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Title 38 — Veterans' BenefitsRelease 119-73not60

§3035 Allocation of Administration and of Program Costs

Title 38 › Part III— READJUSTMENT AND RELATED BENEFITS › Chapter 30— ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM › Subchapter IV— TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS › § 3035

Last updated Apr 5, 2026|Official source

Summary

The Department of Veterans Affairs must run the education assistance programs in this chapter unless another part says otherwise. Most payments for benefits under subchapter II come from VA readjustment benefit funds and from transfers from the Post‑Vietnam Era Veterans Education Account under section 3232(b)(2)(B). If a benefit created by section 3015(d) pays more than the rates in section 3015(a) or (b), the extra amount is paid from the Department of Defense Education Benefits Fund (section 2006 of title 10) or from Homeland Security appropriations. Payments for benefits under sections 3018A or 3018B are usually paid from the Department of Defense Education Benefits Fund, except that certain people named in those sections get payments from VA readjustment funds, and any increase under section 3015(f) is paid from the Post‑Vietnam Account under section 3222(a). Payments caused by transfers of entitlement under section 3020 are paid from the Department of Defense Education Benefits Fund or from Department of Transportation appropriations. Payments for subchapter III are paid from the Department of Defense Education Benefits Fund or from Homeland Security appropriations. Money from the Department of Defense Education Benefits Fund or from Homeland Security appropriations will be sent to VA as needed under transfer agreements made under section 2006 by the Secretary, the Secretary of Defense, and the Secretary of the Treasury, and under a VA‑Homeland Security agreement for DHS transfers. Tutorial assistance under section 3019 is paid so that the first $600 to a person comes from VA readjustment funds; any tutorial payments over $600 come from VA readjustment funds, the Department of Defense Education Benefits Fund, and Homeland Security appropriations.

Full Legal Text

Title 38, §3035

Veterans' Benefits — Source: USLM XML via OLRC

(a)Except to the extent otherwise specifically provided in this chapter, the educational assistance programs established by this chapter shall be administered by the Department of Veterans Affairs.
(b)(1)Except to the extent provided in paragraphs (2), (3), and (4), payments for entitlement earned under subchapter II of this chapter shall be made from funds appropriated to, or otherwise available to, the Department of Veterans Affairs for the payment of readjustment benefits and from transfers from the Post-Vietnam Era Veterans Education Account pursuant to section 3232(b)(2)(B) of this title.
(2)Payments for entitlement earned under subchapter II of this chapter that is established under section 3015(d) of this title at a rate in excess of the rate prescribed under subsection (a) or (b) of section 3015 of this title shall, to the extent of that excess, be made from the Department of Defense Education Benefits Fund established under section 2006 of title 10 or from appropriations made to the Department of Homeland Security, as appropriate.
(3)Payment for entitlements established under section 3018A or 3018B of this title shall be made—
(A)except as provided in subparagraphs (B) and (C) of this paragraph, from the Department of Defense Education Benefits Fund established under section 2006 of title 10;
(B)in the case of any individual described in section 3018A(a)(3), 3018B(a)(1)(C), or 3018B(a)(2)(C) of this title, from funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment benefits; and
(C)in the case of the increase in payments made under section 3015(f) of this title, from the Post-Vietnam Era Veterans Education Account established pursuant to section 3222(a) of this title.
(4)Payments attributable to the increased usage of benefits as a result of transfers of entitlement to basic educational assistance under section 3020 of this title shall be made from the Department of Defense Education Benefits Fund established under section 2006 of title 10 or from appropriations made to the Department of Transportation, as appropriate.
(c)Payments for educational assistance provided under subchapter III of this chapter shall be made from the Department of Defense Education Benefits Fund established under section 2006 of title 10 or from appropriations made to the Department of Homeland Security, as appropriate.
(d)Funds for the payment by the Secretary of benefits under this chapter that are to be paid from the Department of Defense Education Benefits Fund shall be transferred to the Department of Veterans Affairs from such Fund as necessary and in accordance with agreements entered into under section 2006 of title 10 by the Secretary, the Secretary of Defense, and the Secretary of the Treasury. Funds for the payment by the Secretary of benefits under this chapter that are to be paid from appropriations made to the Department of Homeland Security shall be transferred to the Department of Veterans Affairs as necessary. The Secretary and the Secretary of Homeland Security shall enter into an agreement for the manner in which such transfers are to be made.
(e)Payments for tutorial assistance benefits under section 3019 of this title shall be made—
(1)in the case of the first $600 of such benefits paid to an individual, from funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment benefits; and
(2)in the case of payments to an individual for such benefits in excess of $600, from—
(A)funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment benefits;
(B)the Department of Defense Education Benefits Fund established under section 2006 of title 10; and
(C)funds appropriated to the Department of Homeland Security,

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2002—Subsec. (b)(1). Pub. L. 107–314, § 643(b)(1), and Pub. L. 107–330, § 308(c)(1)(A), amended par. (1) identically, substituting “paragraphs (2), (3), and (4),” for “paragraphs (2) and (3) of this subsection,”. Subsec. (b)(2). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”. Subsec. (b)(4). Pub. L. 107–314, § 643(b)(2), and Pub. L. 107–330, § 308(c)(1)(B), amended subsec. (b) identically, adding par. (4). Subsecs. (c) to (e). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation” wherever appearing. 1996—Subsec. (b)(1). Pub. L. 104–275 inserted before period at end “and from transfers from the Post-Vietnam Era Veterans Education Account pursuant to section 3232(b)(2)(B) of this title”. 1994—Subsec. (b)(2). Pub. L. 103–446, § 1201(d)(7)(A), substituted “section 3015(d)” for “section 3015(c)”. Subsec. (b)(3)(C). Pub. L. 103–446, § 1201(d)(7)(B), substituted “section 3015(f)” for “section 3015(e)”. 1992—Subsec. (b)(3). Pub. L. 102–484 inserted “or 3018B” in introductory provisions and “, 3018B(a)(1)(C), or 3018B(a)(2)(C)” in subpar. (B). 1991—Pub. L. 102–83, § 5(a), renumbered section 1435 of this title as this section. Subsec. (b)(2). Pub. L. 102–83, § 5(c)(1), substituted “3015(c)” for “1415(c)” and “3015” for “1415”. Subsec. (b)(3). Pub. L. 102–83, § 5(c)(1), substituted “3018A” for “1418A” in introductory provisions, “3018A(a)(3)” for “1418A(a)(3)” in subpar. (B), and “3015(e)” for “1415(e)” and “3222(a)” for “1622(a)” in subpar. (C). Subsec. (e). Pub. L. 102–83, § 5(c)(1), substituted “3019” for “1419” in introductory provisions. 1990—Subsec. (b)(1). Pub. L. 101–510, § 561(b)(3)(A), substituted “paragraphs (2) and (3)” for “paragraph (2)”. Subsec. (b)(3). Pub. L. 101–510, § 561(b)(3)(B), added par. (3). 1989—Subsecs. (a), (b)(1), (d), (e)(1), (2)(A). Pub. L. 101–237 substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively, wherever appearing. 1988—Subsec. (e). Pub. L. 100–689 added subsec. (e). 1986—Subsec. (b)(2). Pub. L. 99–576 substituted “subsection (a) or (b) of section 1415” for “section 1415(a)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2002

Amendments

Pub. L. 107–330, title III, § 308(c)(2), Dec. 6, 2002, 116 Stat. 2828, provided that: “The

Amendments

made by this subsection [amending this section] shall take effect as if included in the enactment of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107), to which such

Amendments

relate.” Pub. L. 107–314, div. A, title VI, § 643(c)(2), Dec. 2, 2002, 116 Stat. 2578, provided that: “The

Amendments

made by subsection (b) [amending this section] shall take effect as if made by section 654 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1153).” Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.

Reference

Citations & Metadata

Citation

38 U.S.C. § 3035

Title 38 — Veterans' Benefits

Last Updated

Apr 5, 2026

Release point: 119-73not60