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38 U.S.C. § 113 — Treatment of certain programs under sequestration procedures

Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 113 — Treatment of certain programs under sequestration procedures

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Source location: Title 38, Chapter 1, § 113; chapter-001-general.md

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**(a)** The following programs shall be exempt from sequestration or reduction under part C of the Balanced Budget and Emergency Deficit Control Act of 1985 ([2 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim) et seq.) or any other sequestration law and shall not be included in any report specifying reductions in Federal spending: (1) Benefits under chapter 21 of this title, relating to specially adapted housing and mortgage-protection life insurance for certain veterans with service-connected disabilities. (2) Benefits under [section 2307 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section2307&num=0&edition=prelim), relating to burial benefits for veterans who die as the result of a service-connected disability. (3) Benefits under chapter 39 of this title, relating to automobiles and adaptive equipment for certain disabled veterans and members of the Armed Forces. (4) Assistance and services under chapter 31 of this title, relating to training and rehabilitation for certain veterans with service-connected disabilities. (5) Benefits under chapter 35 of this title, relating to educational assistance for survivors and dependents of certain veterans with service-connected disabilities. (6) Benefits under subchapters I, II, and III of chapter 37 of this title, relating to housing loans for certain veterans and for the spouses and surviving spouses of certain veterans. **(b)** The following accounts of the Department shall be exempt from sequestration or reduction under part C of the Balanced Budget and Emergency Deficit Control Act of 1985 ([2 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim) et seq.) or any other sequestration law and shall not be included in any report specifying reductions in Federal spending: (1) The following life insurance accounts: (A) The National Service Life Insurance Fund authorized by [section 1920 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1920&num=0&edition=prelim). (B) The Service-Disabled Veterans Insurance Fund authorized by [section 1922 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1922&num=0&edition=prelim). (C) The Veterans Special Life Insurance Fund authorized by [section 1923 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1923&num=0&edition=prelim). (D) The Veterans Reopened Insurance Fund authorized by [section 1925 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1925&num=0&edition=prelim). (E) The United States Government Life Insurance Fund authorized by [section 1955 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1955&num=0&edition=prelim). (F) The Veterans Insurance and Indemnity appropriation authorized by [section 1919 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1919&num=0&edition=prelim). (2) The following revolving fund accounts: (A) The Department of Veterans Affairs Special Therapeutic and Rehabilitation Activities Fund established by [section 1718(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1718/c&num=0&edition=prelim). (B) The Veterans’ Canteen Service revolving fund authorized by [section 7804 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section7804&num=0&edition=prelim). **(c)** (1) A benefit under section 2301, 2303, 2306, or 2308 of this title that is subject to reduction under a sequestration order or sequestration law shall be paid in accordance with the rates determined under the sequestration order or law (if any) in effect on the date of the death of the veteran concerned. (2) A benefit paid to, or on behalf of, an eligible veteran for pursuit of a program of education or training under chapter 30, 31, 34, 35, or 36 of this title that is subject to a sequestration order or a sequestration law shall be paid in accordance with the rates determined under the sequestration order or law (if any) in effect during the period of education or training for which the benefit is paid. (3) In implementation of a sequestration order or law with respect to each account from which a benefit described in paragraph (1) or (2) of this subsection is paid (including the making of determinations of the amounts by which such benefits are to be reduced), the total of the amounts (as estimated by the Secretary after consultation with the Director of the Congressional Budget Office) by which payments of such benefit will be reduced by reason of such paragraph after the last day of the period during which such order or law is in effect shall be deemed to be additional reductions in the payments of such benefit made, and in new budget authority for such payments, during such period. **(d)** In computing the amount of new budget authority by which a budget account of the Department is to be reduced for a fiscal year under a report of the Director of the Office of Management and Budget, or under an order of the President under part C of the Balanced Budget and Emergency Deficit Control Act of 1985, the base from which the amount of the reduction for such account is determined shall be established without regard to any amount of new budget authority in such account (determined under section 251(a)(6) 11 See References in Text note below. of such Act) for any of the programs listed in subsection (a) of this section. **(e)** This section applies without regard to any other provision of law (whether enacted before, on, or after the date of the enactment of this section) unless such Act expressly provides that it is enacted as a limitation to this section. **(f)** For the purposes of this section: (1) The term “sequestration” means a reduction in spending authority and loan guarantee commitments generally throughout the Government under the Balanced Budget and Emergency Deficit Control Act of 1985 ([2 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim) et seq.) or any other law. (2) The term “sequestration law” means a law enacted with respect to a sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985 ([2 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim) et seq.) or any other law (under the procedures specified in that Act or otherwise). (3) The term “sequestration order” means an order of the President issued under part C of such Act.

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1925 — Limited period for acquiring insurance

**(a)** Any person (other than a person referred to in subsection (f) of this section) heretofore eligible to apply for National Service Life Insurance after October 7, 1940, and before January 1, 1957, who is found by the Secretary to be suffering (1) from a service-connected disability or disabilities for which compensation would be payable if 10 percent or more in degree and except for which such person would be insurable according to the standards of good health established by the Secretary; or (2) from a non-service-connected disability which renders such person uninsurable according to the standards of good health established by the Secretary and such person establishes to the satisfaction of the Secretary that such person is unable to obtain commercial life insurance at a substandard rate, shall, upon application in writing made before May 2, 1966, compliance with the health requirements of this section and payment of the required premiums, be granted insurance under this section. **(b)** If, notwithstanding the applicant’s service-connected disability, such person is insurable according to the standards of good health established by the Secretary, the insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except (1) five-year level premium term insurance may not be issued; (2) the net premium rates shall be based on the 1958 Commissioners Standard Ordinary Basic Mortality Table, increased at the time of issue by such an amount as the Secretary determines to be necessary for sound actuarial operations, and thereafter such premiums may be adjusted as the Secretary determines to be so necessary but at intervals of not less than two years; (3) an additional

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 7804 — Financing of Service

To finance the establishment, maintenance, and operation of the Service there is hereby authorized to be appropriated, from time to time, such amounts as are necessary to provide for (1) the acquisition of necessary furniture, furnishings, fixtures, and equipment for the establishment, maintenance, and operation of canteens, warehouses, and storage depots; (2) stocks of merchandise and supplies for canteens and reserve stocks of same in warehouses and storage depots; (3) salaries, wages, and expenses of all employees; (4) administrative and operation expenses; and (5) adequate working capital for each canteen and for the Service as a whole. Amounts appropriated under the authority contained in this chapter and all income from canteen operations become and will be administered as a revolving fund to effectuate the provisions of this chapter.

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1920 — National Service Life Insurance Fund

**(a)** The National Service Life Insurance Fund heretofore created in the Treasury is continued as a permanent trust fund. Except as otherwise provided in this chapter, all premiums paid on account of National Service Life Insurance shall be deposited and covered into the Treasury to the credit of such fund, which, together with interest earned thereon, shall be available for the payment of liabilities under such insurance, including payment of dividends and refunds of unearned premiums, and for the reimbursement of administrative costs under subsection (c). Payments from this fund shall be made upon and in accordance with awards by the Secretary. **(b)** The Secretary is authorized to set aside out of such fund such reserve amounts as may be required under accepted actuarial principles to meet all liabilities under such insurance; and the Secretary of the Treasury is authorized to invest and reinvest such fund, or any part thereof, in interest-bearing obligations of the United States or in obligations guaranteed as to principal and interest by the United States, and to sell such obligations for the purposes of such fund. **(c)** (1) For each fiscal year for which this subsection is in effect, the Secretary shall, from the National Service Life Insurance Fund, reimburse the “General operating expenses” account of the Department for the amount of administrative costs determined under paragraph (2) for that fiscal year. Such reimbursement shall be made from any surplus earnings for that fiscal year that are available for dividends on such insurance after claims have been paid and actuarially determined reserves have been set aside. However, if the amount of such administrative costs exceeds the amount of such surplus earnings, such reimbursement shall be made only to

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1923 — Veterans’ Special Life Insurance

**(a)** Insurance heretofore granted under the provisions of section 621 of the National Service Life Insurance Act of 1940, against the death of the policyholder occurring while such insurance is in force, is subject to the same terms and conditions as are contained in standard policies of National Service Life Insurance on the five-year level premium term plan except (1) such insurance may not be exchanged for or converted to insurance on any other plan; (2) the premium rates for such insurance shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 2¼ per centum per annum; (3) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949, and interest at the rate of 2¼ per centum per annum; (4) all premiums and other collections on such insurance and any total disability provisions added thereto shall be credited to a revolving fund in the Treasury of the United States, which, together with interest earned thereon, shall be available for the payment of liabilities under such insurance and any total disability provisions added thereto, including payments of dividends and refunds of unearned premiums, and for the reimbursement of administrative costs under subsection (d). **(b)** Any term insurance heretofore issued under section 621 of the National Service Life Insurance Act of 1940, may be converted to a permanent plan of insurance or exchanged for a policy of limited convertible five-year level premium term insurance issued under this subsection. Insurance issued under this subsection shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except (1) after September 1, 1960, limited convertible te

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Federal law — U.S. Code and appendices · legal_authorities

2 U.S.C. § 900 — Statement of budget enforcement through sequestration; definitions

**(a) Omitted** **(b) General statement of budget enforcement through sequestration** This subchapter provides for budget enforcement as called for in House Concurrent Resolution 84 (105th Congress, 1st session). **(c) Definitions** As used in this subchapter: (1) The terms “budget authority”, “new budget authority”, “outlays”, and “deficit” have the meanings given to such terms in section 3 of the Congressional Budget and Impoundment Control Act of 1974 [[2 U.S.C. 622](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section622&num=0&edition=prelim)] and “discretionary spending limit” shall mean the amounts specified in [section 901 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim). (2) The terms “sequester” and “sequestration” refer to or mean the cancellation of budgetary resources provided by discretionary appropriations or direct spending law. (3) The term “breach” means, for any fiscal year, the amount (if any) by which new budget authority or outlays for that year (within a category of discretionary appropriations) is above that category’s discretionary spending limit for new budget authority or outlays for that year, as the case may be. (4) (A) The term “nonsecurity category” means all discretionary appropriations not included in the security category defined in subparagraph (B). (B) The term “security category” includes discretionary appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account (95–0401–0–1–054), and all budget accounts in budget function 150 (international affairs). (C

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1922 — Legacy service disabled veterans’ insurance

**(a)** Any person who is released from active military, naval, air, or space service, under other than dishonorable conditions on or after April 25, 1951, and is found by the Secretary to be suffering from a disability or disabilities for which compensation would be payable if 10 per centum or more in degree and except for which such person would be insurable according to the standards of good health established by the Secretary, shall, upon application in writing made within two years from the date service-connection of such disability is determined by the Secretary and payment of premiums as provided in this subchapter, be granted insurance by the United States against the death of such person occurring while such insurance is in force. If such a person is shown by evidence satisfactory to the Secretary to have been mentally incompetent during any part of the two-year period, application for insurance under this section may be filed within two years after a guardian is appointed or within two years after the removal of such disability as determined by the Secretary, whichever is the earlier date. If the guardian was appointed or the removal of the disability occurred before January 1, 1959, application for insurance under this section may be made within two years after that date. Insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except (1) the premium rates for such insurance shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 2¼ per centum per annum; (2) all cash, loan, paid-up, and extended values shall be based upon the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rat

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1919 — National Service Life Insurance appropriation

**(a)** The National Service Life Insurance appropriation is continued and there is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this chapter and the provisions heretofore prescribed in the National Service Life Insurance Act of 1940, or related Acts, for the payment of liabilities under National Service Life Insurance. Payment from this appropriation shall be made upon and in accordance with awards by the Secretary. **(b)** All premiums heretofore and hereafter paid on insurance issued or reinstated under section 602(v)(1) of the National Service Life Insurance Act of 1940 where the requirement of good health was waived under such section because of a service-incurred injury or disability shall be credited directly to the National Service Life Insurance appropriation and any payments of benefits heretofore and hereafter made on such insurance shall be made directly from such appropriation.

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Federal law — U.S. Code and appendices · legal_authorities

2 U.S.C. § 901 — Enforcing discretionary spending limits

**(a) Enforcement** (1) **Sequestration** — Within 15 calendar days after Congress adjourns to end a session there shall be a sequestration to eliminate a budget-year breach, if any, within any category. (2) **Eliminating a breach** — Each non-exempt account within a category shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category. (3) **Military personnel** — If the President uses the authority to exempt any personnel account from sequestration under [section 905(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section905/f&num=0&edition=prelim), each account within subfunctional category 051 (other than those military personnel accounts for which the authority provided under [section 905(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section905/f&num=0&edition=prelim) has been exercised) shall be further reduced by a dollar amount calculated by multiplying the enacted level of non-exempt budgetary resources in that account at that time by the uniform percentage necessary to offset the total dollar amount by which outlays are not reduced in military personnel accounts by reason of the use of such authority. (4) **Part-year appropriations** — If, on the date specified in paragraph (1), there is in effect an Act making or continuing appropriations for part of a fiscal year for any budget account, then the dollar sequestration calculated for that account under paragraphs (2) and (3) shall be subtracted from— (A) the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1955 — United States Government Life Insurance Fund

**(a)** All premiums paid on account of United States Government life insurance shall be deposited and covered into the Treasury to the credit of the United States Government Life Insurance Fund and shall be available for the payment of losses, dividends, refunds, and other benefits provided for under such insurance, including such liabilities as shall have been or shall hereafter be reduced to judgment in a district court of the United States or the United States District Court for the District of Columbia, and for the reimbursement of administrative costs under subsection (c). Payments from this fund shall be made upon and in accordance with awards by the Secretary. **(b)** The Secretary is authorized to set aside out of the funds so collected such reserve funds as may be required, under accepted actuarial principles, to meet all liabilities under such insurance; and the Secretary of the Treasury is authorized to invest and reinvest the said United States Government Life Insurance Fund, or any part thereof, in interest-bearing obligations of the United States or bonds of the Federal farm-loan banks and to sell said obligations of the United States or the bonds of the Federal farm-loan banks for the purposes of such Fund. **(c)** (1) For each fiscal year for which this subsection is in effect, the Secretary shall, from the United States Government Life Insurance Fund, reimburse the “General operating expenses” account of the Department for the amount of administrative costs determined under paragraph (2) for that fiscal year. Such reimbursement shall be made from any surplus earnings for that fiscal year that are available for dividends on such insurance after claims have been paid and actuarially determined reserves have been set aside. However, if the amount of su

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 2307 — Death from service-connected disability

In any case in which a veteran dies as the result of a service-connected disability or disabilities, the Secretary, upon the request of the survivors of such veteran, shall pay the burial and funeral expenses incurred in connection with the death of the veteran in an amount not exceeding the greater of (1) $2,000, or (2) the amount authorized to be paid under [section 8134(a) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section8134/a&num=0&edition=prelim) in the case of a Federal employee whose death occurs as the result of an injury sustained in the performance of duty. Funeral and burial benefits provided under this section shall be in lieu of any benefits authorized under subsections (a)(1) and (b)(2) of [section 2303 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section2303&num=0&edition=prelim).

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