10 U.S.C. § 2603 — Acceptance of fellowships, scholarships, or grants

Notwithstanding any other provision of law, a fellowship, scholarship, or grant may, under regulations to be prescribed by the President (or an individual designated by the President), be made by a corporation, fund, foundation, or educational institution that is organized and operated primarily for scientific, literary, or educational purposes to any member of the armed forces^*, and the benefits thereof may be accepted by the member—

However, the benefits of such a fellowship, scholarship, or grant may be accepted by the member in addition to the member’s pay^* and allowances only to the extent that those benefits would be conferred upon the member if the education or training contemplated by that fellowship, scholarship, or grant were provided at the expense of the United States. In addition, if such a benefit, in cash or in kind, is for travel, subsistence, or other expenses, an appropriate reduction shall be made from any payment that is made for the same purpose to the member by the United States incident to the member’s acceptance of the fellowship, scholarship, or grant.

Each member of the armed forces who accepts a fellowship, scholarship, or grant in accordance with subsection (a) shall, before he is permitted to undertake the education or training contemplated by that fellowship, scholarship, or grant, agree in writing that, after he completes the education or training, he will serve on active duty^* for a period determined by the Secretary concerned^*, which may not be less than twice the length of the period of the education or training. Notwithstanding section 2004(c) of this title, the service obligation required under this subsection may run concurrently with any service obligations incurred under chapter 101 of this title in accordance with regulations established by the Secretary concerned.