U.S. Code » Title 38 » Part PART IV— GENERAL ADMINISTRATIVE PROVISIONS › Chapter CHAPTER 53— SPECIAL PROVISIONS RELATING TO BENEFITS

38 U.S.C. § 5314

Indebtedness offsets

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(a)(1) Subject to subsections (b) and (d) of this section and section 3485(e) of this title, the Secretary shall (unless the Secretary waives recovery under section 5302 of this title) deduct the amount of the indebtedness of any person who has been determined to be indebted to the United States by virtue of such person’s participation in a benefits program administered by the Secretary from future payments made to such person under any law administered by the Secretary.(2) The Secretary may not make a deduction under paragraph (1) while the existence or amount of such indebtedness is disputed under section 5314A of this title.(b) Deductions may not be made under subsection (a) of this section with respect to the indebtedness of a person described in such subsection unless the Secretary—(1) has made reasonable efforts to notify such person of such person’s right to dispute through prescribed administrative processes the existence or amount of such indebtedness and of such person’s right to request a waiver of such indebtedness under section 5302 of this title;(2) has made a determination with respect to any such dispute or request or has determined that the time required to make such a determination before making deductions would jeopardize the Secretary’s ability to recover the full amount of such indebtedness through deductions from such payments; and(3) has made reasonable efforts to notify such person about the proposed deductions from such payments.(c) Notwithstanding any other provision of this title or of any other law, the authority of the Secretary to make deductions under this section or to take other administrative action authorized by law for the purpose of collecting an indebtedness described in subsection (a) of this section, or for the purpose of determining the creditworthiness of a person who owes such an indebtedness, shall not be subject to any limitation with respect to the time for bringing civil actions or for commencing administrative proceedings.(d) The Secretary shall prescribe regulations for the administration of this section.(Added Pub. L. 96–466, title VI, § 605(a)(1), Oct. 17, 1980, 94 Stat. 2209, § 3114; amended Pub. L. 102–16, § 6(b)(3), Mar. 22, 1991, 105 Stat. 51; renumbered § 5314 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102–83, §§ 4(a)(1), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 403–406; Pub. L. 117–328, div. U, title II, § 255(a), Dec. 29, 2022, 136 Stat. 5464.)Editorial NotesAmendments

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

1991—Pub. L. 102–40, § 402(b)(1), renumbered section 3114 of this title as this section.

Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted “3485(e)” for “1685(e)”.

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

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

Pub. L. 102–40, § 402(d)(1), substituted “5302” for “3102”.

Pub. L. 102–16 inserted “and section 1685(e) of this title” after “Subject to subsections (b) and (d) of this section”.

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

Pub. L. 102–40, § 402(d)(1), substituted “5302” for “3102” in par. (1).

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

Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 96–466, title VIII, § 802(f), Oct. 17, 1980, 94 Stat. 2218, provided that:“(1) Except as provided in paragraph (2), the amendments made by title VI [see Tables for classification] shall become effective on October 1, 1980.“(2) The amendments made by sections 603 [amending sections 1677 and 1798 [now 3698] of this title] and 604 [amending section 1786 [now 3686] of this title] shall not apply to any person receiving educational assistance under chapter 34 or 35 of title 38, United States Code, on September 1, 1980, for the pursuit of a program of education, as defined in section 1652(b) [now 3452(b)] of such title, in which such person is enrolled on that date, for as long as such person continuously thereafter is so enrolled and meets the requirements of eligibility for such assistance for the pursuit of such program under the provisions of such chapter and chapter 36 of such title as in effect on that date.”

Rules and Regulations

Pub. L. 96–466, title VI, § 605(b), Oct. 17, 1980, 94 Stat. 2211, provided that: “The Administrator of Veterans’ Affairs [now Secretary of Veterans Affairs] shall, not later than January 1, 1981, prescribe the regulations required to be prescribed under sections 3114 and 3115 [now 5314 and 5315] of title 38, United States Code, as added by subsection (a).”

Notes of Decisions
Cited in 33 cases (5 in the last 5 years), 1998–2025 · leading case: Gurley v. McDonough, 23 F.4th 1353 (Fed. Cir. 2022).
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Gurley v. McDonough, 23 F.4th 1353 (Fed. Cir. 2022). · cites it 2× “Gurley’s incarceration after his release, it retroactively reduced the benefits for the now-ended incarceration period, and to recoup the overpay- ment it had made, VA withheld payment of continuing ben- efits for a time, as authorized by 38 U.S.C. § 5314 . Mr. Gurley…”
Bruce v. Principi, 15 Vet. App. 27 (Vet. App. 2001). · cites it 2× “See Record at 5-8; 38 U.S.C. § 5314 (a) (Secretary shall recoup amount that it has been determined was overpaid to benefits recipient); 38 C.”
Rodriguez v. Peake, 511 F.3d 1147 (Fed. Cir. 2008). “(b) For purposes of this section, “entitled to receive” means that at the time of death, the veteran had service-connected disability rated totally disabling by VA but was not receiving compensation because: (1) VA was paying the compensation to the veteran’s dependents; (2) VA…”
Snyder v. Principi, 15 Vet. App. 285 (Vet. App. 2001). “See 38 U.S.C. § 5314 (providing Secretary with authority to “deduct the amount of the indebtedness of any person who has been determined to be indebted to the United States by virtue of such person’s participation in a benefits program administered by the Secretary from future…”
Gumpenberger v. Wilkie, 973 F.3d 1379 (Fed. Cir. 2020). “Per 38 U.S.C. § 5314 (“Indebtedness Offsets”), Mr.”
Steve W. Mountford v. Eric K. Shinseki, 24 Vet. App. 443 (Vet. App. 2011). · cites it 2× “§ 3685 (c); see also 38 U.S.C. § 5314 (a) ("[T]he Secretary shall .”
Snyder v. Gober, 14 Vet. App. 154 (Vet. App. 2000). · cites it 2× “The attorney petitions the Court for a writ of mandamus to require the Secretary to create an overpayment and an offset pursuant to 38 U.S.C. § 5314 against the veteran as to the 20% previously withheld but later erroneously disbursed to the veteran.”
Beaumont v. Dep't of Vet. Affairs, United States (In Re Beaumont), 586 F.3d 776 (10th Cir. 2009). · cites it 2× “Defendant also cites 38 U.S.C. § 5314 as authority for it to offset overpayments against future benefits.”
Narron v. West, 13 Vet. App. 223 (Vet. App. 1999). · cites it 3× “38 U.S.C. § 5314 (a), (b), (c). Section 5302(a), which subsection 5314(b)(1) incorporates by reference, requires that an application for waiver must be made “within 180 days from the date of notification of the indebtedness by the Secretary to the payee.”
Snyder v. Principi, 16 Vet. App. 62 (Vet. App. 2002). · cites it 6× “Secretary's Section 5314 Argument The Secretary also argues that VA cannot pay the attorney because 38 U.S.C. § 5314 would conflict in this context with 38 U.”
Heath v. West, 11 Vet. App. 400 (Vet. App. 1998). “See 38 U.S.C. § 5314 ; 38 C.F.R. §§ 1.911 , 1.”
Jacqueline S. Roberts v. Robert A. McDonald, 27 Vet. App. 108 (Vet. App. 2014). · cites it 2× “Before this Court, the Secretary relies on 38 U.S.C. § 5314 (“Indebtedness offsets”) and its implementing VA regulation 38 C.”
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