Title 38, Veterans' BenefitsRelease 119-110
§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
Summary
Makes the Department of Veterans Affairs (VA) run the education programs in this chapter unless the law says otherwise. It also says which agency must pay for the different kinds of education benefits. Most payments for benefits under subchapter II come from VA readjustment funds and from the Post‑Vietnam Era Veterans Education Account (see 3232(b)(2)(B)). Extra payments above the rates set in 3015(a) or (b) that come from 3015(d) must come from the Department of Defense Education Benefits Fund (10 U.S.C. 2006) or from Department of Homeland Security (DHS) money. Payments for benefits created by 3018A or 3018B usually come from the DoD Fund, except certain people named in those sections get VA money, and increases under 3015(f) come from the Post‑Vietnam Account (3222(a)). Benefits caused by transfers under 3020 are paid from the DoD Fund or from Department of Transportation money as appropriate. Subchapter III benefits come from the DoD Fund or DHS money. The DoD Fund or DHS funds are moved to the VA as needed under agreements among the Secretaries. Tutorial aid under 3019 pays the first $600 from VA readjustment funds; any amount over $600 is paid partly from VA funds, partly from the DoD Fund, and partly from DHS funds in the same share used for that person’s education allowance.
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,
in the same proportion as the Fund described in subclause (B) of this clause and the funds described in subclause (A) or (C) of this clause are used to pay the educational assistance allowance to the individual under this chapter.
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
Sep 22, 2026
Release point: 119-110