---
kind: "section"
citation: "38 U.S.C. § 741"
title: "38"
title_heading: "Veterans’ Benefits"
number: "741"
heading: "Executive Management Fellowship Program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/741"
units:
  - "Part I — General Provisions"
  - "Chapter 7 — Employees"
  - "Subchapter III — Executive Management Fellowship Program"
---

# §741. Executive Management Fellowship Program

- (a) **Fellowship Program.—** There is in the [Department](/usc/38/101.md?p=1) an Executive Management Fellowship Program. The purpose of the program shall be to provide—
  - (1) eligible employees of the [Veterans](/usc/38/101.md?p=2) Benefits Administration and the [Veterans](/usc/38/101.md?p=2) Health Administration with training and experience in the private sector; and
  - (2) eligible employees of a private-sector entity with training and experience in the Department of Veterans Affairs.
- (b) **Fellowship.—**
  - (1) A fellowship provided under this section is a 1-year fellowship during which—
    - (A) with respect to a [Department](/usc/38/101.md?p=1) participant, the participant receives training and experience at a private-sector entity that is engaged in the administration and delivery of health care or other services similar to the benefits administered by the [Secretary](/usc/38/101.md?p=1); and
    - (B) with respect to a private-sector participant, the participant receives training and experience at the [Veterans](/usc/38/101.md?p=2) Benefits Administration or the [Veterans](/usc/38/101.md?p=2) Health Administration.
  - (2) The [Secretary](/usc/38/101.md?p=1) shall enter into such agreements with private-sector entities as are necessary to carry out this section.
- (c) **Selection of Recipients.—**
  - (1) In August of each year, the [Secretary](/usc/38/101.md?p=1) shall select—
    - (A) not fewer than 18 and not more than 30 eligible employees of the [Veterans](/usc/38/101.md?p=2) Benefits Administration and the [Veterans](/usc/38/101.md?p=2) Health Administration to receive a fellowship under this section; and
    - (B) not fewer than 18 and not more than 30 eligible employees of private-sector entities to receive a fellowship under this section.
  - (2) To the extent practicable, the [Secretary](/usc/38/101.md?p=1) shall select eligible employees under subparagraphs [(A)](#c-1-A) and [(B)](#c-1-B) of paragraph (1) from among eligible employees who are [veterans](/usc/38/101.md?p=2) in a manner that is reflective of the demographics of the [veteran](/usc/38/101.md?p=2) population of the United States and that whenever practicable provides a preference to such employees who represent or service rural areas.
- (d) **Eligible Employees.—** For the purposes of this section, an eligible employee is—
  - (1) with respect to an employee of the [Veterans](/usc/38/101.md?p=2) Benefits Administration or the [Veterans](/usc/38/101.md?p=2) Health Administration, an employee who—
    - (A) is compensated at a rate of basic pay not less than the minimum rate of basic pay payable for grade GS–14 of the General Schedule and not more than either the minimum rate of basic pay payable to a member of the Senior Executive Service under [section 5382 of title 5](/usc/5/5382.md) or the minimum rate of basic pay payable pursuant to [chapter 74](/usc/38/chptV/ch74.md) of this title, as the case may be;
    - (B) enters into an agreement with the [Secretary](/usc/38/101.md?p=1) under [subsection (e)](#e); and
    - (C) submits to the [Secretary](/usc/38/101.md?p=1) an application containing such information and assurances as the [Secretary](/usc/38/101.md?p=1) may require; and
  - (2) with respect to an employee of a private-sector entity, an employee who—
    - (A) is employed in a position whose duties and responsibilities are commensurate with an employee of the [Department](/usc/38/101.md?p=1) described in [paragraph (1)](#d-1);
    - (B) enters into an agreement with the [Secretary](/usc/38/101.md?p=1) under [subsection (e)](#e); and
    - (C) submits to the [Secretary](/usc/38/101.md?p=1) an application containing such information and assurances as the [Secretary](/usc/38/101.md?p=1) may require.
- (e) **Agreements.—**
  - (1) An agreement between the [Secretary](/usc/38/101.md?p=1) and a [Department](/usc/38/101.md?p=1) participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
    - (A) The [Secretary](/usc/38/101.md?p=1)’s agreement to provide the participant with a fellowship under this section;
    - (B) The participant’s agreement—
      - (i) to accept the fellowship;
      - (ii) after completion of the fellowship, to serve as a full-time employee in the [Veterans](/usc/38/101.md?p=2) Benefits Administration or the [Veterans](/usc/38/101.md?p=2) Health Administration for at least 2 years as specified in the agreement; and
      - (iii) that, during the 2-year period beginning on the last day of the fellowship, the participant will not accept employment in the same industry as the industry of the private-sector entity at which the participant accepts the fellowship.
    - (C) A provision that any financial obligation of the United States arising out of an agreement entered into under this subchapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated.
    - (D) A statement of the damages to which the United States is entitled under this subchapter for the participant’s breach of the agreement.
    - (E) Such other terms as the [Secretary](/usc/38/101.md?p=1) determines are required to be included in the agreement.
  - (2) An agreement between the [Secretary](/usc/38/101.md?p=1) and a private-sector participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
    - (A) The [Secretary](/usc/38/101.md?p=1)’s agreement to provide the participant with a fellowship under this section.
    - (B) The participant’s agreement to accept the fellowship.
    - (C) Such other terms as the [Secretary](/usc/38/101.md?p=1) determines are required to be included in the agreement.
- (f) **Treatment of Recipients.—**
  - (1) A [Department](/usc/38/101.md?p=1) participant shall be considered an employee of the [Department](/usc/38/101.md?p=1) for all purposes, including for purposes of receiving a salary and benefits, and shall remain eligible for all promotion and incentive programs otherwise available to such an employee.
  - (2) A private-sector participant shall be considered an employee of the private-sector entity that employs the participant for all purposes, including for purposes of receiving a salary and benefits, and during the fellowship shall be treated as a contractor of the [Department](/usc/38/101.md?p=1).
- (g) **Reports.—**
  - (1) Not later than 60 days after completing a fellowship under this section, a recipient of the fellowship shall submit to the [Secretary](/usc/38/101.md?p=1) a report on the fellowship.
  - (2) Each such report shall describe the duties of the recipient during the fellowship and any recommendations of the recipient for the application by the [Secretary](/usc/38/101.md?p=1) of industry processes, technologies, and best practices.
  - (3) Not later than 7 days after receiving each such report, the [Secretary](/usc/38/101.md?p=1) shall submit to the Committees on [Veterans](/usc/38/101.md?p=2)’ Affairs of the Senate and House of Representatives such report without change.
- (h) **Definitions.—** In this section:
  - (1) The term “[Department](/usc/38/101.md?p=1) participant” means an employee of the [Veterans](/usc/38/101.md?p=2) Benefits Administration or the [Veterans](/usc/38/101.md?p=2) Health Administration who is participating in the fellowship under this section.
  - (2) The term “private-sector entity” includes an entity operating under a public-private partnership.
  - (3) The term “private-sector participant” means an employee of a private-sector entity who is participating in the fellowship under this section.

## Source credit

(Added Pub. L. 115–46, title II, § 202(a), Aug. 12, 2017, 131 Stat. 959.)

## Notes

### Editorial Notes

### References in Text

Grade GS–14 of the General Schedule, referred to in subsec. (d)(1)(A), is set out under section 5332 of Title 5, Government Organization and Employees.

### Statutory Notes and Related Subsidiaries

### Deadline for Implementation

Pub. L. 115–46, title II, § 202(b), Aug. 12, 2017, 131 Stat. 962, provided that: “Not later than 1 year after the date of the enactment of this Act [Aug. 12, 2017], the Secretary of Veterans Affairs shall implement the Executive Management Fellowship Program required under section 741 of title 38, United States Code, as added by subsection (a).”