Title 38Veterans' BenefitsRelease 119-73

§741 Executive Management Fellowship Program

Title 38 › Part PART I— - GENERAL PROVISIONS › Chapter CHAPTER 7— - EMPLOYEES › Subchapter SUBCHAPTER III— - EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM › § 741

Last updated Apr 6, 2026|Official source

Summary

Creates an Executive Management Fellowship Program at the Department of Veterans Affairs that swaps people for one year so each side learns from the other. VA employees from the Veterans Benefits Administration or the Veterans Health Administration spend a year working and training at private companies that provide health care or services like the VA. Employees from private companies spend a year working and training at the VA. The Secretary must make agreements with private companies and, each August, pick between 18 and 30 VA employees and between 18 and 30 private-sector employees for the fellowships. When possible, the Secretary should pick veterans in a way that reflects U.S. veteran demographics and give preference to those who represent or serve rural areas. A VA employee must be paid at least the GS‑14 minimum and no more than the minimum pay for a Senior Executive Service member or the chapter 74 minimum, must apply and sign an agreement, and private employees must have duties like those VA employees, apply, and sign an agreement. Each fellowship lasts one year. A VA fellow must sign a written agreement to take the fellowship, to work full time at the VBA or VHA for at least 2 years after the fellowship, and not take a job in the same industry as the host private company for 2 years after the fellowship. Agreements depend on funds being provided and must spell out damages for breach. VA fellows stay VA employees for pay, benefits, and promotions. Private fellows remain employees of their company and are treated as VA contractors during the fellowship. Fellows must send a report to the Secretary within 60 days after finishing, and the Secretary must send that report unchanged to the Senate and House Veterans’ Affairs Committees within 7 days. Definitions used: Department participant = a VA employee in the program; private-sector entity = a private company (including public‑private partnerships); private-sector participant = a private company employee in the program.

Full Legal Text

Title 38, §741

Veterans' Benefits — Source: USLM XML via OLRC

(a)There is in the Department an Executive Management Fellowship Program. The purpose of the program shall be to provide—
(1)eligible employees of the Veterans Benefits Administration and the Veterans Health Administration with training and experience in the private sector; and
(2)eligible employees of a private-sector entity with training and experience in the Department of Veterans Affairs.
(b)(1)A fellowship provided under this section is a 1-year fellowship during which—
(A)with respect to a Department participant, the participant receives training and experience at a private-sector entity that is engaged in the administration and delivery of health care or other services similar to the benefits administered by the Secretary; and
(B)with respect to a private-sector participant, the participant receives training and experience at the Veterans Benefits Administration or the Veterans Health Administration.
(2)The Secretary shall enter into such agreements with private-sector entities as are necessary to carry out this section.
(c)(1)In August of each year, the Secretary shall select—
(A)not fewer than 18 and not more than 30 eligible employees of the Veterans Benefits Administration and the Veterans Health Administration to receive a fellowship under this section; and
(B)not fewer than 18 and not more than 30 eligible employees of private-sector entities to receive a fellowship under this section.
(2)To the extent practicable, the Secretary shall select eligible employees under subparagraphs (A) and (B) of paragraph (1) from among eligible employees who are veterans in a manner that is reflective of the demographics of the veteran population of the United States and that whenever practicable provides a preference to such employees who represent or service rural areas.
(d)For the purposes of this section, an eligible employee is—
(1)with respect to an employee of the Veterans Benefits Administration or the Veterans Health Administration, an employee who—
(A)is compensated at a rate of basic pay not less than the minimum rate of basic pay payable for grade GS–14 of the General Schedule and not more than either the minimum rate of basic pay payable to a member of the Senior Executive Service under section 5382 of title 5 or the minimum rate of basic pay payable pursuant to chapter 74 of this title, as the case may be;
(B)enters into an agreement with the Secretary under subsection (e); and
(C)submits to the Secretary an application containing such information and assurances as the Secretary may require; and
(2)with respect to an employee of a private-sector entity, an employee who—
(A)is employed in a position whose duties and responsibilities are commensurate with an employee of the Department described in paragraph (1);
(B)enters into an agreement with the Secretary under subsection (e); and
(C)submits to the Secretary an application containing such information and assurances as the Secretary may require.
(e)(1)An agreement between the Secretary and a Department participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
(A)The Secretary’s agreement to provide the participant with a fellowship under this section;
(B)The participant’s agreement—
(i)to accept the fellowship;
(ii)after completion of the fellowship, to serve as a full-time employee in the Veterans Benefits Administration or the Veterans Health Administration for at least 2 years as specified in the agreement; and
(iii)that, during the 2-year period beginning on the last day of the fellowship, the participant will not accept employment in the same industry as the industry of the private-sector entity at which the participant accepts the fellowship.
(C)A provision that any financial obligation of the United States arising out of an agreement entered into under this subchapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated.
(D)A statement of the damages to which the United States is entitled under this subchapter for the participant’s breach of the agreement.
(E)Such other terms as the Secretary determines are required to be included in the agreement.
(2)An agreement between the Secretary and a private-sector participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
(A)The Secretary’s agreement to provide the participant with a fellowship under this section.
(B)The participant’s agreement to accept the fellowship.
(C)Such other terms as the Secretary determines are required to be included in the agreement.
(f)(1)A Department participant shall be considered an employee of the Department for all purposes, including for purposes of receiving a salary and benefits, and shall remain eligible for all promotion and incentive programs otherwise available to such an employee.
(2)A private-sector participant shall be considered an employee of the private-sector entity that employs the participant for all purposes, including for purposes of receiving a salary and benefits, and during the fellowship shall be treated as a contractor of the Department.
(g)(1)Not later than 60 days after completing a fellowship under this section, a recipient of the fellowship shall submit to the Secretary a report on the fellowship.
(2)Each such report shall describe the duties of the recipient during the fellowship and any recommendations of the recipient for the application by the Secretary of industry processes, technologies, and best practices.
(3)Not later than 7 days after receiving each such report, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives such report without change.
(h)In this section:
(1)The term “Department participant” means an employee of the Veterans Benefits Administration or the Veterans Health Administration who is participating in the fellowship under this section.
(2)The term “private-sector entity” includes an entity operating under a public-private partnership.
(3)The term “private-sector participant” means an employee of a private-sector entity who is participating in the fellowship under this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Grade GS–14 of the General Schedule, referred to in subsec. (d)(1)(A), is set out under section 5332 of Title 5, Government Organization and Employees.

Statutory Notes and Related Subsidiaries

Deadline for Implementation Pub. L. 115–46, title II, § 202(b), Aug. 12, 2017, 131 Stat. 962, provided that: “Not later than 1 year after the date of the enactment of this Act [Aug. 12, 2017], the Secretary of Veterans Affairs shall implement the Executive Management Fellowship Program required under section 741 of title 38, United States Code, as added by subsection (a).”

Reference

Citations & Metadata

Citation

38 U.S.C. § 741

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73