Education and Training

Issues/Purpose: On January 2, 2025, the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (Dole Act), Public Law 118-210, was enacted into law. Section 212 of the Act established the Department of Veterans Affairs’ high technology program, referred to as VET TEC 2.0, by adding 38 U.S.C. § 3699C. Section 3699C(e) includes requirements analogous to the traditional “85/15 rule” applicable to GI Bill-approved programs under 38 U.S.C. § 3680A(d).

This advisory provides guidance about how existing 85/15 requirements should apply within the context of VET TEC 2.0, including treatment of programs approved under multiple authorities, application of Full-Time Equivalency (FTE) methodologies, interaction with traditional 85/15 provisions, and a VET TEC 2.0 waiver of 85/15. Specifically, this advisory provides guidance regarding application of 85/15 requirements applicable to Veterans Technology Education Courses (VET TEC 2.0) programs under 38 U.S.C. § 3699C(e), including treatment of programs approved under both VET TEC 2.0 and other VA education benefit authorities, 85/15 calculation methodologies, 35 percent exemptions, VET TEC 2.0 waiver procedures, and related reporting requirements. To develop this guidance, VA considered whether the enrollment-ratio requirements established by section 3699C(e) should be administered using the traditional 85/15 framework, the revised framework resulting from amendments to section 3680A(d), or some combination of both.

Historical and Statutory Background

The traditional “85/15 rule” (38 U.S.C. 3680A(d) and 38 CFR 21.4201(a)) prohibits the Department of Veterans Affairs (VA) from providing educational assistance benefits to new students once “more than 85 percent of the students enrolled in the [program of education] are having all or part of their tuition, fees, or other charges paid to or for them by the educational institution or by the Department of Veterans Affairs.” (38 U.S.C. §3680A(d)(1)). The provision serves as a market validator of the costs of tuition and fees charged by Education and Training Institutions (ETIs) approved for receipt of GI bill benefits by ensuring that at least 15% of students in any educational program approved for the receipt of GI Bill benefits are willing to pay the full tuition and fee amount out-of-pocket.

VET TEC 2.0 was established under section 212 of the Dole Act, by creating a separate statutory authority under 38 U.S.C. § 3699C(e) which includes enrollment-ratio requirements that serve the same general purpose as the traditional 85/15 rule, though VET TEC 2.0 differs from traditional GI Bill educational assistance in several important respects, including provider approval processes, performance-based provider payments, employment outcome requirements, and continuing education requirements. Although section 3699C(e) incorporates enrollment-ratio requirements similar to those found in the traditional 85/15 framework, Congress did not expressly incorporate several provisions added to section 3680A(d) through the Ensuring Best Schools for Veterans Act, which modified the 85/15 rule including the revised accredited and nonaccredited program distinctions, modified exemption structures, and other program-specific provisions associated with the amended framework. Instead, Congress established a separate enrollment-ratio requirement applicable specifically to VET TEC 2.0 providers.

Discussion/Answer

Same Program Treatment

As 85/15 calculations are intended to evaluate the enrollment composition of an educational program rather than the statutory authority through which a student receives educational assistance, consideration was given to whether programs approved under both VET TEC 2.0 and other VA education benefit authorities should be treated separately because they may have separate approval pathways, separate facility codes, or different statutory authorities.

Although VET TEC 2.0 approvals may require separate administrative tracking and may be assigned separate facility codes for approval, certification, or payment purposes, those administrative distinctions do not, by themselves, create separate educational programs for purposes of 85/15 calculations. Accordingly, when a high-technology program of education is approved under both VET TEC 2.0 and another VA education benefit authority, VA will determine whether the approvals represent the same educational program based on the substance of the training provided. Factors such as curriculum, instructional content, training objectives, program length, and overall educational structure may be considered. Where the underlying curriculum, instruction, and educational objectives are substantively the same, the program will be treated as the same educational program for purposes of 85/15 calculations regardless of separate facility codes, approval pathways, or statutory authorities. The existence of separate statutory authorities does not, by itself, require separate enrollment-ratio calculations where the underlying educational program remains the same. This is status quo and consistent with how VA has historically applied the 85/15 rules when a program has a variety of students using different VA education assistance programs simultaneously.

Because enrollment-ratio calculations under both traditional 85/15 framework and VET TEC 2.0 are performed at the educational program level, all students enrolled in the same educational program generally must be included in a single enrollment-ratio calculation. Providers should not separately assign, allocate, or segregate supported and non-supported students among different facility codes when the underlying educational program is the same, as these administrative distinctions could artificially affect enrollment ratios and would be inconsistent with the purpose of the 85/15 framework.

Example Scenario — Consistent with VA Guidance

A provider offers a cybersecurity training program approved under both GI Bill authorities and VET TEC 2.0. During a term of enrollment, the program includes 11 students receiving GI Bill benefits, 2 students receiving VET TEC 2.0 assistance, and 4 students who are not receiving supported educational assistance.

Although students receive educational assistance under different statutory authorities and are processed through separate administrative systems, all students are enrolled in the same cybersecurity program, receive the same instruction, follow the same curriculum, and pursue the same educational objective. Accordingly, the provider performs a single enrollment-ratio calculation that includes all 17 students enrolled in the program. The calculation reflects 13 supported students and 4 non-supported students, resulting in a supported enrollment ratio of 76.5 percent.

Example Scenario — Inconsistent with VA Guidance

A provider offers the same cybersecurity training program under both GI Bill authorities and VET TEC 2.0. The provider performs separate enrollment-ratio calculations based solely upon the separate facility codes assigned to each approval and excludes certain students from one calculation or the other.

Because the underlying curriculum, instruction, and educational objectives are identical, the provider is operating a single educational program and separate calculations are not appropriate.

Application of 85/15 Requirements

Application of the 85/15 provisions requires providers to distinguish between supported and non-supported students when performing enrollment-ratio calculations. In general, supported students include individuals whose tuition, fees, or institutional charges are paid in whole or in part through VA educational assistance or other supported funding sources recognized under applicable 85/15 requirements.

Consistent with the discussion above, VET TEC 2.0 providers generally should apply traditional 85/15 calculation methodologies when determining compliance with the enrollment-ratio requirements established under 38 U.S.C. § 3699C(e), unless otherwise specified in this advisory.

Reporting requirements depend upon the program’s approval status. For a program approved only under VET TEC 2.0, the provider submits the enrollment-ratio information necessary to satisfy the requirements of 38 U.S.C. § 3699C(e). For a program approved only under GI Bill authorities, the provider submits the enrollment-ratio information necessary to satisfy the requirements of 38 U.S.C. § 3680A(d).

For a high technology program approved under both VET TEC 2.0 and GI Bill authorities, the provider performs a single enrollment-ratio calculation consistent with the Same Program Treatment principles discussed above. However, the provider reports the results of that calculation separately through the applicable GI Bill and VET TEC 2.0 reporting processes. Separate reporting obligations do not alter the underlying calculation or create separate educational programs for purposes of 85/15 compliance.

Example Scenario — Consistent with VA Guidance

A provider receives approval for a VET TEC 2.0 cybersecurity training program and performs its 85/15 calculation using the same methodology established under 38 CFR 21.4201. The provider identifies supported and non-supported students, applies applicable calculation requirements, and maintains records supporting the calculation.

Example Scenario — Inconsistent with VA Guidance

A provider assumes that VET TEC 2.0 programs are not subject to 85/15 because VET TEC 2.0 operates under a separate statutory authority from traditional GI Bill programs. As a result, the provider does not track supported students or prepare 85/15 calculations.

Full-Time Equivalency (FTE)

Traditional 85/15 calculations utilize Full-Time Equivalency (FTE) methodologies to proportionally account for students attending less than full-time. FTE calculations provide a more accurate representation of student participation by accounting for differences in training time rather than simply counting each enrolled individual equally.

Because 85/15 calculations depend upon accurately measuring participation levels, VET TEC 2.0 programs will continue utilizing existing FTE methodologies under 38 CFR 21.4201. Additional information regarding FTE calculations is available on VA’s Full-Time Equivalency (FTE) guidance website:

VA Full-Time Equivalency (FTE) Guidance for 85/15 Calculations

Although many VET TEC 2.0 programs are expected to operate as full-time clock hour programs, traditional FTE methodologies remain applicable in circumstances where difference in training time must be accounted for to accurately measure participation levels.

Example Scenario — Consistent with VA Guidance

A VET TEC 2.0 provider offers a cybersecurity program approved under 38 U.S.C. § 3699C(e). During one enrollment period, eight students attend the program on a full-time basis, while two students attend at one-half training time due to an approved alternative schedule.

Rather than counting all 10 students equally, the provider applies VA’s established FTE methodology under 38 CFR 21.4201 to account for actual training time. The eight full-time students equal 8.0 FTE students. The two half-time students equal 1.0 FTE student (0.5 FTE each). Accordingly, the provider reports a total enrollment of 9.0 FTE students for purposes of the 85/15 calculation.

By accounting for actual participation levels, the provider appropriately applies the same methodology used under traditional 85/15 requirements. Although many VET TEC 2.0 programs may operate as full-time clock-hour programs that do not require FTE adjustments, existing FTE methodologies remain applicable where differences in training time exist.

Example Scenario — Inconsistent with VA Guidance

A VET TEC 2.0 provider has the same student population consisting of eight full-time students and two students attending at one-half training time. The provider counts all 10 students as full-time students and reports a total enrollment of 10.0 FTE students without accounting for differences in training time. In this case, the reported enrollment does not accurately reflect actual student participation levels. Under these circumstances, the provider did not appropriately apply the calculation methodology used under traditional 85/15 requirements.

35 Percent Exemption

Under the traditional GI Bill 85/15 framework, a statutory exemption exists which can relieve institutions or programs from routine 85/15 reporting requirements or from 85/15 rule compliance altogether when VA beneficiaries comprise 35 percent or less of the school’s total enrollment. The 2022 Ensuring Best Schools for Veterans Act (Public Law 117-174), amended 38 U.S.C. § 3680A(d) modifying the 35 percent exemption to differentiate the operation of the exemption depending upon whether the approved program is offered by an accredited or nonaccredited educational institution. Specifically, for accredited institutions where VA beneficiaries comprise 35 percent or less of the school’s total enrollment, the 85/15 rule does not apply at all. This means that the institution is not required to track, calculate, or report enrollment ratios for its GI Bill-approved programs.

For nonaccredited institutions, the 35 percent exemption operates more narrowly by relieving the institution only from the obligation to submit routine 85/15 reports. The 85/15 rule itself continues to apply, and the institution remains obligated to monitor each approved program for compliance with the enrollment ratio. If a program is found to exceed the 85 percent threshold during routine monitoring, the institution must submit an 85/15 report and that program is excluded from the exemption until it returns to compliance. Additionally, VA or a State Approving Agency may request 85/15 calculations at any time.

Because the traditional 35 percent exemption operates differently for accredited and nonaccredited institutions, VA considered whether either exemption framework should apply under 38 U.S.C. § 3699C(e). VA determined that Congress did not establish a comparable 35 percent exemption for VET EC 2.0. Accordingly, regardless of whether a provider qualifies for the traditional accredited or nonaccredited 35 percent exemption, the existence of that exemption under traditional GI Bill authorities does not independently relieve a provider from the enrollment-ratio requirements applicable to VET TEC 2.0. Therefore, even where the same educational program qualifies for a traditional accredited or nonaccredited 35 percent exemption, section 3699C(e) does not establish a corresponding exemption from the enrollment ratio requirement applicable to VET TEC 2.0.

Accordingly, providers operating dual-approved programs must distinguish between the obligations applicable to their traditional VA education benefit approvals (38 U.S.C. § 3680A(d)) and those applicable to their VET TEC 2.0 approvals (38 U.S.C. § 3699C). A provider may continue to rely upon a valid traditional 35 percent exemption for purposes of its GI Bill reporting or compliance obligations. However, unless VA approves a VET TEC 2.0 waiver of 85/15 requirements, the provider remains responsible for complying with the enrollment-ratio requirements established under 38 U.S.C. § 3699C(e). Relief available under the traditional GI Bill framework should not be interpreted as automatically extending to VET TEC 2.0.

Where a VET TEC 2.0 program exceeds applicable enrollment-ratio limits, the appropriate avenue for relief is a VET TEC 2.0 waiver of 85/15 requirements, rather than reliance upon a traditional 35 percent exemption.

Example Scenario — Consistent with VA Guidance

An accredited provider offers a software development program approved under both GI Bill authorities and VET TEC 2.0. The institution satisfies the requirements for a 35 percent exemption under the traditional 85/15 framework. As a result, the accredited provider is exempt, so 85/15 restrictions to not apply to its non-VET TEC 2.0 GI Bill approved programs.

The provider recognizes, however, that the traditional 35 percent exemption does not independently eliminate the enrollment-ratio requirements applicable to VET TEC 2.0. Because the provider has not obtained a VET TEC 2.0 Waiver of 85/15 Requirements, the provider continues to comply with the VET TEC 2.0 reporting requirements applicable under 38 U.S.C. § 3699C(e). Under these circumstances, the provider correctly distinguishes between the separate obligations arising under the GI Bill and VET TEC 2.0 frameworks.

Preferred Provider Status and VET TEC 2.0 Waivers

A waiver is a discretionary form of relief that VA may grant on a case-by-case basis when strict application of the 85/15 requirement would not accurately reflect the provider’s performance or the program’s value to Veterans. Unlike the 35 percent statutory exemption provisions that automatically apply when specific requirements are satisfied, a waiver requires a provider to submit a request and supporting information for VA review.

VA has considered how a Preferred Provider designation should interact with the VET TEC 2.0 85/15 waiver process. While Preferred Providers demonstrate positive outcomes under the VET TEC 2.0 framework, this designation and a waiver approval are not interchangeable concepts. Preferred Provider designation reflects certain positive provider characteristics or outcomes, such as employment results, successful completion outcomes, or other performance indicators. While these factors may support a provider’s waiver request, Preferred Provider designation does not replace the waiver process itself.

Accordingly, providers seeking relief from applicable VET TEC 2.0 85/15 requirements must submit a VET TEC 2.0 85/15 waiver request with supporting information for review. VA may consider Preferred Provider designation together with other relevant information, including employment outcomes, completion rates, provider history, industry partnerships, and other indicators demonstrating program effectiveness and positive Veteran outcomes.

Because VET TEC 2.0 differs from traditional GI Bill programs, certain traditional waiver considerations may not align directly with VET TEC 2.0 providers. For example, some providers may not have extensive GI Bill operating history but may have other evidence demonstrating effectiveness within the high technology training environment.

Approval of a VET TEC 2.0 85/15 waiver applies only to the provider’s VET TEC 2.0 approval and does not relieve the provider of separate compliance obligations applicable under other VA education benefit authorities. Providers approved under both VET TEC 2.0 and GI Bill authorities must continue satisfying applicable requirements under each authority.

Example Scenario — Consistent with VA Guidance

A Preferred Provider approaches applicable 85/15 limitations and seeks relief to continue enrolling additional VET TEC 2.0 students. Although the provider believes its Preferred Provider designation demonstrates strong outcomes, the provider submits a VET TEC 2.0 85/15 waiver request with supporting information, including employment placement data, completion rates, industry partnerships, and other evidence demonstrating positive Veteran outcomes. Then VA considers the designation together with the provider’s supporting information and outcome data.

Example Scenario — Inconsistent with VA Guidance

A provider offers cybersecurity bootcamp approved under both GI Bill and VET TEC 2.0 authorities. The provider receives a VET TEC 2.0 waiver and assumes it may disregard applicable 85/15 requirements associated with its GI Bill approval.

Here, the provider’s assumption is incorrect. Approval of a VET TEC 2.0 waiver applies only to the provider's VET TEC 2.0 obligations and does not alter separate requirements applicable under other VA educational assistance authorities.

Waiver Criteria

Because 38 U.S.C. § 3699C(e) and 38 U.S.C. § 3680A(d) impose the same general prohibition, VA will evaluate VET TEC 2.0 waiver requests using the same criteria set forth in 38 CFR 21.4201(h) for traditional 85/15 waivers. Those criteria are: (1) availability of comparable alternative educational facilities; (2) general effectiveness of the school; and (3) whether the institution’s aid program appears to be consistent with, or appears to undermine, the 85/15 tuition and fee cost market validation mechanism.

Because VET TEC 2.0 differs from traditional GI Bill programs in important respects — including the provider approval process, performance-based payments, employment-outcome requirements, and the absence of an extended GI Bill operating history for many providers — VA will apply the 21.4201(h) criteria in a manner consistent with VET TEC 2.0 program characteristics:

• Availability of comparable alternative facilities. Given the limited number of approved VET TEC 2.0 training providers and the specialized nature of high technology training, this criterion will generally be considered satisfied for VET TEC 2.0 waiver requests unless VA identifies a comparable alternative.
• General effectiveness of the school. VA will not require evidence of one year of operating history under a GI Bill approval as it does in traditional waiver determinations. Instead, VA will consider available evidence of program effectiveness, including graduation rates, completion outcomes, employment placement data, and, where applicable, Preferred Provider performance under Part VII, Section A of the Training Provider Agreement.
• Aid-program consistency with the 85/15 market-validation mechanism. Where a provider does not offer institutional aid that reduces the cost paid by non-supported students, this criterion is generally satisfied. Where institutional aid is provided, VA will consider the structure of that aid in light of applicable Chapter 33 tuition-cap protections, which continue to limit the amount a provider may charge regardless of waiver status.

A waiver request is submitted to the Education Liaison Representative (ELR) of jurisdiction as part of the VET TEC 2.0 approval process, with final approval by the Director of Education Service. A waiver is not automatic and is granted only upon VA’s affirmative determination that the criteria above are satisfied.

Congressional Reporting

Waivers approved under 38 U.S.C. § 3699C(e)(2), including waivers granted to dual-approved programs satisfying both § 3699C(e) and § 3680A(d), are subject to applicable Congressional reporting requirements. VA will maintain records sufficient to support required reporting on VET TEC 2.0 waiver activity. ELRs and approving officials should be aware that approval of a VET TEC 2.0 waiver triggers a downstream reporting obligation that does not attach to traditional § 3680A(d) waivers. Further, VA has implemented administrative mechanisms to facilitate tracking and reporting of VET TEC 2.0 waivers.

Fewer Than 10 Supported Students Provision

The traditional 85/15 rule (38 U.S.C. § 3680A(d), 38 CFR 21.4201) provides that approved programs with fewer than 10 supported students enrolled are not subject to 85/15 provisions. VA considered whether this traditional provision should apply under 38 U.S.C. § 3699C(e). Although Congress incorporated enrollment-ratio requirements similar to those found in the traditional 85/15 framework, section 3699C(e) does not expressly incorporate the fewer-than-10 supported students provision contained in 38 U.S.C. § 3680A(d) and its implementing regulations. Accordingly, providers should not assume that this traditional provision extends programs with fewer than 10 supported students. Therefore, unless VA advises otherwise, providers remain responsible for complying with applicable VET TEC 2.0 enrollment-ratio requirements regardless of the number of supported students enrolled.

Example Scenario — Consistent with VA Guidance

A VET TEC 2.0 provider offers a software development program with eight supported students. The provider recognizes that section 3699C(e) does not expressly incorporate the traditional fewer-than-10 supported students provision and continues complying with applicable enrollment-ratio requirements.

Example Scenario — Inconsistent with VA Guidance

A VET TEC 2.0 provider enrolls seven supported students in a high technology program of education and concludes that the program is automatically relieved from applicable enrollment-ratio requirements because fewer than 10 supported students are enrolled.

Based upon that assumption, the provider stops maintaining enrollment information and no longer evaluates compliance with applicable enrollment-ratio requirements.

Distinguishing Traditional 35 Percent Exemption and VET TEC 2.0 Waivers

It is important to distinguish different forms of relief from the traditional 85/15 framework because these concepts serve different purposes and should not be used interchangeably. As stated earlier, a 35 percent exemption is a specific statutory provision under the traditional GI Bill framework which Congress did not provide for under VET TEC 2.0. A waiver operates differently as it requires a provider to submit a request and supporting information for VA review. Because approval is not automatic, VA will evaluate the request and determine whether relief is appropriate based upon applicable criteria and available information. Again, for VET TEC 2.0, Preferred Provider designation or other positive outcomes may support a waiver request, but they do not replace the requirement to request and receive waiver approval.

In summary:

35% Exemption:

• Congress established the 35 percent exemption through statute and implementing regulations.
• The provider determines whether it meets the applicable eligibility criteria and maintains supporting documentation.
• The provider is required to maintain documentation supporting its eligibility.
• VA may review, verify, or challenge the provider’s determination.
• The exemption applies when the provider satisfies the applicable statute and regulatory criteria.
• Congress did not establish a corresponding 35 percent exemption under 38 U.S.C. 3699C(e) for VET TEC 2.0 programs.

Waiver:

• VET TEC 2.0 provider, including a Preferred Provider, does not automatically qualify for relief.
• The provider requests relief from applicable requirements.
• Preferred Provider status may support a waiver request but does not independently establish waiver eligibility.
• VA reviews the request and supporting information.
• VA exercises discretion to approve or deny the request.
• Relief exists only if VA grants the waiver.

Questions

If you have any questions, please direct them to the Policy & Regulations Team at POLPROC.VBACO@va.gov.

V/R
Policy & Regulations Team

July 10, 2026

Issue

On January 2, 2025, the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act, Public Law 118-210, was enacted into law. Section 212 of this law established the Department of Veterans Affairs (VA) high technology program, known as VET TEC 2.0, by adding 38 U.S.C. § 3699C to statute. Section 3699C(c)(2)(C) identifies the circumstances under which a provider may receive the remaining 50 percent of tuition and fees for a covered individual. Specifically, that provision is met if the individual:

• (i) obtains successful employment for a period of 180 days in the field of study of the program, beginning not later than 180 days following graduation;
• (ii) is employed by the provider for a period of one year; or
• (iii) enrolls in a program of education to continue education in such field of study.

This advisory addresses the provider payment pathways in 38 U.S.C. § 3699C(c)(2)(C). Note that it does not address eligibility for a second high technology program of education under 38 U.S.C. § 3699C(b)(2)(B), except where that provision is referenced for interpretive context.

Purpose

This advisory serves as a companion advisory to VA's prior policy advisory addressing employment under VET TEC 2.0. While the prior advisory focused on clarification of employment, including self-employment, under 38 U.S.C. § 3699C(c)(2)(C)(i), this advisory addresses how a provider demonstrates it has met the final-payment requirement in 38 U.S.C. § 3699C(c)(2)(C). Specifically, this advisory addresses the three statutory pathways for final payment—successful employment, employment by the provider, and enrollment in a program of education to continue education in such field of study—and explains how VA will interpret the phrase “field of study” for purposes of those pathways. Because 38 U.S.C. § 3699C(c)(4) authorizes the Secretary to prescribe provider approval criteria and 38 U.S.C. § 3699C(g)(1) directs the Secretary to develop practices to collect information about covered individuals and providers, this advisory also explains VA's documentation, certification, and record retention requirements for these pathways.

Discussion/Answer

38 U.S.C. § 3699C(c)(2)(C) provides three separate statutory pathways by which a provider can meet the final-payment requirement for a covered individual. Because the statute does not detail the evidentiary standards for these pathways or the meaning of “field of study,” VA is providing this guidance through this advisory.

Pathway 1: Successful employment for 180 days in the field of study, including self-employment

A provider meets 38 U.S.C. § 3699C(c)(2)(C)(i) when the covered individual obtains successful employment in the field of study (see Meaning of “field of study” in Related Interpretive and Administrative Guidance section below) of the completed VET TEC 2.0 program, the employment begins not later than 180 days following graduation, and the employment continues for a period of 180 days. Successful employment under this pathway may include traditional employment, contract work, or self-employment, provided that the work is in the field of study of the completed VET TEC 2.0 program, and the statutory timing requirement is met.

Additionally, VET TEC 2.0 may support a Veteran's entry into a high-technology field even where the initial employment outcome is lateral in pay or grade. Under 38 U.S.C. § 3699C(c)(2)(C)(i), the relevant statutory question is whether the covered individual obtains successful employment for 180 days in the field of study of the completed program within 180 days following graduation. The statute does not require that the new position pays more than the individual's prior employment. However, where the outcome represented is a promotion within the individual's current employment relationship, VA will continue to apply the current policy standard requiring evidence of both positional and monetary promotion.

Sufficient documentation under this pathway includes: onboarding documentation such as Form I-9 (Employment Eligibility Verification), pay stub, an offer letter, employment contract, pay records, contractor agreement, recurring invoices, proof of payment over time, client attestations, business records, tax records, or similar official records sufficient to establish the start date, the nature of the work performed or business activity conducted, and continuity of the work or business activity for the required period.

As the statute requires that employment commence within 180 days of graduation, extenuating circumstances that may delay or prevent the individual's ability to secure employment within that timeframe will not be considered other than return to active duty. However, circumstances deemed truly extraordinary may be elevated to the Director of Education Service for review.

Further, training providers must not require, pressure, or direct a covered individual toward self-employment or the creation of a business as the sole or primary employment outcome for purposes of 38 U.S.C. § 3699C(c)(2)(C)(i). Providers may discuss self-employment as one possible option, but must maintain records sufficient to demonstrate that self-employment, where pursued, was the individual's choice and not the result of provider's direction or pressure. Such records may include career counseling notes, job placement or referral records, written communications with the individual, workshop or advising materials, student acknowledgments, and similar records reflecting the employment options presented to the individual. Providers must make such records available to VA upon request or during oversight, review, or compliance surveys.

If self-employed, the self-employment activity must begin not later than 180 days following graduation and must continue for a period of 180 days before the provider may qualify for the remaining 50 percent payment under 38 U.S.C. § 3699C(c)(2)(C)(i). Documentation must be sufficient to establish both the start date of the self-employment activity and ongoing business activity throughout that 180-day period. Formation of a business entity alone is not sufficient to establish successful employment for purposes of this pathway as the statute requires successful employment for a period of 180 days, not merely the creation of a business or intent to engage in business activity.

For self-employment or contract work, where hours worked may not be consistently maintained, VA may use full-time equivalent income as a proxy for full-time work. “Full-time equivalent income” means documented earned income, annualized over the relevant period, that is reasonably comparable to compensation from full-time work in the same or a closely related occupation in the applicable labor market. This evidentiary proxy is used only when hours are not readily measurable.

Example: A covered individual who completes a VET TEC 2.0 cybersecurity program and then accepts an entry-level cybersecurity analyst position at about the same pay or grade as the individual's prior non-technology employment may satisfy 38 U.S.C. § 3699C(c)(2)(C)(i), provided that the new employment is in the field of study of the completed VET TEC 2.0 program and the 180-day timing and duration requirements are met.

Example: A covered individual who completes a VET TEC 2.0 web development program, begins providing paid web-development services within 180 days following graduation, and maintains documented business activity in that field for 180 days may also satisfy this pathway. By contrast, a covered individual who remains in the same non-technology position, with no meaningful change in duties into work in the field of study of the completed program, or one who forms a business entity but does not sustain actual compensated activity in the field, would not satisfy this pathway.

Example: A covered individual who completes a VET TEC 2.0 cybersecurity program and then accepts an entry-level cybersecurity analyst position at approximately the same pay or grade as the individual's prior non-technology employment may satisfy 38 U.S.C. § 3699C(c)(2)(C)(i), provided that the new employment is in the field of study of the completed VET TEC 2.0 program and the 180-day timing and duration requirements are met. By contrast, a covered individual who completes a VET TEC 2.0 program but remains in the same non-technology position, with no meaningful change in duties into work in the field of study of the completed program, would not satisfy this pathway merely because the individual completed the training.

Example: A covered individual completes a VET TEC 2.0 web development program and, within 180 days following graduation, begins performing paid contract web-development work. The individual does not maintain reliable time records, but submits contracts, invoices, and payment records showing $3,000 in documented earned income for one month of sustained work in the field. If comparable full-time entry-level web-development work would generally yield about $36,000 annually, VA may annualize the individual's documented monthly earnings to determine whether the income is reasonably comparable to full-time work in the same or a closely related occupation. By contrast, if the individual submits only one or two isolated invoices totaling $500 for the month, with no evidence of sustained compensated activity, VA is unlikely to find full-time equivalent income or successful employment under this pathway.

Pathway 2: Employment by the provider for one year

A provider meets 38 U.S.C. § 3699C(c)(2)(C)(ii) when the covered individual is employed by the provider for a period of one year. Documentation may include official onboarding documentation such as Form I-9 (Employment Eligibility Verification), pay stub, payroll records, a written employment agreement, compensation records, or comparable official records sufficient to establish that the individual was employed by the provider for the required period.

For the purposes of this pathway, employment by the provider must be in, or meaningfully related to, the field of study of the completed VET TEC 2.0 program. Employment by the provider in an unrelated field would not satisfy this pathway.

Extenuating circumstances preventing the covered individual from maintaining employment for a year will ordinarily not be considered, other than return to active duty. However, circumstances deemed truly extraordinary may be elevated to the Director of Education Service for review.

Example: A covered individual who completes a VET TEC 2.0 cloud computing program and is then hired by the training provider as a cloud support specialist, lab assistant, or teaching assistant in that field for a period of one year may satisfy 38 U.S.C. § 3699C(c)(2)(C)(ii), provided that the provider can substantiate the employment relationship and the one-year duration. By contrast, a covered individual who performs work unrelated to cloud computing, or only short-term project work for the provider, or whose relationship with the provider does not continue for one year, would not satisfy this pathway.

Pathway 3: Enrollment in a program of education to continue education in such field of study

A provider meets 38 U.S.C. § 3699C(c)(2)(C)(iii) when the covered individual enrolls in a program of education to continue education in the field of study of the completed VET TEC 2.0 program. Because the statute uses the phrase “such field of study,” VA will evaluate whether the subsequent program of education constitutes continued education in that field based on the educational content pursued, not only the title of the program, credential, or institution. Below are the criteria to meet the requirements of 38 U.S.C. § 3699C(c)(2)(C)(iii):

Timing

Paragraph (c)(2)(C)(iii) [enrollment in continued education] has no time restriction. This is unlike paragraph (c)(2)(C)(i) which has a time restriction requiring successful employment within 180 days of graduation. VA will monitor provider use of this pathway and may issue additional guidance to ensure that this pathway is used consistently with the program's purpose.

Completion

Paragraph (c)(2)(C)(iii) is triggered by enrollment in, not by completion of, the subsequent program of education. Unlike 38 U.S.C. § 3699C(c)(2)(B), which expressly provides for payment upon graduation from the completed VET TEC 2.0 program, paragraph (iii) does not expressly require completion of the subsequent program or impose a minimum duration of enrollment before the remaining 50 percent payment may be made.

Provider certification

For purposes of this pathway, the provider may certify to VA that it has verified the covered individual's enrollment in a subsequent program of education that continues education in the field of study of the completed VET TEC 2.0 program. This approach is consistent with both 38 U.S.C. § 3699C(c)(2), under which the remaining 50 percent payment is payable to the provider, and 38 U.S.C. § 3699C(c)(4) and (g)(1), which authorize the Secretary to prescribe provider criteria and develop information-collection practices for the program.

GI Bill usage

Paragraph (c)(2)(C)(iii) does not expressly require that the subsequent program be payable under the GI Bill or that the covered individual use educational assistance under Chapter 33 for that enrollment. Congress imposed an express Chapter 33-use requirement elsewhere in 38 U.S.C. § 3699C, for a second high technology program of education under § 3699C(b)(2)(B)(ii) but did not include similar language in § 3699C(c)(2)(C)(iii). Accordingly, for purposes of this advisory, VA will not require the provider to establish that the subsequent enrollment is itself GI Bill payable or pursued using chapter 33 benefits, provided that the provider can substantiate the enrollment and the field-of-study connection.

Documentation

The provider must maintain documentation sufficient to support that certification. Such documentation may include, but is not limited to, a letter-of-registration on school letterhead, enrollment summary, class schedule, or transcript. Provided documentation should include the name of the subsequent program of education, the name of the institution or provider, the enrollment dates (start and end), and information showing how the program continues education in the field of study of the completed VET TEC 2.0 program. The provider must make such documentation available to VA upon request. VA may request additional documentation where necessary to determine whether the requirements of 38 U.S.C. § 3699C(c)(2)(C)(iii) have been met.

For the purpose of this pathway, the subsequent program of education does not qualify merely because it is another program of education. Rather, the training provider must substantiate that the covered individual enrolled in a program of education that continues the education in the field of study of the completed VET TEC 2.0 program. VA does not separately approve or disapprove the subsequent institution or program. Rather, VA's review under this pathway is focused on whether the training provider has substantiated the enrollment and the field of study connection.

Withdrawal from Subsequent Program of Education

38 U.S.C. § 3699C(c)(2)(C)(iii) does not expressly require the completion of the subsequent program of education, a minimum duration of enrollment, or a separate duty on the covered individual to notify VA if the individual later withdraws from that program. For purposes of this advisory, provider payment under this pathway is based on verified enrollment, subject to VA's authority to request evidence sufficient to substantiate the enrollment and the field-of-study connection.

Program Monitoring

Training providers must not require, pressure, or direct a covered individual toward the continued education outcome solely for purposes of satisfying 38 U.S.C. § 3699C(c)(2)(C). Providers may discuss continued education as one possible option but must maintain records sufficient to demonstrate that continued education, where pursued, was the individual's choice and not the result of provider's direction or pressure. Such records may include career counseling notes, written communications with the individual, workshop or advising materials, student acknowledgments, and similar records reflecting possible employment options presented to the individual versus continued education options. Providers must make such records available to VA upon request.

VA's oversight of the continuing education pathway is to evaluate whether the training provider has documented and substantiated the covered individual enrolled in a later program, and that the later program continues education in the same field of study of the completed VET TEC 2.0 program. VA is not using this pathway to establish a separate approval process for the subsequent institution or program.

Example: A covered individual who completes a VET TEC 2.0 data analytics program and then enrolls in a subsequent program of education in data science, business analytics, or a more advanced analytics certificate may satisfy 38 U.S.C. § 3699C(c)(2)(C)(iii), provided that the provider can substantiate the enrollment and the field-of-study connection. By contrast, a covered individual who completes a VET TEC 2.0 software development program and then enrolls in an unrelated program in culinary arts, real estate, or another unrelated “field of study” would not satisfy this pathway.

Related Interpretive and Administrative Guidance

Meaning of “field of study”

For purposes of 38 U.S.C. § 3699C(c)(2)(C), “field of study” means the occupational, technical, or academic area reflected by the content of the completed VET TEC 2.0 program. Whether employment, provider employment, self-employment, or further education is in the field of study will be determined based on the substance of the work performed, business activity conducted, or educational content pursued, and not solely on the title of the job, business, credential, or program.

Accordingly, a job, business activity, or subsequent program of education may be considered to be in the field of study where it directly uses, advances, or is grounded in the knowledge, skills, and abilities taught in the completed VET TEC 2.0 program. Conversely, a job, business activity, or subsequent program of education will not be considered to be in the field of study where the relationship to the completed VET TEC 2.0 program is merely incidental, tangential, or unrelated. This is VA's interpretive standard for applying the statutory phrase “field of study” in 38 U.S.C. § 3699C(c)(2)(C).

Example: A covered individual who completes a software development program and then works as a junior developer, performs paid contract coding work, or enrolls in a more advanced software engineering program would generally be considered to be in the field of study. Conversely, a covered individual who completes a software development program and then opens an unrelated retail business, or enrolls in an unrelated program of education, would generally not be considered to be in the field of study merely because the individual occasionally uses general computer skills.

General evidentiary standard

In all cases, providers must maintain documentation or certification sufficient for VA to determine that the applicable statutory pathway in 38 U.S.C. § 3699C(c)(2)(C) has been met including documentation obtained from the covered individual where appropriate. The provider must make such documentation available to VA upon request. Where VA permits provider certification in the first instance, the provider must maintain the underlying records supporting that certification and make them available to VA upon request. VA may request additional documentation where the evidence or certification provided is insufficient to make a determination. Unless otherwise expressly required by statute or VA policy, the covered individual is not separately required by this advisory to submit documentation directly to VA for purposes of provider payment under 38 U.S.C. § 3699C(c)(2)(C).

Effective Period

This policy is effective July 10, 2026, and applies to VET TEC 2.0 training providers and covered individuals, regardless of when the individual began the program.

Questions

If you have any questions, please direct them to the Policy & Regulations Team at POLPROC.VBACO@va.gov.

V/R
Policy & Regulations Team