Title 38 › PART V — BOARDS, ADMINISTRATIONS, AND SERVICES › CHAPTER 74 — VETERANS HEALTH ADMINISTRATION—PERSONNEL › SUBCHAPTER I — APPOINTMENTS › § 7406
The Secretary can create residency and internship programs and hire people for them without following the usual civil service or job-classification rules. An "internship" can include equivalent training as the Secretary decides under regulations. An "intern" is a person in an internship. The Secretary sets the job rules, required training, and the usual pay and pay terms for these positions. Pay rules can be applied retroactively if the usual pay changes. The Secretary can hire one or more hospitals or medical schools to act as a central administrative agency to handle stipend payments, benefits, and records. The Secretary can pay that agency, in advance or after the fact, to cover stipends, agreed-upon benefits (like hospitalization, medical care, life insurance), employer taxes under chapter 21 of the Internal Revenue Code of 1986, and a share of admin costs. Benefits paid this way replace similar benefits under title 5 and accepting them means giving up claims under title 5, but the service still counts for credit under section 8332 of title 5. The agency can take tax deductions, keep deposit and leave records, and allow pooled leave to be used at any participating facility.
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
Aug 21, 2026
Release point: 119-102