§ 21.198 “Discontinued” status. ( a ) *Purpose.* The purpose of *discontinued* status is to identify situations in which termination of all services and benefits received under Chapter 31 is necessary.
( b ) *Placement in “discontinued”.* VA will discontinue the veteran's case and assign the case to *discontinued* status following assignment to *interrupted* status as provided in § 21.197 for reasons including but not limited to the following: ( 1 ) *Veteran declines to initiate or continue rehabilitation process.* If a veteran does not initiate or continue the rehabilitation process and does not furnish an acceptable reason for his or her failure to do so following assignment to *interrupted* status, the veteran's case will be discontinued and assigned to *discontinued* status. This includes: ( i ) A case in *applicant* status;
( ii ) A case in *evaluation and planning* status;
( iii ) A case in *extended evaluation* status;
( iv ) A case in *rehabilitation to the point of employability* status;
( v ) A case in *independent living program* status;
( vi ) A case in *employment services* status; or
( vii ) A case in *interrupted* status;
( 2 ) *Unsatisfactory conduct and cooperation.* When a veteran's conduct or cooperation becomes unsatisfactory, services and assistance may be discontinued and assigned to *discontinued* status as determined under provisions of §§ 21.362 and 21.364.
( 3 ) *Eligibility and entitlement.* Unless the veteran desires employment assistance, the veteran's case will be discontinued and assigned to *discontinued* status when: ( i ) The veteran reaches the basic twelve-year termination date, and there is no basis for extension; or
( ii ) The veteran has used 48 months of entitlement under one or more VA programs, and there is no basis for extension of entitlement.
( 4 ) *Medical and related problems.* A veteran's case will be discontinued and assigned to *discontinued* status when: ( i ) The veteran will be unable to participate in a rehabilitation program because of a serious physical or emotional problem for an extended period; and
( ii ) VA medical staff are unable to estimate an approximate date by which the veteran will be able to begin or return to the program.
( 5 ) *Withdrawal.* Veteran voluntarily withdraws from the program.
( 6 ) *Failure to progress.* The veteran's case will be discontinued and assigned to *discontinued* status if his or her failure to progress in a program is due to: ( i ) Continuing lack of application by the veteran unrelated to any personal or other problems; or
( ii ) Inability of the veteran to benefit from rehabilitation services despite the best efforts of VA and the veteran. (Authority: 38 U.S.C. 3108, 3111)
( 7 ) *Special review of proposed discontinuance action.* The Veteran Readiness and Employment (VR&E) Officer shall review each case in which discontinuance is being considered for a veteran with a service-connected disability rated 50 percent or more disabling. The VR&E Officer may utilize existing resources to assist in the review, including referral to the Vocational Rehabilitation Panel (VRP). (Authority: 38 U.S.C. 3104(a)(1))
( c ) *Termination of “discontinued” status.* Except as noted in paragraph (c)(3) of this section assignment of the veteran's case to the same status from which the veteran was discontinued or to a different one requires that VA first find: ( 1 ) The reason for the discontinuance has been removed; and
( 2 ) VA has redetermined his or her eligibility and entitlement under Chapter 31.
( 3 ) In addition to the criteria described in paragraphs (c) (1) and (2) of this section a veteran placed into *discontinued* status as a result of a finding of unsatisfactory conduct or cooperation under §§ 21.362 and 21.364 must also meet the requirements for reentrance into a rehabilitation program found in § 21.364. (Authority: 38 U.S.C. 3111)
( d ) *Follow-up of a cases placed in “discontinued” status.* VA shall establish appropriate procedures to follow up on cases which have been placed in *discontinued* status, except in those cases reassigned from *applicant* status. The purpose of such followup is to determine if: ( 1 ) The reasons for discontinuance may have been removed, and reconsideration of eligibility and entitlement is possible; or
( 2 ) The veteran is employed, and criteria for assignment to *rehabilitated* status are met. (Authority: 38 U.S.C. 3107)


Cross Reference:
See § 21.324 Reduction or termination dates of subsistence allowance. [49 FR 40814, Oct. 18, 1984, as amended at 52 FR 2518, Jan. 23, 1987; 53 FR 32620, Aug. 26, 1988; 87 FR 8743, Feb. 16, 2022]