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Title 38, Veterans' BenefitsRelease 119-110

§6107 Reissuance of Benefits

Title 38 › PART IV — GENERAL ADMINISTRATIVE PROVISIONS › CHAPTER 61 — PENAL AND FORFEITURE PROVISIONS › § 6107

Last updated Sep 22, 2026|Official source

Summary

The Secretary must reissue to the beneficiary or the beneficiary’s new fiduciary any benefit amount that a fiduciary used improperly. The Secretary must try to get that money back from the fiduciary who misused it. If the Secretary recovers money later, the recovered amount must be sent to the beneficiary or the successor fiduciary for any part not already paid. If the beneficiary dies before payment, the money must go to the person or entity who would receive it under section 5121, but it cannot be paid to the fiduciary who misused the funds. Total payments cannot be more than the total amount misused. The Secretary must set rules and timing to decide if misuse was caused by the Secretary’s negligence. The Secretary cannot delay reissuing payments because of that review. The Secretary also does not have to make a negligence determination for every misuse case.

Full Legal Text

Title 38, §6107

Veterans' Benefits, Source: USLM XML via OLRC

(a)Reissuance of Misused Benefits.—
(1)In any case in which a fiduciary misuses all or part of an individual’s benefit paid to such fiduciary, the Secretary shall pay to the beneficiary or the beneficiary’s successor fiduciary an amount equal to the amount of such benefit so misused.
(2)In any case in which the Secretary reissues a benefit payment (in whole or in part) under paragraph (1), the Secretary shall make a good faith effort to obtain recoupment from the fiduciary to whom the payment was originally made.
(3)In any case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Secretary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary, as the case may be, to the extent that such amounts have not been paid under paragraph (1).
(b)Reissuance of Amounts in the Case of a Deceased Beneficiary.—
(1)If a beneficiary described in subsection (a)(1) predeceases a payment under such subsection, the Secretary shall pay such amount, subject to paragraph (2), to an individual or entity in accordance with section 5121 of this title.
(2)The Secretary may not make a payment under this subsection to a fiduciary who misused benefits of the beneficiary.
(c)Limitation on Total Amount Paid.—
The total of the amounts paid to a beneficiary or the beneficiary’s successor fiduciary under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary.
(d)Oversight of Negligence.—
(1)The Secretary shall establish methods and timing with respect to determining whether an instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary, is the result of negligence by the Secretary.
(2)The Secretary may not withhold the reissuing of a benefit payment under subsection (a)(1) by reason of a pending determination under paragraph (1).
(3)The Secretary is not required to make a determination under paragraph (1) for each instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2025—Pub. L. 119–56 amended section generally. Prior to amendment, section related to reissuance of benefits after misuse of benefits by a fiduciary in cases of negligent failure of the Secretary to investigate or monitor the fiduciary or in other cases. 2024—Subsecs. (c), (d). Pub. L. 118–114, § 2(1), (2), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 118–114, § 2(1), (3), redesignated subsec. (d) as (e) and substituted “this section” for “subsection (a) or (b)”. 2021—Subsec. (b)(1). Pub. L. 116–315, § 7005(a)(1), substituted “In any case not covered by subsection (a) in which a fiduciary” for “In any case in which a fiduciary described in paragraph (2)”. Subsec. (b)(2), (3). Pub. L. 116–315, § 7005(a)(2), (3), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Paragraph (1) applies to a fiduciary that— “(A) is not an individual; or “(B) is an individual who, for any month during a period when misuse occurs, serves 10 or more individuals who are beneficiaries under this title.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 Amendment Pub. L. 116–315, title VII, § 7005(b), Jan. 5, 2021, 134 Stat. 5059, provided that: “The

Amendments

made by subsection (a) [amending this section] shall apply with respect to any determination by the Secretary of Veterans Affairs made on or after the date of the enactment of this Act [Jan. 5, 2021] regarding the misuse of benefits by a fiduciary.”

Effective Date

Section applicable with respect to any determinations by the Secretary of Veterans Affairs made after Dec. 10, 2004, of misuse of funds by a fiduciary, see section 507(b)(2) of Pub. L. 108–454, set out as an

Effective Date

of 2004 Amendment note under section 5312 of this title.

Reference

Citations & Metadata

Citation

38 U.S.C. § 6107

Title 38, Veterans' Benefits

Last Updated

Sep 22, 2026

Release point: 119-110