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Federal statute · 38 USC § 503

38 USC 503: Equitable relief for federal administrative error

§ 503. Administrative error; equitable relief

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Claim Raven explanation

What this means

This section permits the Secretary of Veterans Affairs to grant equitable relief when a federal administrative error prevented benefits or when someone suffered loss after reasonably relying on an erroneous VA eligibility determination. The authority is discretionary.

Subsection (a) addresses benefits not provided because of federal administrative error. Subsection (b) addresses loss caused by reliance on an erroneous VA determination when the person did not know it was wrong. In both, the Secretary may provide the relief the Secretary considers equitable. The word 'may' matters: the section does not create an automatic payment whenever VA makes a mistake.

How this helps your claim

Equitable relief is different from proving ordinary legal entitlement to a benefit. It concerns the Secretary's power to address specified government error or reliance loss, including possible payment, even when the usual entitlement path does not provide the requested result.

What to check in your records

Separate the alleged government error, the benefit or determination involved, and the concrete loss it caused.

  • Preserve the VA statement, decision, or action claimed to be erroneous.
  • Document what was not provided or what action was taken in reliance.
  • Show the resulting financial or other loss with dates and supporting records.

Describe the error and harm as two separate facts

Identify who communicated or made the determination, what it said, when it occurred, and why it was wrong. Attach the original record when possible. A general statement that VA mishandled the matter makes it difficult to evaluate the statutory category.

Then show causation. Explain which benefit was withheld or what the person did in reasonable reliance, and document the loss. Keep any ordinary appeal or correction path distinct because requesting equitable relief does not itself establish entitlement under the usual benefit rules.

Does every VA mistake require an equitable-relief payment?

No. This is discretionary authority held by the Secretary. The record should identify the qualifying administrative error or reasonable reliance, the resulting loss, and the relief requested. Other review or appeal provisions may address a separate entitlement error.

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Official statutory text

38 USC § 503

OLRC release: pl-119-108. Layout and spacing are adapted for reading. The statutory text is shown here; publisher source credits and editorial notes remain in the linked official release.

§ 503. Administrative error; equitable relief

(a) If the Secretary determines that benefits administered by the Department have not been provided by reason of administrative error on the part of the Federal Government or any of its employees, the Secretary may provide such relief on account of such error as the Secretary determines equitable, including the payment of moneys to any person whom the Secretary determines is equitably entitled to such moneys.

(b) If the Secretary determines that a veteran, surviving spouse, child of a veteran, or other person has suffered loss as a consequence of reliance upon a determination by the Department of eligibility or entitlement to benefits, without knowledge that it was erroneously made, the Secretary may provide such relief on account of such error as the Secretary determines is equitable, including the payment of moneys to any person whom the Secretary determines is equitably entitled to such moneys.

(c) Not later than April 1 of each year, the Secretary shall submit to Congress a report containing a statement as to the disposition of each case recommended to the Secretary for equitable relief under this section during the preceding calendar year. No report shall be required under this subsection after December 31, 2026.

Related references

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