VA has reported ongoing delays in processing Chapter 35 (Dependents’ Educational Assistance) payments due to the system transition from the BDN to the Benefits Manager system earlier this year. This pre-shutdown issue was worsened by the government shutdown, which limited overtime authorization for claims processors and restricted VA’s ability to communicate with schools and students.

VA has since recalled 50 additional staff from furlough to help address the backlog, which currently includes about 150,000 pending claims affecting roughly 60,000 students. The average processing time is around 40 days. Attendance verification is not being required at this time to help speed up claim approval. VA anticipates clearing the current backlog by late November or early December.

Under 38 USC 3679(e), schools may not penalize students for delayed VA payments for up to 90 days if the student provides a Certificate of Eligibility and intent to use benefits for the term. Though this has traditionally not been enforced for Chapter 35, schools should be reminded of this requirement.

Students or families experiencing financial hardship are encouraged to contact their Congressional representatives or seek assistance through organizations such as the Tragedy Assistance Program for Survivors (TAPS). Additionally, the VA has provided a form to report missing GI Bill payments during the shutdown.

Thank you for sharing this information with students, schools, and partners who may be affected by these ongoing delays.