US Code

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

38 U.S.C. § 3683

Conflicting interests

(a)

Department Officers and Employees .—

(1)
An officer or employee of the Department shall receive corrective action or disciplinary action if such officer or employee—
(A)
has, while serving as such an officer or employee, owned any interest in, or received any wage, salary, dividend, profit, or gift from, any educational institution operated for profit; or
(B)
has, while serving as a covered officer or employee of the Department, received any service from any educational institution operated for profit.
(2)
In this subsection, the term “covered officer or employee of the Department” means an officer or employee of the Department who—
(A)
works on the administration of benefits under chapter 30, 31, 32, 33, 34, 35, or 36 of this title; or
(B)
has a potential conflict of interest involving an educational institution operated for profit, as determined by the Secretary.
(b)

State Approving Agency Employees .—

section 3674 of this titleIf the Secretary finds that any person who is an officer or employee of a State approving agency has, while such person was such an officer or employee, owned any interest in, or received any wage, salary, dividend, profit, or gift from, an educational institution operated for profit, the Secretary shall discontinue making payments under to such State approving agency unless such agency shall, without delay, take such steps as may be necessary to provide corrective action or disciplinary action with respect to such person and such payments shall not be resumed until the completion of such corrective action or disciplinary action.
(c)

Disapproval of Courses .—

A State approving agency shall not approve any course offered by an educational institution operated for profit, and, if any such course has been approved, shall disapprove each such course, if it finds that any officer or employee of the Department or the State approving agency owns an interest in, or receives any wage, salary, dividend, profit, or gift from, such institution.
(d)

Waiver Authority .—

(1)
The Secretary may waive in writing the application of this section in the case of any officer or employee of the Department or of a State approving agency, if the Secretary finds that no detriment will result to the United States or to eligible persons or veterans by reasons of such interest or connection of such officer or employee.
(2)
The Secretary shall provide public notice of any waiver granted under this subsection by not later than 30 days after the date on which such waiver is granted.

Pub. L. 89–358, § 3(b)80 Stat. 22Pub. L. 92–540, title IV, § 403(10)86 Stat. 1090Pub. L. 94–502, title V, § 513(a)(14)90 Stat. 2403Pub. L. 97–295, § 4(54)96 Stat. 1309Pub. L. 101–237, title IV, § 423(b)(1)103 Stat. 2092Pub. L. 102–83, § 5(a)105 Stat. 406Pub. L. 115–251, title III, § 302(a)132 Stat. 3178Pub. L. 116–61, § 6(5)133 Stat. 1117(Added , , , § 1783; amended , , ; –(16), , ; , , ; , , ; renumbered § 3683 and amended , (c)(1), , ; , , ; , , .)

Editorial Notes

Prior Provisions

Pub. L. 85–85772 Stat. 1190Pub. L. 89–358Provisions similar to those comprising this section were contained in , , , 1201, which was classified to former sections 1664 and 1764 of this title, prior to repeal by sections 4(a) and 3(a)(3) of , respectively.

Amendments

Pub. L. 116–612019—Subsecs. (b) to (d). substituted “(b)” for “(b) (b)”, “(c)” for “(c) (c)”, and “(d)” for “(d) (d)” in subsec. designations.

Pub. L. 115–251, § 302(a)(1)2018—Subsec. (a). , added subsec. (a) and struck out former subsec. (a) which read as follows: “Every officer or employee of the Department of Veterans Affairs who has, while such an officer or employee, owned any interest in, or received any wages, salary, dividends, profits, gratuities, or services from, any educational institution operated for profit in which an eligible person or veteran was pursuing a program of education or course under this chapter or chapter 34 or 35 of this title shall be immediately dismissed from such officer’s or employee’s office or employment.”

Pub. L. 115–251, § 302(a)(2)Subsec. (b). , inserted second subsec. (b) designation and heading, substituted “wage, salary, dividend, profit, or gift” for “wages, salary, dividends, profits, gratuities, or services”, “provide corrective action or disciplinary action with respect to” for “terminate the employment of”, and “until the completion of such corrective action or disciplinary action” for “while such person is an officer or employee of the State approving agency, or State department of veterans’ affairs or State department of education”, and struck out “in which an eligible person or veteran was pursuing a program of education or course under this chapter or chapter 34 or 35 of this title” after “operated for profit”.

Pub. L. 115–251, § 302(a)(3)Subsec. (c). , inserted second subsec. (c) designation and heading, struck out “of Veterans Affairs” after “of the Department”, and substituted “wage, salary, dividend, profit, or gift” for “wages, salary, dividends, profits, gratuities, or services”.

Pub. L. 115–251, § 302(a)(4)Subsec. (d). , inserted second subsec. (d) designation and heading, designated existing provisions as par. (1), struck out “, after reasonable notice and public hearings,” after “The Secretary may” and “of Veterans Affairs” after “of the Department”, and added par. (2).

Pub. L. 102–83, § 5(a)section 1783 of this title1991—, renumbered as this section.

Pub. L. 102–83, § 5(c)(1)Subsec. (b). , substituted “3674” for “1774”.

Pub. L. 101–2371989— substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively, wherever appearing.

Pub. L. 97–2951982—Subsec. (a). inserted “of this title” after “34 or 35”.

Pub. L. 94–502, § 513(a)(14)1976—Subsec. (a). , substituted “such officer’s or employee’s” for “his”.

Pub. L. 94–502, § 513(a)(15)Subsec. (b). , substituted “while such person was” for “while he was” and “the Administrator shall discontinue” for “he shall discontinue”.

Pub. L. 94–502, § 513(a)(16)Subsec. (d). , substituted “if the Administrator finds” for “if he finds”.

Pub. L. 92–5401972—Subsecs. (a), (b). inserted “this chapter or” before “chapter 34 or 35” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–251, title III, § 302(b)132 Stat. 3179

“The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [] and shall apply with respect to conflicts of interest that occur on or after that date.”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–502section 703(b) of Pub. L. 94–502section 3693 of this titleAmendment by effective , see , set out as an Effective Date note under .