled or registered with the Department 
for benefits or services under the programs administered by the 
Secretary. 
(2) Plans for informing eligible veterans and eligible dependents of 
modifications of the benefits and services under 
the programs administered by the Secretary, including eligibility for 
medical and nursing care and services. 
(c) COORDINATION IN DEVELOPMENT.-In developing the biennial plan under 
subsection (a), the Secretary shall consult with the 
following: 
(1) Directors or other appropriate officials of organizations 
approved by the Secretary under section 5902 of this title. 
(2) Directors or other appropriate officials of State and 
local education and training programs. 
(3) Representatives of nongovernmental organizations that 
carry out veterans outreach programs. 
(4) Representatives of State and local veterans employment organizations. 
(5) Other individuals and organizations that the Secretary 
considers appropriate. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 Stat. 
408.) 

ï¿½ 6303. Outreach services 

(a) REQUIREMENT TO PROVIDE SERVICES.-In carrying out the 
purposes of this chapter, the Secretary shall provide the outreach 
services specified in subsections (b) through (d). In areas where a 
significant number of eligible veterans and eligible dependents 
speak a language other than English as their principal language, 
such services shall, to the maximum feasible extent, be provided in 
the principal language of such persons. 
(b) INDIVIDUAL NOTICE TO NEW VETERANS.-The Secretary 
shall by letter advise each veteran at the time of the veteranï¿½s 
discharge or release from active military, naval, or air service (or as 
soon as possible after such discharge or release) of all benefits and 
services under laws administered by the Department for which the 
veteran may be eligible. In carrying out this subsection, the Secretary 
shall ensure, through the use of veteran-student services 
under section 3485 of this title, that contact, in person or by 
telephone, is made with those veterans who, on the basis of their 
military service records, do not have a high school education or 
equivalent at the time of discharge or release. 
(c) DISTRIBUTION OF INFORMATION.-(1) The Secretary- 

807 CH. 63-OUTREACH ACTIVITIES Sec. 6304 

(A) shall distribute full information to eligible veterans 
and eligible dependents regarding all benefits and services to 
which they may be entitled under laws administered by the 
Secretary; and 
(B) may, to the extent feasible, distribute information on 
other governmental programs (including manpower and training programs) 
which the Secretary determines would be beneficial to veterans. 
(2) Whenever a veteran or dependent first applies for any benefit under 
laws administered by the Secretary (including a request 
for burial or related benefits or an application for life insurance 
proceeds), the Secretary shall provide to the veteran or dependent 
information concerning benefits and health care services under programs 
administered by the Secretary. Such information shall be 
provided not later than three months after the date of such application. 
(d) PROVISION OF AID AND ASSISTANCE.-The Secretary shall 
provide, to the maximum extent possible, aid and assistance (including 
personal interviews) to members of the Armed Forces, veterans, and 
eligible dependents with respect to subsections (b) and 
(c) and in the preparation and presentation of claims under laws 
administered by the Department. 
(e) ASSIGNMENT OF EMPLOYEES.-In carrying out this section, 
the Secretary shall assign such employees as the Secretary considers 
appropriate to conduct outreach programs and provide outreach services for 
homeless veterans. Such outreach services may 
include site visits through which homeless veterans can be identified and 
provided assistance in obtaining benefits and services that 
may be available to them. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 Stat. 
408.) 

ï¿½ 6304. Veterans assistance offices 

(a) IN GENERAL.-The Secretary shall establish and maintain 
veterans assistance offices at such places throughout the United 
States and its territories and possessions, and in the Commonwealth of 
Puerto Rico, as the Secretary determines to be necessary 
to carry out the purposes of this chapter. The Secretary may maintain such 
offices on such military installations located elsewhere as 
the Secretary, after consultation with the Secretary of Defense and 
taking into account recommendations, if any, of the Secretary of 
Labor, determines to be necessary to carry out such purposes. 
(b) LOCATION OF OFFICES.-In establishing and maintaining 
such offices, the Secretary shall give due regard to- 
(1) the geographical distribution of veterans recently discharged or 
released from active military, naval, or air service; 
(2) the special needs of educationally disadvantaged veterans (including 
their need for accessibility of outreach services); and 
(3) the necessity of providing appropriate outreach services 
in less populated areas. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 Stat. 
409.) 


Sec. 6305 CH. 63-OUTREACH ACTIVITIES 808 

ï¿½ 6305. Outstationing of counseling and outreach personnel 

The Secretary may station employees of the Department at locations other 
than Department offices, including educational institutions, to provide- 

(1) counseling and other assistance regarding benefits 
under this title to veterans and other persons eligible for benefits 
under this title; and 
(2) outreach services under this chapter. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 
Stat. 409.) 
ï¿½ 6306. Use of other agencies 

(a) In carrying out this chapter, the Secretary shall arrange 
with the Secretary of Labor for the State employment service to 
match the particular qualifications of an eligible veteran or eligible 
dependent with an appropriate job or job training opportunity, including, 
where possible, arrangements for outstationing the State 
employment personnel who provide such assistance at appropriate 
facilities of the Department. 
(b) In carrying out this chapter, the Secretary shall, in consultation 
with the Secretary of Labor, actively seek to promote the 
development and establishment of employment opportunities, 
training opportunities, and other opportunities for veterans, with 
particular emphasis on the needs of veterans with service-connected 
disabilities and other eligible veterans, taking into account 
applicable rates of unemployment and the employment emphases 
set forth in chapter 42 of this title. 
(c) In carrying out this chapter, the Secretary shall cooperate 
with and use the services of any Federal department or agency or 
any State or local governmental agency or recognized national or 
other organization. 
(d) In carrying out this chapter, the Secretary shall, where 
appropriate, make referrals to any Federal department or agency or 
State or local governmental unit or recognized national or other 
organization. 
(e) In carrying out this chapter, the Secretary may furnish 
available space and office facilities for the use of authorized 
representatives of such governmental unit or other organization 
providing services. 
(f) In carrying out this chapter, the Secretary shall conduct and 
provide for studies, in consultation with appropriate Federal 
departments and agencies, to determine the most effective program 
design to carry out the purposes of this chapter. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120
Stat. 409.) 

ï¿½ 6307. Outreach for eligible dependents 

(a) NEEDS OF DEPENDENTS.-In carrying out this chapter, the 
Secretary shall ensure that the needs of eligible dependents are 
fully addressed. 
(b) INFORMATION AS TO AVAILABILITY OF OUTREACH SERVICES 
FOR DEPENDENTS.-The Secretary shall ensure that the availability 
of outreach services and assistance for eligible dependents under 
this chapter is made known through a variety of means, including 

809 CH. 63-OUTREACH ACTIVITIES Sec. 6308 

the Internet, announcements in veterans publications, and an
nouncements to the media.
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 
Stat. 410.)


ï¿½ 6308. Biennial report to Congress 

(a) REPORT REQUIRED.-The Secretary shall, not later than December 1 
of every even-numbered year (beginning in 2008), submit 
to Congress a report on the outreach activities carried out by the 
Department. 
(b) CONTENT.-Each report under this section shall include the 
following: 
(1) A description of the implementation during the preceding fiscal 
year of the current biennial plan under section 
6302 of this title. 
(2) Recommendations for the improvement or more effective 
administration of the outreach activities of the Department. 
(Added Pub. L. 109-233, title IV, Sec. 402(a), June 15, 2006, 120 
Stat. 410.) 


CHAPTER 71 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


811 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

PART V-BOARDS, ADMINISTRATIONS, AND SERVICES 

Chapter Sec. 

71. Board of Veteransï¿½ Appeals ............................... 7101


72. United States Court of Appeals for Veterans Claims 7251 

73. Veterans Health Administration-Organization and 
Functions ................................................... 7301 

74. Veterans Health Administration-Personnel .............. 7401


76. Health Professionals Educational Assistance Program .......... 7601 

77. Veterans Benefits Administration ............................. 7701


78. Veteransï¿½ Canteen Service ............................. 7801


813 


CHAPTER 71-BOARD OF VETERANSï¿½ APPEALS 

Sec. 
7101. Composition of Board of Veteransï¿½ Appeals.
7101A. Members of Board: appointment; pay; performance review. 
7102. Assignment of members of Board. 
7103. Reconsideration; correction of obvious errors. 
7104. Jurisdiction of the Board. 
7105. Filing of notice of disagreement and appeal. 
7105A. Simultaneously contested claims.
7106. Administrative appeals. 
7107. Appeals: dockets; hearings. 
7108. Rejection of applications. 
7109. Independent medical opinions. 
[7110. Repealed.] 
7111. Revision of decisions on grounds of clear and unmistakable 
error.
7112. Expedited treatment of remanded claims.


ï¿½ 7101. Composition of Board of Veteransï¿½ Appeals 

(a) There is in the Department a Board of Veteransï¿½ Appeals 
(hereinafter in this chapter referred to as the ï¿½ï¿½Boardï¿½ï¿½). The 
Board 
is under the administrative control and supervision of a chairman 
directly responsible to the Secretary. The Board shall consist of a 
Chairman, a Vice Chairman, and such number of members as may 
be found necessary in order to conduct hearings and dispose of 
appeals properly before the Board in a timely manner. The Board 
shall have such other professional, administrative, clerical, and 
stenographic personnel as are necessary in conducting hearings 
and considering and disposing of appeals properly before the Board. 
The Board shall have sufficient personnel under the preceding 
sentence to enable the Board to conduct hearings and consider and 
dispose of appeals properly before the Board in a timely manner. 
(b)(1) The Chairman shall be appointed by the President, by 
and with the advice and consent of the Senate, for a term of six 
years. The Chairman shall be subject to the same ethical and legal 
limitations and restrictions concerning involvement in political 
activities as apply to judges of the United States Court of Appeals for 
Veterans Claims. 

(2) The Chairman may be removed by the President for misconduct, 
inefficiency, neglect of duty, or engaging in the practice of 
law or for physical or mental disability which, in the opinion of the 
President, prevents the proper execution of the Chairmanï¿½s duties. 
The Chairman may not be removed from office by the President on 
any other grounds. Any such removal may only be made after notice 
and opportunity for hearing. 
(3) The Chairman may be appointed under this subsection to 
more than one term. If, upon the expiration of the term of office 
for which the Chairman was appointed, the position of Chairman 
would become vacant, the individual serving as Chairman may, 
with the approval of the Secretary, continue to serve as Chairman 
until either appointed to another term or a successor is appointed, 
815 


Sec. 7101 CH. 71-BOARD OF VETERANSï¿½ APPEALS 816 

but not beyond the end of the Congress during which the term of 
office expired. 

(4) The Secretary shall designate one member of the Board as 
Vice Chairman. The Vice Chairman shall perform such functions as 
the Chairman may specify. Such member shall serve as Vice Chairman 
at the pleasure of the Secretary. 
(c)(1)(A) The Chairman may from time to time designate one 
or more employees of the Department to serve as acting members 
of the Board. Except as provided in subparagraph (B), any such 
designation shall be for a period not to exceed 90 days, as 
determined by the Chairman. 

(B) An individual designated as an acting member of the Board 
may continue to serve as an acting member of the Board in the 
making of any determination on a proceeding for which the individual 
was designated as an acting member of the Board, notwithstanding the 
termination of the period of designation of the individual as an
acting member of the Board under subparagraph (A) 
or (C). 
(C) An individual may not serve as an acting member of the 
Board for more than 270 days during any one-year period. 
(D) At no time may the number of acting members exceed 20 
percent of the total of the number of Board members and acting 
Board members combined. 
(2) In each annual report to the Congress under section 529 of 
this title, the Secretary shall provide detailed descriptions of the 
activities undertaken and plans made in the fiscal year for which 
the report is made with respect to the authority provided by 
paragraph (1) of this subsection. In each such report, the Secretary 
shall indicate, in terms of full-time employee equivalents, the 
number of acting members of the Board designated under such paragraph 
(1) during the year for which the report is made. 
(d)(1) After the end of each fiscal year, the Chairman shall prepare a 
report on the activities of the Board during that fiscal year 
and the projected activities of the Board for the fiscal year during 
which the report is prepared and the next fiscal year. Such report 
shall be included in the documents providing detailed information 
on the budget for the Department that the Secretary submits to the 
Congress in conjunction with the Presidentï¿½s budget submission for 
any fiscal year pursuant to section 1105 of title 31. 

(2) Each such report shall include, with respect to the preceding 
fiscal year, information specifying- 
(A) the number of cases appealed to the Board during that 
year; 
(B) the number of cases pending before the Board at the 
beginning and at the end of that year; 
(C) the number of such cases which were filed during each 
of the 36 months preceding the current fiscal year; 
(D) the average length of time a case was before the Board 
between the time of the filing of an appeal and the disposition 
during the preceding fiscal year; 
(E) the number of members of the Board at the end of the 
year and the number of professional, administrative, clerical, 
stenographic, and other personnel employed by the Board at 
the end of the preceding fiscal year; and 

817 CH. 71-BOARD OF VETERANSï¿½ APPEALS Sec. 7101A 

(F) the number of employees of the Department designated 
under subsection (c)(1) to serve as acting members of the Board 
during that year and the number of cases in which each such 
member participated during that year. 
(3) The projections in each such report for the current fiscal 
year and for the next fiscal year shall include (for each such 
year)- 
(A) an estimate of the number of cases to be appealed to 
the Board; and 
(B) an evaluation of the ability of the Board (based on existing and 
projected personnel levels) to ensure timely disposition of such 
appeals as required by section 7101(a) of this title. 
(e) A performance incentive that is authorized by law for officers and 
employees of the Federal Government may be awarded to 
a member of the Board (including an acting member) by reason of 
that memberï¿½s service on the Board only if the Chairman of the 
Board determines that such member should be awarded that incentive. A 
determination by the Chairman for such purpose shall be 
made taking into consideration the quality of performance of the 
Board member. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1240, Sec. 4001; Pub. L. 
98-223, title II, Sec. 208(a)-(c), Mar. 2, 1984, 98 Stat. 43, 44; 
Pub. L. 100-687, div. A, title II, Sec. 201(a), 202(b), 208, 209, 
Nov. 18, 1988, 102 Stat. 4109, 4110, 4112; renumbered Sec. 7101 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 
1991, 105 Stat. 238, 239; Pub. L. 102-54, Sec. 14(e)(2), June 13, 
1991, 105 Stat. 287; Pub. L. 102-83, Sec. 2(c)(3), 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 402, 404, 405; Pub. L. 
103-271, Sec. 2-5, July 1, 1994, 108 Stat. 740, 741; Pub. L. 103-446, 
title II, Sec. 201(d), 203, Nov. 2, 1994, 108 Stat. 4657; Pub. L. 
105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 3341; 
Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 
115 Stat. 35.) 

ï¿½ 7101A. Members of Board: appointment; pay; performance 
review 

(a)(1) The members of the Board of Veteransï¿½ Appeals other 
than the Chairman (and including the Vice Chairman) shall be 
appointed by the Secretary, with the approval of the President, based 
upon recommendations of the Chairman. 

(2) Each member of the Board shall be a member in good 
standing of the bar of a State. 
(b) Members of the Board (other than the Chairman and any 
member of the Board who is a member of the Senior Executive 
Service) shall, in accordance with regulations prescribed by the 
Secretary, be paid basic pay at rates equivalent to the rates payable 
under section 5372 of title 5. 
(c)(1)(A) The Chairman shall establish a panel to review the 
performance of members of the Board. The panel shall be comprised of 
the Chairman and two other members of the Board (other 
than the Vice Chairman). The Chairman shall periodically rotate 
membership on the panel so as to ensure that each member of the 
Board (other than the Vice Chairman) serves as a member of the 
panel for and within a reasonable period. 

(B) Not less than one year after the job performance standards 
under subsection (f) are initially established, and not less often 
than once every three years thereafter, the performance review 
panel shall determine, with respect to each member of the Board 

Sec. 7101A CH. 71-BOARD OF VETERANSï¿½ APPEALS 818 

(other than the Chairman or a member who is a member of the 
Senior Executive Service), whether that memberï¿½s job performance 
as a member of the Board meets the performance standards for a 
member of the Board established under subsection (f). Each such 
determination shall be in writing. 

(2) If the determination of the performance review panel in any 
case is that the memberï¿½s job performance as a member of the 
Board meets the performance standards for a member of the Board 
established under subsection (f), the Chairman shall recertify the 
memberï¿½s appointment as a member of the Board. 
(3) If the determination of the performance review panel in any 
case is that the memberï¿½s job performance does not meet the performance 
standards for a member of the Board established under 
subsection (f), the Chairman shall, based upon the individual 
circumstances, either- 
(A) grant the member a conditional recertification; or 
(B) recommend to the Secretary that the member be non-
certified. 
(4) In the case of a member of the Board who is granted a conditional 
recertification under paragraph (3)(A) or (5)(A), the performance review 
panel shall review the memberï¿½s job performance 
record and make a further determination under paragraph (1) concerning 
that member not later than one year after the date of the 
conditional recertification. If the determination of the performance 
review panel at that time is that the memberï¿½s job performance as 
a member of the Board still does not meet the performance standards for 
a member of the Board established under subsection (f), 
the Chairman shall recommend to the Secretary that the member 
be noncertified. 
(5) In a case in which the Chairman recommends to the Secretary under 
paragraph (3) or (4) that a member be noncertified, 
the Secretary, after considering the recommendation of the Chairman, 
may either- 
(A) grant the member a conditional recertification; or 
(B) determine that the member should be noncertified. 
(d)(1) If the Secretary, based upon the recommendation of the 
Chairman, determines that a member of the Board should be non-
certified, that memberï¿½s appointment as a member of the Board 
shall be terminated and that member shall be removed from the 
Board. 

(2)(A) Upon removal from the Board under paragraph (1) of a 
member of the Board who before appointment to the Board served 
as an attorney in the civil service, the Secretary shall appoint that 
member to an attorney position at the Board, if the removed member so 
requests. If the removed member served in an attorney position at the 
Board immediately before appointment to the Board, appointment to an 
attorney position under this paragraph shall be in 
the grade and step held by the removed member immediately before such 
appointment to the Board. 

(B) The Secretary is not required to make an appointment to 
an attorney position under this paragraph if the Secretary determines 
that the member of the Board removed under paragraph (1) 
is not qualified for the position. 

819 CH. 71-BOARD OF VETERANSï¿½ APPEALS Sec. 7103 

(e)(1) A member of the Board (other than the Chairman or a 
member of the Senior Executive Service) may be removed as a 
member of the Board by reason of job performance only as provided 
in subsections (c) and (d). Such a member may be removed by the 
Secretary, upon the recommendation of the Chairman, for any 
other reason as determined by the Secretary. 

(2) In the case of a removal of a member under this section for 
a reason other than job performance that would be covered by section 
7521 of title 5 in the case of an administrative law judge, the 
removal of the member of the Board shall be carried out subject to 
the same requirements as apply to removal of an administrative 
law judge under that section. Section 554(a)(2) of title 5 shall not 
apply to a removal action under this subsection. In such a removal 
action, a member shall have the rights set out in section 7513(b) 
of that title. 
(f) The Chairman, subject to the approval of the Secretary, 
shall establish standards for the performance of the job of a member of 
the Board (other than the Chairman or a member of the Senior Executive 
Service). Those standards shall establish objective 
and fair criteria for evaluation of the job performance of a member 
of the Board. 
(g) The Secretary shall prescribe procedures for the administration of 
this section, including deadlines and time schedules for 
different actions under this section. 
(Added Pub. L. 103-446, title II, Sec. 201(a)(1), Nov. 2, 1994, 108 
Stat. 4655; amended Pub. L. 105-368, title X, Sec. 1002, Nov. 11, 1998, 
112 Stat. 3363.) 

ï¿½ 7102. Assignment of members of Board 

(a) A proceeding instituted before the Board may be assigned 
to an individual member of the Board or to a panel of not less than 
three members of the Board. A member or panel assigned a proceeding 
shall make a determination thereon, including any motion 
filed in connection therewith. The member or panel, as the case 
may be, shall make a report under section 7104(d) of this title on 
any such determination, which report shall constitute the final 
disposition of the proceeding by the member or panel. 
(b) A proceeding may not be assigned to the Chairman as an 
individual member. The Chairman may participate in a proceeding 
assigned to a panel or in a reconsideration assigned to a panel of 
members. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1241, Sec. 4002; Pub. L. 
98-223, title II, 
Sec. 208(c), (d), Mar. 2, 1984, 98 Stat. 44; renumbered Sec. 7102 and 
amended Pub. 

L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 
238, 239; Pub. L. 
102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404; Pub. L. 
103-271, Sec. 6(a), July 
1, 1994, 108 Stat. 741.) 
ï¿½ 7103. Reconsideration; correction of obvious errors 

(a) The decision of the Board determining a matter under section 
7102 of this title is final unless the Chairman orders reconsideration 
of the decision in accordance with subsection (b). Such an 
order may be made on the Chairmanï¿½s initiative or upon motion of 
the claimant. 
(b)(1) Upon the order of the Chairman for reconsideration of 
the decision in a case, the case shall be referred- 


Sec. 7104 CH. 71-BOARD OF VETERANSï¿½ APPEALS 820 

(A) in the case of a matter originally heard by a single 
member of the Board, to a panel of not less than three members of the 
Board; or 
(B) in the case of a matter originally heard by a panel of 
members of the Board, to an enlarged panel of the Board. 
(2) A panel referred to in paragraph (1) may not include the 
member, or any member of the panel, that made the decision subject to 
reconsideration. 
(3) A panel reconsidering a case under this subsection shall 
render its decision after reviewing the entire record before the 
Board. The decision of the panel shall be made by a majority vote 
of the members of the panel. The decision of the panel shall constitute 
the final decision of the Board. 
(c) The Board on its own motion may correct an obvious error 
in the record, without regard to whether there has been a motion 
or order for reconsideration. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1241, Sec. 4003; Pub. L. 
100-687, div. A, 
title II, Sec. 202(a), Nov. 18, 1988, 102 Stat. 4110; renumbered Sec. 
7103, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
103-271, Sec. 
6(a), July 1, 1994, 108 Stat. 741.) 

ï¿½ 7104. Jurisdiction of the Board 

(a) All questions in a matter which under section 511(a) of this 
title is subject to decision by the Secretary shall be subject to one 
review on appeal to the Secretary. Final decisions on such appeals 
shall be made by the Board. Decisions of the Board shall be based 
on the entire record in the proceeding and upon consideration of all 
evidence and material of record and applicable provisions of law 
and regulation. 
(b) Except as provided in section 5108 of this title, when a 
claim is disallowed by the Board, the claim may not thereafter be 
reopened and allowed and a claim based upon the same factual 
basis may not be considered. 
(c) The Board shall be bound in its decisions by the regulations 
of the Department, instructions of the Secretary, and the precedent 
opinions of the chief legal officer of the Department. 
(d) Each decision of the Board shall include- 
(1) a written statement of the Boardï¿½s findings and conclusions, and 
the reasons or bases for those findings and conclusions, on all material 
issues of fact and law presented on the 
record; and 
(2) an order granting appropriate relief or denying relief. 
(e)(1) After reaching a decision on a case, the Board shall 
promptly mail a copy of its written decision to the claimant at the 
last known address of the claimant. 

(2) If the claimant has an authorized representative, the Board 
shall- 
(A) mail a copy of its written decision to the authorized 
representative at the last known address of the authorized 
representative; or 
(B) send a copy of its written decision to the authorized 
representative by any means reasonably likely to provide the 
authorized representative with a copy of the decision within 

821 CH. 71-BOARD OF VETERANSï¿½ APPEALS Sec. 7105 

the same time a copy would be expected to reach the author

ized representative if sent by first-class mail. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1241, Sec. 4004; Pub. L. 
87-97, Sec. 1, July 
20, 1961, 75 Stat. 215; Pub. L. 100-687, div. A, title I, Sec. 101(b), 
title II, Sec. 
203(a), 204, 205, Nov. 18, 1988, 102 Stat. 4106, 4110, 4111; renumbered 
Sec. 7104 
and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 
1991, 105 Stat. 

238, 239; Pub. L. 102-54, Sec. 14(g)(2), June 13, 1991, 105 Stat. 288; 
Pub. L. 102- 
83, Sec. 4(a)(3), (4), (b)(1), (2)(E), (c), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 103- 
271, Sec. 7(b)(1), 8, July 1, 1994, 108 Stat. 743; Pub. L. 104-275, 
title V, Sec. 509, 
Oct. 9, 1996, 110 Stat. 3344.) 

ï¿½ 7105. Filing of notice of disagreement and appeal 

(a) Appellate review will be initiated by a notice of disagreement and 
completed by a substantive appeal after a statement of 
the case is furnished as prescribed in this section. Each appellant 
will be accorded hearing and representation rights pursuant to the 
provisions of this chapter and regulations of the Secretary. 
(b)(1) Except in the case of simultaneously contested claims, 
notice of disagreement shall be filed within one year from the date 
of mailing of notice of the result of initial review or determination. 
Such notice, and appeals, must be in writing and be filed with the 
activity which entered the determination with which disagreement 
is expressed (hereinafter referred to as the ï¿½ï¿½agency of original 
jurisdictionï¿½ï¿½). A notice of disagreement postmarked before the
expiration of the one-year period will be accepted as timely filed. 

(2) Notices of disagreement, and appeals, must be in writing 
and may be filed by the claimant, the claimantï¿½s legal guardian, or 
such accredited representative, attorney, or authorized agent as 
may be selected by the claimant or legal guardian. Not more than 
one recognized organization, attorney, or agent will be recognized 
at any one time in the prosecution of a claim. 
(c) If no notice of disagreement is filed in accordance with this 
chapter within the prescribed period, the action or determination 
shall become final and the claim will not thereafter be reopened or 
allowed, except as may otherwise be provided by regulations not 
inconsistent with this title. 
(d)(1) Where the claimant, or the claimantï¿½s representative, 
within the time specified in this chapter, files a notice of disagreement 
with the decision of the agency of original jurisdiction, such 
agency will take such development or review action as it deems 
proper under the provisions of regulations not inconsistent with 
this title. If such action does not resolve the disagreement either 
by granting the benefit sought or through withdrawal of the notice 
of disagreement, such agency shall prepare a statement of the case. 
A statement of the case shall include the following: 

(A) A summary of the evidence in the case pertinent to the 
issue or issues with which disagreement has been expressed. 
(B) A citation to pertinent laws and regulations and a discussion of how 
such laws and regulations affect the agencyï¿½s 
decision. 
(C) The decision on each issue and a summary of the reasons for such
decision. 
(2) A statement of the case, as required by this subsection, will 
not disclose matters that would be contrary to section 5701 of this 
title or otherwise contrary to the public interest. Such matters may 

Sec. 7105A CH. 71-BOARD OF VETERANSï¿½ APPEALS 822 

be disclosed to a designated representative unless the relationship 
between the claimant and the representative is such that disclosure to 
the representative would be as harmful as if made to the 
claimant. 

(3) Copies of the ï¿½ï¿½statement of the caseï¿½ï¿½ prescribed in paragraph (1) 
of this subsection will be submitted to the claimant and 
to the claimantï¿½s representative, if there is one. The claimant will 
be afforded a period of sixty days from the date the statement of 
the case is mailed to file the formal appeal. This may be extended 
for a reasonable period on request for good cause shown. The appeal 
should set out specific allegations of error of fact or law, such 
allegations related to specific items in the statement of the case. 
The benefits sought on appeal must be clearly identified. The agency 
of original jurisdiction may close the case for failure to respond 
after receipt of the statement of the case, but questions as to 
timeliness or adequacy of response shall be determined by the Board of 
Veteransï¿½ Appeals. 
(4) The claimant in any case may not be presumed to agree 
with any statement of fact contained in the statement of the case 
to which the claimant does not specifically express agreement. 
(5) The Board of Veteransï¿½ Appeals may dismiss any appeal 
which fails to allege specific error of fact or law in the 
determination being appealed. 
(Added Pub. L. 87-666, Sec. 1, Sept. 19, 1962, 76 Stat. 553, Sec. 
4005; amended 
Pub. L. 99-576, title VII, Sec. 701(85), Oct. 28, 1986, 100 Stat. 
3298; Pub. L. 100- 
687, div. A, title II, Sec. 203(b), 206, Nov. 18, 1988, 102 Stat. 
4111; renumbered Sec. 
7105 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 
Stat. 238, 239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405; 
Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 Stat. 35.) 

ï¿½ 7105A. Simultaneously contested claims 

(a) In simultaneously contested claims where one is allowed 
and one rejected, the time allowed for the filing of a notice of 
disagreement shall be sixty days from the date notice of the adverse 
action is mailed. In such cases the agency of original jurisdiction 
shall promptly notify all parties in interest at the last known 
address of the action taken, expressly inviting attention to the fact 
that notice of disagreement will not be entertained unless filed 
within the sixty-day period prescribed by this subsection. 
(b) Upon the filing of a notice of disagreement, all parties in 
interest will be furnished with a statement of the case in the same 
manner as is prescribed in section 7105. The party in interest who 
filed a notice of disagreement will be allowed thirty days from the 
date of mailing of such statement of the case in which to file a formal 
appeal. Extension of time may be granted for good cause 
shown but with consideration to the interests of the other parties 
involved. The substance of the appeal will be communicated to the 
other party or parties in interest and a period of thirty days will 
be allowed for filing a brief or argument in answer thereto. Such 
notice shall be forwarded to the last known address of record of the 
parties concerned, and such action shall constitute sufficient evidence 
of notice. 
(Added Pub. L. 87-666, Sec. 1, Sept. 19, 1962, 76 Stat. 554, Sec. 4005A; 
renumbered 
Sec. 7105A and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 
105 Stat. 238, 239.) 


823 CH. 71-BOARD OF VETERANSï¿½ APPEALS Sec. 7107 

ï¿½ 7106. Administrative appeals 

Application for review on appeal may be made within the one-
year period prescribed in section 7105 of this title by such officials 
of the Department as may be designated by the Secretary. An application 
entered under this paragraph shall not operate to deprive 
the claimant of the right of review on appeal as provided in this 
chapter. 

(Added Pub. L. 87-666, Sec. 1, Sept. 19, 1962, 76 Stat. 554, Sec. 4006; 
renumbered 
Sec. 7106 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 
105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E),
Aug. 6, 1991, 105 
Stat. 404, 405.) 

ï¿½ 7107. Appeals: dockets; hearings 

(a)(1) Except as provided in paragraphs (2) and (3) and in subsection (f), 
each case received pursuant to application for review on 
appeal shall be considered and decided in regular order according 
to its place upon the docket. 

(2) A case referred to in paragraph (1) may, for cause shown, 
be advanced on motion for earlier consideration and determination. 
Any such motion shall set forth succinctly the grounds upon which 
the motion is based. Such a motion may be granted only- 
(A) if the case involves interpretation of law of general application 
affecting other claims; 
(B) if the appellant is seriously ill or is under severe financial hardship; 
or 
(C) for other sufficient cause shown. 
(3) A case referred to in paragraph (1) may be postponed for 
later consideration and determination if such postponement is necessary to 
afford the appellant a hearing. 
(b) The Board shall decide any appeal only after affording the 
appellant an opportunity for a hearing. 
(c) A hearing docket shall be maintained and formal recorded 
hearings shall be held by such member or members of the Board 
as the Chairman may designate. Such member or members designated by the 
Chairman to conduct the hearing shall, except in 
the case of a reconsideration of a decision under section 7103 of 
this title, participate in making the final determination of the 
claim. 
(d)(1) An appellant may request that a hearing before the 
Board be held at its principal location or at a facility of the 
Department located within the area served by a regional office of the 
Department. 

(2) A hearing to be held within an area served by a regional 
office of the Department shall (except as provided in paragraph (3)) 
be scheduled to be held in accordance with the place of the case on 
the docket under subsection (a) relative to other cases on the docket 
for which hearings are scheduled to be held within that area. 
(3) A hearing to be held within an area served by a regional 
office of the Department may, for cause shown, be advanced on motion 
for an earlier hearing. Any such motion shall set forth succinctly the 
grounds upon which the motion is based. Such a motion 
may be granted only- 
(A) if the case involves interpretation of law of general application 
affecting other claims; 

Sec. 7108 CH. 71-BOARD OF VETERANSï¿½ APPEALS 824 

(B) if the appellant is seriously ill or is under severe financial 
hardship; or 
(C) for other sufficient cause shown. 
(e)(1) At the request of the Chairman, the Secretary may provide 
suitable facilities and equipment to the Board or other components of 
the Department to enable an appellant located at a facility 
within the area served by a regional office to participate, through 
voice transmission or through picture and voice transmission, by 
electronic or other means, in a hearing with a Board member or 
members sitting at the Boardï¿½s principal location. 

(2) When such facilities and equipment are available, the 
Chairman may afford the appellant an opportunity to participate 
in a hearing before the Board through the use of such facilities and 
equipment in lieu of a hearing held by personally appearing before 
a Board member or panel as provided in subsection (d). Any such 
hearing shall be conducted in the same manner as, and shall be 
considered the equivalent of, a personal hearing. If the appellant 
declines to participate in a hearing through the use of such facilities 
and equipment, the opportunity of the appellant to a hearing 
as provided in such subsection (d) shall not be affected. 
(f) Nothing in this section shall preclude the screening of cases 
for purposes of- 
(1) determining the adequacy of the record for decisional 
purposes; or 
(2) the development, or attempted development, of a record 
found to be inadequate for decisional purposes. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1242, Sec. 4006; renumbered 
Sec. 4007, Pub. 

L. 87-666, Sec. 1, Sept. 19, 1962, 76 Stat. 553; renumbered Sec. 7107, 
Pub. L. 102- 
40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
103-271, Sec. 7(a)(1), 
July 1, 1994, 108 Stat. 742; Pub. L. 103-446, title III, Sec. 303, 
Nov. 2, 1994, 108 
Stat. 4658; Pub. L. 105-368, title X, Sec. 1003, Nov. 11, 1998, 112 
Stat. 3363.) 
ï¿½ 7108. Rejection of applications 

An application for review on appeal shall not be entertained 
unless it is in conformity with this chapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1243, Sec. 4008; renumbered 
Sec. 7108, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238.) 
ï¿½ 7109. Independent medical opinions 

(a) When, in the judgment of the Board, expert medical opinion, in 
addition to that available within the Department, is warranted by 
the medical complexity or controversy involved in an appeal case, the 
Board may secure an advisory medical opinion from 
one or more independent medical experts who are not employees of 
the Department. 
(b) The Secretary shall make necessary arrangements with recognized 
medical schools, universities, or clinics to furnish such advisory 
medical opinions at the request of the Chairman of the 
Board. Any such arrangement shall provide that the actual selection 
of the expert or experts to give the advisory opinion in an individual 
case shall be made by an appropriate official of such institution. 
(c) The Board shall furnish a claimant with notice that an advisory 
medical opinion has been requested under this section with 

825 CH. 71-BOARD OF VETERANSï¿½ APPEALS Sec. 7112 

respect to the claimantï¿½s case and shall furnish the claimant with 
a copy of such opinion when it is received by the Board. 

(Added Pub. L. 87-671, Sec. 1, Sept. 19, 1962, 76 Stat. 557, Sec.
4009; amended 
Pub. L. 100-687, div. A, title I, Sec. 103(b), Nov. 18, 1988, 102 Stat. 
4107; renumbered Sec. 7109, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405.) 

ï¿½ï¿½ 7110. Repealed. Pub. L. 103-271, Sec. 7(b)(2), July 1, 1994, 
108 Stat. 743ï¿½ 

ï¿½ 7111. Revision of decisions on grounds of clear and unmistakable 
error 

(a) A decision by the Board is subject to revision on the 
grounds of clear and unmistakable error. If evidence establishes 
the error, the prior decision shall be reversed or revised. 
(b) For the purposes of authorizing benefits, a rating or other 
adjudicative decision of the Board that constitutes a reversal or 
revision of a prior decision of the Board on the grounds of clear and 
unmistakable error has the same effect as if the decision had been 
made on the date of the prior decision. 
(c) Review to determine whether clear and unmistakable error 
exists in a case may be instituted by the Board on the Boardï¿½s own 
motion or upon request of the claimant. 
(d) A request for revision of a decision of the Board based on 
clear and unmistakable error may be made at any time after that 
decision is made. 
(e) Such a request shall be submitted directly to the Board and 
shall be decided by the Board on the merits, without referral to any 
adjudicative or hearing official acting on behalf of the Secretary. 
(f) A claim filed with the Secretary that requests reversal or 
revision of a previous Board decision due to clear and unmistakable 
error shall be considered to be a request to the Board under this 
section, and the Secretary shall promptly transmit any such request 
to the Board for its consideration under this section. 
(Added Pub. L. 105-111, Sec. 1(b)(1), Nov. 21, 1997, 111 Stat. 2271.) 

ï¿½ 7112. Expedited treatment of remanded claims 

The Secretary shall take such actions as may be necessary to 
provide for the expeditious treatment by the Board of any claim 
that is remanded to the Secretary by the Court of Appeals for Veterans 
Claims. 

(Added Pub. L. 108-183, title VII, Sec. 707(b)(1), Dec. 16, 2003, 117 
Stat. 2673.) 


CHAPTER 72 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


827 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 

CHAPTER 72-UNITED STATES COURT OF APPEALS FOR 
VETERANS CLAIMS 

SUBCHAPTER I-ORGANIZATION AND JURISDICTION 

Sec. 
7251. Status. 
7252. Jurisdiction; finality of decisions. 
7253. Composition. 
7254. Organization. 
7255. Offices. 
7256. Times and places of sessions. 
7257. Recall of retired judges. 


SUBCHAPTER II-PROCEDURE 

7261. Scope of review. 
7262. Fee for filing appeals. 
7263. Representation of parties; fee agreements. 
7264. Rules of practice and procedure. 
7265. Contempt authority; assistance to the Court. 
7266. Notice of appeal. 
7267. Decisions. 
7268. Availability of proceedings. 
7269. Publication of decisions. 


SUBCHAPTER III-MISCELLANEOUS PROVISIONS 

7281. Employees. 
7282. Budget and expenditures. 
7283. Disposition of fees. 
7284. Fee for transcript of record. 
7285. Practice and registration fees. 
7286. Judicial Conference of the Court. 
7287. Administration. 
7288. Annual report. 


SUBCHAPTER IV-DECISIONS AND REVIEW 

7291. Date when Court decision becomes final. 
7292. Review by United States Court of Appeals for the Federal Circuit. 


SUBCHAPTER V-RETIREMENT AND SURVIVORS ANNUITIES 

7296. Retirement of judges. 
7297. Survivor annuities. 
7298. Retirement Fund. 
7299. Limitation on activities of retired judges.


SUBCHAPTER I-ORGANIZATION AND JURISDICTION 

ï¿½ 7251. Status 

There is hereby established, under Article I of the Constitution 
of the United States, a court of record to be known as the United 
States Court of Appeals for Veterans Claims. 

829 


Sec. 7252 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 830 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4113, 
Sec. 4051; renumbered Sec. 7251, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 105-368, title V, Sec. 511(b), Nov. 11, 
1998, 112 Stat. 
3341.) 

ï¿½ 7252. Jurisdiction; finality of decisions 

(a) The Court of Appeals for Veterans Claims shall have exclusive 
jurisdiction to review decisions of the Board of Veteransï¿½ Appeals. 
The Secretary may not seek review of any such decision. The 
Court shall have power to affirm, modify, or reverse a decision of 
the Board or to remand the matter, as appropriate. 
(b) Review in the Court shall be on the record of proceedings 
before the Secretary and the Board. The extent of the review shall 
be limited to the scope provided in section 7261 of this title. The 
Court may not review the schedule of ratings for disabilities adopted 
under section 1155 of this title or any action of the Secretary 
in adopting or revising that schedule. 
(c) Decisions by the Court are subject to review as provided in 
section 7292 of this title. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4113, 
Sec. 4052; renumbered Sec. 7252 and amended Pub. L. 102-40, title IV, 
Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, 
Sec. 14(e)(3), June 
13, 1991, 105 Stat. 287; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(c)(1), Aug. 6, 1991, 
105 Stat. 404-406; Pub. L. 105-368, title V, Sec. 512(a)(1), 
Nov. 11, 1998, 112 Stat. 
3341.) 

ï¿½ 7253. Composition 

(a) COMPOSITION.-The Court of Appeals for Veterans Claims 
is composed of at least three and not more than seven judges, one 
of whom shall serve as chief judge in accordance with subsection 
(d). 
(b) APPOINTMENT.-The judges of the Court shall be appointed 
by the President, by and with the advice and consent of the Senate, 
solely on the grounds of fitness to perform the duties of the office. 
A person may not be appointed to the Court who is not a member 
in good standing of the bar of a Federal court or of the highest 
court of a State. Not more than the number equal to the next whole 
number greater than one-half of the number of judges of the Court 
may be members of the same political party. 
(c) TERM OF OFFICE.-The term of office of the judges of the 
Court of Appeals for Veterans Claims shall be 15 years. A judge 
who is nominated by the President for appointment to an additional 
term on the Court without a break in service and whose 
term of office expires while that nomination is pending before the 
Senate may continue in office for up to 1 year while that nomination 
is pending. 
(d) CHIEF JUDGE.-(1) The chief judge of the Court is the head 
of the Court. The chief judge of the Court shall be the judge of the 
Court in regular active service who is senior in commission among 
the judges of the Court who- 
(A) have served for one or more years as judges of the 
Court; and 
(B) have not previously served as chief judge. 
(2) In any case in which there is no judge of the Court in regular 
active service who has served as a judge of the Court for at 

831 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7253 

least one year, the judge of the court in regular active service who 
is senior in commission and has not served previously as chief 
judge shall act as the chief judge. 

(3) Except as provided in paragraph (4), a judge of the Court 
shall serve as the chief judge under paragraph (1) for a term of five 
years or until the judge becomes age 70, whichever occurs first. If 
no other judge is eligible under paragraph (1) to serve as chief 
judge upon the expiration of that term, that judge shall continue 
to serve as chief judge until another judge becomes eligible under 
that paragraph to serve as chief judge. 
(4)(A) The term of a chief judge shall be terminated before the 
end of the term prescribed by paragraph (3) if- 

(i) the chief judge leaves regular active service as a judge 
of the Court; 
(ii) the chief judge notifies the other judges of the Court 
in writing that such judge desires to be relieved of the duties 
of chief judge. 

(B) The effective date of a termination of the term under subparagraph 
(A) shall be the date on which the chief judge leaves 
regular active service or the date of the notification under 
subparagraph (A)(ii), as the case may be. 
(5) If a chief judge is temporarily unable to perform the duties 
of chief judge, those duties shall be performed by the judge of the 
Court in active service who is present, able and qualified to act, 
and is next in precedence. 
(6) Judges who have the same seniority in commission shall be 
eligible for service as chief judge in accordance with their relative 
precedence. 
(e) SALARY.-Each judge of the Court shall receive a salary at 
the same rate as is received by judges of the United States district 
courts. 
(f) REMOVAL.-(1) A judge of the Court may be removed from 
office by the President on grounds of misconduct, neglect of duty, 
or engaging in the practice of law. A judge of the Court may not 
be removed from office by the President on any other ground. 
(2) Before a judge may be removed from office under this subsection, 
the judge shall be provided with a full specification of the 
reasons for the removal and an opportunity to be heard. 
(g) RULES.-(1) The Court shall prescribe rules, consistent with 
the provisions of chapter 16 of title 28, establishing procedures for 
the filing of complaints with respect to the conduct of any judge of 
the Court and for the investigation and resolution of such complaints. 
In investigating and taking action with respect to any such 
complaint, the Court shall have the powers granted to a judicial 
council under such chapter. 
(2) The provisions of sections 354(b) through 360 of title 28, regarding 
referral or certification to, and petition for review in, the 
Judicial Conference of the United States and action thereon, shall 
apply to the exercise by the Court of the powers of a judicial council 
under paragraph (1) of this subsection. The grounds for removal 
from office specified in subsection (f)(1) shall provide a basis for a 
determination pursuant to section 354(b) or 355 of title 28, and 
certification and transmittal by the Conference shall be made to the 
President for consideration under subsection (f). 

Sec. 7253 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 832 

(3)(A) In conducting hearings pursuant to paragraph (1), the 
Court may exercise the authority provided under section 1821 of 
title 28 to pay the fees and allowances described in that section. 

(B) The Court shall have the power provided under section 361 
of title 28 to award reimbursement for the reasonable expenses described 
in that section. Reimbursements under this subparagraph 
shall be made from funds appropriated to the Court. 
(h) TEMPORARY EXPANSION OF COURT.-(1) During the period 
from January 1, 2002, through August 15, 2005, the authorized 
number of judges of the Court specified in subsection (a) is increased 
by two. 
(2)(A) Of the two additional judges authorized by this subsection- 

(i) only one may be appointed pursuant to a nomination 
made in 2002; and 
(ii) only one may be appointed pursuant to a nomination 
made in 2003. 
(B) If a judge is not appointed under this subsection pursuant 
to a nomination made in 2002, a judge may be appointed under 
this subsection pursuant to a nomination made in 2004. If a judge 
is not appointed under this subsection pursuant to a nomination 
made in 2003, a judge may be appointed under this subsection pursuant 
to a nomination made in 2004. In either case, such an appointment may be 
made only pursuant to a nomination made before October 1, 2004. 
(3) The term of office and the eligibility for retirement of a 
judge appointed under this subsection, other than a judge described 
in paragraph (4), are governed by the provisions of section 1012 of 
the Court of Appeals for Veterans Claims Amendments of 1999 
(title X of Public Law 106-117; 113 Stat. 1590; 38 U.S.C. 7296 
note) if the judge is one of the first two judges appointed to the 
Court after November 30, 1999. 
(4) A judge of the Court as of December 27, 2001, who was appointed to 
the Court before January 1, 1991, may accept appointment as a judge of 
the Court under this subsection notwithstanding 
that the term of office of the judge on the Court has not yet expired 
under this section. The term of office of an incumbent judge who 
receives an appointment as described in the preceding sentence 
shall be 15 years, which includes any period remaining in the unexpired 
term of the judge. Any service following an appointment 
under this subsection shall be treated as though served as part of 
the original term of office of that judge on the Court. 
(5) Notwithstanding paragraph (1), an appointment may not be 
made to the Court if the appointment would result in there being 
more than seven judges on the Court who were appointed after 
January 1, 1997. For the purposes of this paragraph, a judge serving in 
recall status under section 7257 of this title shall be disregarded in 
counting the number of judges appointed to the Court 
after such date. 
(i) ADDITIONAL TEMPORARY EXPANSION OF COURT.-(1) Subject 
to paragraph (2), effective as of December 31, 2009, the authorized 
number of judges of the Court specified in subsection (a) is increased 
by two. 

833 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7255 

(2) Effective as of January 1, 2013, an appointment may not 
be made to the Court if the appointment would result in there 
being more judges of the Court than the authorized number of 
judges of the Court specified in subsection (a). 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4114, Sec. 4053; amended Pub. L. 101-94, title I, Sec. 
102(c), Aug. 16, 1989, 103 Stat. 626; renumbered Sec. 7253, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-82, Sec. 3, Aug. 6, 1991, 105 Stat. 375; Pub. L. 102-585, title 
VIII, Sec. 801, Nov. 4, 1992, 106 Stat. 4980; Pub. L. 105-368, title 
V, Secs. 501, 512(a)(1), Nov. 11, 1998, 112 Stat. 3340, 3341; Pub. L. 
106-117, title X, Secs. 1031, 1032(a), 1033, Nov. 30, 1999, 113 Stat. 
1594, 1595; Pub. L. 107-103, title VI, Sec. 601, Dec. 27, 2001, 115 
Stat. 998; Pub. L. 107-273, div. C, title I, Sec. 11043(f), Nov. 
2, 2002, 116 Stat. 1856; Pub. L. 108-454, title VIII, Sec. 802, 
Dec. 10, 2004, 118 Stat. 3625; Pub. L. 109-233, title V, Sec. 
503(15), June 15, 2006, 120 Stat. 417; Pub. L. 110-389, title VI, 
Sec. 601, Oct. 10, 2008, 122 Stat. 4176.) 
ï¿½ 7254. Organization 

(a) The Court of Appeals for Veterans Claims shall have a seal 
which shall be judicially noticed. 
(b) The Court may hear cases by judges sitting alone or in panels, 
as determined pursuant to procedures established by the 
Court. Any such panel shall have not less than three judges. The 
Court shall establish procedures for the assignment of the judges 
of the Court to such panels and for the designation of the chief of 
each such panel. 
(c)(1) A majority of the judges of the Court shall constitute a 
quorum for the transaction of the business of the Court. A vacancy 
in the Court shall not impair the powers or affect the duties of the 
Court or of the remaining judges of the Court. 

(2) A majority of the judges of a panel of the Court shall 
constitute a quorum for the transaction of the business of the panel. 
A vacancy in a panel of the Court shall not impair the powers or 
affect the duties of the panel or of the remaining judges of the 
panel. 
(d) PRECEDENCE OF JUDGES.-The chief judge of the Court 
shall have precedence and preside at any session that the chief 
judge attends. The other judges shall have precedence and preside 
according to the seniority of their original commissions. Judges 
whose commissions bear the same date shall have precedence according 
to seniority in age. 
(e) Judges of the Court shall have the authority to administer 
oaths. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4114, Sec. 4054; amended Pub. L. 101-94, title IV, Sec. 402, 
Aug. 16, 1989, 103 Stat. 628; Pub. L. 101-237, title VI, Sec. 602(b), 
Dec. 18, 1989, 103 Stat. 2095; renumbered Sec. 7254, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 

L. 102-54, Sec. 14(e)(4), June 13, 1991, 105 Stat. 287; Pub. L. 102-82, 
Sec. 8(3), Aug. 6, 1991, 105 Stat. 377; Pub. L. 105-368, title V, Sec. 
512(a)(1), Nov. 11, 1998, 112 Stat. 3341; Pub. L. 106-117, title X, 
Sec. 1034, Nov. 30, 1999, 113 Stat. 1595.) 
ï¿½ 7255. Offices 

The principal office of the Court of Appeals for Veterans 
Claims shall be in the Washington, D.C., metropolitan area, but 
the Court may sit at any place within the United States. 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 
1988, 102 Stat. 4114, Sec. 4055; renumbered Sec. 7255, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 


Sec. 7256 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 834 

1991, 105 Stat. 238; amended Pub. L. 105-368, title V, Sec. 512(a)(1), 
Nov. 11, 1998, 112 Stat. 3341; Pub. L. 108-454, title VIII, Sec. 801, 
Dec. 10, 2004, 118 Stat. 3625.) 

ï¿½ 7256. Times and places of sessions 

The times and places of sessions of the Court of Appeals for 
Veterans Claims shall be prescribed by the chief judge. 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4115, Sec. 4056; renumbered Sec. 7256, Pub. L. 102-40, title 
IV, Sec. 402(b)(1), May 7,1991, 105 Stat. 238; amended Pub. L. 105-368, 
title V, Sec. 512(a)(1), Nov. 11, 1998, 
112 Stat. 3341.) 

ï¿½ 7257. Recall of retired judges 

(a)(1) A retired judge of the Court may be recalled for further 
service on the Court in accordance with this section. To be eligible 
to be recalled for such service, a retired judge must at the time of 
the judgeï¿½s retirement provide to the chief judge of the Court (or, 
in the case of the chief judge, to the clerk of the Court) notice in 
writing that the retired judge is available for further service on the 
Court in accordance with this section and is willing to be recalled 
under this section. Such a notice provided by a retired judge to 
whom section 7296(c)(1)(B) of this title applies is irrevocable. 

(2) For the purposes of this section- 
(A) a retired judge is a judge of the Court of Appeals for 
Veterans Claims who retires from the Court under section 
7296 of this title or under chapter 83 or 84 of title 5; and 
(B) a recall-eligible retired judge is a retired judge who has 
provided a notice under paragraph (1). 
(b)(1) The chief judge may recall for further service on the 
Court a recall-eligible retired judge in accordance with this section. 
Such a recall shall be made upon written certification by the chief 
judge that substantial service is expected to be performed by the 
retired judge for such period, not to exceed 90 days (or the 
equivalent), as determined by the chief judge to be necessary to 
meet the needs of the Court. 

(2) A recall-eligible retired judge may not be recalled for more 
than 90 days (or the equivalent) during any calendar year without 
the judgeï¿½s consent. 
(3) If a recall-eligible retired judge is recalled by the chief 
judge in accordance with this section and (other than in the case 
of a judge who has previously during that calendar year served at 
least 90 days (or the equivalent) of recalled service on the court) 
declines (other than by reason of disability) to perform the service 
to which recalled, the chief judge shall remove that retired judge 
from the status of a recall-eligible judge. This paragraph shall not 
apply to a judge to whom section 7296(c)(1)(A) or 7296(c)(1)(B) of 
this title applies and who has, in the aggregate, served at least five 
years of recalled service on the Court under this section. 
(4) A recall-eligible retired judge who becomes permanently 
disabled and as a result of that disability is unable to perform 
further service on the Court shall be removed from the status of a 
recall-eligible judge. Determination of such a disability shall be made 
pursuant to section 7253(g) or 7296(g) of this title. 
(c) A retired judge who is recalled under this section may exercise 
all of the judicial powers and duties of the office of a judge in 
active service. 

835 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7261 

(d)(1) The pay of a recall-eligible retired judge to whom section 
7296(c)(1)(B) of this title applies is the pay specified in that 
section. 

(2) A judge who is recalled under this section who retired 
under chapter 83 or 84 of title 5 or to whom section 7296(c)(1)(A) 
of this title applies shall be paid, during the period for which the 
judge serves in recall status, pay at the rate of pay in effect under 
section 7253(e) of this title for a judge performing active service, 
less the amount of the judgeï¿½s annuity under the applicable provisions of 
chapter 83 or 84 of title 5 or the judgeï¿½s annuity under section 
7296(c)(1)(A) of this title, whichever is applicable. 
(e)(1) Except as provided in subsection (d), a judge who is recalled 
under this section who retired under chapter 83 or 84 of title 
5 shall be considered to be a reemployed annuitant under that 
chapter. 

(2) Nothing in this section affects the right of a judge who retired 
under chapter 83 or 84 of title 5 to serve as a reemployed annuitant in 
accordance with the provisions of title 5. 
(Added Pub. L. 106-117, title X, Sec. 1021(a), Nov. 30, 1999, 113
Stat. 1590; amended Pub. L. 110-389, title VI, Secs. 603(a), (b)(3), 
(4), (c), Oct. 10, 2008, 122 Stat. 
4177, 4178.) 

SUBCHAPTER II-PROCEDURE 

ï¿½ 7261. Scope of review 

(a) In any action brought under this chapter, the Court of Appeals for 
Veterans Claims, to the extent necessary to its decision 
and when presented, shall- 
(1) decide all relevant questions of law, interpret constitutional, 
statutory, and regulatory provisions, and determine the 
meaning or applicability of the terms of an action of the Secretary; 
(2) compel action of the Secretary unlawfully withheld or 
unreasonably delayed; 
(3) hold unlawful and set aside decisions, findings (other 
than those described in clause (4) of this subsection), conclusions, 
rules, and regulations issued or adopted by the Secretary, the Board 
of Veteransï¿½ Appeals, or the Chairman of the 
Board found to be- 
(A) arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law; 
(B) contrary to constitutional right, power, privilege, 
or immunity; 
(C) in excess of statutory jurisdiction, authority, or 
limitations, or in violation of a statutory right; or 
(D) without observance of procedure required by law; 
and 
(4) in the case of a finding of material fact adverse to the 
claimant made in reaching a decision in a case before the Department 
with respect to benefits under laws administered by 
the Secretary, hold unlawful and set aside or reverse such finding if 
the finding is clearly erroneous. 
(b) In making the determinations under subsection (a), the 
Court shall review the record of proceedings before the Secretary 

Sec. 7262 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 836 

and the Board of Veteransï¿½ Appeals pursuant to section 7252(b) of 
this title and shall- 

(1) take due account of the Secretaryï¿½s application of section 5107(b)
of this title; and 
(2) take due account of the rule of prejudicial error. 
(c) In no event shall findings of fact made by the Secretary or 
the Board of Veteransï¿½ Appeals be subject to trial de novo by the 
Court. 
(d) When a final decision of the Board of Veteransï¿½ Appeals is 
adverse to a party and the sole stated basis for such decision is the 
failure of the party to comply with any applicable regulation 
prescribed by the Secretary, the Court shall review only questions 
raised as to compliance with and the validity of the regulation. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4115, Sec. 4061; amended Pub. L. 101-237, title VI, Sec. 
602(c), Dec. 18, 1989, 103 Stat. 2095; renumbered Sec. 7261, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 
L. 102-54, Sec. 14(e)(3), June 13, 1991, 105 Stat. 287; Pub. L. 
102-83, Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 403-405; Pub. L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 
1998, 112 Stat. 3341; Pub. L. 107-330, title 
IV, Sec. 401(a), (b), Dec. 6, 2002, 116 Stat. 2832.) 

ï¿½ 7262. Fee for filing appeals 

(a) The Court of Appeals for Veterans Claims may impose a fee 
of not more than $50 for the filing of any appeal with the Court. 
The Court shall establish procedures under which such a fee may 
be waived in the case of an appeal filed by or on behalf of a person 
who demonstrates that the requirement that such fee be paid will 
impose a hardship on that person. A decision as to such a waiver 
is final and may not be reviewed in any other court. 
(b) The Court may from time to time adjust the maximum 
amount permitted for a fee imposed under subsection (a) of this 
section based upon inflation and similar fees charged by other 
courts established under Article I of the Constitution. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4115, Sec. 4062; renumbered Sec. 7262, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 
105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 
112 Stat. 3341.) 

ï¿½ 7263. Representation of parties; fee agreements 

(a) The Secretary shall be represented before the Court of Appeals 
for Veterans Claims by the General Counsel of the Department. 
(b) Representation of appellants shall be in accordance with 
the rules of practice prescribed by the Court under section 7264 of 
this title. In addition to members of the bar admitted to practice 
before the Court in accordance with such rules of practice, the 
Court may allow other persons to practice before the Court who 
meet standards of proficiency prescribed in such rules of practice. 
(c) A person who represents an appellant before the Court 
shall file a copy of any fee agreement between the appellant and 
that person with the Court at the time the appeal is filed. The 
Court, on its own motion or the motion of any party, may review 
such a fee agreement. 
(d) In reviewing a fee agreement under subsection (c) of this 
section or under section 5904(c)(2) of this title, the Court may af

837 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7266 

firm the finding or order of the Board and may order a reduction 
in the fee called for in the agreement if it finds that the fee is 
excessive or unreasonable. An order of the Court under this subsection 
is final and may not be reviewed in any other court. 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4116, Sec. 4063; renumbered Sec. 7263 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405; Pub. L. 105-368, title V, Sec. 
512(a)(1), Nov. 11, 1998, 112 Stat. 3341.) 

ï¿½ 7264. Rules of practice and procedure 

(a) The proceedings of the Court of Appeals for Veterans 
Claims shall be conducted in accordance with such rules of practice 
and procedure as the Court prescribes. 
(b) The mailing of a pleading, decision, order, notice, or process 
in respect of proceedings before the Court shall be held sufficient 
service of such pleading, decision, order, notice, or process if it is 
properly addressed to the address furnished by the appellant on 
the notice of appeal filed under section 7266 of this title. 
(c) Section 455 of title 28 shall apply to judges and proceedings 
of the Court. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4116, Sec. 4064; renumbered Sec. 7264 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-82, Sec. 4, Aug. 6, 1991, 105 Stat. 376; Pub. L. 
105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 
3341.) 

ï¿½ 7265. Contempt authority; assistance to the Court 

(a) The Court shall have power to punish by fine or imprisonment 
such contempt of its authority as- 
(1) misbehavior of any person in its presence or so near 
thereto as to obstruct the administration of justice; 
(2) misbehavior of any of its officers in their official transactions;
or 
(3) disobedience or resistance to its lawful writ, process, 
order, rule, decree, or command. 
(b) The Court shall have such assistance in the carrying out of 
its lawful writ, process, order, rule, decree, or command as is 
available to a court of the United States. The United States marshal 
for 
a district in which the Court is sitting shall, if requested by the 
chief judge of the Court, attend any session of the Court in that 
district. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 
1988, 102 Stat. 4116, 
Sec. 4065; renumbered Sec. 7265, Pub. L. 102-40, title IV, Sec.
402(b)(1), May 7, 
1991, 105 Stat. 238.) 

ï¿½ 7266. Notice of appeal 

(a) In order to obtain review by the Court of Veterans Appeals 
of a final decision of the Board of Veteransï¿½ Appeals, a person 
adversely affected by such decision shall file a notice of appeal with 
the Court within 120 days after the date on which notice of the 
decision is mailed pursuant to section 7104(e) of this title. 
(b) An appellant shall file a notice of appeal under this section 
by delivering or mailing the notice to the Court. 

Sec. 7267 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 838 

(c) A notice of appeal shall be deemed to be received by the 
Court as follows: 
(1) On the date of receipt by the Court, if the notice is delivered. 
(2) On the date of the United States Postal Service postmark stamped 
on the cover in which the notice is posted, if the 
notice is properly addressed to the Court and is mailed. 
(d) For a notice of appeal mailed to the Court to be deemed to 
be received under subsection (c)(2) on a particular date, the United 
States Postal Service postmark on the cover in which the notice is 
posted must be legible. The Court shall determine the legibility of 
any such postmark and the Courtï¿½s determination as to legibility 
shall be final and not subject to review by any other Court. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4116, Sec. 4066; renumbered Sec. 7266 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
404, 405; Pub. L. 103-446, title V, Sec. 511(a), Nov. 2, 1994, 
108 Stat. 4670; Pub. L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 
1998, 112 Stat. 3341; Pub. L. 107-103, title V, Sec. 507, Dec. 27, 
2001, 115 Stat. 997.) 

ï¿½ 7267. Decisions 

(a) A decision upon a proceeding before the Court of Appeals 
for Veterans Claims shall be made as quickly as practicable. In a 
case heard by a panel of the Court, the decision shall be made by 
a majority vote of the panel in accordance with the rules of the 
Court. The decision of the judge or panel hearing the case so made 
shall be the decision of the Court. 
(b) A judge or panel shall make a determination upon any proceeding 
before the Court, and any motion in connection with such 
a proceeding, that is assigned to the judge or panel. The judge or 
panel shall make a report of any such determination which constitutes 
the judge or panelï¿½s final disposition of the proceeding. 
(c) The Court shall designate in its decision in any case those 
specific records of the Government on which it relied (if any) in 
making its decision. The Secretary shall preserve records so 
designated for not less than the period of time designated by the 
Archivist of the United States. (Added Pub. L. 100-687, div. A, title 
III, Sec. 301(a), Nov. 18, 1988, 102 Stat. 4117, Sec. 4067; renumbered 
Sec. 7267, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; amended Pub. L. 102-82, Sec. 1, 8(1), Aug. 6, 
1991, 105 Stat. 375, 377; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 
6, 1991, 105 Stat. 404, 405; Pub. 

L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 3341.) 
ï¿½ 7268. Availability of proceedings 

(a) Except as provided in subsection (b) of this section, all 
decisions of the Court of Appeals for Veterans Claims and all briefs, 
motions, documents, and exhibits received by the Court (including 
a transcript of the stenographic report of the hearings) shall be 
public records open to the inspection of the public. 
(b)(1) The Court may make any provision which is necessary 
to prevent the disclosure of confidential information, including a 
provision that any such document or information be placed under 
seal to be opened only as directed by the Court. 

(2) After the decision of the Court in a proceeding becomes 
final, the Court may, upon motion of the appellant or the Sec

839 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7281 

retary, permit the withdrawal by the party entitled thereto of 
originals of books, documents, and records, and of models, diagrams, 
and other exhibits, submitted to the Court or the Court may, on 
its own motion, make such other disposition thereof as it considers 
advisable. 

(c)(1) The Court shall prescribe rules, in accordance with section 
7264(a) of this title, to protect privacy and security concerns 
relating to all filing of documents and the public availability under 
this subsection of documents retained by the Court or filed 
electronically with the Court. 

(2) The rules prescribed under paragraph (1) shall be consistent to 
the extent practicable with rules addressing privacy and 
security issues throughout the Federal courts. 
(3) The rules prescribed under paragraph (1) shall take into 
consideration best practices in Federal and State courts to protect 
private information or otherwise maintain necessary information 
security. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 
1988, 102 Stat. 4117, Sec. 4068; renumbered Sec. 7268, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; 
amended Pub. L. 102-82, Sec. 8(2), Aug. 6, 1991, 105 Stat. 377; 
Pub. L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 
3341; Pub. L. 110- 389, title VI, Sec. 602, Oct. 10, 2008, 122 
Stat. 4177.) 

ï¿½ 7269. Publication of decisions 

(a) The Court of Appeals for Veterans Claims shall provide for 
the publication of decisions of the Court in such form and manner 
as may be best adapted for public information and use. The Court 
may make such exceptions, or may authorize the chief judge to 
make such exceptions, to the requirement for publication in the 
preceding sentence as may be appropriate. 
(b) Such authorized publication shall be competent evidence of 
the decisions of the Court of Appeals for Veterans Claims therein 
contained in all courts of the United States and of the several 
States without any further proof or authentication thereof. 
(c) Such publications shall be subject to sale in the same manner 
and upon the same terms as other public documents. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 
1988, 102 Stat. 4118, Sec. 4069; renumbered Sec. 7269, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; 
amended Pub. L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 
112 Stat. 3341.) 

SUBCHAPTER III-MISCELLANEOUS PROVISIONS 

ï¿½ 7281. Employees 

(a) The Court of Appeals for Veterans Claims may appoint a 
clerk without regard to the provisions of title 5 governing 
appointments in the competitive service. The clerk shall serve at 
the pleasure of the Court. (b) The judges of the Court may appoint 
law clerks and secretaries, in such numbers as the Court may approve, 
without regard to the provisions of title 5 governing appointments in 
the competitive service. Any such law clerk or secretary shall serve 
at the pleasure of the appointing judge. 

Sec. 7282 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 840 

(c) The clerk, with the approval of the Court, may appoint necessary 
deputies and employees without regard to the provisions of 
title 5 governing appointments in the competitive service. 
(d) The Court may fix and adjust the rates of basic pay for the 
clerk and other employees of the Court without regard to the provisions 
of chapter 51, subchapter III of chapter 53, or section 5373 
of title 5. To the maximum extent feasible, the Court shall compensate 
employees at rates consistent with those for employees 
holding comparable positions in the judicial branch. 
(e) In making appointments under subsections (a) through (c) 
of this section, preference shall be given, among equally qualified 
persons, to persons who are preference eligibles (as defined in section 
2108(3) of title 5). (f) The Court may procure the services of experts 
and consultants under section 3109 of title 5. 
(g) The chief judge of the Court may exercise the authority of 
the Court under this section whenever there are not at least two 
other judges of the Court. 
(h) The Court shall not be considered to be an agency within 
the meaning of section 3132(a)(1) of title 5. 
(i) The Court may accept and utilize voluntary services and 
uncompensated (gratuitous) services, including services as authorized 
by section 3102(b) of title 5 and may accept, hold, administer, and 
utilize gifts and bequests of personal property for the purposes of 
aiding or facilitating the work of the Court. Gifts or bequests of 
money to the Court shall be covered into the Treasury. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4118, Sec. 4081; amended Pub. L. 101-94, title II, Sec. 
204(a), Aug. 16, 1989, 103 Stat. 627; renumbered Sec. 7281, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-82, Sec. 7, Aug. 6, 1991, 105 Stat. 377; Pub. L. 105-368, 
title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 3341; Pub. L. 
106-117, title X, Sec. 
1035(1), Nov. 30, 1999, 113 Stat. 1595.) 

ï¿½ 7282. Budget and expenditures 

(a) The budget of the Court of Appeals for Veterans Claims as 
submitted by the Court for inclusion in the budget of the President 
for any fiscal year shall be included in that budget without review 
within the executive branch. 
(b) The Court may make such expenditures (including expenditures for 
personal services and rent at the seat of Government and 
elsewhere, and for law books, books of reference, and periodicals) 
as may be necessary to execute efficiently the functions vested in 
the Court. 
(c) All expenditures of the Court shall be allowed and paid 
upon presentation of itemized vouchers signed by the certifying 
officer designated by the chief judge. Except as provided in section 
7285 of this title, all such expenditures shall be paid out of moneys 
appropriated for purposes of the Court. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4118, Sec. 4082; renumbered Sec. 7282 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 105-368, title V, Sec. 
512(a)(1), Nov. 11, 1998, 112 Stat. 3341.) 


841 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7286 

ï¿½ 7283. Disposition of fees 

Except for amounts received pursuant to section 7285 of this 
title, all fees received by the Court of Appeals for Veterans Claims 
shall be covered into the Treasury as miscellaneous receipts. 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4118,Sec. 4083; renumbered Sec. 7283 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 105-368, title V, Sec. 
512(a)(1), Nov. 11, 1998, 112 Stat. 3341.) 

ï¿½ 7284. Fee for transcript of record 

The Court of Appeals for Veterans Claims may fix a fee, not 
in excess of the fee authorized by law to be charged and collected 
therefor by the clerks of the district courts, for comparing, or for 
preparing and comparing, a transcript of the record of any proceeding 
before the Court, or for copying any record, entry, or other 
paper and the comparison and certification thereof. 

(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4118, Sec. 4084; renumbered Sec. 7284, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 105-368, title
V, Sec. 512(a)(1), Nov. 11, 1998, 
112 Stat. 3341.) 

ï¿½ 7285. Practice and registration fees 

(a) The Court of Appeals for Veterans Claims may impose a 
reasonable periodic registration fee on persons admitted to practice 
before the Court. The frequency and amount of such fee shall be 
determined by the Court. The Court may also impose a reasonable 
registration fee on persons (other than judges of the Court) participating 
at judicial conferences convened pursuant to section 7286 of 
this title or in any other court-sponsored activity. 
(b) Amounts received by the Court under subsection (a) of this 
section shall be available to the Court for the following purposes: 
(1) Conducting investigations and proceedings, including 
employing independent counsel, to pursue disciplinary matters. 
(2) Defraying the expenses of- 
(A) judicial conferences convened pursuant to section 
7286 of this title; and 
(B) other activities and programs of the Court that are 
intended to support and foster communication and relationships between 
the Court and persons practicing before the Court or the study, 
understanding, public commemoration, or improvement of veterans law or 
of the work of the 
Court. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988,
102 Stat. 4119, Sec. 4085; renumbered Sec. 7285, Pub. L. 102-40, title 
IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 105-368, 
title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 3341; Pub. L. 107-103, 
title VI, Sec. 604(a)-(c)(1), Dec. 27, 2001, 115 Stat. 999; Pub. L. 
110-389, title VI, Sec. 605, Oct. 10, 2008, 122 Stat. 4179.) 

ï¿½ 7286. Judicial Conference of the Court 

The Chief Judge of the Court of Appeals for Veterans Claims 
may summon the judges of the Court to an annual judicial conference, at 
a time and place that the Chief Judge designates, for 
the purpose of considering the business of the Court and recommending 
means of improving the administration of justice within 
the Courtï¿½s jurisdiction. The Court shall provide by its rules for 


Sec. 7287 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 842 

representation and active participation at such conference by persons 
admitted to practice before the Court and by other persons active in 
the legal profession. 

(Added Pub. L. 102-82, Sec. 2(a), Aug. 6, 1991, 105 Stat. 375; amended 
Pub. L. 105- 
368, title V, Sec. 512(a)(1), (2)(A), Nov. 11, 1998, 112 Stat. 3341.) 

ï¿½ 7287. Administration 

Notwithstanding any other provision of law, the Court of Appeals for 
Veterans Claims may exercise, for purposes of management, administration,
and expenditure of funds of the Court, the authorities provided for such 
purposes by any provision of law (including any limitation with respect 
to such provision of law) applicable to a court of the United States 
(as that term is defined in section 451 of title 28), except to the 
extent that such provision of law 
is inconsistent with a provision of this chapter. 

(Added Pub. L. 107-103, title VI, Sec. 605(a), Dec. 27, 2001, 115 Stat. 
1000.) 

ï¿½ 7288. Annual report 

(a) IN GENERAL.-The chief judge of the Court shall submit to 
the appropriate committees of Congress each year a report summarizing 
the workload of the Court for the fiscal year ending during 
the preceding year. 
(b) ELEMENTS.-Each report under subsection (a) shall include, 
with respect to the fiscal year covered by such report, the following 
information: 
(1) The number of appeals filed with the Court. 
(2) The number of petitions filed with the Court. 
(3) The number of applications filed with the Court under 
section 2412 of title 28. 
(4) The total number of dispositions by each of the following: 
(A) The Court as a whole. 
(B) The Clerk of the Court. 
(C) A single judge of the Court. 
(D) A multi-judge panel of the Court. 
(E) The full Court. 
(5) The number of each type of disposition by the Court, 
including settlement, affirmation, remand, vacation, dismissal, 
reversal, grant, and denial. 
(6) The median time from filing an appeal to disposition by 
each of the following: 
(A) The Court as a whole. 
(B) The Clerk of the Court. 
(C) A single judge of the Court. 
(D) Multiple judges of the Court (including a multi-
judge panel of the Court or the full Court). 
(7) The median time from filing a petition to disposition by 
the Court. 
(8) The median time from filing an application under section 2412 of 
title 28 to disposition by the Court. 
(9) The median time from the completion of briefing requirements by the 
parties to disposition by the Court. 
(10) The number of oral arguments before the Court. 

843 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7291 

(11) The number of cases appealed to the United States 
Court of Appeals for the Federal Circuit. 
(12) The number and status of appeals and petitions pending with the 
Court and of applications described in paragraph 
(3) as of the end of such fiscal year. 
(13) The number of cases pending with the Court more 
than 18 months as of the end of such fiscal year. 
(14) A summary of any service performed for the Court by 
a recalled retired judge of the Court. 
(15) An assessment of the workload of each judge of the 
Court, including consideration of the following: 
(A) The time required of each judge for disposition of 
each type of case. 
(B) The number of cases reviewed by the Court. 
(C) The average workload of other Federal judges. 
(c) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.-In this 
section, the term ï¿½ï¿½appropriate committees of Congressï¿½ï¿½ means- 
(1) the Committee on Veteransï¿½ Affairs of the Senate; and 
(2) the Committee on Veteransï¿½ Affairs of the House of 
Representatives. 
(Added Pub. L. 110-389, title VI, Sec. 604(a), Oct. 10, 2008, 122 
Stat. 4178.) 

SUBCHAPTER IV-DECISIONS AND REVIEW 

ï¿½ 7291. Date when Court decision becomes final 

(a) A decision of the United States Court of Appeals for Veterans 
Claims shall become final upon the expiration of the time allowed for 
filing, under section 7292 of this title, a notice of appeal 
from such decision, if no such notice is duly filed within such time. 
If such a notice is filed within such time, such a decision shall 
become final- 
(1) upon the expiration of the time allowed for filing a petition for 
certiorari with the Supreme Court of the United 
States, if the decision of the Court of Appeals for Veterans 
Claims is affirmed or the appeal is dismissed by the United 
States Court of Appeals for the Federal Circuit and no petition 
for certiorari is duly filed; 
(2) upon the denial of a petition for certiorari, if the decision of 
the Court of Appeals for Veterans Claims is affirmed 
or the appeal is dismissed by the United States Court of Appeals for 
the Federal Circuit; or 
(3) upon the expiration of 30 days from the date of 
issuance of the mandate of the Supreme Court, if that Court 
directs that the decision of the Court of Appeals for Veterans 
Claims be affirmed or the appeal dismissed. 
(b)(1) If the Supreme Court directs that the decision of the 
Court of Appeals for Veterans Claims be modified or reversed, the 
decision of the Court of Appeals for Veterans Claims rendered in 
accordance with the mandate of the Supreme Court shall become 
final upon the expiration of 30 days from the time it was rendered, 
unless within such 30 days either the Secretary or the petitioner 
has instituted proceedings to have such decision corrected to accord 
with the mandate, in which event the decision of the Court of Appeals 
for Veterans Claims shall become final when so corrected. 


Sec. 7292 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 844 

(2) If the decision of the Court of Appeals for Veterans Claims 
is modified or reversed by the United States Court of Appeals for 
the Federal Circuit and if- 
(A) the time allowed for filing a petition for certiorari has 
expired and no such petition has been duly filed, or 
(B) the petition for certiorari has been denied, or 
(C) the decision of the United States Court of Appeals for 
the Federal Circuit has been affirmed by the Supreme Court, 
then the decision of the Court of Appeals for Veterans Claims rendered 
in accordance with the mandate of the United States Court 
of Appeals for the Federal Circuit shall become final upon the 
expiration of 30 days from the time such decision of the Court of 
Appeals for Veterans Claims was rendered, unless within such 30 
days either the Secretary or the petitioner has instituted proceedings 
to have such decision corrected so that it will accord with 
the mandate, in which event the decision of the Court of Appeals 
for Veterans Claims shall become final when so corrected. 

(c) If the Supreme Court orders a rehearing, or if the case is 
remanded by the United States Court of Appeals for the Federal 
Circuit to the Court of Appeals for Veterans Claims for a rehearing, 
and if- 
(1) the time allowed for filing a petition for certiorari has 
expired and no such petition has been duly filed, or 
(2) the petition for certiorari has been denied, or 
(3) the decision of the United States Court of Appeals for 
the Federal Circuit has been affirmed by the Supreme Court, 
then the decision of the Court of Appeals for Veterans Claims rendered 
upon such rehearing shall become final in the same manner 
as though no prior decision of the Court of Appeals for Veterans 
Claims had been rendered. 

(d) As used in this section, the term ï¿½ï¿½mandateï¿½ï¿½, in case a mandate
has been recalled before the expiration of 30 days from the 
date of issuance thereof, means the final mandate. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 1988, 
102 Stat. 4119, Sec. 4091; renumbered Sec. 7291 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
404, 405; Pub. L. 105-368, title V, Sec. 512(a)(1), (2)(B), Nov. 
11, 1998, 112 Stat. 3341.) 

ï¿½ 7292. Review by United States Court of Appeals for the 
Federal Circuit 

(a) After a decision of the United States Court of Appeals for 
Veterans Claims is entered in a case, any party to the case may 
obtain a review of the decision with respect to the validity of a 
decision of the Court on a rule of law or of any statute or regulation 
(other than a refusal to review the schedule of ratings for 
disabilities adopted under section 1155 of this title) or any 
interpretation 
thereof (other than a determination as to a factual matter) that 
was relied on by the Court in making the decision. Such a review 
shall be obtained by filing a notice of appeal with the Court of 
Appeals for Veterans Claims within the time and in the manner 
prescribed for appeal to United States courts of appeals from United 
States district courts. 

845 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7292 

(b)(1) When a judge or panel of the Court of Appeals for Veterans 
Claims, in making an order not otherwise appealable under 
this section, determines that a controlling question of law is involved 
with respect to which there is a substantial ground for difference of 
opinion and that there is in fact a disagreement between 
the appellant and the Secretary with respect to that question of 
law and that the ultimate termination of the case may be materially 
advanced by the immediate consideration of that question, the 
judge or panel shall notify the chief judge of that determination. 
Upon receiving such a notification, the chief judge shall certify that 
such a question is presented, and any party to the case may then 
petition the Court of Appeals for the Federal Circuit to decide the 
question. That court may permit an interlocutory appeal to be 
taken on that question if such a petition is filed with it within 10 
days after the certification by the chief judge of the Court of
Appeals for Veterans Claims. Neither the application for, nor the 
granting of, an appeal under this paragraph shall stay proceedings 
in the Court of Veterans Appeals, unless a stay is ordered by a 
judge of the Court of Appeals for Veterans Claims or by the Court 
of Appeals for the Federal Circuit. 

(2) For purposes of subsections (d) and (e) of this section, an 
order described in this paragraph shall be treated as a decision of 
the Court of Appeals for Veterans Claims. 
(c) The United States Court of Appeals for the Federal Circuit 
shall have exclusive jurisdiction to review and decide any challenge 
to the validity of any statute or regulation or any interpretation 
thereof brought under this section, and to interpret constitutional 
and statutory provisions, to the extent presented and necessary to 
a decision. The judgment of such court shall be final subject to 
review by the Supreme Court upon certiorari, in the manner provided 
in section 1254 of title 28. 
(d)(1) The Court of Appeals for the Federal Circuit shall decide 
all relevant questions of law, including interpreting constitutional 
and statutory provisions. The court shall hold unlawful and set 
aside any regulation or any interpretation thereof (other than a 
determination as to a factual matter) that was relied upon in the 
decision of the Court of Appeals for Veterans Claims that the Court 
of Appeals for the Federal Circuit finds to be- 

(A) arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law; 
(B) contrary to constitutional right, power, privilege, or immunity; 
(C) in excess of statutory jurisdiction, authority, or limitations, 
or in violation of a statutory right; or 
(D) without observance of procedure required by law. 
(2) Except to the extent that an appeal under this chapter presents 
a constitutional issue, the Court of Appeals may not review 
(A) a challenge to a factual determination, or (B) a challenge to a 
law or regulation as applied to the facts of a particular case. 
(e)(1) Upon such review, the Court of Appeals for the Federal 
Circuit shall have power to affirm or, if the decision of the Court 
of Appeals for Veterans Claims is not in accordance with law, to 
modify or reverse the decision of the Court of Appeals for Veterans 
Claims or to remand the matter, as appropriate. 


Sec. 7296 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 846 

(2) Rules for review of decisions of the Court of Appeals for 
Veterans Claims shall be those prescribed by the Supreme Court 
under section 2072 of title 28. 
(Added Pub. L. 100-687, div. A, title III, Sec. 301(a), Nov. 18, 
1988, 102 Stat. 4120, Sec. 4092; amended Pub. L. 101-94, title III, 
Sec. 302(b), Aug. 16, 1989, 103 Stat. 628; renumbered Sec. 7292, 
Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 
238; Pub. L. 102-54, Sec. 14(e)(5), June 13, 1991, 105 Stat. 287; 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 105- 368, title V, Sec. 512(a)(1), Nov. 
11, 1998, 112 Stat. 3341; Pub. L. 107-330, title IV, 
Sec. 402(a), Dec. 6, 2002, 116 Stat. 2832.) 

SUBCHAPTER V-RETIREMENT AND SURVIVORS 
ANNUITIES 


ï¿½ 7296. Retirement of judges 

(a) For purposes of this section: 
(1) The term ï¿½ï¿½Courtï¿½ï¿½ means the United States Court of Appeals 
for Veterans Claims. 
(2) The term ï¿½ï¿½judgeï¿½ï¿½ means a judge of the Court. 
(b)(1) A judge who meets the age and service requirements set 
forth in the following table may retire: 

The judge has attained age: And the years of service as a judge 
are at least 
65 
66 
67 
68 
69 
70 
15 
14 
13 
12 
11 
10 

(2) A judge who is not reappointed following the expiration of 
the term for which appointed may retire upon the completion of 
that term if the judge has served as a judge of the Court for 15 
years or more. 
(3) A judge who becomes permanently disabled and as a result 
of that disability is unable to perform the duties of the office 
shall 
retire. 
(c)(1)(A) A judge who is appointed on or after the date of the 
enactment of the Veteransï¿½ Benefits Improvement Act of 2008 and 
who retires under subsection (b) and elects under subsection (d) to 
receive retired pay under this subsection shall (except as provided 
in paragraph (2)) receive retired pay as follows: 

(i) In the case of a judge who is a recall-eligible retired 
judge under section 7257 of this title, the retired pay of the 
judge shall (subject to section 7257(d)(2) of this title) be the 
rate of pay applicable to that judge at the time of retirement, 
as adjusted from time to time under subsection (f)(3). 
(ii) In the case of a judge other than a recall-eligible retired 
judge, the retired pay of the judge shall be the rate of pay 
applicable to that judge at the time of retirement. 
(B) A judge who retired before the date of the enactment of the 
Veteransï¿½ Benefits Improvement Act of 2008 and elected under
subsection (d) to receive retired pay under this subsection, or a 
judge 
who retires under subsection (b) and elects under subsection (d) to 

847 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7296 

receive retired pay under this subsection, shall (except as provided 
in paragraph (2)) receive retired pay as follows: 

(i) In the case of a judge who is a recall-eligible retired 
judge under section 7257 of this title or who was a recall-eligible
retired judge under that section and was removed from recall status 
under subsection (b)(4) of that section by reason of 
disability, the retired pay of the judge shall be the pay of a 
judge of the court. 
(ii) In the case of a judge who at the time of retirement 
did not provide notice under section 7257 of this title of 
availability for service in a recalled status, the retired pay of the 
judge shall be the rate of pay applicable to that judge at the 
time of retirement. 
(iii) In the case of a judge who was a recall-eligible retired 
judge under section 7257 of this title and was removed from 
recall status under subsection (b)(3) of that section, the retired 
pay of the judge shall be the pay of the judge at the time of 
the removal from recall status. 
(2) An individual who serves as a judge for less than 10 years 
and who retires under subsection (b)(3) of this section and elects 
under subsection (d) of this section to receive retired pay under this 
subsection shall receive retired pay at a rate equal to one-half of 
the rate of pay in effect at the time of retirement. 
(3) Retired pay under this subsection shall begin to accrue on 
the day following the day on which the individualï¿½s salary as judge 
ceases to accrue and shall continue to accrue during the remainder 
of the individualï¿½s life. Retired pay under this subsection shall be 
paid in the same manner as the salary of a judge. 
(d)(1) A judge may elect to receive retired pay under subsection 

(c) of this section. Such an election- 
(A) may be made only while an individual is a judge (except that, 
in the case of an individual who fails to be reappointed as judge at 
the expiration of a term of office, the 
election may be made at any time before the date after the day 
on which the individualï¿½s successor takes office); and 
(B) may not be revoked after the retired pay begins to accrue. 
(2) In the case of a judge other than the chief judge, such an 
election shall be made by filing notice of the election in writing 
with the chief judge. In the case of the chief judge, such an election 
shall be made by filing notice of the election in writing with the 
Director of the Office of Personnel Management. 
(3) The chief judge shall transmit to the Director of the Office 
of Personnel Management a copy of each notice filed with the chief 
judge under this subsection. 
(e) If an individual for whom an election to receive retired pay 
under subsection (c) is in effect accepts compensation for employment 
with the United States, the individual shall, to the extent of 
the amount of that compensation, forfeit all rights to retired pay 
under subsection (c) of this section for the period for which the 
compensation is received. 
(f)(1) Except as otherwise provided in this subsection, the provisions
of the civil service retirement laws (including the provisions 
relating to the deduction and withholding of amounts from basic 


Sec. 7296 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 848 

pay, salary, and compensation) shall apply with respect to service 
as a judge as if this section had not been enacted. 

(2) In the case of any individual who has filed an election to 
receive retired pay under subsection (c) of this section- 
(A) no annuity or other payment shall be payable to any 
person under the civil service retirement laws with respect to 
any service performed by such individual (whether performed 
before or after such election is filed and whether performed as 
judge or otherwise) except as authorized by section 8440d of 
title 5; 
(B) no deduction for purposes of the Civil Service Retirement and 
Disability Fund shall be made from retired pay payable to that individual 
under subsection (c) of this section or 
from any other salary, pay, or compensation payable to that individual, 
for any period beginning after the day on which such 
election is filed; and 
(C) such individual shall be paid the lump-sum credit computed under 
section 8331(8) or 8401(a) of title 5, whichever applies, upon making 
application therefor with the Office of Personnel Management. 
(3)(A) A cost-of-living adjustment provided by law in annuities 
payable under civil service retirement laws shall apply to retired 
pay under this section only in the case of retired pay computed 
under paragraph (1)(A)(i) or (2) of subsection (c). 

(B) If such a cost-of-living adjustment would (but for this 
subparagraph) result in the retired pay of a retired judge being in
excess of the annual rate of pay in effect for judges of the Court as 
provided in section 7253(e) of this title, such adjustment may be 
made only in such amount as results in the retired pay of the retired 
judge being equal to that annual rate of pay (as in effect on 
the effective date of such adjustment). 
(g)(1) A judge who becomes permanently disabled and as a result of 
that disability is unable to perform the duties of the office 
shall certify to the President in writing that such permanent 
disability exists. If the chief judge retires for such a disability, 
the retirement of the chief judge shall not take effect until concurred in 
by the President. If any other judge retires for such a disability, 
the chief judge shall furnish to the President a certificate of 
disability signed by the chief judge. 

(2) Whenever the President finds that a judge has become permanently 
disabled and as a result of that disability is unable to 
perform the duties of the office, the President shall declare that 
judge to be retired. Before a judge may be retired under this paragraph, 
the judge shall be provided with a full specification of the 
reasons for the retirement and an opportunity to be heard. 
(h)(1) An individual who has filed an election to receive retired 
pay under subsection (c) of this section may revoke such election 
at any time before the first day on which retired pay would (but 
for such revocation) begin to accrue with respect to such individual. 

(2) Any revocation under this subsection shall be made by filing a 
notice of the election in writing with the Director of the Office 
of Personnel Management. The Office of Personnel Management 
shall transmit to the chief judge a copy of each notice filed under 
this subsection. 

849 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7296 

(3) In the case of a revocation under this subsection- 
(A) for purposes of this section, the individual shall be 
treated as not having filed an election to receive retired pay 
under subsection (c) of this section; 
(B) for purposes of section 7297 of this title- 
(i) the individual shall be treated as not having filed 
an election under section 7297(b) of this title, and 
(ii) section 7297(e) of this title shall not apply and the 
amount credited to such individualï¿½s account (together 
with interest at 3 percent per year, compounded on December 31 of 
each year to the date on which the revocation is 
filed) shall be returned to the individual; 
(C) no credit shall be allowed for any service as a judge of 
the Court unless with respect to such service either there has 
been deducted and withheld the amount required by the civil 
service retirement laws or there has been deposited in the Civil 
Service Retirement and Disability Fund an amount equal to 
the amount so required, with interest; 
(D) the Court shall deposit in the Civil Service Retirement 
and Disability Fund an amount equal to the additional amount 
it would have contributed to such Fund but for the election 
under subsection (d); and 
(E) if subparagraphs (C) and (D) of this paragraph are 
complied with, service on the Court shall be treated as service 
with respect to which deductions and contributions had been 
made during the period of service. 
(i)(1) Beginning with the next pay period after the Director of 
the Office of Personnel Management receives a notice under subsection 
(d) of this section that a judge has elected to receive retired 
pay under this section, the Director shall deduct and withhold 1 
percent of the salary of such judge. Amounts shall be so deducted 
and withheld in a manner determined by the Director. Amounts deducted 
and withheld under this subsection shall be deposited in the 
Treasury of the United States to the credit of the Court of Appeals 
for Veterans Claims Judges Retirement Fund. Deductions under 
this subsection from the salary of a judge shall terminate upon the 
retirement of the judge or upon the completion of 15 years of service 
for which either deductions under this subsection or a deposit 
under subsection (j) of this section has been made, whichever occurs 
first. 

(2) Each judge who makes an election under subsection (d) of 
this section shall be considered to agree to the deductions from salary 
which are made under paragraph (1) of this subsection. 
(j) A judge who makes an election under subsection (d) of this 
section shall deposit, for service on the Court performed before the 
election for which contributions may be made under this section, an 
amount equal to 1 percent of the salary received for the first years, 
not exceeding 15 years, of that service. Retired pay may not be allowed 
until a deposit required by this subsection has been made. 
(k) The amounts deducted and withheld under subsection (i) of 
this section, and the amounts deposited under subsection (j) of this 
section, shall be deposited in the Court of Appeals for Veterans 
Claims Retirement Fund for credit to individual accounts in the 
name of each judge from whom such amounts are received. 

Sec. 7297 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 850 

(Added Pub. L. 101-94, title I, Sec. 101(a), Aug. 16, 1989, 103 Stat. 
617, Sec. 4096; renumbered Sec. 7296 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 
102-82, Sec. 5(c)(1), Aug. 6, 1991, 105 Stat. 376; Pub. L. 102-198, 
Sec. 7(c)(4)(D), Dec. 9, 1991, 105 Stat. 1625; Pub. L. 105-368, 
title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat. 3341; Pub. L. 
106-117, title X, Secs. 1022, 1035(2), Nov. 30, 1999, 113 Stat. 
1592, 1595; Pub. L. 107-103, title VI, Sec. 602, Dec. 27, 2001, 115 
Stat. 999; Pub. L. 110-389, title VI, Sec. 603(b)(1), (2), Oct. 
10, 2008, 122 Stat. 4177, 4178.) 

ï¿½ 7297. Survivor annuities 

(a) For purposes of this section: 
(1) The term ï¿½ï¿½Courtï¿½ï¿½ means the United States Court of Appeals for 
Veterans Claims. 
(2) The term ï¿½ï¿½judgeï¿½ï¿½ means a judge of the Court who is in 
active service or who has retired under section 7296 of this 
title. 
(3) The term ï¿½ï¿½payï¿½ï¿½ means salary received under section 
7253(e) of this title and retired pay received under section 7296 
of this title. 
(4) The term ï¿½ï¿½retirement fundï¿½ï¿½ means the Court of Appeals for
Veterans Claims Retirement Fund established under 
section 7298 of this title. 
(5) The term ï¿½ï¿½surviving spouseï¿½ï¿½ means a surviving spouse 
of an individual who (A) was married to such individual for at 
least one year immediately preceding the individualï¿½s death, or 
(B) is a parent of issue by the marriage. 
(6) The term ï¿½ï¿½dependent childï¿½ï¿½ has the meaning given the 
term ï¿½ï¿½childï¿½ï¿½ in section 376(a)(5) of title 28. 
(7) The term ï¿½ï¿½Member of Congressï¿½ï¿½ means a Representative, a 
Senator, a Delegate to Congress, or the Resident Commissioner of 
Puerto Rico. 
(8) The term ï¿½ï¿½assassinationï¿½ï¿½ as applied to a judge shall 
have the meaning provided that term in section 376(a)(7) of 
title 28 as applied to a judicial official. 
(b) A judge may become a participant in the annuity program 
under this section by filing a written election under this subsection 
while in office or within six months after the date on which the 
judge marries if the judge has retired under section 7296 of this 
title. Any such election shall be made in such manner as may be 
prescribed by the Court. 
(c) There shall be deducted and withheld each pay period from 
the pay of a judge who has made an election under subsection (b) 
of this section a sum equal to that percentage of the judgeï¿½s pay 
that is the same as provided for the deduction from the salary or 
retirement salary of a judge of the United States Court of Federal 
Claims for the purpose of a survivor annuity under section 
376(b)(1)(B) of title 28. Amounts so deducted and withheld shall be 
deposited in the retirement fund. A judge who makes an election 
under subsection (b) of this section shall be considered by that 
election to agree to the deductions from the judgeï¿½s pay required by 
this subsection. 
(d)(1) A judge who makes an election under subsection (b) of 
this section shall deposit, with interest at 3 percent per year 
compounded on December 31 of each year, to the credit of the retirement 
fund, an amount equal to 3.5 percent of the judgeï¿½s pay and 


851 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7297 

of the judgeï¿½s basic salary, pay, or compensation for service as a 
Member of Congress, and for any other civilian service within the 
purview of section 8332 of title 5. Each such judge may elect to 
make such deposits in installments during the judgeï¿½s period of 
service in such amount and under such conditions as may be determined 
in each instance by the chief judge. Notwithstanding the 
failure of a judge to make such deposit, credit shall be allowed for 
the service rendered, but the annual annuity of the surviving 
spouse of such judge shall be reduced by an amount equal to 10 
percent of the amount of such deposit, computed as of the date of 
the death of such judge, unless the surviving spouse elects to
eliminate such service entirely from credit under subsection (k) of this 
section. However, a deposit shall not be required from a judge for 
any year with respect to which deductions from the judgeï¿½s pay, or 
a deposit, were actually made (and not withdrawn) under the civil 
service retirement laws. 

(2) The interest required under the first sentence of paragraph 
(1) shall not be required for any period- 
(A) during which a judge was separated from any service 
described in section 376(d)(2) of title 28; and 
(B) during which the judge was not receiving retired pay 
based on service as a judge or receiving any retirement salary 
as described in section 376(d)(1) of title 28. 
(e) If the service of a judge who makes an election under subsection (b) 
of this section terminates other than pursuant to the 
provisions of section 7296 of this title, or if any judge ceases to be 
married after making the election under subsection (b) of this section
and revokes (in a writing filed as provided in subsection (b) of 
this section) such election, the amount credited to the judgeï¿½s 
individual account (together with interest at 3 percent per year 
compounded on December 31 of each year to the date of the judgeï¿½s 
relinquishment of office) shall be returned to the judge. For the 
purpose of this section, the service of a judge making an election under 
subsection (b) of this section shall be considered to have terminated 
pursuant to section 7296 of this title if- 
(1) the judge is not reappointed following expiration of the 
term for which appointed; and 
(2) at or before the time of the expiration of that term, the 
judge is eligible for and elects to receive retired pay under section 
7296 of this title. 
(f)(1) If a judge who makes an election under subsection (b) of 
this section dies after having rendered at least 18 months of civilian 
service (computed as prescribed in subsection (l) of this section), 
for the last 18 months of which the salary deductions provided for by 
subsection (c) of this section or the deposits required 
by subsection (d) of this section have actually been made (and not 
withdrawn) or the salary deductions required by the civil service 
retirement laws have actually been made (and not withdrawn)- 

(A) if the judge is survived by a surviving spouse but not 
by a dependent child, there shall be paid to the surviving 
spouse an annuity beginning with the day of the death of the 
judge, in an amount computed as provided in subsection (k) of 
this section; or 

Sec. 7297 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 852 

(B) if the judge is survived by a surviving spouse and a dependent 
child or children, there shall be paid to the surviving 
spouse an immediate annuity in an amount computed as provided in 
subsection (k) of this section and there shall also be 
paid to or on behalf of each such child an immediate annuity 
equal to the lesser of- 
(i) 10 percent of the average annual pay of such judge 
(determined in accordance with subsection (k) of this section), or 
(ii) 20 percent of such average annual pay, divided by 
the number of such children; or 
(C) if the judge is not survived by a surviving spouse but 
is survived by a dependent child or children, there shall be 
paid to or on behalf of each such child an immediate annuity 
equal to the lesser of- 
(i) 20 percent of the average annual pay of such judge 
(determined in accordance with subsection (k) of this section), or 
(ii) 40 percent of such average annual pay, divided by 
the number of such children. 
(2) The annuity payable to a surviving spouse under this subsection 
shall be terminated- 
(A) upon the surviving spouseï¿½s death; or 
(B) upon the remarriage of the surviving spouse before age 
55. 
(3) The annuity payable to a child under this subsection shall 
be terminated upon the childï¿½s death. 
(4) In case of the death of a surviving spouse of a judge leaving 
a dependent child or children of the judge surviving the spouse, the 
annuity of such child or children under paragraph (1)(B) of this 
subsection shall be recomputed and paid as provided in paragraph 
(1)(C) of this subsection. In any case in which the annuity of a 
dependent child is terminated, the annuities of any remaining 
dependent child or children, based upon the service of the same 
judge, shall be recomputed and paid as though the child whose annuity 
was so terminated had not survived the judge. 
(5) If a judge dies as a result of an assassination and leaves 
a survivor or survivors who are otherwise entitled to receive annuity 
payments under this section, the 18-month requirement in the 
matter in paragraph (1) preceding subparagraph (A) shall not 
apply. 
(g) Questions of family relationships, dependency, and disability 
arising under this section shall be determined in the same 
manner as such questions arising under chapter 84 of title 5 are 
determined. 
(h)(1) If- 

(A) a judge making an election under subsection (b) of this 
section dies while in office (i) before having rendered 5 years 
of civilian service computed as prescribed in subsection (l) of 
this section, or (ii) after having rendered 5 years of such civilian
service but without a survivor entitled to annuity benefits 
provided by subsection (f) of this section; or 
(B) the right of all persons entitled to an annuity under 
subsection (f) of this section based on the service of such judge 

853 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7297 

terminates before a claim for such benefits has been estab

lished, 
the total amount credited to the individual account of such judge 
(with interest at 3 percent per year, compounded on December 31 
of each year, to the date of the death of such judge) shall be paid 
in the manner specified in paragraph (2) of this subsection. 

(2) An amount payable under paragraph (1) of this subsection 
shall be paid, upon the establishment of a valid claim therefor, to 
the person or persons surviving at the date title to the payment 
arises, in the following order of precedence: 
(A) To the beneficiary or beneficiaries whom the judge designated 
in writing filed before death with the chief judge (except that in 
the case of the chief judge such designation shall 
be filed before death as prescribed by the Court). 
(B) To the surviving spouse of the judge. 
(C) To the child or children of the judge (and the descendants of 
any deceased children by representation). 
(D) To the parents of the judge or the survivor of them. 
(E) To the executor or administrator of the estate of the 
judge. 
(F) To such other next of kin of the judge as may be determined
by the chief judge to be entitled under the laws of the 
domicile of the judge at the time of the judgeï¿½s death. 
(3) Determination as to the surviving spouse, child, or parent 
of a judge for the purposes of paragraph (2) of this subsection shall 
be made without regard to the definitions in subsection (a) of this 
section. 
(4) Payment under this subsection in the manner provided in 
this subsection shall be a bar to recovery by any other person. 
(5) In a case in which the annuities of all persons entitled to 
annuity based upon the service of a judge terminate before the 
aggregate amount of annuity paid equals the total amount credited 
to the individual account of such judge (with interest at 3 percent 
per year, compounded on December 31 of each year to the date of 
the death of the judge), the difference shall be paid, upon 
establishment of a valid claim therefor, in the order of precedence 
prescribed in paragraph (2) of this subsection. 
(6) Any accrued annuity remaining unpaid upon the termination (other 
than by death) of the annuity of any individual based 
upon the service of a judge shall be paid to that individual. Any 
accrued annuity remaining unpaid upon the death of an individual 
receiving an annuity based upon the service of a judge shall be 
paid, upon the establishment of a valid claim therefor, in the 
following order of precedence: 
(A) To the executor or administrator of the estate of that 
person. 
(B) After 30 days after the date of the death of such individual, to 
such individual or individuals as may appear in the 
judgment of the chief judge to be legally entitled thereto. 
Such payment shall be a bar to recovery by any other individual. 

(i) When a payment under this section is to be made to a 
minor, or to a person mentally incompetent or under other legal 
disability adjudged by a court of competent jurisdiction, the payment 
may be made to the person who is constituted guardian or 

Sec. 7297 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 854 

other fiduciary by the law of the State of residence of such claimant 
or is otherwise legally vested with the care of the claimant or the 
claimantï¿½s estate. If no guardian or other fiduciary of the person 
under legal disability has been appointed under the laws of the 
State of residence of the claimant, the chief judge shall determine 
the person who is otherwise legally vested with the care of the 
claimant or the claimantï¿½s estate. 

(j) Annuities under this section shall accrue monthly and shall 
be due and payable in monthly installments on the first business 
day of the month following the month or other period for which the 
annuity has accrued. An annuity under this section is not assignable, 
either in law or in equity, or subject to execution, levy, attachment, 
garnishment, or other legal process. 
(k)(1) The annuity of the surviving spouse of a judge making 
an election under subsection (b) of this section shall be an amount 
equal to the sum of the following: 

(A) The product of- 
(i) 1.5 percent of the judgeï¿½s average annual pay; and 
(ii) the sum of the judgeï¿½s years of judicial service, the 
judgeï¿½s years of prior allowable service as a Member of 
Congress, the judgeï¿½s years of prior allowable service performed as a 
member of the Armed Forces, and the judgeï¿½s 
years, not exceeding 15, of prior allowable service performed as a 
congressional employee (as defined in section 
2107 of title 5). 
(B) Three-fourths of 1 percent of the judgeï¿½s average annual pay 
multiplied by the judgeï¿½s years of allowable service 
not counted under subparagraph (A) of this paragraph. 
(2) An annuity computed under this subsection may not exceed 
50 percent of the judgeï¿½s average annual pay and may not be less 
than 25 percent of such average annual pay. Such annuity shall be 
further reduced in accordance with subsection (d) of this section (if 
applicable). 
(3) For purposes of this subsection, the term ï¿½ï¿½average annual 
payï¿½ï¿½, with respect to a judge, means the average annual pay received 
by the judge for judicial service (including periods in which 
the judge received retired pay under section 7296(d) of this title) 
or for any other prior allowable service during the period of three 
consecutive years in which the judge received the largest such average 
annual pay. 
(l) Subject to subsection (d) of this section, the years of service 
of a judge which are allowable as the basis for calculating the 
amount of the annuity of the judgeï¿½s surviving spouse shall include 
the judgeï¿½s years of service as a judge of the Court, the judgeï¿½s 
years of service as a Member of Congress, the judgeï¿½s years of active 
service as a member of the Armed Forces not exceeding 5 
years in the aggregate and not including any such service for which 
credit is allowed for the purposes of retirement or retired pay 
under any other provision of law, and the judgeï¿½s years of any other 
civilian service within the purview of section 8332 of title 5. 
(m) Nothing contained in this section shall be construed to prevent a 
surviving spouse eligible therefor from simultaneously receiving an 
annuity under this section and any annuity to which 
such spouse would otherwise be entitled under any other law with

855 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS Sec. 7298 

out regard to this section, but in computing such other annuity 
service used in the computation of such spouseï¿½s annuity under this 
section shall not be credited. 

(n) A judge making an election under subsection (b) of this section 
shall, at the time of such election, waive all benefits under the 
civil service retirement laws except section 8440d of title 5. Such 
a waiver shall be made in the same manner and shall have the 
same force and effect as an election filed under section 7296(d) of 
this title. 
(o) Each survivor annuity payable from the retirement fund 
shall be increased at the same time as, and by the same percentage 
by which, annuities payable from the Judicial Survivorsï¿½ Annuities 
Fund are increased pursuant to section 376(m) of title 28. 
(Added Pub. L. 101-94, title I, Sec. 101(a), Aug. 16, 1989, 103 Stat. 
620, Sec. 4097; renumbered Sec. 7297 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1),May 7, 1991, 105 Stat. 238, 239; Pub. L. 
102-54, Sec. 14(e)(6), June 13, 1991, 105 Stat. 287; Pub. L. 102-82, 
Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 376; Pub. L. 102- 198, Sec. 
7(c)(4)(E), Dec. 9, 1991, 105 Stat. 1625; Pub. L. 105-368, title V, 
Sec. 503, 512(a)(1), Nov. 11, 1998, 112 Stat. 3340, 3341; Pub. L. 
106-117, title X, Sec. 1023, 
1035(2), Nov. 30, 1999, 113 Stat. 1592, 1595.) 

ï¿½ 7298. Retirement Fund 

(a) There is established in the Treasury a fund known as the 
Court of Appeals for Veterans Claims Retirement Fund. 
(b) Amounts in the fund are available for the payment of 
judgesï¿½ retired pay under section 7296 of this title and of annuities,

refunds, and allowances under section 7297 of this title. 
(c) Amounts deposited by, or deducted and withheld from the 
salary and retired pay of, a judge under section 7296 or 7297 of 
this title shall be deposited in the fund and credited to an individual 
account of the judge. 
(d) The chief judge of the Court of Appeals for Veterans Claims 
shall submit to the President an annual estimate of the expenditures and 
appropriations necessary for the maintenance and operation of the fund, 
and such supplemental and deficiency estimates 
as may be required from time to time for the same purposes, according 
to law. 
(e)(1) The chief judge may cause periodic examinations of the 
retirement fund to be made by an actuary, who may be an actuary 
employed by another department of the Government temporarily 
assigned for the purpose. 

(2)(A) Subject to the availability of appropriations, there shall 
be deposited in the Treasury to the credit of the retirement fund, 
not later than the close of each fiscal year, such amounts as may 
be required to reduce to zero the unfunded liability (if any) of the 
fund. Such deposits shall be taken from sums available for that fiscal 
year for the payment of the expenses of the Court. 

(B) For purposes of subparagraph (A) of this paragraph, the 
term ï¿½ï¿½unfunded liabilityï¿½ï¿½, with respect to any fiscal year, means 
the amount estimated by the chief judge to be equal to the excess 
(as of the close of that fiscal year) of- 
(i) the present value of all benefits payable from the fund 
(determined on an annual basis in accordance with section 
9503 of title 31), over 
(ii) the sum of- 

Sec. 7299 CH. 72-U.S. COURT OF APPEALS FOR VETERANS CLAIMS 856 

(I) the present values of future deductions under sections 7296(i) and 
7297(c) of this title and future deposits 
under sections 7296(j) and 7296(d) of this title, and 
(II) the balance in the fund as of the close of the fiscal 
year. 
(C) For purposes of subparagraph (B), the term ï¿½ï¿½present valueï¿½ï¿½ 
includes a value determined by an actuary with respect to a payment 
that may be made under subsection (b) from the retirement 
fund within the contemplation of law. 
(D) Amounts deposited in the retirement fund under this paragraph shall 
not be credited to the account of any individual. 
(f) The Secretary of the Treasury shall invest from time to 
time, in interest-bearing securities of the United States, such portions 
of the retirement fund as in such Secretaryï¿½s judgment may 
not be immediately required for payments from the fund. The income 
derived from such investments shall constitute a part of the 
fund. 
(g) For purpose of section 255(g)(1)(B) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(B)), 
the retirement fund shall be treated in the same manner as the 
Claims Judgesï¿½ Retirement Fund. 
(Added Pub. L. 101-94, title I, Sec. 101(a), Aug. 16, 1989, 103 Stat. 
625, Sec. 4098; renumbered Sec. 7298 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 
105-368, title V, Sec. 502, 512(a)(1), (2)(C), Nov. 11, 1998, 112 Stat. 
3340, 3341; Pub. L. 106-117, title X, Sec. 1011(j), Nov. 30, 
1999, 113 Stat. 1589.) 

ï¿½ 7299. Limitation on activities of retired judges 

(a) A retired judge of the Court who is recall-eligible under section 
7257 of this title and who in the practice of law represents (or 
supervises or directs the representation of) a client in making any 
claim relating to veteransï¿½ benefits against the United States or 
any agency thereof shall, pursuant to such section, be considered 
to have declined recall service and be removed from the status of 
a recall-eligible judge. The pay of such a judge, pursuant to section 
7296 of this title, shall be the pay of the judge at the time of the 
removal from recall status. 
(b) A recall-eligible judge shall be considered to be an officer 
or employee of the United States, but only during periods when the 
judge is serving in recall status. Any prohibition, limitation, or 
restriction that would otherwise apply to the activities of a recall-
eligible judge shall apply only during periods when the judge is 
serving in recall status. 
(Added Pub. L. 106-117, title X, Sec. 1024(a), Nov. 30, 1999, 113 
Stat. 1593.) 


CHAPTER 73 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


857 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 

CHAPTER 73-VETERANS HEALTH ADMINISTRATION
ORGANIZATION AND FUNCTIONS


SUBCHAPTER I-ORGANIZATION 

Sec. 

7301. Functions of Veterans Health Administration: in general. 

7302. Functions of Veterans Health Administration: health-care 
personnel education and training programs. 

7303. Functions of Veterans Health Administration: research 
programs. 

7304. Regulations.

7305. Divisions of Veterans Health Administration. 

7306. Office of the Under Secretary for Health. 

7307. Office of Research Oversight. 

7308. Office of Rural Health. 

SUBCHAPTER II-GENERAL AUTHORITY AND ADMINISTRATION 

7311. Quality assurance. 

7312. Special medical advisory group. 

7313. Advisory committees: affiliated institutions. 

7314. Geriatric research, education, and clinical centers. 

7315. Geriatrics and Gerontology Advisory Committee. 

7316. Malpractice and negligence suits: defense by United States. 

7317. Hazardous research projects: indemnification of contractors. 

7318. National Center for Preventive Health. 

7319. Mammography quality standards. 

7320. Centers for mental illness research, education, and clinical 
activities. 

7321. Committee on Care of Severely Chronically Mentally Ill 
Veterans. 

7322. Breast cancer mammography policy. 

7323. Required consultations with nurses. 

7324. Annual report on use of authorities to enhance retention of 
experienced 
nurses. 

7325. Medical emergency preparedness centers. 

7326. Education and training programs on medical response to 
consequences of 
terrorist activities. 

7327. Centers for research, education, and clinical activities on 
complex multi-
trauma associated with combat injuries. 

7328. Medical preparedness centers. 

7329. Parkinsonï¿½s Disease research, education, and clinical 
centers. 

7330. Multiple sclerosis centers of excellence. 

7330A. Epilepsy centers of excellence. 

SUBCHAPTER III-PROTECTION OF PATIENT RIGHTS 

7331. Informed consent. 

7332. Confidentiality of certain medical records. 

7333. Nondiscrimination against alcohol and drug abusers and 
persons infected 
with human immunodeficiency virus. 

7334. Regulations. 

SUBCHAPTER IV-RESEARCH CORPORATIONS 

7361. Authority to establish; status. 
7362. Purpose of corporations. 
7363. Board of directors; executive director. 
7364. General powers. 

859 


Sec. 7301 CH. 73-ORGANIZATION AND FUNCTIONS 860 

7364A. Coverage of employees under certain Federal tort claims 
laws. 
7365. Applicable State law. 
7366. Accountability and oversight.
[7368. Repealed.]


SUBCHAPTER I-ORGANIZATION 

ï¿½ 7301. Functions of Veterans Health Administration: in general 

(a) There is in the Department of Veterans Affairs a Veterans 
Health Administration. The Under Secretary for Health is the head 
of the Administration. The Under Secretary for Health may be 
referred to as the Chief Medical Director. 
(b) The primary function of the Administration is to provide a 
complete medical and hospital service for the medical care and 
treatment of veterans, as provided in this title and in regulations 
prescribed by the Secretary pursuant to this title. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 
105 Stat. 211; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), (2), Oct. 9, 1992, 
106 Stat. 1984.) 

ï¿½ 7302. Functions of Veterans Health Administration: health-
care personnel education and training programs 

(a) In order to carry out more effectively the primary function 
of the Veterans Health Administration and in order to assist in 
providing an adequate supply of health personnel to the Nation, 
the Secretary- 
(1) to the extent feasible without interfering with the medical
care and treatment of veterans, shall develop and carry 
out a program of education and training of health personnel; 
and 
(2) shall carry out a major program for the recruitment, 
training, and employment of veterans with medical military 
occupation specialties as- 
(A) physician assistants; 
(B) expanded-function dental auxiliaries; and 
(C) other medical technicians. 
(b) In carrying out subsection (a)(1), the Secretary shall include 
in the program of education and training under that subsection the 
developing and evaluating of new health careers, interdisciplinary 
approaches, and career advancement opportunities. 
(c) In carrying out subsection (a)(2), the Secretary shall include 
in the program of recruitment, training, and employment under 
that subsection measures to advise all qualified veterans with 
military occupation specialties referred to in that subsection, 
and all 
members of the armed forces about to be discharged or released 
from active duty who have such military occupation specialties, of 
employment opportunities with the Administration. 
(d) The Secretary shall carry out subsection (a) in cooperation 
with the following institutions and organizations: 
(1) Schools of medicine, osteopathy, dentistry, nursing, 
pharmacy, optometry, podiatry, public health, or allied health 
professions. 
(2) Other institutions of higher learning. 
(3) Medical centers. 
(4) Academic health centers. 

861 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7303 

(5) Hospitals. 
(6) Such other public or nonprofit agencies, institutions, or 
organizations as the Secretary considers appropriate. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 211.) 

ï¿½ 7303. Functions of Veterans Health Administration: research 
programs 

(a)(1) In order to carry out more effectively the primary function
of the Administration and in order to contribute to the Nationï¿½s 
knowledge about disease and disability, the Secretary shall 
carry out a program of medical research in connection with the 
provision of medical care and treatment to veterans. Funds appropriated 
to carry out this section shall remain available until expended. 

(2) Such program of medical research shall include biomedical 
research, mental illness research, prosthetic and other rehabilitative 
research, and health-care-services research. 
(3) Such program shall stress- 
(A) research into spinal-cord injuries and other diseases 
that lead to paralysis of the lower extremities; and 
(B) research into injuries and illnesses particularly related 
to service. 
(4) In carrying out such research program, the Secretary shall 
act in cooperation with the entities described in section 7302(d) of 
this title. 
(b) Prosthetic research shall include research and testing in 
the field of prosthetic, orthotic, and orthopedic appliances and 
sensory devices. In order that the unique investigative material and 
research data in the possession of the Government may result in 
the improvement of such appliances and devices for all disabled 
persons, the Secretary (through the Under Secretary for Health) 
shall make the results of such research available to any person, 
and shall consult and cooperate with the Secretary of Health and 
Human Services and the Secretary of Education, in connection with 
programs carried out under section 204(b)(3) of the Rehabilitation 
Act of 1973 (relating to the establishment and support of 
Rehabilitation Engineering Research Centers). 
(c)(1) In conducting or supporting clinical research, the Secretary 
shall ensure that, whenever possible and appropriate- 

(A) women who are veterans are included as subjects in 
each project of such research; and 
(B) members of minority groups who are veterans are included as 
subjects of such research. 
(2) In the case of a project of clinical research in which women 
or members of minority groups will under paragraph (1) be included as 
subjects of the research, the Secretary shall ensure that 
the project is designed and carried out so as to provide for a valid 
analysis of whether the variables being tested in the research affect 
women or members of minority groups, as the case may be, differently 
than other persons who are subjects of the research. 
(d)(1) The Secretary, in carrying out the Secretaryï¿½s responsibilities 
under this section, shall foster and encourage the initiation and 
expansion of research relating to the health of veterans 
who are women. 


Sec. 7304 CH. 73-ORGANIZATION AND FUNCTIONS 862 

(2) In carrying out this subsection, the Secretary shall consult 
with the following to assist the Secretary in setting research 
priorities: 
(A) Officials of the Department assigned responsibility for 
womenï¿½s health programs and sexual trauma services. 
(B) The members of the Advisory Committee on Women 
Veterans. 
(C) Members of appropriate task forces and working 
groups within the Department (including the Women Veterans 
Working Group and the Task Force on Treatment of Women 
Who Suffer Sexual Abuse). 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 211; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984; Pub. L. 103-452, title I, Sec. 102(a), (b)(1), 
Nov. 2, 1994, 108 Stat. 4785, 4786; Pub. L. 105-220, title IV, Sec. 
414(c), Aug. 7, 1998, 112 Stat. 1242; Pub. L. 107-135, title II, Sec. 
205(a), Jan. 23, 2002, 115 Stat. 2460; Pub. L. 108-170, title IV, Sec. 
401(b), Dec. 
6, 2003, 117 Stat. 2061.) 

ï¿½ 7304. Regulations 

(a) Unless specifically otherwise provided, the Under Secretary 
for Health shall prescribe all regulations necessary to the 
administration of the Veterans Health Administration, including 
regulations relating to- 
(1) travel, transportation of household goods and effects, 
and deductions from pay for quarters and subsistence; and 
(2) the custody, use, and preservation of the records, papers, and 
property of the Administration. 
(b) Regulations prescribed by the Under Secretary for Health 
are subject to the approval of the Secretary. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 212; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984.) 

ï¿½ 7305. Divisions of Veterans Health Administration 

The Veterans Health Administration shall include the following: 

(1) The Office of the Under Secretary for Health. 
(2) A Medical Service. 
(3) A Dental Service. 
(4) A Podiatric Service. 
(5) An Optometric Service. 
(6) A Nursing Service. 
(7) Such other professional and auxiliary services as the 
Secretary may find to be necessary to carry out the functions 
of the Administration. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 212; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat.
1984.) 

ï¿½ 7306. Office of the Under Secretary for Health 

(a) The Office of the Under Secretary for Health shall consist 
of the following: 
(1) The Deputy Under Secretary for Health, who shall be 
the principal assistant of the Under Secretary for Health and 
who shall be a qualified doctor of medicine. 
(2) The Associate Deputy Under Secretary for Health, who 
shall be an assistant to the Under Secretary for Health and 

863 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7306 

the Deputy Under Secretary for Health and who shall be a 
qualified doctor of medicine. 

(3) Not to exceed eight Assistant Under Secretaries for 
Health. 
(4) Such Medical Directors as may be appointed to suit the 
needs of the Department, who shall be either a qualified doctor 
of medicine or a qualified doctor of dental surgery or dental 
medicine. 
(5) A Director of Nursing Service, who shall be a qualified 
registered nurse and who shall be responsible to, and report 
directly to, the Under Secretary for Health for the operation of 
the Nursing Service. 
(6) A Director of Pharmacy Service, a Director of Dietetic 
Service, a Director of Podiatric Service, and a Director of 
Optometric Service, who shall be responsible to the Under Secretary 
for Health for the operation of their respective Services. 
(7) Such directors of such other professional or auxiliary 
services as may be appointed to suit the needs of the Department, 
who shall be responsible to the Under Secretary for 
Health for the operation of their respective services. 
(8) The Director of the National Center for Preventive 
Health, who shall be responsible to the Under Secretary for 
Health for the operation of the Center. 
(9) The Advisor on Physician Assistants, who shall be a 
physician assistant with appropriate experience and who shall 
advise the Under Secretary for Health on all matters relating 
to the utilization and employment of physician assistants in 
the Administration. 
(10) Such other personnel as may be authorized by this 
chapter. 
(b) Of the Assistant Under Secretaries for Health appointed 
under subsection (a)(3)- 
(1) not more than two may be persons qualified in the administration 
of health services who are not doctors of medicine, 
dental surgery, or dental medicines; 
(2) one shall be a qualified doctor of dental surgery or dental 
medicine who shall be directly responsible to the Under 
Secretary for Health for the operation of the Dental Service; 
and 
(3) one shall be a qualified physician trained in, or having 
suitable extensive experience in, geriatrics who shall be responsible 
to the Under Secretary for Health for evaluating all 
research, educational, and clinical health-care programs carried out 
in the Administration in the field of geriatrics and 
who shall serve as the principal advisor to the Under Secretary 
for Health with respect to such programs. 
(c) Appointments under subsection (a) shall be made by the 
Secretary. In the case of appointments under paragraphs (1), (2), 
(3), (4), and (8) of that subsection, such appointments shall be 
made upon the recommendation of the Under Secretary for Health. 
(d) Except as provided in subsection (e)- 
(1) any appointment under this section shall be for a period of four 
years, with reappointment permissible for successive like periods, 

Sec. 7307 CH. 73-ORGANIZATION AND FUNCTIONS 864 

(2) any such appointment or reappointment may be extended by the 
Secretary for a period not in excess of three 
years, and 
(3) any person so appointed or reappointed or whose appointment or 
reappointment is extended shall be subject to removal by the Secretary 
for cause. 
(e)(1) The Secretary may designate a member of the Chaplain 
Service of the Department as Director, Chaplain Service, for a 
period of two years, subject to removal by the Secretary for cause. Re-
designation under this subsection may be made for successive like 
periods or for any period not exceeding two years. 

(2) A person designated as Director, Chaplain Service, shall at 
the end of such personï¿½s period of service as Director revert to the 
position, grade, and status which such person held immediately before 
being designated Director, Chaplain Service, and all service as 
Director, Chaplain Service, shall be creditable as service in the 
former position. 
(f) In organizing the Office and appointing persons to positions 
in the Office, the Under Secretary shall ensure that- 
(1) the Office is staffed so as to provide the Under Secretary, 
through a designated clinician in the appropriate discipline in each 
instance, with expertise and direct policy guidance on- 
(A) unique programs operated by the Administration 
to provide for the specialized treatment and rehabilitation 
of disabled veterans (including blind rehabilitation, care of 
spinal cord dysfunction, mental illness, and long-term 
care); and 
(B) the programs established under section 1712A of 
this title; and 
(2) with respect to the programs established under section 
1712A of this title, a clinician with appropriate expertise in 
those programs is responsible to the Under Secretary for the 
management of those programs. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 212; amended Pub. L. 102-405, title II, Sec. 205, title III, 
Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1983, 1984; Pub. L. 
102-585, title V, Sec. 511(b), Nov. 4, 1992, 106 Stat. 4956; Pub. 

L. 103-446, title XII, Sec. 1201(c)(3), Nov. 2, 1994, 108 Stat. 
4683; Pub. L. 104-262, title III, Sec. 344, Oct. 9, 1996, 110 
Stat. 3207; Pub. L. 106-419, title II, Sec. 206, Nov. 1, 2000,
114 Stat. 1842; Pub. L. 107-135, title I, Sec. 131, Jan. 23, 
2002, 115 
Stat. 2454.) 
ï¿½ 7307. Office of Research Oversight 

(a) REQUIREMENT FOR OFFICE.-(1) There is in the Veterans 
Health Administration an Office of Research Oversight 
(hereinafter 
in this section referred to as the ï¿½ï¿½Officeï¿½ï¿½). The Office shall 
advise 
the Under Secretary for Health on matters of compliance and 
assurance in human subjects protections, research safety, and 
research impropriety and misconduct. The Office shall function 
independently of entities within the Veterans Health Administration 
with responsibility for the conduct of medical research programs. 
(2) The Office shall- 
(A) monitor, review, and investigate matters of medical research 
compliance and assurance in the Department with respect to human 
subjects protections; and 

865 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7307 

(B) monitor, review, and investigate matters relating to 
the protection and safety of human subjects and Department 
employees participating in medical research in Department 
programs. 
(b) DIRECTOR.-(1) The head of the Office shall be a Director, 
who shall report directly to the Under Secretary for Health 
(without delegation). 
(2) Any person appointed as Director shall be- 
(A) an established expert in the field of medical research, 
administration of medical research programs, or similar fields; 
and 
(B) qualified to carry out the duties of the Office based on 
demonstrated experience and expertise. 
(c) FUNCTIONS.-(1) The Director shall report to the Under Secretary 
for Health on matters relating to protections of human subjects in 
medical research projects of the Department under any applicable 
Federal law and regulation, the safety of employees involved in 
Department medical research programs, and suspected 
misconduct and impropriety in such programs. In carrying out the 
preceding sentence, the Director shall consult with employees of 
the Veterans Health Administration who are responsible for the 
management and conduct of Department medical research programs. 
(2) The matters to be reported by the Director to the Under 
Secretary under paragraph (1) shall include allegations of research 
impropriety and misconduct by employees engaged in medical research 
programs of the Department. 
(3)(A) When the Director determines that such a recommendation is 
warranted, the Director may recommend to the Under Secretary that a 
Department research activity be terminated, suspended, or restricted, 
in whole or in part. 

(B) In a case in which the Director reasonably believes that activities 
of a medical research project of the Department place 
human subjectsï¿½ lives or health at imminent risk, the Director shall 
direct that activities under that project be immediately suspended 
or, as appropriate and specified by the Director, be limited. 
(d) GENERAL FUNCTIONS.-(1) The Director shall conduct periodic 
inspections and reviews, as the Director determines appropriate, of 
medical research programs of the Department. Such inspections and 
reviews shall include review of required documented 
assurances. 
(2) The Director shall observe external accreditation activities 
conducted for accreditation of medical research programs conducted 
in facilities of the Department. 
(3) The Director shall investigate allegations of research impropriety 
and misconduct in medical research projects of the Department. 
(4) The Director shall submit to the Under Secretary for 
Health, the Secretary, and the Committees on Veteransï¿½ Affairs of 
the Senate and House of Representatives a report on any suspected 
lapse, from whatever cause or causes, in protecting safety of 
human subjects and others, including employees, in medical research
programs of the Department. 

Sec. 7308 CH. 73-ORGANIZATION AND FUNCTIONS 866 

(5) The Director shall carry out such other duties as the Under 
Secretary for Health may require. 
(e) SOURCE OF FUNDS.-Amounts for the activities of the Office, 
including its regional offices, shall be derived from amounts 
appropriated for the Veterans Health Administration for Medical Care. 
(f) ANNUAL REPORT.-Not later than March 15 each year, the 
Director shall submit to the Committees on Veteransï¿½ Affairs of the 
Senate and House of Representatives a report on the activities of 
the Office during the preceding calendar year. Each such report 
shall include, with respect to that year, the following: 
(1) A summary of reviews of individual medical research 
programs of the Department completed by the Office. 
(2) Directives and other communications issued by the Office to 
field activities of the Department. 
(3) Results of any investigations undertaken by the Office 
during the reporting period consonant with the purposes of this 
section. 
(4) Other information that would be of interest to those 
committees in oversight of the Department medical research 
program. 
(g) MEDICAL RESEARCH.-For purposes of this section, the term 
ï¿½ï¿½medical researchï¿½ï¿½ means medical research described in section 
7303(a)(2) of this title. 
(Added Pub. L. 108-170, title IV, Sec. 401(a)(1), Dec. 6, 2003, 
117 Stat. 2060.) 

ï¿½ 7308. Office of Rural Health 

(a) ESTABLISHMENT.-There is established in the Department 
within the Office of the Under Secretary for Health an office to be 
known as the ï¿½ï¿½Office of Rural Healthï¿½ï¿½ (in this section referred to 
as the ï¿½ï¿½Officeï¿½ï¿½). 
(b) HEAD.-The Director of the Office of Rural Health shall be 
the head of the Office. The Director of the Office of Rural Health 
shall be appointed by the Under Secretary of Health from among 
individuals qualified to perform the duties of the position. 
(c) FUNCTIONS.-The functions of the Office are as follows: 
(1) In cooperation with the medical, rehabilitation, health 
services, and cooperative studies research programs in the Office 
of Policy and the Office of Research and Development of 
the Veterans Health Administration, to assist the Under Secretary 
for Health in conducting, coordinating, promoting, and 
disseminating research into issues affecting veterans living in 
rural areas. 
(2) To work with all personnel and offices of the Department of 
Veterans Affairs to develop, refine, and promulgate 
policies, best practices, lessons learned, and innovative and 
successful programs to improve care and services for veterans 
who reside in rural areas of the United States. 
(3) To designate in each Veterans Integrated Service Network (VISN) 
an individual who shall consult on and coordinate 
the discharge in such Network of programs and activities of 
the Office for veterans who reside in rural areas of the United 
States. 

867 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7311 

(4) To perform such other functions and duties as the Secretary or 
the Under Secretary for Health considers appropriate. 
(Added Pub. L. 109-461, title II, Sec. 212(a)(1), Dec. 22, 2006, 
120 Stat. 3421.) 

SUBCHAPTER II-GENERAL AUTHORITY AND 
ADMINISTRATION 


ï¿½ 7311. Quality assurance 

(a) The Secretary shall- 
(1) establish and conduct a comprehensive program to 
monitor and evaluate the quality of health care furnished by 
the Veterans Health Administration (hereinafter in this section 
referred to as the ï¿½ï¿½quality-assurance programï¿½ï¿½); and 
(2) delineate the responsibilities of the Under Secretary for 
Health with respect to the quality-assurance program, including 
the duties prescribed in this section. 
(b)(1) As part of the quality-assurance program, the Under Sec
retary for Health shall periodically evaluate- 

(A) whether there are significant deviations in mortality 
and morbidity rates for surgical procedures performed by the 
Administration from prevailing national mortality and morbidity 
standards for similar procedures; and 
(B) if there are such deviations, whether they indicate deficiencies 
in the quality of health care provided by the Administration. 
(2) The evaluation under paragraph (1)(A) shall be made using 
the information compiled under subsection (c)(1). The evaluation 
under paragraph (1)(B) shall be made taking into account the factors 
described in subsection (c)(2)(B). 
(3) If, based upon an evaluation under paragraph (1)(A), the 
Under Secretary for Health determines that there is a deviation 
referred to in that paragraph, the Under Secretary for Health shall 
explain the deviation in the report submitted under subsection (f). 
(c)(1) The Under Secretary for Health shall- 

(A) determine the prevailing national mortality and morbidity 
standards for each type of surgical procedure performed 
by the Administration; and 
(B) collect data and other information on mortality and 
morbidity rates in the Administration for each type of surgical 
procedure performed by the Administration and (with respect 
to each such procedure) compile the data and other information 
so collected- 
(i) for each medical facility of the Department, in the 
case of cardiac surgery, heart transplant, and renal transplant 
programs; and 
(ii) in the aggregate, for each other type of surgical 
procedure. 
(2) The Under Secretary for Health shall- 
(A) compare the mortality and morbidity rates compiled 
under paragraph (1)(B) with the national mortality and morbidity 
standards determined under paragraph (1)(A); and 
(B) analyze any deviation between such rates and such 
standards in terms of the following: 

Sec. 7312 CH. 73-ORGANIZATION AND FUNCTIONS 868 

(i) The characteristics of the respective patient populations. 
(ii) The level of risk for the procedure involved, based 
on- 
(I) patient age; 
(II) the type and severity of the disease; 
(III) the effect of any complicating diseases; and 
(IV) the degree of difficulty of the procedure. 
(iii) Any other factor that the Under Secretary for 
Health considers appropriate. 
(d) Based on the information compiled and the comparisons, 
analyses, evaluations, and explanations made under subsections (b) 
and (c), the Under Secretary for Health, in the report under 
subsection (f), shall make such recommendations with respect to 
quality assurance as the Under Secretary for Health considers a
ppropriate. 
(e)(1) The Secretary shall allocate sufficient resources (including 
sufficient personnel with the necessary skills and qualifications) 
to enable the Administration to carry out its responsibilities 
under this section. 

(2) The Inspector General of the Department shall allocate 
sufficient resources (including sufficient personnel with the necessary 
skills and qualifications) to enable the Inspector General to monitor 
the quality-assurance program. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 214; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 103- 
446, title XII, Sec. 1201(g)(5), Nov. 2, 1994, 108 Stat. 4687.) 

ï¿½ 7312. Special medical advisory group 

(a) The Secretary shall establish an advisory committee to be 
known as the special medical advisory group. The advisory group 
shall advise the Secretary, through the Under Secretary for Health, 
and the Under Secretary for Health directly, relative to the care 
and treatment of disabled veterans and other matters pertinent to 
the Administration. 
(b) Members of the special medical advisory group shall be appointed 
by the Secretary upon the recommendation of the Under 
Secretary for Health. The special medical advisory group shall be 
composed of- 
(1) members of the medical, dental, podiatric, optometric, 
and allied scientific professions; 
(2) other individuals considered by the Under Secretary for 
Health to have experience pertinent to the mission of the 
Administration; and 
(3) a disabled veteran. 
(c) The special medical advisory group shall meet on a regular 
basis as prescribed by the Secretary. The number, terms of service, 
pay, and allowances of members of the advisory group shall be 
prescribed in accordance with existing law and regulations. 
(d) Not later than February 1 of each year, the special medical 
advisory group shall submit to the Secretary and the Congress a 
report on the activities of the advisory group during the preceding 
fiscal year. No report shall be required under this subsection after 
December 31, 2004. 

869 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7314 

(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 215; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 103- 
446, title XII, Sec. 1201(e)(20), Nov. 2, 1994, 108 Stat. 4686; 
Pub. L. 106-419, titleIV, Sec. 403(c)(5), Nov. 1, 2000, 114 Stat. 1864.) 

ï¿½ 7313. Advisory committees: affiliated institutions 

(a) In each case where the Secretary has a contract or agreement with 
any school, institution of higher learning, medical center, hospital, 
or other public or nonprofit agency, institution, or organization for 
the training or education of health personnel, the 
Secretary shall establish an advisory committee to advise the Secretary 
and the Under Secretary for Health with respect to policy 
matters arising in connection with, and the operation of, the program 
with respect to which it was appointed. Such a committee 
may be a deanï¿½s committee, a medical advisory committee, or the 
like. 
(b) Any such advisory committee may be established on an institution-
wide, multi-disciplinary basis or on a regional basis whenever 
establishment on such a basis is found to be feasible. 
(c) Members of each such advisory committee shall be appointed by the 
Secretary and shall include personnel of the Department (including 
appropriate representation from the full-time staff) 
and of the entity with which the Secretary has entered into the 
contract or agreement. The number of members, and terms of 
members, of each advisory committee shall be prescribed by the 
Secretary. 
(d) The Secretary shall require that the Chief of the Nursing 
Service (or the designee of the Chief) at each Department health-
care facility be included in the membership of each policymaking 
committee at that facility. Such committees include: (1) committees 
relating to matters such as budget, education, position management, 
clinical executive issues, planning, and resource allocation, 
and (2) the deanï¿½s committee or other advisory committee established 
under subsection (a). 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105
Stat. 216; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984.) 

ï¿½ 7314. Geriatric research, education, and clinical centers 

(a) The Secretary, upon the recommendation of the Under Secretary 
for Health and pursuant to the provisions of this section, 
shall designate not more than 25 Department health-care facilities 
as the locations for centers of geriatric research, education, and 
clinical activities and (subject to the appropriation of sufficient 
funds for such purpose) shall establish and operate such centers at 
such locations in accordance with this section. 
(b) In designating locations for centers under subsection (a), 
the Secretary, upon the recommendation of the Under Secretary for 
Health, shall- 
(1) designate each Department health-care facility that as 
of August 26, 1980, was operating a geriatric research, education,
and clinical center unless (on the recommendation of 
the Under Secretary for Health) the Secretary determines that 
such facility does not meet the requirements of subsection (c) 
or has not demonstrated effectiveness in carrying out the 
established purposes of such center or the purposes of title III of 

Sec. 7314 CH. 73-ORGANIZATION AND FUNCTIONS 870 

the Veteransï¿½ Administration Health-Care Amendments of 
1980 (Public Law 96-330; 94 Stat. 1048) or the potential to 
carry out such purposes effectively in the reasonably foreseeable 
future; and 

(2) assure appropriate geographic distribution of such facilities. 
(c) The Secretary may not designate a health-care facility as a 
location for a center under subsection (a) unless the peer review 
panel established under subsection (d) has determined under that 
subsection that the proposal submitted by such facility as a 
location for a new center under subsection (a) is among those 
proposals 
which have met the highest competitive standards of scientific and 
clinical merit, and the Secretary (upon the recommendation of the 
Under Secretary for Health) determines that the facility has (or 
may reasonably be anticipated to develop) each of the following: 
(1) An arrangement with an accredited medical school 
which provides education and training in geriatrics and with 
which such facility is affiliated under which residents receive 
education and training in geriatrics through regular rotation 
through such center and through nursing home, extended care, 
or domiciliary units of such facility so as to provide such 
residents with training in the diagnosis and treatment of chronic 
diseases of older individuals, including cardiopulmonary conditions, 
senile dementia, and neurological disorders. 
(2) An arrangement under which nursing or allied health 
personnel receive training and education in geriatrics through 
regular rotation through nursing home, extended care, or domiciliary 
units of such facility. 
(3) The ability to attract the participation of scientists who 
are capable of ingenuity and creativity in health-care research 
efforts. 
(4) A policymaking advisory committee composed of appropriate 
health-care and research representatives of the facility 
and of the affiliated school or schools to advise the directors of 
such facility and such center on policy matters pertaining to 
the activities of such center during the period of the operation 
of such center. 
(5) The capability to conduct effectively evaluations of the 
activities of such center. 
(d)(1) In order to provide advice to assist the Secretary and the 
Under Secretary for Health in carrying out their responsibilities 
under this section, the Assistant Under Secretary for Health 
described in section 7306(b)(3) of this title shall establish a 
panel to 
assess the scientific and clinical merit of proposals that are 
submitted to the Secretary for the establishment of new centers under 
this section. 

(2) The membership of the panel shall consist of experts in the 
fields of geriatric and gerontological research, education, and
clinical care. Members of the panel shall serve as consultants to the 
Department for a period of no longer than six months. 
(3) The panel shall review each proposal submitted to the 
panel by the Assistant Under Secretary and shall submit its views 
on the relative scientific and clinical merit of each such proposal 
to the Assistant Under Secretary. 

871 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7315 

(4) The panel shall not be subject to the Federal Advisory Committee 
Act. 
(e) Before providing funds for the operation of any such center 
at a health-care facility other than a health-care facility 
designated 
under subsection (b)(1), the Secretary shall assure that the center 
at each facility designated under such subsection is receiving 
adequate funding to enable such center to function effectively in the 
areas of geriatric research, education, and clinical activities. 
(f) There are authorized to be appropriated such sums as may 
be necessary for the support of the research and education 
activities of the centers established pursuant to subsection (a). The 
Under Secretary for Health shall allocate to such centers from 
other funds appropriated generally for the Department medical 
services account and medical and prosthetics research account, as 
appropriate, such amounts as the Under Secretary for Health
determines appropriate. 
(g) Activities of clinical and scientific investigation at each 
center established under subsection (a) shall be eligible to compete 
for 
the award of funding from funds appropriated for the Department 
medical and prosthetics research account and shall receive priority 
in the award of funding from such account insofar as funds are 
awarded to projects for research in geriatrics and gerontology. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 216; amended Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 
105 Stat. 404; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984; Pub. L. 102-585, title V, Sec. 521, Nov. 4, 
1992, 106 Stat. 4958; Pub. L. 103-446, title XII, Sec. 1201(c)(4), 
1202(b)(2), Nov. 2, 1994, 108 Stat. 4683, 4689; Pub. L. 110-387, 
title IX, Sec. 901(a)(8), Oct.
10, 2008, 122 Stat. 4142.) 

ï¿½ 7315. Geriatrics and Gerontology Advisory Committee 

(a) The Secretary shall establish in the Veterans Health 
Administration a Geriatrics and Gerontology Advisory Committee 
(hereinafter in this section referred to as the ï¿½ï¿½Committeeï¿½ï¿½). The 
membership of the Committee shall be appointed by the Secretary, 
upon the recommendation of the Under Secretary for Health, and 
shall include individuals who are not employees of the Federal 
Government and who have demonstrated interest and expertise in 
research, education, and clinical activities related to aging and at 
least one representative of a national veterans service organization. 
The Secretary, upon the recommendation of the Under Secretary 
for Health, shall invite representatives of other appropriate 
departments and agencies of the United States to participate in the 
activities of the Committee and shall provide the Committee with 
such staff and other support as may be necessary for the Committee 
to carry out effectively its functions under this section. 
(b) The Committee shall- 
(1) advise the Under Secretary for Health on all matters 
pertaining to geriatrics and gerontology; 
(2) assess, through an evaluation process (including a site 
visit conducted not later than three years after the date of the 
establishment of each new center and not later than two years 
after the date of the last evaluation of those centers in 
operation on August 26, 1980), the ability of each center 
established under section 7314 of this title to achieve its 
established 
purposes and the purposes of title III of the Veteransï¿½ Adminis

Sec. 7316 CH. 73-ORGANIZATION AND FUNCTIONS 872 

tration Health-Care Amendments of 1980 (Public Law 96-330; 
94 Stat. 1048); 

(3) assess the capability of the Department to provide high 
quality geriatric services, extended services, and other health-
care services to eligible older veterans, taking into consideration 
the likely demand for such services from such veterans; 
(4) assess the current and projected needs of eligible older 
veterans for geriatric services, extended-care services, and 
other health-care services from the Department and its activities 
and plans designed to meet such needs; and 
(5) perform such additional functions as the Secretary or 
Under Secretary for Health may direct. 
(c)(1) The Committee shall submit to the Secretary, through 
the Under Secretary for Health, such reports as the Committee 
considers appropriate with respect to its findings and conclusions 
under subsection (b). Such reports shall include the following: 

(A) Descriptions of the operations of the centers of geriatric 
research, education, and clinical activities established pursuant 
to section 7314 of this title. 
(B) Assessments of the quality of the operations of such 
centers. 
(C) An assessment of the extent to which the Department, 
through the operation of such centers and other health-care 
facilities and programs, is meeting the needs of eligible older 
veterans for geriatric services, extended-care services, and other 
health-care services. 
(D) Assessments of and recommendations for correcting 
any deficiencies in the operations of such centers. 
(E) Recommendations for such other geriatric services, extended-
care services, and other health-care services as may be 
needed to meet the needs of older veterans. 
(2) Whenever the Committee submits a report to the Secretary 
under paragraph (1), the Committee shall at the same time transmit 
a copy of the report in the same form to the appropriate committees 
of Congress. Not later than 90 days after receipt of a report 
under that paragraph, the Secretary shall submit to the appropriate 
committees of Congress a report containing any comments 
and recommendations of the Secretary with respect to the report of 
the Committee. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 217; amended 
Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404; 
Pub. L. 102-405, title 
I, Sec. 102, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1973, 1984; Pub. L. 103- 
446, title XII, Sec. 1201(i)(9), 1202(b)(2), Nov. 2, 1994, 108 
Stat. 4688, 4689; Pub. 

L. 107-330, title III, Sec. 308(g)(13), Dec. 6, 2002, 116 Stat. 
2829.) 
ï¿½ 7316. Malpractice and negligence suits: defense by United 
States 

(a)(1) The remedy- 

(A) against the United States provided by sections 1346(b) 
and 2672 of title 28, or 
(B) through proceedings for compensation or other benefits 
from the United States as provided by any other law, where 
the availability of such benefits precludes a remedy under section 
1346(b) or 2672 of title 28, 

873 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7316 

for damages for personal injury, including death, allegedly arising 
from malpractice or negligence of a health care employee of the 
Administration in furnishing health care or treatment while in the
exercise of that employeeï¿½s duties in or for the Administration shall 
be exclusive of any other civil action or proceeding by reason of the 
same subject matter against the health care employee (or employeeï¿½s 
estate) whose act or omission gave rise to such claim. 

(2) For purposes of paragraph (1), the term ï¿½ï¿½health care employee 
of the Administrationï¿½ï¿½ means a physician, dentist, podiatrist, 
chiropractor, optometrist, nurse, physician assistant, expanded-
function dental auxiliary, pharmacist, or paramedical (such 
as medical and dental technicians, nursing assistants, and 
therapists), or other supporting personnel. 
(b) The Attorney General shall defend any civil action or proceeding 
brought in any court against any person referred to in subsection 
(a) (or such personï¿½s estate) for any such damage or injury. 
Any such person against whom such civil action or proceeding is 
brought shall deliver within such time after date of service or 
knowledge of service as determined by the Attorney General, all 
process served upon such person or an attested true copy thereof 
to such personï¿½s immediate superior or to whomever was designated 
by the Secretary to receive such papers and such person 
shall promptly furnish copies of the pleading and process therein 
to the United States attorney for the district embracing the place 
wherein the proceeding is brought, to the Attorney General, and to 
the Secretary. 
(c) Upon a certification by the Attorney General that the defendant 
was acting in the scope of such personï¿½s employment in or 
for the Administration at the time of the incident out of which the 
suit arose, any such civil action or proceeding commenced in a 
State court shall be removed without bond at any time before trial 
by the Attorney General to the district court of the United States 
of the district and division embracing the place wherein it is 
pending and the proceeding deemed a tort action brought against the 
United States under the provisions of title 28 and all references 
thereto. After removal the United States shall have available all 
defenses to which it would have been entitled if the action had 
originally been commenced against the United States. Should a 
United States district court determine on a hearing on a motion to 
remand held before a trial on the merits that the employee whose 
act or omission gave rise to the suit was not acting within the 
scope of such personï¿½s office or employment, the case shall be 
remanded to the State court. 
(d) The Attorney General may compromise or settle any claim 
asserted in such civil action or proceeding in the manner provided 
in section 2677 of title 28, and with the same effect. 
(e) The Secretary may, to the extent the Secretary considers 
appropriate, hold harmless or provide liability insurance for any 
person to whom the immunity provisions of this section apply (as 
described in subsection (a)), for damage for personal injury or 
death, or for property damage, negligently caused by such person 
while furnishing medical care or treatment (including the conduct 
of clinical studies or investigations) in the exercise of such 
personï¿½s 
duties in or for the Administration, if such person is assigned to 

Sec. 7317 CH. 73-ORGANIZATION AND FUNCTIONS 874 

a foreign country, detailed to State or political division thereof, 
or 
is acting under any other circumstances which would preclude the 
remedies of an injured third person against the United States, 
provided by sections 1346(b) and 2672 of title 28, for such 
damage or 
injury. 

(f) The exception provided in section 2680(h) of title 28 shall 
not apply to any claim arising out of a negligent or wrongful act 
or omission of any person described in subsection (a) in furnishing 
medical care or treatment (including medical care or treatment 
furnished in the course of a clinical study or investigation) while in 
the exercise of such personï¿½s duties in or for the Administration. 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105
Stat. 219; amended 
Pub. L. 108-170, title III, Sec. 302(e), Dec. 6, 2003, 117 Stat. 
2058.) 

ï¿½ 7317. Hazardous research projects: indemnification of contractors 

(a)(1) With the approval of the Secretary, any contract or research 
authorized by section 7303 of this title, the performance of 
which involves a risk of an unusually hazardous nature, may 
provide that the United States will indemnify the contractor as 
provided in paragraph (2), but only to the extent that the liability, 
loss, or damage concerned arises out of the direct performance of 
the contract and to the extent not covered by the financial 
protection required under subsection (e). 

(2) Indemnity under paragraph (1) is indemnity against either 
or both of the following: 
(A) Liability (including reasonable expenses of litigation or 
settlement) to third persons, except liability under State or 
Federal workersï¿½ injury compensation laws to employees of the 
contractor employed at the site of and in connection with the 
contract for which indemnification is granted, for death, bodily 
injury, or loss of or damage to property, from a risk that the 
contract defines as unusually hazardous. 
(B) Loss of or damage to property of the contractor from 
a risk that the contract defines as unusually hazardous. 
(b) A contract that provides for indemnification in accordance 
with subsection (a) must also provide for- 
(1) notice to the United States of any claim or suit against 
the contractor for death, bodily injury, or loss of or damage to 
property; and 
(2) control of or assistance in the defense by the United 
States, at its election, of any such suit or claim for which 
indemnification is provided hereunder. 
(c) A payment may not be made under subsection (a) unless 
the Secretary certifies that the amount is just and reasonable. 
(d) Upon approval by the Secretary, payments under subsection 
(a) may be made from- 
(1) funds obligated for the performance of the contract 
concerned; 
(2) funds available for research or development or both, 
and not otherwise obligated; or 
(3) funds appropriated for those payments. 
(e) Each contractor which is a party to an indemnification 
agreement under subsection (a) shall have and maintain financial 

875 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7318 

protection of such type and in such amounts as the Secretary 
shall 
require to cover liability to third persons and loss of or 
damage to 
the contractorï¿½s property. The amount of financial protection
required shall be the maximum amount of insurance available from 
private sources, except that the Secretary may establish a lesser 
amount, taking into consideration the cost and terms of private 
insurance. Such financial protection may include private insurance, 
private contractual indemnities, self-insurance, other proof of 
financial responsibility, or a combination of such measures. 

(f) In administering the provisions of this section, the Secretary 
may use the facilities and services of private insurance 
organizations and may contract to pay a reasonable compensation 
therefor. 
Any contract made under the provisions of this section may be 
made without regard to the provisions of section 3709 of the 
Revised Statutes (41 U.S.C. 5), upon a showing by the Secretary that 
advertising is not reasonably practicable, and advance payments 
may be made under any such contract. 
(g) The authority to indemnify contractors under this section 
does not create any rights in third persons which would not 
otherwise exist by law. 
(h) Funds appropriated to carry out this section shall remain 
available until expended. 
(i) In this section, the term ï¿½ï¿½contractorï¿½ï¿½ includes subcontractors 
of any tier under a contract containing an indemnification 
provision pursuant to subsection (a). 
(Added Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 220.) 

ï¿½ 7318. National Center for Preventive Health 

(a)(1) The Under Secretary for Health shall establish and operate
in the Veterans Health Administration a National Center for 
Preventive Health (hereinafter in this section referred to as the 
ï¿½ï¿½Centerï¿½ï¿½). The Center shall be located at a Department health 
care 
facility. 

(2) The head of the Center is the Director of Preventive Health 
(hereinafter in this section referred to as the ï¿½ï¿½Directorï¿½ï¿½). 
(3) The Under Secretary for Health shall provide the Center 
with such staff and other support as may be necessary for the 
Center to carry out effectively its functions under this section. 
(b) The purposes of the Center are the following: 
(1) To provide a central office for monitoring and encouraging 
the activities of the Veterans Health Administration 
with respect to the provision, evaluation, and improvement of 
preventive health services. 
(2) To promote the expansion and improvement of clinical, 
research, and educational activities of the Veterans Health 
Administration with respect to such services. 
(c) In carrying out the purposes of the Center, the Director 
shall do the following: 
(1) Develop and maintain current information on clinical 
activities of the Veterans Health Administration relating to 
preventive health services, including activities relating to- 
(A) the on-going provision of regularly-furnished services; and 

Sec. 7319 CH. 73-ORGANIZATION AND FUNCTIONS 876 

(B) patient education and screening programs carried 
out throughout the Administration. 
(2) Develop and maintain detailed current information on 
research activities of the Veterans Health Administration 
relating to preventive health services. 
(3) In order to encourage the effective provision of preventive 
health services by Veterans Health Administration personnel- 
(A) ensure the dissemination to such personnel of any 
appropriate information on such services that is derived 
from research carried out by the Administration; and 
(B) acquire and ensure the dissemination to such personnel of 
any appropriate information on research and 
clinical practices relating to such services that are carried 
out by researchers, clinicians, and educators who are not 
affiliated with the Administration. 
(4) Facilitate the optimal use of the unique resources of 
the Department for cooperative research into health outcomes 
by initiating recommendations, and responding to requests of 
the Under Secretary for Health and the Director of the Medical 
and Prosthetic Research Service, for such research into preventive 
health services. 
(5) Provide advisory services to personnel of Department 
health-care facilities with respect to the planning or furnishing 
of preventive health services by such personnel. 
(d) There is authorized to be appropriated $1,500,000 to the 
Medical Care General and Special Fund of the Department of Veterans 
Affairs for each fiscal year for the purpose of permitting the 
National Center for Preventive Health to carry out research, 
clinical, educational, and administrative activities under this section. 
Such activities shall be considered to be part of the operation of 
health-care facilities of the Department without regard to the l
ocation at which such activities are carried out. 
(e) In this section, the term ï¿½ï¿½preventive health servicesï¿½ï¿½ has 
the meaning given such term in section 1701(9) of this title. 
(Added Pub. L. 102-585, title V, Sec. 511(a)(1), Nov. 4, 1992, 106 
Stat. 4955; amended Pub. L. 103-446, title XII, Sec. 1201(c)(5), 
Nov. 2, 1994, 108 Stat. 4683.) 

ï¿½ 7319. Mammography quality standards 

(a) A mammogram may not be performed at a Department facility unless 
that facility is accredited for that purpose by a private 
nonprofit organization designated by the Secretary. An organization 
designated by the Secretary under this subsection shall meet 
the standards for accrediting bodies established under subsection 
(e) of section 354 of the Public Health Service Act (42 U.S.C. 263b). 
(b) The Secretary, in consultation with the Secretary of Health 
and Human Services, shall prescribe quality assurance and quality 
control standards relating to the performance and interpretation of 
mammograms and use of mammogram equipment and facilities of 
the Department of Veterans Affairs consistent with the requirements 
of section 354(f)(1) of the Public Health Service Act. Such 
standards shall be no less stringent than the standards prescribed 
by the Secretary of Health and Human Services under section 
354(f) of the Public Health Service Act. 

877 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7320 

(c)(1) The Secretary, to ensure compliance with the standards 
prescribed under subsection (b), shall provide for an annual 
inspection of the equipment and facilities used by and in Department 
health care facilities for the performance of mammograms. Such 
inspections shall be carried out in a manner consistent with the 
inspection of certified facilities by the Secretary of Health and 
Human Services under section 354(g) of the Public Health Service 
Act. 

(2) The Secretary may not provide for an inspection under 
paragraph (1) to be performed by a State agency. 
(d) The Secretary shall ensure that mammograms performed 
for the Department under contract with any non-Department facility or
provider conform to the quality standards prescribed by the 
Secretary of Health and Human Services under section 354 of the 
Public Health Service Act. 
(e) For the purposes of this section, the term ï¿½ï¿½mammogramï¿½ï¿½ 
has the meaning given such term in paragraph (5) of section 354(a) 
of the Public Health Service Act. 
(Added Pub. L. 104-262, title III, Sec. 321(a)(1), Oct. 9, 1996, 110 
Stat. 3195.) 

ï¿½ 7320. Centers for mental illness research, education, and 
clinical activities 

(a) The purpose of this section is to provide for the improvement of 
the provision of health-care services and related counseling 
services to eligible veterans suffering from mental illness 
(especially mental illness related to service-related conditions) 
through- 
(1) the conduct of research (including research on improving mental 
health service facilities of the Department and on 
improving the delivery of mental health services by the Department); 
(2) the education and training of health care personnel of 
the Department; and 
(3) the development of improved models and systems for 
the furnishing of mental health services by the Department. 
(b)(1) The Secretary shall establish and operate centers for 
mental illness research, education, and clinical activities. Such 
centers shall be established and operated by collaborating Department 
facilities as provided in subsection (c)(1). Each such center shall 
function as a center for- 

(A) research on mental health services; 
(B) the use by the Department of specific models for furnishing 
services to treat serious mental illness; 
(C) education and training of health-care professionals of 
the Department; and 
(D) the development and implementation of innovative 
clinical activities and systems of care with respect to the delivery 
of such services by the Department. 
(2) The Secretary shall, upon the recommendation of the Under 
Secretary for Health, designate the centers under this section. In 
making such designations, the Secretary shall ensure that the 
centers designated are located in various geographic regions of the 
United States. The Secretary may designate a center under this 
section only if- 

Sec. 7320 CH. 73-ORGANIZATION AND FUNCTIONS 878 

(A) the proposal submitted for the designation of the center meets 
the requirements of subsection (c); 
(B) the Secretary makes the finding described in subsection (d); and 
(C) the peer review panel established under subsection (e) 
makes the determination specified in subsection (e)(3) with respect 
to that proposal. 
(3) Not more than five centers may be designated under this 
section. 
(4) The authority of the Secretary to establish and operate centers 
under this section is subject to the appropriation of funds for 
that purpose. 
(c) A proposal submitted for the designation of a center under 
this section shall- 
(1) provide for close collaboration in the establishment and 
operation of the center, and for the provision of care and the 
conduct of research and education at the center, by a Department 
facility or facilities in the same geographic area which 
have a mission centered on care of the mentally ill and a Department 
facility in that area which has a mission of providing 
tertiary medical care; 
(2) provide that no less than 50 percent of the funds appropriated 
for the center for support of clinical care, research, and 
education will be provided to the collaborating facility or 
facilities that have a mission centered on care of the mentally ill; 
and 
(3) provide for a governance arrangement between the collaborating 
Department facilities which ensures that the center 
will be established and operated in a manner aimed at improving the 
quality of mental health care at the collaborating facility or 
facilities which have a mission centered on care of the 
mentally ill. 
(d) The finding referred to in subsection (b)(2)(B) with respect 
to a proposal for designation of a site as a location of a center 
under this section is a finding by the Secretary, upon the 
recommendation of the Under Secretary for Health, that the facilities 
submitting the proposal have developed (or may reasonably be 
anticipated to develop) each of the following: 
(1) An arrangement with an accredited medical school that 
provides education and training in psychiatry and with which 
one or more of the participating Department facilities is affiliated 
under which medical residents receive education and 
training in psychiatry through regular rotation through the 
participating Department facilities so as to provide such residents 
with training in the diagnosis and treatment of mental 
illness. 
(2) An arrangement with an accredited graduate program 
of psychology under which students receive education and 
training in clinical, counseling, or professional psychology 
through regular rotation through the participating Department 
facilities so as to provide such students with training in the 
diagnosis and treatment of mental illness. 
(3) An arrangement under which nursing, social work, 
counseling, or allied health personnel receive training and edu

879 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7320 

cation in mental health care through regular rotation through 
the participating Department facilities. 

(4) The ability to attract scientists who have demonstrated 
achievement in research- 
(A) into the evaluation of innovative approaches to the 
design of mental health services; or 
(B) into the causes, prevention, and treatment of mental illness. 
(5) The capability to evaluate effectively the activities of 
the center, including activities relating to the evaluation of 
specific efforts to improve the quality and effectiveness of mental 
health services provided by the Department at or through 
individual facilities. 
(e)(1) In order to provide advice to assist the Secretary and the 
Under Secretary for Health to carry out their responsibilities under 
this section, the official within the central office of the Veterans 
Health Administration responsible for mental health and behavioral 
sciences matters shall establish a peer review panel to assess 
the scientific and clinical merit of proposals that are submitted to 
the Secretary for the designation of centers under this section. 

(2) The panel shall consist of experts in the fields of mental 
health research, education and training, and clinical care. Members 
of the panel shall serve as consultants to the Department. 
(3) The panel shall review each proposal submitted to the 
panel by the official referred to in paragraph (1) and shall submit 
to that official its views on the relative scientific and clinical 
merit 
of each such proposal. The panel shall specifically determine with 
respect to each such proposal whether that proposal is among those 
proposals which have met the highest competitive standards of 
scientific and clinical merit. 
(4) The panel shall not be subject to the Federal Advisory Committee 
Act (5 U.S.C. App.). 
(f) Clinical and scientific investigation activities at each center 
established under this section- 
(1) may compete for the award of funding from amounts 
appropriated for the Department of Veterans Affairs medical 
and prosthetics research account; and 
(2) shall receive priority in the award of funding from such 
account insofar as funds are awarded to projects and activities 
relating to mental illness. 
(g) The Under Secretary for Health shall ensure that at least 
three centers designated under this section emphasize research 
into means of improving the quality of care for veterans suffering 
from mental illness through the development of community-based 
alternatives to institutional treatment for such illness. 
(h) The Under Secretary for Health shall ensure that information 
produced by the research, education and training, and clinical 
activities of centers established under this section that may be 
useful for other activities of the Veterans Health Administration is 
disseminated throughout the Veterans Health Administration. Such 
dissemination shall be made through publications, through programs 
of continuing medical and related education provided 
through regional medical education centers under subchapter VI of 
chapter 74 of this title, and through other means. Such programs 

Sec. 7321 CH. 73-ORGANIZATION AND FUNCTIONS 880 

of continuing medical education shall receive priority in the award 
of funding. 

(i) The official within the central office of the Veterans Health 
Administration responsible for mental health and behavioral 
sciences matters shall be responsible for supervising the operation 
of the centers established pursuant to this section and shall provide 
for ongoing evaluation of the centers and their compliance 
with the requirements of this section. 
(j)(1) There are authorized to be appropriated to the Department of 
Veterans Affairs for the basic support of the research and 
education and training activities of centers established pursuant to 
this section amounts as follows: 

(A) $3,125,000 for fiscal year 1998. 
(B) $6,250,000 for each of fiscal years 1999 through 2001. 
(2) In addition to funds appropriated for a fiscal year pursuant 
to the authorization of appropriations in paragraph (1), the Under 
Secretary for Health shall allocate to such centers from other funds 
appropriated for that fiscal year generally for the Department of 
Veterans Affairs medical services account and the Department of 
Veterans Affairs medical and prosthetics research account such 
amounts as the Under Secretary for Health determines appropriate 
to carry out the purposes of this section. 
(Added Pub. L. 104-262, title III, Sec. 334(a)(1), Oct. 9, 1996, 
110 Stat. 3200; 
amended Pub. L. 110-387, title IX, Sec. 901(a)(8), Oct. 10, 2008, 
122 Stat. 4142.) 

ï¿½ 7321. Committee on Care of Severely Chronically Mentally 
Ill Veterans 

(a) The Secretary, acting through the Under Secretary for 
Health, shall establish in the Veterans Health Administration a 
Committee on Care of Severely Chronically Mentally Ill Veterans. 
The Under Secretary shall appoint employees of the Department 
with expertise in the care of the chronically mentally ill to serve 
on the committee. 
(b) The committee shall assess, and carry out a continuing assessment 
of, the capability of the Veterans Health Administration 
to meet effectively the treatment and rehabilitation needs of 
mentally ill veterans whose mental illness is severe and chronic and 
who are eligible for health care furnished by the Department, 
including the needs of such veterans who are women. In carrying out 
that responsibility, the committee shall- 
(1) evaluate the care provided to such veterans through 
the Veterans Health Administration; 
(2) identify systemwide problems in caring for such veterans in 
facilities of the Veterans Health Administration; 
(3) identify specific facilities within the Veterans Health 
Administration at which program enrichment is needed to improve 
treatment and rehabilitation of such veterans; and 
(4) identify model programs which the committee considers 
to have been successful in the treatment and rehabilitation of 
such veterans and which should be implemented more widely 
in or through facilities of the Veterans Health Administration. 
(c) The committee shall- 

881 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7322 

(1) advise the Under Secretary regarding the development 
of policies for the care and rehabilitation of severely chronically 
mentally ill veterans; and 
(2) make recommendations to the Under Secretary- 
(A) for improving programs of care of such veterans at 
specific facilities and throughout the Veterans Health Administration; 
(B) for establishing special programs of education and 
training relevant to the care of such veterans for employees of 
the Veterans Health Administration; 
(C) regarding research needs and priorities relevant to 
the care of such veterans; and 
(D) regarding the appropriate allocation of resources 
for all such activities. 
(d)(1) Not later than April 1, 1997, the Secretary shall submit 
to the Committees on Veteransï¿½ Affairs of the Senate and House of 
Representatives a report on the implementation of this section. The 
report shall include the following: 

(A) A list of the members of the committee. 
(B) The assessment of the Under Secretary for Health, 
after review of the initial findings of the committee, regarding 
the capability of the Veterans Health Administration, on a systemwide 
and facility-by-facility basis, to meet effectively the 
treatment and rehabilitation needs of severely chronically mentally 
ill veterans who are eligible for Department care. 
(C) The plans of the committee for further assessments. 
(D) The findings and recommendations made by the committee to the 
Under Secretary for Health and the views of the 
Under Secretary on such findings and recommendations. 
(E) A description of the steps taken, plans made (and a 
timetable for their execution), and resources to be applied toward
improving the capability of the Veterans Health Administration to meet
effectively the treatment and rehabilitation 
needs of severely chronically mentally ill veterans who are eligible 
for Department care. 
(2) Not later than June 1 of each year through 2012, the Secretary 
shall submit to the Committees on Veteransï¿½ Affairs of the 
Senate and House of Representatives a report containing information 
updating the reports submitted under this subsection before 
the submission of such report. 
(Added Pub. L. 104-262, title III, Sec. 335(a), Oct. 9, 1996, 110 
Stat. 3204; amended 
Pub. L. 106-419, title IV, Sec. 402(f), Nov. 1, 2000, 114 Stat. 1863; 
Pub. L. 108- 
170, title IV, Sec. 405(c), Dec. 6, 2003, 117 Stat. 2063; Pub. L. 
110-387, title VIII, 
Sec. 807, Oct. 10, 2008, 122 Stat. 4141.) 

ï¿½ 7322. Breast cancer mammography policy 

(a) The Under Secretary for Health shall develop a national 
policy for the Veterans Health Administration on mammography 
screening for veterans. 
(b) The policy developed under subsection (a) shall- 
(1) specify standards of mammography screening; 
(2) provide recommendations with respect to screening, 
and the frequency of screening, for- 
(A) women veterans who are over the age of 39; and 

Sec. 7323 CH. 73-ORGANIZATION AND FUNCTIONS 882 

(B) veterans, without regard to age, who have clinical 
symptoms, risk factors, or family history of breast cancer; 
and 
(3) provide for clinician discretion. 
(Added Pub. L. 105-114, title II, Sec. 208(a)(1), Nov. 21, 1997, 
111 Stat. 2289.) 
ï¿½ 7323. Required consultations with nurses 

The Under Secretary for Health shall ensure that- 

(1) the director of a geographic service area, in formulating 
policy relating to the provision of patient care, shall consult 
regularly with a senior nurse executive or senior nurse executives; and 
(2) the director of a medical center shall include a registered nurse 
as a member of any committee used at that medical center to provide 
recommendations or decisions on medical 
center operations or policy affecting clinical services, clinical 
outcomes, budget, or resources. 
(Added Pub. L. 106-419, title II, Sec. 201(b)(1), Nov. 1, 2000, 114 
Stat. 1840.) 

ï¿½ 7324. Annual report on use of authorities to enhance retention of 
experienced nurses 

(a) ANNUAL REPORT.-Not later than January 31 each year, 
the Secretary, acting through the Under Secretary for Health, shall 
submit to Congress a report on the use during the preceding year 
of authorities for purposes of retaining experienced nurses in the 
Veterans Health Administration, as follows: 
(1) The authorities under chapter 76 of this title. 
(2) The authority under VA Directive 5102.1, relating to 
the Department of Veterans Affairs nurse qualification standard, 
dated November 10, 1999, or any successor directive. 
(3) Any other authorities available to the Secretary for 
those purposes. 
(b) REPORT ELEMENTS.-Each report under subsection (a) shall 
specify for the period covered by such report, for each Department 
medical facility and for each geographic service area of the 
Department, the following: 
(1) The number of waivers requested under the authority 
referred to in subsection (a)(2), and the number of waivers 
granted under that authority, to promote to the Nurse II grade 
or Nurse III grade under the Nurse Schedule under section 
7404(b)(1) of this title any nurse who has not completed a 
baccalaureate degree in nursing in a recognized school of nursing, 
set forth by age, race, and years of experience of the individuals 
subject to such waiver requests and waivers, as the case 
may be. 
(2) The programs carried out to facilitate the use of nursing 
education programs by experienced nurses, including programs for 
flexible scheduling, scholarships, salary replacement 
pay, and on-site classes. 
(Added Pub. L. 107-135, title I, Sec. 125(a)(1), Jan. 23, 2002, 
115 Stat. 2452.) 


883 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7325 

ï¿½ 7325. Medical emergency preparedness centers 

(a) ESTABLISHMENT OF CENTERS.-(1) The Secretary shall establish four 
medical emergency preparedness centers in accordance 
with this section. Each such center shall be established at a 
Department medical center and shall be staffed by Department 
employees. 
(2) The Under Secretary for Health shall be responsible for 
supervising the operation of the centers established under this 
section. The Under Secretary shall provide for ongoing evaluation 
of the centers and their compliance with the requirements 
of this section. 
(3) The Under Secretary shall carry out the Under Secretaryï¿½s 
functions under paragraph (2) in consultation with the 
Assistant Secretary of Veterans Affairs with responsibility for 
operations, preparedness, security, and law enforcement functions. 
(b) MISSION.-The mission of the centers shall be as follows: 
(1) To carry out research on, and to develop methods of detection, 
diagnosis, prevention, and treatment of injuries, diseases, and 
illnesses arising from the use of chemical, biological, 
radiological, incendiary or other explosive weapons or devices 
posing threats to the public health and safety. 
(2) To provide education, training, and advice to health 
care professionals, including health care professionals outside 
the Veterans Health Administration, through the National Disaster 
Medical System established pursuant to section 2811(b) 
of the Public Health Service Act (42 U.S.C. 300hh-11(b)) or 
through interagency agreements entered into by the Secretary 
for that purpose. 
(3) In the event of a disaster or emergency referred to in 
section 1785(b) of this title, to provide such laboratory, 
epidemiological, medical, or other assistance as the Secretary 
considers appropriate to Federal, State, and local health care 
agencies and personnel involved in or responding to the disaster 
or emergency. 
(c) SELECTION OF CENTERS.-(1) The Secretary shall select the 
sites for the centers on the basis of a competitive selection 
process. 
The Secretary may not designate a site as a location for a center 
under this section unless the Secretary makes a finding under 
paragraph (2) with respect to the proposal for the designation of 
such site. To the maximum extent practicable, the Secretary shall 
ensure the geographic dispersal of the sites throughout the United 
States. Any such center may be a consortium of efforts of more 
than one medical center. 
(2) A finding by the Secretary referred to in paragraph (1) with 
respect to a proposal for designation of a site as a location of a 
center under this section is a finding by the Secretary, upon the 
recommendations of the Under Secretary for Health and the Assistant 
Secretary with responsibility for operations, preparedness, security, 
and law enforcement functions, that the facility or facilities 
submitting the proposal have developed (or may reasonably be 
anticipated 
to develop) each of the following: 

Sec. 7325 CH. 73-ORGANIZATION AND FUNCTIONS 884 

(A) An arrangement with a qualifying medical school and 
a qualifying school of public health (or a consortium of such 
schools) under which physicians and other persons in the 
health field receive education and training through the participating 
Department medical facilities so as to provide those persons with 
training in the detection, diagnosis, prevention, and 
treatment of injuries, diseases, and illnesses induced by exposures 
to chemical and biological substances, radiation, and incendiary or 
other explosive weapons or devices. 
(B) An arrangement with a graduate school specializing in 
epidemiology under which students receive education and 
training in epidemiology through the participating Department 
facilities so as to provide such students with training in the 
epidemiology of contagious and infectious diseases and chemical 
and radiation poisoning in an exposed population. 
(C) An arrangement under which nursing, social work, 
counseling, or allied health personnel and students receive 
training and education in recognizing and caring for conditions 
associated with exposures to toxins through the participating 
Department facilities. 
(D) The ability to attract scientists who have made significant
contributions to the development of innovative approaches 
to the detection, diagnosis, prevention, or treatment of injuries, 
diseases, and illnesses arising from the use of chemical, biological, 
radiological, incendiary or other explosive weapons or devices posing 
threats to the public health and safety. 
(3) For purposes of paragraph (2)(A)- 
(A) a qualifying medical school is an accredited medical 
school that provides education and training in toxicology and 
environmental health hazards and with which one or more of 
the participating Department medical centers is affiliated; and 
(B) a qualifying school of public health is an accredited 
school of public health that provides education and training in 
toxicology and environmental health hazards and with which 
one or more of the participating Department medical centers is 
affiliated. 
(d) RESEARCH ACTIVITIES.-Each center shall conduct research 
on improved medical preparedness to protect the Nation from 
threats in the area of that centerï¿½s expertise. Each center may seek 
research funds from public and private sources for such purpose. 
(e) DISSEMINATION OF RESEARCH PRODUCTS.-(1) The Under 
Secretary for Health and the Assistant Secretary with responsibility 
for operations, preparedness, security, and law enforcement 
functions shall ensure that information produced by the research, 
education and training, and clinical activities of centers established 
under this section is made available, as appropriate, to health-care 
providers in the United States. Dissemination of such information 
shall be made through publications, through programs of continuing 
medical and related education provided through regional 
medical education centers under subchapter VI of chapter 74 of 
this title, and through other means. Such programs of continuing 
medical education shall receive priority in the award of funding. 
(2) The Secretary shall ensure that the work of the centers is 
conducted in close coordination with other Federal departments 

885 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7325 

and agencies and that research products or other information of the 
centers shall be coordinated and shared with other Federal departments 
and agencies. 

(f) COORDINATION OF ACTIVITIES.-The Secretary shall take appropriate 
actions to ensure that the work of each center is carried 
out- 
(1) in close coordination with the Department of Defense, 
the Department of Health and Human Services, and other departments, 
agencies, and elements of the Government charged 
with coordination of plans for United States homeland security; 
and 
(2) after taking into consideration applicable recommendations of the 
working group on the prevention, preparedness, 
and response to bioterrorism and other public health emergencies 
established under section 319F(a) of the Public Health 
Service Act (42 U.S.C. 247d-6(a)) or any other joint interagency 
advisory group or committee designated by the President or 
the Presidentï¿½s designee to coordinate Federal research on 
weapons of mass destruction. 
(g) ASSISTANCE TO OTHER AGENCIES.-The Secretary may provide assistance 
requested by appropriate Federal, State, and local 
civil and criminal authorities in investigations, inquiries, and data 
analyses as necessary to protect the public safety and prevent or 
obviate biological, chemical, or radiological threats. 
(h) DETAIL OF EMPLOYEES FROM OTHER AGENCIES.-Upon approval by the 
Secretary, the Director of a center may request the 
temporary assignment or detail to the center, on a nonreimbursable 
basis, of employees from other departments and agencies of 
the United States who have expertise that would further the mission 
of the center. Any such employee may be so assigned or detailed on a 
nonreimbursable basis pursuant to such a request. 
(i) FUNDING.-(1) Amounts appropriated for the activities of 
the centers under this section shall be appropriated separately 
from amounts appropriated for the Department for medical care. 
(2) In addition to funds appropriated for a fiscal year specifically 
for the activities of the centers pursuant to paragraph (1), the 
Under Secretary for Health shall allocate to such centers from 
other funds appropriated for that fiscal year generally for the 
Department medical services account and the Department medical 
and prosthetics research account such amounts as the Under Secretary 
determines appropriate to carry out the purposes of this section. 
Any determination by the Under Secretary under the preceding sentence 
shall be made in consultation with the Assistant 
Secretary with responsibility for operations, preparedness, security, 
and law enforcement functions. 
(3) There are authorized to be appropriated for the centers 
under this section $20,000,000 for each of fiscal years 2003 through 
2007. 
(Added Pub. L. 107-287, Sec. 2(a)(1), Nov. 7, 2002, 116 Stat. 2024; 
amended Pub. 

L. 110-387, title IX, Sec. 901(a)(8), Oct. 10, 2008, 122 Stat. 4142.) 

Sec. 7326 CH. 73-ORGANIZATION AND FUNCTIONS 886 

ï¿½ 7326. Education and training programs on medical responses to 
consequences of terrorist activities 

(a) EDUCATION PROGRAM.-The Secretary shall carry out a program to 
develop and disseminate a series of model education and 
training programs on the medical responses to the consequences of 
terrorist activities. 
(b) IMPLEMENTING OFFICIAL.-The program shall be carried out 
through the Under Secretary for Health, in consultation with the 
Assistant Secretary of Veterans Affairs with responsibility for 
operations, preparedness, security, and law enforcement functions. 
(c) CONTENT OF PROGRAMS.-The education and training programs developed 
under the program shall be modelled after programs established at the 
F. Edward Hebert School of Medicine of 
the Uniformed Services University of the Health Sciences and shall 
include, at a minimum, training for health care professionals in the 
following: 

(1) Recognition of chemical, biological, radiological, incendiary, or 
other explosive agents, weapons, or devices that may 
be used in terrorist activities. 
(2) Identification of the potential symptoms of exposure to 
those agents. 
(3) Understanding of the potential long-term health consequences, 
including psychological effects, resulting from exposure to those 
agents, weapons, or devices. 
(4) Emergency treatment for exposure to those agents, 
weapons, or devices. 
(5) An appropriate course of followup treatment, supportive care, 
and referral. 
(6) Actions that can be taken while providing care for exposure to 
those agents, weapons, or devices to protect against 
contamination, injury, or other hazards from such exposure. 
(7) Information on how to seek consultative support and to 
report suspected or actual use of those agents. 
(d) POTENTIAL TRAINEES.-In designing the education and 
training programs under this section, the Secretary shall ensure 
that different programs are designed for health-care professionals 
in Department medical centers. The programs shall be designed to 
be disseminated to health professions students, graduate health 
and medical education trainees, and health practitioners in a 
variety of fields. 
(e) CONSULTATION.-In establishing education and training 
programs under this section, the Secretary shall consult with 
appropriate representatives of accrediting, certifying, and 
coordinating organizations in the field of health professions 
education. 
(Added Pub. L. 107-287, Sec. 3(a)(1), Nov. 7, 2002, 116 Stat. 
2027.) 

ï¿½ 7327. Centers for research, education, and clinical activities 
on complex multi-trauma associated with combat injuries 

(a) PURPOSE.-The purpose of this section is to provide for the 
improvement of the provision of health care services and related 
rehabilitation and education services to eligible veterans suffering 

887 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7327 

from complex multi-trauma associated with combat injuries 
through- 

(1) the development of improved models and systems for 
the furnishing by the Department of health care, rehabilitation, 
and education services to veterans; 
(2) the conduct of research to support the provision of such 
services in accordance with the most current evidence on 
multi-trauma injuries; and 
(3) the education and training of health care personnel of 
the Department with respect to the provision of such services. 
(b) DESIGNATION OF CENTERS.-(1) The Secretary shall designate an 
appropriate number of cooperative centers for clinical 
care, consultation, research, and education activities on combat 
injuries. 
(2) Each center designated under paragraph (1) shall function 
as a center for- 
(A) research on the long-term effects of injuries sustained 

as a result of combat in order to support the provision of services 
for such injuries in accordance with the most current evidence on 
complex multi-trauma; 
(B) the development of rehabilitation methodologies for 
treating individuals with complex multi-trauma; and 
(C) the continuous and consistent coordination of care from 
the point of referral throughout the rehabilitation process and 
ongoing follow-up after return to home and community. 
(3) The Secretary shall designate one of the centers designated 
under paragraph (1) as the lead center for activities referred to in 
that paragraph. As the lead center for such activities, such center 
shall- 
(A) develop and provide periodic review of research priorities, and 
implement protocols, to ensure that projects contribute to the 
activities of the centers designated under paragraph (1); 
(B) oversee the coordination of the professional and technical 
activities of such centers to ensure the quality and validity of the 
methodologies and statistical services for research 
project leaders; 
(C) develop and ensure the deployment of an efficient and 
cost-effective data management system for such centers; 
(D) develop and distribute educational materials and products to 
enhance the evaluation and care of individuals with 
combat injuries by medical care providers of the Department 
who are not specialized in the assessment and care of complex 
multi-trauma; 
(E) develop educational materials for individuals suffering 
from combat injuries and for their families; and 
(F) serve as a resource for the clinical and research 
infrastructure of such centers by disseminating clinical outcomes 
and research findings to improve clinical practice. 
(4) The Secretary shall designate centers under paragraph (1) 
upon the recommendation of the Under Secretary for Health. 
(5) The Secretary may designate a center under paragraph (1) 
only if the center meets the requirements of subsection (c). 

Sec. 7327 CH. 73-ORGANIZATION AND FUNCTIONS 888 

(c) REQUIREMENTS FOR CENTERS.-To be designated as a center 
under this section, a facility shall- 
(1) be a regional lead center for the care of traumatic brain 
injury; 
(2) be located at a tertiary care medical center and have 
on-site availability of primary and subspecialty medical services 
relating to complex multi-trauma; 
(3) have, or have the capacity to develop, the capability of 
managing impairments associated with combat injuries; 
(4) be affiliated with a school of medicine; 
(5) have, or have experience with, participation in clinical 
research trials; 
(6) provide amputation care and rehabilitation; 
(7) have pain management programs; 
(8) provide comprehensive brain injury rehabilitation; and 
(9) provide comprehensive general rehabilitation. 
(d) ADDITIONAL RESOURCES.-The Secretary shall provide each 
center designated under this section such resources as the 
Secretary determines to be required by such center to achieve 
adequate capability of managing individuals with complex multi-
trauma, including- 
(1) the upgrading of blind rehabilitation services by employing 
or securing the services of blind rehabilitation specialists; 
(2) employing or securing the services of occupational 
therapists with blind rehabilitation training; 
(3) employing or securing the services of additional mental 
health services providers; and 
(4) employing or securing additional rehabilitation nursing 
staff to meet care needs. 
(e) COOPERATION WITH DEPARTMENT OF DEFENSE.-(1) The 
Secretary of Veterans Affairs may assist the Secretary of Defense 
in the care of members of the Armed Forces with complex multi-
trauma at military treatment facilities by- 
(A) making available, in a manner that the Secretary of 
Veterans Affairs considers appropriate, certified rehabilitation 
registered nurses of the Department of Veterans Affairs to 
such facilities to assess and coordinate the care of such members; 
and 
(B) making available, in a manner that the Secretary of 
Veterans Affairs considers appropriate, blind rehabilitation 
specialists of the Department of Veterans Affairs to such facilities 
to consult with the medical staff of such facilities on the 
special needs of such members who have visual impairment as 
a consequence of combat injury. 
(2) Assistance shall be provided under this subsection through 
agreements for the sharing of health-care resources under section 
8111 of this title. 
(f) AWARD OF FUNDING.-Centers designated under this section 
may compete for the award of funding from amounts appropriated 
for the Department for medical and prosthetics research. 
(g) DISSEMINATION OF INFORMATION.-(1) The Under Secretary 
for Health shall ensure that information produced by the centers 
designated under this section that may be useful for other activi

889 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7328 

ties of the Veterans Health Administration is disseminated 
throughout the Administration. 

(2) Information shall be disseminated under this subsection 
through publications, through programs of continuing medical and 
related education provided through regional medical education centers 
under subchapter VI of chapter 74 of this title, and through 
other means. 
(h) NATIONAL OVERSIGHT.-The Under Secretary for Health 
shall designate an appropriate officer to oversee the operation of 
the centers designated under this section and provide for periodic 
evaluation of the centers. 
(i) AUTHORIZATION OF APPROPRIATIONS.-(1) There are authorized to be 
appropriated to the Department of Veterans Affairs for 
the centers designated under this section amounts as follows: 
(A) $7,000,000 for fiscal year 2005. 
(B) $8,000,000 for each of fiscal years 2006 through 2008. 
(2) In addition to amounts authorized to be appropriated by 
paragraph (1) for a fiscal year, the Under Secretary for Health may 
allocate to each center designated under this section, from other 
funds authorized to be appropriated for such fiscal year for the 
Department generally for medical and for medical and prosthetic 
research, such amounts as the Under Secretary for Health determines 
appropriate to carry out the purposes of this section. 
(Added Pub. L. 108-422, title III, Sec. 302(a)(1), Nov. 30, 2004, 
118 Stat. 2383.) 

ï¿½ 7328. Medical preparedness centers 

(a) ESTABLISHMENT OF CENTERS.-(1) The Secretary shall establish 
four medical emergency preparedness centers in accordance 
with this section. Each such center shall be established at a 
Department medical center and shall be staffed by Department employees. 
(2) The Under Secretary for Health shall be responsible for 
supervising the operation of the centers established under this 
section. The Under Secretary shall provide for ongoing evaluation of 
the centers and their compliance with the requirements 
of this section. 
(3) The Under Secretary shall carry out the Under Secretaryï¿½s 
functions under paragraph (2) in consultation with the 
Assistant Secretary of Veterans Affairs with responsibility for 
operations, preparedness, security, and law enforcement functions. 
(b) MISSION.-The mission of the centers shall be as follows: 
(1) To carry out research on, and to develop methods of detection, 
diagnosis, prevention, and treatment of injuries, diseases, and 
illnesses arising from the use of chemical, biological, 
radiological, incendiary or other explosive weapons or devices 
posing threats to the public health and safety. 
(2) To provide education, training, and advice to health 
care professionals, including health care professionals outside 
the Veterans Health Administration, through the National Disaster 
Medical System established pursuant to section 2811(b) 
of the Public Health Service Act (42 U.S.C. 300hh-11(b)) or 
through interagency agreements entered into by the Secretary 
for that purpose. 

Sec. 7328 CH. 73-ORGANIZATION AND FUNCTIONS 890 

(3) In the event of a disaster or emergency referred to in 
section 1785(b) of this title, to provide such laboratory, 
epidemiological, medical, or other assistance as the Secretary 
considers appropriate to Federal, State, and local health care 
agencies and personnel involved in or responding to the disaster or 
emergency. 
(c) SELECTION OF CENTERS.-(1) The Secretary shall select the 
sites for the centers on the basis of a competitive selection process. 
The Secretary may not designate a site as a location for a center 
under this section unless the Secretary makes a finding under 
paragraph (2) with respect to the proposal for the designation of 
such site. To the maximum extent practicable, the Secretary shall 
ensure the geographic dispersal of the sites throughout the United 
States. Any such center may be a consortium of efforts of more 
than one medical center. 
(2) A finding by the Secretary referred to in paragraph (1) with 
respect to a proposal for designation of a site as a location of a 
center under this section is a finding by the Secretary, upon the 
recommendations of the Under Secretary for Health and the Assistant 
Secretary with responsibility for operations, preparedness, security, 
and law enforcement functions, that the facility or facilities 
submitting the proposal have developed (or may reasonably be anticipated 
to develop) each of the following: 
(A) An arrangement with a qualifying medical school and 
a qualifying school of public health (or a consortium of such 
schools) under which physicians and other persons in the 
health field receive education and training through the participating 
Department medical facilities so as to provide those persons with 
training in the detection, diagnosis, prevention, and 
treatment of injuries, diseases, and illnesses induced by exposures
to chemical and biological substances, radiation, and incendiary or
other explosive weapons or devices. 
(B) An arrangement with a graduate school specializing in 
epidemiology under which students receive education and 
training in epidemiology through the participating Department 
facilities so as to provide such students with training in the 
epidemiology of contagious and infectious diseases and chemical 
and radiation poisoning in an exposed population. 
(C) An arrangement under which nursing, social work, 
counseling, or allied health personnel and students receive 
training and education in recognizing and caring for conditions 
associated with exposures to toxins through the participating 
Department facilities. 
(D) The ability to attract scientists who have made significant 
contributions to the development of innovative approaches 
to the detection, diagnosis, prevention, or treatment of injuries, 
diseases, and illnesses arising from the use of chemical, biological, 
radiological, incendiary or other explosive weapons or devices 
posing threats to the public health and safety. 
(3) For purposes of paragraph (2)(A)- 
(A) a qualifying medical school is an accredited medical 
school that provides education and training in toxicology and 
environmental health hazards and with which one or more of 
the participating Department medical centers is affiliated; and 

891 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7328 

(B) a qualifying school of public health is an accredited 
school of public health that provides education and training in 
toxicology and environmental health hazards and with which 
one or more of the participating Department medical centers is 
affiliated. 
(d) RESEARCH ACTIVITIES.-Each center shall conduct research 
on improved medical preparedness to protect the Nation from 
threats in the area of that centerï¿½s expertise. Each center may seek 
research funds from public and private sources for such purpose. 
(e) DISSEMINATION OF RESEARCH PRODUCTS.-(1) The Under 
Secretary for Health and the Assistant Secretary with responsibility 
for operations, preparedness, security, and law enforcement 
functions shall ensure that information produced by the research, 
education and training, and clinical activities of centers established 
under this section is made available, as appropriate, to health-care 
providers in the United States. Dissemination of such information 
shall be made through publications, through programs of continuing 
medical and related education provided through regional 
medical education centers under subchapter VI of chapter 74 of 
this title, and through other means. Such programs of continuing 
medical education shall receive priority in the award of funding. 
(2) The Secretary shall ensure that the work of the centers 
is conducted in close coordination with other Federal departments and 
agencies and that research products or other information of the 
centers shall be coordinated and shared with 
other Federal departments and agencies. 
(f) COORDINATION OF ACTIVITIES.-The Secretary shall take appropriate 
actions to ensure that the work of each center is carried 
out- 
(1) in close coordination with the Department of Defense, 
the Department of Health and Human Services, and other departments, 
agencies, and elements of the Government charged 
with coordination of plans for United States homeland security; 
and 
(2) after taking into consideration applicable recommendations of the 
working group on the prevention, preparedness, 
and response to bioterrorism and other public health emergencies 
established under section 319F(a) of the Public Health 
Service Act (42 U.S.C. 247d-6(a)) or any other joint interagency 
advisory group or committee designated by the President or 
the Presidentï¿½s designee to coordinate Federal research on 
weapons of mass destruction. 
(g) ASSISTANCE TO OTHER AGENCIES.-The Secretary may provide assistance 
requested by appropriate Federal, State, and local 
civil and criminal authorities in investigations, inquiries, and data 
analyses as necessary to protect the public safety and prevent or 
obviate biological, chemical, or radiological threats. 
(h) DETAIL OF EMPLOYEES FROM OTHER AGENCIES.-Upon approval by the 
Secretary, the Director of a center may request the 
temporary assignment or detail to the center, on a nonreimbursable 
basis, of employees from other departments and agencies of 
the United States who have expertise that would further the mission 
of the center. Any such employee may be so assigned or detailed on a 
nonreimbursable basis pursuant to such a request. 

Sec. 7329 CH. 73-ORGANIZATION AND FUNCTIONS 892 

(i) FUNDING.-(1) There are authorized to be appropriated for 
the centers under this section $10,000,000 for each of fiscal years 
2005 through 2007. 
(2) In addition to any amounts appropriated for a fiscal year 
specifically for the activities of the centers pursuant to paragraph 
(1), the Under Secretary for Health shall allocate to the centers 
from other funds appropriated for that fiscal year generally for the 
Department medical services account and the Department medical 
and prosthetic research account such amounts as the Under Secretary
determines necessary in order to carry out the purposes of 
this section. 
(Added Pub. L. 108-422, title III, Sec. 302(c)(1), Nov. 30, 2004, 118 
Stat. 2386; 
amended Pub. L. 110-387, title IX, Sec. 901(a)(8), Oct. 10, 2008, 122 
Stat. 4142.) 

ï¿½ 7329. Parkinsonï¿½s Disease research, education, and clinical 
centers 

(a) ESTABLISHMENT OF CENTERS.-(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate 
not less than six Department health-care facilities as the locations 
for centers of Parkinsonï¿½s Disease research, education, and clinical 
activities. 
(2) Subject to the availability of appropriations for such purpose, the 
Secretary shall establish and operate centers of Parkinsonï¿½s Disease 
research, education, and clinical activities centers at 
the locations designated pursuant to paragraph (1). 
(b) CRITERIA FOR DESIGNATION OF FACILITIES.-(1) In designating 
Department health-care facilities for centers under subsection (a), the 
Secretary, upon the recommendation of the Under 
Secretary for Health, shall assure appropriate geographic distribution 
of such facilities. 
(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center of Parkinsonï¿½s Disease research, 
education, and clinical activities pursuant to subsection 
(a)(1) each Department health-care facility that as of January 1, 
2005, was operating a Parkinsonï¿½s Disease research, education, and 
clinical center. 
(3) The Secretary may not under subsection (a) designate a facility 
described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such 
facility- 
(A) does not meet the requirements of subsection (c); or 
(B) has not demonstrated- 
(i) effectiveness in carrying out the established purposes of such 
center; or 
(ii) the potential to carry out such purposes effectively 
in the reasonably foreseeable future. 
(c) REQUIREMENTS FOR DESIGNATION.-(1) The Secretary may 
not designate a Department health-care facility as a location for a 
center under subsection (a) unless the peer review panel established 
under subsection (d) has determined under that subsection 
that the proposal submitted by such facility as a location for a new 
center under subsection (a) is among those proposals that meet the 
highest competitive standards of scientific and clinical merit. 

893 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7329 

(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for 
Health) determines that the facility has (or may reasonably be
anticipated to develop) each of the following: 
(A) An arrangement with an accredited medical school that 
provides education and training in neurology and with which 
the Department health-care facility is affiliated under which 
residents receive education and training in innovative diagnosis and 
treatment of chronic neurodegenerative diseases and 
movement disorders, including Parkinsonï¿½s Disease. 
(B) The ability to attract the participation of scientists who 
are capable of ingenuity and creativity in health-care research 
efforts. 
(C) An advisory committee composed of veterans and appropriate 
health-care and research representatives of the Department health-care 
facility and of the affiliated school or 
schools to advise the directors of such facility and such center 
on policy matters pertaining to the activities of the center during the 
period of the operation of such center. 
(D) The capability to conduct effectively evaluations of the 
activities of such center. 
(E) The capability to coordinate (as part of an integrated 
national system) education, clinical, and research activities 
within all facilities with such centers. 
(F) The capability to jointly develop a consortium of providers with 
interest in treating neurodegenerative diseases, including Parkinsonï¿½s 
Disease and other movement disorders, at 
facilities without centers established under subsection (a) in 
order to ensure better access to state-of-the-art diagnosis, care, 
and education for neurodegenerative disorders throughout the 
health-care system of the Department. 
(G) The capability to develop a national repository in the 
health-care system of the Department for the collection of data 
on health services delivered to veterans seeking care for 
neurodegenerative diseases, including Parkinsonï¿½s Disease, and 
other movement disorders. 
(d) PEER REVIEW PANEL.-(1) The Under Secretary for Health 
shall establish a panel to assess the scientific and clinical merit of 
proposals that are submitted to the Secretary for the establishment 
of centers under this section. 
(2)(A) The membership of the panel shall consist of experts in 
neurodegenerative diseases, including Parkinsonï¿½s Disease and 
other movement disorders. 

(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C). 
(C) Of the members first appointed to the panel, one half shall 
be appointed for a period of three years and one half shall be appointed 
for a period of two years, as designated by the Under Secretary at the 
time of appointment. 
(3) The panel shall review each proposal submitted to the 
panel by the Under Secretary and shall submit its views on the relative 
scientific and clinical merit of each such proposal to the 
Under Secretary. 

Sec. 7330 CH. 73-ORGANIZATION AND FUNCTIONS 894 

(4) The panel shall not be subject to the Federal Advisory Committee Act. 
(e) PRIORITY OF FUNDING.-Before providing funds for the operation of a 
center designated under subsection (a) at a Department 
health-care facility other than at a facility designated pursuant to 
subsection (b)(2), the Secretary shall ensure that each Parkinsonï¿½s 
Disease center at a facility designated pursuant to subsection (b)(2) 
is receiving adequate funding to enable that center to function 
effectively in the areas of Parkinsonï¿½s Disease research, education, 
and clinical activities. 
(f) AUTHORIZATION OF APPROPRIATIONS.-There are authorized 
to be appropriated such sums as may be necessary for the support 
of the research and education activities of the centers established 
pursuant to subsection (a). The Under Secretary for Health shall 
allocate to such centers from other funds appropriated generally for 
the Department medical services account and medical and prosthetics 
research account, as appropriate, such amounts as the 
Under Secretary for Health determines appropriate. 
(g) AWARD COMPETITIONS.-Activities of clinical and scientific 
investigation at each center established under subsection (a) shall 
be eligible to compete for the award of funding from funds appropriated 
for the Department medical and prosthetics research account. Such 
activities shall receive priority in the award of funding 
from such account insofar as funds are awarded to projects for research 
in Parkinsonï¿½s Disease and other movement disorders. 
(Added Pub. L. 109-461, title II, Sec. 209(a)(1), Dec. 22, 2006, 120 
Stat. 3414.) 

ï¿½ 7330. Multiple sclerosis centers of excellence 

(a) ESTABLISHMENT OF CENTERS.-(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate 
not less than two Department health-care facilities as the locations 
for multiple sclerosis centers of excellence. 
(2) Subject to the availability of appropriations for such purpose, the 
Secretary shall establish and operate multiple sclerosis 
centers of excellence at the locations designated pursuant to paragraph 
(1). 
(b) CRITERIA FOR DESIGNATION OF FACILITIES.-(1) In designating Department 
health-care facilities for centers under subsection (a), the Secretary, 
upon the recommendation of the Under 
Secretary for Health, shall assure appropriate geographic distribution 
of such facilities. 
(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center pursuant to subsection (a)(1) 
each Department health-care facility that as of January 1, 2005, 
was operating a multiple sclerosis center of excellence. 
(3) The Secretary may not under subsection (a) designate a facility 
described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such facility- 
(A) does not meet the requirements of subsection (c); or 
(B) has not demonstrated- 
(i) effectiveness in carrying out the established purposes of such 
center; or 

895 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7330 

(ii) the potential to carry out such purposes effectively 
in the reasonably foreseeable future. 
(c) REQUIREMENTS FOR DESIGNATION.-(1) The Secretary may 
not designate a Department health-care facility as a location for a 
center under subsection (a) unless the peer review panel established 
under subsection (d) has determined under that subsection 
that the proposal submitted by such facility as a location for a new 
center under subsection (a) is among those proposals that meet the 
highest competitive standards of scientific and clinical merit. 
(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for 
Health) determines that the facility has (or may reasonably be 
anticipated to develop) each of the following: 
(A) An arrangement with an accredited medical school that 
provides education and training in neurology and with which 
the Department health-care facility is affiliated under which 
residents receive education and training in innovative diagnosis 
and treatment of autoimmune diseases affecting the central nervous 
system, including multiple sclerosis. 
(B) The ability to attract the participation of scientists who 
are capable of ingenuity and creativity in health-care research 
efforts. 
(C) An advisory committee composed of veterans and appropriate 
health-care and research representatives of the Department health-
care facility and of the affiliated school or 
schools to advise the directors of such facility and such center 
on policy matters pertaining to the activities of the center during 
the period of the operation of such center. 
(D) The capability to conduct effectively evaluations of the 
activities of such center. 
(E) The capability to coordinate (as part of an integrated 
national system) education, clinical, and research activities 
within all facilities with such centers. 
(F) The capability to jointly develop a consortium of providers with 
interest in treating multiple sclerosis at facilities 
without such centers in order to ensure better access to state-
of-the-art diagnosis, care, and education for autoimmune disease 
affecting the central nervous system throughout the 
health-care system of the Department. 
(G) The capability to develop a national repository in the 
health-care system of the Department for the collection of data 
on health services delivered to veterans seeking care for autoimmune 
disease affecting the central nervous system. 
(d) PEER REVIEW PANEL.-(1) The Under Secretary for Health 
shall establish a panel to assess the scientific and clinical merit of 
proposals that are submitted to the Secretary for the establishment 
of centers under this section. 
(2)(A) The membership of the panel shall consist of experts in 
autoimmune disease affecting the central nervous system. 

(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C). 
(C) Of the members first appointed to the panel, one half shall 
be appointed for a period of three years and one half shall be ap

Sec. 7330A CH. 73-ORGANIZATION AND FUNCTIONS 896 

pointed for a period of two years, as designated by the Under Secretary 
at the time of appointment. 

(3) The panel shall review each proposal submitted to the 
panel by the Under Secretary and shall submit its views on the relative
scientific and clinical merit of each such proposal to the 
Under Secretary. 
(4) The panel shall not be subject to the Federal Advisory Committee Act. 
(e) PRIORITY OF FUNDING.-Before providing funds for the operation of a 
center designated under subsection (a) at a Department 
health-care facility other than at a facility designated pursuant to 
subsection (b)(2), the Secretary shall ensure that each multiple 
sclerosis center at a facility designated pursuant to subsection 
(b)(2) is receiving adequate funding to enable that center to function 
effectively in the areas of multiple sclerosis research, education, 
and clinical activities. 
(f) AUTHORIZATION OF APPROPRIATIONS.-There are authorized 
to be appropriated such sums as may be necessary for the support 
of the research and education activities of the centers established 
pursuant to subsection (a). The Under Secretary for Health shall 
allocate to such centers from other funds appropriated generally for 
the Department medical services account and medical and prosthetics 
research account, as appropriate, such amounts as the 
Under Secretary for Health determines appropriate. 
(g) AWARD COMPETITIONS.-Activities of clinical and scientific 
investigation at each center established under subsection (a) shall 
be eligible to compete for the award of funding from funds appropriated 
for the Department medical and prosthetics research account. Such 
activities shall receive priority in the award of funding 
from such account insofar as funds are awarded to projects for research 
in multiple sclerosis and other neurodegenerative disorders. 
(Added Pub. L. 109-461, title II, Sec. 209(a)(1), Dec. 22, 2006, 120 
Stat. 3416.) 

ï¿½ 7330A. Epilepsy centers of excellence 

(a) ESTABLISHMENT OF CENTERS.-(1) Not later than 120 days 
after the date of the enactment of the Veteransï¿½ Mental Health and 
Other Care Improvements Act of 2008, the Secretary shall designate at 
least four but not more than six Department health care 
facilities as locations for epilepsy centers of excellence for the 
Department. 
(2) Of the facilities designated under paragraph (1), not less 
than two shall be centers designated under section 7327 of this 
title. 
(3) Of the facilities designated under paragraph (1), not less 
than two shall be facilities that are not centers designated under 
section 7327 of this title. 
(4) Subject to the availability of appropriations for such purpose, 
the Secretary shall establish and operate an epilepsy center 
of excellence at each location designated under paragraph (1). 
(b) DESIGNATION OF FACILITIES.-(1) In designating locations 
for epilepsy centers of excellence under subsection (a), the Secretary 
shall solicit proposals from Department health care facilities 
seeking designation as a location for an epilepsy center of excellence. 

897 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7330A 

(2) The Secretary may not designate a facility as a location for 
an epilepsy center of excellence under subsection (a) unless the 
peer review panel established under subsection (c) has determined 
under that subsection that the proposal submitted by such facility 
seeking designation as a location for an epilepsy center of excellence
is among those proposals that meet the highest competitive 
standards of scientific and clinical merit. 
(3) In choosing from among the facilities meeting the requirements of 
paragraph (2), the Secretary shall also consider appropriate geographic 
distribution when designating the epilepsy centers of excellence under 
subsection (a). 
(c) PEER REVIEW PANEL.-(1) The Under Secretary for Health 
shall establish a peer review panel to assess the scientific and 
clinical merit of proposals that are submitted to the Secretary for the 
designation of epilepsy centers of excellence under this section. 
(2)(A) The membership of the peer review panel shall consist 
of experts on epilepsy, including post-traumatic epilepsy. 

(B) Members of the peer review panel shall serve for a period 
of no longer than two years, except as specified in subparagraph 
(C). 
(C) Of the members first appointed to the panel, one half shall 
be appointed for a period of three years and one half shall be 
appointed for a period of two years, as designated by the Under 
Secretary at the time of appointment. 
(3) The peer review panel shall review each proposal submitted 
to the panel by the Under Secretary for Health and shall submit 
its views on the relative scientific and clinical merit of each such 
proposal to the Under Secretary. 
(4) The peer review panel shall, in conjunction with the national 
coordinator designated under subsection (e), conduct regular 
evaluations of each epilepsy center of excellence established and 
operated under subsection (a) to ensure compliance with the 
requirements of this section. 
(5) The peer review panel shall not be subject to the Federal 
Advisory Committee Act. 
(d) EPILEPSY CENTER OF EXCELLENCE DEFINED.-In this section, the term 
ï¿½ï¿½epilepsy center of excellenceï¿½ï¿½ means a health care 
facility that has (or in the foreseeable future can develop) the 
necessary capacity to function as a center of excellence in research, 
education, and clinical care activities in the diagnosis and treatment 
of epilepsy and has (or may reasonably be anticipated to develop) 
each of the following: 
(1) An affiliation with an accredited medical school that 
provides education and training in neurology, including an arrangement 
with such school under which medical residents receive education and 
training in the diagnosis and treatment of 
epilepsy (including neurosurgery). 
(2) The ability to attract the participation of scientists who 
are capable of ingenuity and creativity in health care research 
efforts. 
(3) An advisory committee composed of veterans and appropriate health 
care and research representatives of the facility and of the affiliated 
school or schools to advise the directors 
of such facility and such center on policy matters pertaining to 

Sec. 7330A CH. 73-ORGANIZATION AND FUNCTIONS 898 

the activities of the center during the period of the operation 
of such center. 

(4) The capability to conduct effectively evaluations of the 
activities of such center. 
(5) The capability to assist in the expansion of the Departmentï¿½s use 
of information systems and databases to improve 
the quality and delivery of care for veterans enrolled within 
the Departmentï¿½s health care system. 
(6) The capability to assist in the expansion of the Department 
telehealth program to develop, transmit, monitor, and review 
neurological diagnostic tests. 
(7) The ability to perform epilepsy research, education, and 
clinical care activities in collaboration with Department medical 
facilities that have centers for research, education, and 
clinical care activities on complex multi-trauma associated 
with combat injuries established under section 7327 of this 
title. 
(e) NATIONAL COORDINATOR FOR EPILEPSY PROGRAMS.-(1) To 
assist the Secretary and the Under Secretary for Health in carrying 
out this section, the Secretary shall designate an individual 
in the Veterans Health Administration to act as a national coordinator 
for epilepsy programs of the Veterans Health Administration. 
(2) The duties of the national coordinator for epilepsy programs 
shall include the following: 
(A) To supervise the operation of the centers established 
pursuant to this section. 
(B) To coordinate and support the national consortium of 
providers with interest in treating epilepsy at Department 
health care facilities lacking such centers in order to ensure 
better access to state-of-the-art diagnosis, research, clinical 
care, and education for traumatic brain injury and epilepsy 
throughout the health care system of the Department. 
(C) To conduct, in conjunction with the peer review panel 
established under subsection (c), regular evaluations of the epilepsy 
centers of excellence to ensure compliance with the requirements of 
this section. 
(D) To coordinate (as part of an integrated national system) education, 
clinical care, and research activities within all 
facilities with an epilepsy center of excellence. 
(E) To develop jointly a national consortium of providers 
with interest in treating epilepsy at Department health care 
facilities lacking an epilepsy center of excellence in order to ensure 
better access to state-of-the-art diagnosis, research, clinical care, 
and education for traumatic brain injury and epilepsy 
throughout the health care system of the Department. Such 
consortium should include a designated epilepsy referral clinic 
in each Veterans Integrated Service Network. 
(3) In carrying out duties under this subsection, the national 
coordinator for epilepsy programs shall report to the official of the 
Veterans Health Administration responsible for neurology. 
(f) AUTHORIZATION OF APPROPRIATIONS.-(1) There are authorized to be 
appropriated $6,000,000 for each of fiscal years 2009 
through 2013 for the support of the clinical care, research, and edu

899 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7332 

cation activities of the epilepsy centers of excellence established 
and operated pursuant to subsection (a)(2). 

(2) There are authorized to be appropriated for each fiscal year 
after fiscal year 2013 such sums as may be necessary for the support 
of the clinical care, research, and education activities of the 
epilepsy centers of excellence established and operated pursuant to 
subsection (a)(2). 
(3) The Secretary shall ensure that funds for such centers are 
designated for the first three years of operation as a special purpose 
program for which funds are not allocated through the Veterans 
Equitable Resource Allocation system. 
(4) In addition to amounts authorized to be appropriated under 
paragraphs (1) and (2) for a fiscal year, the Under Secretary for 
Health shall allocate to such centers from other funds appropriated 
generally for the Department medical services account and medical 
and prosthetics research account, as appropriate, such amounts as 
the Under Secretary for Health determines appropriate. 
(5) In addition to amounts authorized to be appropriated under 
paragraphs (1) and (2) for a fiscal year, there are authorized to be 
appropriated such sums as may be necessary to fund the national 
coordinator established by subsection (e). 
(Added Pub. L. 110-387, title IV, Sec. 404(a), Oct. 10, 2008, 122 
Stat. 4124.) 

SUBCHAPTER III-PROTECTION OF PATIENT RIGHTS 

ï¿½ 7331. Informed consent 

The Secretary, upon the recommendation of the Under Secretary for 
Health and pursuant to the provisions of section 7334 of 
this title, shall prescribe regulations establishing procedures to 
ensure that all medical and prosthetic research carried out and, to 
the maximum extent practicable, all patient care furnished under 
this title shall be carried out only with the full and informed 
consent of the patient or subject or, in appropriate cases, a 
representative thereof. 

(Added Pub. L. 94-581, title I, Sec. 111(a)(1), Oct. 21, 1976, 90 
Stat. 2849, Sec. 4131; 
renumbered Sec. 7331 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(A), 
402(d)(1), 403(a)(1), May 7, 1991, 105 Stat. 221, 239; Pub. L. 
102-405, title III, Sec. 
302(c)(1), Oct. 9, 1992, 106 Stat. 1984.) 

ï¿½ 7332. Confidentiality of certain medical records 

(a)(1) Records of the identity, diagnosis, prognosis, or treatment
of any patient or subject which are maintained in connection 
with the performance of any program or activity (including education, 
training, treatment, rehabilitation, or research) relating to 
drug abuse, alcoholism or alcohol abuse, infection with the human 
immunodeficiency virus, or sickle cell anemia which is carried out 
by or for the Department under this title shall, except as provided 
in subsections (e) and (f), be confidential, and (section 5701 of 
this 
title to the contrary notwithstanding) such records may be disclosed
only for the purposes and under the circumstances expressly 
authorized under subsection (b). 

(2) Paragraph (1) prohibits the disclosure to any person or entity 
other than the patient or subject concerned of the fact that a 

Sec. 7332 CH. 73-ORGANIZATION AND FUNCTIONS 900 

special written consent is required in order for such records to be 
disclosed. 

(b)(1) The content of any record referred to in subsection (a) 
may be disclosed by the Secretary in accordance with the prior 
written consent of the patient or subject with respect to whom such 
record is maintained, but only to such extent, under such 
circumstances, and for such purposes as may be allowed in regulations 
prescribed by the Secretary. 

(2) Whether or not any patient or subject, with respect to 
whom any given record referred to in subsection (a) is maintained, 
gives written consent, the content of such record may be disclosed 
by the Secretary as follows: 
(A) To medical personnel to the extent necessary to meet 
a bona fide medical emergency. 
(B) To qualified personnel for the purpose of conducting 
scientific research, management audits, financial audits, or 
program evaluation, but such personnel may not identify, directly or 
indirectly, any individual patient or subject in any report of such 
research, audit, or evaluation, or otherwise disclose patient or 
subject identities in any manner. 
(C)(i) In the case of any record which is maintained in connection 
with the performance of any program or activity relating to infection 
with the human immunodeficiency virus, to a 
Federal, State, or local public-health authority charged under 
Federal or State law with the protection of the public health, 
and to which Federal or State law requires disclosure of such 
record, if a qualified representative of such authority has made 
a written request that such record be provided as required pursuant 
to such law for a purpose authorized by such law. 

(ii) A person to whom a record is disclosed under this paragraph may 
not redisclose or use such record for a purpose 
other than that for which the disclosure was made. 
(D) If authorized by an appropriate order of a court of competent 
jurisdiction granted after application showing good 
cause therefor. In assessing good cause the court shall weigh 
the public interest and the need for disclosure against the injury 
to the patient or subject, to the physician-patient relationship, 
and to the treatment services. Upon the granting of such 
order, the court, in determining the extent to which any disclosure 
of all or any part of any record is necessary, shall impose 
appropriate safeguards against unauthorized disclosure. 
(E) To an entity described in paragraph (1)(B) of section 
5701(k) of this title, but only to the extent authorized by such 
section. 
(3) In the event that the patient or subject who is the subject 
of any record referred to in subsection (a) is deceased, the content 
of any such record may be disclosed by the Secretary only upon the 
prior written request of the next of kin, executor, administrator, or 
other personal representative of such patient or subject and only if 
the Secretary determines that such disclosure is necessary for such 
survivor to obtain benefits to which such survivor may be entitled, 
including the pursuit of legal action, but then only to the extent, 
under such circumstances, and for such purposes as may be al

901 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7332 

lowed in regulations prescribed pursuant to section 7334 of this 
title. 

(c) Except as authorized by a court order granted under subsection 
(b)(2)(D), no record referred to in subsection (a) may be 
used to initiate or substantiate any criminal charges against, or to 
conduct any investigation of, a patient or subject. 
(d) The prohibitions of this section shall continue to apply to 
records concerning any person who has been a patient or subject, 
irrespective of whether or when such person ceases to be a patient. 
(e) The prohibitions of this section shall not prevent any interchange 
of records- 
(1) within and among those components of the Department 
furnishing health care to veterans, or determining eligibility 
for benefits under this title; or 
(2) between such components furnishing health care to veterans and 
the Armed Forces. 
(f)(1) Notwithstanding subsection (a) but subject to paragraph 
(2), a physician or a professional counselor may disclose information 
or records indicating that a patient or subject is infected with 
the human immunodeficiency virus if the disclosure is made to (A) 
the spouse of the patient or subject, or (B) to an individual whom 
the patient or subject has, during the process of professional 
counseling or of testing to determine whether the patient or subject is 
infected with such virus, identified as being a sexual partner of 
such patient or subject. 

(2)(A) A disclosure under paragraph (1) may be made only if 
the physician or counselor, after making reasonable efforts to 
counsel and encourage the patient or subject to provide the information 
to the spouse or sexual partner, reasonably believes that the 
patient or subject will not provide the information to the spouse or 
sexual partner and that the disclosure is necessary to protect the 
health of the spouse or sexual partner. 

(B) A disclosure under such paragraph may be made by a physician or 
counselor other than the physician or counselor referred 
to in subparagraph (A) if such physician or counselor is unavailable 
by reason of absence or termination of employment to make the 
disclosure. 
(g) Any person who violates any provision of this section or any 
regulation issued pursuant to this section shall be fined, in the case 
of a first offense, up to the maximum amount provided under section 
5701(f) of this title for a first offense under that section and, 
in the case of a subsequent offense, up to the maximum amount 
provided under section 5701(f) of this title for a subsequent offense 
under that section. 
(Added Pub. L. 94-581, title I, Sec. 111(a)(1), Oct. 21, 1976, 90 Stat. 
2849, Sec. 4132; 
amended Pub. L. 100-322, title I, Sec. 121, May 20, 1988, 102 Stat. 
502; renumbered Sec. 7332 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(A), 402(d)(1), 
403(a)(1), (2), (4), (5), May 7, 1991, 105 Stat. 221, 239; Pub. L. 
109-461, title II, Sec. 
204(b), Dec. 22, 2006, 120 Stat. 3411.) 


Sec. 7333 CH. 73-ORGANIZATION AND FUNCTIONS 902 

ï¿½ 7333. Nondiscrimination against alcohol and drug abusers 
and persons infected with the human immunodeficiency virus 

(a) Veterans eligible for treatment under chapter 17 of this 
title who are alcohol or drug abusers or who are infected with the 
human immunodeficiency virus shall not be discriminated against 
in admission or treatment by any Department health-care facility 
solely because of their alcohol or drug abuse or dependency or 
because of their viral infection. 
(b) The Secretary shall prescribe regulations for the enforcement of 
this section. Such regulations, with respect to the admission and 
treatment of such veterans who are alcohol or drug abusers, shall be 
prescribed in accordance with section 7334 of this title. 
(Added Pub. L. 94-581, title I, Sec. 111(a)(1), Oct. 21, 1976, 90 
Stat. 2850, Sec. 4133; 
amended Pub. L. 100-322, title I, Sec. 122(a), May 20, 1988, 102 Stat. 
503; renumbered Sec. 7333 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(A), 402(d)(1), 
403(a)(1), (2), May 7, 1991, 105 Stat. 221, 239.) 

ï¿½ 7334. Regulations 

(a) Regulations prescribed by the Secretary under section 7331 
of this title, section 7332 of this title with respect to the 
confidentiality of alcohol and drug abuse medical records, and 
section 7333 
of this title with respect to alcohol or drug abusers shall, to the 
maximum extent feasible consistent with other provisions of this 
title, make applicable the regulations described in subsection (b) to 
the conduct of research and to the provision of hospital care, nursing 
home care, domiciliary care, and medical services under this 
title. 
(b) The regulations referred to in subsection (a) are- 
(1) regulations governing human experimentation and informed consent 
prescribed by the Secretary of Health and 
Human Services, based on the recommendations of the National Commission 
for the Protection of Human Subjects of Biomedical and Behavioral 
Research, established by section 201 of 
the National Research Act (Public Law 93-348; 88 Stat. 348); 
and 
(2) regulations governing (A) the confidentiality of drug 
and alcohol abuse medical records, and (B) the admission of 
drug and alcohol abusers to private and public hospitals, prescribed 
pursuant to the Comprehensive Alcohol Abuse and Alcoholism Prevention, 
Treatment, and Rehabilitation Act of 
1970 (42 U.S.C. 4551 et seq.) and the Drug Abuse Office and 
Treatment Act of 1972 (21 U.S.C. 1101 et seq.). 
(c) Regulations prescribed by the Secretary under sections 
7331, 7332, and 7333 of this title may contain such definitions, and 
may provide for such safeguards and procedures (including procedures 
and criteria for the issuance and scope of court orders under 
section 7332(b)(2)(C) of this title), as are necessary to prevent 
circumvention or evasion of such regulations or to facilitate compliance 
with such regulations. 
(d) In prescribing and implementing such regulations, the Secretary 
shall, from time to time, consult with the Secretary of 
Health and Human Services and, as appropriate, with the President (or 
the delegate of the President) in order to achieve the max

903 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7362 

imum possible coordination of the regulations, and the implementation
of the regulations, which they and the Secretary prescribe. 

(Added Pub. L. 94-581, title I, Sec. 111(a)(1), Oct. 21, 1976, 90 Stat. 
2851, Sec. 4134; 
amended Pub. L. 97-295, Sec. 4(87), Oct. 12, 1982, 96 Stat. 1312; 
Pub. L. 100-322, 
title I, Sec. 122(a), May 20, 1988, 102 Stat. 504; renumbered Sec. 
7334 and amended 
Pub. L. 102-40, title IV, Sec. 401(a)(4)(A), 402(d)(1), 403(a)(1), 
(4), May 7, 1991, 105 
Stat. 221, 239.) 

SUBCHAPTER IV-RESEARCH CORPORATIONS 

ï¿½ 7361. Authority to establish; status 

(a) The Secretary may authorize the establishment at any Department 
medical center of a nonprofit corporation to provide a 
flexible funding mechanism for the conduct of approved research 
and education at the medical center. Except as otherwise required 
in this subchapter or under regulations prescribed by the Secretary, 
any such corporation, and its directors and employees, shall 
be required to comply only with those Federal laws, regulations, 
and executive orders and directives which apply generally to private 
nonprofit corporations. Such a corporation may be established 
to facilitate either research or education or both research and 
education. 
(b) If by the end of the four-year period beginning on the date 
of the establishment of a corporation under this subchapter the 
corporation is not recognized as an entity the income of which is 
exempt from taxation under the Internal Revenue Code of 1986, the 
Secretary shall dissolve the corporation. 
(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 Stat.
510, Sec. 4161; 
renumbered Sec. 7361 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(B), 
403(a)(1), (2), May 7, 1991, 105 Stat. 221, 239; Pub. L. 102-291, 
Sec. 3(a), May 20, 
1992, 106 Stat. 179; Pub. L. 104-262, title III, Sec. 343(b), Oct. 
9, 1996, 110 Stat. 
3207; Pub. L. 106-117, title II, Sec. 204(a), Nov. 30, 1999, 113 
Stat. 1562.) 

ï¿½ 7362. Purpose of corporations 

(a) Any corporation established under this subchapter shall be 
established solely to facilitate research as described in section 
7303(a) of this title and education and training as described in 
sections 7302, 7471, 8154, and 1701(6)(B) of this title in conjunction 
with the applicable Department medical center. Any funds received 
by the Secretary for the conduct of research or education at the 
medical center other than funds appropriated to the Department 
may be transferred to and administered by the corporation for 
these purposes. 
(b) For purposes of this section, the term ï¿½ï¿½education and trainingï¿½ï¿½ 
means the following: 
(1) In the case of employees of the Veterans Health Administration, 
such term means work-related instruction or other 
learning experiences to- 
(A) improve performance of current duties; 
(B) assist employees in maintaining or gaining specialized 
proficiencies; and 
(C) expand understanding of advances and changes in 
patient care, technology, and health care administration. 
Such term includes (in the case of such employees) education 
and training conducted as part of a residency or other program 


Sec. 7363 CH. 73-ORGANIZATION AND FUNCTIONS 904 

designed to prepare an individual for an occupation or profession. 

(2) In the case of veterans under the care of the Veterans 
Health Administration, such term means instruction or other 
learning experiences related to improving and maintaining the 
health of veterans to patients and to the families and guardians of 
patients. 
(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 
Stat. 510, Sec. 4162; 
renumbered Sec. 7362 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(B), 
403(a)(1)-(3), May 7, 1991, 105 Stat. 221, 239; Pub. L. 106-117, 
title II, Sec. 204(b), 
Nov. 30, 1999, 113 Stat. 1562.) 

ï¿½ 7363. Board of directors; executive director 

(a) The Secretary shall provide for the appointment of a board 
of directors for any corporation established under this subchapter. 
The board shall include- 
(1) the director of the medical center, the chief of staff of 
the medical center, and as appropriate, the assistant chief of 
staff for research for the medical center and the assistant chief 
of staff for education for the medical center, or, in the case of 
a facility at which such positions do not exist, those officials 
who are responsible for carrying out the responsibilities of the 
medical center director, chief of staff, and, as appropriate, the 
assistant chief of staff for research and the assistant chief of 
staff for education; and 
(2) subject to subsection (c), members who are not officers 
or employees of the Federal Government and who are familiar 
with issues involving medical and scientific research or education, 
as appropriate. 
(b) Each such corporation shall have an executive director who 
shall be appointed by the board of directors with the concurrence 
of the Under Secretary for Health of the Department. The executive 
director of a corporation shall be responsible for the operations 
of the corporation and shall have such specific duties and 
responsibilities as the board may prescribe. 
(c) An individual appointed under subsection (a)(2) to the board 
of directors of a corporation established under this subchapter may 
not be affiliated with, employed by, or have any other financial 
relationship with any entity that is a source of funding for research 
or education by the Department unless that source of funding is a 
governmental entity or an entity the income of which is exempt 
from taxation under the Internal Revenue Code of 1986. 
(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 
Stat. 510, Sec. 4163; 
renumbered Sec. 7363 and amended Pub. L. 102-40, title IV, Sec.
401(a)(4)(B), 
403(a)(1), (2), (4), May 7, 1991, 105 Stat. 221, 239; Pub. L. 
102-405, title III, Sec. 
302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 104-262, title 
III, Sec. 343(b), Oct. 
9, 1996, 110 Stat. 3207; Pub. L. 106-117, title II, Sec. 204(c), 
Nov. 30, 1999, 113 
Stat. 1562.) 

ï¿½ 7364. General powers 

(a) A corporation established under this subchapter may- 
(1) accept gifts and grants from, and enter into contracts 
with, individuals and public and private entities solely to carry 
out the purposes of this subchapter; and 

905 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7365 

(2) employ such employees as it considers necessary for 
such purposes and fix the compensation of such employees. 
(b) A corporation established under this subchapter may not 
spend funds for a research project unless the project is approved 
in accordance with procedures prescribed by the Under Secretary 
for Health for research carried out with Department funds. Such 
procedures shall include a peer review process. 
(c)(1) A corporation established under this subchapter may not 
spend funds for an education activity unless the activity is
approved in accordance with procedures prescribed by the Under 
Secretary for Health. 

(2) The Under Secretary for Health shall prescribe policies and 
procedures to guide the expenditure of funds by corporations under 
paragraph (1) consistent with the purpose of such corporations as 
flexible funding mechanisms. 
(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 
Stat. 511, Sec. 4164; 
renumbered Sec. 7364 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(B), 
403(a)(2), May 7, 1991, 105 Stat. 221, 239; Pub. L. 102-405, title 
III, Sec. 302(c)(1), 
Oct. 9, 1992, 106 Stat. 1984; Pub. L. 106-117, title II, Sec. 204(d), 
Nov. 30, 1999, 
113 Stat. 1562.) 

ï¿½ 7364A. Coverage of employees under certain Federal tort 
claims laws 

(a) An employee of a corporation established under this subchapter 
who is described by subsection (b) shall be considered an 
employee of the Government, or a medical care employee of the 
Veterans Health Administration, for purposes of the following 
provisions of law: 
(1) Section 1346(b) of title 28. 
(2) Chapter 171 of title 28. 
(3) Section 7316 of this title. 
(b) An employee described in this subsection is an employee 
who- 
(1) has an appointment with the Department, whether 
with or without compensation; 
(2) is directly or indirectly involved or engaged in research 
or education and training that is approved in accordance with 
procedures established by the Under Secretary for Health for 
research or education and training; and 
(3) performs such duties under the supervision of Depart
ment personnel. 
(Added Pub. L. 108-170, title IV, Sec. 402(a)(1), Dec. 6, 2003, 117 
Stat. 2061.) 

ï¿½ 7365. Applicable State law 

Any corporation established under this subchapter shall be established
in accordance with the nonprofit corporation laws of the 

State in which the applicable medical center is located and shall, 
to the extent not inconsistent with any Federal law, be subject to 
the laws of such State. 

(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 Stat.
511, Sec. 4165; 
renumbered Sec. 7365, Pub. L. 102-40, title IV, Sec. 401(a)(4)(B), 
May 7, 1991, 105 
Stat. 221.) 


Sec. 7366 CH. 73-ORGANIZATION AND FUNCTIONS 906 

ï¿½ 7366. Accountability and oversight 

(a)(1)(A) The records of a corporation established under this 
subchapter shall be available to the Secretary. 

(B) For the purposes of sections 4(a)(1) and 6(a)(1) of the Inspector 
General Act of 1978, the programs and operations of such 
a corporation shall be considered to be programs and operations of 
the Department with respect to which the Inspector General of the 
Department has responsibilities under such Act. 
(2) Such a corporation shall be considered an agency for the 
purposes of section 716 of title 31 (relating to availability of 
information and inspection of records by the Comptroller General). 
(b) Each such corporation shall submit to the Secretary an annual 
report providing a detailed statement of its operations, activities, 
and accomplishments during that year. A corporation with 
revenues in excess of $300,000 for any year shall obtain an audit 

of the corporation for that year. A corporation with annual revenues
between $10,000 and $300,000 shall obtain an independent 
audit of the corporation at least once every three years. Any audit 
under the preceding sentences shall be performed by an independent
auditor. The corporation shall include the most recent 
such audit in the corporationï¿½s report to the Secretary for that year. 
(c)(1) Each member of the board of directors of a corporation 
established under this subchapter, each employee of such a corporation,
and each employee of the Department who is involved in 
the functions of the corporation during any year shall be subject to 
Federal laws and regulations applicable to Federal employees with 
respect to conflicts of interest in the performance of official 
functions. 

(2) Each corporation established under this subchapter shall 
each year submit to the Secretary a statement signed by the executive 
director of the corporation verifying that each director and employee 
has certified awareness of the laws and regulations referred 
to in paragraph (1) and of the consequences of violations of those 
laws and regulations in the same manner as Federal employees are 
required to so certify. 
(d) The Secretary shall submit to the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives an annual report 
on the corporations established under this subchapter. The report shall 
set forth the following information: 
(1) The location of each corporation. 
(2) The amount received by each corporation during the 
previous year, including- 
(A) the total amount received; 
(B) the amount received from governmental entities 
for research and the amount received from governmental 
entities for education; 
(C) the amount received from all other sources for research and the amount 
received from all other sources for 
education; and 
(D) if an amount received from a source referred to in 
subparagraph (C) exceeded $25,000, information that identifies the 
source. 

907 CH. 73-ORGANIZATION AND FUNCTIONS Sec. 7368 

(3) The amount expended by each corporation during the 
year, including- 
(A) the amount expended for salary for research staff, 
the amount expended for salary for education staff, and 
the amount expended for salary for support staff; 
(B) the amount expended for direct support of research 
and the amount expended for direct support of education; 
and 
(C) if the amount expended with respect to any payee 
exceeded $35,000, information that identifies the payee. 
(4) The amount expended by each corporation during the 
year for travel conducted in conjunction with research and the 
amount expended for travel in conjunction with education. 
(Added Pub. L. 100-322, title II, Sec. 204(a), May 20, 1988, 102 Stat. 
511, Sec. 4166; 
renumbered Sec. 7366 and amended Pub. L. 102-40, title IV, Sec. 
401(a)(4)(B), 
403(a)(1), (2), May 7, 1991, 105 Stat. 221, 239; Pub. L. 104-262, 
title III, Sec. 
343(c)-(e), Oct. 9, 1996, 110 Stat. 3207; Pub. L. 106-117, title II, 
Sec. 204(e), Nov. 
30, 1999, 113 Stat. 1563; Pub. L. 107-103, title V, Sec. 509(f), 
Dec. 27, 2001, 115 
Stat. 997; Pub. L. 108-170, title IV, Sec. 402(b), Dec. 6, 2003, 
117 Stat. 2062.) 

ï¿½ï¿½ 7367. Repealed. Pub. L. 107-14, Sec. 8(a)(14)(A), June 5, 
2001, 115 Stat. 35ï¿½ 

ï¿½ï¿½ 7368. Repealed. Pub. L. 110-387, title VIII, Sec. 806(a), Oct. 
10, 2008, 122 Stat. 4141ï¿½ 


CHAPTER 74 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


909 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 

CHAPTER 74-VETERANS HEALTH ADMINISTRATION
PERSONNEL


SUBCHAPTER I-APPOINTMENTS 

Sec. 

7401. Appointments in Veterans Health Administration. 

7402. Qualifications of appointees. 

7403. Period of appointments; promotions. 

7404. Grades and pay scales. 

7405. Temporary full-time appointments, part-time appointments, and 
without-
compensation appointments. 

7406. Residencies and internships. 

7407. Administrative provisions for section 7405 and 7406 
appointments. 

7408. Appointment of additional employees. 

7409. Contracts for scarce medical specialist services. 

7410. Additional pay authorities. 

7411. Full-time board-certified physicians and dentists: 
reimbursement of continuing professional education expenses. 

SUBCHAPTER II-COLLECTIVE BARGAINING AND PERSONNEL 
ADMINISTRATION 


7421. Personnel administration: in general. 
7422. Collective bargaining. 
7423. Personnel administration: full-time employees. 
7424. Travel expenses of certain employees. 
7425. Employees: laws not applicable. 
7426. Retirement rights. 


SUBCHAPTER III-PAY FOR PHYSICIANS AND DENTISTS 

7431. Pay. 
7432. Pay of Under Secretary for Health. 
7433. Administrative matters. 


SUBCHAPTER IV-PAY FOR NURSES AND OTHER HEALTH-CARE 
PERSONNEL 


7451. Nurses and other health-care personnel: competitive pay. 
7452. Nurses and other health-care personnel: administration of 
pay. 
7453. Nurses: additional pay. 
7454. Physician assistants and other health care professionals: 
additional pay. 
7455. Increases in rates of basic pay. 
7456. Nurses: special rules for weekend duty. 
7456A. Nurses: alternate work schedules. 
7457. On-call pay. 
7458. Recruitment and retention bonus pay. 


SUBCHAPTER V-DISCIPLINARY AND GRIEVANCE PROCEDURES 

7461. Adverse actions: section 7401(1) employees. 
7462. Major adverse actions involving professional conduct or 
competence. 
7463. Other adverse actions. 
7464. Disciplinary Appeals Boards. 


911 


Sec. 7401 CH. 74-PERSONNEL 912 

SUBCHAPTER VI-REGIONAL MEDICAL EDUCATION CENTERS 
7471. 
7472. 
7473. 
7474. 
Designation of Regional Medical Education Centers. 
Supervision and staffing of Centers. 
Personnel eligible for training. 
Consultation. 
SUBCHAPTER I-APPOINTMENTS 

ï¿½ 7401. Appointments in Veterans Health Administration 

There may be appointed by the Secretary such personnel as 
the Secretary may find necessary for the health care of veterans (in 
addition to those in the Office of the Under Secretary for Health 
appointed under section 7306 of this title), as follows: 

(1) Physicians, dentists, podiatrists, chiropractors, optometrists, 
registered nurses, physician assistants, and expanded-
function dental auxiliaries. 
(2) Scientific and professional personnel, such as microbiologists, 
chemists, and biostatisticians. 
(3) Audiologists, speech pathologists, and audiologist-
speech pathologists, biomedical engineers, certified or registered 
respiratory therapists, dietitians, licensed physical 
therapists, licensed practical or vocational nurses, medical instrument 
technicians, medical records administrators or specialists, medical 
records technicians, medical technologists, 
dental hygienists, dental assistants, nuclear medicine technologists, 
occupational therapists, occupational therapy assistants, 
kinesiotherapists, orthotist-prosthetists, pharmacists, 
pharmacy technicians, physical therapy assistants, prosthetic 
representatives, psychologists, diagnostic radiologic technologists, 
therapeutic radiologic technologists, social workers, 
marriage and family therapists, licensed professional mental 
health counselors, blind rehabilitation specialists, and blind 
rehabilitation outpatient specialists. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 222; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 108- 
170, title III, Secs. 301(a)(1), 302(a), Dec. 6, 2003, 117 Stat. 
2054, 2057; Pub. L. 108- 
422, title V, Sec. 502, Nov. 30, 2004, 118 Stat. 2396; Pub. L. 
109-461, title II, Sec. 
201(a), Dec. 22, 2006, 120 Stat. 3409.) 

ï¿½ 7402. Qualifications of appointees 

(a) To be eligible for appointment to the positions in the 
Administration covered by subsection (b), a person must have the 
applicable qualifications set forth in that subsection. 
(b)(1) PHYSICIAN.-To be eligible to be appointed to a physician 
position, a person must- 

(A) hold the degree of doctor of medicine or of doctor of osteopathy 
from a college or university approved by the Secretary, 
(B) have completed an internship satisfactory to the Secretary, and 
(C) be licensed to practice medicine, surgery, or osteopathy 
in a State. 
(2) DENTIST.-To be eligible to be appointed to a dentist position, 
a person must- 

913 CH. 74-PERSONNEL Sec. 7402 

(A) hold the degree of doctor of dental surgery or dental 
medicine from a college or university approved by the Secretary, and 
(B) be licensed to practice dentistry in a State. 
(3) NURSE.-To be eligible to be appointed to a nurse position, 
a person must- 
(A) have successfully completed a full course of nursing in 
a recognized school of nursing, approved by the Secretary, and 
(B) be registered as a graduate nurse in a State. 
(4) DIRECTOR OF A HOSPITAL, DOMICILIARY, CENTER, OR OUTPATIENT 
CLINIC.-To be eligible to be appointed to a director position, a 
person must have such business and administrative experience and
qualifications as the Secretary shall prescribe. 
(5) PODIATRIST.-To be eligible to be appointed to a podiatrist 
position, a person must- 
(A) hold the degree of doctor of podiatric medicine, or its 
equivalent, from a school of podiatric medicine approved by the 
Secretary, and 
(B) be licensed to practice podiatry in a State. 
(6) OPTOMETRIST.-To be eligible to be appointed to an optometrist
position, a person must- 
(A) hold the degree of doctor of optometry, or its equivalent, from a 
school of optometry approved by the Secretary, 
and 
(B) be licensed to practice optometry in a State. 
(7) PHARMACIST.-To be eligible to be appointed to a pharmacist position, 
a person must- 
(A) hold the degree of bachelor of science in pharmacy, or 
its equivalent, from a school of pharmacy, approved by the Secretary, 
and 
(B) be registered as a pharmacist in a State. 
(8) PSYCHOLOGIST.-To be eligible to be appointed to a psychologist 
position, a person must- 
(A) hold a doctoral degree in psychology from a college or 
university approved by the Secretary, 
(B) have completed study for such degree in a specialty 
area of psychology and an internship which are satisfactory to 
the Secretary, and 
(C) be licensed or certified as a psychologist in a State, except
that the Secretary may waive the requirement of licensure 
or certification for an individual psychologist for a period not 
to exceed two years on the condition that that psychologist provide 
patient care only under the direct supervision of a psychologist who 
is so licensed or certified. 
(9) SOCIAL WORKER.-To be eligible to be appointed to a social 
worker position, a person must- 
(A) hold a masterï¿½s degree in social work from a college or 
university approved by the Secretary; and 
(B) be licensed or certified to independently practice social 
work in a State, except that the Secretary may waive the requirement 
of licensure or certification for an individual social 
worker for a reasonable period of time recommended by the 
Under Secretary for Health. 

Sec. 7402 CH. 74-PERSONNEL 914 

(10) MARRIAGE AND FAMILY THERAPIST.-To be eligible to be 
appointed to a marriage and family therapist position, a person 
must- 
(A) hold a masterï¿½s degree in marriage and family therapy, 
or a comparable degree in mental health, from a college or university 
approved by the Secretary; and 
(B) be licensed or certified to independently practice marriage and 
family therapy in a State, except that the Secretary 
may waive the requirement of licensure or certification for an 
individual marriage and family therapist for a reasonable period of 
time recommended by the Under Secretary for Health. 
(11) LICENSED PROFESSIONAL MENTAL HEALTH COUNSELOR.- 
To be eligible to be appointed to a licensed professional mental 
health counselor position, a person must- 
(A) hold a masterï¿½s degree in mental health counseling, or 
a related field, from a college or university approved by the 
Secretary; and 
(B) be licensed or certified to independently practice mental health 
counseling. 
(12) CHIROPRACTOR.-To be eligible to be appointed to a chiropractor 
position, a person must- 
(A) hold the degree of doctor of chiropractic, or its equivalent, from 
a college of chiropractic approved by the Secretary; 
and 
(B) be licensed to practice chiropractic in a State. 
(13) PEER SPECIALIST.-To be eligible to be appointed to a peer 
specialist position, a person must- 
(A) be a veteran who has recovered or is recovering from 
a mental health condition; and 
(B) be certified by- 
(i) a not-for-profit entity engaged in peer specialist 
training as having met such criteria as the Secretary shall 
establish for a peer specialist position; or 
(ii) a State as having satisfied relevant State requirements for a peer 
specialist position. 
(14) OTHER HEALTH-CARE POSITIONS.-To be appointed as a 
physician assistant, expanded-function dental auxiliary, certified or 
registered respiratory therapist, licensed physical therapist, licensed 
practical or vocational nurse, occupational therapist, dietitian,
microbiologist, chemist, biostatistician, medical technologist, 
dental technologist, or other position, a person must have such 
medical, dental, scientific, or technical qualifications as the 
Secretary shall prescribe. 
(c) Except as provided in section 7407(a) of this title, a person 
may not be appointed in the Administration to a position listed in 
section 7401(1) of this title unless the person is a citizen of the 
United States. 
(d) A person may not be appointed under section 7401(1) of 
this title to serve in the Administration in any direct patient-care 
capacity unless the Under Secretary for Health determines that the 
person possesses such basic proficiency in spoken and written 
English as will permit such degree of communication with patients 
and other health-care personnel as will enable the person to carry 
out the personï¿½s health-care responsibilities satisfactorily. Any de

915 CH. 74-PERSONNEL Sec. 7403 

termination by the Under Secretary for Health under this subsection 
shall be in accordance with regulations which the Secretary 
shall prescribe. 

(e) A person may not serve as Chief of Staff of a Department 
health-care facility if the person is not serving on a full-time basis. 
(f) A person may not be employed in a position under subsection (b) 
(other than under paragraph (4) of that subsection) if- 
(1) the person is or has been licensed, registered, or certified (as 
applicable to such position) in more than one State; 
and 
(2) either- 
(A) any of those States has terminated such license, 
registration, or certification for cause; or 
(B) the person has voluntarily relinquished such license, registration, 
or certification in any of those States 
after being notified in writing by that State of potential 
termination for cause. 
(g) The Secretary may enter into contracts with not-for-profit 
entities to provide- 
(1) peer specialist training to veterans; and 
(2) certification for veterans under subsection (b)(13)(B)(i). 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 Stat. 
222; amended 
Pub. L. 102-86, title III, Sec. 305(a), Aug. 14, 1991, 105 Stat. 417; 
Pub. L. 102-405, 
title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 106-117, 
title II, Sec. 
209, Nov. 30, 1999, 113 Stat. 1569; Pub. L. 106-419, title II, Sec. 205,
Nov. 1, 2000, 
114 Stat. 1842; Pub. L. 108-170, title III, Sec. 302(b), Dec. 6, 2003, 
117 Stat. 2058; 
Pub. L. 109-461, title II, Sec. 201(b), Dec. 22, 2006, 120 Stat. 3409; 
Pub. L. 110- 
387, title IV, Sec. 405, Oct. 10, 2008, 122 Stat. 4129.) 

ï¿½ 7403. Period of appointments; promotions 

(a)(1) Appointments under this chapter of health-care professionals to 
whom this section applies may be made only after qualifications have 
been satisfactorily established in accordance with 
regulations prescribed by the Secretary, without regard to civil-
service requirements. 

(2) This section applies to the following persons appointed 
under this chapter: 
(A) Physicians. 
(B) Dentists. 
(C) Podiatrists. 
(D) Optometrists. 
(E) Nurses. 
(F) Physician assistants. 
(G) Expanded-function dental auxiliaries. 
(H) Chiropractors. 
(b)(1) Appointments described in subsection (a) shall be for a 
probationary period of two years. 

(2) The record of each person serving under such an appointment in 
the Medical, Dental, and Nursing Services shall be reviewed from time 
to time by a board, appointed in accordance with 
regulations of the Secretary. If such a board finds that such person 
is not fully qualified and satisfactory, such person shall be separated 
from the service. 
(c) Promotions of persons to whom this section applies shall be 
made only after examination given in accordance with regulations 

Sec. 7403 CH. 74-PERSONNEL 916 

prescribed by the Secretary. Advancement within grade may be 
made in increments of the minimum rate of basic pay of the grade 
in accordance with regulations prescribed by the Secretary. 

(d) In determining eligibility for reinstatement in the Federal 
civil service of persons appointed to positions in the Administration 
under this chapter who at the time of appointment have a civil-
service status, and whose employment in the Administration is 
terminated, the period of service performed in the Administration 
shall be included in computing the period of service under applicable 
civil-service rules and regulations. 
(e) In accordance with regulations prescribed by the Secretary, 
the grade and annual rate of basic pay of a person to whom this 
section applies whose level of assignment is changed from a level 
of assignment in which the grade level is based on both the nature 
of the assignment and personal qualifications may be adjusted to 
the grade and annual rate of basic pay otherwise appropriate. 
(f)(1) Upon the recommendation of the Under Secretary for 
Health, the Secretary may- 

(A) use the authority in subsection (a) to establish the 
qualifications for and (subject to paragraph (2)) to appoint 
individuals to positions listed in section 7401(3) of this title; and 
(B) use the authority provided in subsection (c) for the promotion 
and advancement of Department employees serving in 
such positions. 
(2) In using such authority to appoint individuals to such positions, 
the Secretary shall apply the principles of preference for the 
hiring of veterans and other persons established in subchapter I of 
chapter 33 of title 5. 
(3) Notwithstanding any other provision of this title or other 
law, all matters relating to adverse actions, reductions-in-force, the 
applicability of the principles of preference referred to in paragraph 
(2), rights of part-time employees, disciplinary actions, and grievance 
procedures involving individuals appointed to such positions 
, whether appointed under this section or section 7405(a)(1)(B) of 
this title (including similar actions and procedures involving an 
employee in a probationary status), shall be resolved under the provisions 
of title 5 as though such individuals had been appointed 
under that title. 
(g)(1) The Secretary may appoint in the competitive civil service without 
regard to the provisions of subchapter I of chapter 33 
of title 5 (other than sections 3303 and 3328 of such title) an individual 
who- 

(A) has a recognized degree or certificate from an accredited institution 
in a health-care profession or occupation; and 
(B) has successfully completed a clinical education program affiliated 
with the Department. 
(2) In using the authority provided by this subsection, the Secretary 
shall apply the principles of preference for the hiring of veterans and 
other persons established in subchapter I of chapter 33 
of title 5. 
(h)(1) If the Secretary uses the authority provided in subsection (c) 
for the promotion and advancement of an occupational 
category of employees described in section 7401(3) of this title, as 
authorized by subsection (f)(1)(B), the Secretary shall do so through 


917 CH. 74-PERSONNEL Sec. 7403 

one or more systems prescribed by the Secretary. Each such system 
shall be planned, developed, and implemented in collaboration 
with, and with the participation of, exclusive employee representatives 
of such occupational category of employees. 

(2)(A) Before prescribing a system of promotion and advancement of an 
occupational category of employees under paragraph (1), 
the Secretary shall provide to exclusive employee representatives of 
such occupational category of employees a written description of 
the proposed system. 

(B) Not later than 30 days after receipt of the description of 
a proposed system under subparagraph (A), exclusive employee 
representatives may submit to the Secretary the recommendations, 
if any, of such exclusive employee representatives with respect to 
the proposed system. 
(C) The Secretary shall give full and fair consideration to any 
recommendations received under subparagraph (B) in deciding 
whether and how to proceed with a proposed system. 
(3) The Secretary shall implement immediately any part of a 
system of promotion and advancement under paragraph (1) that is 
proposed under paragraph (2) for which the Secretary receives no 
recommendations from exclusive employee representatives under 
paragraph (2). 
(4) If the Secretary receives recommendations under paragraph 
(2) from exclusive employee representatives on any part of a proposed 
system of promotion and advancement under that paragraph, 
the Secretary shall determine whether or not to accept the 
recommendations, either in whole or in part. If the Secretary 
determines not to accept all or part of the recommendations, the 
Secretary shall- 
(A) notify the congressional veteransï¿½ affairs committees of 
the recommendations and of the portion of the recommendations that 
the Secretary has determined not to accept; 
(B) meet and confer with such exclusive employee representatives, 
for a period not less than 30 days, for purposes 
of attempting to reach an agreement on whether and how to 
proceed with the portion of the recommendations that the Secretary 
has determined not to accept; 
(C) at the election of the Secretary, or of a majority of such 
exclusive employee representatives who are participating in 
negotiations on such matter, employ the services of the Federal 
Mediation and Conciliation Service during the period referred 
to in subparagraph (B) for purposes of reaching such agreement; and 
(D) if the Secretary determines that activities under subparagraph 
(B), (C), or both are unsuccessful at reaching such 
agreement and determines (in the sole and unreviewable discretion 
of the Secretary) that further meeting and conferral 
under subparagraph (B), mediation under subparagraph (C), or 
both are unlikely to reach such agreement- 
(i) notify the congressional veteransï¿½ affairs committees of such 
determinations, identify for such committees 
the portions of the recommendations that the Secretary 
has determined not to accept, and provide such committees 
an explanation and justification for determining to imple

Sec. 7403 CH. 74-PERSONNEL 918 

ment the part of the system subject to such portions of the 
recommendations without regard to such portions of the 
recommendations; and 

(ii) commencing not earlier than 30 days after notice 
under clause (i), implement the part of the system subject 
to the recommendations that the Secretary has determined 
not to accept without regard to those recommendations. 
(5) If the Secretary and exclusive employee representatives 
reach an agreement under paragraph (4) providing for the resolution 
of a disagreement on one or more portions of the recommendations 
that the Secretary had determined not to accept under that 
paragraph, the Secretary shall immediately implement such resolution. 
(6) In implementing a system of promotion and advancement 
under this subsection, the Secretary shall- 
(A) develop and implement mechanisms to permit exclusive employee 
representatives to participate in the periodic review and 
evaluation of the system, including peer review, and 
in any further planning or development required with respect 
to the system as a result of such review and evaluation; and 
(B) provide exclusive employee representatives appropriate 
access to information to ensure that the participation of such 
exclusive employee representative in activities under subparagraph 
(A) is productive. 
(7)(A) The Secretary may from time to time modify a system 
of promotion and advancement under this subsection. 

(B) In modifying a system, the Secretary shall take into account 


any recommendations made by the exclusive employee representatives 
concerned. 
(C) In modifying a system, the Secretary shall comply with 
paragraphs (2) through (5) and shall treat any proposal for the 
modification of a system as a proposal for a system for purposes of 
such paragraphs. 
(D) The Secretary shall promptly submit to the congressional 
veteransï¿½ affairs committees a report on any modification of a system. 
Each report shall include- 
(i) an explanation and justification of the modification; and 
(ii) a description of any recommendations of exclusive employee 
representatives with respect to the modification and a 
statement whether or not the modification was revised in light 
of such recommendations. 
(8) In the case of employees who are not within a unit with respect to 
which a labor organization is accorded exclusive recognition, the 
Secretary may develop procedures for input from representatives under 
this subsection from any appropriate organization that represents a 
substantial percentage of such employees or, 
if none, in such other manner as the Secretary considers appropriate, 
consistent with the purposes of this subsection. 
(9) In this subsection, the term ï¿½ï¿½congressional veteransï¿½ affairs 
committeesï¿½ï¿½ means the Committees on Veteransï¿½ Affairs of the Senate 
and the House of Representatives. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 224; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 108- 
170, title III, Secs. 301(b), 302(c), Nov. 24, 2003, 117 Stat. 
2055, 2058.) 


919 CH. 74-PERSONNEL Sec. 7404 

ï¿½ 7404. Grades and pay scales 

(a) The annual rates or ranges of rates of basic pay for positions 
provided in section 7306 of this title shall be prescribed from 
time to time by Executive order as authorized by chapter 53 of title 
5 or as otherwise authorized by law. The pay of physicians and 
dentists serving in positions to which an Executive order applies 
under the preceding sentence shall be determined under subchapter 
III of this chapter instead of such Executive order. 
(b) The grades for positions provided for in paragraph (1) of 
section 7401 of this title shall be as follows. The annual ranges of 
rates of basic pay for those grades shall be prescribed from time 
to time by Executive order as authorized by chapter 53 of title 5 
or as otherwise authorized by law: 
PHYSICIAN AND DENTIST SCHEDULE 

Physician grade. 

Dentist grade. 

NURSE SCHEDULE 

Nurse V. 
Nurse IV. 
Nurse III. 
Nurse II. 
Nurse I. 


CLINICAL PODIATRIST, CHIROPRACTOR, AND OPTOMETRIST SCHEDULE 

Chief grade. 
Senior grade. 
Intermediate grade. 
Full grade. 
Associate grade.


(d) Except as provided under subsection (e), subchapter III, 
and section 7457 of this title, pay for positions for which basic pay 
is paid under this section may not be paid at a rate in excess of 
the rate of basic pay authorized by section 5316 of title 5 for 
positions in Level V of the Executive Schedule. 
(e) The position of Chief Nursing Officer, Office of Nursing 
Services, shall be exempt from the provisions of section 7451 of this 
title and shall be paid at a rate determined by the Secretary, not 
to exceed the maximum rate established for the Senior Executive 
Service under section 5382 of title 5. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 225; amended 
Pub. L. 102-405, title II, Sec. 206, title III, Sec. 302(c)(1), 
Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 102-585, title III, Sec. 301(a), Nov. 4, 1992, 106 
Stat. 4951; Pub. L. 
108-170, title III, Sec. 302(d), Dec. 6, 2003, 117 Stat. 2058; 
Pub. L. 108-445, Sec. 
3(a), (f), Dec. 3, 2004, 118 Stat. 2636, 2643; Pub. L. 109-461, 
title II, Sec. 202, Dec. 
22, 2006, 120 Stat. 3410.) 


Sec. 7405 CH. 74-PERSONNEL 920 

ï¿½ 7405. Temporary full-time appointments, part-time appointments, 
and without-compensation appointments 

(a) The Secretary, upon the recommendation of the Under Secretary 
for Health, may employ, without regard to civil service or 
classification laws, rules, or regulations, personnel as follows: 
(1) On a temporary full-time basis, part-time basis, or 
without compensation basis, persons in the following positions: 
(A) Positions listed in section 7401(1) of this title. 
(B) Positions listed in section 7401(3) of this title. 
(C) Librarians. 
(D) Other professional, clerical, technical, and unskilled personnel 
(including interns, residents, trainees, 
and students in medical support programs). 
(2) On a fee basis, persons in the following positions: 
(A) Positions listed in section 7401(1) of this title. 
(B) Positions listed in section 7401(3) of this title. 
(C) Other professional and technical personnel. 
(b) Personnel employed under subsection (a)- 
(1) shall be in addition to personnel described in section 
7306, paragraphs (1) and (3) of section 7401, and section 7408 
of this title; and 
(2) shall be paid such rates of pay as the Secretary may 
prescribe. 
(c)(1) Temporary full-time appointments under this section of 
persons in positions listed in paragraphs (1) and (3) of section 7401 
of this title may be for a period in excess of 90 days only if the 
Under Secretary for Health finds that circumstances render it 
impracticable to obtain the necessary services through appointments 
under that section. 

(2) A temporary full-time appointment may not be made for a 
period in excess of two years in the case of a person who- 
(A) has successfully completed- 
(i) a full course of nursing in a recognized school of 
nursing, approved by the Secretary; or 
(ii) a full course of training for any category of personnel 
described in paragraph (3) of section 7401 of this 
title, or as a physician assistant, in a recognized education 
or training institution approved by the Secretary; and 
(B) is pending registration or licensure in a State or certification 
by a national board recognized by the Secretary. 
(3)(A) Temporary full-time appointments of persons in posi
tions referred to in subsection (a)(1)(D) shall not exceed three 
years. 

(B) Temporary full-time appointments under this paragraph 
may be renewed for one or more additional periods not in excess 
of three years each. 
(4) Temporary full-time appointments of other personnel may 
not be for a period in excess of one year except as authorized in 
subsection (f). 
(d) A part-time appointment may not be for a period of more 
than one year, except for appointments of persons specified in sub

921 CH. 74-PERSONNEL Sec. 7406 

section (a)(1)(A) and interns, residents, and other trainees in 
medical support programs and except as authorized in subsection (f). 

(e) A student who has a temporary appointment under this section and 
who is pursuing a full course of nursing in a recognized 
school of nursing approved by the Secretary, or who is pursuing a 
full course of training for any category of personnel described in 
paragraph (3) of section 7401 of this title in a recognized education 
or training institution approved by the Secretary, may be reappointed 
for a period not to exceed the duration of the studentï¿½s 
academic program. 
(f) During any period during which the Secretary is exercising 
the authority provided in subsections (a) and (f)(1) of section 7403 
of this title in connection with the appointment, under paragraph 
(3) of section 7401 of this title, of personnel in a category of 
personnel described in such paragraph- 
(1) the Secretary may make temporary full-time appointments of 
personnel in such category for periods exceeding 90 
days if the Under Secretary for Health finds that circumstances 
render it impractical to obtain the necessary services through 
appointments under paragraph (3) of section 7401 
of this title; and 
(2) part-time appointments of personnel in such category 
may be for periods of more than one year. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 226; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 106- 
419, title II, Sec. 204, Nov. 1, 2000, 114 Stat. 1842; Pub. L. 
108-170, title III, Sec. 
301(c), Dec. 6, 2003, 117 Stat. 2057.) 

ï¿½ 7406. Residencies and internships 

(a)(1) The Secretary may establish residencies and internships. 
The Secretary may appoint qualified persons to such positions 
without regard to civil service or classification laws, rules, 
or regulations. 

(2) For the purposes of this section: 
(A) The term ï¿½ï¿½internshipï¿½ï¿½ includes the equivalency of an 
internship as determined in accordance with regulations which 
the Secretary shall prescribe. 
(B) The term ï¿½ï¿½internï¿½ï¿½ means a person serving an internship. 
(b) The Secretary may prescribe the conditions of employment 
of persons appointed under this section, including necessary training, 
and the customary amount and terms of pay for such positions 
during the period of such employment and training. The amount 
and terms of such pay may be established retroactively based on 
changes in such customary amount and terms. 
(c)(1) In order to carry out more efficiently the provisions of 
subsection (a)(1), the Secretary may contract with one or more 
hospitals, medical schools, or medical installations having hospital 
facilities and participating with the Department in the training of 
interns or residents to provide, by the designation of one such 
institution to serve as a central administrative agency, for the central 
administration- 

(A) of stipend payments; 
(B) provision of fringe benefits; and 

Sec. 7406 CH. 74-PERSONNEL 922 

(C) maintenance of records for such interns and residents. 
(2) The Secretary may pay to such designated agency, without 
regard to any other law or regulation governing the expenditure of 
Government moneys either in advance or in arrears, an amount to 
cover the cost for the period such intern or resident serves in a 
Department facility furnishing hospital care or medical services of- 
(A) stipends fixed by the Secretary pursuant to paragraph 
(1); 
(B) hospitalization, medical care, and life insurance and 
any other employee benefits as are agreed upon by the participating 
institutions for the period that such intern or resident 
serves in a Department facility furnishing hospital care or 
medical services; 
(C) tax on employers pursuant to chapter 21 of the Internal Revenue 
Code of 1986, where applicable; and 
(D) an amount to cover a pro rata share of the cost of expense of such 
central administrative agency. 
(3)(A) Any amounts paid by the Secretary to such central ad
ministrative agency to cover the cost of hospitalization, medical 
care, or life insurance or other employee benefits shall be in lieu 
of any benefits of like nature to which such intern or resident may 
be entitled under the provisions of title 5, and the acceptance of 
stipends and employee benefits from the designated central 
administrative agency shall constitute a waiver by the recipient of any 
claim such recipient might have to any payment of stipends or employee 
benefits to which such recipient may be entitled under this 
title or title 5. 

(B) Notwithstanding subparagraph (A), any period of service of 
any such intern or resident in a Department facility furnishing 
hospital care or medical services shall be deemed creditable service 
for the purposes of section 8332 of title 5. 
(4) The agreement with such central administrative agency 
may further provide that the designated central administrative 
agency shall- 
(A) make all appropriate deductions from the stipend of 
each intern and resident for local, State, and Federal taxes; 
(B) maintain all records pertinent to such deductions and 
make proper deposits of such deductions; and 
(C) maintain all records pertinent to the leave accrued by 
such intern and resident for the period during which such recipient 
serves in a participating facility, including a Department facility 
furnishing hospital care or medical services. 
(5) Leave described in paragraph (4)(C) may be pooled, and the 
intern or resident may be afforded leave by the facility in which 
such person is serving at the time the leave is to be used to the 
extent of such personï¿½s total accumulated leave, whether or not 
earned at the facility in which such person is serving at the time 
the leave is to be afforded. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 227; amended 
Pub. L. 104-262, title III, Sec. 345, Oct. 9, 1996, 110 Stat. 3208.) 


923 CH. 74-PERSONNEL Sec. 7408 

ï¿½ 7407. Administrative provisions for section 7405 and 7406 
appointments 

(a) When the Under Secretary for Health determines that it is 
not possible to recruit qualified citizens for the necessary services, 
appointments under sections 7405 and 7406 of this title may be 
made without regard to the citizenship requirements of section 
7402(c) of this title or of any other law prohibiting the employment 
of, or payment of compensation to, a person who is not a citizen 
of the United States. 
(b)(1) Subject to paragraph (2), the Under Secretary for Health 
may waive for the purpose of the appointment of an individual 
under section 7405 or 7406 of this title the requirements set forth 
in section 7402(b) of this title- 

(A) that a physician, dentist, psychologist, optometrist, registered 
nurse, practical or vocational nurse, or physical therapist be licensed 
or certified, as appropriate; 
(B) that the licensure or certification of such an individual 
be in a State; and 
(C) that a psychologist have completed an internship. 
(2) The waivers authorized in paragraph (1) may be granted- 
(A) in the case of clauses (A) and (C) of such paragraph, 
if the individual (i) will be employed to conduct research or 
serve in an academic position, and (ii) will have no responsibility 
for furnishing direct patient care services; and 
(B) in the case of clause (B) of such paragraph, if the individual 
will be employed to serve in a country other than the 
United States and the individualï¿½s licensure or registration is 
in the country in which the individual is to serve. 
(c) The program of training prescribed by the Secretary in 
order to qualify a person for the position of full-time physician 
assistant or expanded-function dental auxiliary shall be considered a 
full-time institutional program for purposes of chapter 34 of this 
title. The Secretary may consider training for such a position to be 
on a less than full-time basis for purposes of such chapter when the 
combined classroom (and other formal instruction) portion of the 
program and the on-the-job training portion of the program total 
less than 30 hours per week. 
(d) A person may not be appointed under section 7405 or 7406 
of this title to an occupational category described in section 7401(1) 
of this title or in section 7406 of this title unless the person meets 
the requirements established in section 7402(d) of this title and 
regulations prescribed under that section. 
(e) In accordance with the provisions of section 7425(b) of this 
title, the provisions of chapter 34 of title 5 pertaining to part-time 
career employment shall not apply to part-time appointments 
under sections 7405 and 7406 of this title. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 Stat. 
228; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984.) 

ï¿½ 7408. Appointment of additional employees 

(a) There shall be appointed by the Secretary under civil service laws, 
rules, and regulations, such additional employees, other 
than those provided in section 7306 and paragraphs (1) and (3) of 

Sec. 7409 CH. 74-PERSONNEL 924 

section 7401 of this title and those specified in sections 7405 and 
7406 of this title, as may be necessary to carry out the provisions 
of this chapter. 

(b) The Secretary, after considering an individualï¿½s existing 
pay, higher or unique qualifications, or the special needs of the 
Department, may appoint the individual to a position in the 
Administration providing direct patient-care services or services 
incident to 
direct patient-services at a rate of pay above the minimum rate of 
the appropriate grade. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 Stat. 
229; amended 
Pub. L. 103-446, title XII, Sec. 1201(e)(21), Nov. 2, 1994, 108 Stat. 
4686.) 

ï¿½ 7409. Contracts for scarce medical specialist services 

(a) The Secretary may enter into contracts with institutions 
and persons described in subsection (b) to provide scarce medical 
specialist services at Department facilities. Such services may include 
the services of physicians, dentists, podiatrists, optometrists, 
chiropractors, nurses, physician assistants, expanded-function dental 
auxiliaries, technicians, and other medical support personnel. 
(b) Institutions and persons with whom the Secretary may 
enter into contracts under subsection (a) are the following: 
(1) Schools and colleges of medicine, osteopathy, dentistry, 
podiatry, optometry, and nursing. 
(2) Clinics. 
(3) Any other group or individual capable of furnishing 
such scarce medical specialist services. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 
Stat. 229; amended 
Pub. L. 108-170, title III, Sec. 302(f), Dec. 6, 2003, 117 Stat. 
2058.) 

ï¿½ 7410. Additional pay authorities 

The Secretary may authorize the Under Secretary for Health 
to pay advance payments, recruitment or relocation bonuses, and 
retention allowances to the personnel described in paragraph (1) of 
section 7401 of this title, or interview expenses to candidates for 
appointment as such personnel, in the same manner, and subject 
to the same limitations, as in the case of the authority provided 
under sections 5524a, 5706b, 5753, and 5754 of title 5. 

(Added Pub. L. 102-40, title I, Sec. 103(a)((1)), May 7, 1991,
105 Stat. 198; amended 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984.) 

ï¿½ 7411. Full-time board-certified physicians and dentists: re

imbursement of continuing professional education 

expenses 

The Secretary shall reimburse any full-time board-certified 
physician or dentist appointed under section 7401(1) of this 
title for 
expenses incurred, up to $1,000 per year, for continuing
professional education. 

(Added Pub. L. 102-40, title I, Sec. 103(a)((1)), May 7, 
1991, 105 Stat. 199.) 


925 CH. 74-PERSONNEL Sec. 7422 

SUBCHAPTER II-COLLECTIVE BARGAINING AND 
PERSONNEL ADMINISTRATION 


ï¿½ 7421. Personnel administration: in general 

(a) Notwithstanding any law, Executive order, or regulation, 
the Secretary shall prescribe by regulation the hours and conditions 
of employment and leaves of absence of employees appointed 
under any provision of this chapter in positions in the Veterans 
Health Administration listed in subsection (b). 
(b) Subsection (a) refers to the following positions: 
(1) Physicians. 
(2) Dentists. 
(3) Podiatrists. 
(4) Optometrists. 
(5) Registered nurses. 
(6) Physician assistants. 
(7) Expanded-duty dental auxiliaries. 
(8) Chiropractors. 
(Added Pub. L. 102-40, title II, Sec. 202, May 7, 1991, 105 Stat. 
200; amended Pub. 
L. 108-170, title III, Sec. 302(g), Dec. 6, 2003, 117 Stat. 2058.) 
ï¿½ 7422. Collective bargaining 

(a) Except as otherwise specifically provided in this title, the 
authority of the Secretary to prescribe regulations under section 
7421 of this title is subject to the right of Federal employees to 
engage in collective bargaining with respect to conditions of 
employment through representatives chosen by them in accordance with 
chapter 71 of title 5 (relating to labor-management relations). 
(b) Such collective bargaining (and any grievance procedures 
provided under a collective bargaining agreement) in the case of 
employees described in section 7421(b) of this title may not cover, 
or have any applicability to, any matter or question concerning or 
arising out of (1) professional conduct or competence, (2) peer 
review, or (3) the establishment, determination, or adjustment of 
employee compensation under this title. 
(c) For purposes of this section, the term ï¿½ï¿½professional conduct 
or competenceï¿½ï¿½ means any of the following: 
(1) Direct patient care. 
(2) Clinical competence. 
(d) An issue of whether a matter or question concerns or arises 
out of (1) professional conduct or competence, (2) peer review, or (3) 
the establishment, determination, or adjustment of employee 
compensation under this title shall be decided by the Secretary and is 
not itself subject to collective bargaining and may not be reviewed 
by any other agency. 
(e) A petition for judicial review or petition for enforcement 
under section 7123 of title 5 in any case involving employees described 
in section 7421(b) of this title or arising out of the applicability of 
chapter 71 of title 5 to employees in those positions, shall 
be taken only in the United States Court of Appeals for the District 
of Columbia Circuit. 
(Added Pub. L. 102-40, title II, Sec. 202, May 7, 1991, 105 Stat. 200.) 


Sec. 7423 CH. 74-PERSONNEL 926 

ï¿½ 7423. Personnel administration: full-time employees 

(a) The hours of employment in carrying out responsibilities 
under this title of any employee who is appointed in the Administration 
under any provision of this chapter on a full-time basis in 
a position listed in section 7421(b) of this title (other than an intern 
or resident appointed pursuant to section 7406 of this title) 
and who accepts responsibilities for carrying out professional services 
for remuneration other than those assigned under this title 
shall consist of not less than 80 hours in a biweekly pay period (as 
that term is used in section 5504 of title 5). 
(b) A person covered by subsection (a) may not do any of the 
following: 
(1) Teach or provide consultative services at any affiliated 
institution if such teaching or consultation will, because of its 
nature or duration, conflict with such personï¿½s responsibilities 
under this title. 
(2) Accept payment under any insurance or assistance program 
established under title XVIII or XIX of the Social Security Act or 
under chapter 55 of title 10 for professional services 
rendered by such person while carrying out such personï¿½s 
responsibilities under this title. 
(3) Accept from any source, with respect to any travel performed by 
such person in the course of carrying out such personï¿½s 
responsibilities under this title, any payment or per diem 
for such travel, other than as provided for in section 4111 of 
title 5. 
(4) Request or permit any individual or organization to 
pay, on such personï¿½s behalf for insurance insuring such person 
against malpractice claims arising in the course of carrying out 
such personï¿½s responsibilities under this title or for such personï¿½s 
dues or similar fees for membership in medical or dental 
societies or related professional associations, except where such 
payments constitute a part of such personï¿½s remuneration for 
the performance of professional responsibilities permitted 
under this section, other than those carried out under this 
title. 
(5) Perform, in the course of carrying out such personï¿½s 
responsibilities under this title, professional services for the 
purpose of generating money for any fund or account which is 
maintained by an affiliated institution for the benefit of such 
institution, or for such personï¿½s personal benefit, or both. 
(c) In the case of any fund or account described in subsection 
(b)(5) that was established before September 1, 1973- 
(1) the affiliated institution shall submit semiannually an 
accounting to the Secretary and to the Comptroller General of 
the United States with respect to such fund or account and 
shall maintain such fund or account subject to full public 
disclosure and audit by the Secretary and the Comptroller 
General for a period of three years or for such longer period 
as the Secretary shall prescribe, and 
(2) no person in a position specified in paragraph (1)(B) 
may receive any cash from amounts deposited in such fund or 
account derived from services performed before that date. 

927 CH. 74-PERSONNEL Sec. 7423 

(d) As used in this section: 
(1) The term ï¿½ï¿½affiliated institutionï¿½ï¿½ means a medical school 
or other institution of higher learning with which the Secretary 
has a contract or agreement as referred to in section 7313 of 
this title for the training or education of health personnel. 
(2) The term ï¿½ï¿½remunerationï¿½ï¿½ means the receipt of any 
amount of monetary benefit from any non-Department source 
in payment for carrying out any professional responsibilities. 
(e)(1) The Secretary shall establish a leave transfer program 
for the benefit of health-care professionals in positions listed 
in section 7401(1) of this title. The Secretary may also 
establish a leave 
bank program for the benefit of such health-care professionals. 

(2) To the maximum extent feasible- 
(A) the leave transfer program shall provide the same or 
similar requirements and conditions as are provided for the 
program established by the Director of the Office of Personnel 
Management under subchapter III of chapter 63 of title 5; and 
(B) any leave bank program established pursuant to paragraph (1) 
shall be consistent with the requirements and conditions provided 
for agency leave bank programs in subchapter 
IV of such chapter. 
(3) Participation by a health-care professional in the leave 
transfer program established pursuant to paragraph (1), and in any 
leave bank program established pursuant to such paragraph, shall 
be voluntary. The Secretary may not require any health-care 
professional to participate in such a program. 
(4)(A) The Secretary and the Director of the Office of Personnel 
Management may enter into an agreement that permits health-
care professionals referred to in paragraph (1) to participate in the 
leave transfer program established by the Director of the Office of 
Personnel Management under subchapter III of chapter 63 of title 
5 or in any leave bank program established for other employees of 
the Department pursuant to subchapter IV of chapter 63 of title 5, 
or both. 

(B) Participation of such health-care professionals in a leave 
transfer program or a leave bank program pursuant to an agreement 
entered into under subparagraph (A) shall be subject to such 
requirements and conditions as may be prescribed in such agreement. 
(5) The Secretary is not required to establish a leave transfer 
program for any personnel permitted to participate in a leave 
transfer program pursuant to an agreement referred to in paragraph (4). 
(f) The Secretary may purchase promotional items of nominal 
value for use in the recruitment of individuals for employment 
under this chapter. The Secretary shall prescribe guidelines for the 
administration of the preceding sentence. 
(Added and amended Pub. L. 102-40, title II, Sec. 202, title IV, 
Sec. 401(b)(3)(A), May 7, 1991, 105 Stat. 201, 230; Pub. L. 102-405, 
title II, Sec. 203, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1983, 1984; Pub. L. 104-262, title III, Sec. 347, 
Oct. 9, 1996, 110 Stat. 3208.) 


Sec. 7424 CH. 74-PERSONNEL 928 

ï¿½ 7424. Travel expenses of certain employees 

(a) The Secretary may pay the expenses (other than membership fees) of 
persons described in sections 7306 and 7401(1) of this 
title (including persons in positions described in section 7401(1) of 
this title who are appointed on a temporary full-time basis or a 
part-time basis under section 7405 of this title) who are detailed 
by the Under Secretary for Health to attend meetings of associations 
for the promotion of medical and related science. 
(b)(1) The Secretary may prescribe regulations establishing 
conditions under which officers and employees of the Administration 
who are nationally recognized principal investigators in medical 
research may be permitted to accept payment, in cash or in 
kind, from non-Federal agencies, organizations, and individuals for 
travel and such reasonable subsistence expenses as are approved 
by the Secretary pursuant to such regulations- 

(A) in connection with their attendance at meetings or in 
performing advisory services concerned with the functions or 
activities of the Department; or 
(B) in connection with acceptance of significant awards or 
with activity related thereto concerned with functions or activities of 
the Department. 
(2) Any such payment may be retained by such officers and 
employees to cover the cost of such expenses or shall be deposited 
to the credit of the appropriation from which the cost of such expenses 
is paid, as may be provided in such regulations. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(3)(B), May 7, 1991, 105 
Stat. 230; amended Pub. L. 102-405, title III, Sec. 302(c)(1), 
Oct. 9, 1992, 106 Stat. 1984.) 

ï¿½ 7425. Employees: laws not applicable 

(a) Physicians, dentists, nurses, and other health-care professionals 
employed by the Administration and appointed under section 7306, 
7401(1), 7405, or 7406 of this chapter are not subject to 
the following provisions of law: 
(1) Section 413 of the Civil Service Reform Act of 1978. 
(2) Subchapter II of chapter 31 of title 5. 
(3) Subchapter VIII of chapter 33 of title 5. 
(4) Subchapter V of chapter 35 of title 5. 
(5) Subchapter II of chapter 43 of title 5. 
(6) Section 4507 of title 5. 
(7) Subchapter VIII of chapter 53 of title 5. 
(8) Subchapter V of chapter 75 of title 5. 
(b) Notwithstanding any other provision of law, no provision of 
title 5 or any other law pertaining to the civil service system which 
is inconsistent with any provision of section 7306 of this title or 
this chapter shall be considered to supersede, override, or otherwise 
modify such provision of that section or this chapter except to 
the extent that such provision of title 5 or of such other law 
specifically provides, by specific reference to a provision of this 
chapter, or such provision to be superseded, overridden, or otherwise 
modified. (Added Pub. L. 102-40, title IV, Sec. 401(b)(3)(B), 
May 7, 1991, 105 Stat. 231.) 


929 CH. 74-PERSONNEL Sec. 7426 

ï¿½ 7426. Retirement rights 

(a) Except as provided in subsection (b), persons appointed to 
the Administration shall be subject to the provisions of and entitled 
to benefits under subchapter III of chapter 83 of title 5 or subchapter 
II of chapter 84 of title 5, whichever is applicable. 
(b)(1) In computing the annuity under subchapter III of chapter 83, or 
subchapter II of chapter 84, of title 5 of an individual 
who retires under such subchapter (other than under section 8337 
or 8451 of such title) after December 31, 1981, and who served at 
any time on a less-than-full-time basis in a position in the 
Administration to which such individual was appointed under subchapter 
I- 

(A) for the purpose of determining such individualï¿½s average pay, as 
defined by section 8331(4) or 8401(3) of title 5, 
whichever is applicable, the annual rate of basic pay for full-
time service shall be deemed to be such individualï¿½s rate of 
basic pay; and 
(B) the amount of such individualï¿½s annuity as computed 
under section 8339 or 8415 of title 5 (before application of any 
reduction required by subsection (i) of section 8339) shall be 
multiplied by the fraction equal to the ratio that that individualï¿½s 
total full-time equivalent service bears to that individualï¿½s 
creditable service as determined under section 8332 or 8411 of 
title 5, whichever is applicable. 
(2) For the purposes of paragraph (1)(B), an individualï¿½s full-
time equivalent service is the individualï¿½s creditable service as 
determined under section 8332 or 8411 of title 5, whichever is 
applicable, except that any period of service of such individual served 
on a less-than-full-time basis shall be prorated based on the fraction 
such service bears to full-time service. For the purposes of the 
preceding sentence, full-time service shall be considered to be 80 
hours of service per biweekly pay period. 
(3) A survivor annuity computed under section 8341, or subchapter IV 
of chapter 84, of title 5 based on the service of an individual 
described in paragraph (1) shall be computed based upon 
such individualï¿½s annuity as determined in accordance with such 
paragraph. 
(c) The provisions of subsection (b) shall not apply to the part-
time service before April 7, 1986, of a registered nurse, physician 
assistant, or expanded-function dental auxiliary. In computing the 
annuity under the applicable provision of law specified in that 
subsection of an individual covered by the preceding sentence, the 
service described in that sentence shall be credited as full-time 
service. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(3)(B), May 7, 1991, 105 
Stat. 231; amended Pub. L. 102-585, title V, Sec. 522, Nov. 4, 1992, 
106 Stat. 4959; Pub. L. 106-398, Sec. 1[[div. A], title X, Sec. 
1087(g)(5)], Oct. 30, 2000, 114 Stat. 1654, 1654A-294; Pub. L. 
107-135, title I, Sec. 132, Jan. 23, 2002, 115 Stat. 2454.) 


Sec. 7431 CH. 74-PERSONNEL 930 

SUBCHAPTER III-PAY FOR PHYSICIANS AND DENTISTS 

ï¿½ 7431. Pay 

(a) ELEMENTS OF PAY.-Pay of physicians and dentists in the 
Veterans Health Administration shall consist of three elements as 
follows: 
(1) Base pay as provided for under subsection (b). 
(2) Market pay as provided for under subsection (c). 
(3) Performance pay as provided under subsection (d). 
(b) BASE PAY.-One element of pay for physicians and dentists 
shall be base pay. Base pay shall meet the following requirements: 
(1) Each physician and dentist is entitled to base pay determined 
under the Physician and Dentist Base and Longevity 
Pay Schedule. 
(2) The Physician and Dentist Base and Longevity Pay 
Schedule is composed of 15 rates of base pay designated, from 
the lowest rate of pay to the highest rate of pay, as base pay 
steps 1 through 15. 
(3) The rate of base pay payable to a physician or dentist 
is based on the total number of the years of the service of the 
physician or dentist in the Veterans Health Administration as 
follows: 
For a physician or dentist The rate of base pay is 
with total service of: the rate payable for: 
two years or less ............................................................................... step 1
more than 2 years and not more than 4 years .............................. step 2
more than 4 years and not more than 6 years .............................. step 3
more than 6 years and not more than 8 years .............................. step 4
more than 8 years and not more than 10 years ............................ step 5
more than 10 years and not more than 12 years .......................... step 6
more than 12 years and not more than 14 years .......................... step 7
more than 14 years and not more than 16 years .......................... step 8
more than 16 years and not more than 18 years .......................... step 9
more than 18 years and not more than 20 years .......................... step 10
more than 20 years and not more than 22 years .......................... step 11
more than 22 years and not more than 24 years .......................... step 12
more than 24 years and not more than 26 years .......................... step 13
more than 26 years and not more than 28 years .......................... step 14
more than 28 years .......................................................................... step 15.


(4) At the same time as rates of basic pay are increased 
for a year under section 5303 of title 5, the Secretary shall increase 
the amount of base pay payable under this subsection 
for that year by a percentage equal to the percentage by which 
rates of basic pay are increased under such section for that 
year. 
(c) MARKET PAY.-One element of pay for physicians and dentists shall 
be market pay. Market pay shall meet the following requirements: 
(1) Each physician and dentist is eligible for market pay. 
(2) Market pay shall consist of pay intended to reflect the 
recruitment and retention needs for the specialty or assignment (as 
defined by the Secretary) of a particular physician or 
dentist in a facility of the Department of Veterans Affairs. 
(3) The annual amount of the market pay payable to a 
physician or dentist shall be determined by the Secretary on 
a case-by-case basis. 

931 CH. 74-PERSONNEL Sec. 7431 

(4)(A) In determining the amount of market pay for physicians or 
dentists, the Secretary shall consult two or more national surveys of 
pay for physicians or dentists, as applicable, 
whether prepared by private, public, or quasi-public entities in 
order to make a general assessment of the range of pays payable to 
physicians or dentists, as applicable. 

(B)(i) In determining the amount of the market pay for a 
particular physician or dentist under this subsection, and in 
determining a tier (if any) to apply to a physician or dentist 
under subsection (e)(1)(B), the Secretary shall consult with and 
consider the recommendations of an appropriate panel or board 
composed of physicians or dentists (as applicable). 

(ii) A physician or dentist may not be a member of the 
panel or board that makes recommendations under clause (i) 
with respect to the market pay of such physician or dentist, as 
the case may be. 
(iii) The Secretary should, to the extent practicable, ensure 
that a panel or board consulted under this subparagraph includes 
physicians or dentists (as applicable) who are practicing 
clinicians and who do not hold management positions in the 
medical facility of the Department at which the physician or 
dentist subject to the consultation is employed. 
(5) The determination of the amount of market pay of a 
physician or dentist shall take into account- 
(A) the level of experience of the physician or dentist 
in the specialty or assignment of the physician or dentist; 
(B) the need for the specialty or assignment of the 
physician or dentist at the medical facility of the Department 
concerned; 
(C) the health care labor market for the specialty or 
assignment of the physician or dentist, which may cover 
any geographic area the Secretary considers appropriate 
for the specialty or assignment; 
(D) the board certifications, if any, of the physician or 
dentist; 
(E) the prior experience, if any, of the physician or 
dentist as an employee of the Veterans Health Administration; and 
(F) such other considerations as the Secretary considers appropriate. 
(6) The amount of market pay of a physician or dentist 
shall be evaluated by the Secretary not less often than once 
every 24 months. The amount of market pay may be adjusted 
as the result of an evaluation under this paragraph. A physician or 
dentist whose market pay is evaluated under this paragraph shall 
receive written notice of the results of such evaluation in accordance 
with procedures prescribed under section 
7433 of this title. 
(7) No adjustment of the amount of market pay of a physician or 
dentist under paragraph (6) may result in a reduction 
of the amount of market pay of the physician or dentist while 
in the same position or assignment at the medical facility of 
the Department concerned. 

Sec. 7431 CH. 74-PERSONNEL 932 

(d) PERFORMANCE PAY.-(1) One element of pay for physicians 
and dentists shall be performance pay. 
(2) Performance pay shall be paid to a physician or dentist on 
the basis of the physicianï¿½s or dentistï¿½s achievement of specific 
goals and performance objectives prescribed by the Secretary. 
(3) The Secretary shall ensure that each physician and dentist 
of the Department is advised of the specific goals or objectives that 
are to be measured by the Secretary in determining the eligibility 
of that physician or dentist for performance pay. 
(4) The amount of the performance pay payable to a physician 
or dentist may vary annually on the basis of individual achievement 
or attainment of the goals or objectives applicable to the physician 
or dentist under paragraph (2). 
(5) The amount of performance pay payable to a physician or 
dentist in a fiscal year shall be determined in accordance with 
regulations prescribed by the Secretary, but may not exceed the lower 
of- 
(A) $15,000; or 
(B) the amount equal to 7.5 percent of the sum of the base 
pay and the market pay payable to such physician or dentist 
in that fiscal year. 
(6) A failure to meet goals or objectives applicable to a physician or 
dentist under paragraph (2) may not be the sole basis for 
an adverse personnel action against that physician or dentist. 
(e) REQUIREMENTS AND LIMITATIONS ON TOTAL PAY.-(1)(A) 
Not less often than once every two years, the Secretary shall prescribe 
for Department-wide applicability the minimum and maximum amounts of 
annual pay that may be paid under this section 
to physicians and the minimum and maximum amounts of annual 
pay that may be paid under this section to dentists. 
(B) The Secretary may prescribe for Department-wide applicability under 
this paragraph separate minimum and maximum 
amounts of pay for a specialty or assignment. If the Secretary 
prescribes separate minimum and maximum amounts for a specialty 
or assignment, the Secretary may establish up to four tiers of minimum 
and maximum amounts for such specialty or assignment and 
prescribe for each tier a minimum amount and a maximum amount 
that the Secretary determines appropriate for the professional 
responsibilities, professional achievements, and administrative duties 
of the physicians or dentists (as the case may be) whose pay is set 
within that tier. 
(C) Amounts prescribed under this paragraph shall be published in the 
Federal Register, and shall not take effect until at 
least 60 days after the date of publication. 
(2) Except as provided in paragraph (3) and subject to paragraph (4), 
the sum of the total amount of the annual rate of base 
pay payable to a physician or dentist under subsection (b) and the 
market pay determined for the physician or dentist under subsection (c) 
may not be less than the minimum amount, nor more 
than the maximum amount, applicable to specialty or assignment 
of the physician or dentist under paragraph (1). 
(3) The sum of the total amount of the annual rate of base pay 
payable to a physician or dentist under subsection (b) and the market 
pay determined for the physician or dentist under subsection 

933 CH. 74-PERSONNEL Sec. 7433 

(c) may exceed the maximum amount applicable to the specialty or 
assignment of the physician or dentist under paragraph (1) as a result 
of an adjustment under paragraph (3) or (4) of subsection (b). 
(4) In no case may the total amount of compensation paid to 
a physician or dentist under this title in any year exceed the 
amount of annual compensation (excluding expenses) specified in 
section 102 of title 3. 
(f) TREATMENT OF PAY.-Pay under subsections (b) and (c) of 
this section shall be considered pay for all purposes, including 
retirement benefits under chapters 83 and 84 of title 5 and other 
benefits. 
(g) ANCILLARY EFFECTS OF DECREASES IN PAY.-(1) A decrease 
in pay of a physician or dentist resulting from an adjustment in the 
amount of market pay of the physician or dentist under subsection 
(c) shall not be treated as an adverse action. 
(2) If the pay of a physician or dentist is reduced under this 
subchapter as a result of an involuntary reassignment in connection 
with a disciplinary action taken against the physician or dentist, the 
involuntary reassignment shall be subject to appeal under 
subchapter V of this chapter. 
(h) DELEGATION OF RESPONSIBILITIES.-The Secretary may delegate to an 
appropriate officer or employee of the Department any 
responsibility of the Secretary under subsection (c), (d), or (e) 
except for the responsibilities of the Secretary under subsection 
(e)(1). 
(Added Pub. L. 108-445, Sec. 3(b), Dec. 3, 2004, 118 Stat. 2636) 

ï¿½ 7432. Pay of Under Secretary for Health 

(a) BASE PAY.-The base pay of the Under Secretary for Health 
shall be the annual rate of basic pay for positions at Level III of 
the Executive Schedule under section 5314 of title 5. 
(b) MARKET PAY.-(1) In the case of an Under Secretary for 
Health who is also a physician or dentist, in addition to the base 
pay specified in subsection (a) the Under Secretary for Health may 
also be paid the market pay element of pay of physicians and dentists 
under section 7431(c) of this title. 
(2) The amount of market pay of the Under Secretary for 
Health under this subsection shall be established by the Secretary. 
(3) In establishing the amount of market pay of the Under Secretary 
for Health under this subsection, the Secretary shall utilize 
an appropriate health care labor market selected by the Secretary 
for purposes of this subsection. 
(c) TREATMENT OF PAY.-Pay under this section shall be considered pay 
for all purposes, including retirement benefits under 
chapters 83 and 84 of title 5 and other benefits. 
(Added Pub. L. 108-445, Sec. 3(b), Dec. 3, 2004, 118 Stat. 2640.) 

ï¿½ 7433. Administrative matters 

(a) REGULATIONS.-(1) The Secretary shall prescribe regulations relating 
to the pay of physicians and dentists in the Veterans 
Health Administration under this subchapter. 
(2) In prescribing the regulations, the Secretary shall take into 
account the recommendations of the Under Secretary for Health on 
the administration of this subchapter. In formulating recommenda

Sec. 7451 CH. 74-PERSONNEL 934 

tions for the purpose of this paragraph, the Under Secretary shall 
request the views of representatives of labor organizations that are 
exclusive representatives of physicians and dentists of the Department 
and the views of representatives of professional organizations 
of physicians and dentists of the Department. 

(b) REPORTS.-(1) Not later than 18 months after the Secretary 
prescribes the regulations required by subsection (a), and annually 
thereafter for the next 5 years, the Secretary shall submit to the 
Committees on Veteransï¿½ Affairs of the Senate and House of 
Representatives a report on the pay of physicians and dentists in the 
Veterans Health Administration under this subchapter. 
(2) Each report under this subsection shall include the following: 
(A) A description of the rates of pay in effect during the 
current fiscal year with a comparison to the rates in effect during the 
fiscal year preceding the current fiscal year, set forth 
by facility and by specialty. 
(B) The number of physicians and dentists who left the 
Veterans Health Administration during the preceding fiscal 
year. 
(C) The number of unfilled physician positions and dentist 
positions in each specialty in the Veterans Health Administration, the 
average and maximum lengths of time that such positions have been 
unfilled, and an assessment of the reasons 
that such positions remain unfilled. 
(D) An assessment of the impact of implementation of this 
subchapter on efforts to recruit and retain physicians and dentists in 
the Veterans Health Administration. 
(3) The first two annual reports under this subsection shall 
also include a comparison of staffing levels, contract expenditures, 
and average salaries of physicians and dentists in the Veterans 
Health Administration for the current fiscal year and for the fiscal 
year preceding the current fiscal year, set forth by facility and by 
specialty. 
(Added Pub. L. 108-445, Sec. 3(b), Dec. 3, 2004, 118 Stat. 2640.) 

SUBCHAPTER IV-PAY FOR NURSES AND OTHER HEALTH
CARE PERSONNEL 


ï¿½ 7451. Nurses and other health-care personnel: competitive 
pay 

(a)(1) It is the purpose of this section to ensure, by a means 
providing increased responsibility and authority to directors of 
Department health-care facilities, that the rates of basic pay for 
health-care personnel positions described in paragraph (2) in each 
Department health-care facility (including the rates of basic pay of 
personnel employed in such positions on a part-time basis) are 
sufficient for that facility to be competitive, on the basis of pay and 
other employee benefits, with non-Department health-care facilities 
in the same labor-market area in the recruitment and retention of 
qualified personnel for those positions. 

(2) The health-care personnel positions referred to in paragraph (1) 
(hereinafter in this section referred to as ï¿½ï¿½covered positionsï¿½ï¿½) 
are the following: 

935 CH. 74-PERSONNEL Sec. 7451 

(A) Registered nurse. 
(B) Such positions referred to in paragraphs (1) and (3) of 
section 7401 of this title (other than the positions of physician, 
dentist, and registered nurse) as the Secretary may determine 
upon the recommendation of the Under Secretary for Health. 
(3)(A) Except as provided in subparagraph (B), the rates of 
basic pay for covered positions in the Department shall be established 
and adjusted in accordance with this section instead of subsection 
(b)(1) of section 7404 of this title or chapter 53 of title 5. 

(B) Under such regulations as the Secretary shall prescribe, 
the Secretary shall establish and adjust the rates of basic pay for 
covered positions at the following health-care facilities in order to 
provide rates of basic pay that enable the Secretary to recruit and 
retain sufficient numbers of health-care personnel in such positions 
at those facilities: 
(i) The Veterans Memorial Medical Center in the Republic 
of the Philippines. 
(ii) Department of Veterans Affairs health-care facilities located 
outside the contiguous States, Alaska, and Hawaii. 
(4) The Secretary, after receiving the recommendation of the 
Under Secretary for Health, shall prescribe regulations setting 
forth criteria and procedures to carry out this section and section 
7452 of this title. Requirements in such regulations for directors to 
provide and maintain documentation of actions taken under this 
section shall require no more documentation than the minimum essential 
for responsible administration. 
(b) The Secretary shall maintain the five grade levels for 
nurses employed by the Department under section 7401(1) of this 
title as specified in the Nurse Schedule in section 7404(b) of this 
title. The Secretary shall, pursuant to regulations prescribed to 
carry out this subchapter, establish grades for other covered positions 
as the Secretary considers appropriate. 
(c)(1) For each grade in a covered position, there shall be a 
range of basic pay. The maximum rate of basic pay for a grade 
shall be 133 percent of the minimum rate of basic pay for the 
grade, except that, if the Secretary determines that a higher maximum 
rate is necessary with respect to any such grade in order to 
recruit and retain a sufficient number of high-quality health-care 
personnel, the Secretary may raise the maximum rate of basic pay 
for that grade to a rate not in excess of 175 percent of the minimum 
rate of basic pay for the grade. Whenever the Secretary exercises the 
authority under the preceding sentence to establish the 
maximum rate of basic pay at a rate in excess of 133 percent of 
the minimum rate for that grade, the Secretary shall, in the next 
annual report required by subsection (g), provide justification for 
doing so to the Committees on Veteransï¿½ Affairs of the Senate and 
House of Representatives. 

(2) The maximum rate of basic pay for any grade for a covered 
position may not exceed the maximum rate of basic pay established 
for positions in level V of the Executive Schedule under section 
5316 of title 5. 
(3) The range of basic pay for each such grade shall be divided 
into equal increments, known as ï¿½ï¿½stepsï¿½ï¿½. The Secretary shall 
prescribe the number of steps. Each grade in a covered position shall 

Sec. 7451 CH. 74-PERSONNEL 936 

have the same number of steps. Rates of pay within a grade may 
not be established at rates other than whole steps. Any increase 
(other than an adjustment under subsection (d)) within a grade in 
the rate of basic pay payable to an employee in a covered position 
shall be by one or more of such step increments. 

(d)(1) Subject to subsection (e), the rates of basic pay for each 
grade in a covered position shall be adjusted periodically in 
accordance with this subsection in order to achieve the purposes of this 
section. Such adjustments shall be made- 

(A) whenever there is an adjustment under section 5303 of 
title 5 in the rates of pay under the General Schedule, with the 
adjustment under this subsection to have the same effective 
date and to be by the same percentage as the adjustment in 
the rates of basic pay under the General Schedule; and 
(B) at such additional times as the director of a Department health-care 
facility, with respect to employees in that 
grade at that facility, or the Under Secretary for Health, with 
respect to covered Regional and Central Office employees in 
that grade, determines. 
(2) An adjustment in rates of basic pay under this subsection 
for a grade shall be carried out by adjusting the amount of the 
minimum rate of basic pay for that grade in accordance with paragraph 
(3) and then adjusting the other rates for that grade to conform to the 
requirements of subsection (c). Except as provided in 
paragraph (1)(A), such an adjustment in the minimum rate of basic 
pay for a grade shall be made by the director of a Department 
health-care facility so as to achieve consistency with the beginning 
rate of compensation for corresponding health-care professionals in 
the Bureau of Labor Statistics (BLS) labor-market area of that facility. 
(3)(A) In the case of a Department health-care facility located 
in an area for which there is current information, based upon an 
industry-wage survey by the Bureau of Labor Statistics for that 
labor market, on compensation for corresponding health-care 
professionals for the BLS labor-market area of that facility, the 
director of the facility concerned shall use that information as the 
basis for making adjustments in rates of pay under this subsection. 
Whenever the Bureau of Labor Statistics releases the results of a 
new industry-wage survey for that labor market that includes 
information on compensation for corresponding health-care 
professionals, the director of that facility shall determine, not later 
than 30 days after the results of the survey are released, whether an 
adjustment in rates of pay for employees at that facility for any 
covered position is necessary in order to meet the purposes of this 
section. If the director determines that such an adjustment is 
necessary, the adjustment, based upon the information determined in 
the survey, shall take effect on the first day of the first pay period 
beginning after that determination. 

(B) In the case of a Department health-care facility located in 
an area for which the Bureau of Labor Statistics does not have current 
information on compensation for corresponding health-care 
professionals for the labor-market area of that facility for any 
covered position, the director of that facility shall conduct a survey 
in accordance with this subparagraph and shall adjust the amount of 

937 CH. 74-PERSONNEL Sec. 7451 

the minimum rate of basic pay for grades in that covered position 
at that facility based upon that survey. To the extent practicable, 
the director shall use third-party industry wage surveys to meet 
the requirements of the preceding sentence. Any such survey shall 
be conducted in accordance with regulations prescribed by the 
Secretary. Those regulations shall be developed in consultation with 
the Secretary of Labor in order to ensure that the director of a 
facility collects information that is valid and reliable and is 
consistent with standards of the Bureau. The survey should be 
conducted using methodology comparable to that used by the Bureau 
in making industry-wage surveys except to the extent determined 
infeasible by the Secretary. To the extent practicable, all surveys 
conducted pursuant to this subparagraph or subparagraph (A) shall 
include the collection of salary midpoints, actual salaries, lowest 
and highest salaries, average salaries, bonuses, incentive pays, 
differential pays, actual beginning rates of pay, and such other 
information needed to meet the purpose of this section. Upon conducting 
a survey under this subparagraph, the director concerned shall 
determine, not later than 30 days after the date on which the 
collection of information through the survey is completed or published, 
whether an adjustment in rates of pay for employees at that facility 
for any covered position is necessary in order to meet the purposes of 
this section. If the director determines that such an adjustment is 
necessary, the adjustment, based upon the information determined in 
the survey, shall take effect on the first day of the first 
pay period beginning after that determination. 

(C)(i) A director of a Department health-care facility may use 
data on the compensation paid to certified registered nurse 
anesthetists who are employed on a salary basis by entities that provide 
anesthesia services through certified registered nurse anesthetists 
in the labor-market area only if the director- 

(I) has conducted a survey of compensation for certified 
registered nurse anesthetists in the local labor-market area of 
the facility under subparagraph (B); 
(II) has used all available administrative authority with 
regard to collection of survey data; and 
(III) makes a determination (under regulations prescribed 
by the Secretary) that such survey methods are insufficient to 
permit the adjustments referred to in subparagraph (B) for 
such nurse anesthetists employed by the facility. 
(ii) For the purposes of this subparagraph, certified registered 
nurse anesthetists who are so employed by such entities shall be 
deemed to be corresponding health-care professionals to the certified 
registered nurse anesthetists employed by the facility. 
(D) The Under Secretary for Health shall prescribe regulations 
providing for the adjustment of the rates of basic pay for Regional 
and Central Office employees in covered positions in order to assure 
that those rates are sufficient and competitive. 
(E) The director of a facility or Under Secretary for Health may 
not adjust rates of basic pay under this subsection for any pay 
grade so that the minimum rate of basic pay for that grade is 
greater than the beginning rates of compensation for corresponding 
positions at non-Department health-care facilities. 

Sec. 7451 CH. 74-PERSONNEL 938 

(4) If the director of a Department health-care facility, or the 
Under Secretary for Health with respect to Regional and Central 
Office employees, determines, after any survey under paragraph 
(3)(B), that it is not necessary to adjust the rates of basic pay for 
employees in a grade of a covered position at that facility in order 
to carry out the purpose of this section, such an adjustment for 
employees at that facility in that grade shall not be made. 
(5) Information collected by the Department in surveys conducted under 
this subsection is not subject to disclosure under section 552 of 
title 5. 
(6) In this subsection- 
(A) The term ï¿½ï¿½beginning rate of compensationï¿½ï¿½, with respect to 
health-care personnel positions in non-Department 
health-care facilities corresponding to a grade of a covered position, 
means the sum of- 
(i) the minimum rate of pay established for personnel 
in such positions who have education, training, and experience 
equivalent or similar to the education, training, and 
experience required for health-care personnel employed in 
the same category of Department covered positions; and 
(ii) other employee benefits for those positions to the 
extent that those benefits are reasonably quantifiable. 
(B) The term ï¿½ï¿½correspondingï¿½ï¿½, with respect to health-care 
personnel positions in non-Department health-care facilities, 
means those positions for which the education, training, and 
experience requirements are equivalent or similar to the education, 
training, and experience requirements for health-care 
personnel positions in Department health-care facilities. 
(e)(1) An adjustment in a rate of basic pay under subsection (d) 
may not reduce the rate of basic pay applicable to any grade of a 
covered position. 

(2) The director of a Department health-care facility, in determining 
whether to carry out a wage survey under subsection (d)(3) 
with respect to rates of basic pay for a grade of a covered position, 
may not consider as a factor in such determination the absence of 
a current recruitment or retention problem for personnel in that 
grade of that position. The director shall make such a determination 
based upon whether, in accordance with criteria established by 
the Secretary, there is a significant pay-related staffing problem at 
that facility in any grade for a position. If the director determines 
that there is such a problem, or that such a problem is likely to 
exist in the near future, the Director shall provide for a wage survey 
in accordance with subsection (d)(3). 
(3) The Under Secretary for Health may, to the extent necessary to 
carry out the purposes of subsection (d), modify any determination 
made by the director of a Department health-care facility with respect 
to adjusting the rates of basic pay applicable to 
covered positions. If the determination of the director would result 
in an adjustment in rates of basic pay applicable to covered positions, 
any action by the Under Secretary under the preceding sentence shall 
be made before the effective date of such pay adjustment. Upon such 
action by the Under Secretary, any adjustment 
shall take effect on the first day of the first pay period beginning 
after such action. The Secretary shall ensure that the Under Sec

939 CH. 74-PERSONNEL Sec. 7451 

retary establishes a mechanism for the timely exercise of the 
authority in this paragraph. 

(4) Each director of a Department health-care facility shall provide to 
the Secretary, not later than July 31 each year, a report on 
staffing for covered positions at that facility. The report shall 
include the following: 
(A) Information on turnover rates and vacancy rates for 
each covered position, including a comparison of those rates 
with the rates for the preceding three years. 
(B) The directorï¿½s findings concerning the review and evaluation of the 
facilityï¿½s staffing situation, including whether there is, or is likely 
to be, in accordance with criteria established by the Secretary, a 
significant pay-related staffing problem at that facility for any 
covered position and, if so, whether a wage survey was conducted, or 
will be conducted with respect to that position. 
(C) In any case in which the director conducts such a wage 
survey during the period covered by the report, information describing 
the survey and any actions taken or not taken based 
on the survey, and the reasons for taking (or not taking) such 
actions. 
(D) In any case in which the director, after finding that 
there is, or is likely to be, in accordance with criteria established 
by the Secretary, a significant pay-related staffing problem at that 
facility for any covered position, determines not to 
conduct a wage survey with respect to that position, a statement of 
the reasons why the director did not conduct such a 
survey. 
(5) Not later than September 30 of each year, the Secretary 
shall submit to the Committees on Veteransï¿½ Affairs of the Senate 
and House of Representatives a report on staffing for covered positions 
at Department health care facilities. Each such report shall 
include the following: 
(A) A summary and analysis of the information contained 
in the most recent reports submitted by facility directors under 
paragraph (4). 
(B) The information for each such facility specified in paragraph (4). 
(f) Not later than March 1 of each year, the Secretary shall 
submit to the Committees on Veteransï¿½ Affairs of the Senate and 
House of Representatives a report regarding any pay adjustments 
under the authority of subsection (d) effective during the 12 
months preceding the submission of the report. Each such report 
shall set forth, by health-care facility, the percentage of such 
increases and, in any case in which no increase was made, the basis 
for not providing an increase. 
(g) For the purposes of this section, the term ï¿½ï¿½health-care facilityï¿½ï¿½ 
means a medical center, an independent outpatient clinic, or 
an independent domiciliary facility. 
(Added Pub. L. 101-366, title I, Sec. 102(b), Aug. 15, 1990, 104 Stat. 
431, Sec. 4141; renumbered Sec. 7451 and amended Pub. L. 102-40, 
title III, Sec. 301(b), (c), title IV, Sec. 401(c)(1)(A), (2), May 7, 
1991, 105 Stat. 208, 238; Pub. L. 102-405, title III, Sec. 302(c)(1), 
Oct. 9, 1992, 106 Stat. 1984; Pub. L. 102-585, title III, Sec. 301(b)
303, 304(b), 307, Nov. 4, 1992, 106 Stat. 4951-4953; Pub. L. 103-446, 
title XII, Sec. 1201(c)(7), (e)(23), Nov. 2, 1994, 108 Stat. 4684, 
4686; Pub. L. 104-110, title I, Sec. 


Sec. 7452 CH. 74-PERSONNEL 940 

101(i), Feb. 13, 1996, 110 Stat. 768; Pub. L. 106-419, title II, Sec. 
201(a), Nov. 1, 2000, 114 Stat. 1838; Pub. L. 107-135, title I, Sec. 
133, Jan. 23, 2002, 115 Stat. 
2454.) 

ï¿½ 7452. Nurses and other health-care personnel: administration of pay 

(a)(1) Regulations prescribed under section 7451(a) of this title 
shall provide that whenever an employee in a covered position is 
given a new duty assignment which is a promotion, the rate of 
basic pay of that employee shall be increased at least one step 
increment in that employeeï¿½s grade. 

(2) A nurse serving in a head nurse position shall while so 
serving receive basic pay at a rate two step increments above the 
rate that would otherwise be applicable to the nurse. If such a 
nurse is in the highest or next-to-highest step for that nurseï¿½s 
grade, the preceding sentence shall be applied by extrapolation to 
create additional steps only for the purposes of this paragraph. The 
limitation in section 7451(c)(1) of this title shall not apply with 
respect to increased basic pay under this paragraph. 
(3) An employee in a covered position who is promoted to the 
next higher grade shall be paid in that grade at a step having a 
rate of basic pay that is greater than the rate of basic pay applicable 
to the employee in a covered position on the day before the effective 
date of the promotion. 
(b)(1) Under regulations which the Secretary prescribes for the 
administration of this section, the director of a Department health-
care facility (A) shall pay a cash bonus (in an amount to be 
determined by the director not to exceed $2,000) to an employee in a 
covered position at that facility who becomes certified in a specialty 
recognized by the Department, and (B) may provide such a bonus 
to an employee in such a position who has demonstrated both exemplary 
job performance and exemplary job achievement. The authority of the 
Secretary under this subsection is in addition to any 
other authority of the Secretary to provide job performance incentives. 

(2) The Secretary shall include in the annual report under section 
7451(g) of this title a discussion of the use during the period 
covered by the report of the payment of bonuses under this subsection 
and other job performance incentives 
(c)(1) The Secretary shall provide (in regulations prescribed for 
the administration of this section) that the director of a Department 
health-care facility, in making a new appointment of a person 
under section 7401(1) of this title as an employee in a covered 
position for employment at that facility, may make that appointment 
at a rate of pay described in paragraph (3) without being subject 
to a requirement for prior approval at any higher level of authority 
within the Department in any case in which the director determines that 
it is necessary to do so in order to obtain the services 
of employees in covered positions in cases in which vacancies exist 
at that health-care facility. 

(2) Such a determination may be made by the director of a 
health-care facility only in order to recruit employees in covered 
positions with specialized skills, especially employees with skills 
which are especially difficult or demanding. 

941 CH. 74-PERSONNEL Sec. 7452 

(3) A rate of pay referred to in paragraph (1) is a rate of basic 
pay in excess of the minimum rate of basic pay applicable to the 
grade in which the appointment is made (but not in excess of the 
maximum rate of basic pay for that grade). 
(4) Whenever the director of a health-care facility makes an 
appointment described in paragraph (1) without prior approval at a 
higher level of authority within the Department, the director 
shall- 
(A) state in a document the reasons for employing the employee in a 
covered position at a rate of pay in excess of the 
minimum rate of basic pay applicable to the grade in which the 
employee is appointed (and retain that document on file); and 
(B) in the first budget documents submitted to the Secretary by the 
director after the employee is employed, include 
documentation for the need for such increased rates of basic 
pay described in clause (A). 
(5) Whenever the director of a health-care facility makes an 
appointment described in paragraph (1) on the basis of a determination 
described in paragraph (2), the covered employee appointed 
may continue to receive pay at a rate higher than that which would 
otherwise be applicable to that employee only so long as the employee 
continues to serve in a position requiring the specialized 
skills with respect to which the determination was made. 
(d) Whenever the director of a health-care facility makes an 
appointment described in subsection (c)(1), the director may (without 
a regard to any requirement for prior approval at any higher 
level of authority within the Department) increase the rate of pay 
of other employees in the same covered position at that facility who 
are in the grade in which the appointment is made and are serving 
in a position requiring the specialized skills with respect to which 
the determination under subsection (c)(2) concerning the appointment 
was made. Any such increase shall continue in effect with respect to 
any employee only so long as the employee continues to 
serve in such a position. 
(e) An employee in a covered position employed under section 
7401(1) of this title who (without a break in employment) transfers 
from one Department health-care facility to another may not be reduced 
in grade or step within grade (except pursuant to a disciplinary action 
otherwise authorized by law) if the duties of the position to which the 
employee transfers are similar to the duties of 
the position from which the employee transferred. The rate of basic 
pay of such employee shall be established at the new health-care 
facility in a manner consistent with the practices at that facility for 
an employee of that grade and step, except that in the case of an 
employee whose transfer (other than pursuant to a disciplinary action 
otherwise authorized by law) to another health-care facility is 
at the request of the Secretary, the Secretary may provide that for 
at least the first year following such transfer the employee shall be 
paid at a rate of basic pay up to the rate applicable to such employee 
before the transfer, if the Secretary determines that such 
rate of pay is necessary to fill the position. Whenever the Secretary 
exercises the authority under the preceding sentence relating to the 
rate of basic pay of a transferred employee, the Secretary shall, in 

Sec. 7453 CH. 74-PERSONNEL 942 

the next annual report required under section 7451(g) of this title, 
provide justification for doing so. 

(f) In this section, the term ï¿½ï¿½covered positionï¿½ï¿½ has the meaning 
given that term in section 7451 of this title. 
(g)(1) In order to recruit and retain highly qualified Department 
nurse executives, the Secretary may, in accordance with regulations 
prescribed by the Secretary, pay special pay to the nurse executive at 
each location as follows: 

(A) Each Department health care facility. 
(B) The Central Office. 
(2) The amount of special pay paid to a nurse executive under 
paragraph (1) shall be not less than $10,000 or more than $25,000. 
(3) The amount of special pay paid to a nurse executive under 
paragraph (1) shall be based on factors such as the grade of the 
nurse executive position, the scope and complexity of the nurse 
executive position, the personal qualifications of the nurse executive, 
the characteristics of the health care facility concerned, the nature 
and number of specialty care units at the health care facility 
concerned, demonstrated difficulties in recruitment and retention of 
nurse executives at the health care facility concerned, and such 
other factors as the Secretary considers appropriate. 
(4) Special pay paid to a nurse executive under paragraph (1) 
shall be in addition to any other pay (including basic pay) and 
allowances to which the nurse executive is entitled, and shall be 
considered pay for all purposes, including retirement benefits under 
chapters 83 and 84 of title 5, and other benefits, but shall not be 
considered basic pay for purposes of adverse actions under subchapter V 
of this chapter. 
(Added Pub. L. 101-366, title I, Sec. 102(b), Aug. 15, 1990, 104 Stat. 
435, Sec. 4142; renumbered Sec. 7452 and amended Pub. L. 102-40, 
title III, Sec. 301(d), title IV, Sec. 401(c)(1)(A), (3), May 7, 1991, 
105 Stat. 208, 238; Pub. L. 102-585, title III, Sec. 304(a), Nov. 4, 
1992, 106 Stat. 4952; Pub. L. 108-445, Sec. 5, Dec. 3, 2004, 118 Stat. 
2645.) 

ï¿½ 7453. Nurses: additional pay 

(a) In addition to the rate of basic pay provided for nurses, a 
nurse shall receive additional pay as provided by this section. 
(b) A nurse performing service on a tour of duty, any part of 
which is within the period commencing at 6 postmeridian and ending at 6 
antemeridian, shall receive additional pay for each hour 
of service on such tour at a rate equal to 10 percent of the nurseï¿½s 
hourly rate of basic pay if at least four hours of such tour fall 
between 6 postmeridian and 6 antemeridian. When less than four 
hours of such tour fall between 6 postmeridian and 6 antemeridian, 
the nurse shall be paid the differential for each hour of service
performed between those hours. 
(c) A nurse performing service on a tour of duty, any part of 
which is within the period commencing at midnight Friday and 
ending at midnight Sunday, shall receive additional pay for each 
hour of service on such tour at a rate equal to 25 percent of such 
nurseï¿½s hourly rate of basic pay. 
(d) A nurse performing service on a holiday designated by Federal 
statute or Executive order shall receive for each hour of such 
service the nurseï¿½s hourly rate of basic pay, plus additional pay at 

943 CH. 74-PERSONNEL Sec. 7453 

a rate equal to such hourly rate of basic pay, for that holiday 
service, including overtime service. Any service required to be 
performed by a nurse on such a designated holiday shall be deemed 
to be a minimum of two hours in duration. 

(e)(1) A nurse performing officially ordered or approved hours 
of service in excess of 40 hours in an administrative workweek, or 
in excess of eight hours in a day, shall receive overtime pay for 
each hour of such additional service. The overtime rates shall be 
one and one-half times such nurseï¿½s hourly rate of basic pay. 

(2) For the purposes of this subsection, overtime must be of at 
least 15 minutes duration in a day to be creditable for overtime 
pay. 
(3) Compensatory time off in lieu of pay for service performed 
under the provisions of this subsection shall not be permitted, except 
as voluntarily requested in writing by the nurse in question. 
(4) Any excess service performed under this subsection on a 
day when service was not scheduled for such nurse, or for which 
such nurse is required to return to the nurseï¿½s place of employment, 
shall be deemed to be a minimum of two hours in duration. 
(5) For the purposes of this subsection, the period of a nurseï¿½s 
officially ordered or approved travel away from such nurseï¿½s duty 
station may not be considered to be hours of service unless- 
(A) such travel occurs during such nurseï¿½s tour of duty; or 
(B) such travel- 
(i) involves the performance of services while traveling, 
(ii) is incident to travel that involves the performance 
of services while traveling, 
(iii) is carried out under arduous conditions as determined by the 
Secretary, or 
(iv) results from an event which could not be scheduled or controlled 
administratively. 
(f) For the purpose of computing the additional pay provided 
by subsection (b), (c), (d), or (e), a nurseï¿½s hourly rate of basic pay 
shall be derived by dividing such nurseï¿½s annual rate of basic pay 
by 2,080. 
(g) When a nurse is entitled to two or more forms of additional 
pay under subsection (b), (c), (d), or (e) for the same period of 
service, the amounts of such additional pay shall be computed 
separately on the basis of such nurseï¿½s hourly rate of basic pay, except 
that no overtime pay as provided in subsection (e) shall be payable 
for overtime service performed on a holiday designated by Federal 
statute or Executive order in addition to pay received under subsection 
(d) for such service. 
(h) A nurse who is officially scheduled to be on call outside 
such nurseï¿½s regular hours or on a holiday designated by Federal 
statute or Executive order shall be paid for each hour of such on-
call duty, except for such time as such nurse may be called back 
to work, at a rate equal to 10 percent of the hourly rate for excess 
service as provided in subsection (e). 
(i) Any additional pay paid pursuant to this section shall not 
be considered as basic pay for the purposes of the following provisions 
of title 5 (and any other provision of law relating to benefits 
based on basic pay): 

Sec. 7454 CH. 74-PERSONNEL 944 

(1) Subchapter VI of chapter 55. 
(2) Section 5595. 
(3) Chapters 81, 83, 84, and 87. 
(j)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary may increase the rates of additional 
pay authorized under subsections (b) through (h) if the Secretary 
determines that it is necessary to do so in order to obtain or retain 
the services of nurses. 

(2) An increase under paragraph (1) in rates of additional 
pay- 
(A) may be made at any specific Department health-care 
facility in order to provide nurses, or any category of nurses, 
at such facility additional pay in an amount competitive with, 
but not exceeding, the amount of the same type of pay that is 
paid to the same category of nurses at non-Federal health-care 
facilities in the same geographic area as such Department 
health-care facility (based upon a reasonably representative 
sampling of such non-Federal facilities); and 
(B) may be made on a nationwide, local, or other geographic basis if 
the Secretary finds that such an increase is 
justified on the basis of a review of the need for such increase 
(based upon a reasonably representative sampling of non-Federal 
health-care facilities in the geographic area involved). 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(4), May 7, 1991, 105 
Stat. 232; amended Pub. L. 103-446, title XII, Sec. 1201(e)(24), 
(g)(6), Nov. 2, 1994, 108 Stat. 4686, 
4687.) 

ï¿½ 7454. Physician assistants and other health care professionals: 
additional pay 

(a) Physician assistants and expanded-function dental auxiliaries shall 
be entitled to additional pay on the same basis as provided for nurses 
in section 7453 of this title. 
(b)(1) When the Secretary determines it to be necessary in 
order to obtain or retain the services of individuals in positions 
listed in section 7401(3) of this title, the Secretary may, on a 
nationwide, local, or other geographic basis, pay persons employed in 
such positions additional pay on the same basis as provided for 
nurses in section 7453 of this title. 

(2) Health care professionals employed in positions referred to 
in paragraph (1) shall be entitled to additional pay on the same 
basis as provided for nurses in section 7453(c) of this title. 
(3) Employees appointed under section 7408 of this title shall 
be entitled to additional pay on the same basis as provided for 
nurses in section 7453(c) of this title. 
(c) The Secretary shall prescribe by regulation standards for 
compensation and payment under this section.
(Added Pub. L. 102-40, title IV, Sec. 401(b)(4), May 7, 1991, 105 
Stat. 234; Pub. 


L. 107-135, title I, Sec. 121(a), Jan. 23, 2002, 115 Stat. 2450; 
Pub. L. 108-170, title 
III, Secs. 301(d), 303(a), Dec. 6, 2003, 117 Stat. 2057, 2058.) 
ï¿½ 7455. Increases in rates of basic pay 

(a)(1) Subject to subsections (b), (c), and (d), when the Secretary 
determines it to be necessary in order to obtain or retain the 
services of persons described in paragraph (2), the Secretary may 


945 CH. 74-PERSONNEL Sec. 7455 

increase the minimum, intermediate, or maximum rates of basic 
pay authorized under applicable statutes and regulations. Any 
increase in such rates of basic pay- 

(A) may be made on a nationwide basis, local basis, or 
other geographic basis; and 
(B) may be made- 
(i) for one or more of the grades listed in the schedules 
in subsection (b)(1) of section 7404 of this title; 
(ii) for one or more of the health personnel fields within such 
grades; or 
(iii) for one or more of the grades of the General 
Schedule under section 5332 of title 5. 
(2) Paragraph (1) applies to the following: 
(A) Individuals employed in positions listed in paragraphs 
(1) and (3) of section 7401 of this title. 
(B) Health-care personnel who- 
(i) are employed in the Administration (other than administrative, 
clerical, and physical plant maintenance and 
protective services employees); 
(ii) are paid under the General Schedule pursuant to 
section 5332 of title 5; 
(iii) are determined by the Secretary to be providing 
either direct patient-care services or services incident to 
direct patient-care services; and 
(iv) would not otherwise be available to provide medical care and 
treatment for veterans. 
(C) Employees who are Department police officers providing services 
under section 902 of this title. 
(b) Increases in rates of basic pay may be made under subsection (a) 
only in order- 
(1) to provide pay in an amount competitive with, but not 
exceeding, the amount of the same type of pay paid to the 
same category of personnel at non-Federal facilities in the 
same labor market; 
(2) to achieve adequate staffing at particular facilities; or 
(3) to recruit personnel with specialized skills, especially 
those with skills which are especially difficult or demanding. 
(c)(1) The amount of any increase under subsection (a) in the 
maximum rate for any grade may not (except in the case of nurse 
anesthetists, pharmacists, and licensed physical therapists) exceed 
by two times the amount by which the maximum for such grade 
(under applicable provisions of law other than this subsection) 
exceeds the minimum for such grade (under applicable provisions of 
law other than this subsection), and the maximum rate as so increased 
may not exceed the rate paid for individuals serving as Assistant 
Under Secretary for Health. 

(2) Whenever the amount of an increase under subsection (a) 
results in a rate of basic pay for a position being equal to or greater 
than the amount that is 94 percent of the maximum amount permitted 
under paragraph (1), the Secretary shall promptly notify the 
Committees on Veteransï¿½ Affairs of the Senate and House of 
Representatives of the increase and the amount thereof. 
(d)(1) In the exercise of the authority provided in subsection (a) 
with respect to personnel described in subparagraph (B) or (C) of 


Sec. 7456 CH. 74-PERSONNEL 946 

paragraph (2) of that subsection to increase the rates of basic pay 
for any category of personnel not appointed under subchapter I, the 
Secretary shall, not less than 45 days before the effective date of 
a proposed increase, notify the President of the Secretaryï¿½s intention 
to provide such an increase. 

(2) Such a proposed increase shall not take effect if, before the 
effective date of the proposed increase, the President disapproves 
such increase and provides the appropriate committees of the Congress 
with a written statement of the Presidentï¿½s reasons for such 
disapproval. 
(3) If, before that effective date, the President approves such 
increase, the Secretary may advance the effective date to any date 
not earlier than the date of the Presidentï¿½s approval. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(4), May 7, 1991, 105 
Stat. 234; amended Pub. L. 102-83, Sec. 2(c)(7), Aug. 6, 1991, 105 
Stat. 402; Pub. L. 102-405, title II, Sec. 201, title III, Sec. 
302(c)(1), Oct. 9, 1992, 106 Stat. 1983, 1984; Pub. L. 106- 
419, title II, Sec. 203, Nov. 1, 2000, 114 Stat. 1841.) 

ï¿½ 7456. Nurses: special rules for weekend duty 

(a) Subject to subsection (b), if the Secretary determines it to 
be necessary in order to obtain or retain the services of nurses at 
any Department health-care facility, the Secretary may provide, in 
the case of nurses appointed under this chapter and employed at 
such facility, that such nurses who work two regularly scheduled 
12-hour tours of duty within the period commencing at midnight 
Friday and ending at midnight the following Sunday shall be considered 
for all purposes (except computation of full-time equivalent 
employees for the purposes of determining compliance with personnel 
ceilings) to have worked a full 40-hour basic workweek. 
(b)(1) Basic and additional pay for a nurse who is considered 
under subsection (a) to have worked a full 40-hour basic workweek 
shall be subject to paragraphs (2) and (3). 

(2) The hourly rate of basic pay for such a nurse for service 
performed as part of a regularly scheduled 12-hour tour of duty 
within the period commencing at midnight Friday and ending at 
midnight the following Sunday shall be derived by dividing the 
nurseï¿½s annual rate of basic pay by 1,248. 
(3)(A) Such a nurse who performs a period of service in excess 
of such nurseï¿½s regularly scheduled two 12-hour tours of duty is 
entitled to overtime pay under section 7453(e) of this title, or other 
applicable law, for officially ordered or approved service performed 
in excess of eight hours on a day other than a Saturday or Sunday 
or in excess of 24 hours within the period commencing at midnight 
Friday and ending at midnight the following Sunday. 

(B) Except as provided in subparagraph (C), a nurse to whom 
this subsection is applicable is not entitled to additional pay under 
section 7453 of this title, or other applicable law, for any period 
included in a regularly scheduled 12-hour tour of duty. 
(C) If the Secretary determines it to be further necessary in 
order to obtain or retain the services of nurses at a particular 
facility, a nurse to whom this paragraph is applicable who performs 
service in excess of such nurseï¿½s regularly scheduled two 12-hour 
tours of duty may be paid overtime pay under section 7453(e) of 
this title, or other applicable law, for all or part of the hours of 
offi

947 CH. 74-PERSONNEL Sec. 7456A 

cially ordered or approved service performed by such nurse in 
excess of 40 hours during an administrative workweek. 

(c) A nurse described in subsection (b)(1) who is absent on approved 
sick leave or annual leave during a regularly scheduled 12hour tour 
of duty shall be charged for such leave at a rate of five 
hours of leave for three hours of absence. 
(d) The Secretary shall prescribe regulations for the implemen
tation of this section.
(Added Pub. L. 102-40, title IV, Sec. 401(b)(4), May 7, 1991, 105 
Stat. 235.)


ï¿½ 7456A. Nurses: alternate work schedules 

(a) APPLICABILITY.-This section applies to registered nurses 
appointed under this chapter. 
(b) 36/40 WORK SCHEDULE.-(1)(A) Subject to paragraph (2), if 
the Secretary determines it to be necessary in order to obtain or 
retain the services of registered nurses at any Department health-
care facility, the Secretary may provide, in the case of nurses 
employed at such facility, that such nurses who work three regularly 
scheduled 12-hour tours of duty within a work week shall be considered 
for all purposes to have worked a full 40-hour basic work 
week. 
(B) A nurse who works under the authority in subparagraph 
(A) shall be considered a 0.90 full-time equivalent employee in 
computing full-time equivalent employees for the purposes of 
determining compliance with personnel ceilings. 
(2)(A) Basic and additional pay for a nurse who is considered 
under paragraph (1) to have worked a full 40-hour basic work week 
shall be subject to subparagraphs (B) and (C). 

(B) The hourly rate of basic pay for a nurse covered by this 
paragraph for service performed as part of a regularly scheduled 
36-hour tour of duty within the work week shall be derived by 
dividing the nurseï¿½s annual rate of basic pay by 1,872. 
(C) The Secretary shall pay overtime pay to a nurse covered by 
this paragraph who- 
(i) performs a period of service in excess of such nurseï¿½s 
regularly scheduled 36-hour tour of duty within an administrative 
work week; 
(ii) for officially ordered or approved service, performs a 
period of service in excess of 8 hours on a day other than a day 
on which such nurseï¿½s regularly scheduled 12-hour tour of duty 
falls; 
(iii) performs a period of service in excess of 12 hours for 
any day included in the regularly scheduled 36-hour tour of 
duty work week; or 
(iv) performs a period of service in excess of 40 hours during an 
administrative work week. 
(D) The Secretary may provide a nurse to whom this subsection applies 
with additional pay under section 7453 of this title 
for any period included in a regularly scheduled 12-hour tour of 
duty. 
(3) A nurse who works a work schedule described in this subsection 
who is absent on approved sick leave or annual leave during a 
regularly scheduled 12-hour tour of duty shall be charged for 

Sec. 7457 CH. 74-PERSONNEL 948 

such leave at a rate of ten hours of leave for every nine hours of 
absence. 

(c) HOLIDAY PAY.-A nurse working a work schedule under 
subsection (b) that includes a holiday designated by law or Executive 
order shall be eligible for holiday pay under section 7453(d) of 
this title for any service performed by the nurse on such holiday 
under such section. 
(d) 9-MONTH WORK SCHEDULE FOR CERTAIN NURSES.-(1) The 
Secretary may authorize a registered nurse appointed under section 
7405 of this title, with the nurseï¿½s written consent, to work full 
time for nine months with 3 months off duty, within a fiscal year, 
and be paid at 75 percent of the full-time rate for such nurseï¿½s 
grade for each pay period of such fiscal year. 
(2) A nurse who works under the authority in paragraph (1) 
shall be considered a 0.75 full-time equivalent employee in computing 
full-time equivalent employees for the purposes of determining 
compliance with personnel ceilings. 
(3) Work under this subsection shall be considered part-time 
service for purposes of computing benefits under chapters 83 and 
84 of title 5. 
(4) A nurse who works under the authority in paragraph (1) 
shall be considered a full-time employee for purposes of chapter 89 
of title 5. 
(e) NOTIFICATION OF MODIFICATION OF BENEFITS.-The Secretary shall 
provide each employee with respect to whom an alternate work schedule 
under this section may apply written notice of 
the effect, if any, that the alternate work schedule will have on the 
employeeï¿½s health care premium, retirement, life insurance premium, 
probationary status, or other benefit or condition of employment. The 
notice shall be provided not later than 14 days before 
the employee consents to the alternate work schedule. 
(f) REGULATIONS.-The Secretary shall prescribe regulations to 
carry out this section.
(Added Pub. L. 108-445, Sec. 4(a)(1), Dec. 3, 2004, 118 Stat. 2643.)


ï¿½ 7457. On-call pay 

(a) The Secretary may pay an employee to whom this section 
applies pay at the rate provided in section 7453(h) of this title except 
for such time as the employee may be called back to work. 
(b) This section applies to an employee who meets each of the 
following criteria: 
(1) The employee is employed in a position listed in paragraph (3) of 
section 7401 of this title or meets the criteria specified in clauses 
(i), (ii), and (iii) of section 7455(a)(2)(B) of this 
title. 
(2) The employee is employed in a work unit for which on-
call premium pay is authorized. 
(3) The employee is officially scheduled to be on call outside such 
employeeï¿½s regular hours or on a holiday designated 
by Federal statute or Executive order. 
(c) An employee who is eligible for on-call pay under subsection 
(a) and who was receiving standby premium pay pursuant to section 5545 
of title 5 on May 20, 1988, shall, as long as such employee is employed 
in the same position and work unit and remains 

949 CH. 74-PERSONNEL Sec. 7458 

eligible for such standby pay, receive pay for any period of on-call 
duty at the rate equal to the greater of- 

(1) the rate of pay which such employee would receive if 
being paid the rate of standby pay pursuant to such section 
that such individual would be entitled to receive if such individual 
were not scheduled to be on call instead, or (2) the rate of pay which 
such employee is entitled to receive including on-call premium pay 
described in subsection 
(a). 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(4), May 7, 1991, 105 Stat. 
236.) 

ï¿½ 7458. Recruitment and retention bonus pay 

(a)(1) In order to recruit and retain registered nurses, the Secretary 
may enter into agreements under this section. Such an agreement may be 
entered into with any registered nurse who is employed at, or who 
agrees to accept employment with the Department at, a Department health-
care facility that is designated by the Secretary as a health-care 
facility with a significant shortage 
in registered nurses in any clinical service. 

(2) A registered nurse entering into an agreement under this 
section shall agree to remain employed by the Department as a 
registered nurse for a period of time to be specified in the agreement 
and to serve during that period in a specific health-care facility that 
is designated by the Secretary as a health-care facility with 
a significant shortage of registered nurses in that nurseï¿½s clinical 
service. Such period may not be less than two years or more than 
four years. Such employment during such period may be on a full-
time basis or a part-time basis, as specified in the agreement. Part-
time employment as specified in such an agreement may not be 
less than half-time. 
(b)(1) The Secretary shall pay to any nurse entering into an 
agreement under this section bonus pay in an amount specified in 
the agreement. The amount of such bonus pay may not exceed- 

(A) $2,000 per year, in the case of an agreement for two 
years, 
(B) $3,000 per year, in the case of an agreement for three 
years, and 
(C) $4,000 per year, in the case of an agreement for four 
years. 
(2) In the case of an agreement for employment on less than 
a full-time basis, the amount of bonus pay shall be pro-rated 
accordingly. 
(c)(1) Except as provided in paragraph (2) of this subsection, a 
bonus under this section shall be paid in equal installments after 
each year of service is completed throughout the period of obligated 
service specified in the agreement. 

(2)(A) The Secretary may make a payment in an amount not 
in excess of 25 percent of the total bonus in a lump sum at the time 
that the period of obligated service commences under the agreement. 

(B) If the Secretary makes a lump-sum payment under subparagraph (A) 
of this paragraph, the remaining balance of the 
bonus shall be paid in equal installments after each year of service 

Sec. 7458 CH. 74-PERSONNEL 950 

is completed throughout the period of obligated service specified in 
the agreement. 

(d)(1) A bonus paid to any individual under this section shall 
be in addition to any pay or allowance to which the individual is 
entitled. 

(2) The amount of a bonus paid under this section shall not be 
considered to be basic pay for the purposes of sections 5551, 5552, 
and 5595 of title 5, chapters 81, 83, 84, and 87 of such title, or any 
other provision of law creating an entitlement to benefits based on 
basic pay. 
(e) At least once each year the Secretary, upon the recommendation of 
the Under Secretary for Health, shall determine the specific health-
care facilities and clinical services, if any, as to which there are 
significant problems with respect to the recruitment and retention of 
registered nurses. Upon making any such determination, the Secretary 
shall promptly notify the Committees on 
Veteransï¿½ Affairs of the Senate and the House of Representatives 
of the determination and the basis for the determination. 
(f) The Secretary may enter into agreements under this section 
with individuals in a health profession other than nursing (and 
other than a health profession for which special pay may be provided 
under subchapter III) if the Secretary determines that there 
are significant problems with respect to recruitment and retention 
of employees in that health profession. The Secretaryï¿½s authority to 
enter into any such agreement under this section, and such agreement, 
shall be subject to the provisions of this section in the same 
manner as are the authority to enter into an agreement under this 
section with a registered nurse and such an agreement. 
(g)(1) Except as provided in paragraph (2) of this subsection, 
an individual who voluntarily, or because of misconduct, fails to 
perform services as assigned by the Secretary for the period of 
obligated service provided in an agreement under this section shall 
refund to the United States the amount by which the total amount 
of bonus payments received by that individual under this section 
exceeds the amount that such individual would have received 
under an agreement under this section to serve for the period of 
obligated service actually served (as determined at the time the 
agreement is entered into). If the period actually served is less 
than two years, the amount to be refunded is the entire amount 
paid to the individual. 

(2) An individual shall not be required to make a refund under 
paragraph (1) of this subsection if the Secretary determines, in 
accordance with regulations prescribed under subsection (h) of this 
section, that the individualï¿½s failure to perform services for the 
period of obligated service is due to circumstances (not including 
separation for cause) beyond the control of the individual. 
(3) An obligation to refund any portion of a bonus payment 
under this subsection is, for all purposes, a debt owed to the United 
States. 
(4) The provisions of this subsection and the specific amounts 
that the individual could be required to refund shall be disclosed 
to the individual at the time the agreement is entered into and 
shall be clearly set forth in the contract. 

951 CH. 74-PERSONNEL Sec. 7461 

(h) The Secretary shall prescribe regulations to carry out this 
section. 
(Added Pub. L. 100-322, title II, Sec. 212(a)((1)), May 20, 1988, 102 
Stat. 514, Sec. 4120; renumbered Sec. 7458 and amended Pub. L. 102-40, 
title IV, Sec. 401(c)(4), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984; Pub. L. 103-446, title XII, Sec. 1201(h)(4), Nov. 2,
1994, 108 Stat. 4688; Pub. L. 110-387, title IX, Sec. 901(a)(6),
Oct. 10, 2008, 122 Stat. 4142.) 

SUBCHAPTER V-DISCIPLINARY AND GRIEVANCE 
PROCEDURES 


ï¿½ 7461. Adverse actions: section 7401(1) employees 

(a) Whenever the Under Secretary for Health (or an official 
designated by the Under Secretary for Health) brings charges 
based on conduct or performance against a section 7401(1) employee and 
as a result of those charges an adverse personnel action 
is taken against the employee, the employee shall have the right 
to appeal the action. 
(b)(1) If the case involves or includes a question of professional 
conduct or competence in which a major adverse action was taken, 
such an appeal shall be made to a Disciplinary Appeals Board 
under section 7462 of this title. 

(2) In any other case, such an appeal shall be made- 
(A) through Department grievance procedures under section 7463 of this 
title, in any case that involves or includes a 
question of professional conduct or competence in which a 
major adverse action was not taken or in any case of an employee who is 
not covered by a collective bargaining agreement 
under chapter 71 of title 5; or 
(B) through grievance procedures provided through collective bargaining 
under chapter 71 of title 5 or through Department grievance procedures 
under section 7463 of this title, as 
the employee elects, in the case of an employee covered by a 
collective bargaining agreement under chapter 71 of title 5 
that does not involve or include a question of professional conduct or 
competence. 
(c) For purposes of this subchapter- 
(1) Section 7401(1) employees are employees of the Department employed 
on a full-time basis under a permanent appointment in a position listed 
in section 7401(1) of this title (other than interns and residents 
appointed pursuant to section 7406 of this title). 
(2) A major adverse action is an adverse action which includes any of 
the following: 
(A) Suspension. 
(B) Transfer. 
(C) Reduction in grade. 
(D) Reduction in basic pay. 
(E) Discharge. 
(3) A question of professional conduct or competence is a 
question involving any of the following: 
(A) Direct patient care. 
(B) Clinical competence. 

Sec. 7462 CH. 74-PERSONNEL 952 

(d) An issue of whether a matter or question concerns, or 
arises out of, professional conduct or competence is not itself subject 
to any grievance procedure provided by law, regulation, or collective 
bargaining and may not be reviewed by any other agency. 
(e) Whenever the Secretary proposes to prescribe regulations 
under this subchapter, the Secretary shall publish the proposed 
regulations in the Federal Register for notice-and-comment not less 
than 30 days before the day on which they take effect. 
(Added Pub. L. 102-40, title II, Sec. 203(a), May 7, 1991, 105 Stat. 
202; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984.) 

ï¿½ 7462. Major adverse actions involving professional conduct or 
competence 

(a)(1) Disciplinary Appeals Boards appointed under section 
7464 of this title shall have exclusive jurisdiction to review any 
case- 

(A) which arises out of (or which includes) a question of 
professional conduct or competence of a section 7401(1) employee; and 
(B) in which a major adverse action was taken. 
(2) The board shall include in its record of decision in any 
mixed case a statement of the boardï¿½s exclusive jurisdiction under 
this subsection and the basis for such exclusive jurisdiction. 
(3) For purposes of paragraph (2), a mixed case is a case that 
includes both a major adverse action arising out of a question of 
professional conduct or competence and an adverse action which is 
not a major adverse action or which does not arise out of a question 
of professional conduct or competence. 
(b)(1) In any case in which charges are brought against a section 
7401(1) employee which arises out of, or includes, a question 
of professional conduct or competence which could result in a major 
adverse action, the employee is entitled to the following: 

(A) At least 30 days advance written notice from the 
Under Secretary for Health or other charging official specifically 
stating the basis for each charge, the adverse actions that 
could be taken if the charges are sustained, and a statement 
of any specific law, regulation, policy, procedure, practice, or 
other specific instruction that has been violated with respect to 
each charge, except that the requirement for notification in advance 
may be waived if there is reasonable cause to believe that the employee 
has committed a crime for which the employee may be imprisoned. 
(B) A reasonable time, but not less than seven days, to 
present an answer orally and in writing to the Under Secretary 
for Health or other deciding official, who shall be an official 
higher in rank than the charging official, and to submit affidavits and 
other documentary evidence in support of the answer. 
(2) In any case described in paragraph (1), the employee is entitled to 
be represented by an attorney or other representative of 
the employeeï¿½s choice at all stages of the case. 
(3)(A) If a proposed adverse action covered by this section is 
not withdrawn, the deciding official shall render a decision in writing 
within 21 days of receipt by the deciding official of the employeeï¿½s 
answer. The decision shall include a statement of the specific 


953 CH. 74-PERSONNEL Sec. 7462 

reasons for the decision with respect to each charge. If a major 
adverse action is imposed, the decision shall state whether any of the 
charges sustained arose out of a question of professional conduct or 
competence. If any of the charges are sustained, the notice of the 
decision to the employee shall include notice of the employeeï¿½s 
rights of appeal. 

(B) Notwithstanding the 21-day period specified in subparagraph (A), a 
proposed adverse action may be held in abeyance if the employee 
requests, and the deciding official agrees, that the employee shall 
seek counseling or treatment for a condition covered under the 
Rehabilitation Act of 1973. Any such abeyance of a proposed action may 
not extend for more than one year. 
(4)(A) The Secretary may require that any answer and submission under 
paragraph (1)(B) be submitted so as to be received within 30 days of 
the date of the written notice of the charges, except 
that the Secretary shall allow the granting of extensions for good 
cause shown. 

(B) The Secretary shall require that any appeal to a Disciplinary 
Appeals Board from a decision to impose a major adverse action shall 
be received within 30 days after the date of service of the 
written decision on the employee. 
(c)(1) When a Disciplinary Appeals Board convenes to consider 
an appeal in a case under this section, the board, before proceeding 
to consider the merits of the appeal, shall determine whether the 
case is properly before it. 

(2) Upon hearing such an appeal, the board shall, with respect 
to each charge appealed to the board, sustain the charge, dismiss 
the charge, or sustain the charge in part and dismiss the charge 
in part. If the deciding official is sustained (in whole or in part) 
with respect to any such charge, the board shall- 
(A) approve the action as imposed; 
(B) approve the action with modification, reduction, or exception; or 
(C) reverse the action. 
(3) A board shall afford an employee appealing an adverse action under 
this section an opportunity for an oral hearing. If such 
a hearing is held, the board shall provide the employee with a 
transcript of the hearing. 
(4) The board shall render a decision in any case within 45 
days of completion of the hearing, if there is a hearing, and in any 
event no later than 120 days after the appeal commenced. 
(d)(1) After resolving any question as to whether a matter involves 
professional conduct or competence, the Secretary shall 
cause to be executed the decision of the Disciplinary Appeals Board 
in a timely manner and in any event in not more than 90 days 
after the decision of the Board is received by the Secretary. Pursuant 
to the boardï¿½s decision, the Secretary may order reinstatement, 
award back pay, and provide such other remedies as the board 
found appropriate relating directly to the proposed action, including 
expungement of records relating to the action. 

(2) If the Secretary finds a decision of the board to be clearly 
contrary to the evidence or unlawful, the Secretary may- 
(A) reverse the decision of the board, or 

Sec. 7463 CH. 74-PERSONNEL 954 

(B) vacate the decision of the board and remand the matter to the 
Board for further consideration. 
(3) If the Secretary finds the decision of the board (while not 
clearly contrary to the evidence or unlawful) to be not justified by 
the nature of the charges, the Secretary may mitigate the adverse 
action imposed. 
(4) The Secretaryï¿½s execution of a boardï¿½s decision shall be the 
final administrative action in the case. 
(e) The Secretary may designate an employee of the Department to 
represent management in any case before a Disciplinary 
Appeals Board. 
(f)(1) A section 7401(1) employee adversely affected by a final 
order or decision of a Disciplinary Appeals Board (as reviewed by 
the Secretary) may obtain judicial review of the order or decision. 

(2) In any case in which judicial review is sought under this 
subsection, the court shall review the record and hold unlawful and 
set aside any agency action, finding, or conclusion found to be- 
(A) arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law; 
(B) obtained without procedures required by law, rule, or 
regulation having been followed; or 
(C) unsupported by substantial evidence. 
(Added Pub. L. 102-40, title II, Sec. 203(a), May 7, 1991, 105 Stat. 
203; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984.) 

ï¿½ 7463. Other adverse actions 

(a) The Secretary shall prescribe by regulation procedures for 
the consideration of grievances of section 7401(1) employees arising 
from adverse personnel actions in which each action taken either- 
(1) is not a major adverse action; or 
(2) does not arise out of a question of professional conduct 
or competence. 
Disciplinary Appeals Boards shall not have jurisdiction to review 
such matters, other than as part of a mixed case (as defined in 
section 7462(a)(3) of this title). 

(b) In the case of an employee who is a member of a collective 
bargaining unit under chapter 71 of title 5, the employee may seek 
review of an adverse action described in subsection (a) either under 
the grievance procedures provided through regulations prescribed 
under subsection (a) or through grievance procedures determined 
through collective bargaining, but not under both. The employee 
shall elect which grievance procedure to follow. Any such election 
may not be revoked. 
(c)(1) In any case in which charges are brought against a section 
7401(1) employee which could result in a major adverse action 
and which do not involve professional conduct or competence, the 
employee is entitled to the same notice and opportunity to answer 
with respect to those charges as provided in subparagraphs (A) and 

(B) of section 7462(b)(1) of this title. 
(2) In any other case in which charges are brought against a 
section 7401(1) employee, the employee is entitled to- 
(A) an advance written notice stating the specific reason 
for the proposed action, and 

955 CH. 74-PERSONNEL Sec. 7464 

(B) a reasonable time to answer orally and in writing and 
to furnish affidavits and other documentary evidence in support of 
the answer. 
(d) Grievance procedures prescribed under subsection (a) shall 
include the following: 
(1) A right to formal review by an impartial examiner 
within the Department of Veterans Affairs, who, in the case of 
an adverse action arising from a question of professional conduct or 
competence, shall be selected from the panel designated 
under section 7464 of this title. 
(2) A right to a prompt report of the findings and recommendations by 
the impartial examiner. 
(3) A right to a prompt review of the examinerï¿½s findings 
and recommendations by an official of a higher level than the 
official who decided upon the action. That official may accept, 
modify, or reject the examinerï¿½s recommendations. 
(e) In any review of an adverse action under the grievance procedures 
prescribed under subsection (a), the employee is entitled to 
be represented by an attorney or other representative of the employeeï¿½s 
choice at all stages of the case. 
(Added Pub. L. 102-40, title II, Sec. 203(a), May 7, 1991, 105 
Stat. 205.) 

ï¿½ 7464. Disciplinary Appeals Boards 

(a) The Secretary shall from time to time appoint boards to 
hear appeals of major adverse actions described in section 7462 of 
this title. Such boards shall be known as Disciplinary Appeals 
Boards. Each board shall consist of three employees of the Department, 
each of whom shall be of the same grade as, or be senior in 
grade to, the employee who is appealing an adverse action. At least 
two of the members of each board shall be employed in the same 
category of position as the employee who is appealing the adverse 
action. Members of a board shall be appointed from individuals on 
the panel established under subsection (d). 
(b)(1) In appointing a board for any case, the Secretary shall 
designate one of the members to be chairman and one of the members to 
be secretary of the board, each of whom shall have authority to 
administer oaths. 

(2) Appointment of boards, and the proceedings of such boards, 
shall be carried out under regulations prescribed by the Secretary. 
A verbatim record shall be maintained of board hearings. 
(c)(1) Notwithstanding sections 5701 and 7332 of this title, the 
chairman of a board, upon request of an employee whose case is 
under consideration by the board (or a representative of that employee) 
may, in connection with the considerations of the board, review records 
or information covered by those sections and may authorize the 
disclosure of such records or information to that employee (or 
representative) to the extent the board considers appropriate for 
purposes of the proceedings of the board in that case. 

(2) In any such case the board chairman may direct that measures be 
taken to protect the personal privacy of individuals whose 
records are involved. Any person who uses or discloses a record or 
information covered by this subsection for any purpose other than 
in connection with the proceedings of the board shall be fined not 

Sec. 7471 CH. 74-PERSONNEL 956 

more than $5,000 in the case of a first offense and not more than 
$20,000 in the case of a subsequent offense. 

(d)(1) The Secretary shall provide for the periodic designation 
of employees of the Department who are qualified to serve on 
Disciplinary Appeals Boards. Those employees shall constitute the 
panel from which board members in a case are appointed. The Secretary 
shall provide (without charge) a list of the names of employees on the 
panel to any person requesting such list. 

(2) The Secretary shall announce periodically, and not less 
often than annually, that the roster of employees on the panel is 
available as described in paragraph (1). Such announcement shall 
be made at Department medical facilities and through publication 
in the Federal Register. Notice of a name being on the list must 
be provided at least 30 days before the individual selected may 
serve on a Board or as a grievance examiner. Employees, employee 
organizations, and other interested parties may submit comments 
to the Secretary concerning the suitability for service on the panel 
of any employee whose name is on the list. 
(3) The Secretary shall provide training in the functions and 
duties of Disciplinary Appeals Boards and grievance procedures 
under section 7463 of this title for employees selected to be on the 
panel. 
(Added Pub. L. 102-40, title II, Sec. 203(a), May 7, 1991, 105 
Stat. 206.) 

SUBCHAPTER VI-REGIONAL MEDICAL EDUCATION 
CENTERS 


ï¿½ 7471. Designation of Regional Medical Education Centers 

(a) In carrying out the Secretaryï¿½s functions under section 7302 
of this title with regard to the training of health personnel, the 
Secretary shall implement a program under which the Secretary 
shall designate as Regional Medical Education Centers such Department 
hospitals as the Secretary determines appropriate to 
carry out the provisions of this subchapter. 
(b) Each Regional Medical Education Center (hereinafter in 
this subchapter referred to as ï¿½ï¿½Centerï¿½ï¿½) designated under subsection 
(a) shall provide continuing medical and related education 
programs for personnel eligible for training under this subchapter. 
Such programs shall include the following: 
(1) The teaching of newly developed medical skills and the 
use of newly developed medical technologies and equipment. 
(2) Advanced clinical instruction. 
(3) The opportunity for conducting clinical investigations. 
(4) Clinical demonstrations in the use of new types of 
health personnel and in the better use of the skills of existing 
health personnel. 
(5) Routine verification of basic medical skills and, where 
determined necessary, remediation of any deficiency in such 
skills. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(5), May 7, 1991, 105 
Stat. 237.) 

ï¿½ 7472. Supervision and staffing of Centers 

(a) Centers shall be operated under the supervision of the 
Under Secretary for Health and shall be staffed with personnel 

957 CH. 74-PERSONNEL Sec. 7474 

qualified to provide the highest quality instruction and training in 
various medical and health care disciplines. 

(b) As a means of providing appropriate recognition to persons 
in the career service of the Administration who possess outstanding 
qualifications in a particular medical or health care discipline, the 
Under Secretary for Health shall from time to time and for such 
period as the Under Secretary for Health considers appropriate assign 
such persons to serve as visiting instructors at Centers. 
(c) Whenever the Under Secretary for Health considers it necessary for 
the effective conduct of the program provided for under 
this subchapter, the Under Secretary for Health may contract for 
the services of highly qualified medical and health personnel from 
outside the Department to serve as instructors at such Centers. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(5), May 7, 1991, 105 
Stat. 237; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984.) 

ï¿½ 7473. Personnel eligible for training 

(a) The Under Secretary for Health shall determine the manner in which 
personnel are to be selected for training in the Centers. Preference 
shall be given to career personnel of the Administration. 
(b) To the extent that facilities are available medical and health 
personnel from outside the Administration may, on a reimbursable basis, 
be provided training in the Centers. Such reimbursement may include 
reciprocal training of personnel of the Administration provided under 
sharing arrangements entered into by the Under Secretary for Health and 
the heads of the entities providing such reciprocal training. Any 
amounts received by the United States as reimbursement under this 
subsection shall be credited to the applicable Department medical 
appropriation account. 
(Added Pub. L. 102-40, title IV, Sec. 401(b)(5), May 7, 1991, 105 
Stat. 237; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 
1992, 106 Stat. 1984.) 

ï¿½ 7474. Consultation 

The Under Secretary for Health shall carry out this subchapter 
after consultation with the special medical advisory group established 
pursuant to section 7312(a) of this title. 

(Added Pub. L. 102-40, title IV, Sec. 401(b)(5), May 7, 1991, 105 Stat. 
238; amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 
106 Stat. 1984.) 


CHAPTER 75 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


959 


961 


CHAPTER 76 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


963 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 

CHAPTER 76-HEALTH PROFESSIONALS EDUCATIONAL 
ASSISTANCE PROGRAM 

SUBCHAPTER I-GENERAL 

Sec. 
7601. Establishment of program; purpose. 
7602. Eligibility. 
7603. Application and acceptance. 
7604. Terms of agreement. 


SUBCHAPTER II-SCHOLARSHIP PROGRAM 

7611. Authority for program. 
7612. Eligibility; application; agreement. 
7613. Scholarship. 
7614. Part-time students. 
7615. Status of participants. 
7616. Obligated service. 
7617. Breach of agreement: liability. 
7618. Expiration of program. 


SUBCHAPTER III-TUITION REIMBURSEMENT PROGRAM 

7621. Authority for program. 
7622. Eligibility; application; agreement. 
7623. Obligated service. 
7624. Breach of agreement: liability. 
7625. Allocation and distribution of funding. 


SUBCHAPTER IV-ADMINISTRATIVE MATTERS 

7631. Periodic adjustments in amount of assistance. 
7632. Annual report. 
7633. Regulations. 
7634. Breach of agreement; waiver of liability. 
7635. Service in other agencies. 
7636. Exemption of educational assistance payments from taxation. 


SUBCHAPTER V-STIPEND PROGRAM FOR MEMBERS OF THE SELECTED 
RESERVE 


7651. Authority for program. 
7652. Eligibility: individuals entitled to benefits under the GI Bill 
program for 


members of the Selected Reserve. 
7653. Amount of assistance. 
7654. Obligated service. 
7655. Breach of agreement; liability. 

SUBCHAPTER VI-EMPLOYEE INCENTIVE SCHOLARSHIP PROGRAM 

7671. Authority for program. 
7672. Eligibility; agreement. 
7673. Scholarship. 
7674. Obligated service. 
7675. Breach of agreement: liability. 
[7676. Repealed.] 

965 


Sec. 7601 CH. 76-HEALTH PROFESSIONALS ED. ASST. 966 

SUBCHAPTER VII-EDUCATION DEBT REDUCTION PROGRAM 

7681. Authority for program. 
7682. Eligibility. 
7683. Education debt reduction. 
[7684. Repealed.] 

SUBCHAPTER I-GENERAL 

ï¿½ 7601. Establishment of program; purpose 

(a) There is hereby established a program to be known as the 
Department of Veterans Affairs Health Professionals Educational 
Assistance Program (hereinafter in this chapter referred to as the 
ï¿½ï¿½Educational Assistance Programï¿½ï¿½). The program consists of- 
(1) the scholarship program provided for in subchapter II 
of this chapter; 
(2) the tuition reimbursement program provided for in subchapter III of 
this chapter; 
(3) the Selected Reserve member stipend program provided 
for under subchapter V of this chapter; 
(4) the employee incentive scholarship program provided 
for in subchapter VI of this chapter; and 
(5) the education debt reduction program provided for in 
subchapter VII of this chapter. 
(b) The purpose of the Educational Assistance Program is to 
assist in providing an adequate supply of trained health-care personnel 
for the Department and the Nation. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat.
518, Sec. 4301; amended Pub. L. 101-366, title II, Sec. 205(c)(1), 
Aug. 15, 1990, 104 Stat. 441; renumbered Sec. 7601, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, 
Sec. 4(a)(2)(B)(vi), (3), (4), Aug. 6, 1991, 105 Stat. 403, 404; 
Pub. L. 103-446, title XII, Sec. 1201(e)(25), Nov. 2, 1994, 108 Stat. 
4686; Pub. L. 105-368, title VIII, Sec. 805(1), Nov. 11, 1998, 112 
Stat. 3358.) 

ï¿½ 7602. Eligibility 

(a)(1) To be eligible to participate in the Educational Assistance 
Program under subchapter II, III, or VI of this chapter, an individual 
must be accepted for enrollment or be currently enrolled 
as a student at a qualifying educational institution in a course of 
education or training that is approved by the Secretary and that 
leads toward completion of a degree in a field of education or training 
for which a scholarship may be awarded under subchapter II 
of this chapter, for which tuition reimbursement may be provided 
under subchapter III of this chapter, or for which a scholarship 
may be awarded under subchapter VI of this chapter, as the case 
may be. 

(2) A qualifying educational institution for purposes of this section 
is an educational institution that is in a State and that (as 
determined by the Secretary) is an accredited institution. 
(b) An individual is not eligible to apply to participate in the 
Educational Assistance Program under subchapter II, III, or VI of 
this chapter if the individual is obligated under any other Federal 
program to perform service after completion of the course of education 
or training of such individual referred to in subsection (a) of 
this section. 

967 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7603 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 
Stat. 518, Sec. 4302; amended Pub. L. 101-366, title II, Sec. 
205(c)(2), Aug. 15, 1990, 104 Stat. 441; renumbered Sec. 7602, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 
105-368, title VIII, Sec. 805(2), Nov. 11, 1998, 112 Stat. 3358.) 

ï¿½ 7603. Application and acceptance 

(a)(1) To apply to participate in the Educational Assistance 
Program under subchapter II, III, V, or VI of this chapter, an 
individual shall submit to the Secretary an application for such 
participation together with an agreement described in section 7604 of 
this title under which the participant agrees to serve a period of 
obligated service in the Veterans Health Administration as provided in 
the agreement in return for payment of educational assistance as 
provided in the agreement. 

(2) To apply to participate in the Educational Assistance Program under 
subchapter VII of this chapter, an individual shall submit to the 
Secretary an application for such participation. 
(b)(1) An individual becomes a participant in the Educational 
Assistance Program upon the Secretaryï¿½s approval of the individualï¿½s 
application and the Secretaryï¿½s acceptance of the agreement 
(if required). 

(2) Upon the Secretaryï¿½s approval of an individualï¿½s participation in 
the program, the Secretary shall promptly notify the individual of 
that approval. Such notice shall be in writing. 
(c)(1) In distributing application forms and agreement forms to 
individuals desiring to participate in the Educational Assistance 
Program, the Secretary shall include with such forms the following: 

(A) A fair summary of the rights and liabilities of an individual 
whose application is approved (and whose agreement is 
accepted) by the Secretary, including a clear explanation of the 
damages to which the United States is entitled if the individual 
breaches the agreement. 
(B) A full description of the terms and conditions that 
apply to participation in the Educational Assistance Program 
and service in the Veterans Health Administration. 
(2) The Secretary shall make such application forms and other 
information available to individuals desiring to participate in the 
Educational Assistance Program on a date sufficiently early to 
allow such individuals adequate time to prepare and submit such 
forms. 
(d) In selecting applicants for acceptance in the Educational 
Assistance Program, the Secretary shall give priority to the 
applications of individuals who have previously received educational 
assistance under the program and have not completed the course of 
education or training undertaken under such program. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
518, Sec. 4303; renumbered Sec. 7603 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. 
L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. 
L. 103-446, title XII, Sec. 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682; 
Pub. L. 105-368, title VIII, Sec. 805(3), Nov. 11, 1998, 112 Stat. 3359; 
Pub. L. 106-419, title IV, Sec. 404(a)(10), Nov. 1, 2000, 114 Stat. 
1865.) 


Sec. 7604 CH. 76-HEALTH PROFESSIONALS ED. ASST. 968 

ï¿½ 7604. Terms of agreement 

An agreement between the Secretary and a participant in the 
Educational Assistance Program shall be in writing, shall be signed 
by the participant, and shall include the following provisions: 

(1) The Secretaryï¿½s agreement- 
(A) to provide the participant with educational assistance as 
authorized in subchapter II, III, V, or VI of this chapter and specified 
in the agreement; and 
(B) to afford the participant the opportunity for employment in the 
Veterans Health Administration (subject 
to the availability of appropriated funds for such purpose 
and other qualifications established in accordance with 
section 7402 of this title). 
(2) The participantï¿½s agreement- 
(A) to accept such educational assistance; 
(B) to maintain enrollment and attendance in the 
course of training until completed; 
(C) while enrolled in such course, to maintain an acceptable level of 
academic standing (as determined by the 
educational institution offering such course of training 
under regulations prescribed by the Secretary); and 
(D) after completion of the course of training, to serve 
as a full-time employee in the Veterans Health Administration as 
specified in the agreement in accordance with 
subchapter II, III, V, or VI of this chapter. 
(3) A provision that any financial obligation of the United 
States arising out of an agreement entered into under this 
chapter, and any obligation of the participant which is conditioned on 
such agreement, is contingent upon funds being appropriated for 
educational assistance under this chapter. 
(4) A statement of the damages to which the United States 
is entitled under this chapter for the participantï¿½s breach of the 
agreement. 
(5) Such other terms as are required to be included in the 
agreement under subchapter II, III, V, or VI of this chapter or 
as the Secretary may require consistent with the provisions of 
this chapter. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
519, Sec. 4304; amended Pub. L. 101-366, title II, Sec. 205(c)(3), Aug. 
15, 1990, 104 Stat. 441; renumbered Sec. 7604 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), 403(b)(3), May 7, 1991, 105 Stat. 
238, 239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
404, 405; Pub. L. 103-446, title XII, Sec. 1201(b)(1), (e)(26), 
Nov. 2, 1994, 108 Stat. 4682, 4686; Pub. L. 105-368, title VIII, Sec. 
805(4), Nov. 11, 1998, 112 
Stat. 3359.) 

SUBCHAPTER II-SCHOLARSHIP PROGRAM 

ï¿½ 7611. Authority for program 

As part of the Educational Assistance Program, the Secretary 
shall carry out a scholarship program under this subchapter. The 
program shall be known as the Department of Veterans Affairs 
Health Professional Scholarship Program (hereinafter in this chapter 
referred to as the ï¿½ï¿½Scholarship Programï¿½ï¿½). 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
520, Sec. 4311; renumbered Sec. 7611, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 


969 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7612 

Stat. 238; amended Pub. L. 102-83, Sec. 4(a)(2)(B)(vi), (b)(1), (2)(E), 
Aug. 6, 1991, 
105 Stat. 403-405.) 

ï¿½ 7612. Eligibility; application; agreement 

(a)(1) Except as provided in paragraph (2) of this subsection, 
an individual must be accepted for enrollment or be enrolled (as 
described in section 7602 of this title) as a full-time student to be 
eligible to participate in the Scholarship Program. 

(2) An individual who is an eligible Department employee may 
be accepted as a participant if accepted for enrollment or enrolled 
(as described in section 7602 of this title) for study on less than a 
full-time but not less than a half-time basis. (Such a participant is 
hereinafter in this subchapter referred to as a ï¿½ï¿½part-time studentï¿½ï¿½.) 
(3) For the purposes of paragraph (2) of this subsection, an eligible 
Department employee is a full-time Department employee 
who is permanently assigned to a Department health-care facility 
on the date on which the individual submits the application referred to 
in section 7603 of this title and on the date on which the 
individual becomes a participant in the Scholarship Program. 
(b)(1) A scholarship may be awarded under this subchapter 
only in a qualifying field of education or training. 

(2) A qualifying field of education or training for purposes of 
this subchapter is education or training leading to employment 
(under section 7401 of this title) as any of the following: 
(A) A physician, dentist, podiatrist, optometrist, nurse, 
physician assistant, or expanded function dental auxiliary. 
(B) A psychologist described in section 7401(3) of this title 
or a certified or registered respiratory therapist, licensed physical 
therapist, or licensed practical or vocational nurse. 
(3) The Secretary may designate additional fields of education 
or training as qualifying fields of education or training if the 
education or training leads to employment in a position which would 
qualify the individual for increased basic pay under subsection 
(a)(1) of section 7455 of this title for personnel described in 
subsection (a)(2)(B) of such section. 
(4) Before awarding the initial scholarship in a course of education 
or training other than medicine or nursing, the Secretary 
shall notify the Committees on Veteransï¿½ Affairs of the Senate and 
House of Representatives of the Secretaryï¿½s intent to award a 
scholarship in such course of education or training. The notice shall 
include a statement of the reasons why the award of scholarships in 
that course of education or training is necessary to assist in 
providing the Department with an adequate supply of personnel in the 
health profession concerned. Any such notice shall be given not less 
than 60 days before the first such scholarship is awarded. 
(5) In selecting applicants for the Scholarship Program, the 
Secretary- 
(A) shall give priority to applicants who will be entering 
their final year in a course of training; and 
(B) shall ensure an equitable allocation of scholarships to 
persons enrolled in the second year of a program leading to an 
associate degree in nursing. 

Sec. 7613 CH. 76-HEALTH PROFESSIONALS ED. ASST. 970 

(c)(1) An agreement between the Secretary and a participant in 
the Scholarship Program shall (in addition to the requirements set 
forth in section 7604 of this title) include the following: 

(A) The Secretaryï¿½s agreement to provide the participant 
with a scholarship under this subchapter for a specified number (from 
one to four) of school years during which the participant is pursuing 
a course of education or training described in 
section 7602 of this title. 
(B) The participantï¿½s agreement to serve as a full-time employee in the 
Veterans Health Administration for a period of 
time (hereinafter in this subchapter referred to as the ï¿½ï¿½period 
of obligated serviceï¿½ï¿½) of one calendar year for each school year 
or part thereof for which the participant was provided a scholarship 
under the Scholarship Program, but for not less than 
two years. 
(2) In a case in which an extension is granted under section 
7614(3) of this title, the number of years for which a scholarship 
may be provided under this subchapter shall be the number of 
school years provided for as a result of the extension. 
(3) In the case of a participant who is a part-time student- 
(A) the period of obligated service shall be reduced in accordance with 
the proportion that the number of credit hours 
carried by such participant in any such school year bears to 
the number of credit hours required to be carried by a full-time 
student in the course of training being pursued by the participant, but 
in no event to less than one year; and 
(B) the agreement shall include the participantï¿½s agreement to maintain 
employment, while enrolled in such course of 
education or training, as a Department employee permanently 
assigned to a Department health-care facility. 
(4) If a participantï¿½s period of obligated service is deferred 
under section 7616(b)(3)(A)(i) of this title, the agreement terms 
under paragraph (1) of this subsection shall provide for the participant 
to serve any additional period of obligated service that is prescribed 
by the Secretary under section 7616(b)(4)(B) of this title. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
520, Sec. 4312; amended Pub. L. 101-237, title II, Sec. 207(a), Dec. 
18, 1989, 103 Stat. 2068; renumbered Sec. 7612 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), 403(b)(4), May 7, 1991, 105 
Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 
6, 1991, 105 Stat. 404, 405; Pub. L. 102-405, title II, Sec. 202(a), Oct. 
9, 1992, 106 Stat. 1983; Pub. L. 103-446, title XII, Sec. 1201(b)(1), 
Nov. 2, 1994, 
108 Stat. 4682.) 

ï¿½ 7613. Scholarship 

(a) A scholarship provided to a participant in the Scholarship 
Program for a school year under the Scholarship Program shall 
consist of payment of the tuition of the participant for that school 
year, payment of other reasonable educational expenses (including 
fees, books, and laboratory expenses) for that school year, and a 
stipend determined under subsection (b) of this section. 
(b) A stipend under this section for a school year shall be payment to 
the participant of not in excess of $485 per month (adjusted in 
accordance with section 7631 of this title) for each of the 
12 consecutive months beginning with the first month of the school 
year, except that a stipend may not be paid to a participant who 

971 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7616 

is a full-time employee of the Department. The stipend of a participant 
who is a part-time student shall be adjusted as provided in 
sections 7614(1) and 7614(2) of this title. 

(c) The Secretary may arrange with an educational institution 
in which a participant in the Scholarship Program is enrolled for 
the payment to the educational institution of the amounts of tuition 
and other reasonable educational expenses described in subsection (a) 
of this section. Such payments may be made without regard to 
subsections (a) and (b) of section 3324 of title 31. (Added Pub. L. 
100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 521, Sec. 4313; 
renumbered Sec. 7613 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 
6, 1991, 105 Stat. 404, 405.) 

ï¿½ 7614. Part-time students 

In the case of a participant who is a part-time student- 

(1) the maximum amount of the stipend payable to the 
participant shall be reduced in accordance with the proportion 
that the number of credit hours carried by such participant 
bears to the number of credit hours required to be carried by 
a full-time student in the course of education or training being 
pursued by the participant; 
(2) a stipend may not be paid for any month during which 
the participant is not actually attending the course of training 
in which the participant is enrolled; and 
(3) the Secretary may extend the period for which a scholarship may be 
awarded to the participant to a maximum of six 
school years if the Secretary determines that the extension 
would be in the best interest of the United States. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
522, Sec. 4314; renumbered Sec. 7614, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 

ï¿½ 7615. Status of participants 

Participants in the Scholarship Program shall not by reason of 
their participation in such program (1) be considered to be employees 
of the Federal Government, or (2) be counted against any personnel 
ceiling affecting the Veterans Health Administration. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
522, Sec. 4315; renumbered Sec. 7615, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 103-446, title 
XII, Sec. 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.) 

ï¿½ 7616. Obligated service 

(a) Each participant in the Scholarship Program shall provide 
service as a full-time employee of the Department for the period of 
obligated service provided in the agreement of the participant entered 
into under section 7603 of this title. Such service shall be 
provided in the full-time clinical practice of such participantï¿½s 
profession or in another health-care position in an assignment or 
location determined by the Secretary. 
(b)(1) Not later than 60 days before the participantï¿½s service 
commencement date, the Secretary shall notify the participant of 


Sec. 7616 CH. 76-HEALTH PROFESSIONALS ED. ASST. 972 

that service commencement date. That date is the date for the beginning 
of the participantï¿½s period of obligated service. 

(2) As soon as possible after the participantï¿½s service commencement 
date, the Secretary shall- (A) in the case of a participant who is not 
a full-time employee in the Veterans Health Administration, appoint such 
participant as such an employee; and 
(B) in the case of a participant who is an employee in the 
Veterans Health Administration but is not serving in a position for 
which such participantï¿½s course of education or training 
prepared such participant, assign such participant to such a 
position. 
(3)(A)(i) In the case of a participant receiving a degree from a 
school of medicine, osteopathy, dentistry, optometry, or podiatry, 
the participantï¿½s service commencement date is the date upon 
which the participant becomes licensed to practice medicine, 
osteopathy, dentistry, optometry, or podiatry, as the case may be, in a 
State. However, the Secretary may, at the request of such participant, 
defer such date until the end of the period of time required 
for the participant to complete an internship or residency or other 
advanced clinical training. If the participant requests such a 
deferral, the Secretary shall notify the participant that such deferral 
could lead to an additional period of obligated service in accordance 
with paragraph (4) of this subsection. 

(ii) No such period of internship or residency or other advanced 
clinical training shall be counted toward satisfying a period of 
obligated service under this subchapter. 
(B) In the case of a participant receiving a degree from a school 
of nursing, the participantï¿½s service commencement date is the 
later of (i) the participantï¿½s course completion date, or (ii) the date 
upon which the participant becomes licensed as a registered nurse 
in a State. 
(C) In the case of a participant not covered by subparagraph 
(A) or (B) of this paragraph, the participantï¿½s service commencement 
date is the later of (i) the participantï¿½s course completion 
date, or (ii) the date the participant meets any applicable licensure 
or certification requirements. 
(4) A participant whose period of obligated service is deferred 
under paragraph (3)(A) of this subsection shall be required to 
undertake internship or residency or other advanced clinical training 
in an accredited program in an educational institution which is an 
affiliated institution (as defined in section 7423(d)(1) of this title) 
and with respect to which the affiliation agreement provides that 
all or part of the internship or residency or other advanced clinical 
training will be undertaken in a Department health-care facility. 
Such a participant may, at the discretion of the Secretary and upon 
the recommendation of the Under Secretary for Health, incur an 
additional period of obligated service- 
(A) at the rate of one-half of a calendar year for each year 
of internship or residency or other advanced clinical training 
(or a proportionate ratio thereof), if the internship, residency, 
or advanced clinical training is in a medical specialty necessary to 
meet the health-care requirements of the Department 

973 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7617 

(as determined under regulations prescribed by the Secretary); 
or 

(B) at the rate of three-quarters of a calendar year for each 
year of internship or residency or other advanced clinical training 
(or a proportionate ratio thereof), if the internship, residency, or 
advanced clinical training is not in a medical specialty necessary to 
meet the health-care requirements of the 
Department (as determined under regulations prescribed by 
the Secretary). 
(5) The Secretary shall by regulation prescribe the service 
commencement date for participants who were part-time students. 
Such regulations shall prescribe terms as similar as practicable to 
the terms set forth in paragraph (3) of this subsection. 
(c)(1) Except as provided in paragraph (2) of this subsection, a 
participant in the Scholarship Program shall be considered to have 
begun serving such participantï¿½s period of obligated service- 

(A) on the date, after such participantï¿½s course completion 
date, on which such participant (in accordance with subsection 
(b) of this section) is appointed under this chapter as a full-
time employee in the Veterans Health Administration; or 
(B) if the participant is a full-time employee in the Veterans Health 
Administration on such course completion date, 
on the date thereafter on which such participant is assigned to 
a position for which such participantï¿½s course of training prepared 
such participant. 
(2) A participant in the Scholarship Program who on such participantï¿½s 
course completion date is a full-time employee in the Veterans Health 
Administration serving in a capacity for which such 
participantï¿½s course of training prepared such participant shall be 
considered to have begun serving such participantï¿½s period of obligated 
service on such course completion date. 
(3) For the purposes of this section, the term ï¿½ï¿½course completion 
dateï¿½ï¿½ means the date on which a participant in the Scholarship Program 
completes such participantï¿½s course of education or 
training under the program. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
522, Sec. 4316; renumbered Sec. 7616 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), 403(b)(5), May 7, 1991, 105 Stat. 238-240; 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405; Pub. L. 102-405, title III, Sec. 302(c)(1), 
Oct. 9, 1992, 106 Stat. 1984; Pub. L. 103-446, title XII, Sec. 
1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.) 

ï¿½ 7617. Breach of agreement: liability 

(a) A participant in the Scholarship Program (other than a participant 
described in subsection (b) of this section) who fails to accept 
payment, or instructs the educational institution in which the 
participant is enrolled not to accept payment, in whole or in part, 
of a scholarship under the agreement entered into under section 
7603 of this title shall be liable to the United States for liquidated 
damages in the amount of $1,500. Such liability is in addition to 
any period of obligated service or other obligation or liability under 
the agreement. 
(b) A participant in the Scholarship Program shall be liable to 
the United States for the amount which has been paid to or on be

Sec. 7617 CH. 76-HEALTH PROFESSIONALS ED. ASST. 974 

half of the participant under the agreement if any of the following 
occurs: 

(1) The participant fails to maintain an acceptable level of 
academic standing in the educational institution in which the 
participant is enrolled (as determined by the educational institution 
under regulations prescribed by the Secretary). 
(2) The participant is dismissed from such educational institution for 
disciplinary reasons. 
(3) The participant voluntarily terminates the course of 
training in such educational institution before the completion 
of such course of training. 
(4) The participant fails to become licensed to practice 
medicine, osteopathy, dentistry, podiatry, or optometry in a 
State, fails to become licensed as a registered nurse in a State, 
or fails to meet any applicable licensure requirement in the 
case of any other health-care personnel who provide either direct 
patient-care services or services incident to direct patient-
care services, during a period of time determined under regulations 
prescribed by the Secretary. 
(5) In the case of a participant who is a part-time student, 
the participant fails to maintain employment, while enrolled in 
the course of training being pursued by such participant, as a 
Department employee permanently assigned to a Department 
health-care facility. 
Liability under this subsection is in lieu of any service obligation 
arising under the participantï¿½s agreement. 

(c)(1) If a participant in the Scholarship Program breaches the 
agreement by failing (for any reason) to complete such participantï¿½s 
period of obligated service, the United States shall be entitled to 
recover from the participant an amount determined in accordance 
with the following formula: A=3F(t-s/t) 

In such formula: 

(A) ï¿½ï¿½Aï¿½ï¿½ is the amount the United States is entitled to recover. 
(B) ï¿½ï¿½Fï¿½ï¿½ is the sum of (i) the amounts paid under this subchapter to 
or on behalf of the participant, and (ii) the interest 
on such amounts which would be payable if at the time the 
amounts were paid they were loans bearing interest at the 
maximum legal prevailing rate, as determined by the Treasurer of the 
United States. 
(C) ï¿½ï¿½tï¿½ï¿½ is the total number of months in the participantï¿½s 
period of obligated service, including any additional period of 
obligated service in accordance with section 7616(b)(4) of this 
title. 
(D) ï¿½ï¿½sï¿½ï¿½ is the number of months of such period served by 
the participant in accordance with section 7613 of this title. 
(2) Any amount of damages which the United States is entitled 
to recover under this section shall be paid to the United States 
within the one-year period beginning on the date of the breach of 
the agreement. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 
Stat. 524, Sec. 4317; renumbered Sec. 7617 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 
6, 1991, 105 Stat. 404, 405.) 


975 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7622 

ï¿½ 7618. Expiration of program 

The Secretary may not furnish scholarships to new participants in the 
Scholarship Program after December 31, 1998. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
525, Sec. 4318; renumbered Sec. 7618, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 102-585, 
title V, Sec. 523(a), Nov. 4, 1992, 106 Stat. 4959; Pub. L. 104-
110, title I, Sec. 101(j), Feb. 13, 1996, 110 Stat. 769; Pub. L. 
105-114, title II, Sec. 
207(a), Nov. 21, 1997, 111 Stat. 2289.) 

SUBCHAPTER III-TUITION REIMBURSEMENT PROGRAM 

ï¿½ 7621. Authority for program 

As part of the Educational Assistance Program, the Secretary 
shall carry out a tuition reimbursement program under this subchapter. 
The program shall be known as the Department of Veterans Affairs Nurse 
Education Tuition Reimbursement Program (hereinafter in this chapter 
referred to as the ï¿½ï¿½Tuition Reimbursement Programï¿½ï¿½). 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
525, Sec. 4321; renumbered Sec. 7621, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(a)(2)(B)(vi), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 403-405.) 

ï¿½ 7622. Eligibility; application; agreement 

(a) To be eligible to participate in the Tuition Reimbursement 
Program, an individual must be a full-time employee in the Department 
permanently assigned to a Department health-care facility 
and must be enrolled in a course of training offered by an institution 
approved by the Secretary leading toward completion of (1) an 
associate or higher degree in nursing, or (2) a masters degree or 
doctoral degree in nursing. 
(b) In selecting applicants for acceptance in the Tuition Reimbursement 
Program, the Secretary (in addition to according priorities as set 
forth in section 7603(d) of this title) shall give special 
consideration and emphasis to individuals pursuing a course of 
study which will expedite an increase in the number of registered 
nurses employed by the Department. The Secretary shall then give 
priority, in the following order, to- 
(1) individuals who have been employed as full-time employees in the 
Nursing Service in the Veterans Health Administration; and 
(2) individuals who have previously received tuition reimbursement 
under the Tuition Reimbursement Program. 
(c) An agreement between the Secretary and a participant in the Tuition 
Reimbursement Program shall (in addition to the requirements set forth 
in section 7604 of this title) contain the following: 
(1) The Secretaryï¿½s agreement to provide the participant 
with tuition reimbursement following successful completion (as 
determined, pursuant to regulations prescribed by the Secretary, by the 
educational institution involved) of (A) a course 
or courses required for the course of study described in subsection (a) 
of this section, or (B) a course or courses taken as 
necessary prerequisites for degree program enrollment if a let

Sec. 7623 CH. 76-HEALTH PROFESSIONALS ED. ASST. 976 

ter regarding the potential enrollment of the participant from 
an appropriate official of the institution involved includes a 
statement specifying such prerequisites. 

(2) The participantï¿½s agreement- 
(A) to maintain employment, while enrolled in the 
course of training being pursued by such participant, as a 
full-time Department employee in the Veterans Health Administration 
permanently assigned to a Department 
health-care facility; and 
(B) to continue to serve as a full-time employee in the 
Veterans Health Administration for one year (hereinafter 
in this subchapter referred to as the ï¿½ï¿½period of obligated 
serviceï¿½ï¿½) after completion of the course for which the participant 
received tuition reimbursement. 
(d) Tuition reimbursement provided to a participant in the Tuition 
Reimbursement Program may not exceed $2,000 per year (adjusted in 
accordance with section 7631 of this title). 
(e) The Secretary may arrange with an educational institution 
pursuant to which such an institution would provide a course or 
courses at a Department health-care facility to participants in the 
Tuition Reimbursement Program. Under such an arrangement, the 
Secretary may agree to pay to the institution an amount not in excess 
of an amount determined by multiplying the number of participants in 
such a course by the amount of tuition reimbursement 
each participant would receive for enrolling and successfully 
completing such course. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 
Stat. 525, Sec. 4322; renumbered Sec. 7622 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-54, Sec. 14(e)(9), June 13, 1991, 105 Stat. 287; 
Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405; Pub. L. 103-446, title XII, Sec. 1201(b), Nov. 2, 1994, 
108 Stat. 4682.) 

ï¿½ 7623. Obligated service 

(a) Each participant in the Tuition Reimbursement Program 
shall provide service in the full-time clinical practice of such 
participantï¿½s profession as a full-time employee of the Department for 
the period of obligated service provided in the agreement of such 
participant entered into under section 7603 of this title. 
(b) A participant who on such participantï¿½s course completion 
date is a full-time employee in the Veterans Health Administration 
shall be considered to have begun serving such participantï¿½s period 
of obligated service on the course completion date. 
(c) Except in the case of a participant whose tuition was paid 
pursuant to section 7622(e) of this title, if a participant in the 
Tuition Reimbursement Program fails to successfully complete a 
course, no reimbursement will be provided and no period of obligated 
service will be incurred. 
(d) In the case of a participant whose tuition was paid pursuant to 
section 7622(e) of this title and who fails to complete the 
course involved, the period of obligation shall be of the same 
duration as it would have been if the participant had successfully 
completed the course and the course completion date shall be considered 
to be the date on which the participantï¿½s failure becomes an 
established fact. 

977 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7631 

(e) For the purposes of this section, the term ï¿½ï¿½course completion 
dateï¿½ï¿½ means the date on which a participant in the Tuition 
Reimbursement Program completes such participantï¿½s course of training 
under the program. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
526, Sec. 4323; amended Pub. L. 100-687, div. B, title XV, Sec. 
1503(a)(3), Nov. 18, 1988, 102 Stat. 4134; renumbered Sec. 7623 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 
105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 
105 Stat. 404; Pub. L. 103-446, title XII, Sec. 1201(b)(1), Nov. 2, 
1994, 108Stat. 4682.) 

ï¿½ 7624. Breach of agreement: liability 

(a) A participant in the Tuition Reimbursement Program who 
fails to maintain employment as a Department employee permanently 
assigned to a Department health-care facility- 
(1) may not be provided reimbursement for tuition for the 
course or courses in which the participant is enrolled; and 
(2) in lieu of any service obligation arising from participation in the 
program, shall be liable to the United States for the 
amount which has been paid or is payable to or on behalf of 
the participant under the agreement, reduced by the proportion that the 
number of days served for completion of the service obligation bears to 
the total number of days in the participantï¿½s period of obligated service. 
(b) Any amount of damages which the United States is entitled 
to recover under this section shall be paid to the United States 
within the one-year period beginning on the date of the breach of 
the agreement. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
527, Sec. 4324; amended Pub. L. 100-687, div. B, title XV, Sec. 
1503(a)(4), Nov. 18, 1988, 102 Stat. 4134; renumbered Sec. 7624, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 
102-83, Sec. 4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404.) 

ï¿½ 7625. Allocation and distribution of funding 

In determining the amount of funding to allocate to Department health-
care facilities for any fiscal year in connection with the Tuition 
Reimbursement Program, the Secretary shall take into account (1) the 
personnel ceiling for that fiscal year for nursing personnel, and (2) 
the recruitment and retention needs of such facilities, as determined 
by the Secretary. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
527, Sec. 4325; renumbered Sec. 7625, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405.) 

SUBCHAPTER IV-ADMINISTRATIVE MATTERS 

ï¿½ 7631. Periodic adjustments in amount of assistance 

(a)(1) Whenever there is a general Federal pay increase, the 
Secretary shall increase the maximum monthly stipend amount, 
the maximum tuition reimbursement amount, the maximum Selected Reserve 
member stipend amount, the maximum employee incentive scholarship 
amount, and the maximum education debt reduction payments amount. Any 
such increase shall take effect with 
respect to any school year that ends in the fiscal year in which the 
pay increase takes effect. 


Sec. 7632 CH. 76-HEALTH PROFESSIONALS ED. ASST. 978 

(2) The amount of any increase under paragraph (1) of this 
subsection is the previous maximum amount under that paragraph 
multiplied by the overall percentage of the adjustment in the rates 
of pay under the General Schedule made under the general Federal 
pay increase. Such amount shall be rounded to the next lower multiple 
of $1. 
(b) For purposes of this section: 
(1) The term ï¿½ï¿½maximum monthly stipend amountï¿½ï¿½ means 
the maximum monthly stipend that may be paid to a participant in the 
Scholarship Program specified in section 7613(b) of 
this title and as previously adjusted (if at all) in accordance 
with this section. 
(2) The term ï¿½ï¿½maximum tuition reimbursement amountï¿½ï¿½ 
means the maximum amount of tuition reimbursement provided to a 
participant in the Tuition Reimbursement Program 
specified in section 7622(e) of this title and as previously adjusted 
(if at all) in accordance with this section. 
(3) The term ï¿½ï¿½maximum Selected Reserve member stipend 
amountï¿½ï¿½ means the maximum amount of assistance provided 
to a person receiving assistance under subchapter V of this 
chapter, as specified in section 7653 of this title and as previously 
adjusted (if at all) in accordance with this section. 
(4) The term ï¿½ï¿½maximum employee incentive scholarship 
amountï¿½ï¿½ means the maximum amount of the scholarship payable to a 
participant in the Department of Veterans Affairs 
Employee Incentive Scholarship Program under subchapter VI 
of this chapter, as specified in section 7673(b)(1) of this title 
and as previously adjusted (if at all) in accordance with this 
section. 
(5) The term ï¿½ï¿½maximum education debt reduction payments amountï¿½ï¿½ 
means the maximum amount of education debt reduction payments payable 
to a participant in the Department of Veterans Affairs Education Debt 
Reduction Program under subchapter VII of this chapter, as specified 
in section 7683(d)(1) of this title and as previously adjusted (if at 
all) in accordance with this section. 
(6) The term ï¿½ï¿½general Federal pay increaseï¿½ï¿½ means an adjustment (if 
an increase) in the rates of pay under the General Schedule under 
subchapter III of chapter 53 of title 5. (Added Pub. L. 100-322, title 
II, Sec. 216(b), May 20, 1988, 102 Stat. 528, Sec. 4331; amended Pub. 
L. 101-366, title II, Sec. 205(b), Aug. 15, 1990, 104 Stat. 441; 
renumbered Sec. 7631 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, 
Sec. 14(e)(10), June 13, 1991, 105 Stat. 287; Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 107-135, 
title I, Secs. 101(f), (g), 102(d)(1), Jan. 23, 2002, 115 Stat. 
2448, 2449.) 

ï¿½ 7632. Annual report 

Not later than March 1 of each year, the Secretary shall submit to 
Congress a report on the Educational Assistance Program. 
Each such report shall include the following information: 

(1) The number of students receiving educational assistance under the 
Educational Assistance Program, showing the numbers of students 
receiving assistance under the Scholarship Program, the Tuition 
Reimbursement Program, the Employee Incentive Scholarship Program, 
and the Education Debt 

979 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7634 

Reduction Program separately, and the number of students (if 
any) enrolled in each type of health profession training under 
each program. 

(2) The education institutions (if any) providing such training to 
students in each program. 
(3) The number of applications filed under each program, 
by health profession category, during the school year beginning 
in such year and the total number of such applications so filed 
for all years in which the Educational Assistance Program (or 
predecessor program) has been in existence. 
(4) The average amounts of educational assistance provided per 
participant in the Scholarship Program, per participant in the Tuition 
Reimbursement Program, per participant in the Employee Incentive 
Scholarship Program, and per participant in the Education Debt 
Reduction Program. 
(5) The amount of tuition and other expenses paid, by 
health profession category, in the aggregate and at each educational 
institution for the school year beginning in such year 
and for prior school years. 
(6) The number of scholarships accepted, by health profession category, 
during the school year beginning in such year and the number, by health 
profession category, which were offered and not accepted. 
(7) The number of participants who complete a course or 
course of training in each program each year and for all years 
that such program (or predecessor program) has been in existence. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
528, Sec. 4332; renumbered Sec. 7632, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 105-368, 
title VIII, Sec. 805(5), Nov. 11, 1998, 112 Stat. 3359.) 

ï¿½ 7633. Regulations 

The Secretary shall prescribe regulations to carry out the Educational 
Assistance Program. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
529, Sec. 4333; renumbered Sec. 7633, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 7634. Breach of agreement; waiver of liability 

(a) An obligation under the Educational Assistance Program 
(or an agreement under the program) of a participant in the Educational 
Assistance Program for performance of services or payment of damages is 
canceled upon the death of the participant. 
(b) The Secretary shall prescribe regulations providing for the 
waiver or suspension of any obligation of a participant for service 
or payment under the Educational Assistance Program (or an 
agreement under the program) whenever noncompliance by the 
participant is due to circumstances beyond the control of the 
participant or whenever the Secretary determines that the waiver or 
suspension of compliance is in the best interest of the United States. 
(c) An obligation of a participant under the Educational Assistance 
Program (or an agreement thereunder) for payment of damages may not 
be released by a discharge in bankruptcy under title 

Sec. 7635 CH. 76-HEALTH PROFESSIONALS ED. ASST. 980 

11 before the expiration of the five-year period beginning on the 
first date the payment of such damages is due. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat.
529, Sec. 4334; renumbered Sec. 7634, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 

ï¿½ 7635. Service in other agencies 

(a) The Secretary, with the consent of the participant or individual 
involved and the consent of the head of the department or 
agency involved, may permit- 
(1) a period of obligated service required under this chapter to be 
performed in the Veterans Health Administration to 
be performed in another Federal department or agency or in 
the Armed Forces in lieu of performance of such service in the 
Veterans Health Administration; and 
(2) a period of obligated service required to be performed 
in another Federal department or agency or in the Armed 
Forces under another Federal health personnel educational assistance 
program to be performed in the Veterans Health Administration. 
(b) This section shall be carried out in cooperation with the 
heads of other appropriate departments and agencies. 
(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
529, Sec. 4335; renumbered Sec. 7635, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 103-446, 
title XII, Sec. 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.) 

ï¿½ 7636. Exemption of educational assistance payments from 
taxation 

Notwithstanding any other law, any payment to, or on behalf 
of a participant in the Educational Assistance Program, for tuition, 
education expenses, a stipend, or education debt reduction under 
this chapter shall be exempt from taxation. 

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
529, Sec. 4336; renumbered Sec. 7636, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 105-368, title 
VIII, Sec. 805(6), Nov. 11, 1998, 112 Stat. 
3359.) 

SUBCHAPTER V-STIPEND PROGRAM FOR MEMBERS OF 
THE SELECTED RESERVE 


ï¿½ 7651. Authority for program 

(a) As part of the Educational Assistance Program, the Secretary of 
Veterans Affairs may select qualified individuals to receive assistance 
under this subchapter. 
(b) To be eligible to receive assistance under this subchapter, 
an individual must be accepted for enrollment or be enrolled as a 
full-time student at a qualifying educational institution in a course 
of education or training that is approved by the Secretary and that 
leads toward completion of a degree in a health profession involving 
direct patient care or care incident to direct patient care. 
(Added Pub. L. 101-366, title II, Sec. 205(a)(1), Aug. 15, 1990, 104 
Stat. 439, Sec. 4351; renumbered Sec. 7651, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238.) 


981 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7655 

ï¿½ 7652. Eligibility: individuals entitled to benefits under the 

GI Bill program for members of the Selected Re

serve 

The Secretary of Veterans Affairs may not approve an application under 
section 7603 of this title of an individual applying to receive 
assistance under this subchapter unless- 

(1) the individual is entitled to benefits under chapter 106 
of title 10; and 
(2) the score of the individual on the Armed Forces Qualification Test 
was above the 50th percentile. (Added Pub. L. 101-366, title II, Sec. 
205(a)(1), Aug. 15, 1990, 104 Stat. 440, Sec. 4352; renumbered Sec. 
7652 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239.) 

ï¿½ 7653. Amount of assistance 

The Secretary may pay to a person selected to receive assistance under 
this subchapter the amount of $400 (adjusted in accordance with section 
7631 of this title) for each month of the personï¿½s 
enrollment in a program of education or training covered by the 
agreement of the person entered into under section 7603 of this 
title. Payment of such benefits for any period shall be coordinated 
with any payment of benefits for the same period under chapter 
106 of title 10. 

(Added Pub. L. 101-366, title II, Sec. 205(a)(1), Aug. 15, 1990, 104 
Stat. 440, Sec. 4353; renumbered Sec. 7653 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239.) 

ï¿½ 7654. Obligated service 

A person receiving assistance under this subchapter shall provide 
service in the full-time clinical practice of the personï¿½s profession 
as a full-time employee of the Department for the period of obligated 
service provided in the agreement of such person entered 
into under section 7603 of this title. 

(Added Pub. L. 101-366, title II, Sec. 205(a)(1), Aug. 15, 1990, 104 
Stat. 440, Sec. 4354; renumbered Sec. 7654 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), 
(d)(1), May 7, 1991, 105 Stat. 238, 239.) 

ï¿½ 7655. Breach of agreement; liability 

(a)(1) Subject to paragraph (2), an individual who is receiving 
or has received a reserve member stipend under this subchapter 
and who fails to perform the service for which the individual is 
obligated under section 7654 of this title shall be liable to the United 
States in an amount determined in accordance with section 
7617(c)(1) of this title. 

(2) An individual who, as a result of performing active duty (including 
active duty for training), is unable to perform the service 
for which the individual is obligated under section 7654 of this title 
shall be permitted to perform that service upon completion of the 
active duty service (or active duty for training). The Secretary may, 
by regulation, waive the requirement for the performance of the 
service for which the individual is obligated under section 7654 of 
this title in any case in which the Secretary determines that the 
individual is unable to perform the service for reasons beyond the 

Sec. 7671 CH. 76-HEALTH PROFESSIONALS ED. ASST. 982 

control of the individual or in any case in which the waiver would 
be in the best interest of the individual and the United States. 

(b) Any amount owed the United States under subsection (a) 
of this section shall be paid to the United States during the one-
year period beginning on the date of the breach of the agreement. 
(Added Pub. L. 101-366, title II, Sec. 205(a)(1), Aug. 15, 1990, 104 
Stat. 440, Sec. 4355; renumbered Sec. 7655 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239.) 

SUBCHAPTER VI-EMPLOYEE INCENTIVE SCHOLARSHIP 
PROGRAM 


ï¿½ 7671. Authority for program 

As part of the Educational Assistance Program, the Secretary 
may carry out a scholarship program under this subchapter. The 
program shall be known as the Department of Veterans Affairs 
Employee Incentive Scholarship Program (hereinafter in this subchapter 
referred to as the ï¿½ï¿½Programï¿½ï¿½). The purpose of the Program 
is to assist, through the establishment of an incentive program for 
individuals employed in the Veterans Health Administration, in 
meeting the staffing needs of the Veterans Health Administration 
for health professional occupations for which recruitment or retention 
of qualified personnel is difficult. 

(Added Pub. L. 105-368, title VIII, Sec. 802(a), Nov. 11, 1998, 112 
Stat. 3352; amended Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 
Stat. 35.) 

ï¿½ 7672. Eligibility; agreement 

(a) ELIGIBILITY.-To be eligible to participate in the Program, 
an individual must be an eligible Department employee who is accepted 
for enrollment or enrolled (as described in section 7602 of 
this title) as a full-time or part-time student in a field of education 
or training described in subsection (c). 
(b) ELIGIBLE DEPARTMENT EMPLOYEES.-For purposes of subsection (a), an 
eligible Department employee is any employee of the 
Department who, as of the date on which the employee submits an 
application for participation in the Program, has been continuously 
employed by the Department for not less than one year. 
(c) QUALIFYING FIELDS OF EDUCATION OR TRAINING.-A scholarship may be 
awarded under the Program only for education and 
training in a field leading to appointment or retention in a position 
under section 7401 of this title. 
(d) AWARD OF SCHOLARSHIPS.-Notwithstanding section 
7603(d) of this title, the Secretary, in selecting participants in the 
Program, may award a scholarship only to applicants who have a 
record of employment with the Veterans Health Administration 
which, in the judgment of the Secretary, demonstrates a high likelihood 
that the applicant will be successful in completing such education or 
training and in employment in such field. 
(e) AGREEMENT.-(1) An agreement between the Secretary and 
a participant in the Program shall (in addition to the requirements 
set forth in section 7604 of this title) include the following: 
(A) The Secretaryï¿½s agreement to provide the participant 
with a scholarship under the Program for a specified number 
(from one to three) of school years during which the participant 

983 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7673 

pursues a course of education or training described in subsection (c) 
that meets the requirements set forth in section 
7602(a) of this title. 

(B) The participantï¿½s agreement to serve as a full-time employee in the 
Veterans Health Administration for a period of 
time (hereinafter in this subchapter referred to as the ï¿½ï¿½period 
of obligated serviceï¿½ï¿½) determined in accordance with regulations 
prescribed by the Secretary of up to three calendar years 
for each school year or part thereof for which the participant 
was provided a scholarship under the Program, but for not less 
than 3 years. 
(C) The participantï¿½s agreement to serve under subparagraph (B) in a 
Department facility selected by the Secretary. 
(2) In a case in which an extension is granted under section 
7673(c)(2) of this title, the number of years for which a scholarship 
may be provided under the Program shall be the number of school 
years provided for as a result of the extension. 
(3) In the case of a participant who is a part-time student, the 
period of obligated service shall be reduced in accordance with the 
proportion that the number of credit hours carried by such participant 
in any such school year bears to the number of credit hours 
required to be carried by a full-time student in the course of training
being pursued by the participant, but in no event to less than 
1 year. 
(Added Pub. L. 105-368, title VIII, Sec. 802(a), Nov. 11, 1998, 112 
Stat. 3352; amended Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 
Stat. 35; Pub. L. 107-135, title I, Sec. 101(b), Jan. 23, 2002, 115 
Stat. 2447.) 

ï¿½ 7673. Scholarship 

(a) SCHOLARSHIP.-A scholarship provided to a participant in 
the Program for a school year shall consist of payment of the tuition 
(or such portion of the tuition as may be provided under subsection 
(b)) of the participant for that school year and payment of 
other reasonable educational expenses (including fees, books, and 
laboratory expenses) for that school year. 
(b) AMOUNTS.-The total amount of the scholarship payable 
under subsection (a)- 
(1) in the case of a participant in the Program who is a 
full-time student, may not exceed $10,000 for the equivalent of 
one year of full-time coursework; and 
(2) in the case of a participant in the Program who is a 
part-time student, shall bear the same ratio to the amount 
that would be paid under paragraph (1) if the participant were 
a full-time student in the course of education or training being 
pursued by the participant as the coursework carried by the 
participant to full-time coursework in that course of education 
or training. 
(c) LIMITATIONS ON PERIOD OF PAYMENT.-(1) The maximum 
number of school years for which a scholarship may be paid under 
subsection (a) to a participant in the Program shall be six school 
years. 
(2) A participant in the Program may not receive a scholarship 
under subsection (a) for more than the equivalent of three years of 
full-time coursework. 

Sec. 7674 CH. 76-HEALTH PROFESSIONALS ED. ASST. 984 

(d) PAYMENT OF EDUCATIONAL EXPENSES BY EDUCATIONAL INSTITUTIONS.-The 
Secretary may arrange with an educational institution in which a 
participant in the Program is enrolled for the 
payment of the educational expenses described in subsection (a). 
Such payments may be made without regard to subsections (a) and 
(b) of section 3324 of title 31. 
(e) FULL-TIME COURSEWORK.-For purposes of this section, 
full-time coursework shall consist of the following: 
(1) In the case of undergraduate coursework, 30 semester 
hours per undergraduate school year. 
(2) In the case of graduate coursework, 18 semester hours 
per graduate school year. 
(Added Pub. L. 105-368, title VIII, Sec. 802(a), Nov. 11, 1998, 112 
Stat. 3353; amended Pub. L. 107-135, title I, Sec. 101(c)-(e), Jan. 23, 
2002, 115 Stat. 2447, 2448.) 

ï¿½ 7674. Obligated service 

(a) IN GENERAL.-Each participant in the Program shall provide service 
as a full-time employee of the Department for the period of obligated 
service provided in the agreement of the participant entered into under 
section 7603 of this title. Such service shall be provided in the full-
time clinical practice of such participantï¿½s profession or in another 
health-care position in an assignment or location determined by the 
Secretary. 
(b) DETERMINATION OF SERVICE COMMENCEMENT DATE.-(1) 
Not later than 60 days before a participantï¿½s service commencement 
date, the Secretary shall notify the participant of that service 
commencement date. That date is the date for the beginning of the 
participantï¿½s period of obligated service. 
(2) As soon as possible after a participantï¿½s service commencement 
date, the Secretary shall- 
(A) in the case of a participant who is not a full-time employee in the 
Veterans Health Administration, appoint the participant as such an 
employee; and 
(B) in the case of a participant who is an employee in the 
Veterans Health Administration but is not serving in a position for 
which the participantï¿½s course of education or training 
prepared the participant, assign the participant to such a position. 
(3)(A) In the case of a participant receiving a degree from a 
school of medicine, osteopathy, dentistry, optometry, or podiatry, 
the participantï¿½s service commencement date is the date upon 
which the participant becomes licensed to practice medicine, 
osteopathy, dentistry, optometry, or podiatry, as the case may be, in a 
State. 

(B) In the case of a participant receiving a degree from a school 
of nursing, the participantï¿½s service commencement date is the 
later of- 
(i) the participantï¿½s course completion date; or 
(ii) the date upon which the participant becomes licensed 
as a registered nurse in a State. 
(C) In the case of a participant not covered by subparagraph 
(A) or (B), the participantï¿½s service commencement date is the later 
of- 

985 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7675 

(i) the participantï¿½s course completion date; or 
(ii) the date the participant meets any applicable licensure 
or certification requirements. 
(4) The Secretary shall by regulation prescribe the service 
commencement date for participants who were part-time students. 
Such regulations shall prescribe terms as similar as practicable to 
the terms set forth in paragraph (3). 
(c) COMMENCEMENT OF OBLIGATED SERVICE.-(1) Except as 
provided in paragraph (2), a participant in the Program shall be 
considered to have begun serving the participantï¿½s period of obligated 
service- 
(A) on the date, after the participantï¿½s course completion 
date, on which the participant (in accordance with subsection 
(b)) is appointed as a full-time employee in the Veterans 
Health Administration; or 
(B) if the participant is a full-time employee in the Veterans Health 
Administration on such course completion date, 
on the date thereafter on which the participant is assigned to 
a position for which the participantï¿½s course of training prepared the 
participant. 
(2) A participant in the Program who on the participantï¿½s 
course completion date is a full-time employee in the Veterans 
Health Administration serving in a capacity for which the participantï¿½s 
course of training prepared the participant shall be considered to have 
begun serving the participantï¿½s period of obligated 
service on such course completion date. 
(d) COURSE COMPLETION DATE DEFINED.-In this section, the 
term ï¿½ï¿½course completion dateï¿½ï¿½ means the date on which a participant 
in the Program completes the participantï¿½s course of education 
or training under the Program. 
(Added Pub. L. 105-368, title VIII, Sec. 802(a), Nov. 11, 1998, 112 
Stat. 3354.) 

ï¿½ 7675. Breach of agreement: liability 

(a) LIQUIDATED DAMAGES.-A participant in the Program 
(other than a participant described in subsection (b)) who fails to 
accept payment, or instructs the educational institution in which 
the participant is enrolled not to accept payment, in whole or in 
part, of a scholarship under the agreement entered into under section 
7603 of this title shall be liable to the United States for liquidated 
damages in the amount of $1,500. Such liability is in addition to any 
period of obligated service or other obligation or liability 
under the agreement. 
(b) LIABILITY DURING COURSE OF EDUCATION OR TRAINING.-(1) 
Except as provided in subsection (d), a participant in the Program 
shall be liable to the United States for the amount which has been 
paid to or on behalf of the participant under the agreement if any 
of the following occurs: 
(A) The participant fails to maintain an acceptable level of 
academic standing in the educational institution in which the 
participant is enrolled (as determined by the educational institution 
under regulations prescribed by the Secretary). 
(B) The participant is dismissed from such educational institution for 
disciplinary reasons. 

Sec. 7675 CH. 76-HEALTH PROFESSIONALS ED. ASST. 986 

(C) The participant voluntarily terminates the course of 
education or training in such educational institution before the 
completion of such course of education or training. 
(D) The participant fails to become licensed to practice 
medicine, osteopathy, dentistry, podiatry, or optometry in a 
State, fails to become licensed as a registered nurse in a State, 
or fails to meet any applicable licensure requirement in the 
case of any other health-care personnel who provide either direct 
patient-care services or services incident to direct patient-
care services, during a period of time determined under regulations 
prescribed by the Secretary. 
(E) In the case of a participant who is a part-time student, 
the participant fails to maintain employment, while enrolled in 
the course of training being pursued by the participant, as a 
Department employee. 
(2) Liability under this subsection is in lieu of any service 
obligation arising under a participantï¿½s agreement. 
(c) LIABILITY DURING PERIOD OF OBLIGATED SERVICE.-(1) Except as 
provided in subsection (d), if a participant in the Program 
breaches the agreement by failing for any reason to complete such 
participantï¿½s period of obligated service, the United States shall be 
entitled to recover from the participant an amount determined in 
accordance with the following formula: A=3F(t-s/t) 
(2) In such formula: 
(A) ï¿½ï¿½Aï¿½ï¿½ is the amount the United States is entitled to recover. 
(B) ï¿½ï¿½Fï¿½ï¿½ is the sum of- 
(i) the amounts paid under this subchapter to or on 
behalf of the participant; and 
(ii) the interest on such amounts which would be payable if at the time 
the amounts were paid they were loans 
bearing interest at the maximum legal prevailing rate, as 
determined by the Treasurer of the United States. 
(C) ï¿½ï¿½tï¿½ï¿½ is the total number of months in the participantï¿½s 
period of obligated service, including any additional period of 
obligated service in accordance with section 7673(c)(2) of this 
title. 
(D) ï¿½ï¿½sï¿½ï¿½ is the number of months of such period served by 
the participant in accordance with section 7673 of this title. 
(d) LIMITATION ON LIABILITY FOR REDUCTIONS-IN-FORCE.-Liability shall 
not arise under subsection (b)(1)(E) or (c) in the case 
of a participant otherwise covered by the subsection concerned if 
the participant fails to maintain employment as a Department employee 
due to a staffing adjustment. 
(e) PERIOD FOR PAYMENT OF DAMAGES.-Any amount of damages which the 
United States is entitled to recover under this section shall be paid 
to the United States within the 1-year period beginning on the date 
of the breach of the agreement. 
(Added Pub. L. 105-368, title VIII, Sec. 802(a), Nov. 11, 1998, 112 
Stat. 3355.) 


987 CH. 76-HEALTH PROFESSIONALS ED. ASST. Sec. 7682 

ï¿½ï¿½ 7676. Repealed. Pub. L. 107-135, title I, Sec. 101(a)(1), Jan. 
23, 2002, 115 Stat. 2447ï¿½ 

SUBCHAPTER VII-EDUCATION DEBT REDUCTION 
PROGRAM 


ï¿½ 7681. Authority for program 

(a) IN GENERAL.-(1) As part of the Educational Assistance 
Program, the Secretary may carry out an education debt reduction 
program under this subchapter. The program shall be known as 
the Department of Veterans Affairs Education Debt Reduction Program 
(hereinafter in this subchapter referred to as the ï¿½ï¿½Education 
Debt Reduction Programï¿½ï¿½). 
(2) The purpose of the Education Debt Reduction Program is 
to assist in the recruitment of qualified health care professionals 
for positions in the Veterans Health Administration for which 
recruitment or retention of an adequate supply of qualified personnel 
is difficult. 
(b) RELATIONSHIP TO EDUCATIONAL ASSISTANCE PROGRAM.- 
Education debt reduction payments under the Education Debt Reduction 
Program may be in addition to other assistance available 
to individuals under the Educational Assistance Program. 
(Added Pub. L. 105-368, title VIII, Sec. 803(a), Nov. 11, 1998, 112 
Stat. 3357; amended Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 
115 Stat. 35.) 

ï¿½ 7682. Eligibility 

(a) ELIGIBILITY.-An individual is eligible to participate in the 
Education Debt Reduction Program if the individual- 
(1) is a recently appointed employee in the Veterans 
Health Administration serving in a position (as determined by 
the Secretary) providing direct-patient care services or services 
incident to direct-patient care services for which recruitment or 
retention of qualified health-care personnel (as so determined) 
is difficult; and 
(2) owes any amount of principal or interest under a loan, 
the proceeds of which were used by or on behalf of that individual to 
pay costs relating to a course of education or training 
which led to a degree that qualified the individual for the position 
referred to in paragraph (1). 
(b) COVERED COSTS.-For purposes of subsection (a)(2), costs 
relating to a course of education or training include- 
(1) tuition expenses; 
(2) all other reasonable educational expenses, including expenses for 
fees, books, and laboratory expenses; and 
(3) reasonable living expenses. 
(c) RECENTLY APPOINTED INDIVIDUALS.-For purposes of subsection (a), an 
individual shall be considered to be recently appointed to a position 
if the individual has held that position for less 
than 6 months. 
(Added Pub. L. 105-368, title VIII, Sec. 803(a), Nov. 11, 1998, 112 
Stat. 3357; amended Pub. L. 107-135, title I, Sec. 102(b), Jan. 23, 
2002, 115 Stat. 2448.) 


Sec. 7683 CH. 76-HEALTH PROFESSIONALS ED. ASST. 988 

ï¿½ 7683. Education debt reduction 

(a) IN GENERAL.-Education debt reduction payments under 
the Education Debt Reduction Program shall consist of payments 
to individuals selected to participate in the program of amounts to 
reimburse such individuals for payments by such individuals of 
principal and interest on loans described in section 7682(a)(2) of 
this title. 
(b) FREQUENCY OF PAYMENT.-(1) The Secretary may make 
education debt reduction payments to any given participant in the 
Education Debt Reduction Program on a monthly or annual basis, 
as determined by the Secretary. 
(2) The Secretary shall make such payments at the end of the 
period determined by the Secretary under paragraph (1). 
(c) PERFORMANCE REQUIREMENT.-The Secretary may make 
education debt reduction payments to a participant in the Education 
Debt Reduction Program for a period only if the Secretary 
determines that the individual maintained an acceptable level of 
performance in the position or positions served by the participant 
during the period. 
(d) MAXIMUM ANNUAL AMOUNT.-(1) Subject to paragraph (2), 
the amount of education debt reduction payments made to a participant 
under the Education Debt Reduction Program may not exceed $44,000 over 
a total of five years of participation in the Program, of which not 
more than $10,000 of such payments may be 
made in each of the fourth and fifth years of participation in the 
Program. 
(2) The total amount payable to a participant in such Program 
for any year may not exceed the amount of the principal and interest on 
loans referred to in subsection (a) that is paid by the individual during 
such year. 
(Added Pub. L. 105-368, title VIII, Sec. 803(a), Nov. 11, 1998, 112 
Stat. 3357; amended Pub. L. 107-135, title I, Sec. 102(c), Jan. 23, 
2002, 115 Stat. 2448.) 

ï¿½ï¿½ 7684. Repealed. Pub. L. 107-135, title I, Sec. 102(a)(1), Jan. 
23, 2002, 115 Stat. 2448ï¿½ 


CHAPTER 77 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


989 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 
CHAPTER 77-VETERANS BENEFITS ADMINISTRATION 

SUBCHAPTER I-ORGANIZATION; GENERAL 

Sec. 
7701. Organization of the Administration. 
7703. Functions of the Administration. 
SUBCHAPTER II-QUALITY ASSURANCE 
7731. Establishment. 
7732. Functions. 
7732A. Employee certification. 
7733. Personnel. 
7734. Annual report to Congress. 
SUBCHAPTER I-ORGANIZATION; GENERAL 

ï¿½ 7701. Organization of the Administration 

(a) There is in the Department of Veterans Affairs a Veterans 
Benefits Administration. The primary function of the Veterans 
Benefits Administration is the administration of nonmedical benefits 
programs of the Department which provide assistance to veterans and 
their dependents and survivors. 
(b) The Veterans Benefits Administration is under the Under 
Secretary for Benefits, who is directly responsible to the Secretary 
for the operations of the Administration. The Under Secretary for 
Benefits may be referred to as the Chief Benefits Director. 
(Added Pub. L. 102-83, Sec. 2(b), Aug. 6, 1991, 105 Stat. 399; amended 
Pub. L. 102- 
405, title III, Sec. 302(c)(1), (3), Oct. 9, 1992, 106 Stat. 1984.) 

ï¿½ 7703. Functions of the Administration 

The Veterans Benefits Administration is responsible for the 
administration of the following programs of the Department: 

(1) Compensation and pension programs. 
(2) Vocational rehabilitation and educational assistance 
programs. 
(3) Veteransï¿½ housing loan programs. 
(4) Veteransï¿½ and servicemembersï¿½ life insurance programs. 
(5) Outreach programs and other veteransï¿½ services pro
grams. 
(Added Pub. L. 102-83, Sec. 2(b), Aug. 6, 1991, 105 Stat. 399.) 

991 


Sec. 7731 CH. 77-VETERANS BENEFITS ADMINISTRATION 992 

SUBCHAPTER II-QUALITY ASSURANCE 

ï¿½ 7731. Establishment 

(a) The Secretary shall carry out a quality assurance program 
in the Veterans Benefits Administration. The program may be carried out 
through a single quality assurance division in the Administration or 
through separate quality assurance entities for each of 
the principal organizational elements (known as ï¿½ï¿½servicesï¿½ï¿½) of the 
Administration. 
(b) The Secretary shall ensure that any quality assurance entity 
established and operated under subsection (a) is established and 
operated so as to meet generally applicable governmental standards for 
independence and internal controls for the performance of 
quality reviews of Government performance and results. 
(c)(1) The Secretary shall enter into a contract with an independent 
third-party entity to conduct, during the three-year period 
beginning on the date of the enactment of the Veteransï¿½ Benefits 
Improvement Act of 2008, an assessment of the quality assurance 
program carried out under subsection (a). 

(2) The assessment conducted under paragraph (1) shall evaluate the 
following: 
(A) The quality and accuracy of the work of employees of 
the Veterans Benefits Administration, using a statistically 
valid sample of such employees and a statistically valid sample 
of such work. 
(B) The performance of each regional office of the Veterans 
Benefits Administration. 
(C) The accuracy of the disability ratings assigned under 
the schedule for rating disabilities under section 1155 of this 
title. 
(D) The consistency of disability ratings among regional offices of 
the Veterans Benefits Administration, based on a sample of specific 
disabilities. 
(E) The performance of employees and managers of the 
Veterans Benefits Administration. 
(3) The Secretary shall develop a mechanism for the automated 
gathering and producing of data that can be used to monitor and 
assess trends relating to the items described in paragraph (2). 
(4)(A) Beginning on the date that is six months after the date 
of the enactment of the Veteransï¿½ Benefits Improvement Act of 
2008, the Secretary shall- 

(i) for each claim for disability compensation under laws 
administered by the Secretary submitted to the Secretary on or 
after such date, retain, monitor, and store in an accessible format 
the data described in subparagraph (B); and 
(ii) develop a demographic baseline for the data retained, 
monitored, and stored under subparagraph (A). 
(B) The data described in this subparagraph includes the following: 
(i) For each claim for disability compensation under laws 
administered by the Secretary submitted by a claimant- 
(I) the State in which the claimant resided when the 
claim was submitted; 

993 CH. 77-VETERANS BENEFITS ADMINISTRATION Sec. 7733 

(II) the decision of the Secretary with respect to the 
claim and each issue claimed; and 
(III) the regional office and individual employee of the 
Department responsible for rating the claim. 
(ii) The State in which the claimant currently resides. 
(iii) Such other data as the Secretary determines is appropriate for 
monitoring the accuracy and consistency of decisions 
with respect to such claims. 
(5) Nothing in this subsection shall be construed to require the 
Secretary to replace the quality assurance program under subsection (a) 
that was in effect on the day before the date of the enactment of this 
subsection. 
(Added Pub. L. 106-117, Sec. 801(a)(1), Nov. 30, 1999, 113 Stat. 1585; 
amended Pub. L. 110-389, title II, Sec. 224(a), Oct. 10, 2008, 122 
Stat. 4157.) 

ï¿½ 7732. Functions 

The Under Secretary for Benefits, acting through the quality 
assurance entities established under section 7731(a), shall on an 
ongoing basis perform and oversee quality reviews of the functions 
of each of the principal organizational elements of the Veterans 
Benefits Administration. 

(Added Pub. L. 106-117, Sec. 801(a)(1), Nov. 30, 1999, 113 Stat. 1585.) 

ï¿½ 7732A. Employee certification 

(a) DEVELOPMENT OF CERTIFICATION EXAMINATION.-(1) The 
Secretary shall provide for an examination of appropriate employees and 
managers of the Veterans Benefits Administration who are 
responsible for processing claims for compensation and pension 
benefits under the laws administered by the Secretary. 
(2) In developing the examination required by paragraph (1), 
the Secretary shall- 
(A) consult with appropriate individuals or entities, including 
examination development experts, interested stakeholders, 
and employee representatives; and 
(B) consider the data gathered and produced under section 
7731(c)(3) of this title. 
(b) EMPLOYEE AND MANAGER REQUIREMENT.-The Secretary 
shall require appropriate employees and managers of the Veterans 
Benefits Administration who are responsible for processing claims 
for compensation and pension benefits under the laws administered 
by the Secretary to take the examination provided under subsection (a). 
(Added Pub. L. 110-389, title II, Sec. 225(a)(1), Oct. 10, 2008, 122 
Stat. 4158.) 

ï¿½ 7733. Personnel 

The Secretary shall ensure that the number of full-time employees of 
the Veterans Benefits Administration assigned to quality 
assurance functions under this subchapter is adequate to perform 
the quality assurance functions for which they have responsibility. 

(Added Pub. L. 106-117, Sec. 801(a)(1), Nov. 30, 1999, 113 Stat. 1585.) 


Sec. 7734 CH. 77-VETERANS BENEFITS ADMINISTRATION 994 

ï¿½ 7734. Annual report to Congress 

The Secretary shall include in the annual report to the Congress 
required by section 529 of this title a report on the quality 
assurance activities carried out under this subchapter. Each such 
report shall include- 

(1) an appraisal of the quality of services provided by the 
Veterans Benefits Administration, including- 
(A) the number of decisions reviewed; 
(B) a summary of the findings on the decisions reviewed; 
(C) the number of full-time equivalent employees assigned to quality 
assurance in each division or entity; 
(D) specific documentation of compliance with the 
standards for independence and internal control required 
by section 7731(b) of this title; and 
(E) actions taken to improve the quality of services 
provided and the results obtained; 
(2) information with respect to the accuracy of decisions, 
including trends in that information; and 
(3) such other information as the Secretary considers ap
propriate. 
(Added Pub. L. 106-117, Sec. 801(a)(1), Nov. 30, 1999, 113 Stat. 1585.) 


CHAPTER 78 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


995 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 

CHAPTER 78-VETERANSï¿½ CANTEEN SERVICE 

Sec. 
7801. Purpose of Veteransï¿½ Canteen Service. 
7802. Duties of Secretary with respect to Service. 
7803. Operation of Service. 
7804. Financing of Service. 
7805. Revolving fund. 
7806. Budget of Service. 
7807. Audit of accounts. 
7808. Service to be independent unit. 
7809. Child-care centers. 
7810. Exemption from personnel ceilings.


ï¿½ 7801. Purpose of Veteransï¿½ Canteen Service 

The Veteransï¿½ Canteen Service (hereinafter in this chapter referred to 
as the ï¿½ï¿½Serviceï¿½ï¿½) in the Department is an instrumentality 
of the United States, created for the primary purpose of making 
available to veterans of the Armed Forces who are hospitalized or 
domiciled in hospitals and homes of the Department, at reasonable 
prices, articles of merchandise and services essential to their comfort 
and well-being. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1248, Sec. 4201; renumbered 
Sec. 7801 and amended Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 
6, 1991, 105 Stat. 404; Pub. L. 107-14, Sec. 
8(a)(16), June 5, 2001, 115 Stat. 35.) 

ï¿½ 7802. Duties of Secretary with respect to Service 

(a) LOCATIONS FOR CANTEENS.-The Secretary shall establish, 
maintain, and operate canteens where deemed necessary and practicable 
at hospitals and homes of the Department and at other Department 
establishments where similar essential facilities are not 
reasonably available from outside commercial sources. 
(b) WAREHOUSES AND STORAGE DEPOTS.-The Secretary shall 
establish, maintain, and operate such warehouses and storage depots as 
may be necessary in operating the canteens. 
(c) SPACE, BUILDINGS, AND STRUCTURES.-The Secretary shall 
furnish the Service for its use in connection with the establishment, 
maintenance, and operation thereof, such space, buildings, 
and structures under control of the Department as the Secretary 
may consider necessary, including normal maintenance and repair 
service thereon. Reasonable charges, to be determined by the Secretary, 
shall be paid annually by the Service for the space, buildings, and 
structures so furnished, except that the Secretary may reduce or waive 
such charges whenever payment of such charges 
would impair the working capital required by the Service. 
997 


Sec. 7802 CH. 78-VETERANSï¿½ CANTEEN SERVICE 998 

(d) EQUIPMENT, SERVICES, AND UTILITIES.-The Secretary shall 
transfer to the Service without charge, rental, or reimbursement 
such necessary equipment as may not be needed for other purposes, and 
furnish the Service such services and utilities, including 
light, water, and heat, as may be available and necessary for its 
use. Reasonable charges, to be determined by the Secretary, shall 
be paid annually by the Service for the utilities so furnished. 
(e) PERSONNEL.-The Secretary shall employ such persons as 
are necessary for the establishment, maintenance, and operation of 
the Service, and pay the salaries, wages, and expenses of all such 
employees from the funds of the Service. Personnel necessary for 
the transaction of the business of the Service at canteens, warehouses, 
and storage depots shall be appointed, compensated from 
funds of the Service, and removed by the Secretary without regard 
to the provisions of title 5 governing appointments in the competitive 
service and chapter 51 and subchapter III of chapter 53 of title 
5. Those employees are subject to the provisions of title 5 relating 
to a preference eligible described in section 2108(3) of title 5, 
subchapter I of chapter 81 of title 5, and subchapter III of chapter 83 
of title 5. An employee appointed under this section may be considered 
for appointment to a Department position in the competitive 
service in the same manner that a Department employee in the 
competitive service is considered for transfer to such position. An 
employee of the Service who is appointed to a Department position 
in the competitive service under the authority of the preceding 
sentence may count toward the time-in-service requirement for a career 
appointment in such position any previous period of employment in the 
Service. 
(f) CONTRACTS AND AGREEMENTS.-The Secretary shall make 
all necessary contracts or agreements to purchase or sell merchandise, 
fixtures, equipment, supplies, and services, without regard to 
section 3709 of the Revised Statutes (41 U.S.C. 5) and to do all 
things necessary to carry out such contracts or agreements, including 
the making of necessary adjustments and compromising of 
claims in connection therewith. 
(g) PRICES.-The Secretary shall fix the prices of merchandise 
and services in canteens so as to carry out the purposes of this 
chapter. 
(h) GIFTS AND DONATIONS.-The Secretary may accept gifts 
and donations of merchandise, fixtures, equipment, and supplies 
for the use and benefit of the Service. 
(i) RULES AND REGULATIONS.-The Secretary shall make such 
rules and regulations, not inconsistent with the provisions of this 
chapter, as the Secretary considers necessary or appropriate to 
effectuate its purposes. 
(j) DELEGATION.-The Secretary may delegate such duties and 
powers to employees as the Secretary considers necessary or 
appropriate, whose official acts performed within the scope of the 
delegated authority shall have the same force and effect as though 
performed by the Secretary. 
(k) AUTHORITY TO CASH CHECKS, ETC.-The Secretary may authorize the 
use of funds of the Service when available, subject to 
such regulations as the Secretary may deem appropriate, for the 
purpose of cashing checks, money orders, and similar instruments 

999 CH. 78-VETERANSï¿½ CANTEEN SERVICE Sec. 7804 

in nominal amounts for the payment of money presented by veterans 
hospitalized or domiciled at hospitals and homes of the Department, 
and by other persons authorized by section 7803 of this 
title to make purchases at canteens. Such checks, money orders, 
and other similar instruments may be cashed outright or may be 
accepted, subject to strict administrative controls, in payment for 
merchandise or services, and the difference between the amount of 
the purchase and the amount of the tendered instrument refunded 
in cash. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1248, Sec. 4202; Pub. L. 
86-109, Sec. 1, July 28, 1959, 73 Stat. 258; Pub. L. 94-581, title II, 
Sec. 210(d), Oct. 21, 1976, 90 Stat. 2864; Pub. L. 97-295, Sec. 4(88), 
Oct. 12, 1982, 96 Stat. 1312; Pub. L. 99-576, title VII, Sec. 702(13), 
Oct. 28, 1986, 100 Stat. 3302; renumbered Sec. 7802 and amended 
Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), (d)(1), May 7, 1991, 
105 Stat. 238, 239; Pub. L. 102-54, Sec. 14(e)(7), June 13, 1991, 105 
Stat. 287; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 405; Pub. L. 108-170, title III, 
Sec. 304, Dec. 6, 2003, 117 Stat. 2058.) 

ï¿½ 7803. Operation of Service 

(a) PRIMARY BENEFICIARIES.-Canteens operated by the Service 
shall be primarily for the use and benefit of- 
(1) veterans hospitalized or domiciled at the facilities at 
which canteen services are provided; and 
(2) other veterans who are enrolled under section 1705 of 
this title. 
(b) OTHER AUTHORIZED USERS.-Service at such canteens may 
also be furnished to- 
(1) personnel of the Department and recognized veteransï¿½ 
organizations who are employed at a facility at which canteen 
services are provided and to other persons so employed; 
(2) the families of persons referred to in paragraph (1) who 
reside at the facility; and 
(3) relatives and other persons while visiting a person 
specified in this section. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1249, Sec. 4203; renumbered 
Sec. 7803 and amended Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 6, 
1991, 105 Stat. 404; Pub. L. 106-117, title III, Sec. 302, Nov. 30, 
1999, 113 Stat. 1572; Pub. L. 108-422, title VI, Sec. 603, Nov. 
30, 2004, 118 Stat. 2397.) 

ï¿½ 7804. Financing of Service 

To finance the establishment, maintenance, and operation of 
the Service there is hereby authorized to be appropriated, from 
time to time, such amounts as are necessary to provide for (1) the 
acquisition of necessary furniture, furnishings, fixtures, and 
equipment for the establishment, maintenance, and operation of 
canteens, warehouses, and storage depots; (2) stocks of merchandise 
and supplies for canteens and reserve stocks of same in warehouses 
and storage depots; (3) salaries, wages, and expenses of all employees; 
(4) administrative and operation expenses; and (5) adequate 
working capital for each canteen and for the Service as a whole. 
Amounts appropriated under the authority contained in this chapter and 
all income from canteen operations become and will be administered as 
a revolving fund to effectuate the provisions of this 
chapter. 


Sec. 7805 CH. 78-VETERANSï¿½ CANTEEN SERVICE 1000 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1250, Sec. 4204; Pub. L. 
92-310, title II, Sec. 209, June 6, 1972, 86 Stat. 204; Pub. L. 99-576, 
title VII, Sec. 702(14), Oct. 28, 1986, 100 Stat. 3302; renumbered Sec. 
7804 and amended Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), May 7, 
1991, 105 Stat. 238.) 

ï¿½ 7805. Revolving fund 

The revolving fund shall be deposited in a checking account 
with the Treasury of the United States. Such amounts thereof as 
the Secretary may determine to be necessary to establish and 
maintain operating accounts for the various canteens may be deposited 
in checking accounts or other interest-bearing accounts in 
other depositaries selected by the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1250, Sec. 4205; Pub. L. 
100-322, title IV, Sec. 414(a)(1), May 20, 1988, 102 Stat. 549; 
renumbered Sec. 7805 and amended Pub. L. 102-40, title IV, Sec. 
402(a), (b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102- 
83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 7806. Budget of Service 

The Service shall prepare annually and submit a budget program as 
provided for wholly owned Government corporations by chapter 91 of 
title 31, which shall contain an estimate of the needs 
of the Service for the ensuing fiscal year including an estimate of 
the amount required to restore any impairment of the revolving 
fund resulting from operations of the current fiscal year. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1250, Sec. 4206; Pub. L. 
97-258, Sec. 3(k)(8), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 100-322, 
title IV, Sec. 414(a)(2), May 20, 1988, 102 Stat. 549; renumbered Sec. 
7806 and amended Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), May 7, 
1991, 105 Stat. 238.) 

ï¿½ 7807. Audit of accounts 

The Service shall maintain a set of accounts which shall be audited by 
the Comptroller General in accordance with the provisions of chapter 35 
of title 31. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1250, Sec. 4207; Pub. L. 93-604, 
title VII, Sec. 704, Jan. 2, 1975, 88 Stat. 1964; Pub. L. 97-295, Sec. 
4(89), Oct. 12, 1982, 96 Stat. 1312; Pub. L. 97-452, Sec. 2(e)(3), Jan. 
12, 1983, 96 Stat. 2479; renumbered Sec. 7807 and amended Pub. L. 
102-40, title IV, Sec. 402(a), (b)(1), May 7, 1991, 105 Stat. 238.) 

ï¿½ 7808. Service to be independent unit 

It is the purpose of this chapter that, under control and supervision of 
the Secretary, the Service shall function as an independent unit in the 
Department and shall have exclusive control over all its activities 
including sales, procurement and supply, finance, including 
disbursements, and personnel management, except as otherwise provided in 
this chapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1250, Sec. 4208; Pub. L. 
97-295, Sec. 4(90), Oct. 12, 1982, 96 Stat. 1312; renumbered Sec. 7808 
and amended Pub. L. 102-40, title IV, Sec. 402(a), (b)(1), May 7, 1991, 
105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 
Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 7809. Child-care centers 

(a)(1) The Secretary, through the Service, shall provide for the 
operation of child-care centers at Department facilities in accordance 
with this section. The operation of such centers shall be carried out 
to the extent that the Secretary determines, based on the 


1001 CH. 78-VETERANSï¿½ CANTEEN SERVICE Sec. 7809 

demand for the care involved, that such operation is in the best 
interest of the Department and that is practicable to do so. The centers 
shall be available for the children of Department employees 
and, to the extent space is available, the children of other employees 
of the Federal Government and the children of employees of affiliated 
schools and corporations created under section 7361 of this title. 

(2) There shall be in the Service an official who is responsible 
for all matters relating to the provision of child-care services under 
the authority of this section. 
(b) The Service shall establish reasonable charges for childcare 
services provided at each child-care center operated under this 
section. The charges shall be subject to the approval of the Secretary. 
In the case of a center operated directly by the Service, the 
charges with respect to the center shall be sufficient to provide for 
the operating expenses of the center, including the expenses of personnel 
assigned to the center. In the case of a center operated by 
a contractor which is a for-profit entity, the charges shall be 
established by taking into consideration the value of the space and 
services furnished with respect to the center under subsection (c)(1) of 
this section. 
(c) In connection with the establishment and operation of any 
child-care center under this section, the Secretary- 
(1) shall furnish, at no cost to the center, space in existing 
Department facilities and utilities, custodial services, and 
other services and amenities necessary (as determined by the 
Secretary) for the health and safety of the children provided 
care at the center; 
(2) may, on a reimbursable basis, convert space furnished 
under clause (1) of this subsection for use as the child-care center 
and provide other items necessary for the operation of the 
center, including furniture, office machines and equipment, 
and telephone service, except that the Secretary may furnish 
basic telephone service and surplus furniture and equipment 
without reimbursement; 
(3) shall provide for the participation (directly or through 
a parent advisory committee) of parents of children receiving 
care in the center in the establishment of policies to govern the 
operation of the center and in the oversight of the implementation of 
such policies; 
(4) shall require the development and use of a process for 
determining the fitness and suitability of prospective employees of or 
volunteers at the center; and 
(5) shall require in connection with the operation of the 
center compliance with all State and local laws, ordinances, 
and regulations relating to health and safety and the operation 
of child-care centers. 
(d) The Secretary shall prescribe regulations to carry out this 
section. 
(e) For the purpose of this section, the term ï¿½ï¿½parent advisory 
committeeï¿½ï¿½ means a committee comprised of, and selected by, the 
parents of children receiving care in a child-care center operated 
under this section. 

Sec. 7810 CH. 78-VETERANSï¿½ CANTEEN SERVICE 1002 

(Added Pub. L. 100-322, title IV, Sec. 412(a), May 20, 1988, 102 Stat. 
547, Sec. 4209; renumbered Sec. 7809 and amended Pub. L. 102-40, title 
IV, Sec. 402(a), (b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-54, Sec. 14(e)(8), June 13, 1991, 105 Stat. 287; Pub. L. 
102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405.) 

ï¿½ 7810. Exemption from personnel ceilings 

Persons who are employed by the Service and compensated 
from the revolving fund established by section 7804 of this title 
may not be considered to be employees of the Department for the 
purposes of any personnel ceiling which may otherwise be applied 
to employees of the Department by the President or an official of 
the executive branch. 

(Added Pub. L. 100-322, title IV, Sec. 414(b)(1), May 20, 1988, 102 
Stat. 549, Sec. 4210; renumbered Sec. 7810 and amended Pub. L. 
102-40, title IV, Sec. 402(a), (b)(1), (d)(1), May 7, 1991, 105 
Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), Aug. 
6, 1991, 105 Stat. 404.) 


CHAPTER 79 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


1003 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART V-BOARDS, ADMINISTRATIONS, AND SERVICESï¿½ 
CHAPTER 79-INFORMATION SECURITY EDUCATION 

ASSISTANCE PROGRAM 
Sec. 
7901. 
7902. 
7903. 
7904. 
7905. 
7906. 
7907. 
Programs; purpose. 
Scholarship program. 
Education debt reduction program. 
Preferences in awarding financial assistance.
Requirement of honorable discharge for veterans receiving assistance. 
Regulations. 
Termination. 

ï¿½ 7901. Programs; purpose 

(a) IN GENERAL.-To encourage the recruitment and retention 
of Department personnel who have the information security skills 
necessary to meet Department requirements, the Secretary may 
carry out programs in accordance with this chapter to provide financial 
support for education in computer science and electrical 
and computer engineering at accredited institutions of higher education. 
(b) TYPES OF PROGRAMS.-The programs authorized under this 
chapter are as follows: 
(1) Scholarships for pursuit of doctoral degrees in computer science 
and electrical and computer engineering at accredited institutions of 
higher education. 
(2) Education debt reduction for Department personnel 
who hold doctoral degrees in computer science and electrical 
and computer engineering at accredited institutions of higher 
education. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120 
Stat. 3460.) 

ï¿½ 7902. Scholarship program 

(a) AUTHORITY.-(1) Subject to the availability of appropriations, the 
Secretary may establish a scholarship program under 
which the Secretary shall, subject to subsection (d), provide financial 
assistance in accordance with this section to a qualified person- 
(A) who is pursuing a doctoral degree in computer science 
or electrical or computer engineering at an accredited institution of 
higher education; and 
(B) who enters into an agreement with the Secretary as 
described in subsection (b). 
(2)(A) Except as provided in subparagraph (B), the Secretary 
may provide financial assistance under this section to an individual 
for up to five years. 

1005 


Sec. 7902 CH. 79-INFORMATION SECURITY EDUCATION ASSISTANCE PROGRA...1006 

(B) The Secretary may waive the limitation under subparagraph (A) if the 
Secretary determines that such a waiver is appropriate. 
(b) SERVICE AGREEMENT FOR SCHOLARSHIP RECIPIENTS.-(1) To 
receive financial assistance under this section an individual shall 
enter into an agreement to accept and continue employment in the 
Department for the period of obligated service determined under 
paragraph (2). 
(2) For the purposes of this subsection, the period of obligated 
service for a recipient of financial assistance under this section 
shall be the period determined by the Secretary as being appropriate to 
obtain adequate service in exchange for the financial assistance and 
otherwise to achieve the goals set forth in section 
7901(a) of this title. In no event may the period of service required 
of a recipient be less than the period equal to the total period of 
pursuit of a degree for which the Secretary agrees to provide the 
recipient with financial assistance under this section. The period of 
obligated service is in addition to any other period for which the 
recipient is obligated to serve on active duty or in the civil service, 
as the case may be. 
(3) An agreement entered into under this section by a person 
pursuing a doctoral degree shall include terms that provide the 
following: 
(A) That the period of obligated service begins on a date 
after the award of the degree that is determined under the regulations 
prescribed under section 7906 of this title. 
(B) That the individual will maintain satisfactory academic 
progress, as determined in accordance with those regulations, 
and that failure to maintain such progress constitutes grounds 
for termination of the financial assistance for the individual 
under this section. 
(C) Any other terms and conditions that the Secretary determines 
appropriate for carrying out this section. 
(c) AMOUNT OF ASSISTANCE.-(1) The amount of the financial 
assistance provided for an individual under this section shall be the 
amount determined by the Secretary as being necessary to pay- 
(A) the tuition and fees of the individual; and 
(B) $1,500 to the individual each month (including a 
month between academic semesters or terms leading to the degree for 
which such assistance is provided or during which the 
individual is not enrolled in a course of education but is pursuing 
independent research leading to such degree) for books, 
laboratory expenses, and expenses of room and board. 
(2) In no case may the amount of assistance provided for an 
individual under this section for an academic year exceed $50,000. 
(3) In no case may the total amount of assistance provided for 
an individual under this section exceed $200,000. 
(4) Notwithstanding any other provision of law, financial assistance 
paid an individual under this section shall not be considered as income 
or resources in determining eligibility for, or the 
amount of benefits under, any Federal or federally assisted program. 
(d) REPAYMENT FOR PERIOD OF UNSERVED OBLIGATED SERVICE.-(1) An
individual who receives financial assistance under this 

1007CH. 79-INFORMATION SECURITY EDUCATION ASSISTANCE PROGRA... Sec. 7903 

section shall repay to the Secretary an amount equal to the unearned 
portion of the financial assistance if the individual fails to 
satisfy the requirements of the service agreement entered into 
under subsection (b), except in circumstances authorized by the 
Secretary. 

(2) The Secretary may establish, by regulations, procedures for 
determining the amount of the repayment required under this subsection 
and the circumstances under which an exception to the required repayment 
may be granted. 
(3) An obligation to repay the Secretary under this subsection 
is, for all purposes, a debt owed the United States. A discharge in 
bankruptcy under title 11 does not discharge a person from such 
debt if the discharge order is entered less than five years after the 
date of the termination of the agreement or contract on which the 
debt is based. 
(e) WAIVER OR SUSPENSION OF COMPLIANCE.-The Secretary 
shall prescribe regulations providing for the waiver or suspension 
of any obligation of an individual for service or payment under this 
section (or an agreement under this section) whenever noncompliance by 
the individual is due to circumstances beyond the control 
of the individual or whenever the Secretary determines that the 
waiver or suspension of compliance is in the best interest of the 
United States. 
(f) INTERNSHIPS.-(1) The Secretary may offer a compensated 
internship to an individual for whom financial assistance is provided 
under this section during a period between academic semesters or terms 
leading to the degree for which such assistance is provided. 
Compensation provided for such an internship shall be in 
addition to the financial assistance provided under this section. 
(2) An internship under this subsection shall not be counted toward 
satisfying a period of obligated service under this section. 
(g) INELIGIBILITY OF INDIVIDUALS RECEIVING MONTGOMERY GI 
BILL EDUCATION ASSISTANCE PAYMENTS.-An individual who receives a 
payment of educational assistance under chapter 30, 31, 
32, 34, or 35 of this title or chapter 1606 or 1607 of title 10 for a 
month in which the individual is enrolled in a course of education 
leading to a doctoral degree in information security is not eligible 
to receive financial assistance under this section for that month. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120 
Stat. 3460.) 

ï¿½ 7903. Education debt reduction program 

(a) AUTHORITY.-Subject to the availability of appropriations, 
the Secretary may establish an education debt reduction program 
under which the Secretary shall make education debt reduction 
payments under this section to qualified individuals eligible under 
subsection (b) for the purpose of reimbursing such individuals for 
payments by such individuals of principal and interest on loans 
described in paragraph (2) of that subsection. 
(b) ELIGIBILITY.-An individual is eligible to participate in the 
program under this section if the individual- 
(1) has completed a doctoral degree in computer science or 
electrical or computer engineering at an accredited institution 
of higher education during the five-year period preceding the 
date on which the individual is hired; 

Sec. 7904 CH. 79-INFORMATION SECURITY EDUCATION ASSISTANCE PROGRA...1008 

(2) is an employee of the Department who serves in a position related 
to information security (as determined by the Secretary); and 
(3) owes any amount of principal or interest under a loan, 
the proceeds of which were used by or on behalf of that individual to 
pay costs relating to a doctoral degree in computer 
science or electrical or computer engineering at an accredited 
institution of higher education. 
(c) AMOUNT OF ASSISTANCE.-(1) Subject to paragraph (2), the 
amount of education debt reduction payments made to an individual under 
this section may not exceed $82,500 over a total of 
five years, of which not more than $16,500 of such payments may 
be made in each year. 
(2) The total amount payable to an individual under this section for 
any year may not exceed the amount of the principal and 
interest on loans referred to in subsection (b)(3) that is paid by the 
individual during such year. 
(d) PAYMENTS.-(1) The Secretary shall make education debt 
reduction payments under this section on an annual basis. 
(2) The Secretary shall make such a payment- 
(A) on the last day of the one-year period beginning on the 
date on which the individual is accepted into the program established 
under subsection (a); or 
(B) in the case of an individual who received a payment 
under this section for the preceding fiscal year, on the last day 
of the one-year period beginning on the date on which the individual 
last received such a payment. 
(3) Notwithstanding any other provision of law, education debt 
reduction payments under this section shall not be considered as 
income or resources in determining eligibility for, or the amount of 
benefits under, any Federal or federally assisted program. 
(e) PERFORMANCE REQUIREMENT.-The Secretary may make 
education debt reduction payments to an individual under this section 
for a year only if the Secretary determines that the individual 
maintained an acceptable level of performance in the position or 
positions served by the individual during the year. 
(f) NOTIFICATION OF TERMS OF PROVISION OF PAYMENTS.-The 
Secretary shall provide to an individual who receives a payment 
under this section notice in writing of the terms and conditions 
that apply to such a payment. 
(g) COVERED COSTS.-For purposes of subsection (b)(3), costs 
relating to a course of education or training include- 
(1) tuition expenses; and 
(2) all other reasonable educational expenses, including 
fees, books, and laboratory expenses. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120
Stat. 3462.) 

ï¿½ 7904. Preferences in awarding financial assistance 

In awarding financial assistance under this chapter, the Secretary shall 
give a preference to qualified individuals who are otherwise eligible 
to receive the financial assistance in the following 
order of priority: 

(1) Veterans with service-connected disabilities. 
(2) Veterans. 

1009CH. 79-INFORMATION SECURITY EDUCATION ASSISTANCE PROGRA... Sec. 7907 

(3) Persons described in section 4215(a)(1)(B) of this title. 
(4) Individuals who received or are pursuing degrees at institutions 
designated by the National Security Agency as Centers of Academic 
Excellence in Information Assurance Education. 
(5) Citizens of the United States. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120 
Stat. 3463.) 
ï¿½ 7905. Requirement of honorable discharge for veterans receiving 
assistance 

No veteran shall receive financial assistance under this chapter unless 
the veteran was discharged from the Armed Forces 
under honorable conditions. 

(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120 
Stat. 3464.) 

ï¿½ 7906. Regulations 

The Secretary shall prescribe regulations for the administration of 
this chapter. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 120 
Stat. 3464.) 

ï¿½ 7907. Termination 

The authority of the Secretary to make a payment under this 
chapter shall terminate on July 31, 2017. 
(Added Pub. L. 109-461, title IX, Sec. 903(a)(1), Dec. 22, 2006, 
120 Stat. 3464.) 


CHAPTER 81 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


1011 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

PART VI-ACQUISITION AND DISPOSITION OF 
PROPERTY


Chapter Sec. 

81. Acquisition and Operation of Hospital and Domiciliary Facilities; 
Procurement and Supply; Enhanced-Use Leases of Real Property ...... 8101 
82. Assistance in Establishing New State Medical 
Schools; Grants to Affiliated Medical Schools; Assistance to Health 
Manpower Training Institutions .................................... 8201 
83. Acceptance of Gifts and Bequests .............................. 8301
85. Disposition of Deceased Veteransï¿½ Personal Property ............................................................................ 8501 
1013 


CHAPTER 81-ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
FACILITIES; PROCUREMENT 
AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY 

SUBCHAPTER I-ACQUISITION AND OPERATION OF MEDICAL FACILITIES 

Sec. 

8101. Definitions. 

8102. Acquisition of medical facilities. 

8103. Authority to construct and alter, and to acquire sites for, 
medical facilities. 

8104. Congressional approval of certain medical facility acquisitions. 

8105. Structural requirements. 

8106. Construction contracts. 

8107. Operational and construction plans for medical facilities. 

8108. Contributions to local authorities. 

8109. Parking facilities. 

8110. Operation of medical facilities. 

8111. Sharing of Department of Veterans Affairs and Department of 
Defense 
health care resources. 

8111A. Furnishing of health-care services to members of the Armed 
Forces during 
a war or national emergency. 

8112. Partial relinquishment of legislative jurisdiction. 

8113. Property formerly owned by National Home for Disabled Volunteer 
Soldiers. 

8114. Use of federally owned facilities; use of personnel. 

8115. Acceptance of certain property. 

8116. Nursing home revolving fund. 

8117. Emergency preparedness. 

8118. Authority for transfer of real property; Department of Veterans 
Affairs 
Capital Asset Fund. 

8119. Annual report on outpatient clinics. 

SUBCHAPTER II-PROCUREMENT AND SUPPLY 

8121. Revolving supply fund. 

8122. Authority to procure and dispose of property and to negotiate for 
common 
services. 

8123. Procurement of prosthetic appliances. 

8124. Grant of easements in Government-owned lands. 

8125. Procurement of health-care items. 

8126. Limitation on prices of drugs procured by Department and certain 
other 
Federal agencies. 

8127. Small business concerns owned and controlled by veterans: 
contracting 
goals and preferences. 

8128. Small business concerns owned and controlled by veterans: 
contracting priority. 

SUBCHAPTER III-STATE HOME FACILITIES FOR FURNISHING 
DOMICILIARY, NURSING HOME, AND HOSPITAL CARE 


8131. Definitions. 
8132. Declaration of purpose. 
8133. Authorization of appropriations. 
8134. General regulations. 
8135. Applications with respect to projects; payments. 
8136. Recapture provisions. 
8137. State control of operations. 
8138. Treatment of certain health facilities as State homes. 


1015 


Sec. 8101 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1016 

SUBCHAPTER IV-SHARING OF MEDICAL FACILITIES, EQUIPMENT, AND 
INFORMATION 


8151. Statement of congressional purpose. 
8152. Definitions. 
8153. Sharing of health-care resources. 
8154. Exchange of medical information. 
8155. Pilot programs; grants to medical schools. 
8156. Coordination with health services development activities 
carried out under 


the National Health Planning and Resources Development Act of 1974. 
8157. Joint title to medical equipment. 
8158. Deposit in escrow. 

SUBCHAPTER V-ENHANCED-USE LEASES OF REAL PROPERTY 

8161. Definitions. 
8162. Enhanced-use leases. 
8163. Hearing and notice requirements regarding proposed leases. 
8164. Authority for disposition of leased property. 
8165. Use of proceeds. 
8166. Construction standards. 
8167. Exemption from State and local taxes. 
[8168. Repealed.] 
8169. Expiration.


AMENDMENT OF ANALYSIS 

Pub. L. 108-422, title IV, Sec. 411(c)(2), (f), Nov. 30, 2004, 118 
Stat. 2389, 2390, provided that, effective at the end of the 30-day 
period beginning on the date on which the Secretary of Veterans 
Affairs certifies to Congress that the Secretary is in compliance 
with section 1710B(b) of this title, this analysis is amended by 
striking out item 8116. 

SUBCHAPTER I-ACQUISITION AND OPERATION OF 
MEDICAL FACILITIES 

ï¿½ 8101. Definitions 

For the purposes of this subchapter: 

(1) The term ï¿½ï¿½alterï¿½ï¿½, with respect to a medical facility, means 
to repair, remodel, improve, or extend such medical facility. 
(2) The terms ï¿½ï¿½constructï¿½ï¿½ and ï¿½ï¿½alterï¿½ï¿½, with respect to a medical 
facility, include such engineering, architectural, legal, fiscal, and 
economic investigations and studies and such surveys, designs, 
plans, construction documents, specifications, procedures, and other 
similar actions as are necessary for the construction or alteration, 
as the case may be, of such medical facility and as are carried out 
after the completion of the advanced planning (including the 
development of project requirements and design development) for such 
facility. 
(3) The term ï¿½ï¿½medical facilityï¿½ï¿½ means any facility or part thereof 
which is, or will be, under the jurisdiction of the Secretary for 
the provision of health-care services (including hospital, nursing 
home, or domiciliary care or medical services), including any necessary 
building and auxiliary structure, garage, parking facility, 
mechanical equipment, trackage facilities leading thereto, abutting 
sidewalks, accommodations for attending personnel, and recreation 
facilities associated therewith. 
(4) The term ï¿½ï¿½committeeï¿½ï¿½ means the Committee on Veteransï¿½ 
Affairs of the House of Representatives or the Committee on Vet

1017 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8103 

eransï¿½ Affairs of the Senate, and the term ï¿½ï¿½committeesï¿½ï¿½ means both 
such committees. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
55, Sec. 5001; renumbered Sec. 8101, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 104-262, 
title II, Sec. 207(a), Oct. 9, 1996, 110 Stat. 3190.) 

ï¿½ 8102. Acquisition of medical facilities 

(a) The Secretary shall provide medical facilities for veterans 
entitled to hospital, nursing home, or domiciliary care or medical 
services under this title. 
(b) No medical facility may be constructed or otherwise acquired or 
altered except in accordance with the provisions of this 
subchapter. 
(c) In carrying out this subchapter, the Secretary- 
(1) shall provide for the construction and acquisition of 
medical facilities in a manner that results in the equitable 
distribution of such facilities throughout the United States, taking 
into consideration the comparative urgency of the need for the 
services to be provided in the case of each particular facility; 
and 
(2) shall give due consideration to excellence of architecture and 
design. 
(d) In considering the need for any project for the construction, 
alteration, or acquisition (other than by exchange) of a medical 
facility which is expected to involve a total expenditure of more than 
$2,000,000, the Secretary shall give consideration to the sharing of 
health-care resources with the Department of Defense under section 8111 
of this title as an alternative to all or part of such 
project. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
55, Sec. 5002; amended Pub. L. 99-576, title II, Sec. 221(a), Oct. 28, 
1986, 100 Stat. 3259; renumbered Sec. 8102 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-54, Sec. 14(f)(2), June 13, 1991, 105 Stat. 287; Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8103. Authority to construct and alter, and to acquire sites 
for, medical facilities 

(a) Subject to section 8104 of this title, the Secretary- 
(1) may construct or alter any medical facility and may acquire, by
purchase, lease, condemnation, donation, exchange, 
or otherwise, such land or interests in land as the Secretary 
considers necessary for use as the site for such construction or 
alteration; 
(2) may acquire, by purchase, lease, condemnation, donation, exchange, 
or otherwise, any facility (including the site of 
such facility) that the Secretary considers necessary for use as 
a medical facility; and 
(3) in order to assure compliance with section 8110(a)(2) of 
this title, in the case of any outpatient medical facility for 
which it is proposed to lease space and for which a qualified 
lessor and an appropriate leasing arrangement are available, 
shall execute a lease for such facility within 12 months after 
funds are made available for such purpose. 

Sec. 8103 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1018 

(b) Whenever the Secretary considers it to be in the interest of 
the United States to construct a new medical facility to replace an 
existing medical facility, the Secretary (1) may demolish the existing 
facility and use the site on which it is located for the site of 
the new medical facility, or (2) if in the judgment of the Secretary 
it is more advantageous to construct such medical facility on a different 
site in the same locality, may exchange such existing facility 
and the site of such existing facility for the different site. 
(c) Whenever the Secretary determines that any site acquired 
for the construction of a medical facility is not suitable for that 
purpose, the Secretary may exchange such site for another site to 
be used for that purpose or may sell such site. 
(d)(1) The Secretary may provide for the acquisition of not 
more than three facilities for the provision of outpatient services or 
nursing home care through lease-purchase arrangements on real 
property under the jurisdiction of the Department of Veterans Affairs. 

(2)(A) In carrying out this subsection and notwithstanding any 
other provision of law, the Secretary may lease, with or without 
compensation and for a period of not to exceed 35 years, to another 
party any of the real property described in paragraph (1) of this 
subsection. 

(B) Such real property shall be used as the site of a facility referred 
to in paragraph (1) of this subsection- 
(i) constructed and owned by the lessee of such real property; and 
(ii) leased under paragraph (3)(A) of this subsection to the 
Department for such use and for such other activities as the 
Secretary determines are appropriate. 
(3)(A) The Secretary may enter into a lease for the use of any 
facility described in paragraph (2)(B) of this subsection for not 
more than 35 years under such terms and conditions as may be in 
the best interests of the Department. 

(B) Each agreement to lease a facility under subparagraph (A) 
of this paragraph shall include a provision that- 
(i) the obligation of the United States to make payments 
under the agreement is subject to the availability of appropriations for 
that purpose; and 
(ii) the ownership of such facility shall vest in the United 
States at the end of such lease. 
(4)(A) The Secretary may sublease any space in such a facility 
to another party at a rate not less than- 

(i) the rental rate paid by the Secretary for such space 
under paragraph (3) of this subsection; plus 
(ii) the amount the Secretary pays for the costs of administering such 
facility (including operation, maintenance, utility, 
and rehabilitation costs) which are attributable to such space. 
(B) In any such sublease, the Secretary shall include such 
terms relating to default and nonperformance as the Secretary considers 
appropriate to protect the interests of the United States. 
(5) The Secretary shall use the receipts of any payment for the 
lease of real property under paragraph (2) for the payment of the 
lease of a facility under paragraph (3). 

1019 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8104 

(6) The authority to enter into an agreement under this subsection- 
(A) shall not take effect until the Secretary has entered 
into agreements under section 316 of this title to carry out at 
least three collocations; and 
(B) shall expire on October 1, 1993. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 56, 
Sec. 5003; amended Pub. L. 101-237, title VI, Sec. 603(b), Dec. 18, 1989, 
103 Stat. 2097; renumbered Sec. 8103 and amended Pub. L. 102-40, title IV, 
Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 103-446, 
title XII, Sec. 1201(d)(16), Nov. 2, 1994, 108Stat. 4684.) 

ï¿½ 8104. Congressional approval of certain medical facility 
acquisitions 

(a)(1) The purpose of this subsection is to enable Congress to 
ensure the equitable distribution of medical facilities throughout 
the United States, taking into consideration the comparative urgency of 
the need for the services to be provided in the case of each 
particular facility. 

(2) No funds may be appropriated for any fiscal year, and the 
Secretary may not obligate or expend funds (other than for advance 
planning and design), for any major medical facility project or any 
major medical facility lease unless funds for that project or lease 
have been specifically authorized by law. 
(3) For the purpose of this subsection: 
(A) The term ï¿½ï¿½major medical facility projectï¿½ï¿½ means a 
project for the construction, alteration, or acquisition of a medical 
facility involving a total expenditure of more than 
$10,000,000, but such term does not include an acquisition by 
exchange. 
(B) The term ï¿½ï¿½major medical facility leaseï¿½ï¿½ means a lease 
for space for use as a new medical facility at an average annual rental 
of more than $1,000,000. 
(b) Whenever the President or the Secretary submit to the 
Congress a request for the funding of a major medical facility 
project (as defined in subsection (a)(3)(A)) or a major medical 
facility lease (as defined in subsection (a)(3)(B)), the Secretary shall 
submit to each committee, on the same day, a prospectus of the 
proposed medical facility. Any such prospectus shall include the 
following: 
(1) A detailed description of the medical facility to be constructed, 
altered, leased, or otherwise acquired under this subchapter, including 
a description of the location of such facility 
and, in the case of a prospectus proposing the construction of 
a new or replacement medical facility, a description of the 
consideration that was given to acquiring an existing facility by 
lease or purchase and to the sharing of health-care resources 
with the Department of Defense under section 8111 of this 
title. 
(2) An estimate of the cost to the United States of the construction, 
alteration, lease, or other acquisition of such facility 
(including site costs, if applicable). 
(3) An estimate of the cost to the United States of the 
equipment required for the operation of such facility. 

Sec. 8104 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1020 

(4) Demographic data applicable to such facility, including 
information on projected changes in the population of veterans 
to be served by the facility over a five-year period and a ten-
year period. 
(5) Current and projected workload and utilization data regarding the 
facility. 
(6) Current and projected operating costs of the facility, including 
both recurring and non-recurring costs. 
(7) The priority score assigned to the project or lease under 
the Departmentï¿½s prioritization methodology and, if the project 
or lease is being proposed for funding before a project or lease 
with a higher score, a specific explanation of the factors other 
than the priority score that were considered and the basis on 
which the project or lease is proposed for funding ahead of 
projects or leases with higher priority scores. 
(8) In the case of a prospectus proposing the construction 
of a new or replacement medical facility, a description of each 
alternative to construction of the facility that was considered. 
(c) Not less than 30 days before obligating funds for a major 
medical facility project approved by a law described in subsection 
(a)(2) of this section in an amount that would cause the total 
amount obligated for that project to exceed the amount specified in 
the law for that project (or would add to total obligations exceeding 
such specified amount) by more than 10 percent, the Secretary 
shall provide the committees with notice of the Secretaryï¿½s intention 
to do so and the reasons for the specified amount being exceeded. 
(d) In any case in which the Secretary proposes that funds be 
used for a purpose other than the purpose for which such funds 
were appropriated, the Secretary shall promptly notify each committee, 
in writing, of the particulars involved and the reasons why 
such funds were not used for the purpose for which appropriated. 
(e) The Secretary may accept gifts or donations for any of the 
purposes of this subchapter. 
(f) The Secretary may not obligate funds in an amount in excess of 
$500,000 from the Advance Planning Fund of the Department toward design 
or development of a major medical facility 
project (as defined in subsection (a)(3)(A)) until- 
(1) the Secretary submits to the committees a report on 
the proposed obligation; and 
(2) a period of 30 days has passed after the date on which 
the report is received by the committees. 
(g) The limitation in subsection (f) does not apply to a project 
for which funds have been authorized by law in accordance with 
subsection (a)(2). 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
56, Sec. 5004; amended Pub. L. 99-166, title III, Sec. 301, 303, Dec. 
3, 1985, 99 Stat. 954, 955; Pub. L. 99-576, title II, Sec. 221(b), Oct. 
28, 1986, 100 Stat. 3259; Pub. L. 100-322, title IV, Sec. 422, May 20, 
1988, 102 Stat. 553; renumbered Sec. 8104 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405; Pub. L. 102-405, title III, Sec. 301(a), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 103-79, Sec. 3(a), Aug. 13, 1993, 107 Stat. 771; Pub. L. 
104-262, title II, Sec. 205(a), 206(a), (c), Oct. 9, 1996, 110 Stat. 
3189, 3190; Pub. L. 105-368, title VII, Sec. 704, Nov. 11, 1998, 112 
Stat. 3350; Pub. L. 108-170, title II, Sec. 201, Dec. 6, 2003, 117 
Stat. 2047; Pub. L. 108-422, title IV, Sec. 416, Nov. 30, 2004, 118 
Stat. 2393; Pub. L. 109-461, title 

1021 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8106 

VIII, Sec. 812, Dec. 22, 2006, 120 Stat. 3447; Pub. L. 110-387, title 
VII, Sec. 705, 
Oct. 10, 2008, 122 Stat. 4138.) 

ï¿½ 8105. Structural requirements 

(a) Each medical facility (including each nursing home facility 
for which the Secretary contracts under section 1720 of this title 
and each State home facility constructed or altered under subchapter 
III of this chapter) shall be of fire, earthquake, and other 
natural disaster resistant construction in accordance with standards 
which the Secretary shall prescribe on a State or regional 
basis after surveying appropriate State and local laws, ordinances, 
and building codes and climatic and seismic conditions pertinent to 
each such facility. When an existing structure is acquired for use 
as a medical facility, it shall be altered to comply with such standards. 
(b)(1) In order to carry out this section, the Secretary shall appoint 
an advisory committee to be known as the ï¿½ï¿½Advisory Committee on 
Structural Safety of Department Facilitiesï¿½ï¿½, on which 
shall serve at least one architect and one structural engineer who 
are experts in structural resistance to fire, earthquake, and other 
natural disasters and who are not employees of the Federal Government. 

(2) Such advisory committee shall advise the Secretary on all 
matters of structural safety in the construction and altering of 
medical facilities in accordance with the requirements of this section 
and shall review and make recommendations to the Secretary 
on the regulations prescribed under this section. 
(3) The Associate Deputy Secretary, the Under Secretary for 
Health or the designee of the Under Secretary for Health, and the 
Department official charged with the responsibility for construction 
shall be ex officio members of such advisory committee. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
57, Sec. 5005; 
amended Pub. L. 96-128, title V, Sec. 501(e), Nov. 28, 1979, 93 Stat. 
987; renumbered Sec. 8105, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 404- 406; Pub. L. 102-405, 
title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984.) 

ï¿½ 8106. Construction contracts 

(a) The Secretary may carry out any construction or alteration 
authorized under this subchapter by contract if the Secretary considers 
it to be advantageous to the United States to do so. 
(b)(1) The Secretary may obtain, by contract or otherwise, the 
services of individuals who are architects or engineers and of 
architectural and engineering corporations and firms, to the extent that 
the Secretary may require such services for any medical facility 
authorized to be constructed or altered under this subchapter. 

(2) No corporation, firm, or individual may be employed under 
the authority of paragraph (1) of this subsection on a permanent 
basis. 
(c) Notwithstanding any other provision of this section, the 
Secretary shall be responsible for all construction authorized under 
this subchapter, including the interpretation of construction contracts, 
the approval of materials and workmanship supplied pursuant to a 
construction contract, approval of changes in the construc

Sec. 8107 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1022 

tion contract, certification of vouchers for payments due the 
contractor, and final settlement of the contract. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
58, Sec. 5006; renumbered Sec. 8106, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 

ï¿½ 8107. Operational and construction plans for medical facilities 

(a) In order to promote effective planning for the efficient provision 
of care to eligible veterans, the Secretary, based on the analysis and 
recommendations of the Under Secretary for Health, shall 
submit to each committee an annual report regarding long-range 
health planning of the Department. The report shall be submitted 
each year not later than the date on which the budget for the next 
fiscal year is submitted to the Congress under section 1105 of title 
31. 
(b) Each report under subsection (a) shall include the following: 
(1) A five-year strategic plan for the provision of care 
under chapter 17 of this title to eligible veterans through coordinated 
networks of medical facilities operating within prescribed geographic 
service-delivery areas, such plan to include provision of services for 
the specialized treatment and rehabilitative needs of disabled veterans 
(including veterans with spinal cord dysfunction, blindness, amputations, 
and mental illness) through distinct programs or facilities of the Department 
dedicated to the specialized needs of those veterans. 
(2) A description of how planning for the networks will be 
coordinated. 
(c) The Secretary shall submit to each committee not later than 
January 31 of each year a report showing the location, space, cost, 
and status of each medical facility (1) the construction, alteration, 
lease, or other acquisition of which has been approved under section 
8104(a) of this title, and (2) which was uncompleted as of the 
date of the last preceding report made under this subsection. 
(d)(1) The Secretary shall submit to each committee, not later 
than January 31 of each year, a report showing the current priorities of 
the Department for proposed major medical construction projects. Each 
such report shall identify the 20 projects, from within all the 
projects in the Departmentï¿½s inventory of proposed 
projects, that have the highest priority and, for those 20 projects, 
the relative priority and rank scoring of each such project and the 
projected cost of such project (including the projected operating 
costs, including both recurring and nonrecurring costs). The 20 
projects shall be compiled, and their relative rankings shall be 
shown, by category of project (including the categories of ambulatory 
care projects, nursing home care projects, and such other categories 
as the Secretary determines). 

(2) The Secretary shall include in each report, for each project 
listed, a description of the specific factors that account for the 
relative ranking of that project in relation to other projects within the 
same category. 
(3) In a case in which the relative ranking of a proposed project 
has changed since the last report under this subsection was sub

1023 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8109 

mitted, the Secretary shall also include in the report a description 
of the reasons for the change in the ranking, including an explanation of 
any change in the scoring of the project under the Departmentï¿½s scoring 
system for proposed major medical construction 
projects. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 58, 
Sec. 5007; amended Pub. L. 99-166, title III, Sec. 302(a)-(c)(1), Dec. 3, 
1985, 99 Stat. 955; Pub. L. 99-576, title II, Sec. 222, Oct. 28, 1986, 
100 Stat. 3259; renumbered Sec. 8107 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; 
Pub. L. 102-54, Sec. 14(f)(3), June 13, 1991, 105 Stat. 287; Pub. L. 
102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 
102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. 
L. 104-262, title II, Sec. 204, Oct. 9, 1996, 110 Stat. 3188; Pub. L. 
105-368, title X, Sec. 1005(b)(18), Nov. 11, 1998, 112 Stat. 3365; 
Pub. L. 108-170, title II, Sec. 203, Dec. 6, 2003, 117 Stat. 2048.) 
ï¿½ 8108. Contributions to local authorities 

The Secretary may make contributions to local authorities toward, or 
for, the construction of traffic controls, road improvements, or other 
devices adjacent to a medical facility if considered 
necessary for safe ingress or egress. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
58, Sec. 5008; 
renumbered Sec. 8108, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 
Stat. 238; amended Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 
405.) 

ï¿½ 8109. Parking facilities 

(a) For the purpose of this section- 
(1) The term ï¿½ï¿½garageï¿½ï¿½ means a structure (or part of a 
structure) in which vehicles may be parked. 
(2) The term ï¿½ï¿½parking facilityï¿½ï¿½ includes- 
(A) a surface parking lot; and 
(B) a garage. 
(3) The term ï¿½ï¿½eligible personï¿½ï¿½ means an individual to 
whom the Secretary is authorized to furnish medical examination or 
treatment. 
(b) In order to accommodate the vehicles of employees of medical 
facilities, vehicles used to transport veterans and eligible persons 
to or from such facilities for the purpose of examination or 
treatment, and the vehicles of visitors and other individuals having 
business at such facilities, the Secretary- 
(1) may construct or alter parking facilities, and may acquire, by 
purchase, lease, condemnation, donation, exchange, 
or otherwise, such land or interests in land as the Secretary 
considers necessary for use as the site for any such construction or 
alteration; 
(2) may acquire, by purchase, lease, condemnation, donation, 
exchange, or otherwise, any facility that the Secretary 
considers necessary for use as a parking facility; and 
(3) may operate and maintain parking facilities. 
(c)(1) Except as provided in paragraph (2) of this subsection, 
each employee, visitor, and other individual having business at a 
medical facility for which parking fees have been established under 
subsection (d) or (e) of this section shall be charged the applicable 
parking fee for the use of a parking facility at such medical facility. 


Sec. 8109 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1024 

(2) A parking fee shall not be charged under this subsection for 
the accommodation of any vehicle used to transport to or from a 
medical facility- 
(A) a veteran or eligible person in connection with such 
veteran or eligible person seeking examination or treatment; or 
(B) a volunteer worker (as determined in accordance with 
regulations which the Secretary shall prescribe) in connection 
with such worker performing services for the benefit of veterans 
receiving care at a medical facility. 
(3) The Secretary shall collect (or provide for the collection of) 
parking fees charged under this subsection. 
(d)(1) For each medical facility where funds from the revolving 
fund described in subsection (h) of this section are expended for- 

(A) a garage constructed or acquired by the Department at 
a cost exceeding $500,000 (or, in the case of acquisition by 
lease, $100,000 per year); or 
(B) a project for the alteration of a garage at a cost exceed
ing $500,000, 
the Secretary shall prescribe a schedule of parking fees to be 
charged at all parking facilities used in connection with such 
medical facility. 

(2) The parking fee schedule prescribed for a medical facility 
referred to in paragraph (1) of this subsection shall be designed to 
establish fees which the Secretary determines are reasonable under 
the circumstances. 
(e) The Secretary may prescribe a schedule of parking fees for 
the parking facilities at any medical facility not referred to in 
subsection (d) of this section. Any such schedule shall be designed to 
establish fees which the Secretary determines to be reasonable 
under the circumstances and shall cover all parking facilities used 
in connection with such medical facility. 
(f) The Secretary may contract (by lease or otherwise) for the 
operation of parking facilities at medical facilities under such terms 
and conditions as the Secretary prescribes and may do so without 
regard to laws requiring full and open competition. 
(g) Subject to subsections (h) and (i) of this section, there are 
authorized to be appropriated such amounts as are necessary to finance 
(in whole or in part) the construction, alteration, and acquisition 
(including site acquisition) of parking facilities at medical 
facilities. 
(h)(1) Amounts appropriated pursuant to subsection (g) of this 
section and parking fees collected under subsection (c) of this 
section shall be administered as a revolving fund and shall be 
available without fiscal year limitation. 

(2) The revolving fund shall be deposited in a checking account 
with the Treasurer of the United States. 
(3)(A) Except as provided in subparagraph (B) of this paragraph, no 
funds other than funds from the revolving fund may be 
expended for the construction, alteration, or acquisition (including 
site acquisition) of a garage at a medical facility after September 
30, 1986. 

(B) Subparagraph (A) of this paragraph does not apply to the 
use of funds for investigations and studies, surveys, designs, plans, 

1025 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8110 

construction documents, specifications, and similar actions not 
directly involved in the physical construction of a structure. 

(i)(1) The expenditure of funds from the revolving fund may be 
made only for the construction, alteration, and acquisition (including 
site acquisition) of parking facilities at medical facilities and 
may be made only as provided for in appropriation Acts. 

(2) For the purpose of section 8104(a)(2) of this title, a bill, 
resolution, or amendment which provides that funds in the revolving 
fund (including any funds proposed in such bill, resolution, or 
amendment to be appropriated to the revolving fund) may be expended for a 
project involving a total expenditure of more than 
$4,000,000 for the construction, alteration, or acquisition (including 
site acquisition) of a parking facility or facilities at a medical 
facility shall be considered to be a bill, resolution, or amendment 
making an appropriation which may be expended for a major medical 
facility project. 
(j) Funds in a construction account or capital account that are 
available for a construction project or a nonrecurring maintenance 
project may be used for the construction or relocation of a surface 
parking lot incidental to that project. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
59, Sec. 5009; amended Pub. L. 99-576, title II, Sec. 223(a)(1), Oct. 
28, 1986, 100 Stat. 3259; renumbered Sec. 8109 and amended Pub. L. 
102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 
239; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405; Pub. L. 103-79, Sec. 3(b), Aug. 13, 1993, 107 
Stat. 771; Pub. L. 104-262, title II, Sec. 207(b), Oct. 9, 1996, 110 
Stat. 3190; Pub. L. 105-368, title VII, Sec. 705, Nov. 11, 1998, 112 
Stat. 3350; Pub. L. 108-422, title IV, Sec. 
415, Nov. 30, 2004, 118 Stat. 2393.) 

ï¿½ 8110. Operation of medical facilities 

(a)(1) The Secretary shall establish the total number of hospital beds 
and nursing home beds in medical facilities over which 
the Secretary has direct jurisdiction for the care and treatment of 
eligible veterans. The Secretary shall establish the total number of 
such beds so as to maintain a contingency capacity to assist the 
Department of Defense in time of war or national emergency to 
care for the casualties of such war or national emergency. Of the 
number of beds authorized pursuant to the preceding sentence, the 
Secretary shall maintain the availability of such additional beds 
and facilities in addition to the operating bed level as the Secretary 
considers necessary for such contingency purposes. The President 
shall include in the Budget transmitted to the Congress for each 
fiscal year pursuant to section 1105 of title 31, an amount for medical 
care and amounts for construction sufficient to maintain the 
availability of the contingency capacity referred to in the second 
sentence of this paragraph. The Secretary shall staff and maintain, 
in such a manner as to ensure the immediate acceptance and timely and 
complete care of patients, and in a manner consistent with 
the policies of the Secretary on overtime, sufficient beds and other 
treatment capacities to accommodate, and provide such care to, eligible 
veterans applying for admission and found to be in need of 
hospital care or medical services. 

(2) The Secretary shall maintain the bed and treatment capacities of 
all Department medical facilities, including the staffing required to 
maintain such capacities, so as to ensure the accessibility 

Sec. 8110 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1026 

and availability of such beds and treatment capacities to eligible 
veterans in all States, to minimize delays in admissions and in the 
provision of hospital, nursing home, and domiciliary care, and of 
medical services furnished pursuant to section 1710(a) of this title, 
and to ensure that eligible veterans are provided such care and 
services in an appropriate manner. 

(3)(A) The Under Secretary for Health shall at the end of each 
fiscal year (i) analyze agencywide admission policies and the 
records of those eligible veterans who apply for hospital care, medical 
services, and nursing home care, but are rejected or not immediately 
admitted or provided such care or services, and (ii) review 
and make recommendations regarding the adequacy of staff levels 
for compliance with the policy established under subparagraph (C), 
the adequacy of the established operating bed levels, the geographic 
distribution of operating beds, the demographic characteristics of the 
veteran population and the associated need for medical 
care and nursing home facilities and services in each State, and the 
proportion of the total number of operating beds that are hospital 
beds and that are nursing home beds. 

(B) After considering the analyses and recommendations of the 
Under Secretary for Health pursuant to subparagraph (A) of this 
paragraph for any fiscal year, the Secretary shall report to the 
committees, on or before December 1 after the close of such fiscal 
year, on the results of the analysis of the Under Secretary for 
Health and on the numbers of operating beds and level of treatment 
capacities required to enable the Department to carry out the 
primary function of the Veterans Health Administration. The Secretary 
shall include in each such report recommendations for (i) the 
numbers of operating beds and the level of treatment capacities 
required for the health care of veterans and the maintenance of the 
contingency capacity referred to in paragraph (1) of this subsection, 
and (ii) the appropriate staffing and funds therefor. 
(C) The Secretary shall, in consultation with the Under Secretary for 
Health, establish a nationwide policy on the staffing of 
Department medical facilities in order to ensure that such facilities 
have adequate staff for the provision to veterans of appropriate, 
high-quality care and services. The policy shall take into account 
the staffing levels and mixture of staff skills required for the range 
of care and services provided veterans in Department facilities. 
(4)(A) With respect to each law making appropriations for the 
Department for any fiscal year (or any part of a fiscal year), there 
shall be provided to the Department the funded personnel ceiling 
defined in subparagraph (C) of this paragraph and the funds 
appropriated therefor. 

(B) In order to carry out the provisions of subparagraph (A) of 
this paragraph, the Director of the Office of Management and 
Budget shall, with respect to each such law (i) provide to the 
Department for the fiscal year (or part of a fiscal year) concerned such 
funded personnel ceiling and the funds necessary to achieve such 
ceiling, and (ii) submit to the appropriate committees of the Congress 
and to the Comptroller General of the United States certification that 
the Director has so provided such ceiling. Not later 
than the thirtieth day after the enactment of such a law or, in the 
event of the enactment of such a law more than thirty days prior 

1027 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8110 

to the fiscal year for which such law makes such appropriations, 
not later than the tenth day of such fiscal year, the certification 
required in the first sentence of this subparagraph shall be submitted, 
together with a report containing complete information on 
the personnel ceiling that the Director has provided to the Department 
for the employees described in subparagraph (C) of this paragraph. 

(C) For the purposes of this paragraph, the term ï¿½ï¿½funded personnel 
ceilingï¿½ï¿½ means, with respect to any fiscal year (or part of a 
fiscal year), the authorization by the Director of the Office of 
Management and Budget to employ (under the appropriation accounts 
for medical care, medical and prosthetic research, and medical 
administration and miscellaneous operating expenses) not less than 
the number of employees for the employment of which appropriations have 
been made for such fiscal year (or part of a fiscal year). 
(5) Notwithstanding any other provision of this title or of any 
other law, funds appropriated for the Department under the 
appropriation accounts for medical care, medical and prosthetic research, 
and medical administration and miscellaneous operating expenses 
may not be used for, and no employee compensated from such 
funds may carry out any activity in connection with, the conduct 
of any study comparing the cost of the provision by private contractors 
with the cost of the provision by the Department of commercial 
or industrial products and services for the Veterans Health 
Administration unless such funds have been specifically appropriated for 
that purpose. 
(6)(A) Temporary research personnel of the Veterans Health 
Administration shall be excluded from any ceiling on full-time 
equivalent employees of the Department or any other personnel 
ceiling otherwise applicable to employees of the Department. 

(B) For purposes of subparagraph (A) of this paragraph, the 
term ï¿½ï¿½temporary research personnelï¿½ï¿½ means personnel who are employed 
in the Veterans Health Administration in other than a career appointment 
for work on a research activity and who are not 
paid by the Department or are paid from funds appropriated to the 
Department to support such activity. 
(b) When the Secretary determines, in accordance with regulations which 
the Secretary shall prescribe, that a Department facility serves a 
substantial number of veterans with limited English-
speaking ability, the Secretary shall establish and implement procedures, 
upon the recommendation of the Under Secretary for 
Health, to ensure the identification of sufficient numbers of 
individuals on such facilityï¿½s staff who are fluent in both the language 
most appropriate to such veterans and in English and whose 
responsibilities shall include providing guidance to such veterans and 
to appropriate Department staff members with respect to cultural 
sensitivities and bridging linguistic and cultural differences. 
(c) The Secretary shall include in the materials submitted to 
Congress each year in support of the budget of the Department for 
the next fiscal year a report on activities and proposals involving 
contracting for performance by contractor personnel of work previously 
performed by Department employees. The report shall- 
(1) identify those specific activities that are currently performed at 
a Department facility by more than 10 Department 

Sec. 8110 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1028 

employees which the Secretary proposes to study for possible 
contracting involving conversion from performance by Department 
employees to performance by employees of a contractor; 
and 

(2) identify those specific activities that have been contracted 
for performance by contractor employees during the 
prior fiscal year (shown by location, subject, scope of contracts, 
and savings) and shall describe the effect of such contracts on 
the quality of delivery of health services during such year. 
(d) The Secretary may not in any fiscal year close more than 
50 percent of the beds within a bed section (of 20 or more beds) 
of a Department medical center unless the Secretary first submits 
to the Committees on Veteransï¿½ Affairs of the Senate and the 
House of Representatives a report providing a justification for the 
closure. No action to carry out such closure may be taken after the 
submission of such report until the end of the 21-day period 
beginning on the date of the submission of the report. 
(e) The Secretary shall submit to the Committees on Veteransï¿½ 
Affairs of the Senate and the House of Representatives, not later 
than January 20 of each year, a report documenting by network for 
the preceding fiscal year the following: 
(1) The number of medical service and surgical service 
beds, respectively, that were closed during that fiscal year and, 
for each such closure, a description of the changes in delivery 
of services that allowed such closure to occur. 
(2) The number of nursing home beds that were the subject of a mission 
change during that fiscal year and the nature 
of each such mission change. 
(f) For purposes of this section: 
(1) The term ï¿½ï¿½closureï¿½ï¿½, with respect to beds in a medical 
center, means ceasing to provide staffing for, and to operate, 
those beds. Such term includes converting the provision of such 
bed care from care in a Department facility to care under contract 
arrangements. 
(2) The term ï¿½ï¿½bed sectionï¿½ï¿½, with respect to a medical center, means 
psychiatric beds (including beds for treatment of substance abuse and 
post-traumatic stress disorder), intermediate, neurology, and 
rehabilitation medicine beds, extended care (other than nursing home) 
beds, and domiciliary beds. 
(3) The term ï¿½ï¿½justificationï¿½ï¿½, with respect to closure of beds, 
means a written report that includes the following: 
(A) An explanation of the reasons for the determination that the 
closure is appropriate and advisable. 
(B) A description of the changes in the functions to be 
carried out and the means by which such care and services 
would continue to be provided to eligible veterans. 
(C) A description of the anticipated effects of the closure on veterans 
and on their access to care. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
59, Sec. 5010; amended Pub. L. 96-151, title III, Sec. 301(a), Dec. 20, 
1979, 93 Stat. 1095; Pub. L. 97-66, title VI, Sec. 601(b), Oct. 17, 
1981, 95 Stat. 1033; Pub. L. 97-72, title I, Sec. 108, Nov. 3, 1981, 95 
Stat. 1053; Pub. L. 97-306, title IV, Sec. 409(b), Oct. 14, 
1982, 96 Stat. 1446; Pub. L. 97-452, Sec. 2(e)(4), Jan. 12, 1983, 96 
Stat. 2479; Pub. L. 98-160, title VII, Sec. 702(19), Nov. 21, 1983, 97 
Stat. 1010; Pub. L. 98-528, title I, Sec. 102, Oct. 19, 1984, 98 Stat. 
2688; Pub. L. 99-576, title VII, Sec. 702(15), Oct. 

1029 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8111 

28, 1986, 100 Stat. 3302; Pub. L. 100-322, title II, Sec. 222(a), title 
IV, Sec. 401(a), May 20, 1988, 102 Stat. 531, 543; renumbered Sec. 8110 
and amended Pub. L. 102- 40, title IV, Sec. 402(b)(1), (d)(1), May 7, 
1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-405, 
title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 
103-446, title XI, Sec. 1103, title XII, Sec. 1201(b)(1), (d)(17), 
(g)(7), Nov. 2, 1994, 108 Stat. 4681, 4682, 4684, 4687; Pub. L. 
104-66, title I, Sec. 1141(c), Dec. 21, 1995, 109 Stat. 726; Pub. L. 
104-262, title I, Sec. 101(e)(4), title III, Sec. 305, Oct. 9, 1996, 
110 Stat. 3181, 3194; Pub. L. 106-117, title III, Sec. 301, Nov. 30, 
1999, 113 Stat. 1571; Pub. 

L. 107-135, title I, Sec. 124, Jan. 23, 2002, 115 Stat. 2452;
Pub. L. 107-314, div. 
A, title VII, Sec. 726(a), Dec. 2, 2002, 116 Stat. 2599.) 
ï¿½ 8111. Sharing of Department of Veterans Affairs and Department of 
Defense health care resources 

(a) REQUIRED COORDINATION AND SHARING OF HEALTH CARE 
RESOURCES.-The Secretary of Veterans Affairs and the Secretary 
of Defense shall enter into agreements and contracts for the mutually 
beneficial coordination, use, or exchange of use of the health 
care resources of the Department of Veterans Affairs and the Department 
of Defense with the goal of improving the access to, and 
quality and cost effectiveness of, the health care provided by the 
Veterans Health Administration and the Military Health System to 
the beneficiaries of both Departments. 
(b) JOINT REQUIREMENTS FOR SECRETARIES OF VETERANS AFFAIRS AND DEFENSE.-
To facilitate the mutually beneficial coordination, use, or exchange of 
use of the health care resources of the 
two Departments, the two Secretaries shall carry out the following 
functions: 
(1) Develop and publish a joint strategic vision statement 
and a joint strategic plan to shape, focus, and prioritize the 
coordination and sharing efforts among appropriate elements of 
the two Departments and incorporate the goals and requirements of the 
joint sharing plan into the strategic plan of each 
Department under section 306 of title 5 and the performance 
plan of each Department under section 1115 of title 31. 
(2) Jointly fund the Department of Veterans Affairs-Department of 
Defense Joint Executive Committee under section 
320 of this title. 
(3) Continue to facilitate and improve sharing between individual 
Department of Veterans Affairs and Department of 
Defense health care facilities, but giving priority of effort to 
initiatives (A) that improve sharing and coordination of health 
resources at the intraregional and nationwide levels, and (B) 
that improve the ability of both Departments to provide coordinated 
health care. 
(4) Establish a joint incentive program under subsection 
(d). 
ï¿½(c) Repealed. Pub. L. 108-136, div. A, title V, Sec. 583(b)(1), 
Nov. 24, 2003, 117 Stat. 1491.ï¿½ 

(d) JOINT INCENTIVES PROGRAM.-(1) Pursuant to subsection 
(b)(4), the two Secretaries shall carry out a program to identify, 
provide incentives to, implement, fund, and evaluate creative 
coordination and sharing initiatives at the facility, intraregional, and 
nationwide levels. The program shall be administered by the Department 
of Veterans Affairs-Department of Defense Joint Execu

Sec. 8111 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1030 

tive Committee, under procedures jointly prescribed by the two 
Secretaries. 

(2) To facilitate the incentive program, there is established in 
the Treasury a fund to be known as the ï¿½ï¿½DOD-VA Health Care 
Sharing Incentive Fundï¿½ï¿½. Each Secretary shall annually contribute 
to the fund a minimum of $15,000,000 from the funds appropriated 
to that Secretaryï¿½s Department. Such funds shall remain available 
until expended and shall be available for any purpose authorized 
by this section. 
(3) The program under this subsection shall terminate on September 
30, 2010. 
(e) GUIDELINES AND POLICIES FOR IMPLEMENTATION OF COORDINATION AND 
SHARING RECOMMENDATIONS, CONTRACTS, AND AGREEMENTS.-(1) To implement 
the recommendations made by the Department of Veterans Affairs-
Department of Defense Joint Executive Committee with respect to health 
care resources, as well as to carry out other health care contracts and 
agreements for coordination and sharing initiatives as they consider 
appropriate, the two Secretaries shall jointly issue guidelines and 
policy directives. Such 
guidelines and policies shall provide for coordination and sharing 
that- 
(A) is consistent with the health care responsibilities of the 
Department of Veterans Affairs under this title and with the 
health care responsibilities of the Department of Defense 
under chapter 55 of title 10; 
(B) will not adversely affect the range of services, the quality of 
care, or the established priorities for care provided by either 
Department; and 
(C) will not reduce capacities in certain specialized programs of the 
Department of Veterans Affairs that the Secretary is required to 
maintain in accordance with section 
1706(b) of this title. 
(2) To facilitate the sharing and coordination of health care 
services between the two Departments, the two Secretaries shall 
jointly develop and implement guidelines for a standardized, uniform 
payment and reimbursement schedule for those services. Such 
schedule shall be revised periodically as necessary. The two 
Secretaries may on a case-by-case basis waive elements of the schedule 
if they jointly agree that such a waiver is in the best interests of 
both Departments. 
(3)(A) The guidelines established under paragraph (1) shall authorize 
the heads of individual Department of Defense and Department of 
Veterans Affairs medical facilities and service regions to 
enter into health care resources coordination and sharing agreements. 

(B) Under any such agreement, an individual who is a primary 
beneficiary of one Department may be provided health care, as provided 
in the agreement, at a facility or in the service region of the 
other Department that is a party to the sharing agreement. 
(C) Each such agreement shall identify the health care resources to be 
shared. 
(D) Each such agreement shall provide, and shall specify procedures 
designed to ensure, that the availability of direct health care 
to individuals who are not primary beneficiaries of the providing 

1031 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8111 

Department is (i) on a referral basis from the facility or service 
region of the other Department, and (ii) does not (as determined by 
the head of the providing facility or region) adversely affect the 
range of services, the quality of care, or the established priorities 
for care provided to the primary beneficiaries of the providing 
Department. 

(E) Each such agreement shall provide that a providing Department or 
service region shall be reimbursed for the cost of the 
health care resources provided under the agreement and that the 
rate of such reimbursement shall be as determined in accordance 
with paragraph (2). 
(F) Each proposal for an agreement under this paragraph shall 
be effective (i) on the 46th day after the receipt of such proposal 
by the Committee, unless earlier disapproved, or (ii) if earlier 
approved by the Committee, on the date of such approval. 
(G) Any funds received through such a uniform payment and 
reimbursement schedule shall be credited to funds that have been 
allotted to the facility of either Department that provided the care 
or services, or is due the funds from, any such agreement. 
(f) ANNUAL JOINT REPORT.-(1) At the time the Presidentï¿½s 
budget is transmitted to Congress in any year pursuant to section 
1105 of title 31, the two Secretaries shall submit to Congress a 
joint report on health care coordination and sharing activities 
under this section during the fiscal year that ended during the 
previous calendar year. 
(2) Each report under this section shall include the following: 
(A) The guidelines prescribed under subsection (e) (and 
any revision of such guidelines). 
(B) The assessment of further opportunities identified by 
the Department of Veterans Affairs-Department of Defense 
Joint Executive Committee under subsection (d)(3) of section 
320 of this title for the sharing of health-care resources between 
the two Departments. 
(C) Any recommendation made by that committee under 
subsection (c)(2) of that section during that fiscal year. 
(D) A review of the sharing agreements entered into under 
subsection (e) and a summary of activities under such agreements during 
such fiscal year and a description of the results 
of such agreements in improving access to, and the quality and 
cost effectiveness of, the health care provided by the Veterans 
Health Administration and the Military Health System to the 
beneficiaries of both Departments. 
(E) A summary of other planning and activities involving 
either Department in connection with promoting the coordination and 
sharing of Federal health-care resources during the 
preceding fiscal year. 
(F) Such recommendations for legislation as the two Secretaries 
consider appropriate to facilitate the sharing of health-
care resources between the two Departments. 
(3) In addition to the matters specified in paragraph (2), the 
two Secretaries shall include in the annual report under this subsection 
an overall status report of the progress of health resources 
sharing between the two Departments as a consequence of subtitle 
C of title VII of the Bob Stump National Defense Authorization Act 

Sec. 8111 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1032 

for Fiscal Year 2003 (Public Law 107-314) and of other sharing 
initiatives taken during the period covered by the report. Such status 
report shall indicate the status of such sharing and shall include 
appropriate data as well as analyses of that data. The annual report 
shall include the following: 

(A) Enumerations and explanations of major policy decisions reached by 
the two Secretaries during the period covered 
by the report period with respect to sharing between the two 
Departments. 
(B) A description of progress made in new ventures or particular areas 
of sharing and coordination that would be of policy interest to Congress 
consistent with the intent of such subtitle. 
(C) A description of enhancements of access to care of 
beneficiaries of both Departments that came about as a result 
of new sharing approaches brought about by such subtitle. 
(D) A description of proposals for which funds are provided 
through the joint incentives program under subsection (d), together with 
a description of their results or status at the time 
of the report, including access improvements, savings, and 
quality-of-care enhancements they brought about, and a description of 
any additional use of funds made available under 
subsection (d). 
(4) In addition to the matters specified in paragraphs (2) and 
(3), the two Secretaries shall include in the annual report under 
this subsection for each year through 2008 the following: 
(A) A description of the measures taken, or planned to be 
taken, to implement the health resources sharing project under 
section 722 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314) and any cost 
savings anticipated, or cost sharing achieved, at facilities 
participating in the project, including information on improvements 
in access to care, quality, and timeliness, as well as impediments 
encountered and legislative recommendations to 
ameliorate such impediments. 
(B) A description of the use of the waiver authority provided by 
section 722(d)(1) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314), 
including- 
(i) a statement of the numbers and types of requests 
for waivers under that section of administrative policies 
that have been made during the period covered by the report and, for 
each such request, an explanation of the content of each request, the 
intended purpose or result of the 
requested waiver, and the disposition of each request; and 
(ii) descriptions of any new administrative policies 
that enhance the success of the project. 
(5) In addition to the matters specified in paragraphs (2), (3), 
and (4), the two Secretaries shall include in the annual report 
under this subsection for each year through 2009 a report on the 
pilot program for graduate medical education under section 725 of 
the Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314), including activities under the program 

1033 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8111 

during the preceding year and each Secretaryï¿½s assessment of the 
efficacy of providing education and training under that program. 

(g) DEFINITIONS.-For the purposes of this section: 
(1) The term ï¿½ï¿½beneficiaryï¿½ï¿½ means a person who is a primary 
beneficiary of the Department of Veterans Affairs or of 
the Department of Defense. 
(2) The term ï¿½ï¿½direct health careï¿½ï¿½ means health care provided to a 
beneficiary in a medical facility operated by the Department of 
Veterans Affairs or the Department of Defense. 
(3) The term ï¿½ï¿½head of a medical facilityï¿½ï¿½ (A) with respect 
to a medical facility of the Department of Veterans Affairs, 
means the director of the facility, and (B) with respect to a 
medical facility of the Department of Defense, means the medical or 
dental officer in charge or the contract surgeon in 
charge. 
(4) The term ï¿½ï¿½health-care resourceï¿½ï¿½ includes hospital care, 
medical services, and rehabilitative services, as those terms 
are defined in paragraphs (5), (6), and (8), respectively, of section 
1701 of this title, services under sections 1782 and 1783 
of this title, any other health-care service, and any health-care 
support or administrative resource. 
(5) The term ï¿½ï¿½primary beneficiaryï¿½ï¿½ (A) with respect to the 
Department means a person who is eligible under this title 
(other than under section 1782, 1783, or 1784 or subsection (d) 
of this section) or any other provision of law for care or services 
in Department medical facilities, and (B) with respect to the 
Department of Defense, means a member or former member of 
the Armed Forces who is eligible for care under section 1074 
of title 10. 
(6) The term ï¿½ï¿½providing Departmentï¿½ï¿½ means the Department of Veterans 
Affairs, in the case of care or services furnished by a facility of the 
Department of Veterans Affairs, and 
the Department of Defense, in the case of care or services furnished by 
a facility of the Department of Defense. 
(7) The term ï¿½ï¿½service regionï¿½ï¿½ means a geographic service 
area of the Veterans Health Administration, in the case of the 
Department of Veterans Affairs, and a service region, in the 
case of the Department of Defense. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
60, Sec. 5011; amended Pub. L. 97-174, Sec. 3(a), (b)(1), May 4, 1982, 
96 Stat. 70, 73; Pub. L. 97- 452, Sec. 2(e)(4), Jan. 12, 1983, 96 Stat. 
2479; renumbered Sec. 8111 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984; Pub. L. 103-446, title XII, Sec. 1201(g)(8), (i)(10), Nov. 
2, 1994, 108 Stat. 4687, 4688; Pub. L. 107-135, title II, Sec. 
208(e)(6), Jan. 23, 2002, 115 Stat. 2464; Pub. L. 107-314, div. 
A, title VII, Sec. 721(a)(1), Dec. 2, 2002, 116 Stat. 2589; Pub. L. 
108-136, div. A, title V, Sec. 583(b), (c), Nov. 24, 2003, 117 Stat. 
1491, 1492; Pub. L. 108-422, title VI, Sec. 605, Nov. 30, 2004, 118 
Stat. 2399; Pub. L. 109-163, div. A, title VII, Sec. 747(a), title X, 
Sec. 1056(g), Jan. 6, 2006, 119 Stat. 3363, 3440; Pub. L. 109-364, 
div. A, title VII, Sec. 743, Oct. 17, 2006, 120 Stat. 2308; Pub. L. 
109-444, Sec. 8(a)(6), (7), Dec. 21, 2006, 120 Stat. 3313; Pub. L. 
109-461, title X, Secs. 1004(a)(6), 
(7), 1006(b), Dec. 22, 2006, 120 Stat. 3465, 3468.) 

Sec. 8111A CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1034 

ï¿½ 8111A. Furnishing of health-care services to members of 

the Armed Forces during a war or national emer

gency 

(a)(1) During and immediately following a period of war, or a 
period of national emergency declared by the President or the Congress 
that involves the use of the Armed Forces in armed conflict, 
the Secretary may furnish hospital care, nursing home care, and 
medical services to members of the Armed Forces on active duty. 

(2)(A) During and immediately following a disaster or emergency referred 
to in subparagraph (B), the Secretary may furnish 
hospital care and medical services to members of the Armed Forces 
on active duty responding to or involved in that disaster or emergency. 

(B) A disaster or emergency referred to in this subparagraph 
is any disaster or emergency as follows: 
(i) A major disaster or emergency declared by the President under the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.). 
(ii) A disaster or emergency in which the National Disaster 
Medical System established pursuant to section 2811(b) of the 
Public Health Service Act (42 U.S.C. 300hh-11(b)) is activated 
by the Secretary of Health and Human Services under paragraph (3)(A) of 
that section or as otherwise authorized by law. 
(3) The Secretary may give a higher priority to the furnishing 
of care and services under this section than to the furnishing of 
care and services to any other group of persons eligible for care and 
services in medical facilities of the Department with the exception 
of veterans with service-connected disabilities. 
(4) For the purposes of this section, the terms ï¿½ï¿½hospital careï¿½ï¿½, 
ï¿½ï¿½nursing home careï¿½ï¿½, and ï¿½ï¿½medical servicesï¿½ï¿½ have the meanings 
given such terms by sections 1701(5), 101(28), and 1701(6) of this 
title, respectively, and the term ï¿½ï¿½medical servicesï¿½ï¿½ includes services 
under sections 1782 and 1783 of this title. 
(b)(1) During a period in which the Secretary is authorized to 
furnish care and services to members of the Armed Forces under 
subsection (a) of this section, the Secretary, to the extent authorized 
by the President and subject to the availability of appropriations or 
reimbursements under subsection (c) of this section, may 
enter into contracts with private facilities for the provision during 
such period by such facilities of hospital care and medical services 
described in paragraph (2) of this subsection. 

(2) Hospital care and medical services referred to in paragraph 
(1) of this subsection are- 
(A) hospital care and medical services authorized under 
this title for a veteran and necessary for the care or treatment 
of a condition for which the veteran is receiving medical services at a 
Department facility under subsection (a) of section 
1710 of this title, in a case in which the delay involved in furnishing 
such care or services at such Department facility or at 
any other Department facility reasonably accessible to the veteran would, 
in the judgment of the Under Secretary for Health, 
be likely to result in a deterioration of such condition; and 
(B) hospital care for a veteran who- 

1035 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8112 

(i) is receiving hospital care under section 1710 of this 
title; or 
(ii) is eligible for hospital care under such section and 
requires such care in a medical emergency that poses a serious threat 
to the life or health of the veteran; 
if Department facilities are not capable of furnishing or 
continuing to furnish the care required because of the furnishing of care 
and services to members of the Armed 
Forces under subsection (a) of this section. 
(c)(1) The cost of any care or services provided by the Department under 
subsection (a) of this section shall be reimbursed to the 
Department by the Department of Defense at such rates as may be 
agreed upon by the Secretary and the Secretary of Defense based 
on the cost of the care or services provided. 

(2) Amounts received under this subsection shall be credited to 
funds allotted to the Department facility that provided the care or 
services. 
(d)(1) The Secretary of Veterans Affairs and the Secretary of 
Defense shall jointly review plans for the implementation of this 
section not less often than annually. 

(2) Whenever a modification to such plans is agreed to, the 
Secretaries shall jointly submit to the Committees on Veteransï¿½ Affairs 
of the Senate and House of Representatives a report on such 
modification. Any such report shall be submitted within 30 days 
after the modification is agreed to. 
(e) The Secretary shall prescribe regulations to govern any exercise of 
the authority of the Secretary under subsections (a) and 
(b) of this section and of the Under Secretary for Health under 
subsection (b)(2)(A) of this section. (Added Pub. L. 97-174, Sec. 4(a), 
May 4, 1982, 96 Stat. 74, Sec. 5011A; renumbered Sec. 8111A, Pub. L. 
102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended 
Pub. L. 102-54, Sec. 14(f)(4), June 13, 1991, 105 Stat. 287; Pub. L. 102- 
83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 
404-406; Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984; Pub. L. 104-262, title I, Sec. 101(e)(5), Oct. 9, 1996, 
110 Stat. 3181; Pub. L. 106-419, title IV, Sec. 403(b), Nov. 1, 2000, 
114 Stat. 1864; Pub. L. 107-135, title II, Sec. 208(e)(7), Jan. 23, 2002, 
115 Stat. 2464; Pub. L. 107-287, Sec. 4(b), Nov. 7, 2002, 116 Stat. 
2029; Pub. L. 109-444, Sec. 8(a)(8), Dec. 21, 2006, 120 Stat. 3313; 
Pub. L. 109-461, title X, Secs. 1004(a)(8), 1006(b), Dec. 22, 2006, 
120 Stat. 3466, 3468.) 

ï¿½ 8112. Partial relinquishment of legislative jurisdiction 

The Secretary, on behalf of the United States, may relinquish 
to the State in which any lands or interests therein under the 
supervision or control of the Secretary are situated, such measure of 
legislative jurisdiction over such lands or interests as is necessary 
to establish concurrent jurisdiction between the Federal Government and 
the State concerned. Such partial relinquishment of legislative 
jurisdiction shall be initiated by filing a notice thereof with 
the Governor of the State concerned, or in such other manner as 
may be prescribed by the laws of such State, and shall take effect 
upon acceptance by such State. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
60, Sec. 5012; renumbered Sec. 8112, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 


Sec. 8113 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1036 

ï¿½ 8113. Property formerly owned by National Home for Disabled Volunteer 
Soldiers 

If by reason of any defeasance or conditional clause or clauses 
contained in any deed of conveyance of property to the National 
Home for Disabled Volunteer Soldiers, which property is owned by 
the United States, the full and complete enjoyment and use of such 
property is threatened, the Attorney General, upon request of the 
President, shall institute in the United States district court for the 
district in which the property is located such proceedings as may 
be proper to extinguish all outstanding adverse interests. The Attorney 
General may procure and accept, on behalf of the United 
States, by gift, purchase, cession, or otherwise, absolute title to, 
and complete jurisdiction over, all such property. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
61, Sec. 5013; renumbered Sec. 8113, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 
Stat. 238.) 

ï¿½ 8114. Use of federally owned facilities; use of personnel 

(a) The Secretary, subject to the approval of the President, may 
use as medical facilities such suitable buildings, structures, and 
grounds owned by the United States on March 3, 1925, as may be 
available for such purposes, and the President may by Executive 
order transfer any such buildings, structures, and grounds to the 
control and jurisdiction of the Department upon the request of the 
Secretary. 
(b) The President may require the architectural, engineering, 
constructing, or other forces of any of the departments of the 
Government to do or assist in the construction and alteration of 
medical facilities, and the President may employ for such purposes 
individuals and agencies not connected with the Government, if in 
the opinion of the President such is desirable, at such compensation 
as the President may consider reasonable. 
(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
61, Sec. 5014; renumbered Sec. 8114, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-83, Sec. 
4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405.) 

ï¿½ 8115. Acceptance of certain property 

The President may accept from any State or other political 
subdivision, or from any person, any building, structure, equipment, or 
grounds suitable for the care of disabled persons, with due 
regard to fire or other hazards, state of repair, and all other 
pertinent considerations. The President may designate which agency of 
the Federal Government shall have the control and management of 
any property so accepted. 

(Added Pub. L. 96-22, title III, Sec. 301(a), June 13, 1979, 93 Stat. 
61, Sec. 5015; renumbered Sec. 8115, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 
Stat. 238.) 

ï¿½ 8116. Nursing home revolving fund 

(a)(1) Amounts realized from a transfer pursuant to section 
8122(a)(2)(C) of this title shall be administered as a revolving fund 
and shall be available without fiscal year limitation. 


1037 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8117 

(2) The revolving fund shall be deposited in a checking account 
with the Treasurer of the United States. 
(b)(1) The expenditure of funds from the revolving fund may be 
made only for the construction, alteration, and acquisition (including 
site acquisition) of nursing home facilities and may be made 
only as provided for in appropriation Acts. 

(2) For the purpose of section 8104(a)(2) of this title, a bill, 
resolution, or amendment which provides that funds in the revolving 
fund may be expended for a project involving a total expenditure 
of more than $2,000,000 for the construction, alteration, or 
acquisition (including site acquisition) of a nursing home facility 
shall be considered to be a bill, resolution, or amendment making an 
appropriation which may be expended for a major medical facility 
project. 
(Added Pub. L. 100-322, title II, Sec. 205(a), May 20, 1988, 102 Stat.
512, Sec. 5016; renumbered Sec. 8116 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239.) 

REPEAL OF SECTION 

Pub. L. 108-422, title IV, Sec. 411(c)(1),(f), Nov. 30, 2004, 118 
Stat. 2389, 2390, provided that this section is repealed effective at 
the end of the 30-day period beginning on the date on which the 
Secretary of Veterans Affairs certifies to Congress that the Secretary 
is in compliance with section 1710B(b) of this title. 

EFFECTIVE DATE OF REPEAL 

Repeal effective at the end of the 30-day period beginning on 
the date on which the Secretary of Veterans Affairs certifies to 
Congress that the Secretary is in compliance with section 1710B(b) 
of this title, see section 411(f) of Pub. L. 108-422, set out as an 
Effective Date of 2004 Amendment note under section 1710B of this 
title. 

ï¿½ 8117. Emergency preparedness 

(a) READINESS OF DEPARTMENT MEDICAL CENTERS.-(1) The 
Secretary shall take appropriate actions to provide for the readiness of 
Department medical centers to protect the patients and 
staff of such centers from a public health emergency (as defined in 
section 2801 of the Public Health Service Act) or otherwise to respond 
to such an emergency so as to enable such centers to fulfill 
their obligations as part of the Federal response to such emergencies. 
(2) Actions under paragraph (1) shall include- 
(A) the provision of decontamination equipment and personal protection 
equipment at Department medical centers; 
(B) the provision of training in the use of such equipment 
to staff of such centers; 
(C) organizing, training, and equipping the staff of such 
centers to support the activities carried out by the Secretary of 
Health and Human Services under section 2801 of the Public 
Health Service Act in the event of a public health emergency 
and incidents covered by the National Response Plan devel

Sec. 8117 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1038 

oped pursuant to section 502(6) of the Homeland Security Act 
of 2002, or any successor plan; and 

(D) providing medical logistical support to the National 
Disaster Medical System and the Secretary of Health and 
Human Services as necessary, on a reimbursable basis, and in 
coordination with other designated Federal agencies. 
(b) SECURITY AT DEPARTMENT MEDICAL AND RESEARCH FACILITIES.-(1) The 
Secretary shall take appropriate actions to provide for the security of 
Department medical centers and research facilities, including staff and 
patients at such centers and facilities. 
(2) In taking actions under paragraph (1), the Secretary shall 
take into account the results of the evaluation of the security needs 
at Department medical centers and research facilities required by 
section 154(b)(1) of the Public Health Security and Bioterrorism 
Preparedness and Response Act of 2002 (Public Law 107-188; 116 
Stat. 631), including the results of such evaluation relating to the 
following needs: 
(A) Needs for the protection of patients and medical staff 
during emergencies, including a chemical or biological attack 
or other terrorist attack. 
(B) Needs, if any, for screening personnel engaged in research relating 
to biological pathogens or agents, including 
work associated with such research. 
(C) Needs for securing laboratories or other facilities engaged in 
research relating to biological pathogens or agents. 
(c) TRACKING OF PHARMACEUTICALS AND MEDICAL SUPPLIES 
AND EQUIPMENT.-The Secretary shall develop and maintain a centralized 
system for tracking the current location and availability of 
pharmaceuticals, medical supplies, and medical equipment 
throughout the Department health care system in order to permit 
the ready identification and utilization of such pharmaceuticals, 
supplies, and equipment for a variety of purposes, including response 
to a public health emergency. The Secretary shall, through 
existing medical procurement contracts, and on a reimbursable 
basis, make available as necessary, medical supplies, equipment, 
and pharmaceuticals in response to a public health emergency in 
support of the Secretary of Health and Human Services. 
(d) TRAINING.-The Secretary shall ensure that the Department medical 
centers, in consultation with the accredited medical 
school affiliates of such medical centers, implement curricula to 
train resident physicians and health care personnel in medical 
matters relating to public health emergencies or attacks from an 
incendiary or other explosive weapon consistent with section 
319F(a) of the Public Health Service Act. 
(e) PARTICIPATION IN NATIONAL DISASTER MEDICAL SYSTEM.- 
(1) The Secretary shall establish and maintain a training program 
to facilitate the participation of the staff of Department medical 
centers, and of the community partners of such centers, in the 
National Disaster Medical System established pursuant to section 
2812 of the Public Health Service Act (42 U.S.C. 300hh-11(b) 1 ). 
(2) The Secretary shall establish and maintain the training 
program under paragraph (1) in accordance with the recommenda
1Term ï¿½ï¿½(b)ï¿½ï¿½ probably should not appear. 


1039 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8118 

tions of the working group on the prevention, preparedness, and 
response to public health emergencies established under section 319F 
of the Public Health Service Act (42 U.S.C. 247d-6(a) 2 ). 

(3) The Secretary shall establish and maintain the training 
program under paragraph (1) in consultation with the following: 
(A) The Secretary of Defense. 
(B) The Secretary of Health and Human Services. 
(C) The Administrator of the Federal Emergency Management Agency. 
(f) MENTAL HEALTH COUNSELING.-(1) With respect to activities conducted 
by personnel serving at Department medical centers, the Secretary shall 
develop and maintain various strategies for providing mental health 
counseling and assistance, including counseling and assistance for 
post-traumatic stress disorder, following a bioterrorist attack or 
other public health emergency to the following persons: 
(A) Veterans. 
(B) Local and community emergency response providers. 
(C) Active duty military personnel. 
(D) Individuals seeking care at Department medical centers. 
(2) The strategies under paragraph (1) shall include the following: 
(A) Training and certification of providers of mental health 
counseling and assistance. 
(B) Mechanisms for coordinating the provision of mental 
health counseling and assistance to emergency response providers 
referred to in paragraph (1). 
(3) The Secretary shall develop and maintain the strategies 
under paragraph (1) in consultation with the Secretary of Health 
and Human Services, the American Red Cross, and the working 
group referred to in subsection (e)(2). 
(g) AUTHORIZATION OF APPROPRIATIONS.-There are authorized 
to be appropriated, such sums as may be necessary to carry out 
this section for each of fiscal years 2007 through 2011. 
(Added Pub. L. 107-287, Sec. 6(a)(1), Nov. 7, 2002, 116 Stat. 2030; 
amended Pub. 

L. 109-295, title VI, Sec. 612(c), Oct. 4, 2006, 120 Stat. 1410; 
Pub. L. 109-417, title III, Sec. 306, Dec. 19, 2006, 120 Stat. 
2863; Pub. L. 110-387, title IX, Sec. 901(a)(7), Oct. 10, 2008, 
122 Stat. 4142.) 
ï¿½ 8118. Authority for transfer of real property; Department 
of Veterans Affairs Capital Asset Fund 

(a)(1) The Secretary may transfer real property under the jurisdiction 
or control of the Secretary (including structures and 
equipment associated therewith) to another department or agency 
of the United States, to a State (or a political subdivision of a 
State), or to any public or private entity, including an Indian tribe. 
Such a transfer may be made only if the Secretary receives compensation 
of not less than the fair market value of the property, except that no 
compensation is required, or compensation at less than 
fair market value may be accepted, in the case of a transfer to a 
grant and per diem provider (as defined in section 2002 of this 

2Term ï¿½ï¿½(a)ï¿½ï¿½ probably should not appear. 


Sec. 8118 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1040 

title). When a transfer is made to a grant and per diem provider 
for less than fair market value, the Secretary shall require in the 
terms of the conveyance that if the property transferred is used for 
any purpose other than a purpose under chapter 20 of this title, 
all right, title, and interest to the property shall revert to the 
United States. 

(2) The Secretary may exercise the authority provided by this 
section notwithstanding sections 521, 522, and 541 through 545 of 
title 40. Any such transfer shall be in accordance with this section 
and section 8122 of this title. 
(3) The authority provided by this section may not be used in 
a case to which section 8164 of this title applies. 
(4) The Secretary may enter into partnerships or agreements 
with public or private entities dedicated to historic preservation to 
facilitate the transfer, leasing, or adaptive use of structures or 
properties specified in subsection (b)(3)(D). 
(5) The authority of the Secretary under paragraph (1) expires 
on the date that is seven years after the date of the enactment of 
this section. 
(b)(1) There is established in the Treasury of the United States 
a revolving fund to be known as the Department of Veterans Affairs 
Capital Asset Fund (hereinafter in this section referred to as 
the ï¿½ï¿½Fundï¿½ï¿½). Amounts in the Fund shall remain available until 
expended. 

(2) Proceeds from the transfer of real property under this section 
shall be deposited into the Fund. 
(3) To the extent provided in advance in appropriations Acts, 
amounts in the Fund may be expended for the following purposes: 
(A) Costs associated with the transfer of real property 
under this section, including costs of demolition, environmental 
remediation, maintenance and repair, improvements to facilitate the 
transfer, and administrative expenses. 
(B) Costs, including costs specified in subparagraph (A), 
associated with future transfers of property under this section. 
(C) Costs associated with enhancing medical care services 
to veterans by improving, renovating, replacing, updating, or 
establishing patient care facilities through construction 
projects to be carried out for an amount less than the amount 
specified in 8104(a)(3)(A) for a major medical facility project. 
(D) Costs, including costs specified in subparagraph (A), 
associated with the transfer, lease, or adaptive use of a structure or 
other property under the jurisdiction of the Secretary 
that is listed on the National Register of Historic Places. 
(c) The Secretary shall include in the budget justification materials 
submitted to Congress for any fiscal year in support of the 
Presidentï¿½s budget for that fiscal year for the Department 
specification of the following: 
(1) The real property transfers to be undertaken in accordance with 
this section during that fiscal year. 
(2) All transfers completed under this section during the 
preceding fiscal year and completed and scheduled to be completed 
during the fiscal year during which the budget is submitted. 

1041 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8121 

(3) The deposits into, and expenditures from, the Fund 
that are incurred or projected for each of the preceding fiscal 
year, the current fiscal year, and the fiscal year covered by the 
budget. 
(Added Pub. L. 108-422, title IV, Sec. 411(a)(1), Nov. 30, 2004, 118 
Stat. 2388.) 

ï¿½ 8119. Annual report on outpatient clinics 

(a) ANNUAL REPORT REQUIRED.-The Secretary shall submit to 
the committees an annual report on community-based outpatient 
clinics and other outpatient clinics of the Department. The report 
shall be submitted each year not later than the date on which the 
budget for the next fiscal year is submitted to the Congress under 
section 1105 of title 31. 
(b) CONTENTS OF REPORT.-Each report required under subsection (a) shall 
include the following: 
(1) A list of each community-based outpatient clinic and 
other outpatient clinic of the Department, and for each such 
clinic, the type of clinic, location, size, number of health 
professionals employed by the clinic, workload, whether the clinic is 
leased or constructed and operated by the Secretary, and the 
annual cost of operating the clinic. 
(2) A list of community-based outpatient clinics and other 
outpatient clinics that the Secretary opened during the fiscal 
year preceding the fiscal year during which the report is submitted 
and a list of clinics the Secretary proposes opening during the fiscal 
year during which the report is submitted and 
the subsequent fiscal year, together with the cost of activating 
each such clinic and the information required to be provided 
under paragraph (1) for each such clinic and proposed clinic. 
(3) A list of proposed community-based outpatient clinics 
and other outpatient clinics that are, as of the date of the submission 
of the report, under review by the National Review 
Panel and a list of possible locations for future clinics identified 
in the Departmentï¿½s strategic planning process, including 
any identified locations in rural and underserved areas. 
(4) A prioritized list of sites of care identified by the Secretary 
that the Secretary could establish without carrying out 
construction or entering into a lease, including- 
(A) any such sites that could be expanded by hiring 
additional staff or allocating staff to Federal facilities or 
facilities operating in collaboration with the Federal Government; and 
(B) any sites established, or able to be established, 
under sections 8111 and 8153 of this title. 
(Added Pub. L. 110-387, title VII, Sec. 708(a), Oct. 10, 2008, 122 
Stat. 4139.) 

SUBCHAPTER II-PROCUREMENT AND SUPPLY 

ï¿½ 8121. Revolving supply fund 

(a) The revolving supply fund established for the operation and 
maintenance of a supply system for the Department (including 
procurement of supplies, equipment, and personal services and the 
repair and reclamation of used, spent, or excess personal property) 
shall be- 

Sec. 8122 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1042 

(1) available without fiscal year limitations for all expenses 
necessary for the operation and maintenance of such supply 
system; 
(2) reimbursed from appropriations for the cost of all services, 
equipment, and supplies furnished, at rates determined 
by the Secretary on the basis of estimated or actual direct cost 
(which may be based on the cost of recent significant purchases 
of the equipment or supply item involved) and indirect cost; 
and 
(3) credited with advances from appropriations for activities to 
which services or supplies are to be furnished, and all 
other receipts resulting from the operation of the fund, including 
property returned to the supply system when no longer required by 
activities to which it had been furnished, the proceeds of disposal 
of scrap, excess or surplus personal property 
of the fund, and receipts from carriers and others for loss of 
or damage to personal property. 
(b) The Secretary may authorize the Secretary of Defense to 
make purchases through the fund in the same manner as activities 
of the Department. When services, equipment, or supplies are 
furnished to the Secretary of Defense through the fund, the 
reimbursement required by paragraph (2) of subsection (a) shall be 
made from appropriations made to the Department of Defense, and 
when services or supplies are to be furnished to the Department of 
Defense, the fund may be credited, as provided in paragraph (3) of 
subsection (a), with advances from appropriations available to the 
Department of Defense. 
(c) At the end of each fiscal year, there shall be covered into 
the Treasury of the United States as miscellaneous receipts such 
amounts as the Secretary determines to be in excess of the 
requirements necessary for the maintenance of adequate inventory levels 
and for the effective financial management of the revolving supply 
fund. 
(d) An adequate system of accounts for the fund shall be maintained 
on the accrual method, and financial reports prepared on 
the basis of such accounts. An annual business type budget shall 
be prepared for operations under the fund. 
(e) The Secretary is authorized to capitalize, at fair and reasonable 
values as determined by the Secretary, all supplies and materials and 
depot stocks of equipment on hand or on order. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1253, Sec. 5011; amended 
Pub. L. 87-314, 
Sept. 26, 1961, 75 Stat. 675; Pub. L. 94-581, title II, Sec. 
210(e)(6), Oct. 21, 1976, 90 Stat. 2865; renumbered Sec. 5021, 
Pub. L. 96-22, title III, Sec. 301(b)(1), June 13, 1979, 93 Stat. 61; 
Pub. L. 96-330, title IV, Sec. 402(a), Aug. 26, 1980, 94 Stat. 
1051; renumbered Sec. 8121, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 108-170, 
title IV, Sec. 403(a), Dec. 6, 2003, 117 Stat. 2062.) 

ï¿½ 8122. Authority to procure and dispose of property and to 
negotiate for common services 

(a)(1) The Secretary may lease for a term not exceeding three 
years lands or buildings, or parts or parcels thereof, belonging to 
the United States and under the Secretaryï¿½s control. Any lease 
made pursuant to this subsection to any public or nonprofit 
organization may be made without regard to the provisions of section 


1043 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8122 

3709 of the Revised Statutes (41 U.S.C. 5). Notwithstanding section 
1302 of title 40, or any other provision of law, a lease made 
pursuant to this subsection to any public or nonprofit organization may 
provide for the maintenance, protection, ore restoration, by the 
lessee, of the property leased, as a part or all of the consideration for 
the lease. Prior to the execution of any such lease, the Secretary 
shall give appropriate public notice of the Secretaryï¿½s intention to 
do so in the newspaper of the community in which the lands or 
buildings to be leased are located. The proceeds from such leases, 
less expenses for maintenance, operation, and repair of buildings 
leased for living quarters, shall be covered into the Treasury of the 
United States as miscellaneous receipts. 

(2) Except as provided in paragraph (3), the Secretary may not 
during any fiscal year transfer to any other department or agency 
of the United States or to any other entity real property that is 
owned by the United States and administered by the Secretary unless the 
proposed transfer is described in the budget submitted to 
Congress pursuant to section 1105 of title 31 for that fiscal year. 
(3)(A) Subject to subparagraph (B) of this paragraph, the Secretary may, 
without regard to paragraph (2) of this subsection or 
any other provision of law relating to the disposition of real property 
by the United States, transfer to a State for use as the site 
of a State nursing-home or domiciliary facility real property described 
in subparagraph (E) of this paragraph which the Secretary 
determines to be excess to the needs of the Department. 

(B) A transfer of real property may not be made under this 
paragraph unless- 
(i) the Secretary has determined that the State has provided sufficient 
assurance that it has the resources (including 
any resources which are reasonably likely to be available to the 
State under subchapter III of chapter 81 of this title and section 
1741 of this title) necessary to construct and operate a 
State home nursing or domiciliary care facility; and 
(ii) the transfer is made subject to the conditions (I) that 
the property be used by the State for a nursing-home or domiciliary 
care facility in accordance with the conditions and limitations 
applicable to State home facilities constructed with assistance under 
subchapter III of chapter 81 of this title, and 
(II) that, if the property is used at any time for any other purpose, 
all right, title, and interest in and to the property shall 
revert to the United States. 
(C) A transfer of real property may not be made under this 
paragraph until- 
(i) the Secretary submits to the Committees on Veteransï¿½ 
Affairs of the Senate and House of Representatives, not later 
than June 1 of the year in which the transfer is proposed to 
be made (or the year preceding that year), a report providing 
notice of the proposed transfer; and 
(ii) a period of 90 consecutive days elapses after the report 
is received by those committees. 
(D) A transfer under this paragraph shall be made under such 
additional terms and conditions as the Secretary considers appropriate 
to protect the interests of the United States. 

Sec. 8122 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1044 

(E) Real property described in this subparagraph is real property that 
is owned by the United States and administered by the 
Secretary. 
(b) The Secretary may, for the purpose of extending benefits to 
veterans and dependents, and to the extent the Secretary deems 
necessary, procure the necessary space for administrative purposes 
by lease, purchase, or construction of buildings, or by condemnation 
or declaration of taking, pursuant to law. 
(c) The Secretary may procure laundry services, and other common 
services as specifically approved by the Secretary from nonprofit, 
tax-exempt educational, medical or community institutions, 
without regard to the requirements of section 302(c) of the Federal 
Property and Administrative Services Act of 1949, as amended (41 
U.S.C. 252(c)), whenever such services are not reasonably available 
from private commercial sources. Notwithstanding this exclusion, 
the provisions of section 304 of that Act (41 U.S.C. 254) shall apply 
to procurement authorized by this subsection. 
(d)(1) Real property under the jurisdiction of the Secretary may 
not be declared excess by the Secretary and disposed of by the General 
Services Administration or any other entity of the Federal 
Government unless the Secretary determines that the property is 
no longer needed by the Department in carrying out its functions 
and is not suitable for use for the provision of services to homeless 
veterans by the Department or by another entity under an enhanced-use 
lease of such property under section 8162 of this title. 

(2) The Secretary may transfer real property under this section, or 
under section 8118 of this title, if the Secretary- 
(A) places a notice in the real estate section of local newspapers and 
in the Federal Register of the Secretaryï¿½s intent to 
transfer that real property (including land, structures, and 
equipment associated with the property); 
(B) holds a public hearing; 
(C) provides notice to the Administrator of General Services of the 
Secretaryï¿½s intention to transfer that real property 
and waits for 30 days to elapse after providing that notice; and 
(D) after such 30-day period has elapsed, notifies the congressional 
veteransï¿½ affairs committees of the Secretaryï¿½s intention to dispose of 
the property and waits for 60 days to elapse from the date of that 
notice. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1253, Sec. 5012; amended Pub. 
L. 89-785, title II, Sec. 202(a), (b), Nov. 7, 1966, 80 Stat. 1373; 
Pub. L. 93-82, title III, Sec. 302(2), Aug. 2, 1973, 87 Stat. 195; Pub. 
L. 94-581, title II, Sec. 210(e)(7), Oct. 21, 1976, 90 Stat. 2865; 
renumbered Sec. 5022 and amended Pub. L. 96-22, title III, Sec. 301(b), 
June 13, 1979, 93 Stat. 61; Pub. L. 96-330, title IV, Sec. 403(a), Aug. 
26, 1980, 94 Stat. 1052; Pub. L. 97-295, Sec. 4(91), Oct. 12, 1982, 96 
Stat. 1313; Pub. L. 98-160, title IV, Sec. 401, Nov. 21, 1983, 97 Stat. 
1004; Pub. L. 100-322, title IV, Sec. 421(a)(1), May 20, 1988, 102 
Stat. 552; Pub. L. 100-687, div. B, title XV, Sec. 1505, Nov. 18, 1988, 
102 Stat. 4135; renumbered Sec. 8122 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 
102-54, Sec. 14(f)(5), June 13, 1991, 105 Stat. 288; Pub. L. 102-83, 
Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 
Stat. 403-406; Pub. L. 107-95, Sec. 10(a), Dec. 21, 2001, 115 Stat. 
920; Pub. L. 107-217, Sec. 3(j)(3), Aug. 21, 2002, 116 Stat. 1300; Pub. 
L. 108-422, title IV, Sec. 411(e)(1), (2), Nov. 30, 2004, 118 Stat. 
2389.) 

1045 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8125 

ï¿½ 8123. Procurement of prosthetic appliances 

The Secretary may procure prosthetic appliances and necessary services 
required in the fitting, supplying, and training and 
use of prosthetic appliances by purchase, manufacture, contract, or 
in such other manner as the Secretary may determine to be proper, 
without regard to any other provision of law. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1254, Sec. 5013; amended Pub. 
L. 94-581, title II, Sec. 210(e)(8), Oct. 21, 1976, 90 Stat. 2865; 
renumbered Sec. 5023, Pub. L. 96-22, title III, Sec. 301(b)(1), June 
13, 1979, 93 Stat. 61; renumbered Sec. 8123, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8124. Grant of easements in Government-owned lands 

The Secretary, whenever the Secretary deems it advantageous 
to the Government and upon such terms and conditions as the Secretary 
deems advisable, may grant on behalf of the United States 
to any State, or any agency or political subdivision thereof, or to 
any public-service company, easements in and rights-of-way over 
lands belonging to the United States which are under the Secretaryï¿½s 
supervision and control. Such grant may include the use of 
such easements or rights-of-way by public utilities to the extent 
authorized and under the conditions imposed by the laws of such 
State relating to use of public highways. Such partial, concurrent, 
or exclusive jurisdiction over the areas covered by such easements 
or rights-of-way, as the Secretary deems necessary or desirable, is 
hereby ceded to the State in which the land is located. The Secretary 
may accept or secure on behalf of the United States from the 
State in which is situated any land conveyed in exchange for any 
such easement or right-of-way, such jurisdiction as the Secretary 
may deem necessary or desirable over the land so acquired. Any 
such easement or right-of-way shall be terminated upon abandonment or 
nonuse of the same and all right, title, and interest in the 
land covered thereby shall thereupon revert to the United States 
or its assignee. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1254, Sec. 5014; amended Pub. 
L. 94-581, title II, Sec. 210(e)(9), Oct. 21, 1976, 90 Stat. 2865; 
renumbered Sec. 5024, Pub. L. 96-22, title III, Sec. 301(b)(1), June 
13, 1979, 93 Stat. 61; renumbered Sec. 8124, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8125. Procurement of health-care items 

(a) Except as provided in subsections (b) and (c) of this section, 
the Secretary may not procure health-care items under local contracts. 
(b)(1) A health-care item for use by the Department may be 
procured under a local contract if- 

(A) the procurement is within the limits prescribed in 
paragraph (3) of this subsection; and 
(B)(i) the item is not otherwise available to the Department medical 
center concerned, 

(ii) procurement of the item by a local contract is necessary 
for the effective furnishing of health-care services or the conduct of 
a research or education program at a Department medical center, as 
determined by the director of the center in ac

Sec. 8125 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1046 

cordance with regulations which the Under Secretary for 
Health shall prescribe, or 

(iii) procurement under a local contract is demonstrably 
more cost-effective for the item. 
(2) In the case of the need for an emergency procurement of a 
health-care item, such item may be procured under a local contract, 
but no greater quantity of such item may be procured by a local 
contract than is reasonably necessary to meet the emergency need 
and the reasonably foreseeable need for the item at the medical 
center concerned until resupply can be achieved through procurement 
actions other than emergency procurement. 
(3)(A) Except as provided in subparagraphs (C) and (D) of this 
paragraph, not more than 20 percent of the total of all health-care 
items procured by the Department in any fiscal year (measured as 
a percent of the total cost of all such health-care items procured by 
the Department in that fiscal year) may be procured under local 
contracts. 

(B) Local contracts for the procurement of health-care items 
shall, to the maximum extent feasible, be awarded to regular dealers 
or manufacturers engaged in the wholesale supply of such 
items. 
(C) The Secretary may increase for a fiscal year the percentage 
specified in subparagraph (A) of this section to a percentage not 
greater than 30 percent if the Secretary, based on the experience 
of the Department during the two fiscal years preceding such fiscal 
year, determines that the increase and the amount of the increase 
are necessary in the interest of the effective furnishing of health-
care services by the Department. The authority to increase such 
percentage may not be delegated. 
(D) Items procured through an emergency procurement shall 
not be counted for the purpose of this paragraph. 
(c) A provision of law that is inconsistent with subsection (a) 
or (b) of this section shall not apply, to the extent of the 
inconsistency, to the procurement of a health-care item for use by 
the Department. 
(d)(1) Not later than December 1 of each year, the director of 
each Department medical center shall transmit to the Secretary a 
report containing a list indicating the quantity of each health-care 
item procured at that medical center under a local contract during 
the preceding fiscal year and the total amount paid for such item 
during such fiscal year. 

(2) Not later than February 1 of each year, the Secretary shall 
submit to the Committees on Veteransï¿½ Affairs of the Senate and 
the House of Representatives a report on the experience in carrying 
out this section during the preceding fiscal year. 
(e) For the purposes of this section: 
(1) The term ï¿½ï¿½health-care itemï¿½ï¿½ includes any item listed in, 
or (as determined by the Secretary) of the same nature as an 
item listed in, Federal Supply Classification (FSC) Group 65 or 
66. Effective December 1, 1992, such term also includes any 
item listed in, or (as determined by the Secretary) of the same 
nature as an item listed in, Federal Supply Classification 
(FSC) Group 73. Such term does not include perishable items. 

1047 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8126 

(2) The term ï¿½ï¿½local contractï¿½ï¿½ means a contract entered into 
by a Department medical center for procurement of an item for 
use by that medical center. 
(3) The term ï¿½ï¿½emergency procurementï¿½ï¿½ means a procurement necessary 
to meet an emergency need, affecting the health or safety of a 
person being furnished health-care services by the Department, for 
an item. (Added Pub. L. 100-322, title IV, Sec. 403(a)(1), May 20, 
1988, 102 Stat. 543, Sec. 5025; amended Pub. L. 100-687, div. B, 
title XV, Sec. 1507(b), (c), Nov. 18, 1988, 102 Stat. 4136, 4137; 
renumbered Sec. 8125, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 102-405, 
title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 
107-14, Sec. 8(a)(15), June 5, 2001, 115 Stat. 35.) 

ï¿½ 8126. Limitation on prices of drugs procured by Department and 
certain other Federal agencies 

(a) Each manufacturer of covered drugs shall enter into a master 
agreement with the Secretary under which- 
(1) beginning January 1, 1993, the manufacturer shall 
make available for procurement on the Federal Supply Schedule of 
the General Services Administration each covered drug 
of the manufacturer; 
(2) with respect to each covered drug of the manufacturer 
procured by a Federal agency described in subsection (b) on or 
after January 1, 1993, that is purchased under depot contracting 
systems or listed on the Federal Supply Schedule, the manufacturer 
has entered into and has in effect a pharmaceutical pricing agreement 
with the Secretary (or the Federal agency involved, if the Secretary 
delegates to the Federal agency the authority to enter into such a 
pharmaceutical pricing agreement) under which the price charged during 
the one-year period beginning on the date on which the agreement takes 
effect may not exceed 76 percent of the non-Federal average 
manufacturer price (less the amount of any additional discount 
required under subsection (c)) during the one-year period ending one 
month before such date (or, in the case of a covered 
drug for which sufficient data for determining the non-Federal 
average manufacturer price during such period are not available, 
during such period as the Secretary considers appropriate), except that 
such price may nominally exceed such 
amount if found by the Secretary to be in the best interests of 
the Department or such Federal agencies; 
(3) with respect to each covered drug of the manufacturer 
procured by a State home receiving funds under section 1741 
of this title, the price charged may not exceed the price 
charged under the Federal Supply Schedule at the time the 
drug is procured; and 
(4) unless the manufacturer meets the requirements of 
paragraphs (1), (2), and (3), the manufacturer may not receive 
payment for the purchase of drugs or biologicals from- 
(A) a State plan under title XIX of the Social Security 
Act, except as authorized under section 1927(a)(3) of such 
Act, 
(B) any Federal agency described in subsection (b), or 

Sec. 8126 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1048 

(C) any entity that receives funds under the Public 
Health Service Act. 
(b) The Federal agencies described in this subsection are as follows: 
(1) The Department. 
(2) The Department of Defense. 
(3) The Public Health Service, including the Indian Health 
Service. 
(4) The Coast Guard. 
(c) With respect to any covered drug the price of which is determined 
in accordance with a pharmaceutical pricing agreement 
entered into pursuant to subsection (a)(2), beginning on or after 
January 1, 1993, the manufacturer shall provide a discount in an 
amount equal to the amount by which the change in non-Federal 
price exceeds the amount equal to- 
(1) the non-Federal average manufacturer price of the drug 
during the 3-month period that ends one year before the last 
day of the month preceding the month during which the contract for the 
covered drug goes into effect (or, in the case of a 
covered drug for which sufficient data for determining the non-
Federal average manufacturer price during such period is not 
available, during such period as the Secretary considers appropriate); 
multiplied by 
(2) the percentage increase in the Consumer Price Index 
for all urban consumers (U.S. city average) between the last 
month of the period described in paragraph (1) and the last 
month preceding the month during which the contract goes 
into effect for which Consumer Price Index data is available. 
(d) In the case of a covered drug of a manufacturer that has 
entered into a multi-year contract with the Secretary under subsection 
(a)(2) for the procurement of the drug- 
(1) during any one-year period that follows the first year 
for which the contract is in effect, the contract price charged 
for the drug may not exceed the contract price charged during 
the preceding one-year period, increased by the percentage increase in 
the Consumer Price Index for all urban consumers 
(U.S. city average) during the 12-month period ending with the 
last month of such preceding one-year period for which Consumer Price 
Index data is available; and 
(2) in applying subsection (c) to determine the amount of 
the discount provided with respect to the drug during a year 
that follows the first year for which the contract is in effect, 
any reference in such subsection to ï¿½ï¿½the month during which 
the contract goes into effectï¿½ï¿½ shall be considered a reference to 
the first month of such following year. 
(e)(1) The manufacturer of any covered drug the price of which 
is determined in accordance with a pharmaceutical pricing agreement 
entered into pursuant to subsection (a)(2) shall- 

(A) not later than 30 days after the first day of the last 
quarter that begins before the agreement takes effect (or, in 
the case of an agreement that takes effect on January 1, 1993, 
not later than December 4, 1992), report to the Secretary the 
non-Federal average manufacturer price for the drug during 

1049 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8126 

the one-year period that ends on the last day of the previous 
quarter; and 

(B) not later than 30 days after the last day of each quarter for which 
the agreement is in effect, report to the Secretary 
the non-Federal average manufacturer price for the drug during such 
quarter. 
(2) The provisions of subparagraphs (B) and (C) of section 
1927(b)(3) of the Social Security Act shall apply to drugs described 
in paragraph (1) and the Secretary in the same manner as such 
provisions apply to covered outpatient drugs and the Secretary of 
Health and Human Services under such subparagraphs, except 
that references in such subparagraphs to prices or information reported 
or required under ï¿½ï¿½subparagraph (A)ï¿½ï¿½ shall be deemed to 
refer to information reported under paragraph (1). 
(3) In order to determine the accuracy of a drug price that is 
reported to the Secretary under paragraph (1), the Secretary may 
audit the relevant records of the manufacturer or of any wholesaler 
that distributes the drug, and may delegate the authority to audit 
such records to the appropriate Federal agency described in subsection 
(b). 
(4) Any information contained in a report submitted to the Secretary 
under paragraph (1) or obtained by the Secretary through 
any audit conducted under paragraph (3) shall remain confidential, 
except as the Secretary determines necessary to carry out this section 
and to permit the Comptroller General and the Director of the 
Congressional Budget Office to review the information provided. 
(f) The Secretary shall supply to the Secretary of Health and 
Human Services- 
(1) upon the execution or termination of any master agreement, the name 
of the manufacturer, and 
(2) on a quarterly basis, a list of manufacturers who have 
entered into master agreements under this section. 
(g)(1) Any reference in this section to a provision of the Social 
Security Act shall be deemed to be a reference to the provision as 
in effect on November 4, 1992. 

(2) A manufacturer is deemed to meet the requirements of subsection (a) 
if the manufacturer establishes to the satisfaction of the 
Secretary that the manufacturer would comply (and has offered to 
comply) with the provisions of this section (as in effect immediately 
after the enactment of this section), and would have entered into 
an agreement under this section (as such section was in effect at 
such time), but for a legislative change in this section after 
November 4, 1992. 
(h) In this section: 
(1) The term ï¿½ï¿½change in non-Federal priceï¿½ï¿½ means, with respect to a 
covered drug that is subject to an agreement under 
this section, an amount equal to- 
(A) the non-Federal average manufacturer price of the 
drug during the 3-month period that ends with the month 
preceding the month during which a contract goes into effect (or, in 
the case of a covered drug for which sufficient data for determining 
the non-Federal average manufacturer price during such period is not 
available, during such 
period as the Secretary considers appropriate); minus 

Sec. 8126 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1050 

(B) the non-Federal average manufacturer price of the 
drug during the 3-month period that ends one year before 
the end of the period described in subparagraph (A) (or, in 
the case of a covered drug for which sufficient data for determining 
the non-Federal average manufacturer price 
during such period is not available, during such period 
preceding the period described in subparagraph (A) as the 
Secretary considers appropriate). 
(2) The term ï¿½ï¿½covered drugï¿½ï¿½ means- 
(A) a drug described in section 1927(k)(7)(A)(ii) of the 
Social Security Act, or that would be described in such section but 
for the application of the first sentence of section 
1927(k)(3) of such Act; 
(B) a drug described in section 1927(k)(7)(A)(iv) of the 
Social Security Act, or that would be described in such section but 
for the application of the first sentence of section 
1927(k)(3) of such Act; or 
(C) any biological product identified under section 
600.3 of title 21, Code of Federal Regulations. 
(3) The term ï¿½ï¿½depotï¿½ï¿½ means a centralized commodity management system 
through which covered drugs procured by an 
agency of the Federal Government are- 
(A) received, stored, and delivered through- 
(i) a federally owned and operated warehouse system, or 
(ii) a commercial entity operating under contract 
with such agency; or 
(B) delivered directly from the commercial source to 
the entity using such covered drugs. 
(4) The term ï¿½ï¿½manufacturerï¿½ï¿½ means any entity which is 
engaged in- 
(A) the production, preparation, propagation, 
compounding, conversion, or processing of prescription 
drug products, either directly or indirectly by extraction 
from substances of natural origin, or independently by 
means of chemical synthesis, or by a combination of extraction and 
chemical synthesis, or 
(B) in the packaging, repackaging, labeling, relabeling, 
or distribution of prescription drug products. 
Such term does not include a wholesale distributor of drugs or 
a retail pharmacy licensed under State law. 

(5) The term ï¿½ï¿½non-Federal average manufacturer priceï¿½ï¿½ 
means, with respect to a covered drug and a period of time (as 
determined by the Secretary), the weighted average price of a 
single form and dosage unit of the drug that is paid by wholesalers 
in the United States to the manufacturer, taking into account any cash 
discounts or similar price reductions during 
that period, but not taking into account- 
(A) any prices paid by the Federal Government; or 
(B) any prices found by the Secretary to be merely 
nominal in amount. 
(6) The term ï¿½ï¿½weighted average priceï¿½ï¿½ means, with respect 
to a covered drug and a period of time (as determined by the 
Secretary) an amount equal to- 

1051 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8127 

(A) the sum of the products of the average price per 
package unit of each quantity of the drug sold during the 
period and the number of package units of the drug sold 
during the period; divided by 
(B) the total number of package units of the drug sold 
during the period. 
(i)(1) If the Secretary modifies a multi-year contract described 
in subsection (d) to include a covered drug of the manufacturer that 
was not available for inclusion under the contract at the time the 
contract went into effect, the price of the drug shall be determined 
as follows: 

(A) For the portion of the first contract year during which 
the drug is so included, the price of the drug shall be determined in 
accordance with subsection (a)(2), except that the reference in such 
subsection to ï¿½ï¿½the one-year period beginning on the date the agreement 
takes effectï¿½ï¿½ shall be considered a reference to such portion of the 
first contract year. 
(B) For any subsequent contract year, the price of the drug 
shall be determined in accordance with subsection (d), except 
that each reference in such subsection to ï¿½ï¿½the first year for 
which the contract is in effectï¿½ï¿½ shall be considered a reference 
to the portion of the first contract year during which the drug 
is included under the contract. 
(2) In this subsection, the term ï¿½ï¿½contract yearï¿½ï¿½ means any one-
year period for which a multi-year contract described in subsection 
(d) is in effect. 
(Added Pub. L. 102-585, title VI, Sec. 603(a)(1), Nov. 4, 1992, 106 
Stat. 4971; amended Pub. L. 103-18, Sec. 1(a), Apr. 12, 1993, 107 
Stat. 53; Pub. L. 103-446, title XII, Sec. 1201(e)(27), (f)(6), 
Nov. 2, 1994, 108 Stat. 4686, 4687; Pub. L. 104-106, div. A, title 
VII, Sec. 737(a), Feb. 10, 1996, 110 Stat. 383; Pub. L. 105-115, 
title I, Sec. 125(b)(2)(E), Nov. 21, 1997, 111 Stat. 2325.) 

ï¿½ 8127. Small business concerns owned and controlled by 
veterans: contracting goals and preferences 

(a) CONTRACTING GOALS.-(1) In order to increase contracting 
opportunities for small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by veterans 
with service-connected disabilities, the Secretary shall- 
(A) establish a goal for each fiscal year for participation in 
Department contracts (including subcontracts) by small business 
concerns owned and controlled by veterans who are not 
veterans with service-connected disabilities in accordance with 
paragraph (2); and 
(B) establish a goal for each fiscal year for participation in 
Department contracts (including subcontracts) by small business 
concerns owned and controlled by veterans with service-
connected disabilities in accordance with paragraph (3). 
(2) The goal for a fiscal year for participation under paragraph 
(1)(A) shall be determined by the Secretary. 
(3) The goal for a fiscal year for participation under paragraph 
(1)(B) shall be not less than the Government-wide goal for that 
fiscal year for participation by small business concerns owned and 
controlled by veterans with service-connected disabilities under 
section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 

Sec. 8127 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1052 

(4) The Secretary shall establish a review mechanism to ensure 
that, in the case of a subcontract of a Department contract that is 
counted for purposes of meeting a goal established pursuant to this 
section, the subcontract was actually awarded to a business concern 
that may be counted for purposes of meeting that goal. 
(b) USE OF NONCOMPETITIVE PROCEDURES FOR CERTAIN SMALL 
CONTRACTS.-For purposes of meeting the goals under subsection 
(a), and in accordance with this section, in entering into a contract 
with a small business concern owned and controlled by veterans for 
an amount less than the simplified acquisition threshold (as defined 
in section 4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403)), a contracting officer of the Department may use 
procedures other than competitive procedures. 
(c) SOLE SOURCE CONTRACTS FOR CONTRACTS ABOVE SIMPLIFIED ACQUISITION 
THRESHOLD.-For purposes of meeting the 
goals under subsection (a), and in accordance with this section, a 
contracting officer of the Department may award a contract to a 
small business concern owned and controlled by veterans using 
procedures other than competitive procedures if- 
(1) such concern is determined to be a responsible source 
with respect to performance of such contract opportunity; 
(2) the anticipated award price of the contract (including 
options) will exceed the simplified acquisition threshold (as defined 
in section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403)) but will not exceed $5,000,000; and 
(3) in the estimation of the contracting officer, the contract 
award can be made at a fair and reasonable price that offers 
best value to the United States. 
(d) USE OF RESTRICTED COMPETITION.-Except as provided in 
subsections (b) and (c), for purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department shall award contracts on the basis of 
competition restricted to small business concerns owned and controlled 
by veterans if the contracting officer has a reasonable expectation 
that two or more small business concerns owned and controlled by 
veterans will submit offers and that the award can be made at a 
fair and reasonable price that offers best value to the United 
States. 
(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.-A small business concern 
may be awarded a contract under this section only if 
the small business concern and the veteran owner of the small 
business concern are listed in the database of veteran-owned businesses 
maintained by the Secretary under subsection (f). 
(f) DATABASE OF VETERAN-OWNED BUSINESSES.-(1) Subject to 
paragraphs (2) through (6), the Secretary shall maintain a database of 
small business concerns owned and controlled by veterans 
and the veteran owners of such business concerns. 
(2) To be eligible for inclusion in the database, such a veteran 
shall submit to the Secretary such information as the Secretary 
may require with respect to the small business concern or the veteran. 
(3) Information maintained in the database shall be submitted 
on a voluntary basis by such veterans. 

1053 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8127 

(4) In maintaining the database, the Secretary shall carry out 
at least the following two verification functions: 
(A) Verification that each small business concern listed in 
the database is owned and controlled by veterans. 
(B) In the case of a veteran who indicates a service-connected 
disability, verification of the service-disabled status of 
such veteran. 
(5) The Secretary shall make the database available to all Federal 
departments and agencies and shall notify each such department and 
agency of the availability of the database. 
(6) If the Secretary determines that the public dissemination 
of certain types of information maintained in the database is 
inappropriate, the Secretary shall take such steps as are necessary to 
maintain such types of information in a secure and confidential 
manner. 
(g) ENFORCEMENT PENALTIES FOR MISREPRESENTATION.-Any 
business concern that is determined by the Secretary to have 
misrepresented the status of that concern as a small business concern 
owned and controlled by veterans or as a small business concern 
owned and controlled by service-disabled veterans for purposes of 
this subsection shall be debarred from contracting with the Department 
for a reasonable period of time, as determined by the Secretary. 
(h) TREATMENT OF BUSINESSES AFTER DEATH OF VETERANOWNER.-(1) Subject 
to paragraph (3), if the death of a veteran 
causes a small business concern to be less than 51 percent owned 
by one or more veterans, the surviving spouse of such veteran who 
acquires ownership rights in such small business concern shall, for 
the period described in paragraph (2), be treated as if the surviving 
spouse were that veteran for the purpose of maintaining the status 
of the small business concern as a small business concern owned 
and controlled by veterans. 
(2) The period referred to in paragraph (1) is the period beginning 
on the date on which the veteran dies and ending on the earliest of 
the following dates: 
(A) The date on which the surviving spouse remarries. 
(B) The date on which the surviving spouse relinquishes 
an ownership interest in the small business concern. 
(C) The date that is ten years after the date of the veteranï¿½s death. 
(3) Paragraph (1) only applies to a surviving spouse of a veteran 
with a service-connected disability rated as 100 percent disabling or 
who dies as a result of a service-connected disability. 
(i) PRIORITY FOR CONTRACTING PREFERENCES.-Preferences for 
awarding contracts to small business concerns shall be applied in 
the following order of priority: 
(1) Contracts awarded pursuant to subsection (b), (c), or (d) 
to small business concerns owned and controlled by veterans 
with service-connected disabilities. 
(2) Contracts awarded pursuant to subsection (b), (c), or (d) 
to small business concerns owned and controlled by veterans 
that are not covered by paragraph (1). 
(3) Contracts awarded pursuant to- 

Sec. 8127 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1054 

(A) section 8(a) of the Small Business Act (15 U.S.C. 
637(a)); or 
(B) section 31 of such Act (15 U.S.C. 657a). 
(4) Contracts awarded pursuant to any other small business contracting 
preference. 
(j) APPLICABILITY OF REQUIREMENTS TO CONTRACTS.-(1) If 
after December 31, 2008, the Secretary enters into a contract, 
memorandum of understanding, agreement, or other arrangement 
with any governmental entity to acquire goods or services, the 
Secretary shall include in such contract, memorandum, agreement, or 
other arrangement a requirement that the entity will comply, to 
the maximum extent feasible, with the provisions of this section in 
acquiring such goods or services. 
(2) Nothing in this subsection shall be construed to supersede 
or otherwise affect the authorities provided under the Small Business 
Act (15 U.S.C. 631 et seq.). 
(k) ANNUAL REPORTS.-Not later than December 31 each year, 
the Secretary shall submit to Congress a report on small business 
contracting during the fiscal year ending in such year. Each report 
shall include, for the fiscal year covered by such report, the 
following: 
(1) The percentage of the total amount of all contracts 
awarded by the Department during that fiscal year that were 
awarded to small business concerns owned and controlled by 
veterans. 
(2) The percentage of the total amount of all such contracts 
awarded to small business concerns owned and controlled by 
veterans with service-connected disabilities. 
(3) The percentage of the total amount of all contracts 
awarded by each Administration of the Department during 
that fiscal year that were awarded to small business concerns 
owned and controlled by veterans. 
(4) The percentage of the total amount of all contracts 
awarded by each such Administration during that fiscal year 
that were awarded to small business concerns owned and controlled by 
veterans with service-connected disabilities. 
(l) DEFINITIONS.-In this section: 
(1) The term ï¿½ï¿½small business concernï¿½ï¿½ has the meaning 
given that term under section 3 of the Small Business Act (15 
U.S.C. 632). 
(2) The term ï¿½ï¿½small business concern owned and controlled 
by veteransï¿½ï¿½ means a small business concern- 
(A)(i) not less than 51 percent of which is owned by 
one or more veterans or, in the case of a publicly owned 
business, not less than 51 percent of the stock of which is 
owned by one or more veterans; and 

(ii) the management and daily business operations of 
which are controlled by one or more veterans; or 
(B) not less than 51 percent of which is owned by one 
or more veterans with service-connected disabilities that 
are permanent and total who are unable to manage the 
daily business operations of such concern or, in the case of 
a publicly owned business, not less than 51 percent of the 
stock of which is owned by one or more such veterans. 

1055 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8132 

(Added Pub. L. 109-461, title V, Sec. 502(a)(1), Dec. 22, 2006, 120 
Stat. 3431; amended Pub. L. 110-389, title VIII, Sec. 806, Oct. 10, 
2008, 122 Stat. 4189.) 

ï¿½ 8128. Small business concerns owned and controlled by 
veterans: contracting priority 

(a) CONTRACTING PRIORITY.-In procuring goods and services 
pursuant to a contracting preference under this title or any other 
provision of law, the Secretary shall give priority to a small business 
concern owned and controlled by veterans, if such business 
concern also meets the requirements of that contracting preference. 
(b) DEFINITION.-For purposes of this section, the term ï¿½ï¿½small 
business concern owned and controlled by veteransï¿½ï¿½ means a small 
business concern that is included in the small business database 
maintained by the Secretary under section 8127(f) of this title. 
(Added Pub. L. 109-461, title V, Sec. 503(a)(1), Dec. 22, 2006, 120 
Stat. 3435.) 

SUBCHAPTER III-STATE HOME FACILITIES FOR FUR

NISHING DOMICILIARY, NURSING HOME, AND HOSPITAL 

CARE 

ï¿½ 8131. Definitions 

For the purpose of this subchapter- 

(1) The veteran population of each State shall be determined on the 
basis of the latest figures certified by the Department of Commerce. 
(2) The term ï¿½ï¿½Stateï¿½ï¿½ does not include any possession of the 
United States. 
(3) The term ï¿½ï¿½constructionï¿½ï¿½ means the construction of new 
domiciliary or nursing home buildings, the expansion, remodeling, or
alteration of existing buildings for the provision of 
domiciliary, nursing home, adult day health, or hospital care in 
State homes, and the provision of initial equipment for any 
such buildings. 
(4) The term ï¿½ï¿½cost of constructionï¿½ï¿½ means the amount 
found by the Secretary to be necessary for a construction 
project, including architect fees, but excluding land acquisition 
costs. 
(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 501, Sec. 
5031; amended Pub. L. 94-581, title II, Sec. 206(b), Oct. 21, 1976, 
90 Stat. 2859; Pub. L. 95-62, Sec. 3(1), (2), July 5, 1977, 91 Stat. 
262; Pub. L. 99-576, title II, Sec. 224(d), Oct. 28, 1986, 100 Stat. 
3263; renumbered Sec. 8131, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 104-262, title III, 
Sec. 342(b)(1), Oct. 9, 1996, 110 
Stat. 3206.) 

ï¿½ 8132. Declaration of purpose 

The purpose of this subchapter is to assist the several States 
to construct State home facilities (or to acquire facilities to be used 
as State home facilities) for furnishing domiciliary or nursing home 
care to veterans, and to expand, remodel, or alter existing buildings 
for furnishing domiciliary, nursing home, adult day health, or hospital 
care to veterans in State homes. 

(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 501, Sec. 
5032; amended Pub. L. 94-581, title II, Sec. 206(b), Oct. 21, 1976, 90 
Stat. 2859; Pub. L. 95-62, Sec. 3(3), July 5, 1977, 91 Stat. 262; 
Pub. L. 98-528, title I, Sec. 105(1), Oct. 19, 1984, 98 Stat. 2689; 
renumbered Sec. 8132, Pub. L. 102-40, title IV, Sec. 402(b)(1), 


Sec. 8133 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1056 

May 7, 1991, 105 Stat. 238; Pub. L. 104-262, title III, Sec. 342(b)(2), 
Oct. 9, 1996, 
110 Stat. 3206.) 

ï¿½ 8133. Authorization of appropriations 

(a) There are hereby authorized to be appropriated such sums 
as are necessary to carry out this subchapter. Sums appropriated 
pursuant to this section shall be used for making grants to States 
which have submitted, and have had approved by the Secretary, 
applications for carrying out the purposes and meeting the requirements 
of this subchapter. 
(b) Sums appropriated pursuant to subsection (a) of this section shall 
remain available until expended. (Added Pub. L. 88-450, Sec. 4(a), 
Aug. 19, 1964, 78 Stat. 501, Sec. 5033; amended Pub. L. 89-311, Sec. 
7(a), Oct. 31, 1965, 79 Stat. 1157; Pub. L. 90-432, Sec. 2, July 
26, 1968, 82 Stat. 448; Pub. L. 93-82, title IV, Sec. 403(c), Aug. 2, 
1973, 87 Stat. 196; Pub. L. 95-62, Sec. 3(4), July 5, 1977, 91 Stat. 
262; Pub. L. 96-151, title I, Sec. 101(a), Dec. 20, 1979, 93 Stat.
1092; Pub. L. 97-251, Sec. 8, Sept. 8, 1982, 96 Stat. 716; Pub. L. 
99-576, title II, Sec. 224(a), Oct. 28, 1986, 100 Stat. 3262; Pub. 

L. 101-110, Sec. 1(c), Oct. 6, 1989, 103 Stat. 682; Pub. L. 101-237, 
title II, Sec. 201(b), Dec. 18, 1989, 103 Stat. 2066; renumbered Sec. 
8133, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 
238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405; Pub. L. 102-585, title IV, Sec. 402, Nov. 4, 1992, 
106 Stat. 4954.) 
ï¿½ 8134. General regulations 

(a)(1) The Secretary shall prescribe regulations for the purposes of 
this subchapter. 

(2) In those regulations, the Secretary shall prescribe for each 
State the number of nursing home and domiciliary beds for which 
assistance under this subchapter may be furnished. Such regulations 
shall be based on projected demand for such care 10 years 
after the date of the enactment of the Veterans Millennium Health 
Care and Benefits Act by veterans who at such time are 65 years 
of age or older and who reside in that State. In determining such 
projected demand, the Secretary shall take into account travel 
distances for veterans and their families. 
(3)(A) In those regulations, the Secretary shall establish criteria 
under which the Secretary shall determine, with respect to an 
application for assistance under this subchapter for a project 
described in subparagraph (B) which is from a State that has a need 
for additional beds as determined under subsections (a)(2) and 
(d)(1), whether the need for such beds is most aptly characterized 
as great, significant, or limited. Such criteria shall take into 
account the availability of beds already operated by the Secretary 
and other providers which appropriately serve the needs which the 
State proposes to meet with its application. 

(B) This paragraph applies to a project for the construction or 
acquisition of a new State home facility, a project to increase the 
number of beds available at a State home facility, and a project to 
replace beds at a State home facility. 
(4) The Secretary shall review and, as necessary, revise regulations 
prescribed under paragraphs (2) and (3) not less often than 
every four years. 
(b) The Secretary shall prescribe the following by regulation: 

1057 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8135 

(1) General standards of construction, repair, and equipment for 
facilities constructed or acquired with assistance received under 
this subchapter. 
(2) General standards for the furnishing of care in facilities 
which are constructed or acquired with assistance received 
under this subchapter, which standards shall be no less stringent 
than those standards prescribed by the Secretary pursuant to section 
1720(b) of this title. 
(c) The Secretary may inspect any State facility constructed or 
acquired with assistance received under this subchapter at such 
times as the Secretary deems necessary to insure that such facility 
meets the standards prescribed under subsection (b)(2). 
(d)(1) In prescribing regulations to carry out this subchapter, 
the Secretary shall provide that in the case of a State that seeks 
assistance under this subchapter for a project described in subsection 
(a)(3)(B), the determination of the unmet need for beds for 
State homes in that State shall be reduced by the number of beds 
in all previous applications submitted by that State under this 
subchapter, including beds which have not been recognized by the 
Secretary under section 1741 of this title. 

(2)(A) Financial assistance under this subchapter for a renovation 
project may only be provided for a project for which the total 
cost of construction is in excess of $400,000 (as adjusted from time-
to-time in such regulations to reflect changes in costs of 
construction). 

(B) For purposes of this paragraph, a renovation project is a 
project to remodel or alter existing buildings for which financial 
assistance under this subchapter may be provided and does not include 
maintenance and repair work which is the responsibility of 
the State. 
(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 502, Sec. 
5034; amended Pub. L. 89-311, Sec. 7(b), Oct. 31, 1965, 79 Stat. 1157; 
Pub. L. 93-82, title IV, Sec. 403(d), Aug. 2, 1973, 87 Stat. 196; 
Pub. L. 94-581, title I, Sec. 107(b), title II, Sec. 206(b), Oct. 21, 
1976, 90 Stat. 2847, 2859; Pub. L. 95-62, Sec. 3(5), (6), July 5, 1977, 
91 Stat. 262; Pub. L. 96-330, title IV, Sec. 404, Aug. 26, 1980, 94 
Stat. 1052; Pub. L. 98-528, title I, Sec. 105(2), Oct. 19, 1984, 98 
Stat. 2689; renumbered Sec. 8134, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-54, Sec. 14(f)(6), 
June 13, 1991, 105 Stat. 288; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
5(c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 106-117, title II, 
Sec. 207(a), Nov. 30, 1999, 113 Stat. 1564.) 
ï¿½ 8135. Applications with respect to projects; payments 

(a) Any State desiring to receive assistance for a project for 
construction of State home facilities (or acquisition of a facility to 
be used as a State home facility) must submit to the Secretary an 
application. Such application shall set forth the following: 
(1) The amount of the grant requested with respect to such 
project which may not exceed 65 percent of the estimated cost 
of construction (or of the estimated cost of facility acquisition 
and construction) of such project. 
(2) A description of the site for such project. 
(3) Plans and specifications for such project in accordance 
with regulations prescribed by the Secretary pursuant to section 
8134(a)(2) of this title. 

Sec. 8135 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1058 

(4) Reasonable assurance that upon completion of such 
project the facilities will be used principally to furnish to veterans 
the level of care for which such application is made and 
that not more than 25 percent of the bed occupancy at any one 
time will consist of patients who are not receiving such level 
of care as veterans. 
(5) Reasonable assurance that title to such site is or will 
be vested solely in the applicant, a State home, or another 
agency or instrumentality of the State. 
(6) Reasonable assurance that adequate financial support 
will be available for the construction of the project (or for facility 
acquisition and construction of the project) by July 1 of the 
fiscal year for which the application is approved and for its 
maintenance and operation when complete. 
(7) Reasonable assurance that the State will make such reports in such 
form and containing such information as the Secretary may from time to 
time reasonably require, and give the 
Secretary, upon demand, access to the records upon which such 
information is based. 
(8) Reasonable assurance that the rates of pay for laborers 
and mechanics engaged in construction of the project will be 
not less than the prevailing local wage rates for similar work 
as determined in accordance with sections 3141-3144, 3146, 
and 3147 of title 40. 
(9) In the case of a project for acquisition of a facility, reasonable 
assurance that the estimated total cost of acquisition 
of the facility and of any expansion, remodeling, and alteration 
of the acquired facility will not be greater than the estimated 
cost of construction of an equivalent new facility. 
(b)(1) Any State seeking to receive assistance under this sub
chapter for a project that would involve construction or acquisition 
of either nursing home or domiciliary facilities shall include with 
its application under subsection (a) the following: 

(A) Documentation (i) that the site for the project is in reasonable 
proximity to a sufficient concentration and population 
of veterans who are 65 years of age and older, and (ii) that 
there is a reasonable basis to conclude that the facilities when 
complete will be fully occupied. 
(B) A financial plan for the first three years of operation 
of such facilities. 
(C) A five-year capital plan for the State home program for 
that State. 
(2) Failure to provide adequate documentation under paragraph (1)(A) 
or to provide an adequate financial plan under paragraph (1)(B) shall 
be a basis for disapproving the application. 
(c)(1) Upon receipt of an application under subsection (a) for 
financial assistance under this subchapter, the Secretary- 

(A) shall determine whether the application meets the requirements of 
this section and of the regulations prescribed 
under section 8134 of this title; 
(B) shall notify the State submitting the application 
whether the application conforms with those requirements and, 
if it does not, of the actions necessary to bring the application 
into conformance with those requirements; and 

1059 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8135 

(C) shall determine the priority of the project described in 
the application in accordance with the provisions of this subsection. 
(2) Subject to paragraphs (3) and (5)(C) of this subsection, the 
Secretary shall accord priority to applications in the following 
order: 
(A) An application from a State that has made sufficient 
funds available for the project for which the grant is requested 
so that such project may proceed upon approval of the grant 
without further action required by the State to make such 
funds available for such purpose. 
(B) An application from a State for a project at an existing 
facility to remedy a condition or conditions that have been 
cited by an accrediting institution, by the Secretary, or by a 
local licensing or approving body of the State as being threatening 
to the lives or safety of the patients in the facility. 
(C) An application from a State that has not previously applied for 
award of a grant under this subchapter for construction or acquisition 
of a State nursing home. 
(D) An application for construction or acquisition of a nursing home 
or domiciliary from a State that the Secretary determines, in 
accordance with regulations under this subchapter, 
has a great need for the beds to be established at such home 
or facility. 
(E) An application from a State for renovations to a State 
home facility other than renovations described in subparagraph (B). 
(F) An application for construction or acquisition of a nursing home 
or domiciliary from a State that the Secretary determines, in 
accordance with regulations under this subchapter, 
has a significant need for the beds to be established at such 
home or facility. 
(G) An application that meets other criteria as the Secretary 
determines appropriate and has established in regulations. 
(H) An application for construction or acquisition of a 
nursing home or domiciliary from a State that the Secretary 
determines, in accordance with regulations under this subchapter, has 
a limited need for the beds to be established at 
such home or facility. 
(3) In according priorities to projects under paragraph (2) of 
this subsection, the Secretary- 
(A) may not accord any priority to a project for the construction or 
acquisition of a hospital; and 
(B) may not accord any priority to a project which would 
expand a Stateï¿½s capacity to furnish hospital care in a State 
home. 
(4) The Secretary shall establish a list of approved projects 
(including projects that have been conditionally approved under 
paragraph (6) of this subsection), in the order of their priority, as 
of August 15 of each year. The Secretary shall award grants in the order 
of their priority on the list during the fiscal year beginning on 
October 1 of the calendar year in which the list was made. 

Sec. 8135 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1060 

(5)(A) The Secretary shall defer approval of an application that 
otherwise meets the requirements of this section if the State submitting 
the application does not, by the July 1 deadline (as defined 
in subparagraph (D) of this paragraph), demonstrate to the satisfaction 
of the Secretary that the State has provided adequate financial support 
for construction of the project. 

(B) In a case in which approval of an application is deferred 
under subparagraph (A) of this paragraph, the Secretary shall select 
for award of a grant or grants under this subsection an application or 
applications which would not have been approved during 
the fiscal year but for the deferral and to which the Secretary accords 
the highest priority under paragraph (2) of this subsection. 
(C) An application deferred in accordance with the requirements of this 
paragraph shall be accorded priority in any subsequent fiscal year ahead 
of applications that had not been approved 
before the first day of the fiscal year in which the deferred 
application was first approved. 
(D) For the purposes of this paragraph, the term ï¿½ï¿½July 1 deadlineï¿½ï¿½ 
means July 1 of the fiscal year in which the State is notified 
by the Secretary of the availability of funding for a grant for such 
project. 
(6)(A) The Secretary may conditionally approve a project under 
this section, conditionally award a grant for the project, and obligate 
funds for the grant if the Secretary determines that the application 
for the grant is sufficiently complete to warrant awarding 
the grant and that, based on assurances provided by the State submitting 
the application, the State will complete the application and 
meet all the requirements referred to in paragraph (1)(A) of this 
subsection by the date, not later than 180 days after the date of 
the conditional approval, specified by the Secretary. 

(B) If a State does not complete the application and meet all 
the requirements referred to in such paragraph by the date specified by 
the Secretary under subparagraph (A) of this paragraph, 
the Secretary shall rescind the conditional approval and award 
under such subparagraph and deobligate the funds previously obligated 
in connection with the application. In the event the Secretary 
rescinds conditional approval of a project under this subparagraph, 
the Secretary may not further obligate funds for the project during 
the fiscal year in which the Secretary rescinds such approval. 
(7)(A) Subject to subparagraph (B) of this paragraph, the Secretary 
may increase the amount of any grant awarded to any State 
for a project under this section by an amount by which the Secretary 
determines that the estimated cost of the construction or acquisition 
has increased from the estimated cost on which the Secretary based the 
determination to award the grant, without regard 
to the position of such project on the list established under paragraph 
(4) of this subsection, if the Secretary determines that the 
grant was awarded before the State entered into a contract for the 
construction or acquisition provided for in such project. 

(B) A grant may not be increased under subparagraph (A) of 
this paragraph by more than 10 percent of the amount of the grant 
initially awarded for such project, and the amount of such grant, 
as increased, may not exceed 65 percent of the cost of the project. 

1061 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8136 

(d) No application submitted to the Secretary under this section shall 
be disapproved until the Secretary has afforded the applicant notice 
and an opportunity for a hearing. 
(e) The amount of a grant under this subchapter shall be paid 
to the applicant or, if designated by the applicant, the State home 
for which such project is being carried out or any other agency or 
instrumentality of the applicant. Such amount shall be paid, in advance 
or by way of reimbursement, and in such installments consistent with 
the progress of the project as the Secretary may determine and certify 
for payment to the Secretary of the Treasury. 
Funds paid under this section for an approved project shall be used 
solely for carrying out such project as so approved. 
(f) Any amendment of any application, whether or not approved, shall
be subject to approval in the same manner as an 
original application. 
(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 502, Sec. 
5035; amended Pub. L. 89-311, Sec. 7(a), Oct. 31, 1965, 79 Stat. 1157; 
Pub. L. 93-82, title IV, Sec. 403(e), Aug. 2, 1973, 87 Stat. 196; 
Pub. L. 94-581, title II, Sec. 206(b), 210(e)(10), Oct. 21, 1976, 90 
Stat. 2859, 2865; Pub. L. 95-62, Sec. 3(7)-(12), July 5, 1977, 91 
Stat. 262, 263; Pub. L. 97-295, Sec. 4(92), Oct. 12, 1982, 96 Stat. 
1313; Pub. L. 98- 528, title I, Sec. 105(3), Oct. 19, 1984, 98 Stat. 
2689; Pub. L. 99-166, title II, Sec. 205, Dec. 3, 1985, 99 Stat. 953; 
Pub. L. 99-576, title II, Sec. 224(b), (c), Oct. 28, 1986, 100 Stat. 
3262, 3263; Pub. L. 100-322, title II, Sec. 206, May 20, 1988, 102 
Stat. 513; renumbered Sec. 8135 and amended Pub. L. 102-40, title IV, 
Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 
102-54, Sec. 14(f)(7), June 13, 1991, 105 Stat. 288; Pub. L. 102-83, 
Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 
102-585, title IV, Sec. 403(a), 404(a), Nov. 4, 1992, 106 Stat. 4954; 
Pub. L. 103-446, title XII, Sec. 1201(d)(18), Nov. 2, 1994, 108 Stat. 
4684; Pub. L. 104-262, title III, Sec. 342(b)(3), Oct. 9, 1996, 110 
Stat. 3206; Pub. L. 106-117, title II, Sec. 207(b), Nov. 30, 1999, 
113 Stat. 1565; Pub. L. 107-217, Sec. 3(j)(4), Aug. 21, 
2002, 116 Stat. 1300.) 

ï¿½ 8136. Recapture provisions 

(a) If, within the 20-year period beginning on the date of the 
approval by the Secretary of the final architectural and engineering 
inspection of any project with respect to which a grant has been 
made under this subchapter (except that the Secretary, pursuant 
to regulations which the Secretary shall prescribe, may at the time 
of such grant provide for a shorter period than 20, but not less 
than seven, years, based on the magnitude of the project and the 
grant amount involved, in the case of the acquisition, expansion, 
remodeling, or alteration of existing facilities), the facilities 
covered 
by the project cease to be operated by a State, a State home, or an 
agency or instrumentality of a State principally for furnishing 
domiciliary, nursing home, or hospital care to veterans, the United 
States shall be entitled to recover from the State which was the 
recipient of the grant under this subchapter, or from the then owner 
of such facilities, 65 percent of the then value of such project (but 
in no event an amount greater than the amount of assistance provided 
under this subchapter), as determined by agreement of the 
parties or by action brought in the district court of the United 
States for the district in which such facilities are situated. 
(b) The establishment and operation by the Secretary of an 
outpatient clinic in facilities described in subsection (a) shall not 
constitute grounds entitling the United States to any recovery 
under that subsection. 

Sec. 8137 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1062 

(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 503, Sec. 
5036; amended Pub. L. 93-82, title IV, Sec. 403(f), Aug. 2, 1973, 87 
Stat. 196; Pub. L. 94-581, title II, Sec. 206(b), Oct. 21, 1976, 90 
Stat. 2859; Pub. L. 95-62, Sec. 3(13), July 5, 1977, 91 Stat. 263; 
Pub. L. 97-295, Sec. 4(92), Oct. 12, 1982, 96 Stat. 1313; Pub. L. 98- 
528, title I, Sec. 105(4), Oct. 19, 1984, 98 Stat. 2690; renumbered 
Sec. 8136, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 
105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405; Pub. L. 102-585, title IV, Sec. 405, Nov. 4, 1992, 
106 Stat. 4954; Pub. L. 106-419, title II, Sec. 222, Nov. 1, 2000, 114 
Stat. 1845.) 
ï¿½ 8137. State control of operations 

Except as otherwise specifically provided, nothing in this subchapter 
shall be construed as conferring on any Federal officer or 
employee the right to exercise any supervision or control over the 
administration, personnel, maintenance, or operation of any State 
home for which facilities are constructed or acquired with assistance 
received under this subchapter. 

(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 503, Sec. 
5037; amended Pub. L. 98-528, title I, Sec. 105(5), Oct. 19, 1984, 
98 Stat. 2690; renumbered Sec. 8137, Pub. L. 102-40, title IV, Sec. 
402(b)(1), May 7, 1991, 105 Stat. 238.) 

ï¿½ 8138. Treatment of certain health facilities as State homes 

(a) The Secretary may treat a health facility (or certain beds 
in a health facility) as a State home for purposes of subchapter V 
of chapter 17 of this title if the following requirements are met: 
(1) The facility (or certain beds in such facility) meets the 
standards for the provision of nursing home care that are applicable 
to State homes, as prescribed by the Secretary under 
section 8134(b) of this title, and such other standards relating 
to the facility (or certain beds in such facility) as the Secretary 
may require. 
(2) The facility (or certain beds in such facility) is licensed 
or certified by the appropriate State and local agencies charged 
with the responsibility of licensing or otherwise regulating or 
inspecting State home facilities. 
(3) The State demonstrates in an application to the Secretary that, 
but for the treatment of a facility (or certain beds in such facility), 
as a State home under this subsection, a substantial number of veterans 
residing in the geographic area in 
which the facility is located who require nursing home care 
will not have access to such care. 
(4) The Secretary determines that the treatment of the facility (or 
certain beds in such facility) as a State home best 
meets the needs of veterans for nursing home care in the geographic 
area in which the facility is located. 
(5) The Secretary approves the application submitted by 
the State with respect to the facility (or certain beds in such 
facility). 
(b) The Secretary may not treat a health facility (or certain 
beds in a health facility) as a State home under subsection (a) if 
the Secretary determines that such treatment would increase the 
number of beds allocated to the State in excess of the limit on the 
number of beds provided for by regulations prescribed under section 
8134(a) of this title. 

1063 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8152 

(c) The number of beds occupied by veterans in a health facility 
for which payment may be made under subchapter V of chapter 17 
of this title by reason of subsection (a) shall not exceed- 
(1) 100 beds in the aggregate for all States; and 
(2) in the case of any State, the difference between- 
(A) the number of veterans authorized to be in beds in 
State homes in such State under regulations prescribed 
under section 8134(a) of this title; and 
(B) the number of veterans actually in beds in State 
homes (other than facilities or certain beds treated as 
State homes under subsection (a)) in such State under regulations 
prescribed under such section. 
(d) The number of beds in a health facility in a State that has 
been treated as a State home under subsection (a) shall be taken 
into account in determining the unmet need for beds for State 
homes for the State under section 8134(d)(1) of this title. 
(e) The Secretary may not treat any new health facilities (or 
any new certain beds in a health facility) as a State home under 
subsection (a) after September 30, 2009. 
(Added Pub. L. 109-461, title II, Sec. 211(c)(1), Dec. 22, 2006, 
120 Stat. 3420.) 

SUBCHAPTER IV-SHARING OF MEDICAL FACILITIES, 
EQUIPMENT, AND INFORMATION 


ï¿½ 8151. Statement of congressional purpose 

It is the purpose of this subchapter to strengthen the medical 
programs at Department facilities and improve the quality of 
health care provided veterans under this title by authorizing the 
Secretary to enter into agreements with health-care providers in 
order to share health-care resources with, and receive health-care 
resources from, such providers while ensuring no diminution of 
services to veterans. 

(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 
1373, Sec. 5051; amended Pub. L. 101-366, title II, Sec. 202(a), 
Aug. 15, 1990, 104 Stat. 438; renumbered Sec. 8151, Pub. L. 102-40, 
title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; 
Pub. L. 103-210, Sec. 3(a), Dec. 20, 1993, 107 Stat. 2497; Pub. L. 
104-262, title III, Sec. 301(a), Oct. 9, 1996, 110 Stat. 3191.) 
ï¿½ 8152. Definitions 

For the purposes of this subchapter- 

(1) The term ï¿½ï¿½health-care resourceï¿½ï¿½ includes hospital care 
and medical services (as those terms are defined in section 
1701 of this title), services under sections 1782 and 1783 of 
this title, any other health-care service, and any health-care 
support or administrative resource. 
(2) The term ï¿½ï¿½health-care providersï¿½ï¿½ includes health-care 
plans and insurers and any organizations, institutions, or other 
entities or individuals who furnish health-care resources. 
(3) The term ï¿½ï¿½hospitalï¿½ï¿½, unless otherwise specified, includes any 
Federal, State, local, or other public or private hospital. 
(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 
1373, Sec. 5052; renumbered Sec. 8152, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102-54, 
Sec. 14(f)(8), June 13, 1991, 105 Stat. 288; Pub. 


Sec. 8153 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1064 

L. 103-210, Sec. 3(b), Dec. 20, 1993, 107 Stat. 2497; Pub. L. 104-262, 
title III, Sec. 301(b), Oct. 9, 1996, 110 Stat. 3191; Pub. L. 107-135, 
title II, Sec. 208(e)(8), Jan. 
23, 2002, 115 Stat. 2464.) 
ï¿½ 8153. Sharing of health-care resources 

(a)(1) To secure health-care resources which otherwise might 
not be feasibly available, or to effectively utilize certain other 
health-care resources, the Secretary may, when the Secretary determines 
it to be in the best interest of the prevailing standards 
of the Department medical care program, make arrangements, by 
contract or other form of agreement for the mutual use, or exchange of 
use, of health-care resources between Department 
health-care facilities and any health-care provider, or other entity 
or individual. 

(2) The Secretary may enter into a contract or other agreement 
under paragraph (1) if such resources are not, or would not be, 
used to their maximum effective capacity. 
(3)(A) If the health-care resource required is a commercial 
service, the use of medical equipment or space, or research, and is 
to be acquired from an institution affiliated with the Department 
in accordance with section 7302 of this title, including medical 
practice groups and other entities associated with affiliated 
institutions, blood banks, organ banks, or research centers, the 
Secretary may make arrangements for acquisition of the resource 
without regard to any law or regulation (including any Executive
order, circular, or other administrative policy) that would otherwise 
require 
the use of competitive procedures for acquiring the resource. 

(B)(i) If the health-care resource required is a commercial service 
or the use of medical equipment or space, and is not to be acquired 
from an entity described in subparagraph (A), any procurement of the 
resource may be conducted without regard to any law 
or regulation that would otherwise require the use of competitive 
procedures for procuring the resource, but only if the procurement 
is conducted in accordance with the simplified procedures prescribed 
pursuant to clause (ii). 

(ii) The Secretary, in consultation with the Administrator for 
Federal Procurement Policy, may prescribe simplified procedures 
for the procurement of health-care resources under this subparagraph. 
The Secretary shall publish such procedures for public comment in 
accordance with section 22 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 418b). Such procedures shall permit 
all responsible sources, as appropriate, to submit a bid, proposal, 
or quotation (as appropriate) for the resources to be procured and 
provide for the consideration by the Department of bids, proposals, 
or quotations so submitted. 
(iii) Pending publication of the procedures under clause (ii), the 
Secretary shall (except as provided under subparagraph (A)) procure 
health-care resources referred to in clause (i) in accordance 
with all procurement laws and regulations. 
(C) Any procurement of health-care resources other than those 
covered by subparagraph (A) or (B) shall be conducted in accordance 
with all procurement laws and regulations. 
(D) For any procurement to be conducted on a sole source basis 
other than a procurement covered by subparagraph (A), a written 

1065 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8153 

justification shall be prepared that includes the information and is 
approved at the levels prescribed in section 303(f) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
253(f)). 

(E) As used in this paragraph, the term ï¿½ï¿½commercial serviceï¿½ï¿½ 
means a service that is offered and sold competitively in the 
commercial marketplace, is performed under standard commercial 
terms and conditions, and is procured using firm-fixed price contracts. 
(b) Arrangements entered into under this section shall provide 
for payment to the Department in accordance with procedures that 
provide appropriate flexibility to negotiate payment which is in the 
best interest of the Government. Any proceeds to the Government 
received therefrom shall be credited to the applicable Department 
medical appropriation and to funds that have been allotted to the 
facility that furnished the resource involved. 
(c) Eligibility for hospital care and medical services furnished 
any veteran pursuant to this section shall be subject to the same 
terms as though provided in a Department health care facility, and 
provisions of this title applicable to persons receiving hospital care 
or medical services in a Department health care facility shall apply 
to veterans treated under this section. 
(d) When a Department health care facility provides hospital 
care or medical services, pursuant to a contract or agreement 
authorized by this section, to an individual who is not eligible for 
such care or services under chapter 17 of this title and who is entitled 
to hospital or medical insurance benefits under title XVIII of 
the Social Security Act (42 U.S.C. 1395 et seq.), such benefits shall 
be paid, notwithstanding any condition, limitation, or other provision 
in that title which would otherwise preclude such payment to 
such facility for such care or services or, if the contract or agreement 
so provides, to the community health care facility which is a 
party to the contract or agreement. 
(e) The Secretary may make an arrangement that authorizes 
the furnishing of services by the Secretary under this section to 
individuals who are not veterans only if the Secretary determines- 
(1) that veterans will receive priority under such an arrangement; and 
(2) that such an arrangement- 
(A) is necessary to maintain an acceptable level and 
quality of service to veterans at that facility; or 
(B) will result in the improvement of services to eligible veterans at 
that facility. 
(f) Any amount received by the Secretary from a non-Federal 
entity as payment for services provided by the Secretary during a 
prior fiscal year under an agreement entered into under this section 
may be obligated by the Secretary during the fiscal year in 
which the Secretary receives the payment. 
(g) The Secretary shall submit to the Congress not later than 
February 1 of each year a report on the activities carried out under 
this section during the preceding fiscal year. Each report shall include- 

Sec. 8154 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1066 

(1) an appraisal of the effectiveness of the activities authorized in 
this section and the degree of cooperation from 
other sources, financial and otherwise; and 
(2) recommendations for the improvement or more effective 
administration of such activities. 
(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 1374, 
Sec. 5053; amended Pub. L. 91-496, Sec. 4, Oct. 22, 1970, 84 Stat. 
1092; Pub. L. 93-82, title III, Sec. 303, Aug. 2, 1973, 87 Stat. 195; 
Pub. L. 94-581, title I, Sec. 115(a)(1), title II, Sec. 206(c), 
210(e)(11), Oct. 21, 1976, 90 Stat. 2852, 2859, 2865; Pub. L. 96-151, 
title III, Sec. 304, Dec. 20, 1979, 93 Stat. 1096; Pub. L. 97-295, 
Sec. 4(95)(A), Oct. 12, 1982, 96 Stat. 1313; Pub. L. 98-160, title 
VII, Sec. 702(20), Nov. 21, 1983, 97 Stat. 1010; Pub. L. 99-576, title 
II, Sec. 231(c)(1), Oct. 28, 1986, 100 Stat. 3264; Pub. L. 101-366, 
title II, Sec. 202(b), Aug. 15, 1990, 104 Stat. 438; renumbered Sec. 
8153, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 
238; Pub. L. 102-54, Sec. 14(f)(9), June 13, 1991, 105 Stat. 288; Pub. 
L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(D), (E), Aug. 6, 1991, 105 
Stat. 404, 405; Pub. L. 103-210, Sec. 3(c), Dec. 20, 1993, 107 Stat. 
2498; Pub. L. 104-262, title III, Sec. 301(c), (d)(1), Oct. 9, 1996, 
110 Stat. 3191, 3193; Pub. L. 105-114, title IV, Sec. 402(d), (e), 
Nov. 21, 1997, 111 Stat. 2294; Pub. L. 106-419, title IV, Sec. 
404(b)(2), Nov. 1, 2000, 114 Stat. 1866; Pub. L. 108-170, title IV, 
Sec. 405(d), Dec. 6, 2003, 117 Stat. 2063.) 

ï¿½ 8154. Exchange of medical information 

(a) The Secretary is authorized to enter into agreements with 
medical schools, hospitals, research centers, and individual members of 
the medical profession under which medical information and techniques 
will be freely exchanged and the medical information services of all 
parties to the agreement will be available for use by any party to the 
agreement under conditions specified in the agreement. In carrying out 
the purposes of this section, the Secretary shall utilize recent 
developments in electronic equipment to provide a close educational, 
scientific, and professional link between Department hospitals and 
major medical centers. Such agreements shall be utilized by the 
Secretary to the maximum extent practicable to create, at each 
Department hospital which is a part of any such agreement, an 
environment of academic medicine which will help such hospital 
attract and retain highly trained and qualified members of the 
medical profession. 
(b) In order to bring about utilization of all medical information 
in the surrounding medical community, particularly in remote 
areas, and to foster and encourage the widest possible cooperation 
and consultation among all members of the medical profession in 
such community, the educational facilities and programs established 
at Department hospitals and the electronic link to medical 
centers shall be made available for use by the surrounding medical 
community (including State home facilities furnishing domiciliary, 
nursing home, or hospital care to veterans). The Secretary may 
charge a fee for such services (on annual or like basis) at rates 
which the Secretary determines, after appropriate study, to be fair 
and equitable. The financial status of any user of such services 
shall be taken into consideration by the Secretary in establishing 
the amount of the fee to be paid. Any proceeds to the Government 
received therefrom shall be credited to the applicable Department 
medical appropriation. 
(c) The Secretary is authorized to enter into agreements with 
public and nonprofit private institutions, organizations, corporations, 
and other entities in order to participate in cooperative 

1067 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8155 

health-care personnel education programs within the geographical 
area of any Department health-care facility located in an area remote 
from major academic health centers. 

(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 1374, 
Sec. 5054; amended Pub. L. 94-424, Sec. 1(1), Sept. 28, 1976, 90 Stat. 
1332; Pub. L. 94-581, title II, Sec. 206(d), 210(e)(12), Oct. 21, 1976, 
90 Stat. 2859, 2865; Pub. L. 96-151, title I, Sec. 102(a), Dec. 20, 
1979, 93 Stat. 1092; Pub. L. 97-251, Sec. 9, Sept. 8, 1982, 96 Stat. 
716; renumbered Sec. 8154, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8155. Pilot programs; grants to medical schools 

(a) The Secretary may establish an Advisory Subcommittee on 
Programs for Exchange of Medical Information, of the Special Medical 
Advisory Group, established under section 7312 of this title, to 
advise the Secretary on matters regarding the administration of 
this section and to coordinate these functions with other research 
and education programs in the Department of Medicine and Surgery. The 
Assistant Under Secretary for Health charged with administration of 
the Department of Medicine and Surgery medical 
research program shall be an ex officio member of this Subcommittee. 
(b) The Secretary, upon the recommendation of the Subcommittee, is 
authorized to make grants to medical schools, hospitals, and research 
centers to assist such medical schools, hospitals, and research centers 
in planning and carrying out agreements authorized by section 8154 of 
this title. Such grants may be 
used for the employment of personnel, the construction of facilities, 
the purchasing of equipment when necessary to implement such 
programs, and for such other purposes as will facilitate the 
administration of this section. 
(c)(1) There is hereby authorized to be appropriated an amount 
not to exceed $3,500,000 for fiscal year 1976; $1,700,000 for the 
period beginning July 1, 1976, and ending September 30, 1976; 
$4,000,000 for fiscal year 1977; $4,000,000 for fiscal year 1978; and 
$4,000,000 for fiscal year 1979 and for each of the three succeeding 
fiscal years, for the purpose of developing and carrying out medical 
information programs under this section on a pilot program basis 
and for the grants authority in subsection (b) of this section. Pilot 
programs authorized by this subsection shall be carried out at 
Department hospitals in geographically dispersed areas of the United 
States. 

(2) Funds authorized under this section shall not be available 
to pay the cost of hospital, medical, or other care of patients except 
to the extent that such cost is determined by the Secretary to be 
incident to research, training, or demonstration activities carried 
out under this section. 
(d) The Secretary, after consultation with the Subcommittee 
shall prescribe regulations covering the terms and conditions for 
making grants under this section. 
(e) Each recipient of a grant under this section shall keep such 
records as the Secretary may prescribe, including records which 
fully disclose the amount and disposition by such recipient of the 
proceeds of such grant, the total cost of the project or undertaking 
in connection with which such grant is made or used, and the 

Sec. 8156 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1068 

amount of that portion of the cost of the project or undertaking 
supplied by other sources, and such records as will facilitate an 
effective audit. 

(f) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access, for the purpose of audit and examination, to any books, 
documents, papers, and records of the recipient of any grant under 
this section which are pertinent to any such grant. 
(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 1375, 
Sec. 5055; amended Pub. L. 92-69, Aug. 6, 1971, 85 Stat. 178; Pub. L. 
94-424, Sec. 1(2), Sept. 28, 1976, 90 Stat. 1332; Pub. L. 94-581, 
title II, Sec. 206(e), 210(e)(13), Oct. 21, 1976, 90 Stat. 2859, 2865; 
Pub. L. 96-151, title I, Sec. 102(b), Dec. 20, 1979, 93 Stat. 1092; 
renumbered Sec. 8155 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1),(d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 103-446, title XII, Sec. 1201(d)(19), Nov. 2, 
1994, 108 Stat. 4684.) 

ï¿½ 8156. Coordination with health services development ac

tivities carried out under the National Health 

Planning and Resources Development Act of 1974 

The Secretary and the Secretary of Health and Human Services shall, to 
the maximum extent practicable, coordinate programs 
carried out under this subchapter and programs carried out under 
part F of title XVI of the Public Health Service Act (42 U.S.C. 300t 
et seq.). 

(Added Pub. L. 89-785, title II, Sec. 203, Nov. 7, 1966, 80 Stat. 1375,
Sec. 5056; amended Pub. L. 94-581, title I, Sec. 115(a)(2), Oct. 21,
1976, 90 Stat. 2853; Pub. L. 97-295, Sec. 4(93), (95)(A), Oct. 12, 
1982, 96 Stat. 1313; renumbered Sec. 8156, Pub. L. 102-40, title IV, 
Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102- 
83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 
ï¿½ 8157. Joint title to medical equipment 

(a) Subject to subsection (b), the Secretary may enter into 
agreements with institutions described in section 8153(a) of this 
title for the joint acquisition of medical equipment. 
(b)(1) The Secretary may not pay more than one-half of the 
purchase price of equipment acquired through an agreement under 
subsection (a). 

(2) Any equipment to be procured under such an agreement 
shall be procured by the Secretary. Title to such equipment shall 
be held jointly by the United States and the institution. 
(3) Before equipment acquired under such an agreement may 
be used, the parties to the agreement shall arrange by contract 
under section 8153 of this title for the exchange or use of the 
equipment. 
(4) The Secretary may not contract for the acquisition of medical 
equipment to be purchased jointly under an agreement under 
subsection (a) until the institution which enters into the agreement 
provides to the Secretary its share of the purchase price of the 
medical equipment. 
(c)(1) Notwithstanding any other provision of law, the Secretary may 
transfer the interest of the Department in equipment acquired through 
an agreement under subsection (a) to the institution which holds joint 
title to the equipment if the Secretary determines that the transfer 
would be justified by compelling clinical 


1069 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8161 

considerations or the economic interest of the Department. Any 
such transfer may only be made upon agreement by the institution 
to pay to the Department the amount equal to one-half of the 
depreciated purchase price of the equipment. Any such payment 
when received shall be credited to the applicable Department medical 
appropriation. 

(2) Notwithstanding any other provision of law, the Secretary 
may acquire the interest of an institution in equipment acquired 
under subsection (a) if the Secretary determines that the acquisition 
would be justified by compelling clinical considerations or the 
economic interests of the Department. The Secretary may not pay 
more than one-half the depreciated purchase price of that equipment. 
(Added Pub. L. 102-405, title I, Sec. 103(a)(1), Oct. 9, 1992, 106 
Stat. 1973.) 

ï¿½ 8158. Deposit in escrow 

(a) To facilitate the procurement of medical equipment pursuant to 
section 8157 of this title, the Secretary may enter into escrow 
agreements with institutions described in section 8153(a) of 
this title. Any such agreement shall provide that- 
(1) the institutions shall pay to the Secretary the funds 
necessary to make a payment under section 8157(b)(4) of this 
title; 
(2) the Secretary, as escrow agent, shall administer those 
funds in an escrow account; and 
(3) the Secretary shall disburse the escrowed funds to pay 
for such equipment upon its delivery or in accordance with the 
contract to procure the equipment and shall disburse all accrued 
interest or other earnings on the escrowed funds to the 
institution. 
(b) As escrow agent for funds placed in escrow pursuant to an 
agreement under subsection (a), the Secretary may- 
(1) invest the escrowed funds in obligations of the Federal 
Government or obligations which are insured or guaranteed by 
the Federal Government; 
(2) retain in the escrow account interest or other earnings 
on such investments; 
(3) disburse the funds pursuant to the escrow agreement; 
and 
(4) return undisbursed funds to the institution. 
(c)(1) If the Secretary enters into an escrow agreement under 
this section, the Secretary may enter into an agreement to procure 
medical equipment if one-half the purchase price of the equipment 
is available in an appropriation or fund for the expenditure or
obligation. 

(2) Funds held in an escrow account under this section shall 
not be considered to be public funds.
(Added Pub. L. 102-405, title I, Sec. 103(a)(1), Oct. 9, 1992, 106 
Stat. 1974.)


SUBCHAPTER V-ENHANCED-USE LEASES OF REAL 
PROPERTY 


ï¿½ 8161. Definitions 

For the purposes of this subchapter: 


Sec. 8162 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1070 

(1) The term ï¿½ï¿½enhanced-use leaseï¿½ï¿½ means a written lease 
entered into by the Secretary under this subchapter. 
(2) The term ï¿½ï¿½congressional veteransï¿½ affairs committeesï¿½ï¿½ 
means the Committees on Veteransï¿½ Affairs of the Senate and 
the House of Representatives. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
417.) 

ï¿½ 8162. Enhanced-use leases 

(a)(1) The Secretary may in accordance with this subchapter 
enter into leases with respect to real property that is under the 
jurisdiction or control of the Secretary. Any such lease under this 
subchapter may be referred to as an ï¿½ï¿½enhanced-use leaseï¿½ï¿½. The 
Secretary may dispose of any such property that is leased to another 
party under this subchapter in accordance with section 8164 of this 
title. The Secretary may exercise the authority provided by this 
subchapter notwithstanding section 8122 of this title, subchapter II 
of chapter 5 of title 40, sections 541-555 and 1302 of title 40, or 
any other provision of law (other than Federal laws relating to 
environmental and historic preservation) inconsistent with this 
section. The applicability of this subchapter to section 421(b) of the 
Veteransï¿½ Benefits and Services Act of 1988 (Public Law 100-322; 
102 Stat. 553) is covered by subsection (c). 

(2) The Secretary may enter into an enhanced-use lease only 
if- 
(A) the Secretary determines that- 
(i) at least part of the use of the property under the 
lease will be to provide appropriate space for an activity 
contributing to the mission of the Department; 
(ii) the lease will not be inconsistent with and will not 
adversely affect the mission of the Department; and 
(iii) the lease will enhance the use of the property; or 
(B) the Secretary determines that the implementation of a 
business plan proposed by the Under Secretary for Health for 
applying the consideration under such a lease to the provision 
of medical care and services would result in a demonstrable 
improvement of services to eligible veterans in the geographic 
service-delivery area within which the property is located. 
(3) The provisions of sections 3141-3144, 3146, and 3147 of 
title 40 shall not, by reason of this section, become inapplicable to 
property that is leased to another party under an enhanced-use 
lease. 
(4) A property that is leased to another party under an enhanced-use 
lease may not be considered to be unutilized or under-
utilized for purposes of section 501 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11411). 
(b)(1)(A) If the Secretary has determined that a property 
should be leased to another party through an enhanced-use lease, 
the Secretary shall select the party with whom the lease will be 
entered into using selection procedures determined by the Secretary 
that ensure the integrity of the selection process. 

(B) In the case of a property that the Secretary determines is 
appropriate for use as a facility to furnish services to homeless 
veterans under chapter 20 of this title, the Secretary may enter into 
an enhanced-use lease with a provider of homeless services without 

1071 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8163 

regard to the selection procedures required under subparagraph 
(A). 

(2) The term of an enhanced-use lease may not exceed 75 
years. 
(3)(A) Each enhanced-use lease shall be for fair consideration, 
as determined by the Secretary. Consideration under such a lease 
may be provided in whole or in part through consideration in-kind. 

(B) Consideration in-kind may include provision of goods or 
services of benefit to the Department, including construction, 
repair, remodeling, or other physical improvements of Department 
facilities, maintenance of Department facilities, or the provision 
of office, storage, or other usable space. 
(4) The terms of an enhanced-use lease may provide for the 
Secretary to- 
(A) obtain facilities, space, or services on the leased property; and 
(B) use minor construction funds for capital contribution 
payments. 
(c)(1) Subject to paragraph (2), the entering into an enhanced-
use lease covering any land or improvement described in section 
421(b)(2) of the Veteransï¿½ Benefits and Services Act of 1988 (Public 
Law 100-322; 102 Stat. 553) or section 224(a) of the Military 
Construction and Veterans Affairs and Related Agencies Appropriations 
Act, 2008 shall be considered to be prohibited by such sections unless 
specifically authorized by law. 

(2) The entering into an enhanced-use lease by the Secretary 
covering any land or improvement described in such section 
421(b)(2) shall not be considered to be prohibited under that section 
if under the lease- 
(A) the designated property is to be used only for childcare services; 
(B) those services are to be provided only for the benefit 
of- 
(i) employees of the Department; 
(ii) individuals employed on the premises of such property; and 
(iii) employees of a health-personnel educational institution that is 
affiliated with a Department facility; 
(C) over one-half of the employees benefited by the childcare services 
provided are required to be employees of the Department; and 
(D) over one-half of the children to whom child-care services are 
provided are required to be children of employees of 
the Department. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
417; amended Pub. L. 106-117, title II, Sec. 208(a), (b), Nov. 30, 
1999, 113 Stat. 1567; Pub. L. 106- 400, Sec. 2, Oct. 30, 2000, 114 
Stat. 1675; Pub. L. 107-95, Sec. 10(b), Dec. 21, 2001, 115 Stat. 920; 
Pub. L. 107-217, Sec. 3(j)(5), Aug. 21, 2002, 116 Stat. 1300; Pub. L. 
108-178, Sec. 4(i)(1), Dec. 15, 2003, 117 Stat. 2642; Pub. L. 110-161, 
div. I, title 
II, Sec. 224(c), Dec. 26, 2007, 121 Stat. 2272.) 

ï¿½ 8163. Hearing and notice requirements regarding proposed leases 

(a) If the Secretary proposes to enter into an enhanced-use 
lease with respect to certain property, the Secretary shall conduct 

Sec. 8163 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1072 

a public hearing before entering into the lease. The hearing shall 
be conducted in the community in which the property is located. At 
the hearing, the Secretary shall receive the views of veterans service 
organizations and other interested parties regarding the proposed lease
of the property and the possible effects of the uses to 
be made of the property under a lease of the general character then 
contemplated. The possible effects to be addressed at the hearing 
shall include effects on- 

(1) local commerce and other aspects of the local community; 
(2) programs administered by the Department; and 
(3) services to veterans in the community. 
(b) Before conducting such a hearing, the Secretary shall provide 
reasonable notice to the congressional veteransï¿½ affairs committees and 
to the public of the proposed lease and of the hearing. 
The notice shall include the following: 
(1) The time and place of the hearing. 
(2) Identification of the property proposed to be leased. 
(3) A description of the proposed uses of the property 
under the lease. 
(4) A description of how the uses to be made of the property under a 
lease of the general character then contemplated- 
(A) would- 
(i) contribute in a cost-effective manner to the 
mission of the Department; 
(ii) not be inconsistent with the mission of the Department; 
(iii) not adversely affect the mission of the Department; and 
(iv) affect services to veterans; or 
(B) would result in a demonstrable improvement of 
services to eligible veterans in the geographic service-delivery area 
within which the property is located. 
(5) A description of how those uses would affect services to 
veterans. 
(c)(1) If after a hearing under subsection (a) the Secretary in
tends to enter into an enhanced-use lease of the property involved, 
the Secretary shall notify the congressional veteransï¿½ affairs 
committees of the Secretaryï¿½s intention to enter into such lease and 
shall publish a notice of such intention in the Federal Register. 

(2) The Secretary may not enter into an enhanced use lease 
until the end of the 45-day period beginning on the date of the 
submission of notice under paragraph (1). 
(3) Each notice under paragraph (1) shall include the following: 
(A) An identification of the property involved. 
(B) An explanation of the background of, rationale for, and 
economic factors in support of, the proposed lease. 
(C) A summary of the views expressed by interested parties at the 
public hearing conducted in connection with the proposed designation, 
together with a summary of the Secretaryï¿½s 
evaluation of those views. 
(D) A description of the provisions of the proposed lease. 
(E) A description of how the proposed lease- 

1073 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8165 

(i) would- 
(I) contribute in a cost-effective manner to the 
mission of the Department; 
(II) not be inconsistent with the mission of the Department; 
(III) not adversely affect the mission of the Department; and 
(IV) affect services to veterans; or 
(ii) would result in a demonstrable improvement of 
services to eligible veterans in the geographic service-delivery area 
within which the property is located. 
(F) A description of how the proposed lease would affect 
services to veterans. 
(G) A summary of a cost-benefit analysis of the proposed 
lease. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
419; amended Pub. L. 106-117, title II, Sec. 208(c), Nov. 30, 1999, 
113 Stat. 1567; Pub. L. 106-419, title II, Sec. 241, title IV, Sec. 
404(b)(1), Nov. 1, 2000, 114 Stat. 1847, 1865; Pub. L. 108-170, 
title II, Sec. 202(a), (d)(1), Dec. 6, 2003, 117 Stat. 2047, 2048.) 

ï¿½ 8164. Authority for disposition of leased property 

(a) If, during the term of an enhanced-use lease or within 30 
days after the end of the term of the lease, the Secretary determines 
that the leased property is no longer needed by the Department, the 
Secretary may initiate action for the transfer to the lessee of all 
right, title, and interest of the United States in the property . A 
disposition of property may not be made under this section 
unless the Secretary determines that the disposition under this 
section rather than under section 8118 or 8122 of this title is in the 
best interests of the Department. 
(b) A disposition under this section may be made for such consideration 
as the Secretary determines is in the best interest of the 
United States and upon such other terms and conditions as the 
Secretary considers appropriate. 
(c) Not less than 45 days before a disposition of property is 
made under this section, the Secretary shall notify the congressional 
veteransï¿½ affairs committees of the Secretaryï¿½s intent to dispose of 
the property and shall publish notice of the proposed disposition in 
the Federal Register. The notice shall describe the background of, 
rationale for, and economic factors in support of, the proposed 
disposition (including a cost-benefit analysis summary) and 
the method, terms, and conditions of the proposed disposition. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
420; amended Pub. L. 108-170, title II, Sec. 202(b), Dec. 6, 2003, 117 
Stat. 2047; Pub. L. 108-422, title IV, Sec. 411(e)(3), Nov. 30, 2004, 
118 Stat. 2390.) 

ï¿½ 8165. Use of proceeds 

(a)(1) Funds received by the Department under an enhanced-
use lease and remaining after any deduction from those funds 
under subsection (b) shall be deposited in the Department of Veterans 
Affairs Medical Care Collections Fund established under section 1729A 
of this title. 

(2) Funds received by the Department from a disposal of leased 
property under section 8164 of this title shall be deposited in the 

Sec. 8166 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES 1074 

Department of Veterans Affairs Capital Asset Fund established 
under section 8118 of this title. 

(b) An amount sufficient to pay for any expenses incurred by 
the Secretary in any fiscal year in connection with an enhanced-
use lease shall be deducted from the proceeds of the lease for that 
fiscal year and may be used by the Secretary to reimburse the account 
from which the funds were used to pay such expenses. The 
Secretary may use the proceeds from any enhanced-use lease to reimburse 
applicable appropriations of the Department for any expenses incurred 
in the development of additional enhanced-use 
leases. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
421; Pub. L. 106-117, title II, Sec. 208(d), Nov. 30, 1999, 113 Stat. 
1568; Pub. L. 107-217, Sec. 3(j)(6), Aug. 21, 2002, 116 Stat. 1301; 
Pub. L. 108-7, div. K, title I, Sec. 113(d)(1), Feb. 20, 2003, 117 
Stat. 482; Pub. L. 108-170, title II, Sec. 202(c), Dec. 6, 2003, 117 
Stat. 2048; Pub. L. 108-178, Sec. 4(i)(2), Dec. 15, 2003, 117 Stat. 
2642; Pub. L. 108- 
422, title IV, Sec. 411(e)(4), Nov. 30, 2004, 118 Stat. 2390.) 

ï¿½ 8166. Construction standards 

(a) Unless the Secretary provides otherwise, the construction, 
alteration, repair, remodeling, or improvement of the property that 
is the subject of the lease shall be carried out so as to comply with 
all standards applicable to construction of Federal buildings. Any 
such construction, alteration, repair, remodeling, or improvement 
shall not be subject to any State or local law relating to land use, 
building codes, permits, or inspections unless the Secretary provides 
otherwise. 
(b) Unless the Secretary has provided that Federal construction 
standards are not applicable to a property, the Secretary shall 
conduct periodic inspections of any such construction, alteration, 
repair, remodeling, or improvement for the purpose of ensuring 
that the standards are met. 
(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
421; amended 
Pub. L. 108-422, title IV, Sec. 417, Nov. 30, 2004, 118 Stat. 2393.) 

ï¿½ 8167. Exemption from State and local taxes 

The interest of the United States in any property subject to an 
enhanced-use lease and any use by the United States of such property 
during such lease shall not be subject, directly or indirectly, 
to any State or local law relative to taxation, fees, assessments, or 
special assessments, except sales taxes charged in connection with 
any construction, alteration, repair, remodeling, or improvement 
project carried out under the lease. 

(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
421.) 

ï¿½ï¿½ 8168. Repealed. Pub. L. 105-114, title II, Sec. 205(b)(1), 
Nov. 21, 1997, 111 Stat. 2288ï¿½ 

ï¿½ 8169. Expiration 

The authority of the Secretary to enter into enhanced-use 
leases under this subchapter expires on December 31, 2011. 

(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat.
422; amended Pub. L. 103-452, title I, Sec. 103(d), Nov. 2, 1994, 108 
Stat. 4786; Pub. L. 104-110, title I, Sec. 101(k), Feb. 13, 1996, 110 
Stat. 769; Pub. L. 105-114, title II, Sec. 


1075 CH. 81-MEDICAL FACILITY CONSTRUCTION/SUPPLIES Sec. 8169 

205(a), Nov. 21, 1997, 111 Stat. 2288; Pub. L. 106-117, title II, 
Sec. 208(e), Nov. 
30, 1999, 113 Stat. 1568.) 


CHAPTER 82 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


1077 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART VI-ACQUISITION AND DISPOSITION OF 
PROPERTYï¿½ 

CHAPTER 82-ASSISTANCE IN ESTABLISHING NEW 
STATE MEDICAL SCHOOLS; GRANTS TO AFFILIATED 
MEDICAL SCHOOLS; ASSISTANCE TO HEALTH MANPOWER TRAINING INSTITUTIONS 

Sec. 
8201. Coordination with public health programs; administration. 


SUBCHAPTER I-PILOT PROGRAM FOR ASSISTANCE IN THE 
ESTABLISHMENT OF NEW STATE MEDICAL SCHOOLS 


8211. Declaration of purpose. 
8212. Authorization of appropriations. 
8213. Pilot program assistance. 
8214. Limitations. 

SUBCHAPTER II-GRANTS TO AFFILIATED MEDICAL SCHOOLS 

8221. Declaration of purpose. 
8222. Authorization of appropriations. 
8223. Grants. 

SUBCHAPTER III-ASSISTANCE TO PUBLIC AND NONPROFIT INSTITUTIONS OF 
HIGHER LEARNING, HOSPITALS AND OTHER HEALTH MANPOWER INSTITUTIONS 
AFFILIATED WITH THE DEPARTMENT TO INCREASE THE PRODUCTION OF 
PROFESSIONAL AND OTHER HEALTH PERSONNEL 

8231. Declaration of purpose. 
8232. Definition. 
8233. Grants. 

SUBCHAPTER IV-EXPANSION OF DEPARTMENT HOSPITAL EDUCATION 
AND TRAINING CAPACITY 


8241. Expenditures to remodel and make special allocations to 
Department hospitals for health manpower education and training. 

ï¿½ 8201. Coordination with public health programs; administration 

(a) The Secretary and the Secretary of Health and Human 
Services shall, to the maximum extent practicable, coordinate the 
programs carried out under this chapter and the programs carried 
out under titles VII, VIII, and IX of the Public Health Service Act 
(42 U.S.C. 292 et seq.). 
(b) The Secretary may not enter into any agreement under 
subchapter I of this chapter after September 30, 1979. 
(c) The Secretary, after consultation with the special medical 
advisory committee established pursuant to section 7312(a) of this 
title, shall prescribe regulations covering the terms and conditions 
1079 


Sec. 8201 CH. 82-GRANTS TO HEALTH INSTITUTIONS 1080 

for entering into agreements and making grants under this chapter. 

(d) Payments made pursuant to grants under this chapter may 
be made in installments, and either in advance or by way of 
reimbursement, with necessary adjustments on account of overpayments 
or underpayments, as the Secretary may determine. 
(e) In carrying out the purposes of this chapter, the Secretary 
may lease to any eligible institution for such consideration and 
under such terms and conditions as the Secretary deems appropriate, 
such land, buildings, and structures (including equipment 
therein) under the control and jurisdiction of the Department as 
may be necessary. The three-year limitation on the term of a lease 
prescribed in section 8122(a) of this title shall not apply with 
respect to any lease entered into pursuant to this chapter, but no 
such lease may be for a period of more than 50 years. Any lease 
entered into pursuant to this chapter may be entered into without 
regard to the provisions of section 3709 of the Revised Statutes (41 
U.S.C. 5). Notwithstanding section 1302 of title 40, or any other 
provision of law, a lease entered into pursuant to this chapter may 
provide for the maintenance, protection, or restoration, by the lessee, 
of the property leased, as a part or all of the consideration of 
the lease. 
(f) In making grants under this chapter, the Secretary shall 
give special consideration to applications from institutions which 
provide reasonable assurances, which shall be included in the grant 
agreement, that priority for admission to health manpower and 
training programs carried out by such institutions will be given to 
otherwise qualified veterans who during their military service acquired 
medical military occupation specialties, and that among 
such qualified veterans those who served during the Vietnam era 
and those who are entitled to disability compensation under laws 
administered by the Secretary or whose discharge or release was 
for a disability incurred or aggravated in line of duty will be given 
the highest priority. In carrying out this chapter and section 7302 
of this title in connection with health manpower and training programs 
assisted or conducted under this title or in affiliation with 
a Department medical facility, the Secretary shall take appropriate 
steps to encourage the institutions involved to afford the priorities 
described in the first sentence of this subsection and to advise all 
qualified veterans with such medical military occupation specialties 
of the steps the Secretary has taken under this subsection and the 
opportunities available to them as a result of such steps. 
(g)(1) Each recipient of assistance under this chapter shall 
keep such records as the Secretary shall prescribe, including 
records which fully disclose the amount and disposition by such 
recipient of the proceeds of such assistance, the total cost of the 
project or undertaking in connection with which such assistance is 
made or used, the amount of that portion of the cost of the project 
or undertaking supplied by other sources, and such records as will 
facilitate an effective audit. 

(2) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access for the purpose of audit and examination to any books, docu

1081 CH. 82-GRANTS TO HEALTH INSTITUTIONS Sec. 8213 

ments, papers, and records of the recipient of any assistance under 
this chapter which are pertinent to such assistance. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1101, Sec. 
5070; amended Pub. L. 94-581, title I, Sec. 116(1), (2), title II, Sec. 
210(f)(1), Oct. 21, 1976, 90 Stat. 2853, 2854, 2865; Pub. L. 96-151, 
title I, Sec. 103(a), Dec. 20, 1979, 93 Stat. 1093; Pub. L. 96-330,
title IV, Sec. 403(b), Aug. 26, 1980, 94 Stat. 1052; Pub. L. 97-295, 
Sec. 4(94), Oct. 12, 1982, 96 Stat. 1313; renumbered Sec. 8201 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(2)(A), (d)(1), 403(b)(6), 
May 7, 1991, 105 Stat. 239, 240; Pub. L. 102-54, Sec. 14(f)(10), 
June 13, 1991, 105 Stat. 288; Pub. L. 102-83, Sec. 4(a)(1), (3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 103-446, 
title XII, Sec. 1201(d)(20), Nov. 2, 1994, 108 Stat. 4685; Pub. L. 
106-419, title IV, Sec. 403(b), Nov. 1, 2000, 114 Stat. 1864; Pub. L. 
107-217, Sec. 3(j)(7), Aug. 21, 
2002, 116 Stat. 1301.) 
SUBCHAPTER I-PILOT PROGRAM FOR ASSISTANCE IN THE 
ESTABLISHMENT OF NEW STATE MEDICAL SCHOOLS 

ï¿½ 8211. Declaration of purpose 

The purpose of this subchapter is to authorize the Secretary to 
implement a pilot program under which the Secretary may provide 
assistance in the establishment of new State medical schools at 
colleges or universities which are primarily supported by the States 
in which they are located if such schools are located in proximity 
to, and operated in conjunction with, Department medical facilities. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1102, Sec.
5071; amended Pub. L. 94-581, title II, Sec. 210(f)(2), Oct. 21, 1976, 
90 Stat. 2865; renumbered Sec. 8211, Pub. L. 102-40, title IV, Sec. 
402(b)(2)(B), May 7, 1991, 105 Stat. 239; Pub. L. 102-83, Sec. 4(a)(3), 
(4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 
ï¿½ 8212. Authorization of appropriations 

(a) There is authorized to be appropriated $25,000,000 for the 
fiscal year ending June 30, 1973, and a like sum for each of the 
six succeeding fiscal years. Sums appropriated pursuant to this section 
shall be used for making grants pursuant to section 8213 of 
this title. 
(b) Sums appropriated pursuant to subsection (a) of this section shall 
remain available until the end of the sixth fiscal year following the 
fiscal year for which they are appropriated. 
(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1102, Sec. 
5072; renumbered Sec. 8212 and amended Pub. L. 102-40, title IV, 
Sec. 402(b)(2)(B), (d)(1), May 7, 1991, 105 Stat. 239.) 

ï¿½ 8213. Pilot program assistance 

(a) Subject to subsection (b) of this section, the Secretary may 
enter into an agreement to provide to any college or university 
which is primarily supported by the State in which it is located 
(hereinafter in this subchapter referred to as ï¿½ï¿½institutionï¿½ï¿½) the 
following assistance to enable such institution to establish a new 
medical school: 
(1) The extension, alteration, remodeling, improvement, or 
repair of buildings and structures (including, as part of a lease 
made under paragraph (1), the provision of equipment) provided under 
paragraph (1) to the extent necessary to make 
them suitable for use as medical school facilities. 
(2) The making of grants to assist the institution to pay 
the cost of the salaries of the faculty of such school during the 

Sec. 8213 CH. 82-GRANTS TO HEALTH INSTITUTIONS 1082 

initial 12-month period of operation of the school and the next 
six such 12-month periods, but payment under this paragraph 
may not exceed an amount equal to- 

(A) 90 percent of the cost of faculty salaries during the 
first 12-month period of operation, 
(B) 90 percent of such cost during the second such period, 
(C) 90 percent of such cost during the third such period, 
(D) 80 percent of such cost during the fourth such period, 
(E) 70 percent of such cost during the fifth such period, 
(F) 60 percent of such cost during the sixth such period, and 
(G) 50 percent of such cost during the seventh and 
eighth such periods. 
(b)(1) The Secretary may not enter into any agreement under 
subsection (a) of this section unless the Secretary finds, and the 
agreement includes satisfactory assurances, that- 

(A) there will be adequate State or other financial support 
for the proposed school; 
(B) the overall plans for the school meet such professional 
and other standards as the Secretary deems appropriate; 
(C) the school will maintain such arrangements with the 
Department medical facility with which it is associated (including but 
not limited to such arrangements as may be made under subchapter IV of 
chapter 81 of this title) as will be mutually beneficial in the carrying 
out of the mission of the medical facility and the school; and (D) on 
the basis of consultation with the appropriate accreditation body or 
bodies approved for such purpose by the 
Secretary of Education, there is reasonable assurance that, 
with the aid of an agreement under subsection (a) of this section, 
such school will meet the accreditation standards of such 
body or bodies within a reasonable time. 
(2) Any agreement entered into by the Secretary under this 
subchapter shall contain such terms and conditions (in addition to 
those imposed pursuant to section 8201(e) of this title and subsection 
(b)(1) of this section) as the Secretary deems necessary and 
appropriate to protect the interest of the United States. 
(c) If the Secretary, in accordance with such regulations as the 
Secretary shall prescribe, determines that any school established 
with assistance under this chapter- 
(1) is not accredited and fails to gain appropriate accreditation 
within a reasonable period of time; 
(2) is accredited but fails substantially to carry out the 
terms of the agreement entered into under this chapter; or 
(3) is no longer operated for the purpose for which such as
sistance was granted, 
the Secretary shall be entitled to recover from the recipient of 
assistance under this chapter the facilities of such school which were 
established with assistance under this chapter. In order to recover 
such facilities the Secretary may bring an action in the district 


1083 CH. 82-GRANTS TO HEALTH INSTITUTIONS Sec. 8222 

court of the United States for the district in which such facilities 
are situated. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1102, Sec. 
5073; amended Pub. L. 94-581, title I, Sec. 116(3), (4), title II, Sec. 
210(f)(3), Oct. 21, 1976, 90 Stat. 2854, 2865; Pub. L. 97-15, June 17, 
1981, 95 Stat. 99; Pub. L. 97-295, Sec. 4(95)(B), Oct. 12, 1982, 96 
Stat. 1313; Pub. L. 99-576, title VII, Sec. 702(16), Oct. 28, 1986, 
100 Stat. 3302; renumbered Sec. 8213 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(2)(B), (d)(1), May 7, 1991, 105 Stat. 239; Pub. L. 
102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8214. Limitations 

The Secretary may not use the authority under this subchapter 
to assist in the establishment of more than eight new medical 
schools. Such schools shall be located in geographically dispersed 
areas of the United States. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1104, Sec. 
5074; renumbered Sec. 8214, Pub. L. 102-40, title IV, Sec. 
402(b)(2)(B), May 7, 1991, 105 Stat. 239; amended Pub. L. 102-83, Sec. 
4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

SUBCHAPTER II-GRANTS TO AFFILIATED MEDICAL 
SCHOOLS 


ï¿½ 8221. Declaration of purpose 

The purpose of this subchapter is to authorize the Secretary to 
carry out a program of grants to medical schools which have maintained 
affiliations with the Department in order to assist such 
schools to expand and improve their training capacities and to 
cooperate with institutions of the types assisted under subchapter III 
of this chapter in carrying out the purposes of such subchapter. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1104, Sec. 
5081; renumbered Sec. 8221, Pub. L. 102-40, title IV, Sec. 402(b)(2)(C), 
May 7, 1991, 105 Stat. 
239; amended Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 
404, 405.) 

ï¿½ 8222. Authorization of appropriations 

(a) There is authorized to be appropriated for carrying out programs 
authorized under this chapter $50,000,000 for the fiscal year 
ending June 30, 1973; a like sum for each of the six succeeding fiscal 
years; $15,000,000 for the fiscal year ending September 30, 
1980; $25,000,000 for the fiscal year ending September 30, 1981; 
and $30,000,000 for the fiscal year ending September 30, 1982. 
(b) Sums appropriated pursuant to subsection (a) of this section shall 
remain available until the end of the sixth fiscal year following the 
fiscal year for which they are appropriated. 
(c) There is authorized to be appropriated for fiscal year 1979 
to carry out the programs authorized under this chapter such sums 
as may be necessary (1) to make to institutions with which the Secretary 
has entered into agreements under subchapter I of this 
chapter supplemental grants for which the Secretary had, before 
May 1, 1978, approved applications from such institutions, and (2) 
to meet fully the commitments made by the Secretary before May 
1, 1978, for grants and applications approved under authority of 
this subchapter and subchapters III and IV of this chapter, except 
that no funds appropriated under this subsection may be used for 
grants and applications approved under this subchapter and such 
subchapters III and IV until the full amounts for which applica

Sec. 8223 CH. 82-GRANTS TO HEALTH INSTITUTIONS 1084 

tions had been so approved have been obligated under such subchapter I. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1104, Sec. 
5082; amended Pub. L. 95-520, Sec. 7, Oct. 26, 1978, 92 Stat. 1822; 
Pub. L. 96-151, title I, Sec. 103(b)(1), Dec. 20, 1979, 93 Stat. 1093; 
renumbered Sec. 8222, Pub. L. 102-40, title IV, Sec. 402(b)(2)(C), 
May 7, 1991, 105 Stat. 239; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8223. Grants 

(a) Any medical school which is affiliated with the Department 
under an agreement entered into pursuant to this title may apply 
to the Secretary for a grant under this subchapter to assist such 
school, in part, to carry out, through the Department medical facility 
with which it is affiliated, projects and programs in furtherance 
of the purposes of this subchapter, except that no grant shall be 
made for the construction of any building which will not be located 
on land under the jurisdiction of the Secretary. Any such application 
shall contain such information in such detail as the Secretary 
deems necessary and appropriate. 
(b) An application for a grant under this section may be approved by 
the Secretary only upon the Secretaryï¿½s determination 
that- 
(1) the proposed projects and programs for which the grant 
will be made will make a significant contribution to improving 
the medical education (including continuing education) program of the 
school; 
(2) the application contains or is supported by adequate assurance that 
any Federal funds made available under this subchapter will be 
supplemented by funds or other resources 
available from other sources, whether public or private; 
(3) the application sets forth such fiscal control and accounting 
procedures as may be necessary to assure proper disbursement of, and 
accounting for, Federal funds expended 
under this subchapter; and 
(4) the application provides for making such reports, in 
such form and containing such information, as the Secretary 
may require to carry out the Secretaryï¿½s functions under this 
subchapter, and for keeping such records and for affording 
such access thereto as the Secretary may find necessary to assure the 
correctness and verification of such reports. 
(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1104, Sec. 
5083; amended Pub. L. 94-581, title II, Sec. 207, 210(f)(4), Oct. 21, 
1976, 90 Stat. 2860, 2865; Pub. L. 96-151, title I, Sec. 103(b)(2), 
Dec. 20, 1979, 93 Stat. 1093; renumbered Sec. 8223, Pub. L. 102-40, 
title IV, Sec. 402(b)(2)(C), May 7, 1991, 105 Stat. 239; Pub. L. 102- 
83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.) 

1085 CH. 82-GRANTS TO HEALTH INSTITUTIONS Sec. 8233 

SUBCHAPTER III-ASSISTANCE TO PUBLIC AND NONPROFIT INSTITUTIONS OF 
HIGHER LEARNING, HOSPITALS AND OTHER HEALTH MANPOWER INSTITUTIONS 
AFFILIATED WITH THE DEPARTMENT TO INCREASE THE 
PRODUCTION OF PROFESSIONAL AND OTHER HEALTH 
PERSONNEL 

ï¿½ 8231. Declaration of purpose 

The purpose of this subchapter is to authorize the Secretary to 
carry out a program of grants to provide assistance in the 
establishment of cooperative arrangements among universities, colleges, 
junior colleges, community colleges, schools of allied health 
professions, State and local systems of education, hospitals, and other 
nonprofit health manpower institutions affiliated with the Department, 
designed to coordinate, improve, and expand the training of 
professional and technical allied health and paramedical personnel, 
and to assist in developing and evaluating new health careers, 
interdisciplinary approaches and career advancement opportunities, so 
as to improve and expand allied and other health manpower utilization. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1105, Sec. 
5091; renumbered Sec. 8231, Pub. L. 102-40, title IV, Sec. 
402(b)(2)(D), May 7, 1991, 105 Stat. 239; amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 
404, 405.) 

ï¿½ 8232. Definition 

For the purpose of this subchapter, the term ï¿½ï¿½eligible institutionï¿½ï¿½ 
means any nonprofit educational facility or other public or 
nonprofit institution, including universities, colleges, junior 
colleges, community colleges, schools of allied health professions, 
State and local systems of education, hospitals, and other nonprofit 
health manpower institutions for the training or education of allied 
health or other health personnel affiliated with the Department for 
the conduct of or the providing of guidance for education and training 
programs for health manpower. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1105, Sec. 
5092; renumbered Sec. 8232, Pub. L. 102-40, title IV, Sec. 
402(b)(2)(D), May 7, 1991, 105 Stat. 239; amended Pub. L. 102-83, 
Sec. 4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404.) 

ï¿½ 8233. Grants 

(a) Any eligible institution may apply to the Secretary for a 
grant under this subchapter to assist such institution to carry out 
through the Department medical facility with which it is, or will 
become affiliated, educational and clinical projects and programs, 
matching the clinical requirements of the facility to the health 
manpower training potential of the eligible institution, for the 
expansion and improvement of such institutionï¿½s capacity to train 
health manpower, including physiciansï¿½ assistants, nurse practitioners, 
and other new types of health personnel in furtherance of 
the purposes of this subchapter. Any such application shall contain 
a plan to carry out such projects and programs and such other 
information in such detail as the Secretary deems necessary and 
appropriate. 

Sec. 8241 CH. 82-GRANTS TO HEALTH INSTITUTIONS 1086 

(b) An application for a grant under this section may be approved by 
the Secretary only upon the Secretaryï¿½s determination 
that- 
(1) the proposed projects and programs for which the grant 
will be made will make a significant contribution to improving 
the education (including continuing education) or training program of 
the eligible institution; 
(2) the application contains or is supported by adequate assurance that 
any Federal funds made available under this subchapter will be 
supplemented by funds or other resources 
available from other sources, whether public or private; 
(3) the application sets forth such fiscal control and accounting 
procedures as may be necessary to assure proper disbursement of, and 
accounting for, Federal funds expended 
under this subchapter; and 
(4) the application provides for making such reports, in 
such form and containing such information, as the Secretary 
may require to carry out the Secretaryï¿½s functions under this 
subchapter, and for keeping such records and for affording 
such access thereto as the Secretary may find necessary to assure the 
correctness and verification of such reports. 
(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1106, Sec. 
5093; amended Pub. L. 94-581, title II, Sec. 210(f)(5), Oct. 21, 1976, 90 
Stat. 2866; Pub. L. 96-330, title IV, Sec. 405, Aug. 26, 1980, 94 Stat. 
1052; renumbered Sec. 8233, Pub. L. 102-40, title IV, Sec. 
402(b)(2)(D), May 7, 1991, 105 Stat. 239; Pub. L. 102-83, Sec. 
4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

SUBCHAPTER IV-EXPANSION OF DEPARTMENT HOSPITAL 
EDUCATION AND TRAINING CAPACITY 

ï¿½ 8241. Expenditures to remodel and make special alloca

tions to Department hospitals for health manpower

education and training 

Out of funds appropriated to the Department pursuant to the 
authorization in section 8222 of this title, the Secretary may expend 
such sums as the Secretary deems necessary, not to exceed 
30 per centum thereof, for (1) the necessary extension, expansion, 
alteration, improvement, remodeling, or repair of Department 
buildings and structures (including provision of initial equipment, 
replacement of obsolete or worn-out equipment, and, where necessary, 
addition of classrooms, lecture facilities, laboratories, and 
other teaching facilities) to the extent necessary to make them 
suitable for use for health manpower education and training in order 
to carry out the purpose set forth in section 7302, and (2) special 
allocations to Department hospitals and other medical facilities for 
the development or initiation of improved methods of education and 
training which may include the development or initiation of plans 
which reduce the period of required education and training for 
health personnel but which do not adversely affect the quality of 
such education or training. 

(Added Pub. L. 92-541, Sec. 2(a), Oct. 24, 1972, 86 Stat. 1106, Sec. 
5096; amended Pub. L. 94-581, title II, Sec. 210(f)(6), Oct. 21, 1976, 
90 Stat. 2866; renumbered Sec. 8241 and amended Pub. L. 102-40, 
title IV, Sec. 402(b)(2)(E), (d)(1), 403(b)(7), May 7, 1991, 105 Stat. 
239, 240; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 405.) 


CHAPTER 83 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


1087 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART VI-ACQUISITION AND DISPOSITION OF 
PROPERTYï¿½ 

CHAPTER 83-ACCEPTANCE OF GIFTS AND BEQUESTS 

Sec. 
8301. Authority to accept gifts, devises, and bequests. 
8302. Legal proceedings. 
8303. Restricted gifts. 
8304. Disposition of property. 
8305. Savings provision.


ï¿½ 8301. Authority to accept gifts, devises, and bequests 

The Secretary may accept devises, bequests, and gifts, made in 
any manner, with respect to which the testator or donor shall have 
indicated the intention that such property shall be for the benefit 
of groups of persons formerly in the active military, naval, or air 
service who by virtue of such service alone, or disability suffered 
therein or therefrom, are or shall be patients or members of any 
one or more hospitals or homes operated by the United States 
Government, or has indicated the intention that such property shall be 
for the benefit of any such hospital or home, or shall be paid or 
delivered to any official, as such, or any agency in administrative 
control thereof. The Secretary may also accept, for use in carrying out 
all laws administered by the Secretary, gifts, devises, and bequests 
which will enhance the Secretaryï¿½s ability to provide services or 
benefits. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1254, Sec. 5101; Pub. L. 
99-576, title VII, Sec. 701(89), Oct. 28, 1986, 100 Stat. 3299; 
renumbered Sec. 8301, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 405; Pub. L. 102-86, title V, Sec. 504, Aug. 14, 
1991, 105 Stat. 426.) 

ï¿½ 8302. Legal proceedings 

For the purpose of acquiring title to and possession of any 
property which the Secretary is by this chapter authorized to accept, 
the Secretary may initiate and appear in any appropriate 
legal proceedings, and take such steps therein or in connection 
therewith as in the Secretaryï¿½s discretion may be desirable and 
appropriate to reduce said property to possession. The Secretary may 
incur such expenses incident to such proceedings as the Secretary 
deems necessary or appropriate, which shall be paid as are other 
administrative expenses of the Department. All funds received by 
devise, bequest, gift, or otherwise, for the purposes contemplated in 
this chapter, including net proceeds of sales authorized by this 
chapter, shall be deposited with the Treasurer of the United States 
to the credit of the General Post Fund. 

1089 


Sec. 8303 CH. 83-ACCEPTANCE OF GIFTS AND BEQUESTS 1090 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1254, Sec. 5102; Pub. L. 
99-576, title VII, Sec. 701(90), Oct. 28, 1986, 100 Stat. 3299; 
renumbered Sec. 8302, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), 
Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8303. Restricted gifts 

Disbursements from the General Post Fund shall be made on 
orders by and within the discretion of the Secretary and in the 
manner prescribed in section 8523 of this title; except that (1) if 
the testator or donor has directed or shall direct that the devise, 
bequest, or gift be devoted to a particular use authorized by this 
chapter, the same, less expenses incurred, or the net proceeds 
thereof, shall be used or disbursed as directed, except that a 
precatory direction shall be fulfilled only insofar as may be proper or 
practicable; and (2) if the testator or donor shall have indicated the 
desire that the devise, bequest, or gift shall be for the benefit of 
persons in hospitals or homes, or other institutions operated by the 
United States but under the jurisdiction of an official other than 
the Secretary, the same, less expenses incurred, or the net proceeds 
thereof which may come into possession of the Secretary, shall be 
disbursed by transfer to the governing authorities of such institution, 
or otherwise, in such manner as the Secretary may determine, 
for the benefit of the persons in the institution indicated by the 
testator or donor, for proper purposes, as nearly as practicable in 
conformity with such desire of the testator or donor. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1255, Sec. 5103; Pub. L. 
99-576, title VII, Sec. 701(91), Oct. 28, 1986, 100 Stat. 3299; 
renumbered Sec. 8303 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, 
Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 
ï¿½ 8304. Disposition of property 

If the Secretary receives any property other than moneys as 
contemplated by this chapter, the Secretary is authorized in the 
Secretaryï¿½s discretion to sell, assign, transfer, and convey the 
same, 
or any interest therein claimed by virtue of such devise, bequest, 
or gift, for such price and upon such terms as the Secretary deems 
advantageous (including consent to partition of realty and compromise 
of contested claim of title) and the Secretaryï¿½s assignment, 
deed, or other conveyance of any such property, executed in the 
name and on behalf of the United States, shall be valid to pass to 
the purchaser thereof such title to said property as the United 
States, beneficially or as trustee of the General Post Fund, may 
have by virtue of any such devise, bequest, or gift, and the 
proceedings incident thereto, subject to the conditions, limitations, 
and provisions of the instruments so executed by the Secretary. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1255, Sec. 5104; Pub. L. 
99-576, title VII, Sec. 701(92), Oct. 28, 1986, 100 Stat. 3299; 
renumbered Sec. 8304, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8305. Savings provision 

(a) Nothing contained in this chapter shall be construed to repeal 
or modify any law authorizing the acceptance of devises, bequests, 
or gifts to the United States for their own use and benefit 
or for any particular purpose specified by the donors or testators. 

1091 CH. 83-ACCEPTANCE OF GIFTS AND BEQUESTS Sec. 8305 

(b) Whenever the United States receives property and it appears that 
it is, or shall have been, the intention of the testator or 
donor that such devise, bequest, or gift be for the benefit of those 
persons described in section 8301 of this title, or any particular 
hospital or other institution operated primarily for their benefit, 
such property or the proceeds thereof shall be credited to the General 
Post Fund, and shall be used or disbursed in accordance with 
the provisions of this chapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1255, Sec. 5105; renumbered 
Sec. 8305 and 
amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 
105 Stat. 238, 
239.) 


CHAPTER 85 OF TITLE 38, UNITED STATES CODE
[As Amended Through P.L. 111-5, Enacted February 17, 2009]


1093 


ï¿½TITLE 38-VETERANSï¿½ BENEFITSï¿½ 

ï¿½PART VI-ACQUISITION AND DISPOSITION OF 
PROPERTYï¿½


CHAPTER 85-DISPOSITION OF DECEASED VETERANSï¿½ 
PERSONAL PROPERTY


SUBCHAPTER I-PROPERTY LEFT ON DEPARTMENT FACILITY 

Sec. 
8501. Vesting of property left by decedents. 
8502. Disposition of unclaimed personal property. 
8503. Notice of provisions of this subchapter.
8504. Disposition of other unclaimed property. 
8505. Sale or other disposition of property. 
8506. Notice of sale. 
8507. Payment of small shipping charges. 
8508. Relinquishment of Federal jurisdiction. 
8509. Definitions. 
8510. Finality of decisions. 


SUBCHAPTER II-DEATH WHILE PATIENT OF DEPARTMENT FACILITY 

8520. Vesting of property left by decedents.
8521. Presumption of contract for disposition of personalty. 
8522. Sale of assets accruing to the Fund. 
8523. Disbursements from the Fund. 
8524. Disposal of remaining assets. 
8525. Court actions. 
8526. Filing of claims for assets.
8527. Notice of provisions of subchapter. 
8528. Investment of the Fund.


SUBCHAPTER I-PROPERTY LEFT ON DEPARTMENT 
FACILITY 


ï¿½ 8501. Vesting of property left by decedents 

(a) Personal property left by any decedent upon premises used 
as a Department facility, which premises are subject to the exclusive 
legislative jurisdiction of the United States and are within the 
exterior boundaries of any State or dependency of the United 
States, shall vest and be disposed of as provided in this subchapter, 
except that- 
(1) if such person died leaving a last will and testament 
probated under the laws of the place of such personï¿½s domicile 
or under the laws of the State or dependency of the United 
States within the exterior boundaries of which such premises 
or a part thereof may be, the personal property of such decedent 
situated upon such premises shall vest in the person or 
persons entitled thereto under the provisions of such last will 
and testament; and 
(2) if such person died leaving any such property not disposed of by 
a last will and testament probated in accord with 
1095 


Sec. 8502 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY 1096 

the provisions of paragraph (1) such property shall vest in the 
persons entitled to take such property by inheritance under 
and upon the conditions provided by the law of the decedentï¿½s 
domicile. This paragraph shall not apply to property to which 
the United States is entitled except where such title is divested 
out of the United States. 

(b) Any officer or employee of the United States in possession 
of any such property may deliver same to the executor (or the 
administrator with will annexed) who shall have qualified in either 
jurisdiction as provided in subsection (a)(1); or if none such then 
to the domiciliary administrator or to any other qualified 
administrator who shall demand such property. When delivery shall have 
been made to any such executor or administrator in accordance 
with this subsection, neither the United States nor any officer or 
employee thereof shall be liable therefor. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1256, Sec. 5201; Pub. L. 
99-576, title VII, Sec. 701(93), Oct. 28, 1986, 100 Stat. 3299; 
renumbered Sec. 8501, Pub. L. 102-40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
Aug. 6, 1991, 105 Stat. 404.) 

ï¿½ 8502. Disposition of unclaimed personal property 

(a) Notwithstanding the provisions of section 8501 of this title, 
the Secretary may dispose of the personal property of such decedent 
left or found upon such premises as hereafter provided in this 
subchapter. 
(b) If any veteran (admitted as a veteran), or a dependent or 
survivor of a veteran receiving care under the penultimate sentence 
of section 1781(b) of this title, upon such personï¿½s last admission 
to, or during such personï¿½s last period of maintenance in, a Department 
facility, has personal property situated on such facility and 
shall have designated in writing a person (natural or corporate) to 
receive such property when such veteran, dependent or survivor 
dies, the Secretary or employee of the Department authorized by 
the Secretary so to act, may transfer possession of such personal 
property to the person so designated. If there exists no person so 
designated by such veteran, dependent, or survivor or if the one so 
designated declines to receive such property, or failed to request 
such property within ninety days after the Department mails to 
such designate a notice of death and of the fact of such designation, 
a description of the property, and an estimate of transportation 
cost, which shall be paid by such designate if required under the 
regulations hereinafter mentioned, or if the Secretary declines to 
transfer possession to such designate, possession of such property 
may in the discretion of the Secretary or the Secretaryï¿½s designated 
subordinate, be transferred to the following persons in the order 
and manner herein specified unless the parties otherwise agree in 
writing delivered to the Department, namely, executor or administrator, 
or if no notice of appointment received, to the spouse, children, 
grandchildren, parents, grandparents, siblings of the veteran. 
If claim is made by two or more such relatives having equal priorities, 
as hereinabove prescribed, or if there are conflicting claims 
the Secretary or the Secretaryï¿½s designee may in such case deliver 
the property either jointly or separately in equal values, to those 
equally entitled thereto or may make delivery as may be agreed 

1097 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY Sec. 8503 

upon by those entitled, or may in the discretion of the Secretary 
or the Secretaryï¿½s designee withhold delivery from them and require the 
qualification of an administrator or executor of the veteransï¿½ estate 
and thereupon make delivery to such. 

(c) If the property of any decedent is not so delivered or 
claimed and accepted the Secretary or the Secretaryï¿½s designee may 
dispose of such property by public or private sale in accordance 
with the provisions of this subchapter and regulations prescribed 
by the Secretary. 
(d) All sales authorized by this subchapter shall be for cash 
upon delivery at the premises where sold and without warranty, 
express or implied. The proceeds of such sales after payment of any 
expenses incident thereto as may be prescribed by regulations, together 
with any other moneys left or found on a facility, not disposed of in 
accordance with this subchapter, shall be credited to 
the General Post Fund, National Homes, Department of Veterans 
Affairs, a trust fund provided for in section 1321(a)(45) of title 31. 
In addition to the purposes for which such fund may be used under 
the existing law, disbursements may be made therefrom as authorized by 
the Secretary by regulation or otherwise for the purpose of 
satisfying any legal liability incurred by any employee in administering 
the provisions of this subchapter, including any expense incurred in 
connection therewith. Legal liability shall not exist when 
delivery or sale shall have been made in accordance with this subchapter. 
(e) If, notwithstanding such sale, a claim is filed with the Secretary 
within five years after notice of sale as herein required, by 
or on behalf of any person or persons who if known would have 
been entitled to the property under section 8501 of this title or to 
possession thereof under this section, the Secretary shall determine 
the person or persons entitled under the provisions of this subchapter 
and may pay to such person or persons so entitled the proceeds of sale 
of such property, less expenses. Such payment shall 
be made out of the said trust fund, and in accord with the provisions 
of this section or section 8501 of this title. Persons under 
legal disability to sue in their own name may make claim for the 
proceeds of sale of such property at any time within five years after 
termination of such legal disability. 
(f) Any such property, the sale of which is authorized under 
this subchapter and which remains unsold, may be used, destroyed, 
or otherwise disposed of in accordance with regulations promulgated by 
the Secretary. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1257, Sec. 5202; Pub. L. 
94-581, title II, Sec. 208(a), Oct. 21, 1976, 90 Stat. 2860; Pub. L. 
97-258, Sec. 3(k)(9), Sept. 13, 1982, 96 Stat. 1066; Pub. L. 99-576, 
title VII, Sec. 701(94), Oct. 28, 1986, 100 Stat. 3299; renumbered Sec. 
8502 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, Sec. 14(f)(11), 
June 13, 1991, 105 Stat. 288; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 
103-446, title XII, Sec. 1201(i)(11), Nov. 2, 1994, 108 Stat. 4689; 
Pub. L. 107-135, title II, Sec. 208(e)(9), Jan. 23, 2002, 115 Stat. 
2464.) 

ï¿½ 8503. Notice of provisions of this subchapter 

All persons having or bringing personal property on the premises of a 
Department facility shall be given reasonable notice of the 
provisions of this subchapter. In case of a mentally incompetent 


Sec. 8504 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY 1098 

person, notice hereof shall be given the guardian or other person 
having custody or control of such person or, if none, to such personï¿½s 
nearest relative if known. The admission to or continued maintenance in 
such facility after reasonable notice of the provisions of this 
subchapter shall constitute consent to the provisions 
hereof. The death of any person on any such facility or the leaving 
of property thereon shall be prima facie evidence of a valid agreement 
for the disposition of such property in accordance with the 
provisions of this subchapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1258, Sec. 5203; Pub. L. 
99-576, title VII, Sec. 701(95), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8503, Pub. L. 102-40,title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
Aug. 6, 1991, 105 Stat. 404.) 

ï¿½ 8504. Disposition of other unclaimed property 

Any other unclaimed property found on the premises under the 
control of the Department shall be stored by the officer in charge 
of such premises and may be sold, used, destroyed, or otherwise 
disposed of in accordance with regulations promulgated by the Secretary 
if the owner thereof fails to claim same within ninety days. 
If undisposed of, the same may be reclaimed by the owner, such 
personï¿½s personal representative or next of kin, upon payment of 
reasonable storage charges prescribed by regulations. If sold, the 
net proceeds thereof shall be credited to said post fund to be expended 
as other assets of such fund. The person who was entitled 
to such property, or such personï¿½s legal representative, or assignee, 
shall be paid the proceeds of sale thereof, less expenses if claim 
therefor be made within five years from the date of finding. If the 
owner shall have died intestate without creditors or next of kin 
surviving, such proceeds shall not be paid to such personï¿½s legal 
representative. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1258, Sec. 5204; Pub. L. 
99-576, title VII, Sec. 701(96), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8504, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8505. Sale or other disposition of property 

Any unclaimed personal property as described in section 8502 
of this title of veterans who have heretofore died or who may hereafter 
die while maintained as such in a Department facility, and also any 
unclaimed property heretofore or hereafter found or situated in such 
facility, may be sold, used, destroyed, or otherwise disposed of in 
accordance with this subchapter, and subject to regulations promulgated 
by the Secretary pursuant hereto; and the net proceeds of sale thereof 
shall be credited and be subject to disbursement as provided in this 
subchapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1258, Sec. 5205; renumbered 
Sec. 8505 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8506. Notice of sale 

At least ninety days before any sale pursuant to this subchapter, 
written or printed notice thereof describing the property to 
be sold shall be mailed to the owner of the property or, if deceased, 
to the ownerï¿½s executor or administrator, or to the nearest kin, if 


1099 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY Sec. 8509 

any such appear by the records of the Department. If none such appears 
from said records, similar notice shall be posted at the facility where 
the death occurred or property shall have been found (if 
in existence) and at the place where such property is situated at 
the time of such notice, and also at the place where probate notices 
are posted in the county wherein the sale is to be had. The person 
posting such notice shall make an affidavit setting forth the time 
and place of such posting and attaching thereto a copy of such notice, 
and such affidavit shall be prima facie evidence of such posting and 
admissible in evidence as proof of the same. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1258, Sec. 5206; Pub. L. 
99-576, title VII, Sec. 701(97), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8506, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 
Aug. 6, 1991, 105 Stat. 404.) 

ï¿½ 8507. Payment of small shipping charges 

Upon receipt of a proper claim for such property under the provisions of 
this subchapter the Secretary is hereby authorized, in 
the Secretaryï¿½s discretion and in accordance with regulations prescribed 
by the Secretary, to pay mailing or shipping charges not to 
exceed $25 in the case of each deceased veteran as hereinabove defined. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1259, Sec. 5207; Pub. L. 
99-576, title VII, Sec. 701(98), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8507, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 405.) 

ï¿½ 8508. Relinquishment of Federal jurisdiction 

Subject to the provisions of this subchapter and to the extent 
necessary to effectuate the purposes of this subchapter, there is 
hereby relinquished to the respective State or dependency of the 
United States such jurisdiction pertaining to the administration of 
estates of decedents as may have been ceded to the United States 
by said State or dependency of the United States respecting the 
Federal reservation on which is situated any Department facility 
while such facility is operated by the Department; such jurisdiction 
with respect to any such property on any such reservation to be to 
the same extent as if such premises had not been ceded to the 
United States. Nothing in this section shall be construed to deprive 
any State or dependency of the United States of any jurisdiction 
which it now has nor to give any State, possession, or dependency 
of the United States authority over any Federal official as such on 
such premises or otherwise. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1259, Sec. 5208; renumbered 
Sec. 8508, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; 
Pub. L. 102-83, Sec. 
4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404.) 
ï¿½ 8509. Definitions 

The term ï¿½ï¿½facilityï¿½ï¿½ or ï¿½ï¿½Department facilityï¿½ï¿½ as used in this 
subchapter means those facilities over which the Department has direct 
and exclusive administrative jurisdiction, including hospitals 
or other facilities on property owned or leased by the United States 
while operated by the Department. 


Sec. 8510 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY 1100 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1259, Sec. 5209; renumbered 
Sec. 8509, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 
4(a)(3), (4), Aug. 6, 1991, 105 Stat. 404.) 
ï¿½ 8510. Finality of decisions 

Decisions by the Secretary under this subchapter shall not be 
reviewable administratively by any other officer of the United 
States. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1259, Sec. 5210; renumbered 
Sec. 8510, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 
Stat. 404, 405.) 


SUBCHAPTER II-DEATH WHILE PATIENT OF DEPARTMENT 
FACILITY 

ï¿½ 8520. Vesting of property left by decedents 

(a) Whenever any veteran (admitted as a veteran), or a dependent or 
survivor of a veteran receiving care under the penultimate sentence of 
section 1781(b) of this title, shall die while a member or patient in 
any facility, or any hospital while being furnished care or treatment 
therein by the Department, and shall not leave any surviving spouse, 
next of kin, or heirs entitled, under the 
laws of the decedentï¿½s domicile, to the decedentï¿½s personal property 
as to which such person dies intestate, all such property, including 
money and choses in action, owned by such person at the time of 
death and not disposed of by will or otherwise, shall immediately 
vest in and become the property of the United States as trustee for 
the sole use and benefit of the General Post Fund (hereinafter in 
this subchapter referred to as the ï¿½ï¿½Fundï¿½ï¿½), a trust fund prescribed 
by section 1321(a)(45) of title 31. 
(b) The provisions of subsection (a) are conditions precedent to 
the initial, and also to the further furnishing of care or treatment 
by the Department in a facility or hospital. The acceptance and the 
continued acceptance of care or treatment by any veteran (admitted 
as a veteran to a Department facility or hospital) shall constitute 
an acceptance of the provisions and conditions of this subchapter 
and have the effect of an assignment, effective at such personï¿½s 
death, of such assets in accordance with and subject to the provisions 
of this subchapter and regulations issued in accordance with 
this subchapter. 
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1259, Sec. 5220; Pub. L. 
94-581, title II, Sec. 208(b), Oct. 21, 1976, 90 Stat. 2860; Pub. L. 
97-258, Sec. 3(k)(9), Sept. 13, 1982, 96 Stat. 1066; Pub. L. 99-576, 
title VII, Sec. 701(99), Oct. 28, 1986, 100 Stat. 3300; renumbered Sec. 
8520, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 
Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), (4), 5(c)(1), Aug. 6, 1991, 
105 Stat. 404, 406; Pub. L. 107-14, Sec. 8(a)(16), June 5, 2001, 115 
Stat. 35; Pub. L. 107-135, title II, 
Sec. 208(e)(9), Jan. 23, 2002, 115 Stat. 2464.) 

ï¿½ 8521. Presumption of contract for disposition of personalty 

The fact of death of a veteran (admitted as such), or a dependent or 
survivor of a veteran receiving care under the penultimate 
sentence of section 1781(b) of this title, in a facility or hospital, 
while being furnished care or treatment therein by the Department, 
leaving no spouse, next of kin, or heirs, shall give rise to a 
conclusive presumption of a valid contract for the disposition in 
accordance with this subchapter, but subject to its conditions, of all 


1101 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY Sec. 8523 

property described in section 8520 of this title owned by said decedent 
at death and as to which such person dies intestate. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1260, Sec. 5221; Pub. L. 
94-581, title II, Sec. 208(c), Oct. 21, 1976, 90 Stat. 2860; Pub. L. 
99-576, title VII, Sec. 701(100), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8521 and amended Pub. L. 102-40, title IV, Sec. 
402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 
4(a)(3), (4), 5(c)(1), Aug. 6, 1991, 105 Stat. 404, 406; Pub. L. 
107-135, title II, Sec. 208(e)(9), Jan. 23, 2002, 115 Stat. 2464.) 

ï¿½ 8522. Sale of assets accruing to the Fund 

Any assets heretofore or hereafter accruing to the benefit of 
the Fund, other than money, but including jewelry and other personal 
effects, may be sold at the times and places and in the manner 
prescribed by regulations issued by the Secretary. Upon receipt 
of the purchase price the Secretary is authorized to deliver at the 
place of sale, said property sold, and upon request to execute and 
deliver appropriate assignments or other conveyances thereof in 
the name of the United States, which shall pass to the purchaser 
such title as decedent had at date of death. The net proceeds after 
paying any proper sales expense as determined by the Secretary 
shall forthwith be paid to the Treasurer of the United States to the 
credit of the Fund; and may be disbursed as are other moneys in 
the Fund by the Division of Disbursements, Treasury Department, 
upon order of said Secretary. Articles of personal adornment which 
are obviously of sentimental value, shall be retained and not sold 
or otherwise disposed of until the expiration of five years from the 
date of death of the veteran, without a claim therefor, unless for 
sanitary or other proper reasons it is deemed unsafe to retain 
same, in which event they may be destroyed forthwith. Any other 
articles coming into possession of the Secretary or the Secretaryï¿½s 
representative by virtue of this subchapter which, under regulations 
promulgated by the Secretary, are determined to be unsalable 
may be destroyed forthwith or at the time prescribed by regulations, 
or may be used for the purposes for which disbursements 
might properly be made from the Fund, or if not usable, otherwise 
disposed of in accordance with regulations. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1260, Sec. 5222; Pub. L. 
99-576, title VII, Sec. 701(101), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8522, Pub. L. 102- 40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), 
(2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8523. Disbursements from the Fund 

Disbursements from the Fund shall be made by the Division 
of Disbursements, Treasury Department, upon the order and within the 
discretion of the Secretary for the benefit of members and 
patients while being supplied care or treatment by the Department 
in any facility or hospital. The authority contained in the preceding 
sentence is not limited to facilities or hospitals under direct 
administrative control of the Department. There shall be paid out of the 
assets of the decedent so far as may be the valid claims of creditors 
against the decedentï¿½s estate that would be legally payable therefrom 
in the absence of this subchapter and without the benefit of 
any exemption statute, and which may be presented to the Department 
within one year from the date of death, or within the time, 
to the person, and in the manner required or permitted by the law 


Sec. 8524 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY 1102 

of the State wherein administration, if any, is had upon the estate 
of the deceased veteran; and also the proper expenses and costs of 
administration, if any. If the decedentï¿½s estate is insolvent the 
distribution to creditors shall be in accordance with the laws of the 
decedentï¿½s domicile, and the preferences and priorities prescribed 
thereby shall govern, subject to any applicable law of the United 
States. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1260, Sec. 5223; Pub. L. 
99-576, title VII, Sec. 701(102), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8523, Pub. L. 102- 40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), 
(4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8524. Disposal of remaining assets 

The remainder of such assets or their proceeds shall become 
assets of the United States as trustee for the Fund and disposed 
of in accordance with this subchapter. If there is administration 
upon the decedentï¿½s estate such assets, other than money, upon 
claim therefor within the time required by law, shall be delivered 
by the administrator of the estate to the Secretary or the Secretaryï¿½s 
authorized representative, as upon final distribution; and 
upon the same claim there shall be paid to the Treasurer of the 
United States for credit to the Fund any such money, available for 
final distribution. In the absence of administration, any money, 
chose in action, or other property of the deceased veteran held by 
any person shall be paid or transferred to the Secretary upon demand 
by the Secretary or the Secretaryï¿½s duly authorized representative, 
who shall deliver itemized receipt therefor. Such payment or transfer 
shall constitute a complete acquittance of the transferor with respect 
to any claims by any administrator, creditor, or next of kin of 
such decedent. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1261, Sec. 5224; Pub. L. 
99-576, title VII, Sec. 701(103), Oct. 28, 1986, 100 Stat. 3300; 
renumbered Sec. 8524, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 
1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 
1991, 105 Stat. 404, 405.) 

ï¿½ 8525. Court actions 

If necessary to obtain such assets the Secretary, through the 
Secretaryï¿½s authorized attorneys, may bring and prosecute appropriate 
actions at law or other legal proceedings, the costs and expenses 
thereof to be paid as are other administrative expenses of 
the Department. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1261, Sec. 5225; Pub. L. 
99-576, title VII, Sec. 701(104), Oct. 28, 1986, 100 Stat. 3301; 
renumbered Sec. 8525, Pub. L. 102- 40, title IV, Sec. 402(b)(1), 
May 7, 1991, 105 Stat. 238; Pub. L. 102-83, Sec. 4(a)(3), 
(4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8526. Filing of claims for assets 

Notwithstanding the crediting to said Fund of the assets, or 
proceeds thereof, of any decedent, whether upon determination by 
a court or the Department pursuant to the provisions of section 
8520 of this title, any person claiming a right to such assets may 
within five years after the death of the decedent file a claim on 
behalf of such person and any other claiming with the Secretary. 
Upon receipt of due proof that any person was at date of death of 
the veteran entitled to the veteranï¿½s personal property, or a part 


1103 CH. 85-DECEASED VETERANSï¿½ PERSONAL PROPERTY Sec. 8528 

thereof, under the laws of the State of domicile of the decedent, the 
Secretary may pay out of the Fund, but not to exceed the net 
amount credited thereto from said decedentï¿½s estate less any necessary 
expenses, the amount to which such person, or persons, was 
or were so entitled, and upon similar claim any assets of the decedent 
which shall not have been disposed of shall be delivered in 
kind to the parties legally entitled thereto. If any person so entitled 
is under legal disability at the date of death of such decedent, such 
five-year period of limitation shall run from the termination or 
removal of legal disability. In the event of doubt as to entitlement, 
the Secretary may cause administration or other appropriate 
proceedings to be instituted in any court having jurisdiction. In 
determining questions of fact or law involved in the adjudication of 
claims made under this section, no judgment, decree, or order entered 
in any action at law, suit in equity, or other legal proceeding 
of any character purporting to determine entitlement to said assets 
or any part thereof, shall be binding upon the United States or the 
Secretary or determinative of any fact or question involving 
entitlement to any such property or the proceeds thereof, or any part of 
the Fund, unless the Secretary has been seasonably served with 
notice and permitted to become a party to such suit or proceeding 
if the Secretary makes a request therefor within thirty days after 
such notice. Notice may be served in person or by registered mail 
or by certified mail upon the Secretary, or upon the Secretaryï¿½s 
authorized attorney in the State wherein the action or proceedings 
may be pending. Notice may be waived by the Secretary or by the 
Secretaryï¿½s authorized attorney, in which event the finding, judgment, 
or decree shall have the same effect as if the Secretary were 
a party and served with notice. Any necessary court costs or expenses 
if authorized by the Secretary may be paid as are other administrative 
expenses of the Department. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1261, Sec. 5226; Pub. L. 
86-507, Sec. 1(33), June 11, 1960, 74 Stat. 202; Pub. L. 99-576, title 
VII, Sec. 701(105), Oct. 28, 1986, 100 Stat. 3301; renumbered Sec. 8526 
and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May 7, 
1991, 105 Stat. 238, 239; Pub. L. 102-83, Sec. 4(a)(3), (4), 
(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 

ï¿½ 8527. Notice of provisions of subchapter 

The Secretary shall prescribe a form of application for hospital 
treatment and domiciliary care which shall include notice of the 
provisions of this subchapter. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1262, Sec. 5227; renumbered 
Sec. 8527, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. 
L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) 
ï¿½ 8528. Investment of the Fund 

Money in the Fund not required for current disbursements 
may be invested and reinvested by the Secretary of the Treasury 
in interest-bearing obligations of the United States or in obligations 
guaranteed as to both principal and interest by the United 
States. 

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1262, Sec. 5228; renumbered 
Sec. 8528, Pub. 

L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238.) 

SERVICEMEMBERS CIVIL RELIEF ACT



For changes after the closing date of this compilation (February 1, 
2006) to any section of the Servicemembers Civil Relief 
Act, see the United States Code reference for that section (50 

U.S.C. App. 5xx) in the United States Code Classification Tables 
published by the Office of the Law Revision Counsel of the House 
of Representatives at http://uscode.house.gov/classification/tables.shtml. 

SERVICEMEMBERS CIVIL RELIEF ACT 1 

[As Amended Through P.L. 110-389, Enacted October 10, 2008] 

AN ACT to promote and strengthen the national defense by suspending 
enforcement 
of certain civil liabilities of certain persons serving in the Military 
and Naval Establishments, including the Coast Guard. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SECTION 1. [50 U.S.C. App. 501] SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.-This Act may be cited as the 
ï¿½ï¿½Servicemembers Civil Relief Actï¿½ï¿½. 
(b) TABLE OF CONTENTS.-The table of contents of this Act is 
as follows: 
Sec. 1. [50 U.S.C. App. 501] Short title; table of contents. 
Sec. 2. [50 U.S.C. App. 502] Purpose. 

TITLE I-GENERAL PROVISIONS 

Sec. 101. [50 U.S.C. App. 511] Definitions. 

Sec. 102. [50 U.S.C. App. 512] Jurisdiction and applicability of act. 

Sec. 103. [50 U.S.C. App. 513] Protection of persons secondarily liable. 

Sec. 104. [50 U.S.C. App. 514] Extension of protections to citizens 
serving with 
allied forces. 

Sec. 105. [50 U.S.C. App. 515] Notification of benefits. 

Sec. 106. [50 U.S.C. App. 516] Extension of rights and protections to 
Reserves ordered to report for military service and to persons ordered to 
report for 
induction. 

Sec. 107. [50 U.S.C. App. 517] Waiver of rights pursuant to written 
agreement. 

Sec. 108. [50 U.S.C. App. 518] Exercise of rights under Act not to affect 
certain 
future financial transactions. 

Sec. 109. [50 U.S.C. App. 519] Legal representatives. 

TITLE II-GENERAL RELIEF 

Sec. 201. [50 U.S.C. App. 521] Protection of servicemembers against 
default judgments. 

Sec. 202. [50 U.S.C. App. 522] Stay of proceedings when servicemember 
has notice. 

Sec. 203. [50 U.S.C. App. 523] Fines and penalties under contracts. 

Sec. 204. [50 U.S.C. App. 524] Stay or vacation of execution of 
judgments, attachments, and garnishments. 

Sec. 205. [50 U.S.C. App. 525] Duration and term of stays; 
codefendants not in 
service. 

Sec. 206. [50 U.S.C. App. 526] Statute of limitations. 

Sec. 207. [50 U.S.C. App. 527] Maximum rate of interest on debts 
incurred before 
military service. 

1 Public Law 108-189 (enacted December 19, 2003; 117 Stat. 2835) 
restated, clarified, and revised this Act as then in existence. As part 
of that restatement, the short title of the Act was 
changed from the ï¿½ï¿½Soldiersï¿½ and Sailorsï¿½ Civil Relief Act of 1940ï¿½ï¿½ to 
the ï¿½ï¿½Servicemembers Civil 
Relief Actï¿½ï¿½. 

1 


Sec. 2 SERVICEMEMBERS CIVIL RELIEF ACT 

TITLE III-RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES


Sec. 301. [50 U.S.C. App. 531] Evictions and distress. 

Sec. 302. [50 U.S.C. App. 532] Protection under installment contracts for 
purchase or lease. 

Sec. 303. [50 U.S.C. App. 533] Mortgages and trust deeds. 

Sec. 304. [50 U.S.C. App. 534] Settlement of stayed cases relating to 
personal 
property. 

Sec. 305. [50 U.S.C. App. 535] Termination of residential or motor vehicle 
leases. 

Sec. 305A. Termination or suspension of contracts for cellular telephone
service. 

Sec. 306. [50 U.S.C. App. 536] Protection of life insurance policy. 

Sec. 307. [50 U.S.C. App. 537] Enforcement of storage liens. 

Sec. 308. [50 U.S.C. App. 538] Extension of protections to dependents. 

TITLE IV-LIFE INSURANCE 

Sec. 401. [50 U.S.C. App. 541] Definitions. 

Sec. 402. [50 U.S.C. App. 542] Insurance rights and protections. 

Sec. 403. [50 U.S.C. App. 543] Application for insurance protection. 

Sec. 404. [50 U.S.C. App. 544] Policies entitled to protection and lapse 
of policies. 

Sec. 405. [50 U.S.C. App. 545] Policy restrictions. 

Sec. 406. [50 U.S.C. App. 546] Deduction of unpaid premiums. 

Sec. 407. [50 U.S.C. App. 547] Premiums and interest guaranteed by United 
States. 

Sec. 408. [50 U.S.C. App. 548] Regulations. 

Sec. 409. [50 U.S.C. App. 549] Review of findings of fact and conclusions 
of law. 

TITLE V-TAXES AND PUBLIC LANDS 

Sec. 501. [50 U.S.C. App. 561] Taxes respecting personal property, money, 
credits, and real property. 

Sec. 502. [50 U.S.C. App. 562] Rights in public lands. 

Sec. 503. [50 U.S.C. App. 563] Desert-land entries. 

Sec. 504. [50 U.S.C. App. 564] Mining claims. 

Sec. 505. [50 U.S.C. App. 565] Mineral permits and leases. 

Sec. 506. [50 U.S.C. App. 566] Perfection or defense of rights. 

Sec. 507. [50 U.S.C. App. 567] Distribution of information concerning 
benefits of 
title. 

Sec. 508. [50 U.S.C. App. 568] Land rights of servicemembers. 

Sec. 509. [50 U.S.C. App. 569] Regulations. 

Sec. 510. [50 U.S.C. App. 570] Income taxes. 

Sec. 511. [50 U.S.C. App. 571] Residence for tax purposes. 

TITLE VI-ADMINISTRATIVE REMEDIES 

Sec. 601. [50 U.S.C. App. 581] Inappropriate use of Act.
Sec. 602. [50 U.S.C. App. 582] Certificates of service; persons reported 
missing.
Sec. 603. [50 U.S.C. App. 583] Interlocutory orders.


TITLE VII-FURTHER RELIEF 

Sec. 701. [50 U.S.C. App. 591] Anticipatory relief.
Sec. 702. [50 U.S.C. App. 592] Power of attorney.
Sec. 703. [50 U.S.C. App. 593] Professional liability protection.
Sec. 704. [50 U.S.C. App. 594] Health insurance reinstatement.
Sec. 705. [50 U.S.C. App. 595] Guarantee of residency for military 
personnel.
Sec. 706. [50 U.S.C. App. 596] Business or trade obligations.


SEC. 2. [50 U.S.C. App. 502] PURPOSE. 

The purposes of this Act are- 

(1) to provide for, strengthen, and expedite the national defense 
through protection extended by this Act to 
servicemembers of the United States to enable such persons to 
devote their entire energy to the defense needs of the Nation; 
and 
(2) to provide for the temporary suspension of judicial and 
administrative proceedings and transactions that may ad

SERVICEMEMBERS CIVIL RELIEF ACT Sec. 101 

versely affect the civil rights of servicemembers during their 
military service. 

TITLE I-GENERAL PROVISIONS 

SEC. 101. [50 U.S.C. App. 511] DEFINITIONS. 

For the purposes of this Act: 

(1) SERVICEMEMBER.-The term ï¿½ï¿½servicememberï¿½ï¿½ means a 
member of the uniformed services, as that term is defined in 
section 101(a)(5) of title 10, United States Code. 
(2) MILITARY SERVICE.-The term ï¿½ï¿½military serviceï¿½ï¿½ 
means- 
(A) in the case of a servicemember who is a member 
of the Army, Navy, Air Force, Marine Corps, or Coast 
Guard- 
(i) active duty, as defined in section 101(d)(1) of 
title 10, United States Code, and 
(ii) in the case of a member of the National Guard, 
includes service under a call to active service authorized by the 
President or the Secretary of Defense for 
a period of more than 30 consecutive days under section 502(f) of 
title 32, United States Code, for purposes 
of responding to a national emergency declared by the 
President and supported by Federal funds; 
(B) in the case of a servicemember who is a commissioned officer of 
the Public Health Service or the National 
Oceanic and Atmospheric Administration, active service; 
and 
(C) any period during which a servicemember is absent from duty on 
account of sickness, wounds, leave, or 
other lawful cause. 
(3) PERIOD OF MILITARY SERVICE.-The term ï¿½ï¿½period of 
military serviceï¿½ï¿½ means the period beginning on the date on 
which a servicemember enters military service and ending on 
the date on which the servicemember is released from military 
service or dies while in military service. 
(4) DEPENDENT.-The term ï¿½ï¿½dependentï¿½ï¿½, with respect to a 
servicemember, means- 
(A) the servicememberï¿½s spouse; 
(B) the servicememberï¿½s child (as defined in section 
101(4) of title 38, United States Code); or 
(C) an individual for whom the servicemember provided more than 
one-half of the individualï¿½s support for 
180 days immediately preceding an application for relief 
under this Act. 
(5) COURT.-The term ï¿½ï¿½courtï¿½ï¿½ means a court or an administrative agency 
of the United States or of any State (including 
any political subdivision of a State), whether or not a court or 
administrative agency of record. 
(6) STATE.-The term ï¿½ï¿½Stateï¿½ï¿½ includes- 
(A) a commonwealth, territory, or possession of the 
United States; and 
(B) the District of Columbia. 

Sec. 102 SERVICEMEMBERS CIVIL RELIEF ACT 

(7) SECRETARY CONCERNED.-The term ï¿½ï¿½Secretary 
concernedï¿½ï¿½- 
(A) with respect to a member of the armed forces, has 
the meaning given that term in section 101(a)(9) of title 
10, United States Code; 
(B) with respect to a commissioned officer of the Public 
Health Service, means the Secretary of Health and Human 
Services; and 
(C) with respect to a commissioned officer of the National Oceanic and 
Atmospheric Administration, means the 
Secretary of Commerce. 
(8) MOTOR VEHICLE.-The term ï¿½ï¿½motor vehicleï¿½ï¿½ has the 
meaning given that term in section 30102(a)(6) of title 49, 
United States Code. 
(9) JUDGMENT.-The term ï¿½ï¿½judgmentï¿½ï¿½ means any judgment, decree, order, 
or ruling, final or temporary. 
SEC. 102. [50 U.S.C. App. 512] JURISDICTION AND APPLICABILITY OF 
ACT. 

(a) JURISDICTION.-This Act applies to- 
(1) the United States; 
(2) each of the States, including the political subdivisions 
thereof; and 
(3) all territory subject to the jurisdiction of the United 
States. 
(b) APPLICABILITY TO PROCEEDINGS.-This Act applies to any 
judicial or administrative proceeding commenced in any court or 
agency in any jurisdiction subject to this Act. This Act does not 
apply to criminal proceedings. 
(c) COURT IN WHICH APPLICATION MAY BE MADE.-When 
under this Act any application is required to be made to a court 
in which no proceeding has already been commenced with respect 
to the matter, such application may be made to any court which 
would otherwise have jurisdiction over the matter. 
SEC. 103. [50 U.S.C. App. 513] PROTECTION OF PERSONS SECONDARILY 
LIABLE. 

(a) EXTENSION OF PROTECTION WHEN ACTIONS STAYED, POSTPONED, OR 
SUSPENDED.-Whenever pursuant to this Act a court 
stays, postpones, or suspends (1) the enforcement of an obligation 
or liability, (2) the prosecution of a suit or proceeding, (3) the entry 
or enforcement of an order, writ, judgment, or decree, or (4) the 
performance of any other act, the court may likewise grant such a 
stay, postponement, or suspension to a surety, guarantor, endorser, 
accommodation maker, comaker, or other person who is or may be 
primarily or secondarily subject to the obligation or liability the 
performance or enforcement of which is stayed, postponed, or suspended. 
(b) VACATION OR SET-ASIDE OF JUDGMENTS.-When a judgment 
or decree is vacated or set aside, in whole or in part, pursuant to 
this Act, the court may also set aside or vacate, as the case may 
be, the judgment or decree as to a surety, guarantor, endorser, 
accommodation maker, comaker, or other person who is or may be 
primarily or secondarily liable on the contract or liability for the 
enforcement of the judgment or decree. 

SERVICEMEMBERS CIVIL RELIEF ACT Sec. 106 

(c) BAIL BOND NOT TO BE ENFORCED DURING PERIOD OF MILITARY SERVICE.-A 
court may not enforce a bail bond during the period of military service 
of the principal on the bond when military 
service prevents the surety from obtaining the attendance of the 
principal. The court may discharge the surety and exonerate the 
bail, in accordance with principles of equity and justice, during or 
after the period of military service of the principal. 
(d) WAIVER OF RIGHTS.- 
(1) WAIVERS NOT PRECLUDED.-This Act does not prevent 
a waiver in writing by a surety, guarantor, endorser, accommodation 
maker, comaker, or other person (whether primarily or 
secondarily liable on an obligation or liability) of the protections 
provided under subsections (a) and (b). Any such waiver 
is effective only if it is executed as an instrument separate 
from the obligation or liability with respect to which it applies. 
(2) WAIVER INVALIDATED UPON ENTRANCE TO MILITARY 
SERVICE.-If a waiver under paragraph (1) is executed by an 
individual who after the execution of the waiver enters military 
service, or by a dependent of an individual who after the 
execution of the waiver enters military service, the waiver is 
not valid after the beginning of the period of such military 
service unless the waiver was executed by such individual or 
dependent during the period specified in section 106. 
SEC. 104. [50 U.S.C. App. 514] EXTENSION OF PROTECTIONS TO CITIZENS 
SERVING WITH ALLIED FORCES. 

A citizen of the United States who is serving with the forces 
of a nation with which the United States is allied in the prosecution 
of a war or military action is entitled to the relief and protections 
provided under this Act if that service with the allied force 
is similar to military service as defined in this Act. The relief and 
protections provided to such citizen shall terminate on the date of 
discharge or release from such service. 

SEC. 105. [50 U.S.C. App. 515] NOTIFICATION OF BENEFITS. 

The Secretary concerned shall ensure that notice of the benefits 
accorded by this Act is provided in writing to persons in military 
service and to persons entering military service. 

SEC. 106. [50 U.S.C. App. 516] EXTENSION OF RIGHTS AND PROTECTIONS TO 
RESERVES ORDERED TO REPORT FOR MILITARY SERVICE AND TO PERSONS ORDERED 
TO REPORT FOR INDUCTION. 

(a) RESERVES ORDERED TO REPORT FOR MILITARY SERVICE.-A 
member of a reserve component who is ordered to report for military 
service is entitled to the rights and protections of this title and 
titles II and III during the period beginning on the date of the 
memberï¿½s receipt of the order and ending on the date on which the 
member reports for military service (or, if the order is revoked before 
the member so reports, or the date on which the order is revoked). 
(b) PERSONS ORDERED TO REPORT FOR INDUCTION.-A person 
who has been ordered to report for induction under the Military 
Selective Service Act (50 U.S.C. App. 451 et seq.) is entitled to the 
rights and protections provided a servicemember under this title 
and titles II and III during the period beginning on the date of re

Sec. 107 SERVICEMEMBERS CIVIL RELIEF ACT 

ceipt of the order for induction and ending on the date on which 
the person reports for induction (or, if the order to report for 
induction is revoked before the date on which the person reports for 
induction, on the date on which the order is revoked). 

SEC. 107. [50 U.S.C. App. 517] WAIVER OF RIGHTS PURSUANT TO WRITTEN 
AGREEMENT. 

(a) IN GENERAL.-A servicemember may waive any of the 
rights and protections provided by this Act. Any such waiver that 
applies to an action listed in subsection (b) of this section is 
effective only if it is in writing and is executed as an instrument 
separate from the obligation or liability to which it applies. In the 
case 
of a waiver that permits an action described in subsection (b), the 
waiver is effective only if made pursuant to a written agreement 
of the parties that is executed during or after the servicememberï¿½s 
period of military service. The written agreement shall specify the 
legal instrument to which the waiver applies and, if the 
servicemember is not a party to that instrument, the 
servicemember concerned. 
(b) ACTIONS REQUIRING WAIVERS IN WRITING.-The requirement in subsection 
(a) for a written waiver applies to the following: 
(1) The modification, termination, or cancellation of- 
(A) a contract, lease, or bailment; or 
(B) an obligation secured by a mortgage, trust, deed, 
lien, or other security in the nature of a mortgage. 
(2) The repossession, retention, foreclosure, sale, forfeiture, 
or taking possession of property that- 
(A) is security for any obligation; or 
(B) was purchased or received under a contract, lease, 
or bailment. 
(c) PROMINENT DISPLAY OF CERTAIN CONTRACT RIGHTS WAIVERS.-Any waiver in 
writing of a right or protection provided by 
this Act that applies to a contract, lease, or similar legal instrument 
must be in at least 12 point type. 
(d) COVERAGE OF PERIODS AFTER ORDERS RECEIVED.-For the 
purposes of this section- 
(1) a person to whom section 106 applies shall be considered to be a 
servicemember; and 
(2) the period with respect to such a person specified in 
subsection (a) or (b), as the case may be, of section 106 shall 
be considered to be a period of military service. 
SEC. 108. [50 U.S.C. App. 518] EXERCISE OF RIGHTS UNDER ACT NOT TO 
AFFECT CERTAIN FUTURE FINANCIAL TRANSACTIONS. 

Application by a servicemember for, or receipt by a 
servicemember of, a stay, postponement, or suspension pursuant to 
this Act in the payment of a tax, fine, penalty, insurance premium, 
or other civil obligation or liability of that servicemember shall not 
itself (without regard to other considerations) provide the basis for 
any of the following: 

(1) A determination by a lender or other person that the 
servicemember is unable to pay the civil obligation or liability 
in accordance with its terms. 
(2) With respect to a credit transaction between a creditor 
and the servicemember- 

SERVICEMEMBERS CIVIL RELIEF ACT Sec. 201 

(A) a denial or revocation of credit by the creditor; 
(B) a change by the creditor in the terms of an existing credit 
arrangement; or 
(C) a refusal by the creditor to grant credit to the 
servicemember in substantially the amount or on substantially the terms 
requested. 
(3) An adverse report relating to the creditworthiness of 
the servicemember by or to a person engaged in the practice 
of assembling or evaluating consumer credit information. 
(4) A refusal by an insurer to insure the servicemember. 
(5) An annotation in a servicememberï¿½s record by a creditor or a person 
engaged in the practice of assembling or evaluating consumer credit 
information, identifying the 
servicemember as a member of the National Guard or a reserve component. 
(6) A change in the terms offered or conditions required for 
the issuance of insurance. 
SEC. 109. [50 U.S.C. App. 519] LEGAL REPRESENTATIVES. 

(a) REPRESENTATIVE.-A legal representative of a 
servicemember for purposes of this Act is either of the following: 
(1) An attorney acting on the behalf of a servicemember. 
(2) An individual possessing a power of attorney. 
(b) APPLICATION.-Whenever the term ï¿½ï¿½servicememberï¿½ï¿½ is used 
in this Act, such term shall be treated as including a reference to 
a legal representative of the servicemember. 
TITLE II-GENERAL RELIEF 

SEC. 201. [50 U.S.C. App. 521] PROTECTION OF SERVICEMEMBERS 
AGAINST DEFAULT JUDGMENTS. 

(a) APPLICABILITY OF SECTION.-This section applies to any 
civil action or proceeding, including any child custody proceeding, 
in which the defendant does not make an appearance. 
(b) AFFIDAVIT REQUIREMENT.- 
(1) PLAINTIFF TO FILE AFFIDAVIT.-In any action or proceeding covered 
by this section, the court, before entering judgment for the plaintiff, 
shall require the plaintiff to file with the 
court an affidavit- 
(A) stating whether or not the defendant is in military 
service and showing necessary facts to support the affidavit; or 
(B) if the plaintiff is unable to determine whether or 
not the defendant is in military service, stating that the 
plaintiff is unable to determine whether or not the defendant is in 
military service. 
(2) APPOINTMENT OF ATTORNEY TO REPRESENT DEFENDANT 
IN MILITARY SERVICE.-If in an action covered by this section 
it appears that the defendant is in military service, the court 
may not enter a judgment until after the court appoints an attorney to 
represent the defendant. If an attorney appointed 
under this section to represent a servicemember cannot locate 
the servicemember, actions by the attorney in the case shall 

Sec. 201 SERVICEMEMBERS CIVIL RELIEF ACT 

not waive any defense of the servicemember or otherwise bind 
the servicemember. 


(3) DEFENDANTï¿½S MILITARY STATUS NOT ASCERTAINED BY AFFIDAVIT.-If based 
upon the affidavits filed in such an action, 
the court is unable to determine whether the defendant is in 
military service, the court, before entering judgment, may require the 
plaintiff to file a bond in an amount approved by the 
court. If the defendant is later found to be in military service, 
the bond shall be available to indemnify the defendant against 
any loss or damage the defendant may suffer by reason of any 
judgment for the plaintiff against the defendant, should the 
judgment be set aside in whole or in part. The bond shall remain in 
effect until expiration of the time for appeal and setting aside of a 
judgment under applicable Federal or State law 
or regulation or under any applicable ordinance of a political 
subdivision of a State. The court may issue such orders or 
enter such judgments as the court determines necessary to protect the 
rights of the defendant under this Act. 
(4) SATISFACTION OF REQUIREMENT FOR AFFIDAVIT.-The 
requirement for an affidavit under paragraph (1) may be satisfied by a 
statement, declaration, verification, or certificate, in 
writing, subscribed and certified or declared to be true under 
penalty of perjury. 
(c) PENALTY FOR MAKING OR USING FALSE AFFIDAVIT.-A person who makes or 
uses an affidavit permitted under subsection (b) 
(or a statement, declaration, verification, or certificate as authorized 
under subsection (b)(4)) knowing it to be false, shall be fined 
as provided in title 18, United States Code, or imprisoned for not 
more than one year, or both. 
(d) STAY OF PROCEEDINGS.-In an action covered by this section in which 
the defendant is in military service, the court shall 
grant a stay of proceedings for a minimum period of 90 days under 
this subsection upon application of counsel, or on the courtï¿½s own 
motion, if the court determines that- 
(1) there may be a defense to the action and a defense cannot be 
presented without the presence of the defendant; or 
(2) after due diligence, counsel has been unable to contact 
the defendant or otherwise determine if a meritorious defense 
exists. 
(e) INAPPLICABILITY OF SECTION 202 PROCEDURES.-A stay of 
proceedings under subsection (d) shall not be controlled by procedures 
or requirements under section 202. 
(f) SECTION 202 PROTECTION.-If a servicemember who is a defendant in an 
action covered by this section receives actual notice 
of the action, the servicemember may request a stay of proceeding 
under section 202. 
(g) VACATION OR SETTING ASIDE OF DEFAULT JUDGMENTS.- 
(1) AUTHORITY FOR COURT TO VACATE OR SET ASIDE JUDGMENT.-If a default 
judgment is entered in an action covered 
by this section against a servicemember during the 
servicememberï¿½s period of military service (or within 60 days 
after termination of or release from such military service), the 
court entering the judgment shall, upon application by or on 
behalf of the servicemember, reopen the judgment for the pur

SERVICEMEMBERS CIVIL RELIEF ACT Sec. 202 

pose of allowing the servicemember to defend the action if it 
appears that- 

(A) the servicemember was materially affected by reason of that military 
service in making a defense to the action; and 
(B) the servicemember has a meritorious or legal defense to the action or 
some part of it. 
(2) TIME FOR FILING APPLICATION.-An application under 
this subsection must be filed not later than 90 days after the 
date of the termination of or release from military service. 
(h) PROTECTION OF BONA FIDE PURCHASER.-If a court vacates, 
sets aside, or reverses a default judgment against a servicemember 
and the vacating, setting aside, or reversing is because of a provision 
of this Act, that action shall not impair a right or title acquired by 
a bona fide purchaser for value under the default judgment. 
SEC. 202. [50 U.S.C. App. 522] STAY OF PROCEEDINGS WHEN 
SERVICEMEMBER HAS NOTICE. 

(a) APPLICABILITY OF SECTION.-This section applies to any 
civil action or proceeding, including any child custody proceeding, 
in which the plaintiff or defendant at the time of filing an 
application under this section- 
(1) is in military service or is within 90 days after termination of or 
release from military service; and 
(2) has received notice of the action or proceeding. 
(b) STAY OF PROCEEDINGS.- 
(1) AUTHORITY FOR STAY.-At any stage before final judgment in a civil 
action or proceeding in which a servicemember 
described in subsection (a) is a party, the court may on its own 
motion and shall, upon application by the servicemember, stay 
the action for a period of not less than 90 days, if the conditions in 
paragraph (2) are met. 
(2) CONDITIONS FOR STAY.-An application for a stay under 
paragraph (1) shall include the following: 
(A) A letter or other communication setting forth facts 
stating the manner in which current military duty requirements 
materially affect the servicememberï¿½s ability to appear and stating a 
date when the servicemember will be 
available to appear. 
(B) A letter or other communication from the 
servicememberï¿½s commanding officer stating that the 
servicememberï¿½s current military duty prevents appearance and that 
military leave is not authorized for the 
servicemember at the time of the letter. 
(c) APPLICATION NOT A WAIVER OF DEFENSES.-An application 
for a stay under this section does not constitute an appearance for 
jurisdictional purposes and does not constitute a waiver of any 
substantive or procedural defense (including a defense relating to lack 
of personal jurisdiction). 
(d) ADDITIONAL STAY.- 
(1) APPLICATION.-A servicemember who is granted a stay 
of a civil action or proceeding under subsection (b) may apply 
for an additional stay based on continuing material affect of 
military duty on the servicememberï¿½s ability to appear. Such 

Sec. 203 SERVICEMEMBERS CIVIL RELIEF ACT 10 

an application may be made by the servicemember at the time 
of the initial application under subsection (b) or when it appears that 
the servicemember is unavailable to prosecute or defend the action. The 
same information required under subsection (b)(2) shall be included in 
an application under this 
subsection. 

(2) APPOINTMENT OF COUNSEL WHEN ADDITIONAL STAY REFUSED.-If the court 
refuses to grant an additional stay of proceedings under paragraph (1), 
the court shall appoint counsel 
to represent the servicemember in the action or proceeding. 
(e) COORDINATION WITH SECTION 201.-A servicemember who 
applies for a stay under this section and is unsuccessful may not 
seek the protections afforded by section 201. 
(f) INAPPLICABILITY TO SECTION 301.-The protections of this 
section do not apply to section 301. 
SEC. 203. [50 U.S.C. App. 523] FINES AND PENALTIES UNDER CONTRACTS. 

(a) PROHIBITION OF PENALTIES.-When an action for compliance with the 
terms of a contract is stayed pursuant to this Act, 
a penalty shall not accrue for failure to comply with the terms of 
the contract during the period of the stay. 
(b) REDUCTION OR WAIVER OF FINES OR PENALTIES.-If a 
servicemember fails to perform an obligation arising under a contract 
and a penalty is incurred arising from that nonperformance, 
a court may reduce or waive the fine or penalty if- 
(1) the servicemember was in military service at the time 
the fine or penalty was incurred; and 
(2) the ability of the servicemember to perform the obligation was 
materially affected by such military service. 
SEC. 204. [50 U.S.C. App. 524] STAY OR VACATION OF EXECUTION OFJUDGMENTS, 
ATTACHMENTS, AND GARNISHMENTS. 

(a) COURT ACTION UPON MATERIAL AFFECT DETERMINATION.- 
If a servicemember, in the opinion of the court, is materially affected
by reason of military service in complying with a court judgment or 
order, the court may on its own motion and shall on application by the 
servicemember- 
(1) stay the execution of any judgment or order entered 
against the servicemember; and 
(2) vacate or stay an attachment or garnishment of property, money, or 
debts in the possession of the servicemember 
or a third party, whether before or after judgment. 
(b) APPLICABILITY.-This section applies to an action or proceeding 
commenced in a court against a servicemember before or 
during the period of the servicememberï¿½s military service or within 
90 days after such service terminates. 
SEC. 205. [50 U.S.C. App. 525] DURATION AND TERM OF STAYS; CODEFENDANTS 
NOT IN SERVICE. 

(a) PERIOD OF STAY.-A stay of an action, proceeding, attachment, or 
execution made pursuant to the provisions of this Act by 
a court may be ordered for the period of military service and 90 
days thereafter, or for any part of that period. The court may set 
the terms and amounts for such installment payments as is considered 
reasonable by the court. 

11 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 207 

(b) CODEFENDANTS.-If the servicemember is a codefendant 
with others who are not in military service and who are not entitled 
to the relief and protections provided under this Act, the plaintiff 
may proceed against those other defendants with the approval 
of the court. 
(c) INAPPLICABILITY OF SECTION.-This section does not apply 
to sections 202 and 701. 
SEC. 206. [50 U.S.C. App. 526] STATUTE OF LIMITATIONS. 

(a) TOLLING OF STATUTES OF LIMITATION DURING MILITARY 
SERVICE.-The period of a servicememberï¿½s military service may 
not be included in computing any period limited by law, regulation, 
or order for the bringing of any action or proceeding in a court, or 
in any board, bureau, commission, department, or other agency of 
a State (or political subdivision of a State) or the United States by 
or against the servicemember or the servicememberï¿½s heirs, executors, 
administrators, or assigns. 
(b) REDEMPTION OF REAL PROPERTY.-A period of military service may not 
be included in computing any period provided by law 
for the redemption of real property sold or forfeited to enforce an 
obligation, tax, or assessment. 
(c) INAPPLICABILITY TO INTERNAL REVENUE LAWS.-This section 
does not apply to any period of limitation prescribed by or under 
the internal revenue laws of the United States. 
SEC. 207. [50 U.S.C. App. 527] MAXIMUM RATE OF INTEREST ON DEBTS 
INCURRED BEFORE MILITARY SERVICE. 

(a) INTEREST RATE LIMITATION.- 
(1) LIMITATION TO 6 PERCENT.-An obligation or liability 
bearing interest at a rate in excess of 6 percent per year that 
is incurred by a servicemember, or the servicemember and the 
servicememberï¿½s spouse jointly, before the servicemember enters 
military service shall not bear interest at a rate in excess 
of 6 percent- 
(A) during the period of military service and one year 
thereafter, in the case of an obligation or liability consisting of 
a mortgage, trust deed, or other security in the 
nature of a mortgage; or 
(B) during the period of military service, in the case of 
any other obligation or liability. 
(2) FORGIVENESS OF INTEREST IN EXCESS OF 6 PERCENT.- 
Interest at a rate in excess of 6 percent per year that would 
otherwise be incurred but for the prohibition in paragraph (1) 
is forgiven. 
(3) PREVENTION OF ACCELERATION OF PRINCIPAL.-The 
amount of any periodic payment due from a servicemember 
under the terms of the instrument that created an obligation 
or liability covered by this section shall be reduced by the 
amount of the interest forgiven under paragraph (2) that is allocable 
to the period for which such payment is made. 
(b) IMPLEMENTATION OF LIMITATION.- 
(1) WRITTEN NOTICE TO CREDITOR.-In order for an obligation or 
liability of a servicemember to be subject to the interest 
rate limitation in subsection (a), the servicemember shall provide 
to the creditor written notice and a copy of the military 

Sec. 301 SERVICEMEMBERS CIVIL RELIEF ACT 12 

orders calling the servicemember to military service and any 
orders further extending military service, not later than 180 
days after the date of the servicememberï¿½s termination or release 
from military service. 

(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE 
DUTY.-Upon receipt of written notice and a copy of orders calling a 
servicemember to military service, the creditor shall treat 
the debt in accordance with subsection (a), effective as of the 
date on which the servicemember is called to military service. 
(c) CREDITOR PROTECTION.-A court may grant a creditor relief 
from the limitations of this section if, in the opinion of the court, 
the ability of the servicemember to pay interest upon the obligation 
or liability at a rate in excess of 6 percent per year is not 
materially affected by reason of the servicememberï¿½s military service. 
(d) DEFINITIONS.-In this section: 
(1) INTEREST.-The term ï¿½ï¿½interestï¿½ï¿½ includes service 
charges, renewal charges, fees, or any other charges (except 
bona fide insurance) with respect to an obligation or liability. 
(2) OBLIGATION OR LIABILITY.-The term ï¿½ï¿½obligation or liabilityï¿½ï¿½ 
includes an obligation or liability consisting of a mortgage, trust 
deed, or other security in the nature of a mortgage. 
(e) PENALTY.-Whoever knowingly violates subsection (a) shall 
be fined as provided in title 18, United States Code, imprisoned for 
not more than one year, or both. 
(f) PRESERVATION OF OTHER REMEDIES.-The penalties provided under 
subsection (e) are in addition to and do not preclude 
any other remedy available under law to a person claiming relief 
under this section, including any award for consequential or punitive 
damages. 
TITLE III-RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, 
LEASES 

SEC. 301. [50 U.S.C. App. 531] EVICTIONS AND DISTRESS. 

(a) COURT-ORDERED EVICTION.- 
(1) IN GENERAL.-Except by court order, a landlord (or another person 
with paramount title) may not- 
(A) evict a servicemember, or the dependents of a 
servicemember, during a period of military service of the 
servicemember, from premises- 
(i) that are occupied or intended to be occupied 
primarily as a residence; and 
(ii) for which the monthly rent does not exceed 
$2,400, as adjusted under paragraph (2) for years after 
2003; or 
(B) subject such premises to a distress during the period of military 
service. 
(2) HOUSING PRICE INFLATION ADJUSTMENT.-(A) For calendar years beginning 
with 2004, the amount in effect under 
paragraph (1)(A)(ii) shall be increased by the housing price inflation 
adjustment for the calendar year involved. 

13 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 301 

(B) For purposes of this paragraph- 
(i) The housing price inflation adjustment for any calendar year is the 
percentage change (if any) by which- 
(I) the CPI housing component for November of 
the preceding calendar year, exceeds 
(II) the CPI housing component for November of 
1984. 
(ii) The term ï¿½ï¿½CPI housing componentï¿½ï¿½ means the 
index published by the Bureau of Labor Statistics of the 
Department of Labor known as the Consumer Price Index, 
All Urban Consumers, Rent of Primary Residence, U.S. 
City Average. 
(3) PUBLICATION OF HOUSING PRICE INFLATION ADJUSTMENT.-The Secretary of 
Defense shall cause to be published in 
the Federal Register each year the amount in effect under 
paragraph (1)(A)(ii) for that year following the housing price 
inflation adjustment for that year pursuant to paragraph (2). 
Such publication shall be made for a year not later than 60 
days after such adjustment is made for that year. 
(b) STAY OF EXECUTION.- 
(1) COURT AUTHORITY.-Upon an application for eviction or 
distress with respect to premises covered by this section, the 
court may on its own motion and shall, if a request is made 
by or on behalf of a servicemember whose ability to pay the 
agreed rent is materially affected by military service- 
(A) stay the proceedings for a period of 90 days, unless 
in the opinion of the court, justice and equity require a 
longer or shorter period of time; or 
(B) adjust the obligation under the lease to preserve 
the interests of all parties. 
(2) RELIEF TO LANDLORD.-If a stay is granted under paragraph (1), the 
court may grant to the landlord (or other person 
with paramount title) such relief as equity may require. 
(c) PENALTIES.- 
(1) MISDEMEANOR.-Except as provided in subsection (a), a 
person who knowingly takes part in an eviction or distress described in 
subsection (a), or who knowingly attempts to do so, 
shall be fined as provided in title 18, United States Code, or 
imprisoned for not more than one year, or both. 
(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.-The 
remedies and rights provided under this section are in addition 
to and do not preclude any remedy for wrongful conversion (or 
wrongful eviction) otherwise available under the law to the 
person claiming relief under this section, including any award 
for consequential and punitive damages. 
(d) RENT ALLOTMENT FROM PAY OF SERVICEMEMBER.-To the 
extent required by a court order related to property which is the 
subject of a court action under this section, the Secretary concerned 
shall make an allotment from the pay of a servicemember to satisfy 
the terms of such order, except that any such allotment shall be 
subject to regulations prescribed by the Secretary concerned establishing 
the maximum amount of pay of servicemembers that may 
be allotted under this subsection. 

Sec. 302 SERVICEMEMBERS CIVIL RELIEF ACT 14 

(e) LIMITATION OF APPLICABILITY.-Section 202 is not applicable to this 
section. 
SEC. 302. [50 U.S.C. App. 532] PROTECTION UNDER INSTALLMENT CONTRACTS 
FOR PURCHASE OR LEASE. 

(a) PROTECTION UPON BREACH OF CONTRACT.- 
(1) PROTECTION AFTER ENTERING MILITARY SERVICE.-After 
a servicemember enters military service, a contract by the 
servicemember for- 
(A) the purchase of real or personal property (including a motor 
vehicle); or 
(B) the lease or bailment of such property, 
may not be rescinded or terminated for a breach of terms of 
the contract occurring before or during that personï¿½s military 
service, nor may the property be repossessed for such breach 
without a court order. 
(2) APPLICABILITY.-This section applies only to a contract 
for which a deposit or installment has been paid by the 
servicemember before the servicemember enters military service. 
(b) PENALTIES.- 
(1) MISDEMEANOR.-A person who knowingly resumes possession of property 
in violation of subsection (a), or in violation 
of section 107 of this Act, or who knowingly attempts to do so, 
shall be fined as provided in title 18, United States Code, or 
imprisoned for not more than one year, or both. 
(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.-The 
remedies and rights provided under this section are in addition 
to and do not preclude any remedy for wrongful conversion otherwise 
available under law to the person claiming relief under 
this section, including any award for consequential and punitive 
damages. 
(c) AUTHORITY OF COURT.-In a hearing based on this section, 
the court- 
(1) may order repayment to the servicemember of all or 
part of the prior installments or deposits as a condition of 
terminating the contract and resuming possession of the property; 
(2) may, on its own motion, and shall on application by a 
servicemember when the servicememberï¿½s ability to comply 
with the contract is materially affected by military service, 
stay the proceedings for a period of time as, in the opinion of 
the court, justice and equity require; or 
(3) may make other disposition as is equitable to preserve 
the interests of all parties. 
SEC. 303. [50 U.S.C. App. 533] MORTGAGES AND TRUST DEEDS. 

(a) MORTGAGE AS SECURITY.-This section applies only to an 
obligation on real or personal property owned by a servicemember 
that- 
(1) originated before the period of the servicememberï¿½s 
military service and for which the servicemember is still obligated; and 
(2) is secured by a mortgage, trust deed, or other security 
in the nature of a mortgage. 

15 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 304 

(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION.- 
In an action filed during, or within 9 months 1 after, a 
servicememberï¿½s period of military service to enforce an obligation 
described in subsection (a), the court may after a hearing and on 
its own motion and shall upon application by a servicemember 
when the servicememberï¿½s ability to comply with the obligation is 
materially affected by military service- 
(1) stay the proceedings for a period of time as justice and 
equity require, or 
(2) adjust the obligation to preserve the interests of all 
parties. 
(c) SALE OR FORECLOSURE.-A sale, foreclosure, or seizure of 
property for a breach of an obligation described in subsection (a) 
shall not be valid if made during, or within 9 months 1 after, the 
period of the servicememberï¿½s military service except- 
(1) upon a court order granted before such sale, foreclosure, or 
seizure with a return made and approved by the 
court; or 
(2) if made pursuant to an agreement as provided in section 107. 
(d) PENALTIES.- 
(1) MISDEMEANOR.-A person who knowingly makes or 
causes to be made a sale, foreclosure, or seizure of property 
that is prohibited by subsection (c), or who knowingly attempts 
to do so, shall be fined as provided in title 18, United States 
Code, or imprisoned for not more than one year, or both. 
(2) PRESERVATION OF OTHER REMEDIES.-The remedies and 
rights provided under this section are in addition to and do not 
preclude any remedy for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including consequential and punitive damages. 
SEC. 304. [50 U.S.C. App. 534] SETTLEMENT OF STAYED CASES RELATING TO 
PERSONAL PROPERTY. 

(a) APPRAISAL OF PROPERTY.-When a stay is granted pursuant 
to this Act in a proceeding to foreclose a mortgage on or to repossess 
personal property, or to rescind or terminate a contract for the 
purchase of personal property, the court may appoint three 
disinterested parties to appraise the property. 
(b) EQUITY PAYMENT.-Based on the appraisal, and if undue 
hardship to the servicememberï¿½s dependents will not result, the 
court may order that the amount of the servicememberï¿½s equity in 
the property be paid to the servicemember, or the servicememberï¿½s 
dependents, as a condition of foreclosing the mortgage, repossessing 
the property, or rescinding or terminating the contract. 
1 Section 2203(a) of Public Law 110-289 provides for amendments to 
subsections (b) and (c) 
by striking ï¿½ï¿½90 daysï¿½ï¿½ and inserting ï¿½ï¿½9 monthsï¿½ï¿½. Subsection (c) 
of such section provides: 

(c) EFFECTIVE DATE; SUNSET.- 
(1) EFFECTIVE DATE.-The amendment made by subsection (a) shall take 
effect on the 
date of enactment of this Act. 
(2) SUNSET.-The amendments made by subsection (a) shall expire on 
December 31, 2010. 
Effective January 1, 2011, the provisions of subsections (b) and 
(c) of section 303 of the 
Servicemembers Civil Relief Act, as in effect on the day before 
the date of the enactment 
of this Act, are hereby revived. 

Sec. 305 SERVICEMEMBERS CIVIL RELIEF ACT 16 

SEC. 305. [50 U.S.C. App. 535] TERMINATION OF RESIDENTIAL OR 
MOTOR VEHICLE LEASES. 

(a) TERMINATION BY LESSEE.- 
(1) IN GENERAL.-The lessee on a lease described in subsection (b) may, 
at the lesseeï¿½s option, terminate the lease at 
any time after- 
(A) the lesseeï¿½s entry into military service; or 
(B) the date of the lesseeï¿½s military orders described in 
paragraph (1)(B) or (2)(B) of subsection (b), as the case 
may be. 
(2) JOINT LEASES.-A lesseeï¿½s termination of a lease pursuant to this 
subsection shall terminate any obligation a dependent of the lessee 
may have under the lease. 
(b) COVERED LEASES.-This section applies to the following 
leases: 
(1) LEASES OF PREMISES.-A lease of premises occupied, or 
intended to be occupied, by a servicemember or a 
servicememberï¿½s dependents for a residential, professional, 
business, agricultural, or similar purpose if- 
(A) the lease is executed by or on behalf of a person 
who thereafter and during the term of the lease enters 
military service; or 
(B) the servicemember, while in military service, executes the lease 
and thereafter receives military orders for 
a permanent change of station or to deploy with a military 
unit, or as an individual in support of a military operation, 
for a period of not less than 90 days. 
(2) LEASES OF MOTOR VEHICLES.-A lease of a motor vehicle used, or 
intended to be used, by a servicemember or a 
servicememberï¿½s dependents for personal or business transportation if- 
(A) the lease is executed by or on behalf of a person 
who thereafter and during the term of the lease enters 
military service under a call or order specifying a period 
of not less than 180 days (or who enters military service 
under a call or order specifying a period of 180 days or less 
and who, without a break in service, receives orders extending the 
period of military service to a period of not less 
than 180 days); or 
(B) the servicemember, while in military service, executes the lease 
and thereafter receives military orders- 
(i) for a change of permanent station- 
(I) from a location in the continental United 
States to a location outside the continental United 
States; or 
(II) from a location in a State outside the continental United States 
to any location outside that 
State; or 
(ii) to deploy with a military unit, or as an individual in support of 
a military operation, for a period 
of not less than 180 days. 
(c) MANNER OF TERMINATION.- 
(1) IN GENERAL.-Termination of a lease under subsection 
(a) is made- 

17 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 305 

(A) by delivery by the lessee of written notice of such 
termination, and a copy of the servicememberï¿½s military 
orders, to the lessor (or the lessorï¿½s grantee), or to the lessorï¿½s 
agent (or the agentï¿½s grantee); and 
(B) in the case of a lease of a motor vehicle, by return 
of the motor vehicle by the lessee to the lessor (or the lessorï¿½s 
grantee), or to the lessorï¿½s agent (or the agentï¿½s 
grantee), not later than 15 days after the date of the delivery of 
written notice under subparagraph (A). 
(2) DELIVERY OF NOTICE.-Delivery of notice under paragraph (1)(A) may 
be accomplished- 
(A) by hand delivery; 
(B) by private business carrier; or 
(C) by placing the written notice in an envelope with 
sufficient postage and with return receipt requested, and 
addressed as designated by the lessor (or the lessorï¿½s 
grantee) or to the lessorï¿½s agent (or the agentï¿½s grantee), 
and depositing the written notice in the United States 
mails. 
(d) EFFECTIVE DATE OF LEASE TERMINATION.- 
(1) LEASE OF PREMISES.-In the case of a lease described 
in subsection (b)(1) that provides for monthly payment of rent, 
termination of the lease under subsection (a) is effective 30 
days after the first date on which the next rental payment is 
due and payable after the date on which the notice under subsection (c) 
is delivered. In the case of any other lease described 
in subsection (b)(1), termination of the lease under subsection 
(a) is effective on the last day of the month following the 
month in which the notice is delivered. 
(2) LEASE OF MOTOR VEHICLES.-In the case of a lease described in 
subsection (b)(2), termination of the lease under subsection (a) is 
effective on the day on which the requirements 
of subsection (c) are met for such termination. 
(e) ARREARAGES AND OTHER OBLIGATIONS AND LIABILITIES.- 
Rents or lease amounts unpaid for the period preceding the effective 
date of the lease termination shall be paid on a prorated basis. 
In the case of the lease of a motor vehicle, the lessor may not impose 
an early termination charge, but any taxes, summonses, and 
title and registration fees and any other obligation and liability of 
the lessee in accordance with the terms of the lease, including 
reasonable charges to the lessee for excess wear, use and mileage, that 
are due and unpaid at the time of termination of the lease shall 
be paid by the lessee. 
(f) RENT PAID IN ADVANCE.-Rents or lease amounts paid in 
advance for a period after the effective date of the termination of 
the lease shall be refunded to the lessee by the lessor (or the 
lessorï¿½s assignee or the assigneeï¿½s agent) within 30 days of the 
effective date of the termination of the lease. 
(g) RELIEF TO LESSOR.-Upon application by the lessor to a 
court before the termination date provided in the written notice, 
relief granted by this section to a servicemember may be modified as 
justice and equity require. 
(h) PENALTIES.- 

Sec. 305A SERVICEMEMBERS CIVIL RELIEF ACT 

(1) MISDEMEANOR.-Any person who knowingly seizes, 
holds, or detains the personal effects, security deposit, or other 
property of a servicemember or a servicememberï¿½s dependent 
who lawfully terminates a lease covered by this section, or who 
knowingly interferes with the removal of such property from 
premises covered by such lease, for the purpose of subjecting 
or attempting to subject any of such property to a claim for 
rent accruing subsequent to the date of termination of such 
lease, or attempts to do so, shall be fined as provided in title 
18, United States Code, or imprisoned for not more than one 
year, or both. 
(2) PRESERVATION OF OTHER REMEDIES.-The remedy and 
rights provided under this section are in addition to and do not 
preclude any remedy for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including any award for consequential or punitive damages. 
(i) DEFINITIONS.- 
(1) MILITARY ORDERS.-The term ï¿½ï¿½military ordersï¿½ï¿½, with 
respect to a servicemember, means official military orders, or 
any notification, certification, or verification from the 
servicememberï¿½s commanding officer, with respect to the 
servicememberï¿½s current or future military duty status. 
(2) CONUS.-The term ï¿½ï¿½continental United Statesï¿½ï¿½ means 
the 48 contiguous States and the District of Columbia. 
SEC. 305A. [50 U.S.C. App. 535a] TERMINATION OR SUSPENSION OF CONTRACTS 
FOR CELLULAR TELEPHONE SERVICE. 

(a) IN GENERAL.-A servicemember who receives orders to deploy outside 
of the continental United States for not less than 90 
days or for a permanent change of duty station within the United 
States may request the termination or suspension of any contract 
for cellular telephone service entered into by the servicemember before 
the date of the commencement of such deployment or permanent change if 
the servicememberï¿½s ability to satisfy the contract 
or to utilize the service will be materially affected by such 
deployment or permanent change. The request shall include a copy of the 
servicememberï¿½s military orders. 
(b) RELIEF.-Upon receiving the request of a servicemember 
under subsection (a), the cellular telephone service contractor 
concerned shall- 
(1) grant the requested relief without imposition of an 
early termination fee for termination of the contract or a reactivation 
fee for suspension of the contract; or 
(2) in the case that such servicemember is deployed outside the 
continental United States as described in subsection 
(a), permit the servicemember to suspend the contract at no 
charge until the end of the deployment without requiring, 
whether as a condition of suspension or otherwise, that the 
contract be extended. 
(c) CELLULAR TELEPHONE SERVICE DEFINED.-In this section, 
the term ï¿½ï¿½cellular telephone serviceï¿½ï¿½ has the meaning given the 
term ï¿½ï¿½commercial mobile serviceï¿½ï¿½ in section 332(d) of the 
Communications Act of 1934 (47 U.S.C. 332(d)). 

19 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 307 

SEC. 306. [50 U.S.C. App. 536] PROTECTION OF LIFE INSURANCE POLICY. 

(a) ASSIGNMENT OF POLICY PROTECTED.-If a life insurance policy on the 
life of a servicemember is assigned before military service to secure 
the payment of an obligation, the assignee of the policy (except the 
insurer in connection with a policy loan) may not 
exercise, during a period of military service of the servicemember 
or within one year thereafter, any right or option obtained under 
the assignment without a court order. 
(b) EXCEPTION.-The prohibition in subsection (a) shall not 
apply- 
(1) if the assignee has the written consent of the insured 
made during the period described in subsection (a); 
(2) when the premiums on the policy are due and unpaid; 
or 
(3) upon the death of the insured. 
(c) ORDER REFUSED BECAUSE OF MATERIAL AFFECT.-A court 
which receives an application for an order required under subsection 
(a) may refuse to grant such order if the court determines 
the ability of the servicemember to comply with the terms of the 
obligation is materially affected by military service. 
(d) TREATMENT OF GUARANTEED PREMIUMS.-For purposes of 
this subsection, premiums guaranteed under the provisions of title 
IV of this Act shall not be considered due and unpaid. 
(e) PENALTIES.- 
(1) MISDEMEANOR.-A person who knowingly takes an action contrary to 
this section, or attempts to do so, shall be 
fined as provided in title 18, United States Code, or imprisoned 
for not more than one year, or both. 
(2) PRESERVATION OF OTHER REMEDIES.-The remedy and 
rights provided under this section are in addition to and do not 
preclude any remedy for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including any consequential or punitive damages. 
SEC. 307. [50 U.S.C. App. 537] ENFORCEMENT OF STORAGE LIENS. 

(a) LIENS.- 
(1) LIMITATION ON FORECLOSURE OR ENFORCEMENT.-A 
person holding a lien on the property or effects of a 
servicemember may not, during any period of military service 
of the servicemember and for 90 days thereafter, foreclose or 
enforce any lien on such property or effects without a court 
order granted before foreclosure or enforcement. 
(2) LIEN DEFINED.-For the purposes of paragraph (1), the 
term ï¿½ï¿½lienï¿½ï¿½ includes a lien for storage, repair, or cleaning of the 
property or effects of a servicemember or a lien on such property or 
effects for any other reason. 
(b) STAY OF PROCEEDINGS.-In a proceeding to foreclose or enforce a lien 
subject to this section, the court may on its own motion, 
and shall if requested by a servicemember whose ability to comply 
with the obligation resulting in the proceeding is materially affected 
by military service- 
(1) stay the proceeding for a period of time as justice and 
equity require; or 

Sec. 308 SERVICEMEMBERS CIVIL RELIEF ACT 20 

(2) adjust the obligation to preserve the interests of all 
parties. 
The provisions of this subsection do not affect the scope of section 

303. 
(c) PENALTIES.- 
(1) MISDEMEANOR.-A person who knowingly takes an action contrary to this 
section, or attempts to do so, shall be 
fined as provided in title 18, United States Code, or imprisoned 
for not more than one year, or both. 
(2) PRESERVATION OF OTHER REMEDIES.-The remedy and 
rights provided under this section are in addition to and do not 
preclude any remedy for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including any consequential or punitive damages. 
SEC. 308. [50 U.S.C. App. 538] EXTENSION OF PROTECTIONS TO 
DEPENDENTS. 

Upon application to a court, a dependent of a servicemember 
is entitled to the protections of this title if the dependentï¿½s ability 
to comply with a lease, contract, bailment, or other obligation is 
materially affected by reason of the servicememberï¿½s military service. 

TITLE IV-LIFE INSURANCE 

SEC. 401. [50 U.S.C. App. 541] DEFINITIONS. 

For the purposes of this title: 

(1) POLICY.-The term ï¿½ï¿½policyï¿½ï¿½ means any individual contract for 
whole, endowment, universal, or term life insurance 
(other than group term life insurance coverage), including any 
benefit in the nature of such insurance arising out of membership 
in any fraternal or beneficial association which- 
(A) provides that the insurer may not- 
(i) decrease the amount of coverage or require the 
payment of an additional amount as premiums if the 
insured engages in military service (except increases 
in premiums in individual term insurance based upon 
age); or 
(ii) limit or restrict coverage for any activity required by military 
service; and 
(B) is in force not less than 180 days before the date 
of the insuredï¿½s entry into military service and at the time 
of application under this title. 
(2) PREMIUM.-The term ï¿½ï¿½premiumï¿½ï¿½ means the amount 
specified in an insurance policy to be paid to keep the policy 
in force. 
(3) INSURED.-The term ï¿½ï¿½insuredï¿½ï¿½ means a servicemember 
whose life is insured under a policy. 
(4) INSURER.-The term ï¿½ï¿½insurerï¿½ï¿½ includes any firm, corporation, 
partnership, association, or business that is chartered 
or authorized to provide insurance and issue contracts or policies by 
the laws of a State or the United States. 

21 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 404 

SEC. 402. [50 U.S.C. App. 542] INSURANCE RIGHTS AND PROTECTIONS. 

(a) RIGHTS AND PROTECTIONS.-The rights and protections 
under this title apply to the insured when- 
(1) the insured, 
(2) the insuredï¿½s legal representative, or 
(3) the insuredï¿½s beneficiary in the case of an insured who 
is outside a State, 
applies in writing for protection under this title, unless the 
Secretary of Veterans Affairs determines that the insuredï¿½s policy is 
not entitled to protection under this title. 

(b) NOTIFICATION AND APPLICATION.-The Secretary of Veterans Affairs 
shall notify the Secretary concerned of the procedures 
to be used to apply for the protections provided under this title. 
The applicant shall send the original application to the insurer and 
a copy to the Secretary of Veterans Affairs. 
(c) LIMITATION ON AMOUNT.-The total amount of life insurance coverage 
protection provided by this title for a servicemember 
may not exceed $250,000, or an amount equal to the 
Servicememberï¿½s Group Life Insurance maximum limit, whichever 
is greater, regardless of the number of policies submitted. 
SEC. 403. [50 U.S.C. App. 543] APPLICATION FOR INSURANCE PROTECTION. 

(a) APPLICATION PROCEDURE.-An application for protection 
under this title shall- 
(1) be in writing and signed by the insured, the insuredï¿½s 
legal representative, or the insuredï¿½s beneficiary, as the case 
may be; 
(2) identify the policy and the insurer; and 
(3) include an acknowledgement that the insuredï¿½s rights 
under the policy are subject to and modified by the provisions 
of this title. 
(b) ADDITIONAL REQUIREMENTS.-The Secretary of Veterans Affairs may 
require additional information from the applicant, the insured and 
the insurer to determine if the policy is entitled to protection 
under this title. 
(c) NOTICE TO THE SECRETARY BY THE INSURER.-Upon receipt 
of the application of the insured, the insurer shall furnish a report 
concerning the policy to the Secretary of Veterans Affairs as required 
by regulations prescribed by the Secretary. 
(d) POLICY MODIFICATION.-Upon application for protection 
under this title, the insured and the insurer shall have constructively 
agreed to any policy modification necessary to give this title 
full force and effect. 
SEC. 404. [50 U.S.C. App. 544] POLICIES ENTITLED TO PROTECTION AND 
LAPSE OF POLICIES. 

(a) DETERMINATION.-The Secretary of Veterans Affairs shall 
determine whether a policy is entitled to protection under this title 
and shall notify the insured and the insurer of that determination. 
(b) LAPSE PROTECTION.-A policy that the Secretary determines is entitled 
to protection under this title shall not lapse or 
otherwise terminate or be forfeited for the nonpayment of a premium, or 
interest or indebtedness on a premium, after the date on 
which the application for protection is received by the Secretary. 

Sec. 405 SERVICEMEMBERS CIVIL RELIEF ACT 22 

(c) TIME APPLICATION.-The protection provided by this title 
applies during the insuredï¿½s period of military service and for a 
period of two years thereafter. 
SEC. 405. [50 U.S.C. App. 545] POLICY RESTRICTIONS. 

(a) DIVIDENDS.-While a policy is protected under this title, a 
dividend or other monetary benefit under a policy may not be paid 
to an insured or used to purchase dividend additions without the 
approval of the Secretary of Veterans Affairs. If such approval is 
not obtained, the dividends or benefits shall be added to the value 
of the policy to be used as a credit when final settlement is made 
with the insurer. 
(b) SPECIFIC RESTRICTIONS.-While a policy is protected under 
this title, cash value, loan value, withdrawal of dividend accumulation, 
unearned premiums, or other value of similar character may 
not be available to the insured without the approval of the Secretary. 
The right of the insured to change a beneficiary designation 
or select an optional settlement for a beneficiary shall not be 
affected by the provisions of this title. 
SEC. 406. [50 U.S.C. App. 546] DEDUCTION OF UNPAID PREMIUMS. 

(a) SETTLEMENT OF PROCEEDS.-If a policy matures as a result 
of a servicememberï¿½s death or otherwise during the period of protection 
of the policy under this title, the insurer in making settlement shall 
deduct from the insurance proceeds the amount of the 
unpaid premiums guaranteed under this title, together with interest due 
at the rate fixed in the policy for policy loans. 
(b) INTEREST RATE.-If the interest rate is not specifically fixed 
in the policy, the rate shall be the same as for policy loans in other 
policies issued by the insurer at the time the insuredï¿½s policy was 
issued. 
(c) REPORTING REQUIREMENT.-The amount deducted under 
this section, if any, shall be reported by the insurer to the 
Secretary of Veterans Affairs. 
SEC. 407. [50 U.S.C. App. 547] PREMIUMS AND INTEREST GUARANTEED 
BY UNITED STATES. 

(a) GUARANTEE OF PREMIUMS AND INTEREST BY THE UNITED 
STATES.- 
(1) GUARANTEE.-Payment of premiums, and interest on 
premiums at the rate specified in section 406, which become 
due on a policy under the protection of this title is guaranteed 
by the United States. If the amount guaranteed is not paid to 
the insurer before the period of insurance protection under this 
title expires, the amount due shall be treated by the insurer 
as a policy loan on the policy. 
(2) POLICY TERMINATION.-If, at the expiration of insurance protection 
under this title, the cash surrender value of a 
policy is less than the amount due to pay premiums and interest on 
premiums on the policy, the policy shall terminate. 
Upon such termination, the United States shall pay the insurer the 
difference between the amount due and the cash surrender value. 
(b) RECOVERY FROM INSURED OF AMOUNTS PAID BY THE 
UNITED STATES.- 

23 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 501 

(1) DEBT PAYABLE TO THE UNITED STATES.-The amount 
paid by the United States to an insurer under this title shall 
be a debt payable to the United States by the insured on whose 
policy payment was made. 
(2) COLLECTION.-Such amount may be collected by the 
United States, either as an offset from any amount due the insured 
by the United States or as otherwise authorized by law. 
(3) DEBT NOT DISCHARGEABLE IN BANKRUPTCY.-Such debt 
payable to the United States is not dischargeable in bankruptcy 
proceedings. 
(c) CREDITING OF AMOUNTS RECOVERED.-Any amounts received by the United 
States as repayment of debts incurred by an 
insured under this title shall be credited to the appropriation for 
the payment of claims under this title. 
SEC. 408. [50 U.S.C. App. 548] REGULATIONS. 

The Secretary of Veterans Affairs shall prescribe regulations 
for the implementation of this title. 

SEC. 409. [50 U.S.C. App. 549] REVIEW OF FINDINGS OF FACT AND 
CONCLUSIONS OF LAW. 

The findings of fact and conclusions of law made by the Secretary of 
Veterans Affairs in administering this title are subject to 
review on appeal to the Board of Veteransï¿½ Appeals pursuant to 
chapter 71 of title 38, United States Code, and to judicial review 
only as provided in chapter 72 of such title. 

TITLE V-TAXES AND PUBLIC LANDS 

SEC. 501. [50 U.S.C. App. 561] TAXES RESPECTING PERSONAL PROPERTY, 
MONEY, CREDITS, AND REAL PROPERTY. 

(a) APPLICATION.-This section applies in any case in which a 
tax or assessment, whether general or special (other than a tax on 
personal income), falls due and remains unpaid before or during a 
period of military service with respect to a servicememberï¿½s- 
(1) personal property (including motor vehicles); or 
(2) real property occupied for dwelling, professional, business, 
or agricultural purposes by a servicemember or the 
servicememberï¿½s dependents or employees- 
(A) before the servicememberï¿½s entry into military 
service; and 
(B) during the time the tax or assessment remains unpaid. 
(b) SALE OF PROPERTY.- 
(1) LIMITATION ON SALE OF PROPERTY TO ENFORCE TAX 
ASSESSMENT.-Property described in subsection (a) may not be 
sold to enforce the collection of such tax or assessment except 
by court order and upon the determination by the court that 
military service does not materially affect the servicememberï¿½s 
ability to pay the unpaid tax or assessment. 
(2) STAY OF COURT PROCEEDINGS.-A court may stay a proceeding to 
enforce the collection of such tax or assessment, or 
sale of such property, during a period of military service of the 
servicemember and for a period not more than 180 days after 

Sec. 502 SERVICEMEMBERS CIVIL RELIEF ACT 24 

the termination of, or release of the servicemember from, military 
service. 

(c) REDEMPTION.-When property described in subsection (a) is 
sold or forfeited to enforce the collection of a tax or assessment, a 
servicemember shall have the right to redeem or commence an action to 
redeem the servicememberï¿½s property during the period of 
military service or within 180 days after termination of or release 
from military service. This subsection may not be construed to 
shorten any period provided by the law of a State (including any 
political subdivision of a State) for redemption. 
(d) INTEREST ON TAX OR ASSESSMENT.-Whenever a 
servicemember does not pay a tax or assessment on property described 
in subsection (a) when due, the amount of the tax or assessment due 
and unpaid shall bear interest until paid at the rate of 
6 percent per year. An additional penalty or interest shall not be 
incurred by reason of nonpayment. A lien for such unpaid tax or 
assessment may include interest under this subsection. 
(e) JOINT OWNERSHIP APPLICATION.-This section applies to all 
forms of property described in subsection (a) owned individually by 
a servicemember or jointly by a servicemember and a dependent or 
dependents. 
SEC. 502. [50 U.S.C. App. 562] RIGHTS IN PUBLIC LANDS. 

(a) RIGHTS NOT FORFEITED.-The rights of a servicemember to 
lands owned or controlled by the United States, and initiated or 
acquired by the servicemember under the laws of the United States 
(including the mining and mineral leasing laws) before military 
service, shall not be forfeited or prejudiced as a result of being 
absent from the land, or by failing to begin or complete any work or 
improvements to the land, during the period of military service. 
(b) TEMPORARY SUSPENSION OF PERMITS OR LICENSES.-If a 
permittee or licensee under the Act of June 28, 1934 (43 U.S.C. 315 
et seq.), enters military service, the permittee or licensee may 
suspend the permit or license for the period of military service and for 
180 days after termination of or release from military service. 
(c) REGULATIONS.-Regulations prescribed by the Secretary of 
the Interior shall provide for such suspension of permits and 
licenses and for the remission, reduction, or refund of grazing fees 
during the period of such suspension. 
SEC. 503. [50 U.S.C. App. 563] DESERT-LAND ENTRIES. 

(a) DESERT-LAND RIGHTS NOT FORFEITED.-A desert-land entry 
made or held under the desert-land laws before the entrance of the 
entryman or the entrymanï¿½s successor in interest into military 
service shall not be subject to contest or cancellation- 
(1) for failure to expend any required amount per acre per 
year in improvements upon the claim; 
(2) for failure to effect the reclamation of the claim during 
the period the entryman or the entrymanï¿½s successor in interest is 
in the military service, or for 180 days after termination 
of or release from military service; or 
(3) during any period of hospitalization or rehabilitation 
due to an injury or disability incurred in the line of duty. 

25 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 505 

The time within which the entryman or claimant is required to 
make such expenditures and effect reclamation of the land shall be 
exclusive of the time periods described in paragraphs (2) and (3). 

(b) SERVICE-RELATED DISABILITY.-If an entryman or claimant 
is honorably discharged and is unable to accomplish reclamation of, 
and payment for, desert land due to a disability incurred in the 
line of duty, the entryman or claimant may make proof without 
further reclamation or payments, under regulations prescribed by 
the Secretary of the Interior, and receive a patent for the land 
entered or claimed. 
(c) FILING REQUIREMENT.-In order to obtain the protection of 
this section, the entryman or claimant shall, within 180 days after 
entry into military service, cause to be filed in the land office of the 
district where the claim is situated a notice communicating the fact 
of military service and the desire to hold the claim under this section. 
SEC. 504. [50 U.S.C. App. 564] MINING CLAIMS. 

(a) REQUIREMENTS SUSPENDED.-The provisions of section 2324 
of the Revised Statutes of the United States (30 U.S.C. 28) specified 
in subsection (b) shall not apply to a servicememberï¿½s claims 
or interests in claims, regularly located and recorded, during a period 
of military service and 180 days thereafter, or during any period of 
hospitalization or rehabilitation due to injuries or disabilities 
incurred in the line of duty. 
(b) REQUIREMENTS.-The provisions in section 2324 of the Revised Statutes 
that shall not apply under subsection (a) are those 
which require that on each mining claim located after May 10, 
1872, and until a patent has been issued for such claim, not less 
than $100 worth of labor shall be performed or improvements made 
during each year. 
(c) PERIOD OF PROTECTION FROM FORFEITURE.-A mining claim 
or an interest in a claim owned by a servicemember that has been 
regularly located and recorded shall not be subject to forfeiture for 
nonperformance of annual assessments during the period of military 
service and for 180 days thereafter, or for any period of 
hospitalization or rehabilitation described in subsection (a). 
(d) FILING REQUIREMENT.-In order to obtain the protections of 
this section, the claimant of a mining location shall, before the end 
of the assessment year in which military service is begun or within 
60 days after the end of such assessment year, cause to be filed in 
the office where the location notice or certificate is recorded a 
notice communicating the fact of military service and the desire to 
hold the mining claim under this section. 
SEC. 505. [50 U.S.C. App. 565] MINERAL PERMITS AND LEASES. 

(a) SUSPENSION DURING MILITARY SERVICE.-A person holding 
a permit or lease on the public domain under the Federal mineral 
leasing laws who enters military service may suspend all operations 
under the permit or lease for the duration of military service 
and for 180 days thereafter. The term of the permit or lease shall 
not run during the period of suspension, nor shall any rental or 
royalties be charged against the permit or lease during the period 
of suspension. 

Sec. 506 SERVICEMEMBERS CIVIL RELIEF ACT 26 

(b) NOTIFICATION.-In order to obtain the protection of this section, the 
permittee or lessee shall, within 180 days after entry into 
military service, notify the Secretary of the Interior by registered 
mail of the fact that military service has begun and of the desire 
to hold the claim under this section. 
(c) CONTRACT MODIFICATION.-This section shall not be construed to 
supersede the terms of any contract for operation of a 
permit or lease. 
SEC. 506. [50 U.S.C. App. 566] PERFECTION OR DEFENSE OF RIGHTS. 

(a) RIGHT TO TAKE ACTION NOT AFFECTED.-This title shall 
not affect the right of a servicemember to take action during a period 
of military service that is authorized by law or regulations of 
the Department of the Interior, for the perfection, defense, or further 
assertion of rights initiated or acquired before entering military 
service. 
(b) AFFIDAVITS AND PROOFS.- 
(1) IN GENERAL.-A servicemember during a period of military service may 
make any affidavit or submit any proof required by law, practice, or 
regulation of the Department of the 
Interior in connection with the entry, perfection, defense, or 
further assertion of rights initiated or acquired before entering 
military service before an officer authorized to provide notary 
services under section 1044a of title 10, United States Code, or 
any superior commissioned officer. 
(2) LEGAL STATUS OF AFFIDAVITS.-Such affidavits shall be 
binding in law and subject to the same penalties as prescribed 
by section 1001 of title 18, United State Code. 
SEC. 507. [50 U.S.C. App. 567] DISTRIBUTION OF INFORMATION CONCERNING 
BENEFITS OF TITLE. 

(a) DISTRIBUTION OF INFORMATION BY SECRETARY CONCERNED.-The Secretary 
concerned shall issue to servicemembers 
information explaining the provisions of this title. 
(b) APPLICATION FORMS.-The Secretary concerned shall provide application 
forms to servicemembers requesting relief under 
this title. 
(c) INFORMATION FROM SECRETARY OF THE INTERIOR.-The Secretary of the 
Interior shall furnish to the Secretary concerned information explaining 
the provisions of this title (other than sections 
501, 510, and 511) and related application forms. 
SEC. 508. [50 U.S.C. App. 568] LAND RIGHTS OF SERVICEMEMBERS. 

(a) NO AGE LIMITATIONS.-Any servicemember under the age 
of 21 in military service shall be entitled to the same rights under 
the laws relating to lands owned or controlled by the United 
States, including mining and mineral leasing laws, as those 
servicemembers who are 21 years of age. 
(b) RESIDENCY REQUIREMENT.-Any requirement related to the 
establishment of a residence within a limited time shall be suspended as 
to entry by a servicemember in military service until 180 
days after termination of or release from military service. 
(c) ENTRY APPLICATIONS.-Applications for entry may be verified before a 
person authorized to administer oaths under section 
1044a of title 10, United States Code, or under the laws of the 
State where the land is situated. 

27 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 511 

SEC. 509. [50 U.S.C. App. 569] REGULATIONS. 

The Secretary of the Interior may issue regulations necessary 
to carry out this title (other than sections 501, 510, and 511). 

SEC. 510. [50 U.S.C. App. 570] INCOME TAXES. 

(a) DEFERRAL OF TAX.-Upon notice to the Internal Revenue 
Service or the tax authority of a State or a political subdivision of 
a State, the collection of income tax on the income of a 
servicemember falling due before or during military service shall be 
deferred for a period not more than 180 days after termination of 
or release from military service, if a servicememberï¿½s ability to pay 
such income tax is materially affected by military service. 
(b) ACCRUAL OF INTEREST OR PENALTY.-No interest or penalty 
shall accrue for the period of deferment by reason of nonpayment 
on any amount of tax deferred under this section. 
(c) STATUTE OF LIMITATIONS.-The running of a statute of limitations 
against the collection of tax deferred under this section, by 
seizure or otherwise, shall be suspended for the period of military 
service of the servicemember and for an additional period of 270 
days thereafter. 
(d) APPLICATION LIMITATION.-This section shall not apply to 
the tax imposed on employees by section 3101 of the Internal Revenue 
Code of 1986. 
SEC. 511. [50 U.S.C. App. 571] RESIDENCE FOR TAX PURPOSES. 

(a) RESIDENCE OR DOMICILE.-A servicemember shall neither 
lose nor acquire a residence or domicile for purposes of taxation 
with respect to the person, personal property, or income of the 
servicemember by reason of being absent or present in any tax 
jurisdiction of the United States solely in compliance with military 
orders. 
(b) MILITARY SERVICE COMPENSATION.-Compensation of a 
servicemember for military service shall not be deemed to be income for 
services performed or from sources within a tax jurisdiction of the 
United States if the servicemember is not a resident or 
domiciliary of the jurisdiction in which the servicemember is serving 
in compliance with military orders. 
(c) PERSONAL PROPERTY.- 
(1) RELIEF FROM PERSONAL PROPERTY TAXES.-The personal property of a 
servicemember shall not be deemed to be 
located or present in, or to have a situs for taxation in, the tax 
jurisdiction in which the servicemember is serving in compliance with 
military orders. 
(2) EXCEPTION FOR PROPERTY WITHIN MEMBERï¿½S DOMICILE 
OR RESIDENCE.-This subsection applies to personal property or 
its use within any tax jurisdiction other than the 
servicememberï¿½s domicile or residence. 
(3) EXCEPTION FOR PROPERTY USED IN TRADE OR BUSINESS.-This section does 
not prevent taxation by a tax jurisdiction with respect to personal 
property used in or arising from 
a trade or business, if it has jurisdiction. 
(4) RELATIONSHIP TO LAW OF STATE OF DOMICILE.-Eligibility for relief 
from personal property taxes under this subsection is not contingent on 
whether or not such taxes are paid 
to the State of domicile. 

Sec. 601 SERVICEMEMBERS CIVIL RELIEF ACT 28 

(d) INCREASE OF TAX LIABILITY.-A tax jurisdiction may not 
use the military compensation of a nonresident servicemember to 
increase the tax liability imposed on other income earned by the 
nonresident servicemember or spouse subject to tax by the 
jurisdiction. 
(e) FEDERAL INDIAN RESERVATIONS.-An Indian servicemember 
whose legal residence or domicile is a Federal Indian reservation 
shall be taxed by the laws applicable to Federal Indian reservations 
and not the State where the reservation is located. 
(f) DEFINITIONS.-For purposes of this section: 
(1) PERSONAL PROPERTY.-The term ï¿½ï¿½personal propertyï¿½ï¿½ 
means intangible and tangible property (including motor vehicles). 
(2) TAXATION.-The term ï¿½ï¿½taxationï¿½ï¿½ includes licenses, fees, 
or excises imposed with respect to motor vehicles and their 
use, if the license, fee, or excise is paid by the servicemember 
in the servicememberï¿½s State of domicile or residence. 
(3) TAX JURISDICTION.-The term ï¿½ï¿½tax jurisdictionï¿½ï¿½ means 
a State or a political subdivision of a State. 
TITLE VI-ADMINISTRATIVE REMEDIES 

SEC. 601. [50 U.S.C. App. 581] INAPPROPRIATE USE OF ACT. 

If a court determines, in any proceeding to enforce a civil right, 
that any interest, property, or contract has been transferred or 
acquired with the intent to delay the just enforcement of such right 
by taking advantage of this Act, the court shall enter such judgment 
or make such order as might lawfully be entered or made 
concerning such transfer or acquisition. 

SEC. 602. [50 U.S.C. App. 582] CERTIFICATES OF SERVICE; PERSONS 
REPORTED MISSING. 

(a) PRIMA FACIE EVIDENCE.-In any proceeding under this Act, 
a certificate signed by the Secretary concerned is prima facie 
evidence as to any of the following facts stated in the certificate: 
(1) That a person named is, is not, has been, or has not 
been in military service. 
(2) The time and the place the person entered military 
service. 
(3) The personï¿½s residence at the time the person entered 
military service. 
(4) The rank, branch, and unit of military service of the 
person upon entry. 
(5) The inclusive dates of the personï¿½s military service. 
(6) The monthly pay received by the person at the date of 
the certificateï¿½s issuance. 
(7) The time and place of the personï¿½s termination of or release 
from military service, or the personï¿½s death during military service. 
(b) CERTIFICATES.-The Secretary concerned shall furnish a 
certificate under subsection (a) upon receipt of an application for 
such a certificate. A certificate appearing to be signed by the 
Secretary concerned is prima facie evidence of its contents and of the 
signerï¿½s authority to issue it. 

29 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 701 

(c) TREATMENT OF SERVICEMEMBERS IN MISSING STATUS.-A 
servicemember who has been reported missing is presumed to continue 
in service until accounted for. A requirement under this Act 
that begins or ends with the death of a servicemember does not 
begin or end until the servicememberï¿½s death is reported to, or 
determined by, the Secretary concerned or by a court of competent 
jurisdiction. 
SEC. 603. [50 U.S.C. App. 583] INTERLOCUTORY ORDERS. 

An interlocutory order issued by a court under this Act may be 
revoked, modified, or extended by that court upon its own motion 
or otherwise, upon notification to affected parties as required by 
the court. 

TITLE VII-FURTHER RELIEF 

SEC. 701. [50 U.S.C. App. 591] ANTICIPATORY RELIEF. 

(a) APPLICATION FOR RELIEF.-A servicemember may, during 
military service or within 180 days of termination of or release 
from military service, apply to a court for relief- 
(1) from any obligation or liability incurred by the 
servicemember before the servicememberï¿½s military service; or 
(2) from a tax or assessment falling due before or during 
the servicememberï¿½s military service. 
(b) TAX LIABILITY OR ASSESSMENT.-In a case covered by subsection (a), 
the court may, if the ability of the servicemember to 
comply with the terms of such obligation or liability or pay such 
tax or assessment has been materially affected by reason of military 
service, after appropriate notice and hearing, grant the following 
relief: 
(1) STAY OF ENFORCEMENT OF REAL ESTATE CONTRACTS.- 
(A) In the case of an obligation payable in installments 
under a contract for the purchase of real estate, or secured 
by a mortgage or other instrument in the nature of a mortgage upon real 
estate, the court may grant a stay of the 
enforcement of the obligation- 
(i) during the servicememberï¿½s period of military 
service; and 
(ii) from the date of termination of or release from 
military service, or from the date of application if 
made after termination of or release from military 
service. 
(B) Any stay under this paragraph shall be- 
(i) for a period equal to the remaining life of the 
installment contract or other instrument, plus a period 
of time equal to the period of military service of the 
servicemember, or any part of such combined period; 
and 
(ii) subject to payment of the balance of the principal and accumulated 
interest due and unpaid at the 
date of termination or release from the applicantï¿½s 
military service or from the date of application in 
equal installments during the combined period at the 
rate of interest on the unpaid balance prescribed in 

Sec. 702 SERVICEMEMBERS CIVIL RELIEF ACT 30 

the contract or other instrument evidencing the obligation, and subject 
to other terms as may be equitable. 

(2) STAY OF ENFORCEMENT OF OTHER CONTRACTS.- 
(A) In the case of any other obligation, liability, tax, 
or assessment, the court may grant a stay of 
enforcement- 
(i) during the servicememberï¿½s military service; 
and 
(ii) from the date of termination of or release from 
military service, or from the date of application if 
made after termination or release from military service. 
(B) Any stay under this paragraph shall be- 
(i) for a period of time equal to the period of the 
servicememberï¿½s military service or any part of such 
period; and 
(ii) subject to payment of the balance of principal 
and accumulated interest due and unpaid at the date 
of termination or release from military service, or the 
date of application, in equal periodic installments during this 
extended period at the rate of interest as may 
be prescribed for this obligation, liability, tax, or 
assessment, if paid when due, and subject to other 
terms as may be equitable. 
(c) AFFECT OF STAY ON FINE OR PENALTY.-When a court 
grants a stay under this section, a fine or penalty shall not accrue 
on the obligation, liability, tax, or assessment for the period of 
compliance with the terms and conditions of the stay. 
SEC. 702. [50 U.S.C. App. 592] POWER OF ATTORNEY. 

(a) AUTOMATIC EXTENSION.-A power of attorney of a 
servicemember shall be automatically extended for the period the 
servicemember is in a missing status (as defined in section 551(2) 
of title 37, United States Code) if the power of attorney- 
(1) was duly executed by the servicemember- 
(A) while in military service; or 
(B) before entry into military service but after the 
servicemember- 
(i) received a call or order to report for military 
service; or 
(ii) was notified by an official of the Department 
of Defense that the person could receive a call or order 
to report for military service; 
(2) designates the servicememberï¿½s spouse, parent, or other 
named relative as the servicememberï¿½s attorney in fact for certain, 
specified, or all purposes; and 
(3) expires by its terms after the servicemember entered a 
missing status. 
(b) LIMITATION ON POWER OF ATTORNEY EXTENSION.-A power 
of attorney executed by a servicemember may not be extended 
under subsection (a) if the document by its terms clearly indicates 
that the power granted expires on the date specified even though 
the servicemember, after the date of execution of the document, 
enters a missing status. 

31 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 703 

SEC. 703. [50 U.S.C. App. 593] PROFESSIONAL LIABILITY PROTECTION. 

(a) APPLICABILITY.-This section applies to a servicemember 
who- 
(1) after July 31, 1990, is ordered to active duty (other 
than for training) pursuant to sections 688, 12301(a), 12301(g), 
12302, 12304, 12306, or 12307 of title 10, United States Code, 
or who is ordered to active duty under section 12301(d) of such 
title during a period when members are on active duty pursuant to 
any of the preceding sections; and 
(2) immediately before receiving the order to active duty- 
(A) was engaged in the furnishing of health-care or 
legal services or other services determined by the Secretary of 
Defense to be professional services; and 
(B) had in effect a professional liability insurance policy that 
does not continue to cover claims filed with respect 
to the servicemember during the period of the 
servicememberï¿½s active duty unless the premiums are paid 
for such coverage for such period. 
(b) SUSPENSION OF COVERAGE.- 
(1) SUSPENSION.-Coverage of a servicemember referred to 
in subsection (a) by a professional liability insurance policy 
shall be suspended by the insurance carrier in accordance with 
this subsection upon receipt of a written request from the 
servicemember by the insurance carrier. 
(2) PREMIUMS FOR SUSPENDED CONTRACTS.-A professional 
liability insurance carrier- 
(A) may not require that premiums be paid by or on 
behalf of a servicemember for any professional liability 
insurance coverage suspended pursuant to paragraph (1); 
and 
(B) shall refund any amount paid for coverage for the 
period of such suspension or, upon the election of such 
servicemember, apply such amount for the payment of any 
premium becoming due upon the reinstatement of such 
coverage. 
(3) NONLIABILITY OF CARRIER DURING SUSPENSION.-A professional 
liability insurance carrier shall not be liable with respect to any 
claim that is based on professional conduct (including any failure to 
take any action in a professional capacity) of a servicemember that 
occurs during a period of suspension of that servicememberï¿½s 
professional liability insurance 
under this subsection. 
(4) CERTAIN CLAIMS CONSIDERED TO ARISE BEFORE SUSPENSION.-For the 
purposes of paragraph (3), a claim based upon 
the failure of a professional to make adequate provision for a 
patient, client, or other person to receive professional services 
or other assistance during the period of the professionalï¿½s active 
duty 
service shall be considered to be based on an action 
or failure to take action before the beginning of the period of 
the suspension of professional liability insurance under this 
subsection, except in a case in which professional services were 
provided after the date of the beginning of such period. 
(c) REINSTATEMENT OF COVERAGE.- 

Sec. 703 SERVICEMEMBERS CIVIL RELIEF ACT 32 

(1) REINSTATEMENT REQUIRED.-Professional liability 
insurance coverage suspended in the case of any 
servicemember pursuant to subsection (b) shall be reinstated 
by the insurance carrier on the date on which that 
servicemember transmits to the insurance carrier a written request 
for reinstatement. 
(2) TIME AND PREMIUM FOR REINSTATEMENT.-The request 
of a servicemember for reinstatement shall be effective only if 
the servicemember transmits the request to the insurance carrier 
within 
30 days after the date on which the servicemember 
is released from active duty. The insurance carrier shall notify 
the servicemember of the due date for payment of the premium 
of such insurance. Such premium shall be paid by the 
servicemember within 30 days after receipt of that notice. 
(3) PERIOD OF REINSTATED COVERAGE.-The period for 
which professional liability insurance coverage shall be 
reinstated for a servicemember under this subsection may not be 
less than the balance of the period for which coverage would 
have continued under the insurance policy if the coverage had 
not been suspended. 
(d) INCREASE IN PREMIUM.- 
(1) LIMITATION ON PREMIUM INCREASES.-An insurance carrier may 
not increase the amount of the premium charged for 
professional liability insurance coverage of any servicemember 
for the minimum period of the reinstatement of such coverage 
required under subsection (c)(3) to an amount greater than the 
amount chargeable for such coverage for such period before the 
suspension. 
(2) EXCEPTION.-Paragraph (1) does not prevent an increase in 
premium to the extent of any general increase in the 
premiums charged by that carrier for the same professional 
liability coverage for persons similarly covered by such insurance 
during the period of the suspension. 
(e) CONTINUATION OF COVERAGE OF UNAFFECTED PERSONS.- 
This section does not- 
(1) require a suspension of professional liability insurance 
protection for any person who is not a person referred to in 
subsection (a) and who is covered by the same professional 
liability insurance as a person referred to in such subsection; or 
(2) relieve any person of the obligation to pay premiums 
for the coverage not required to be suspended. 
(f) STAY OF CIVIL OR ADMINISTRATIVE ACTIONS.- 
(1) STAY OF ACTIONS.-A civil or administrative action for 
damages on the basis of the alleged professional negligence or 
other professional liability of a servicemember whose professional 
liability insurance coverage has been suspended under 
subsection (b) shall be stayed until the end of the period of the 
suspension if- 
(A) the action was commenced during the period of the 
suspension; 
(B) the action is based on an act or omission that occurred 
before the date on which the suspension became 
effective; and 

33 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 704 

(C) the suspended professional liability insurance 
would, except for the suspension, on its face cover the 
alleged professional negligence or other professional liability 
negligence or other professional liability of the 
servicemember. 
(2) DATE OF COMMENCEMENT OF ACTION.-Whenever a civil 
or administrative action for damages is stayed under paragraph 
(1) in the case of any servicemember, the action shall 
have been deemed to have been filed on the date on which the 
professional liability insurance coverage of the servicemember 
is reinstated under subsection (c). 
(g) EFFECT OF SUSPENSION UPON LIMITATIONS PERIOD.-In the 
case of a civil or administrative action for which a stay could have 
been granted under subsection (f) by reason of the suspension of 
professional liability insurance coverage of the defendant under 
this section, the period of the suspension of the coverage shall be 
excluded from the computation of any statutory period of limitation 
on the commencement of such action. 
(h) DEATH DURING PERIOD OF SUSPENSION.-If a 
servicemember whose professional liability insurance coverage is 
suspended under subsection (b) dies during the period of the 
suspension- 
(1) the requirement for the grant or continuance of a stay 
in any civil or administrative action against such 
servicemember under subsection (f)(1) shall terminate on the 
date of the death of such servicemember; and 
(2) the carrier of the professional liability insurance so 
suspended shall be liable for any claim for damages for 
professional negligence or other professional liability of the 
deceased 
servicemember in the same manner and to the same extent as 
such carrier would be liable if the servicemember had died 
while covered by such insurance but before the claim was filed. 
(i) DEFINITIONS.-For purposes of this section: 
(1) ACTIVE DUTY.-The term ï¿½ï¿½active dutyï¿½ï¿½ has the meaning 
given that term in section 101(d)(1) of title 10, United States 
Code. 
(2) PROFESSION.-The term ï¿½ï¿½professionï¿½ï¿½ includes occupation. 
(3) PROFESSIONAL.-The term ï¿½ï¿½professionalï¿½ï¿½ includes occupational. 
SEC. 704. [50 U.S.C. App. 594] HEALTH INSURANCE REINSTATEMENT. 

(a) REINSTATEMENT OF HEALTH INSURANCE.-A servicemember 
who, by reason of military service as defined in section 703(a)(1), 
is entitled to the rights and protections of this Act shall also be 
entitled upon termination or release from such service to 
reinstatement of any health insurance that- 
(1) was in effect on the day before such service commenced; and 
(2) was terminated effective on a date during the period of 
such service. 
(b) NO EXCLUSION OR WAITING PERIOD.-The reinstatement of 
health care insurance coverage for the health or physical condition 
of a servicemember described in subsection (a), or any other person 

Sec. 705 SERVICEMEMBERS CIVIL RELIEF ACT 34 

who is covered by the insurance by reason of the coverage of the 
servicemember, shall not be subject to an exclusion or a waiting 
period, if- 

(1) the condition arose before or during the period of such 
service; 
(2) an exclusion or a waiting period would not have been 
imposed for the condition during the period of coverage; and 
(3) in a case in which the condition relates to the 
servicemember, the condition has not been determined by the 
Secretary of Veterans Affairs to be a disability incurred or 
aggravated in the line of duty (within the meaning of section 
105 of title 38, United States Code). 
(c) EXCEPTIONS.-Subsection (a) does not apply to a 
servicemember entitled to participate in employer-offered insurance 
benefits pursuant to the provisions of chapter 43 of title 38, United 
States Code. 
(d) TIME FOR APPLYING FOR REINSTATEMENT.-An application 
under this section must be filed not later than 120 days after the 
date of the termination of or release from military service. 
(e) LIMITATION ON PREMIUM INCREASES.- 
(1) PREMIUM PROTECTION.-The amount of the premium 
for health insurance coverage that was terminated by a 
servicemember and required to be reinstated under subsection 
(a) may not be increased, for the balance of the period for 
which coverage would have been continued had the coverage 
not been terminated, to an amount greater than the amount 
chargeable for such coverage before the termination. 
(2) INCREASES OF GENERAL APPLICABILITY NOT PRECLUDED.-Paragraph (1) 
does not prevent an increase in premium to the extent of any general 
increase in the premiums 
charged by the carrier of the health care insurance for the 
same health insurance coverage for persons similarly covered 
by such insurance during the period between the termination 
and the reinstatement. 
SEC. 705. [50 U.S.C. App. 595] GUARANTEE OF RESIDENCY FOR MILITARY 
PERSONNEL. 

For the purposes of voting for any Federal office (as defined in 
section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431)) or a State or local office, a person who is absent from a State 
in compliance with military or naval orders shall not, solely by reason 
of that absence- 

(1) be deemed to have lost a residence or domicile in that 
State, without regard to whether or not the person intends to 
return to that State; 
(2) be deemed to have acquired a residence or domicile in 
any other State; or 
(3) be deemed to have become a resident in or a resident 
of any other State. 
SEC. 706. [50 U.S.C. App. 596] BUSINESS OR TRADE OBLIGATIONS. 

(a) AVAILABILITY OF NON-BUSINESS ASSETS TO SATISFY OBLIGATIONS.-If the 
trade or business (without regard to the form in 
which such trade or business is carried out) of a servicemember has 
an obligation or liability for which the servicemember is personally 

35 SERVICEMEMBERS CIVIL RELIEF ACT Sec. 706 

liable, the assets of the servicemember not held in connection with 
the trade or business may not be available for satisfaction of the 
obligation or liability during the servicememberï¿½s military service. 

(b) RELIEF TO OBLIGORS.-Upon application to a court by the 
holder of an obligation or liability covered by this section, relief 
granted by this section to a servicemember may be modified as justice 
and equity require.