---
kind: "section"
citation: "38 U.S.C. § 721"
title: "38"
title_heading: "Veterans’ Benefits"
number: "721"
heading: "Recoupment of bonuses or awards paid to employees of Department"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/721"
units:
  - "Part I — General Provisions"
  - "Chapter 7 — Employees"
  - "Subchapter I — General Employee Matters"
---

# §721. Recoupment of bonuses or awards paid to employees of Department

- (a) **In General.—** Notwithstanding any other provision of law, the [Secretary](/usc/38/101.md?p=1) may issue an order directing an employee of the [Department](/usc/38/101.md?p=1) to repay the amount, or a portion of the amount, of any award or bonus paid to the employee under [title 5](/usc/5.md), including under chapters 45 or [53](/usc/38/chptIV/ch53.md) of such title, or this title if—
  - (1) the [Secretary](/usc/38/101.md?p=1) determines that the individual engaged in misconduct or poor performance prior to payment of the award or bonus, and that such award or bonus would not have been paid, in whole or in part, had the misconduct or poor performance been known prior to payment; and
  - (2) before such repayment, the employee is afforded—
    - (A) notice of the proposed order; and
    - (B) an opportunity to respond to the proposed order by not later than 10 business days after the receipt of such notice; and
  - (3) the [Secretary](/usc/38/101.md?p=1) issues the order—
    - (A) in the case of a proposed order to which an individual responds under [paragraph (2)(B)](#a-2-B), not later than five business days after receiving the response of the individual; or
    - (B) in the case of a proposed order to which an individual does not respond, not later than 15 business days after the [Secretary](/usc/38/101.md?p=1) provides notice to the individual under [paragraph (2)(A)](#a-2-A).
- (b) **Appeal of Order of Secretary.—**
  - (1) Upon the issuance of an order by the [Secretary](/usc/38/101.md?p=1) under [subsection (a)](#a) with respect to an individual, the individual shall have an opportunity to appeal the order to the Director of the Office of Personnel Management before the date that is seven business days after the date of such issuance.
  - (2) The Director shall make a final decision with respect to an appeal under [paragraph (1)](#b-1) within 30 business days after receiving such appeal.

## Source credit

(Added Pub. L. 115–41, title II, § 204(a), June 23, 2017, 131 Stat. 875.)

## Notes

### Editorial Notes

### Prior Provisions

Prior sections 721 and 722 were renumbered sections 1921 and 1922 of this title, respectively.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 115–41, title II, § 204(c), June 23, 2017, 131 Stat. 876, provided that: “Section 721 of title 38, United States Code, as added by subsection (a), shall apply with respect to an award or bonus paid by the Secretary of Veterans Affairs to an employee of the Department of Veterans Affairs on or after the date of the enactment of this Act [June 23, 2017].”