10 U.S.C. § 2774

(a) A claim of the United States against a person arising out of an erroneous payment of any pay or allowances made before, on, or after October 2, 1972 , or arising out of an erroneous payment of travel and transportation allowances, to or on behalf of a member or former member of the uniformed services, the collection of which would be against equity and good conscience and not in the best interest of the United States, may be waived in whole or in part by— (1) the Director of the Office of Management and Budget; or (2) the Secretary concerned, as defined in section 101(5) of title 37 , when— (A) the claim is in an amount aggregating not more than $10,000; and (B) the waiver is made in accordance with standards which the Director of the Office of Management and Budget shall prescribe. (b) The Director of the Office of Management and Budget or the Secretary concerned, as the case may be, may not exercise his authority under this section to waive any claim— (1) if, in his opinion, there exists, in connection with the claim, an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the member or any other person having an interest in obtaining a waiver of the claim; or (2) if application for waiver is received in his office after the expiration of five years immediately following the date on which the erroneous payment was discovered. (c) A person who has repaid to the United States all or part of the amount of a claim, with respect to which a waiver is granted under this section, is entitled, to the extent of the waiver, to refund, by the department concerned at the time of the erroneous payment, of the amount repaid to the United States, if he applies to that department for that refund within two years following the effective date of the waiver. The Secretary concerned shall pay from current applicable appropriations that refund in accordance with this section. (d) In the audit and settlement of accounts of any accountable officer or official, full credit shall be given for any amounts with respect to which collection by the United States is waived under this section. (e) An erroneous payment, the collection of which is waived under this section, is considered a valid payment for all purposes. (f) This section does not affect any authority under any other law to litigate, settle, compromise, or waive any claim of the United States.