Title 37Pay and Allowances of the Uniformed ServicesRelease 119-73

§326 Incentive bonus: conversion to military occupational specialty to ease personnel shortage

Title 37 › Chapter CHAPTER 5— - SPECIAL AND INCENTIVE PAYS › Subchapter SUBCHAPTER I— - EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES › § 326

Last updated Apr 6, 2026|Official source

Summary

The Secretary may pay a bonus to regular or reserve members who sign a written agreement to switch into a military job that needs more trained people and then serve at least three years in that job. To be eligible, a member must be E‑6 with not more than 10 years of service under section 205, or E‑5 or below regardless of service time. The bonus can be no more than $4,000 and is paid in one lump sum when the member’s conversion is approved by the service’s chief personnel officer. The bonus is extra pay. If a member does not convert or complete the agreed service, they must repay under section 303a(e). Secretaries must make rules for the program, and department rules need the Secretary of Defense’s approval. No agreements could be made after December 31, 2018.

Full Legal Text

Title 37, §326

Pay and Allowances of the Uniformed Services — Source: USLM XML via OLRC

(a)The Secretary concerned may pay a bonus under this section to an eligible member of a regular or reserve component of the armed forces who executes a written agreement to convert to, and serve for a period of not less than three years in, a military occupational specialty for which there is a shortage of trained and qualified personnel.
(b)A member is eligible to enter into an agreement under subsection (a) if, at the time the agreement is executed, the member is serving in—
(1)pay grade E–6, with not more than 10 years of service computed under section 205 of this title; or
(2)pay grade E–5 or below, regardless of years of service.
(c)(1)A bonus under this section may not exceed $4,000.
(2)A bonus payable under this section shall be disbursed in one lump sum when the member’s conversion to the military occupational specialty is approved by the chief personnel officer of the regular or reserve component of the member’s armed force.
(d)A bonus paid to a member under this section is in addition to any other pay and allowances to which the member is entitled.
(e)A member who does not convert to and complete the period of service in the military occupational specialty specified in the agreement executed under subsection (a) shall be subject to the repayment provisions of section 303a(e) of this title.
(f)The Secretaries concerned shall prescribe regulations to carry out this section. Regulations prescribed by the Secretary of a military department shall be subject to the approval of the Secretary of Defense.
(g)No agreement under this section may be entered into after December 31, 2018.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2017—Subsec. (g). Pub. L. 115–91 substituted “
December 31, 2018” for “
December 31, 2017”. 2016—Subsec. (g). Pub. L. 114–328 substituted “
December 31, 2017” for “
December 31, 2016”. 2015—Subsec. (g). Pub. L. 114–92 substituted “
December 31, 2016” for “
December 31, 2015”. 2014—Subsec. (g). Pub. L. 113–291 substituted “
December 31, 2015” for “
December 31, 2014”. 2013—Subsec. (c)(1). Pub. L. 112–239, § 617, substituted “$4,000.” for “$4,000, in the case of a member of a regular component of the armed forces, and $2,000, in the case of a member of a reserve component of the armed forces.” Subsec. (g). Pub. L. 113–66 substituted “
December 31, 2014” for “
December 31, 2013”. Pub. L. 112–239, § 615(6), substituted “
December 31, 2013” for “
December 31, 2012”. 2011—Subsec. (g). Pub. L. 112–81 substituted “
December 31, 2012” for “
December 31, 2011”. Pub. L. 111–383 substituted “
December 31, 2011” for “
December 31, 2010”. 2009—Subsec. (g). Pub. L. 111–84 substituted “
December 31, 2010” for “
December 31, 2009”. 2008—Subsec. (g). Pub. L. 110–417 substituted “
December 31, 2009” for “
December 31, 2008”. Pub. L. 110–181 substituted “
December 31, 2008” for “
December 31, 2007”. 2006—Subsec. (e). Pub. L. 109–163, amended heading and text of subsec. (e) generally, substituting provisions referring to repayment provisions of section 303a(e) for specific provisions relating to refunds required when member fails to serve in specified military occupational specialty for agreed upon period. Subsec. (g). Pub. L. 109–364 substituted “
December 31, 2007” for “
December 31, 2006”. 2004—Subsec. (a). Pub. L. 108–375, § 622(a)(1), inserted “of a regular or reserve component” after “an eligible member”. Subsec. (b). Pub. L. 108–375, § 622(a)(2), substituted comma for dash after “if”, struck out “(1) the member is entitled to basic pay; and” and par. (2) designation before “at the time”, and redesignated subpars. (A) and (B) of former par. (2) as pars. (1) and (2), respectively. Subsec. (c)(1). Pub. L. 108–375, § 622(b), inserted before period at end “, in the case of a member of a regular component of the armed forces, and $2,000, in the case of a member of a reserve component of the armed forces”. Subsec. (c)(2). Pub. L. 108–375, § 622(a)(3), inserted “regular or reserve component of the” after “chief personnel officer of the”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment by Pub. L. 110–181 effective as of Dec. 31, 2007, and subject to various special provisions, see section 610 of Pub. L. 110–181, set out as a Correction of Lapsed Authorities for Payment of Bonuses, Special Pays, and Similar Benefits for Members of the Uniformed Services note under section 2130a of Title 10, Armed Forces.

Savings Provision

For

Savings Provision

relating to payment or repayment of any bonus, incentive pay, special pay, or similar pay obligated to be paid before Apr. 1, 2006, under a provision of this section amended by section 687(b) of Pub. L. 109–163, see section 687(f) of Pub. L. 109–163, set out as a note under section 510 of Title 10, Armed Forces.

Reference

Citations & Metadata

Citation

37 U.S.C. § 326

Title 37Pay and Allowances of the Uniformed Services

Last Updated

Apr 6, 2026

Release point: 119-73