---
kind: "section"
citation: "38 U.S.C. § 3683"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3683"
heading: "Conflicting interests"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3683"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 36 — Administration of Educational Benefits"
  - "Subchapter III — Miscellaneous Provisions"
---

# §3683. Conflicting interests

- (a) **Department Officers and Employees.—**
  - (1) An officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1) shall receive corrective action or disciplinary action if such officer or [employee](/usc/38/4303.md?p=3)—
    - (A) has, while serving as such an officer or [employee](/usc/38/4303.md?p=3), owned any interest in, or received any wage, salary, dividend, profit, or gift from, any [educational institution](/usc/38/3002.md?p=8) operated for profit; or
    - (B) has, while serving as a covered officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1), received any service from any [educational institution](/usc/38/3002.md?p=8) operated for profit.
  - (2) In this subsection, the term “covered officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1)” means an officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1) who—
    - (A) works on the administration of [benefits](/usc/38/4303.md?p=2) under chapter [30](/usc/38/chptIII/ch30.md), [31](/usc/38/chptIII/ch31.md), [32](/usc/38/chptIII/ch32.md), [33](/usc/38/chptIII/ch33.md), [34](/usc/38/chptIII/ch34.md), [35](/usc/38/chptIII/ch35.md), or [36](/usc/38/chptIII/ch36.md) of this title; or
    - (B) has a potential conflict of interest involving an [educational institution](/usc/38/3002.md?p=8) operated for profit, as determined by the [Secretary](/usc/38/4101.md?p=8).
- (b) **State Approving Agency Employees.—** If the [Secretary](/usc/38/4101.md?p=8) finds that any person who is an officer or [employee](/usc/38/4303.md?p=3) of a [State](/usc/38/4101.md?p=6) approving agency has, while such person was such an officer or [employee](/usc/38/4303.md?p=3), owned any interest in, or received any wage, salary, dividend, profit, or gift from, an [educational institution](/usc/38/3002.md?p=8) operated for profit, the [Secretary](/usc/38/4101.md?p=8) shall discontinue making payments under [section 3674 of this title](/usc/38/3674.md) to such [State](/usc/38/4101.md?p=6) approving agency unless such agency shall, without delay, take such steps as may be necessary to provide corrective action or disciplinary action with respect to such person and such payments shall not be resumed until the completion of such corrective action or disciplinary action.
- (c) **Disapproval of Courses.—** A [State](/usc/38/4101.md?p=6) approving agency shall not approve any course offered by an [educational institution](/usc/38/3002.md?p=8) operated for profit, and, if any such course has been approved, shall disapprove each such course, if it finds that any officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1) or the [State](/usc/38/4101.md?p=6) approving agency owns an interest in, or receives any wage, salary, dividend, profit, or gift from, such institution.
- (d) **Waiver Authority.—**
  - (1) The [Secretary](/usc/38/4101.md?p=8) may waive in writing the application of this section in the case of any officer or [employee](/usc/38/4303.md?p=3) of the [Department](/usc/38/101.md?p=1) or of a [State](/usc/38/4101.md?p=6) approving agency, if the [Secretary](/usc/38/4101.md?p=8) finds that no detriment will result to the United States or to [eligible persons](/usc/38/3501.md?p=a-1) or [veterans](/usc/38/3701.md?p=b-2) by reasons of such interest or connection of such officer or [employee](/usc/38/4303.md?p=3).
  - (2) The [Secretary](/usc/38/4101.md?p=8) shall provide public [notice](/usc/38/4303.md?p=8) of any waiver granted under this subsection by not later than 30 days after the date on which such waiver is granted.

## Source credit

(Added Pub. L. 89–358, § 3(b), Mar. 3, 1966, 80 Stat. 22, § 1783; amended Pub. L. 92–540, title IV, § 403(10), Oct. 24, 1972, 86 Stat. 1090; Pub. L. 94–502, title V, § 513(a)(14)–(16), Oct. 15, 1976, 90 Stat. 2403; Pub. L. 97–295, § 4(54), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 101–237, title IV, § 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3683 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 115–251, title III, § 302(a), Sept. 29, 2018, 132 Stat. 3178; Pub. L. 116–61, § 6(5), Sept. 30, 2019, 133 Stat. 1117.)

## Notes

### Editorial Notes

### Prior Provisions

Provisions similar to those comprising this section were contained in Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1190, 1201, which was classified to former sections 1664 and 1764 of this title, prior to repeal by sections 4(a) and 3(a)(3) of Pub. L. 89–358, respectively.

### Amendments

2019—Subsecs. (b) to (d). Pub. L. 116–61 substituted “(b)” for “(b) (b)”, “(c)” for “(c) (c)”, and “(d)” for “(d) (d)” in subsec. designations.

2018—Subsec. (a). Pub. L. 115–251, § 302(a)(1), added subsec. (a) and struck out former subsec. (a) which read as follows: “Every officer or employee of the Department of Veterans Affairs who has, while such an officer or employee, owned any interest in, or received any wages, salary, dividends, profits, gratuities, or services from, any educational institution operated for profit in which an eligible person or veteran was pursuing a program of education or course under this chapter or chapter 34 or 35 of this title shall be immediately dismissed from such officer’s or employee’s office or employment.”

Subsec. (b). Pub. L. 115–251, § 302(a)(2), inserted second subsec. (b) designation and heading, substituted “wage, salary, dividend, profit, or gift” for “wages, salary, dividends, profits, gratuities, or services”, “provide corrective action or disciplinary action with respect to” for “terminate the employment of”, and “until the completion of such corrective action or disciplinary action” for “while such person is an officer or employee of the State approving agency, or State department of veterans’ affairs or State department of education”, and struck out “in which an eligible person or veteran was pursuing a program of education or course under this chapter or chapter 34 or 35 of this title” after “operated for profit”.

Subsec. (c). Pub. L. 115–251, § 302(a)(3), inserted second subsec. (c) designation and heading, struck out “of Veterans Affairs” after “of the Department”, and substituted “wage, salary, dividend, profit, or gift” for “wages, salary, dividends, profits, gratuities, or services”.

Subsec. (d). Pub. L. 115–251, § 302(a)(4), inserted second subsec. (d) designation and heading, designated existing provisions as par. (1), struck out “, after reasonable notice and public hearings,” after “The Secretary may” and “of Veterans Affairs” after “of the Department”, and added par. (2).

1991—Pub. L. 102–83, § 5(a), renumbered section 1783 of this title as this section.

Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted “3674” for “1774”.

1989—Pub. L. 101–237 substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively, wherever appearing.

1982—Subsec. (a). Pub. L. 97–295 inserted “of this title” after “34 or 35”.

1976—Subsec. (a). Pub. L. 94–502, § 513(a)(14), substituted “such officer’s or employee’s” for “his”.

Subsec. (b). Pub. L. 94–502, § 513(a)(15), substituted “while such person was” for “while he was” and “the Administrator shall discontinue” for “he shall discontinue”.

Subsec. (d). Pub. L. 94–502, § 513(a)(16), substituted “if the Administrator finds” for “if he finds”.

1972—Subsecs. (a), (b). Pub. L. 92–540 inserted “this chapter or” before “chapter 34 or 35” wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Pub. L. 115–251, title III, § 302(b), Sept. 29, 2018, 132 Stat. 3179, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Sept. 29, 2018] and shall apply with respect to conflicts of interest that occur on or after that date.”

### Effective Date of 1976 Amendment

Amendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an Effective Date note under section 3693 of this title.