Title 38Veterans' BenefitsRelease 119-73

§3108 Allowances

Title 38 › Part PART III— - READJUSTMENT AND RELATED BENEFITS › Chapter CHAPTER 31— - TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-CONNECTED DISABILITIES › § 3108

Last updated Apr 6, 2026|Official source

Summary

VA pays a monthly living allowance to veterans while they take part in a VA vocational rehabilitation program. The VA decides how long the veteran is in the program and pays the allowance during that time, except if the veteran chooses the option under subsection (f) to use certain education benefits. If the VA finds a veteran ready for work when their training ends, the veteran gets the full-time training allowance for two months while they follow VA employment services; the VA may add up to two more months if a disaster forces the veteran out of a job. No allowance is paid while a veteran is getting an initial evaluation or only counseling, placement, or post-placement services. Monthly rates depend on the type of program and number of dependents. For full-time institutional, extended evaluation, or independent living programs the rates are: $366 (no dependents), $454 (one), $535 (two), plus $39 for each dependent over two. For three-quarter time those rates are $275, $341, $400, plus $30 for each extra dependent. Half-time rates are $184, $228, $268, plus $20 extra per dependent. For full-time on-the-job/apprentice/farm training the rates are $320, $387, $446, plus $29 for each extra dependent. Rates were adjusted for fiscal year 1994 by the Consumer Price Index and are adjusted for later years by annual CPI changes. A veteran eligible for chapter 33 may instead choose an amount equal to the monthly basic allowance for housing for an E–5 with dependents for the military housing area covering the school’s ZIP code. Employers must report any pay given to a veteran in on-the-job training; the VA can reduce the veteran’s allowance based on that pay. Unpaid or very low-paid government or tribal training gets the institutional rate. The VA defines full- and part-time and may pay a proportional rate for part-time extended evaluation. For veterans in a special residential facility, the VA can pay the facility for room and board instead of the veteran’s subsistence (but still pay the dependent portion). If a veteran picks the chapter 30 education option under subsection (f), they get chapter 30-style allowances and rules but cannot get certain other VA services listed in the law. No allowance is paid to a veteran serving a felony sentence in a jail or prison, except if the veteran is in a halfway house or on work-release. During any month when a veteran gets special hospital-related compensation under section 1114(j), the total paid (allowance plus compensation) cannot exceed the greater of (1) the sum of the allowance that would normally be paid plus the compensation that would apply without the hospital-rate, or (2) the section 1114(j) compensation amount. The VA may pay subsistence in advance under the rules for advance payments.

Full Legal Text

Title 38, §3108

Veterans' Benefits — Source: USLM XML via OLRC

(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 veteran’s participation under this chapter in a rehabilitation program.
(2)(A)In any case in which the Secretary determines, at the conclusion of such veteran’s 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 subsistence 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.
(B)In any case in which the Secretary determines that a veteran described in subparagraph (A) has been displaced as the result of a natural or other disaster while being paid a subsistence allowance under that subparagraph, as determined by the Secretary, the Secretary may extend the payment of a subsistence allowance under such subparagraph for up to an additional two months while the veteran is satisfactorily following a program of employment services described in such subparagraph.
(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 veteran’s dependency status) opposite the appropriate type of program being pursued as specified in column I: Column IColumnIIColumnIIIColumnIVColumn V Type ofprogramNodependentsOnedependentTwodependentsMore thantwodependents The amount in column IV, plus the following for each dependent in excess of two: Institu­tional training: Full-time$366$454$535 $39 Three-quarter time275341400 30 Half-time184228268 20 Farm coop­erative, apprentice, or other on-job training: Full-time320387446 29 Extended evaluation: Full-time366454535 39 Independent living training: Full-time366454535 39 Three-quarter time275341400 30 Half-time184228268 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
(B)such Consumer Price Index for the 12-month period preceding the 12-month period described in subparagraph (A).
(4)A veteran entitled to a subsistence allowance under this chapter and educational assistance under chapter 33 of this title may elect to receive payment from the Secretary in lieu of an amount otherwise determined by the Secretary under this subsection in an amount equal to the applicable monthly amount of 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 providing the rehabilitation program concerned.
(c)(1)In any case in which the vocational rehabilitation program 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 veteran’s 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 veteran’s 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 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 veteran’s 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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Prior section 3108 was renumbered section 5308 of this title. Provisions similar to those comprising this section were contained in former section 1504 of this title prior to the general revision of this chapter by Pub. L. 96–466.

Amendments

2015—Subsec. (b)(4). Pub. L. 114–58 inserted “the” before “rehabilitation program concerned”. 2012—Subsec. (a)(2). Pub. L. 112–154 designated existing provisions as subpar. (A) and added subpar. (B). 2011—Subsec. (b)(4). Pub. L. 111–377 added par. (4). 2006—Subsec. (g)(1). Pub. L. 109–461 substituted “local, or other penal institution or correctional facility” for “or local penal institution”. 1996—Subsec. (a)(2). Pub. L. 104–275, § 101(g)(1), substituted “while satisfactorily following a program of employment services provided under section 3104(a)(5) of this title” for “following the conclusion of such pursuit”. Subsec. (f)(1)(A). Pub. L. 104–275, § 101(g)(2)(A), inserted “eligible for and” after “veteran is” and substituted “chapter 30” for “chapter 30 or 34” and “enrolled under chapter 30” for “enrolled under either chapter 30 or chapter 34”. Subsec. (f)(1)(B). Pub. L. 104–275, § 101(g)(2)(B), substituted “chapter 30” for “chapter 30 or 34”. 1994—Subsec. (c)(2). Pub. L. 103–446 inserted “or federally recognized Indian tribe” after “local government agency”. 1992—Subsec. (b). Pub. L. 102–568, § 405(b), designated existing provisions as par. (1) and added pars. (2) and (3). Pub. L. 102–568, § 405(a), increased the monthly rehabilitation subsistence allowance for eligible veterans in column II from $333, $250, $167, $291, $333, $333, $250, and $167 to $366, $275, $184, $320, $366, $366, $275, and $184; in column III from $413, $310, $207, $352, $413, $413, $310, and $207 to $454, $341, $228, $387, $454, $454, $341, and $228; in column IV from $486, $364, $244, $405, $486, $486, $364, and $244 to $535, $400, $268, $446, $535, $535, $$400, and $268; and in column V from $35, $27, $18, $26, $35, $35, $27, and $18 to $39, $30, $20, $29, $39, $39, $30, and $20, respectively. 1991—Pub. L. 102–83, § 5(a), renumbered section 1508 of this title as this section. Subsec. (a)(3). Pub. L. 102–83, § 5(c)(1), substituted “3106(a)” for “1506(a)” and “3105(b)” for “1505(b)”. Subsec. (c)(2). Pub. L. 102–83, § 5(c)(1), substituted “3115(a)(1)” for “1515(a)(1)”. Pub. L. 102–16 inserted “, State, or local government” after “Federal”. Subsec. (f)(2). Pub. L. 102–83, § 5(c)(1), substituted “3104(a)(3)” for “1504(a)(3)”. Subsec. (h). Pub. L. 102–83, § 5(c)(1), substituted “1114(j)” for “314(j)” in two places. Subsec. (i). Pub. L. 102–83, § 5(c)(1), substituted “3680(d)” for “1780(d)”. 1989—Subsec. (a)(1), (2). Pub. L. 101–237, § 423(b)(1)(A), substituted “Secretary” for “Administrator”. Subsec. (b). Pub. L. 101–237, § 423(b)(1)(A), substituted “Secretary” for “Administrator”. Pub. L. 101–237, § 402(a), increased the monthly rehabilitation subsistence allowance for eligible veterans in column II from $310, $233, $155, $271, $310, $310, $233, and $155 to $333, $250, $167, $291, $333, $333, $250, and $167; in column III from $384, $288, $193, $327, $384, $384, $288, and $193 to $413, $310, $207, $352, $413, $413, $310, and $207; in column IV from $452, $339, $227, $377, $452, $452, $339, and $227 to $486, $364, $244, $405, $486, $486, $364, and $244; in column V from $33, $25, $17, $24, $33, $33, $25, and $17 to $35, $27, $18, $26, $35, $35, $27, and $18, respectively. Subsecs. (c)(1) to (f)(1)(A). Pub. L. 101–237, § 423(b)(1)(A), substituted “Secretary” for “Administrator” wherever appearing. Subsec. (h). Pub. L. 101–237, § 423(b)(1)(B), substituted “Department of Veterans Affairs” for “Veterans’ Administration”. 1984—Subsec. (b). Pub. L. 98–543 increased the monthly rehabilitation subsistence allowance for eligible veterans in column II from $282, $212, $141, $246, $282, $282, $212, and $141 to $310, $233, $155, $271, $310, $310, $233, and $155; in column III from $349, $262, $175, $297, $349, $349, $262, and $175 to $384, $288, $193, $323, $384, $384, $288, and $193; in column IV from $411, $308, $206, $343, $411, $411, $308, and $206 to $452, $339, $227, $377, $452, $452, $339, and $227; in column V from $30, $23, $15, $22, $30, $30, $23, and $15 to $33, $25, $17, $24, $33, $33, $25, and $17, respectively. Subsec. (f)(1)(A), (B). Pub. L. 98–525 inserted references to chapter 30 of this title. 1982—Subsec. (g)(2). Pub. L. 97–306 inserted “not” after “shall” and struck out “if the Administrator determines that all the veteran’s living expenses are being defrayed by a Federal, State, or local government” at end.

Statutory Notes and Related Subsidiaries

Effective Date

of 2012 AmendmentAmendment by Pub. L. 112–154 effective on the date that is one year after Aug. 6, 2012, see section 701(g) of Pub. L. 112–154, set out as an

Effective Date

note under section 2109 of this title.

Effective Date

of 2011 Amendment Pub. L. 111–377, title II, § 205(b), Jan. 4, 2011, 124 Stat. 4126, provided that: “The amendment made by this section [amending this section] shall take effect on August 1, 2011.”

Effective Date

of 1992 Amendment Pub. L. 102–568, title IV, § 405(c), Oct. 29, 1992, 106 Stat. 4339, provided that: “The

Amendments

made by subsections (a) and (b) [amending this section] shall take effect on October 1, 1993.”

Effective Date

of 1989 Amendment Pub. L. 101–237, title IV, § 402(b), Dec. 18, 1989, 103 Stat. 2078, provided that: “The amendment made by this section [amending this section] shall take effect on January 1, 1990.”

Effective Date

of 1984 Amendment Pub. L. 98–543, title II, § 205, Oct. 24, 1984, 98 Stat. 2743, provided that: “The

Amendments

made by this part [part A (§§ 201–205) of title II of Pub. L. 98–543, see Tables for classification] shall take effect as of October 1, 1984.”

Effective Date

Veterans Pursuing Program of Vocational Rehabilitation Under This Chapter Section effective Oct. 1, 1980, and during period beginning on Oct. 1, 1980, and ending on Mar. 31, 1981, the provisions of this section, as added by Pub. L. 96–466, title I, § 101(a), Oct. 17, 1980, 94 Stat. 2178, shall apply to veterans pursuing a program of vocational rehabilitation training under this chapter in the same manner as former section 1504 of this title applied to veterans pursuing such a program under this chapter on Sept. 30, 1980, see section 802(a)(2), (4) of Pub. L. 96–466, set out as an

Effective Date

note under section 3100 of this title. Extension of Payment of Vocational Rehabilitation Subsistence Allowances Pub. L. 116–140, § 8, Apr. 28, 2020, 134 Stat. 634, which temporarily allowed for additional subsistence allowances for certain veterans, was repealed by Pub. L. 117–333, § 4(b), Jan. 5, 2023, 136 Stat. 6128. Applicability of Subsection (g)(1) to Apportionments Made Before October 17, 1980 Pub. L. 96–466, title I, § 101(c), Oct. 17, 1980, 94 Stat. 2186, provided that: “The provisions of section 1508(g)(1) [now 3108(g)(1)] of title 38, United States Code, as added by subsection (a) shall not apply to an apportionment made under section 3107(c) [now 5307(c)] of such title before the date of the enactment of this Act [Oct. 17, 1980].”

Reference

Citations & Metadata

Citation

38 U.S.C. § 3108

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73