--- kind: "section" citation: "38 U.S.C. § 3726" title: "38" title_heading: "Veterans’ Benefits" number: "3726" heading: "Withholding of payments, benefits, etc." release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/38/3726" units: - "Part III — Readjustment and Related Benefits" - "Chapter 37 — Housing and Small Business Loans" - "Subchapter III — Administrative Provisions" --- # §3726. Withholding of payments, benefits, etc. - (a) No officer, [employee](/usc/38/4303.md?p=3), [department](/usc/38/101.md?p=1), or agency of the United States shall set off against, or otherwise withhold from, any [veteran](/usc/38/3701.md?p=b-2) or the [surviving spouse](/usc/38/101.md?p=3) of any [veteran](/usc/38/3701.md?p=b-2) any payments (other than [benefit](/usc/38/4303.md?p=2) payments under any law administered by the Department of Veterans Affairs) which such [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) would otherwise be entitled to receive because of any liability to the [Secretary](/usc/38/4101.md?p=8) allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) under this chapter, unless the [Secretary](/usc/38/4101.md?p=8) provides such [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) with [notice](/usc/38/4303.md?p=8) by certified mail with return receipt requested of the authority of the [Secretary](/usc/38/4101.md?p=8) to waive the payment of indebtedness under [section 5302(b) of this title](/usc/38/5302.md?p=b). - (b) If the [Secretary](/usc/38/4101.md?p=8) does not waive the entire amount of the liability, the [Secretary](/usc/38/4101.md?p=8) shall then determine whether the [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) should be released from liability under [section 3713(b) of this title](/usc/38/3713.md?p=b). - (c) If the [Secretary](/usc/38/4101.md?p=8) determines that the [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) should not be released from liability, the [Secretary](/usc/38/4101.md?p=8) shall notify the [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) of that determination and provide a [notice](/usc/38/4303.md?p=8) of the procedure for appealing that determination, unless the [Secretary](/usc/38/4101.md?p=8) has previously made such determination and notified the [veteran](/usc/38/3701.md?p=b-2) or [surviving spouse](/usc/38/101.md?p=3) of the procedure for appealing the determination. ## Source credit (Added Pub. L. 89–358, § 5(f)(1), Mar. 3, 1966, 80 Stat. 26, § 1826; amended Pub. L. 94–324, § 7(30), June 30, 1976, 90 Stat. 722; Pub. L. 97–66, title V, § 504, Oct. 17, 1981, 95 Stat. 1033; Pub. L. 101–237, title III, § 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3726, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105–33, title VIII, § 8033(a), Aug. 5, 1997, 111 Stat. 669.) ## Notes ### Editorial Notes ### Amendments 1997—Pub. L. 105–33 designated existing provisions as subsec. (a), substituted “unless the Secretary provides such veteran or surviving spouse with notice by certified mail with return receipt requested of the authority of the Secretary to waive the payment of indebtedness under section 5302(b) of this title.” for “unless (1) there is first received the consent in writing of such veteran or surviving spouse, as the case may be, or (2) such liability and the amount thereof was determined by a court of competent jurisdiction in a proceeding to which such veteran or surviving spouse was a party.”, and added subsecs. (b) and (c). 1991—Pub. L. 102–83 renumbered section 1826 of this title as this section. 1989—Pub. L. 101–237 substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively. 1981—Pub. L. 97–66 struck out subsec. (a) which provided that the Administrator could not, unless the Administrator had first obtained the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual under any law administered by the Veterans’ Administration because of liability allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such individual under this chapter, and struck out designation “(b)” before “No officer, employee, department, or agency of the United States”. 1976—Subsec. (a). Pub. L. 94–324 substituted “the Administrator” for “he”. Subsec. (b). Pub. L. 94–324 substituted “surviving spouse” for “widow” wherever appearing. ### Statutory Notes and Related Subsidiaries ### Effective Date of 1997 Amendment Pub. L. 105–33, title VIII, § 8033(c), Aug. 5, 1997, 111 Stat. 669, provided that: “The amendments made by this section [amending this section and section 5302 of this title] shall apply with respect to any indebtedness to the United States arising pursuant to chapter 37 of title 38, United States Code, before, on, or after the date of enactment of this Act [Aug. 5, 1997].” ### Effective Date of 1981 Amendment Amendment by Pub. L. 97–66 effective Oct. 17, 1980, see section 701(b)(3) of Pub. L. 97–66, set out as a note under section 1114 of this title. ### Effective Date of 1976 Amendment Amendment by Pub. L. 94–324 effective June 30, 1976, see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of this title.