Proposed Rule2026-11195
Processing Certain Veteran-Requested Veteran Readiness and Employment Benefit Changes Without Administrative Delays
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 4, 2026
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) proposes to amend regulations under the Veteran Readiness and Employment (VR&E) program to ensure veterans' requests to forgo, suspend, reduce, or terminate their benefits and services may be processed timely and without unnecessary delays. The current regulation requires VR&E to provide at least 30 days advance notice and opportunity for response before taking such actions, even in cases where VR&E is acting on a veteran's request. VA also proposes to clarify existing regulatory exceptions to advance notice to reduce or eliminate potential overpayments for veterans.
Full Text
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<title>Federal Register, Volume 91 Issue 107 (Thursday, June 4, 2026)</title>
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[Federal Register Volume 91, Number 107 (Thursday, June 4, 2026)]
[Proposed Rules]
[Pages 33678-33679]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11195]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
RIN 2900-AS93
Processing Certain Veteran-Requested Veteran Readiness and
Employment Benefit Changes Without Administrative Delays
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend
regulations under the Veteran Readiness and Employment (VR&E) program
to ensure veterans' requests to forgo, suspend, reduce, or terminate
their benefits and services may be processed timely and without
unnecessary delays. The current regulation requires VR&E to provide at
least 30 days advance notice and opportunity for response before taking
such actions, even in cases where VR&E is acting on a veteran's
request. VA also proposes to clarify existing regulatory exceptions to
advance notice to reduce or eliminate potential overpayments for
veterans.
DATES: Comments must be received by August 3, 2026.
ADDRESSES: You may submit comments through <a href="http://www.regulations.gov">www.regulations.gov</a> under
RIN 2900-AS93. That website includes a plain-language summary of the
rulemaking. Instructions for accessing agency documents, submitting
comments, and viewing the rulemaking docket are available on
<a href="http://www.regulations.gov">www.regulations.gov</a> under ``FAQ.''
FOR FURTHER INFORMATION CONTACT: Pamela Salazar, Supervisor of National
Policy, Veteran Readiness and Employment Service, Veterans Benefits
Administration, (202) 461-9600 or <a href="/cdn-cgi/l/email-protection#3040515d555c511e43515c514a51427046511e575f46"><span class="__cf_email__" data-cfemail="99e9f8f4fcf5f8b7eaf8f5f8e3f8ebd9eff8b7fef6ef">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Under 38 CFR 21.420(a), VR&E must notify
veterans in writing of findings affecting receipt of Chapter 31
benefits. VR&E proposes to amend Sec. 21.420(a) by adding the term
``decisions'' to clarify that the regulation addresses both decisions
and findings that affect a veteran's benefits. VR&E also proposes to
amend Sec. 21.420(d) to clarify that prior notification of an adverse
action would not be required when veterans request to forgo, suspend,
reduce, or terminate their benefits under Chapter 31. In accordance
with 38 U.S.C. 5104, VR&E would provide the veteran with a written
notice confirming any action taken regarding their request to forgo,
suspend, reduce, or terminate their Chapter 31 benefits. This notice
would include an explanation of the veteran's appeal rights. The only
change under this proposed amendment to the regulation is that VR&E
would not send a notification prior to acting on the veteran's request.
The purpose of providing prior notification of an adverse action is
to allow the veteran time to meet with their Vocational Rehabilitation
Counselor (VRC) to review the reason for the proposed action and submit
any materials to VA that are relevant to the proposed action prior to
the adverse action taking effect. However, there would be no need to
provide prior notification when VR&E acts upon the veteran's request to
forgo, suspend, reduce, or terminate benefits because VR&E would be
following the veteran's instructions and the veteran would not disagree
with an action they requested that VR&E take. When the veteran
initiates the request to forgo, suspend, reduce, or terminate their
Chapter 31 benefits, as a matter of practice, the VRC will discuss or
likely will have already discussed the advantages and disadvantages of
the requested action,
[[Page 33679]]
which would assist the veteran in making a well-informed decision.
Additionally, the standard 30-day due process period required before
implementing an adverse action can, in certain circumstances, result in
unintended consequences that may cause undue hardship for the veteran.
For example, if a veteran wants to use another VA benefit program while
their Chapter 31 case is open, they would be prevented from doing so
because it would result in duplication of benefits. The proposed
revision would allow VR&E to take immediate action at the request of
the veteran to forgo, suspend, reduce, or terminate benefits and
services under the Chapter 31 program.
Current Sec. 21.420(d) provides that VR&E does not need to provide
advance notification if an adverse action ``arises as a consequence of
a change in training time or other such alteration in circumstances.''
In addition to cases in which a veteran requests to forgo, suspend,
reduce, or terminate benefits, we would clarify that advance
notification is also not needed for cases involving a dependent
reporting error, a veteran's death, or other unexpected circumstance
causing a change to a veteran's payment. VR&E would ensure the accuracy
of the relevant information in these other cases and that any
administrative update takes place quickly to ensure that no overpayment
or no significant overpayment is created that would cause an undue
burden on the veteran.
Executive Orders 12866, 13563, and 14192
VA examined the impact of this rulemaking as required by Executive
Orders 12866 (Sept. 30, 1993) and 13563 (Jan. 18, 2011), which direct
agencies to assess all costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits. The Office of Information and
Regulatory Affairs has determined that this rulemaking is not a
significant regulatory action under Executive Order 12866, as
supplemented by Executive Order 13563.
Economic Impact: This proposed rule, once finalized, is expected to
be a deregulatory action under Executive Order 14192. The proposed
amendment to 38 CFR 21.420 would clarify that VA is not required to
provide prior notification of adverse action when a veteran voluntarily
requests to forgo, suspend, reduce, or terminate their Chapter 31
benefits under the VR&E program. This change reduces administrative
burden and processing delays by eliminating unnecessary procedural
requirements in cases where the veteran has initiated the action. It
enhances program efficiency and responsiveness by allowing VA to act
immediately on a veteran's informed decision, thereby avoiding
potential duplication of benefits, and minimizing the risk of
overpayments.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). This proposed rule would only affect individuals who request to
forgo, suspend, reduce, or terminate their VR&E benefits or services
and would not have any impact on small entities. Therefore, under 5
U.S.C. 605(b), the initial and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do not apply.
Unfunded Mandates
This proposed rule would not result in the expenditure by State,
local, and Tribal governments, in the aggregate, or by the private
sector, of $100 million or more (adjusted annually for inflation) in
any one year.
Paperwork Reduction Act
This proposed rule contains no provisions constituting a collection
of information under the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3521).
List of Subjects in 38 CFR Part 21
Administrative practice and procedure, Armed forces, Civil rights,
Claims, Colleges and universities, Conflict of interests, Education,
Employment, Grant programs--education, Grant programs--veterans, Health
care, Loan programs--education, Loan programs--veterans, Manpower
training programs, Reporting and recordkeeping requirements, Schools,
Travel and transportation expenses, Veterans, Vocational education,
Vocational rehabilitation.
Signing Authority
Douglas A. Collins, Secretary of Veterans Affairs, approved this
document on May 28, 2026, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Gabriela DeCuir,
Alternate Federal Register Liaison Officer, Department of Veterans
Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part 21 as set forth below:
PART 21--VETERAN READINESS AND EMPLOYMENT AND EDUCATION
Subpart A--Veteran Readiness and Employment
0
1. The authority citation for part 21, subpart A continues to read as
follows:
Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in
specific sections.
0
2. Amend Sec. 21.420 by revising the introductory text of paragraph
(a) and the introductory text of paragraph (d) to read as follows:
Sec. 21.420 Informing the veteran.
(a) General. VA will inform a veteran in writing of decisions and
findings affecting receipt of benefits and services under Chapter 31.
This includes veterans:
* * * * *
(d) Prior notification of adverse action. Except in cases of: a
veteran's request to forgo, suspend, reduce, or terminate benefits;
needing to correct or update information regarding a veteran's
dependents; a veteran's death; or other unexpected circumstance causing
a change to a veteran's payment, VA shall provide the veteran at least
30 days to review any proposed adverse action before it is implemented.
Exceptions to the prior notification requirement will allow prompt
adjustment of awards and prevent the creation of debts. During the 30-
day period, the veteran shall be given the opportunity to:
* * * * *
[FR Doc. 2026-11195 Filed 6-3-26; 8:45 am]
BILLING CODE 8320-01-P
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