38 U.S.C. § 3035 — Allocation of administration and of program costs

(a) Unless this chapter specifically provides otherwise, the Department^* of Veterans Affairs administers its educational-assistance programs.
(b)(1) Unless paragraphs (2) through (4) provide otherwise, payments for entitlement earned under subchapter II come from VA readjustment-benefit funds and transfers from the Post-Vietnam Era^* Veterans Education Account under section 3232(b)(2)(B). (2) The part of a subchapter II payment established under section 3015(d) that exceeds the rate in section 3015(a) or (b) comes from the Department of Defense Education Benefits Fund or, as appropriate, Homeland Security appropriations. (3) Payments for entitlements under section 3018A or 3018B come (A) generally from the Defense Education Benefits Fund; (B) for the individuals described in the cited provisions, from VA readjustment-benefit funds; and (C) for increases under section 3015(f), from the Post-Vietnam Era Veterans Education Account. (4) Payments caused by increased use after transfers of basic-assistance entitlement under section 3020 come from the Defense Education Benefits Fund or, as appropriate, Transportation Department appropriations.
(c) Payments for subchapter III educational assistance come from the Defense Education Benefits Fund or, as appropriate, Homeland Security appropriations.
(d) Amounts payable from the Defense Education Benefits Fund must be transferred to VA as needed under agreements among the Secretary^*, Defense Secretary, and Treasury Secretary under title 10, section 2006. Amounts payable from Homeland Security appropriations must also be transferred to VA as needed. The Secretary and Homeland Security Secretary must agree on how those transfers will be made.
(e) Tutorial-assistance payments under section 3019 are funded as follows: (1) the first $600 paid to a person comes from VA readjustment-benefit funds; and (2) amounts above $600 come from VA funds, the Defense Education Benefits Fund, and Homeland Security appropriations in the same proportion in which the Fund and those funds are used to pay that person’s educational-assistance allowance under this chapter.