Public Law 119-73 (01/23/2026)

10 U.S.C. § 8271

Settlement of accounts: remission or cancellation of indebtedness of members

(a)

In General .—

The Secretary of the Navy may have remitted or cancelled any part of the indebtedness of a person to the United States or any instrumentality of the United States incurred while the person was serving as a member of the naval service, whether as a regular or a reserve in active status, but only if the Secretary considers such action to be in the best interest of the United States.
(b)

Retroactive Applicability to Certain Debts .—

The authority in subsection (a) may be exercised with respect to any debt covered by that subsection that is incurred on or after .
(c)

Regulations .—

This section shall be administered under regulations prescribed by the Secretary of Defense.

Pub. L. 86–511, § 1(a)74 Stat. 207Pub. L. 109–163, div. A, title VI, § 683(b)(1)119 Stat. 3322Pub. L. 109–364, div. A, title VI, § 673(b)(1)120 Stat. 2271Pub. L. 110–181, div. A, title X, § 1063(c)(7)(B)122 Stat. 323Pub. L. 114–328, div. A, title VI, § 671(b)(2)130 Stat. 2173Pub. L. 115–232, div. A, title VIII, § 807(b)(10)132 Stat. 1835(Added , , , § 6161; amended , , ; , (2), (e)(2), , , 2272; , , ; , , ; renumbered § 8271, , , .)

Editorial Notes

Amendments

Pub. L. 115–232section 6161 of this title2018— renumbered as this section.

Pub. L. 114–3282016—Subsec. (a). substituted “as a member of the naval service, whether as a regular or a reserve in active status” for “on active duty as a member of the naval service”.

Pub. L. 110–181Pub. L. 109–364, § 673(b)(1)2008—Subsec. (a). made technical correction to directory language of . See 2006 Amendment note below.

Pub. L. 109–1632006— amended section catchline and text generally. Prior to amendment, text read as follows: “If he considers it in the best interest of the United States, the Secretary of the Navy may have remitted or canceled any part of an enlisted member’s indebtedness to the United States or any of its instrumentalities remaining unpaid before, or at the time of that member’s honorable discharge.”

Pub. L. 109–364, § 673(e)(2)Subsec. (a). , substituted “The Secretary of the Navy” for “If the Secretary of the Navy considers it to be in the best interest of the United States, the Secretary” and inserted “, but only if the Secretary considers such action to be in the best interest of the United States” before period at end.

Pub. L. 109–364, § 673(b)(1)Pub. L. 110–181, as amended by , substituted “of a person to the United States or any instrumentality of the United States incurred while the person was serving on active duty as a member of the naval service” for “of a member of the Navy on active duty, or a member of a reserve component of the Navy in an active status, to the United States or any instrumentality of the United States incurred while the member was serving on active duty”.

Pub. L. 109–364, § 673(b)(2)Subsecs. (b) to (d). , redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out heading and text of former subsec. (b). Text read as follows: “The Secretary of the Navy may exercise the authority in subsection (a) with respect to a member—

“(1) while the member is on active duty or in active status, as the case may be;

“(2) if discharged from the armed forces under honorable conditions, during the one-year period beginning on the date of such discharge; or

“(3) if released from active status in a reserve component, during the one-year period beginning on the date of such release.”

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–232section 800 of Pub. L. 115–232section 3001 of this titleAmendment by effective , with provision for the coordination of amendments and special rule for certain redesignations, see , set out as a note preceding .

Effective Date of 2016 Amendment

Pub. L. 114–328section 671(b)(5) of Pub. L. 114–328section 7837 of this titleAmendment by effective , and applicable with respect to debt incurred on or after , see , set out as a note under .

Effective Date of 2008 Amendment

Pub. L. 110–181, div. A, title X, § 1063(c)122 Stat. 322Pub. L. 109–364, , , provided that the amendment made by section 1063(c)(7)(B) is effective as of , and as if included in the John Warner National Defense Authorization Act for Fiscal Year 2007, , as enacted.

Termination Date of 2006 Amendment

Pub. L. 109–163, div. A, title VI, § 683(b)(3)119 Stat. 3323Pub. L. 109–163, § 683(b)Pub. L. 109–364, div. A, title VI, § 673(b)(3)120 Stat. 2271, , , which provided for termination of amendments by , amending this section and the analysis to this chapter, on , and restoration of provisions as in effect on the day before , was repealed by , , .

Regulations

Pub. L. 109–364section 673(d) of Pub. L. 109–364section 7837 of this titleSecretary of Defense to prescribe regulations required for purposes of this section, as amended by , not later than , see , set out as a note under .