US Code

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

38 U.S.C. § 1718

Therapeutic and rehabilitative activities

(a)
In providing rehabilitative services under this chapter, the Secretary, upon the recommendation of the Under Secretary for Health, may use the services of patients and members in Department health care facilities for therapeutic and rehabilitative purposes. Such patients and members shall not under these circumstances be held or considered as employees of the United States for any purpose. The Secretary shall prescribe the conditions for the use of such services.
(b)
(1)
In furnishing rehabilitative services under this chapter, the Secretary, upon the recommendation of the Under Secretary for Health, may enter into a contract or other arrangement with any appropriate source (whether or not an element of the Department of Veterans Affairs or of any other Federal entity) to provide for therapeutic work for patients and members in Department health care facilities.
(2)
Notwithstanding any other provision of law, the Secretary may also furnish rehabilitative services under this subsection through contractual arrangements with nonprofit entities to provide for such therapeutic work for such patients. The Secretary shall establish appropriate fiscal, accounting, management, recordkeeping, and reporting requirements with respect to the activities of any such nonprofit entity in connection with such contractual arrangements.
(c)
(1)
There is hereby established in the Treasury of the United States a revolving fund known as the Department of Veterans Affairs Special Therapeutic and Rehabilitation Activities Fund (hereinafter in this section referred to as the “fund”) for the purpose of furnishing rehabilitative services authorized in subsection (b) or (d). Such amounts of the fund as the Secretary may determine to be necessary to establish and maintain operating accounts for the various rehabilitative services activities may be deposited in checking accounts in other depositaries selected or established by the Secretary.
(2)
29 U.S.C. 201 All funds received by the Department under contractual arrangements made under subsection (b) or (d), or by nonprofit entities described in subsection (b)(2), shall be deposited in or credited to the fund, and the Secretary shall distribute out of the fund moneys to participants at rates not less than the wage rates specified in the Fair Labor Standards Act of 1938 ( et seq.) and regulations prescribed thereunder for work of similar character.
(3)
section 529 of this title The Under Secretary for Health shall prepare, for inclusion in the annual report submitted to Congress under , a description of the scope and achievements of activities carried out under this section (including pertinent data regarding productivity and rates of distribution) during the prior twelve months and an estimate of the needs of the program of therapeutic and rehabilitation activities to be carried out under this section for the ensuing fiscal year.
(d)
In providing to a veteran rehabilitative services under this chapter, the Secretary may furnish the veteran with the following:
(1)
Work skills training and development services.
(2)
Employment support services.
(3)
Job development and placement services.
(e)
In providing rehabilitative services under this chapter, the Secretary shall take appropriate action to make it possible for the patient to take maximum advantage of any benefits to which such patient is entitled under chapter 31, 34, or 35 of this title, and, if the patient is still receiving treatment of a prolonged nature under this chapter, the provision of rehabilitative services under this chapter shall be continued during, and coordinated with, the pursuit of education and training under such chapter 31, 34, or 35.
(f)
section 1705 of this title The Secretary shall prescribe regulations to ensure that the priorities set forth in shall be applied, insofar as practicable, to participation in therapeutic and rehabilitation activities carried out under this section.
(g)
(1)
The Secretary may not consider any of the matters stated in paragraph (2) as a basis for the denial or discontinuance of a rating of total disability for purposes of compensation or pension based on the veteran’s inability to secure or follow a substantially gainful occupation as a result of disability.
(2)
Paragraph (1) applies to the following:
(A)
A veteran’s participation in an activity carried out under this section.
(B)
A veteran’s receipt of a distribution as a result of participation in an activity carried out under this section.
(C)
A veteran’s participation in a program of rehabilitative services that (i) is provided as part of the veteran’s care furnished by a State home and (ii) is approved by the Secretary as conforming appropriately to standards for activities carried out under this section.
(D)
A veteran’s receipt of payment as a result of participation in a program described in subparagraph (C).
(3)
A distribution of funds made under this section and a payment made to a veteran under a program of rehabilitative services described in paragraph (2)(C) shall be considered for the purposes of chapter 15 of this title to be a donation from a public or private relief or welfare organization.

Pub. L. 87–574, § 2(1)76 Stat. 308Pub. L. 94–581, title I, § 105(a)90 Stat. 2845Pub. L. 98–543, title III, § 30398 Stat. 2748Pub. L. 99–576, title II, § 205100 Stat. 3256Pub. L. 102–54105 Stat. 273Pub. L. 102–83105 Stat. 402Pub. L. 102–86, title V, § 506(a)(1)105 Stat. 426Pub. L. 102–405, title III, § 302(c)(1)106 Stat. 1984Pub. L. 102–585, title IV, § 401106 Stat. 4953Pub. L. 103–446, title XII, § 1201(i)(1)108 Stat. 4688Pub. L. 104–262, title I, § 101(d)(7)110 Stat. 3180Pub. L. 108–170, title I, § 104(b)117 Stat. 2045Pub. L. 109–444, § 8(a)(1)120 Stat. 3313Pub. L. 109–461, title X120 Stat. 3465(Added , , , § 618; amended , , ; , , ; , , ; , §§ 10, 14(b)(12), , , 284; renumbered § 1718 and amended , §§ 2(c)(3), 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), , , 404–406; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 1004(a)(1), 1006(b), , , 3468.)

Editorial Notes

References in Text

act June 25, 1938, ch. 67652 Stat. 1060section 201 of Title 29The Fair Labor Standards Act of 1938, referred to in subsec. (c)(2), is , , which is classified generally to chapter 8 (§ 201 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see and Tables.

Amendments

Pub. L. 109–461, § 1006(b)Pub. L. 109–461Pub. L. 109–444Pub. L. 109–444section 1006(b) of Pub. L. 109–461Pub. L. 109–444section 101 of this title2006—Subsec. (c)(2). , provided that as of the enactment of , the amendments made by were deemed for all purposes not to have taken effect and that ceased to be in effect. See Amendment notes below and , set out as a Coordination of Provisions With note under .

Pub. L. 109–461, § 1004(a)(1), inserted “of 1938” after “Act”.

Pub. L. 109–444Pub. L. 109–461, § 1006(b), which inserted “of 1938” after “Act”, was terminated by . See Amendment notes above.

Pub. L. 108–170, § 104(b)(2)(A)2003—Subsec. (c)(1). , substituted “subsection (b) or (d)” for “subsection (b) of this section”.

Pub. L. 108–170, § 104(b)(2)(B)Subsec. (c)(2). , substituted “subsection (b) or (d)” for “subsection (b) of this section” and “subsection (b)(2)” for “paragraph (2) of such subsection”.

Pub. L. 108–170, § 104(b)(1)Subsecs. (d) to (g). , added subsec. (d) and redesignated former subsecs. (d) to (f) as (e) to (g), respectively.

Pub. L. 104–2621996—Subsec. (e). substituted “section 1705” for “section 1712(i)”.

Pub. L. 103–4461994—Subsec. (c)(1). substituted “Department of Veterans Affairs” for “Department”.

Pub. L. 102–4051992—Subsecs. (a), (b)(1), (c)(3). substituted “Under Secretary for Health” for “Chief Medical Director”.

Pub. L. 102–585Subsec. (f). amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows:

“(1) Neither a veteran’s participation in an activity carried out under this section nor a veteran’s receipt of a distribution as a result of such participation may be considered as a basis for the denial or discontinuance of a rating of total disability for purposes of compensation or pension based on the veteran’s inability to secure or follow a substantially gainful occupation as a result of disability.

“(2) A distribution of funds made under this section shall be considered for purposes of chapter 15 of this title to be a donation from a public or private relief or welfare organization.”

Pub. L. 102–83, § 5(a)section 618 of this title1991—, renumbered as this section.

Pub. L. 102–83, § 4(b)(1)Subsec. (a). , (2)(E), substituted “Secretary” for “Administrator” in two places.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–83, § 4(b)(1)Subsec. (b)(1). , (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–54, § 10(a), substituted “a contract or other arrangement with any appropriate source (whether or not an element of the Department of Veterans Affairs or of any other Federal entity)” for “contractual arrangements with private industry or other sources outside the Veterans’ Administration”.

Pub. L. 102–86Pub. L. 102–83, § 5Subsec. (b)(2). amended subsec. (b)(2) of this section as in effect before the redesignations made by , by substituting “arrangements” for “arangements” in first sentence.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places.

Pub. L. 102–83, § 4(b)(1)Subsec. (c)(1). , (2)(E), substituted “Secretary” for “Administrator” in two places.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–54, § 10(b), substituted “furnishing rehabilitative services authorized in” for “carrying out the provisions of”.

Pub. L. 102–83, § 4(b)(1)Subsec. (c)(2). , (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–83, § 2(c)(3)Subsec. (c)(3). , substituted “section 529” for “section 214”.

Pub. L. 102–54, § 14(b)(12), inserted “and” after “productivity”.

Pub. L. 102–83, § 4(b)(1)Subsec. (d). , (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 102–83, § 5(c)(1)Subsec. (e). , substituted “1712(i)” for “612(i)”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 99–576, § 205(1)1986—Subsec. (a). , substituted “may use” for “may utilize”, “purposes. Such” for “purposes, at nominal remuneration, and such”, and “use” for “utilization”.

Pub. L. 99–576, § 205(2)Subsec. (b)(1). , struck out “for remuneration” after “therapeutic work”.

Pub. L. 99–576, § 205(3)Subsec. (c)(2), (3). , substituted “distribute” for “pay” in par. (2), and substituted “rates of distribution” for “and wage rates” in par. (3).

Pub. L. 99–576, § 205(4)Subsec. (f). , designated existing provisions as par. (1), substituted “a distribution” for “remuneration”, and added par. (2).

Pub. L. 98–5431984—Subsec. (f). added subsec. (f).

Pub. L. 94–581, § 105(a)(1)1976—Subsec. (a). , (2), designated existing provisions as subsec. (a) and substituted “In providing rehabilitative services under this chapter, the” for “The” and “health care facilities” for “hospitals and domiciliaries”.

Pub. L. 94–581, § 105(a)(3)Subsecs. (b) to (e). , added subsecs. (b) to (e).

Statutory Notes and Related Subsidiaries

Effective Date of 1976 Amendment

Pub. L. 94–581section 211 of Pub. L. 94–581section 111 of this titleAmendment by effective , see , set out as a note under .

Demonstration Program of Compensated Work Therapy and Therapeutic Transitional Housing

Pub. L. 102–54, § 7105 Stat. 269Pub. L. 102–83, § 5(c)(2)105 Stat. 406Pub. L. 102–86, title V, § 501105 Stat. 424Pub. L. 103–452, title I, § 103(f)108 Stat. 4787Pub. L. 104–110, title I, § 102(b)110 Stat. 769Pub. L. 105–114, title II, § 202(c)(1)111 Stat. 2287, , , as amended by , , ; , , ; , , ; , , , authorized Secretary of Veterans’ Affairs, between , and , to carry out compensated work therapy and therapeutic transitional housing demonstration program, prior to repeal by , , .

Settlement of Claims

Pub. L. 94–581, title I, § 105(b)90 Stat. 2846Pub. L. 97–258, § 4(b)96 Stat. 1067Pub. L. 102–83, § 6(a)105 Stat. 407

“(1)
The Secretary of Veterans Affairs may settle claims made by the Department of Veterans Affairs against any private nonprofit corporation organized under the laws of any State, for the use of facilities and personnel of the Department in work projects as a part of a therapeutic or rehabilitation program for patients and members in health care facilities of the Department, and to execute a binding release of all claims by the United States against any such corporation, in such amounts, and upon such terms and conditions as the Secretary considers appropriate.
“(2)
section 3302 of title 31 For the purposes of this subsection, notwithstanding , or any other provision of law, the Secretary may utilize any funds received under any settlement made pursuant to paragraph (1) of this subsection for any purpose agreed upon by the Secretary and such corporation.”
, , , as amended by , , ; , , , provided that: