conditions as other veterans pursuing similar training under these programs.

(Authority: 38 U.S.C. 3015, 3022, 3108(f))

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4283, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992]

§ 21.266 Payment of subsistence allowance under special conditions.

(a) Hospitalized veteran or serviceperson. A veteran pursuing a VA rehabilitation program under Chapter 31 while hospitalized in a VA medical center or in any other hospital at VA expense may receive the subsistence allowance otherwise payable. The subsistence allowance will be paid at the rates specified in § 21.260, except:

(1) The amount of subsistence allowance or the allowance provided under §21.264 that may be paid to a veteran pursuing a rehabilitation program for any month for which the veteran receives compensation at the rate prescribed in §3.401(h) of this title, as the result of hospital treatment (not including post-hospital convalescence) or observation at the expense of VA may not exceed, when added to any compensation to which such veteran is entitled for the month, an amount equal to the greater of:

(i) The sum of: (A) the amount of monthly subsistence of the allowance payable under $21.264, and (B) the amount of monthly disability compensation that would be paid to the veteran if he or she was not receiving compensation at the temporary 100 percent rate as the result of such hospital treatment or observation, or

(ii) The amount of monthly disability compensation payable under §3.401(h) of this title.

(2) A veteran pursuing a rehabilitation program while in post hospital convalescence (§3.401(h)) will be paid the regular rate of subsistence allowance.

(3) A serviceperson pursuing a rehabilitation program under Chapter 31 will not receive a subsistence allowance if he or she is hospitalized in a medical facility under the jurisdiction of the Secretary pending final discharge from the armed forces.

(Authority: 38 U.S.C. 3108(h))

(b) Specialized rehabilitation facility (1) A veteran in a specialized rehabi tation facility will be paid the regul rate of subsistence allowance at the i stitutional rate. VA may pay the co of room and board in lieu of subsi ence allowance when:

(i) The specialized rehabilitation : cility requires that similar circumstanced persons pay the sa charges for room and board, and

(ii) The case manager finds and t veteran agrees that it is to the v eran's advantage for VA to pay the co of room and board.

(2) Even though VA pays the cost room and board, the veteran will paid that portion of subsistence allo ance otherwise payable for dependen

(Authority: 38 U.S.C. 3108(e))

(c) Non-pay work experience or traini in a Federal agency. A veteran in an job program or being provided work perience in a Federal agency at no nominal pay shall receive subsister allowance at the institutional rate.

(Authority: 38 U.S.C. 3108(c))

(d) Extended evaluation and in pendent living program. A veteran in program of extended evaluation independent living service progra shall be paid subsistence allowance full or part-time participation at t rate specified for institutional traini in § 21.260. If an extended evaluation independent living program is pursu on a less than a quarter-time basis. measured under § 21.310(d), VA will or pay established charges for servic furnished.

(Authority: 38 U.S.C. 3108(h))

(e) On-job training. A veteran in on-job training program will be pa subsistence allowance at the rate p vided under § 21.260(b), except that su sistence allowance may not exceed t difference between the monthly trai ing wage, exclusive of overtime, a the entrance journeyman wage for t veteran's objective.

(Authority: 38 U.S.C. 3108(c))

$21.268 Employment adjustment allowance.

(a) General. A veteran who completes a period of rehabilitation and reaches the point of employability will be paid an employment adjustment allowance for a period of two months at the fulltime subsistence allowance rate for the type of program the veteran was last pursuing. (See § 21.190(d))

Authority: 38 U.S.C. 3108(a))

(b) Reelection of subsistence allowance. A veteran who has elected payment at the Chapter 30 educational assistance allowance rate may be paid an employment adjustment allowance only if he or she reelects subsistence allowance to become effective no later than the day following completion of the period of rehabilitation to the point of employability.

Authority: 38 U.S.C. 3108(f))

(c) Special programs. An employment adjustment allowance will be paid at the institutional rate of subsistence allowance for veterans in any of the following programs:

(1) On-job training at no or nominal pay in a Federal agency;

(2) Training in the home program; (3) Independent instructor program; (4) Cooperative program; or (5) Self-employment program. (d) Combination program. A veteran who has pursued a combination program will be paid an employment adjustment allowance at the full-time rate for the type of training the veteran was actually pursuing at the completion of the period of rehabilitation to the point of employability.

(e) Subsequent payments of employment adjustment allowance. If a veteran has ever received an employment adjustment allowance following rehabilitation to the point of employability, he or she may, nevertheless, receive it again when completing an additional rehabilitation program to the point of employability if:

(1) The prior determination of rehabilitation to the point of employability is set aside; and

(2) The veteran is reinducted into a new vocational rehabilitation program as provided in § 21.282.

(f) Employment adjustment allowance not charged against entitlement. An employment adjustment allowance will not be charged against the veteran's basic entitlement.

(Authority: 38 U.S.C. 3108(a))

[49 FR 40814, Oct. 18, 1984, as amended at 54 FR 4284, Jan. 30, 1989; 57 FR 57108, Dec. 3, 1992]

$21.270 Payment of subsistence allowance during leave and between periods of instruction.

(a) Payment during leave. VA will pay an eligible veteran a subsistence allowance during any period of approved leave including a veteran:

(1) Receiving medical or rehabilitation services on an outpatient basis at a VA medical center, and who provides his or her own room and board;

(2) Receiving service department retirement or retained pay while not on active duty;

(3) Hospitalized at a VA medical center while on approved leave. If the veteran becomes eligible for payment of disability compensation at the temporary 100 percent rate, under §3.401(h) of this title due to hospitalization, payment will be made under provisions of § 21.266(a).

(Authority: 38 U.S.C. 3110)

(b) Payment for intervals between periods of instruction. Subsistence allowance will paid to a veteran during the following periods unless the case manager and the veteran jointly determine that such payment is not in the veteran's interest:

(1) A period between consecutive terms within an enrollment period that does not exceed 1 full calendar month; (2) A period between consecutive school terms, when the veteran, as part of his or her approved program of vocational rehabilitation, transfers from one educational institution to another for the purpose of enrolling in, and pursuing, the same objective at the second institution, provided the period does not exceed 30 days;

(3) A period which does not exceed 30 days, between a semester, term, or