38 C.F.R. §§ 21.260–21.276

§21.260. Subsistence allowance.

38 C.F.R. § 21.260

(a)

General. A veteran participating in a rehabilitation program under 38 U.S.C. chapter 31 will receive a monthly subsistence allowance at the rates in paragraph (b) of this section, unless the veteran elects to receive an alternate payment (for the purposes of part 21, subpart A, referred to as the Post-9/11 subsistence allowance) as specified in paragraph (c) of this section, or payment at the rate of monthly educational assistance allowance payable under 38 U.S.C. chapter 30 for the veteran's type of training. See § 21.264(a) for election of payment at the chapter 30 rate and § 21.264(b) for election of the Post-9/11 subsistence allowance. See §§ 21.7136, 21.7137, and 21.7138 to determine the applicable chapter 30 rate.

(b)

Rate of payment. VA pays subsistence allowance at the rates stated in the following tables:

(1)

Subsistence allowance is paid at the following rates effective October 1, 1994, and before November 2, 1994:

(2)

Subsistence allowance is paid at the following rates effective November 2, 1994, and before October 1, 1995:

(3)

The following table states the monthly rates of subsistence allowance payable for participation in a rehabilitation program under 38 U.S.C. Chapter 31 that occurs after September 30, 1995, and before October 1, 1996:

(4)

The following table states the monthly rates of subsistence allowance payable for participation in a rehabilitation program under 38 U.S.C. Chapter 31 that occurs after September 30, 1996, and before October 1, 1997:

(5)

The following table states the monthly rates of subsistence allowance payable for participation in a rehabilitation program under 38 U.S.C. Chapter 31 that occurs after September 30, 1997, and before November 1, 1998:

(6)

The following table states the monthly rates of subsistence allowance payable for participation in a rehabilitation program under 38 U.S.C. Chapter 31 that occurs after September 30, 1998, and before October 1, 1999:

(7)

The following table states the monthly rates of subsistence allowance payable for participation in a rehabilitation program under 38 U.S.C. Chapter 31 that occurs after September 30, 1999, and before October 1, 2000:

(c)

Rate of payment of Post-9/11 subsistence allowance. In lieu of the subsistence allowance payable under paragraph (b) of this section, VA pays the Post-9/11 subsistence allowance at the rates in the table at the end of this paragraph, effective August 1, 2011, based on the basic allowance for housing payable under 37 U.S.C. 403. For purposes of the following table:

(1)

BAH means “the applicable amount of basic allowance for housing payable under 37 U.S.C. 403 for a member of the military with dependents in pay grade E-5 residing in the military housing area that encompasses all or the majority portion of the ZIP code area in which is located the institution, agency, or employer providing the rehabilitation program concerned”.

(2)

BAH National Average means “the average (i.e., unweighted arithmetic mean) monthly amount of the basic allowance for housing payable under 37 U.S.C. 403 for a member of the military with dependents in pay grade E-5 residing in the United States”.

(d)

Subsistence allowance precluded. A veteran may not receive a subsistence allowance when VA is providing the veteran only the following services:

(1)

Initial evaluation;

(2)

Placement and post-placement services under 38 U.S.C. 3105(b); or

(3)

Counseling.

(e)

Dependents. The term dependent means a spouse, child or dependent parent who meets the definition of relationship specified in § 3.50, § 3.57 or § 3.59 of this chapter.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 51 FR 9955, Mar. 24, 1986; 52 FR 42113, Nov. 3, 1987; 54 FR 4283, Jan. 30, 1989; 56 FR 7567, Feb. 25, 1991; 60 FR 4561, Jan. 24, 1995; 65 FR 51764, Aug. 25, 2000; 65 FR 60724, Oct. 12, 2000; 76 FR 34000, June 10, 2011; 76 FR 45703, Aug. 1, 2011]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 51 FR 9955, Mar. 24, 1986; 52 FR 42113, Nov. 3, 1987; 54 FR 4283, Jan. 30, 1989; 56 FR 7567, Feb. 25, 1991; 60 FR 4561, Jan. 24, 1995; 65 FR 51764, Aug. 25, 2000; 65 FR 60724, Oct. 12, 2000; 76 FR 34000, June 10, 2011; 76 FR 45703, Aug. 1, 2011]

§21.262. Procurement and reimbursement of cost for training and rehabilitation services, supplies, or facilities.

38 C.F.R. § 21.262

(a)

General. Whenever services, supplies and facilities from source outside VA are required by any of these regulations, they shall be provided through contract, agreement of other cooperative arrangement between VA and the vendor.

(b)

VA Acquisition Regulations. Payments of charges for training and rehabilitation services, supplies, or facilities, authorized under Chapter 31 are subject to the provisions of applicable VA Acquisition Regulations especially 48 CFR part 831 and subpart 871.2.

Notes, amendments, and revision history

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.264. Election of payment at the 38 U.S.C. chapter 30 educational assistance rate or election of payment of Post-9/11 subsistence allowance.

38 C.F.R. § 21.264

(a)

Election of chapter 30 educational assistance rate.

(1)

Eligibility. A veteran who applies for, and is found entitled to training or education under Chapter 31, may elect to receive payment at the educational allowance rate and other assistance furnished under Chapter 30, for similar training in lieu of a subsistence allowance, provided the following criteria are met:

(i)

The veteran has remaining eligibility for, and entitlement to educational assistance under Chapter 30;

(ii)

The veteran enrolls in a program of education or training approved for benefits under Chapter 30;

(iii)

The program of education is part of an IWRP (Individualized Written Rehabilitation Plan) approved by VA.

(2)

Reelection of subsistence allowance. Reelection of payment of benefits at the Chapter 31 subsistence allowance rate may be made only after completion of a term, quarter, semester, or other period of instruction unless:

(i)

Chapter 30 eligibility or entitlement ends earlier;

(ii)

Failure to approve immediate reelection would prevent the veteran from continuing in the rehabilitation program.

(3)

Services precluded. A veteran entitled to vocational rehabilitation training or education who elects payment at the educational assistance rate payable under Chapter 30 shall be provided the same training and rehabilitation services as other veterans under Chapter 31, but may not be provided:

(i)

Subsistence allowances;

(ii)

Loans from the revolving fund loan;

(iii)

Payment of costs for—

(A)

Vocational and other training services;

(B)

Supplies; or

(C)

Individualized tutorial assistance.

(4)

Chapter 30 provisions applicable. A veteran who has elected payment at the Chapter 30 educational assistance rate must meet the same terms and conditions as other veterans pursuing similar training under these programs.

(b)

Election of payment of Post-9/11 subsistence allowance—

(1)

Eligibility. Effective August 1, 2011, a veteran who applies and is eligible for training or education under chapter 31 may elect to receive payment of the Post-9/11 subsistence allowance under § 21.260(c) in lieu of a subsistence allowance under § 21.260(b), provided the veteran has remaining eligibility for, and entitlement to, educational assistance under chapter 33, Post-9/11 GI Bill.

(2)

Reelection of subsistence allowance under § 21.260(b). Reelection of payment of benefits at the chapter 31 subsistence allowance rate under § 21.260(b) may be made only after completion of a term, quarter, semester, or other period of instruction unless:

(i)

Chapter 33 eligibility or entitlement ends earlier; or

(ii)

Failure to approve immediate reelection would prevent the veteran from continuing in the rehabilitation program.

(3)

Services under chapter 31. A veteran who elects payment of the Post-9/11 subsistence allowance remains entitled to all other services and assistance under chapter 31.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4283, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992; 76 FR 45704, Aug. 1, 2011]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4283, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992; 76 FR 45704, Aug. 1, 2011]

§21.266. Payment of subsistence allowance under special conditions.

38 C.F.R. § 21.266

(a)

Hospitalized veteran or serviceperson. A veteran pursuing a VA rehabilitation program under Chapter 31 while hospitalized in a VA medical center or in any other hospital at VA expense may receive the subsistence allowance otherwise payable. The subsistence allowance will be paid at the rates specified in § 21.260, except:

(1)

The amount of subsistence allowance or the allowance provided under § 21.264 that may be paid to a veteran pursuing a rehabilitation program for any month for which the veteran receives compensation at the rate prescribed in § 3.401(h) of this title, as the result of hospital treatment (not including post-hospital convalescence) or observation at the expense of VA may not exceed, when added to any compensation to which such veteran is entitled for the month, an amount equal to the greater of:

(i)

The sum of—

(A)

the amount of monthly subsistence of the allowance payable under § 21.264, and (B) the amount of monthly disability compensation that would be paid to the veteran if he or she was not receiving compensation at the temporary 100 percent rate as the result of such hospital treatment or observation, or

(ii)

The amount of monthly disability compensation payable under § 3.401(h) of this title.

(2)

A veteran pursuing a rehabilitation program while in post hospital convalescence (§ 3.401(h)) will be paid the regular rate of subsistence allowance.

(3)

A serviceperson pursuing a rehabilitation program under Chapter 31 will not receive a subsistence allowance if he or she is hospitalized in a medical facility under the jurisdiction of the Secretary pending final discharge from the armed forces.

(b)

Specialized rehabilitation facility—

(1)

A veteran in a specialized rehabilitation facility will be paid the regular rate of subsistence allowance at the institutional rate. VA may pay the cost of room and board in lieu of subsistence allowance when:

(i)

The specialized rehabilitation facility requires that similarly circumstanced persons pay the same charges for room and board, and

(ii)

The case manager finds and the veteran agrees that it is to the veteran's advantage for VA to pay the cost of room and board.

(2)

Even though VA pays the cost of room and board, the veteran will be paid that portion of subsistence allowance otherwise payable for dependents.

(c)

Non-pay work experience or training in a Federal agency. A veteran in an on-job program or being provided work experience in a Federal agency at no or nominal pay shall receive subsistence allowance at the institutional rate.

(d)

Extended evaluation and independent living program. A veteran in a program of extended evaluation or independent living service program shall be paid subsistence allowance for full or part-time participation at the rate specified for institutional training in § 21.260. If an extended evaluation or independent living program is pursued on a less than a quarter-time basis, as measured under § 21.310(d), VA will only pay established charges for services furnished.

(e)

On-job training. A veteran in an on-job training program will be paid subsistence allowance at the rate provided under § 21.260(b), except that subsistence allowance may not exceed the difference between the monthly training wage, exclusive of overtime, and the entrance journeyman wage for the veteran's objective.

Notes, amendments, and revision history

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.268. Employment adjustment allowance.

38 C.F.R. § 21.268

(a)

General. A veteran who completes a period of rehabilitation and reaches the point of employability will be paid an employment adjustment allowance for a period of two months at the full-time subsistence allowance rate for the type of program the veteran was last pursuing. (See § 21.190(d))

(b)

Reelection of subsistence allowance. A veteran who has elected payment at the Chapter 30 educational assistance allowance rate may be paid an employment adjustment allowance only if he or she reelects subsistence allowance to become effective no later than the day following completion of the period of rehabilitation to the point of employability.

(c)

Special programs. An employment adjustment allowance will be paid at the institutional rate of subsistence allowance for veterans in any of the following programs:

(1)

On-job training at no or nominal pay in a Federal agency;

(2)

Training in the home program;

(3)

Independent instructor program;

(4)

Cooperative program; or

(5)

Self-employment program.

(d)

Combination program. A veteran who has pursued a combination program will be paid an employment adjustment allowance at the full-time rate for the type of training the veteran was actually pursuing at the completion of the period of rehabilitation to the point of employability.

(e)

Subsequent payments of employment adjustment allowance. If a veteran has ever received an employment adjustment allowance following rehabilitation to the point of employability, he or she may, nevertheless, receive it again when completing an additional rehabilitation program to the point of employability if:

(1)

The prior determination of rehabilitation to the point of employability is set aside; and

(2)

The veteran is reinducted into a new vocational rehabilitation program as provided in § 21.282.

(f)

Special situations. Effective August 6, 2013, a veteran who has been displaced as the result of a natural or other disaster while being paid an employment adjustment allowance may receive up to an additional two months of employment adjustment allowance, if satisfactorily following a program of employment services.

(g)

Employment adjustment allowance not charged against entitlement. An employment adjustment allowance will not be charged against the veteran's basic entitlement.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4284, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992; 79 FR 15921, Mar. 24, 2014]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4284, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992; 79 FR 15921, Mar. 24, 2014]

§21.270. Payment of subsistence allowance during leave and other periods.

38 C.F.R. § 21.270

(a)

Payment during leave. VA will pay an eligible veteran a subsistence allowance during any period of approved leave including a veteran:

(1)

Receiving medical or rehabilitation services on an outpatient basis at a VA medical center, and who provides his or her own room and board;

(2)

Receiving service department retirement or retained pay while not on active duty;

(3)

Hospitalized at a VA medical center while on approved leave. If the veteran becomes eligible for payment of disability compensation at the temporary 100 percent rate, under § 3.401(h) of this title due to hospitalization, payment will be made under provisions of § 21.266(a).

(b)

Payment for other periods. Subsistence allowance will be paid for:

(1)

Weekend and legal holidays, or customary vacation periods associated with them;

(2)

Periods in which the school is closed temporarily under emergency conditions described in § 21.4138(f).

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 76 FR 45705, Aug. 1, 2011]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 76 FR 45705, Aug. 1, 2011]

§21.272. Veteran-student services.

38 C.F.R. § 21.272

(a)

Eligibility. Veterans who are pursuing a rehabilitation program under chapter 31 on a three-quarter or full-time basis are eligible to receive a work-study allowance.

(b)

Selection criteria. Whenever feasible, VA will give priority to veterans with service-connected disabilities rated at 30 percent or more disabling in selection of recipients of this allowance. VA shall consider the following additional selection criteria:

(1)

Need of the veteran to augment the subsistence allowance or payment made by the Chapter 30 rate;

(2)

Motivation of the veteran; and

(3)

Compatibility of the work assignment with the veteran's physical condition.

(c)

Utilization. Veteran-student services may be utilized in connection with:

(1)

VA outreach service program as carried out under the supervision of a VA employee;

(2)

Preparation and processing of necessary VA papers and other documents at educational institutions, regional offices or other VA facilities;

(3)

Hospital and domiciliary care and medical treatment at VA facilities; and

(4)

Any other appropriate activity of VA.

(d)

Rate of payment.

(1)

In return for the veterans' agreement to perform services for VA totaling 25 times the number of weeks contained in an enrollment period, VA will pay an allowance equal to the higher of:

(i)

The hourly minimum wage in effect under section 6(a) of the Fair Labor Standards Act of 1938 times the number of hours the veteran has agreed to work; or

(ii)

The hourly minimum wage under comparable law of the State in which the services are to be performed times the number of hours the veteran has agreed to work.

(2)

VA will pay proportionately less to a veteran who agrees to perform a lesser number of hours of services.

(e)

Payment in advance. VA will pay in advance an amount equal to 40 percent of the total amount payable under the contract (but not more than an amount equal to 50 times the applicable hourly minimum wage).

(f)

Veteran reduces rate of training. In the event the veteran reduces his or her training to less than three-quarter time before completing an agreement, the veteran, with the approval of the Director of the VA field station, or designee, may be permitted to complete the portions of an agreement in the same or immediately following term, quarter or semester in which the veteran ceases to be at least a three-quarter time student.

(g)

Veteran terminates training. If the veteran terminates all training before completing an agreement, VA:

(1)

Will permit him or her to complete the portion of the agreement represented by the sum of money VA has advanced to the veteran for which he or she has not performed any services; but

(2)

Will not permit him or her to complete that portion of an agreement for which no advance has been made.

(h)

Indebtedness for unperformed service.

(1)

If the veteran has received an advance for hours of unperformed service that remain after application of paragraphs (f) and (g) of this section, that advance:

(i)

Will be a debt due the United States; and

(ii)

Will be subject to recovery in the same manner as any other debt due the United States;

(2)

For each hour of unperformed service, the amount of indebtedness shall equal the hourly wage upon which the contract was made.

(i)

Survey. VA will conduct an annual survey of its regional offices to determine the number of veterans whose services can be utilized effectively.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984; 50 FR 9622, Mar. 11, 1985; 54 FR 4284, Jan. 30, 1989, as amended at 56 FR 14648, Apr. 11, 1991; 57 FR 57108, Dec. 3, 1992; 62 FR 17709, Apr. 11, 1997]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984; 50 FR 9622, Mar. 11, 1985; 54 FR 4284, Jan. 30, 1989, as amended at 56 FR 14648, Apr. 11, 1991; 57 FR 57108, Dec. 3, 1992; 62 FR 17709, Apr. 11, 1997]

§21.274. Revolving fund loan.

38 C.F.R. § 21.274

(a)

Establishment of revolving fund loan. A revolving fund is established to provide advances to veterans who would otherwise be unable to begin or continue in a rehabilitation program without such assistance.

(b)

Definition. The term advance means a non-interest loan from the revolving fund.

(c)

Eligibility. A veteran is eligible for an advance if the following conditions are present:

(1)

An Individualized Written Rehabilitation Plan, Individualized Extended Evaluation Plan, or Individualized Independent Living Plan has been prepared; and

(2)

The veteran and VA staff agree on the terms and conditions of the plan.

(d)

Advance conditions.

(1)

An advance may be approved when the following conditions are met:

(i)

The purpose of the advance is clearly and directly related to beginning, continuing, or reentering a rehabilitation program;

(ii)

The veteran would otherwise be unable to begin, continue or reenter his or her rehabilitation program;

(iii)

The advance does not exceed either the amount needed, or twice the monthly subsistence allowance for a veteran without dependents in full-time institutional training specified in § 21.260(b); and

(iv)

The veteran has elected, or is in receipt of, subsistence allowance.

(2)

An advance may not be made to a veteran who meets conditions described in paragraph (d)(1) of this section if the veteran:

(i)

Has not fully repaid an advance;

(ii)

Does not agree to the terms and conditions for repayment; or

(iii)

Will not be eligible in the future for payments of pension, compensation, subsistence allowance, educational assistance, or retired pay.

(e)

Determination of the amount of the advance.

(1)

If the conditions described in paragraphs (c) and (d)(2) of this section are met, a Counseling Psychologist (CP), Vocational Rehabilitation Counselor (VRC), or vocational rehabilitation specialist in the Veteran Readiness and Employment (VR&E) Division will:

(i)

Document the findings; and

(ii)

Determine the amount of the advance.

(2)

Loans will be made in multiples of $10.

(f)

Repayment—

(1)

Offset possible. The amount advanced will be repaid in monthly installments from future VA payments for compensation, pension, subsistence allowance, educational assistance allowance or retired pay.

(i)

Repayment will begin on the earlier of the following dates:

(A)

The first day of the month following the month in which the advance is granted; or

(B)

The first day of the month after receipt of the advance in which the veteran receives a subsistence allowance

(ii)

The VR&E staff person who approves the advance will determine the rate of repayment.

(iii)

The monthly rate of repayment may not be less than 10 percent of the amount advanced unless the monthly benefit against which the advance is being offset is less than that amount.

(2)

Offset not possible. If the amount advanced cannot be repaid from the benefits cited in paragraph (f)(1) of this section because the veteran is not in receipt of any of these benefits, collection of the amount due will be made in the same manner as any other debt payable to VA.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 76 FR 45705, Aug. 1, 2011; 81 FR 26132, May 2, 2016; 87 FR 8743, Feb. 16, 2022]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 76 FR 45705, Aug. 1, 2011; 81 FR 26132, May 2, 2016; 87 FR 8743, Feb. 16, 2022]

§21.276. Incarcerated veterans.

38 C.F.R. § 21.276

(a)

General. The provisions contained in this section describe the limitations on payment of subsistence allowance and charges for tuition and fees for:

(1)

Incarcerated veterans;

(2)

Formerly incarcerated veterans in halfway houses; and

(3)

Incarcerated and formerly incarcerated veterans in work release programs.

(b)

Definition. The term incarcerated veteran means any veteran incarcerated in a Federal, State, or local prison, jail, or other penal institution for a felony. It does not include any veteran who is pursuing a rehabilitation program under Chapter 31 while residing in a halfway house or participating in a work-release program in connection with such veteran's conviction of a felony.

(c)

Subsistence allowance not paid to an incarcerated veteran. A subsistence allowance may not be paid to an incarcerated veteran convicted of a felony, but VA may pay all or part of the veteran's tuition and fees.

(d)

Halfway house. A subsistence allowance may be paid to a veteran pursuing a rehabilitation program while residing in a halfway house as a result of a felony conviction even though all of the veteran's living expenses are paid by a non-VA Federal, State, or local government program.

(e)

Work-release program. A subsistence allowance may be paid to a veteran in a work-release program as a result of a felony conviction.

(f)

Services. VA may provide other appropriate services, including but not limited to medical, reader service, and tutorial assistance necessary for the veteran to pursue his or her rehabilitation program.

(g)

Payment of allowance at the rates paid under Chapter 30. A veteran incarcerated for a felony conviction or a veteran in a halfway house or work-release program who elects payment at the educational assistance rate paid under Chapter 30 shall be paid in accordance with the provisions of law applicable to other incarcerated veterans training under Chapter 30.

(h)

Apportionment. Apportionment of subsistence allowance which began before October 17, 1980 made to dependents of an incarcerated veteran convicted of a felony may be continued.

Notes, amendments, and revision history

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 51 FR 22807, June 23, 1986; 54 FR 4284, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992]

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[49 FR 40814, Oct. 18, 1984, as amended at 51 FR 22807, June 23, 1986; 54 FR 4284, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992]