US Code

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

38 U.S.C. § 5302

Waiver of recovery of claims by the United States

(a)
(1)
There shall be no recovery of payments or overpayments (or any interest thereon) of any benefits under any of the laws administered by the Secretary whenever the Secretary determines that recovery would be against equity and good conscience, if an application for relief is made within one year from the date of notification of the indebtedness by the Secretary to the payee, or within such longer period as the Secretary determines is reasonable in a case in which the payee demonstrates to the satisfaction of the Secretary that such notification was not actually received by such payee within a reasonable period after such date. The Secretary shall include in the notification to the payee a statement of the right of the payee to submit an application for a waiver under this subsection and a description of the procedures for submitting the application.
(2)
The Secretary may not seek to recover an indebtedness described in paragraph (1) if the Secretary determines that the cost to the Department to recover such indebtedness, as determined when the debt is established, would exceed the amount of the indebtedness.
(b)
With respect to any loan guaranteed, insured, or made under chapter 37 of this title, the Secretary shall, except as provided in subsection (c) of this section, waive payment of an indebtedness to the Department by the veteran (as defined in sections 101, 3701, and 3702(a)(2)(C)(ii) of this title), or the veteran’s spouse, following default and loss of the property, where the Secretary determines that collection of such indebtedness would be against equity and good conscience. An application for relief under this subsection must be made within one year after the date on which the veteran receives notice by certified mail with return receipt requested from the Secretary of the indebtedness. The Secretary shall include in the notification a statement of the right of the veteran to submit an application for a waiver under this subsection and a description of the procedures for submitting the application.
(c)
The recovery of any payment or the collection of any indebtedness (or any interest thereon) may not be waived under this section if, in the Secretary’s opinion, there exists in connection with the claim for such waiver an indication of fraud, misrepresentation or bad faith on the part of the person or persons having an interest in obtaining a waiver of such recovery or the collection of such indebtedness (or any interest thereon).
(d)
No certifying or disbursing officer shall be liable for any amount paid to any person where the recovery of such amount is waived under subsection (a) or (b).
(e)
Where the recovery of a payment or overpayment made from the National Service Life Insurance Fund or United States Government Life Insurance Fund is waived under this section, the fund from which the payment was made shall be reimbursed from the National Service Life Insurance appropriation or the military and naval insurance appropriation, as applicable.

Pub. L. 85–85772 Stat. 1230Pub. L. 92–328, title II, § 202(a)86 Stat. 396Pub. L. 96–466, title VI, § 605(c)(3)94 Stat. 2211Pub. L. 97–306, title IV, § 407(a)96 Stat. 1445Pub. L. 99–576, title VII, § 701(69)100 Stat. 3296Pub. L. 101–237, title III, § 311103 Stat. 2075Pub. L. 102–40, title IV, § 402(b)(1)105 Stat. 238Pub. L. 102–54, § 5105 Stat. 268Pub. L. 102–83105 Stat. 403–406Pub. L. 102–547, § 12106 Stat. 3645Pub. L. 105–33, title VIII, § 8033(b)111 Stat. 669Pub. L. 117–328, div. U, title II136 Stat. 5464(, , , § 3102; , , ; , , ; , , ; , , ; , , ; renumbered § 5302, , , ; , , ; , §§ 4(a)(1), (3), (4), (b)(1), (2)(E), 5(c)(1), , ; , , ; , , ; , §§ 254(a), 255(c), , , 5465.)

Editorial Notes

Amendments

Pub. L. 117–328, § 255(c)2022—Subsec. (a). , designated existing provisions as par. (1) and added par. (2).

Pub. L. 117–328, § 254(a)Subsec. (a)(1). , substituted “one year” for “180 days”.

Pub. L. 105–331997—Subsec. (b). inserted “with return receipt requested” after “certified mail”.

Pub. L. 102–547Pub. L. 102–54, § 51992—Subsecs. (a), (b). made technical correction to directory language of . See 1991 Amendment note below.

Pub. L. 102–40section 3102 of this title1991— renumbered as this section.

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

Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”.

Pub. L. 102–54, § 5(1)Pub. L. 102–547, as amended by , inserted at end “The Secretary shall include in the notification to the payee a statement of the right of the payee to submit an application for a waiver under this subsection and a description of the procedures for submitting the application.”

Pub. L. 102–83, § 5(c)(1)Subsec. (b). , substituted “3701” and “3702(a)(2)(C)(ii)” for “1801” and “1802(a)(2)(C)(ii)”, respectively.

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

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

Pub. L. 102–54, § 5(2)Pub. L. 102–547, as amended by , substituted “101, 1801, and 1802(a)(2)(C)(ii) of this title” for “101 and 1801” and inserted at end “An application for relief under this subsection must be made within one year after the date on which the veteran receives notice by certified mail from the Secretary of the indebtedness. The Secretary shall include in the notification a statement of the right of the veteran to submit an application for a waiver under this subsection and a description of the procedures for submitting the application.”

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

Pub. L. 101–237, § 311(1)1989—Subsec. (b). , substituted “shall, except as provided in subsection (c) of this section,” for “may”.

Pub. L. 101–237, § 311(2)Subsec. (c). , substituted “The recovery of any payment or the collection of any indebtedness (or any interest thereon) may not be waived under this section” for “The Administrator may not exercise the Administrator’s authority under subsection (a) or (b) of this section to waive recovery of any payment or the collection of any indebtedness (or any interest thereon)” and substituted “or bad faith” for “, material fault, or lack of good faith”.

Pub. L. 99–576, § 701(69)(A)1986—Subsec. (b). , substituted “the veteran’s” for “his” before “spouse”.

Pub. L. 99–576, § 701(69)(B)Subsec. (c). , substituted “the Administrator’s” for “his” in two places.

Pub. L. 97–3061982—Subsec. (a). substituted “180 days” for “two years”, and inserted condition relating to such longer period as the Administrator determines is reasonable in cases demonstrated to involve actual failure of notification to payee.

Pub. L. 96–466, § 605(c)(3)(A)1980—Subsec. (a). , inserted “(or any interest thereon)” after “overpayments”.

Pub. L. 96–466, § 605(c)(3)(B)Subsec. (c). , inserted “(or any interest thereon)” after “indebtedness” in two places.

Pub. L. 92–3281972— substituted “claims by the United States” for “overpayments” in section catchline, struck out “(except servicemen’s indemnity)” after “any benefits” in subsec. (a), struck out provisions relating to recovery of benefits from any person without fault on his part, and inserted provisions relating to an application for relief made within two years from the date of notification of the indebtedness by the Administrator to the payee, added subsecs. (b) and (c), redesignated former subsec. (b) as (d), and inserted reference to subsec. (b), and redesignated former subsec. (c) as (e).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–328, div. U, title II, § 254(b)136 Stat. 5464

“Subsection (a) [amending this section] shall take effect on the date that is two years after the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1997 Amendment

Pub. L. 105–33section 8033(c) of Pub. L. 105–33section 3726 of this titleAmendment by applicable with respect to any indebtedness to the United States arising pursuant to chapter 37 of this title before, on, or after , see , set out as a note under .

Effective Date of 1982 Amendment

Pub. L. 97–306, title IV, § 407(b)96 Stat. 1445

“The amendments made by subsection (a) [amending this section] shall apply only with respect to notifications of indebtedness that are made by the Administrator of Veterans’ Affairs after .”
, , , provided that:

Effective Date of 1980 Amendment

Pub. L. 96–466section 802(f) of Pub. L. 96–466section 5314 of this titleAmendment by effective , except as otherwise specifically provided, see , set out as an Effective Date note under .

Effective Date of 1972 Amendment

Pub. L. 92–328section 301(c) of Pub. L. 92–328section 3713 of this titleAmendment by effective , see , set out as a note under .

Pub. L. 92–328Applicability of Waiver Authority to Improper Payments, Overpayments, and Indebtedness Established by the Administrator Prior to Effective Date of

Pub. L. 92–328, title II, § 202(b)86 Stat. 397Pub. L. 92–328, , , provided that the waiver authority under subsec. (a) of this section is applicable to improper payments, overpayments, and indebtedness established by the Administrator prior to the effective date of if application for relief was pending on , or such an application was made within two years from .

Pub. L. 92–328For effective date of , see Effective Date of 1972 Amendment notes set out under sections 1114, 1134, and 3713 of this title.