Title 38Veterans' BenefitsRelease 119-73

§5302B Prohibition of debt arising from overpayment due to delay in processing

Title 38 › Part PART IV— - GENERAL ADMINISTRATIVE PROVISIONS › Chapter CHAPTER 53— - SPECIAL PROVISIONS RELATING TO BENEFITS › § 5302B

Last updated Apr 6, 2026|Official source

Summary

You do not have to repay money to the United States if the overpayment came from a benefits program run by the Under Secretary for Benefits and happened because a Department employee failed to process your information within the time limits the Secretary set. It does not change the criminal or forfeiture rules that apply to fiduciaries under chapter 61. If the Secretary finds an overpayment, the Secretary must send a notice that explains how to dispute it or ask for a waiver. The Secretary cannot start collection under section 3711 of title 31 until 90 days after that notice, unless waiting would make repayment harder, lead to a Treasury Offset Program referral, or would not be in your best interest.

Full Legal Text

Title 38, §5302B

Veterans' Benefits — Source: USLM XML via OLRC

(a)(1)Except as provided in paragraph (2), no individual may incur a debt to the United States that—
(A)arises from the participation of the individual in a program or benefit administered by the Under Secretary for Benefits; and
(B)is attributable to the failure of an employee or official of the Department to process information provided by or on behalf of that individual within applicable timeliness standards established by the Secretary.
(2)Nothing in this section shall be construed to affect the penal and forfeiture provisions for fiduciaries set forth in chapter 61 of this title.
(b)(1)If the Secretary determines that the Secretary has made an overpayment to an individual, the Secretary shall provide notice to the individual of the overpayment.
(2)Notice under paragraph (1) shall include a detailed explanation of the right of the individual—
(A)to dispute the overpayment, including a detailed explanation of the process by which to dispute the overpayment; or
(B)to request a waiver of indebtedness.
(c)(1)Subject to paragraph (2), the Secretary may not take any action under section 3711 of title 31 regarding an overpayment described in a notice under subsection (b) of this section until the date that is 90 days after the date the Secretary issues such notice.
(2)The Secretary may take action under section 3711 of title 31 regarding an overpayment described in a notice under subsection (b) of this section before the date that is 90 days after the date the Secretary issues such notice if the Secretary determines that delaying such action is—
(A)likely to make repayment of such overpayment more difficult for an individual;
(B)likely to cause an unpaid debt to be referred to the Treasury Offset Program; or
(C)not in the best interest of the individual.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Regulations

Pub. L. 117–328, div. U, title II, § 252(a)(3), Dec. 29, 2022, 136 Stat. 5463, provided that: “The Secretary of Veterans Affairs shall prescribe

Regulations

to establish standards under section 5302B(a)(2) of such title, as added by subsection (a), not later than 180 days after the date of the enactment of this Act [Dec. 29, 2022].”

Reference

Citations & Metadata

Citation

38 U.S.C. § 5302B

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73