Title 38 › Part PART V— - BOARDS, ADMINISTRATIONS, AND SERVICES › Chapter CHAPTER 74— - VETERANS HEALTH ADMINISTRATION—PERSONNEL › Subchapter SUBCHAPTER I— - APPOINTMENTS › § 7406
The Secretary can create residency and internship programs and hire people for those positions without using the usual civil service rules. Internship: includes equivalents the Secretary defines. Intern: a person doing an internship. The Secretary sets the job rules, required training, and the usual pay and terms while the person is working and training. Pay rules can be applied retroactively if customary pay changes. The Secretary may hire one of the participating hospitals or medical schools to act as a central agency to handle stipend payments, benefits, and records. The Department can pay that agency to cover stipends; hospitalization, medical care, life insurance, and other agreed benefits while the intern or resident works in a Department facility; employer taxes under chapter 21 of the Internal Revenue Code of 1986, if applicable; and its share of administrative costs. Benefits paid this way replace similar benefits under title 5, and accepting them means waiving claims to payments under this title or title 5, but the service still counts as creditable service under section 8332 of title 5. The central agency may deduct and deposit taxes, keep records of those deductions, and track leave. Leave can be pooled and used at any participating facility up to the person’s total accumulated leave.
Full Legal Text
Veterans' Benefits — Source: USLM XML via OLRC
Legislative History
Reference
Citation
38 U.S.C. § 7406
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73