(a)

1. (1) The Department of Education may indemnify, in whole or in part, an employee for any verdict, judgment, or other monetary award rendered against the employee if—

   1. (i) The conduct giving rise to the verdict, judgment, or award occurred within the scope of his or her employment with the Department; and
   2. (ii) The indemnification is in the interest of the United States, as determined by the Secretary.
2. (2) The regulations in this part apply to an action pending against an ED employee as of March 30, 1989, as well as to any action commenced after that date.

3. (3) As used in this part, the term employee includes—

   1. (i) A present or former officer or employee of the Department or of an advisory committee to the Department, including a special Government employee;
   2. (ii) An employee of another Federal agency on detail to the Department; or
   3. (iii) A student volunteer under 5 U.S.C. 3111.
4. (4) As used in this part the term Secretary means the Secretary of the Department of Education or an official or employee of the Department acting for the Secretary under a delegation of authority.

(b)

1. (1) The Department may pay, in whole or in part, to settle or compromise a personal damage claim against an employee if—

   1. (i) The alleged conduct giving rise to the personal damage claim occurred within the scope of employment; and
   2. (ii) The settlement or compromise is in the interest of the United States, as determined by the Secretary.
2. (2) Payment under paragraph (b)(1) of this section may include reimbursement, in whole or in part, of an employee for prior payment made by the employee under a settlement or compromise that meets the requirements of this section.

(d) Any payment under this part, either to indemnify a Department of Education employee or to settle a personal damage claim, is contingent upon the availability of appropriated funds.

(Authority: 20 U.S.C. 3411, 3461, 3471, and 3474)