---
kind: "section"
citation: "38 U.S.C. § 3035"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3035"
heading: "Allocation of administration and of program costs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3035"
units:
  - "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. Allocation of administration and of program costs

- (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)](#b-2), [(3)](#b-3), and [(4)](#b-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](/usc/38/4303.md?p=2) and from transfers from the Post-[Vietnam Era](/usc/38/101.md?p=29) [Veterans](/usc/38/3701.md?p=b-2) Education Account pursuant to [section 3232(b)(2)(B) of this title](/usc/38/3232.md?p=b-2-B).
  - (2) Payments for entitlement earned under subchapter II of this chapter that is established under [section 3015(d) of this title](/usc/38/3015.md?p=d) at a rate in excess of the rate prescribed under subsection (a) or (b) of [section 3015 of this title](/usc/38/3015.md) shall, to the extent of that excess, be made from the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) Fund established under [section 2006 of title 10](/usc/10/2006.md) or from appropriations made to the [Department](/usc/38/101.md?p=1) of Homeland Security, as appropriate.
  - (3) Payment for entitlements established under section [3018A](/usc/38/3018A.md) or [3018B](/usc/38/3018B.md) of this title shall be made—
    - (A) except as provided in subparagraphs (B) and (C) of this paragraph, from the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) Fund established under [section 2006 of title 10](/usc/10/2006.md);
    - (B) in the case of any individual described in section [3018A(a)(3)](/usc/38/3018A.md?p=a-3), [3018B(a)(1)(C)](/usc/38/3018B.md?p=a-1-C), or [3018B(a)(2)(C)](/usc/38/3018B.md?p=a-2-C) of this title, from funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment [benefits](/usc/38/4303.md?p=2); and
    - (C) in the case of the increase in payments made under [section 3015(f) of this title](/usc/38/3015.md?p=f), from the Post-[Vietnam Era](/usc/38/101.md?p=29) [Veterans](/usc/38/3701.md?p=b-2) Education Account established pursuant to [section 3222(a) of this title](/usc/38/3222.md?p=a).
  - (4) Payments attributable to the increased usage of [benefits](/usc/38/4303.md?p=2) as a result of transfers of entitlement to [basic educational assistance](/usc/38/3002.md?p=1) under [section 3020 of this title](/usc/38/3020.md) shall be made from the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) Fund established under [section 2006 of title 10](/usc/10/2006.md) or from appropriations made to the [Department](/usc/38/101.md?p=1) of Transportation, as appropriate.
- (c) Payments for educational assistance provided under subchapter III of this chapter shall be made from the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) Fund established under [section 2006 of title 10](/usc/10/2006.md) or from appropriations made to the [Department](/usc/38/101.md?p=1) of Homeland Security, as appropriate.
- (d) Funds for the payment by the [Secretary](/usc/38/4101.md?p=8) of [benefits](/usc/38/4303.md?p=2) under this chapter that are to be paid from the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) 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](/usc/10/2006.md) by the [Secretary](/usc/38/4101.md?p=8), the [Secretary of Defense](/usc/38/3002.md?p=5), and the [Secretary](/usc/38/4101.md?p=8) of the Treasury. Funds for the payment by the [Secretary](/usc/38/4101.md?p=8) of [benefits](/usc/38/4303.md?p=2) under this chapter that are to be paid from appropriations made to the [Department](/usc/38/101.md?p=1) of Homeland Security shall be transferred to the Department of Veterans Affairs as necessary. The [Secretary](/usc/38/4101.md?p=8) and the [Secretary](/usc/38/4101.md?p=8) 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](/usc/38/4303.md?p=2) under [section 3019 of this title](/usc/38/3019.md) shall be made—
  - (1) in the case of the first $600 of such [benefits](/usc/38/4303.md?p=2) paid to an individual, from funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment [benefits](/usc/38/4303.md?p=2); and
  - (2) in the case of payments to an individual for such [benefits](/usc/38/4303.md?p=2) in excess of $600, from—
    - (A) funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment [benefits](/usc/38/4303.md?p=2);
    - (B) the [Department](/usc/38/101.md?p=1) of Defense Education [Benefits](/usc/38/4303.md?p=2) Fund established under [section 2006 of title 10](/usc/10/2006.md); and
    - (C) funds appropriated to the [Department](/usc/38/101.md?p=1) of Homeland Security,

    in the same proportion as the Fund described in [subclause (B)](#e-2-B) of this clause and the funds described in subclause [(A)](#e-2-A) or [(C)](#e-2-C) of this clause are used to pay the educational assistance allowance to the individual under this chapter.


## Source credit

(Added Pub. L. 98–525, title VII, § 702(a)(1), Oct. 19, 1984, 98 Stat. 2562, § 1435; amended Pub. L. 99–576, title III, § 321(8), Oct. 28, 1986, 100 Stat. 3278; Pub. L. 100–689, title I, § 107(a)(2), Nov. 18, 1988, 102 Stat. 4168; Pub. L. 101–237, title IV, § 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; Pub. L. 101–510, div. A, title V, § 561(b)(3), Nov. 5, 1990, 104 Stat. 1573; renumbered § 3035 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102–484, div. D, title XLIV, § 4404(b)(3), Oct. 23, 1992, 106 Stat. 2706; Pub. L. 103–446, title XII, § 1201(d)(7), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 104–275, title I, § 106(c)(2), Oct. 9, 1996, 110 Stat. 3329; Pub. L. 107–296, title XVII, § 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 107–314, div. A, title VI, § 643(b), Dec. 2, 2002, 116 Stat. 2577; Pub. L. 107–330, title III, § 308(c)(1), Dec. 6, 2002, 116 Stat. 2827.)

## Notes

### 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.