You want to bring veterans in through a fellowship. Good call. A fellowship lets a service member work with your team before anyone commits to a full-time hire. It is a low-risk way to try before you buy. But then finance asks the hard question. What does it cost?

Most companies do not have a clean answer. They guess a stipend number. They forget the manager time. Then the budget breaks halfway through the program. That is how a good idea gets killed after one round.

This guide gives you the real budget for a veteran fellowship program. We break down every line item. We show which costs the government may cover for you. And we show you how to keep the number small enough that your CFO says yes. You do not need a big-company program to pull this off. Midsize teams run lean fellowships all the time.

What is a veteran fellowship program in budget terms?

A fellowship is a fixed block of real work. It usually runs 8 to 12 weeks. A transitioning service member or veteran joins your team, does a real job, and both sides test the fit. The goal is a full-time offer at the end.

For budgeting, only one thing matters up front. Who pays the fellow?

There are two shapes, and they cost very different amounts:

• Active-duty fellowship: The person is still in uniform. They join through the Department of Defense SkillBridge program. DoD keeps paying their salary and benefits. You pay no wage.
• Post-separation fellowship: The person is already out. You pay a stipend or an hourly wage for the fellowship term.

Pick the shape first. The rest of your budget flows from that choice.

What does a veteran fellowship actually cost?

The wage is the part people see. It is rarely the biggest cost. The hidden costs are staff time and setup. Here is where the money really goes.

Notice what is not on that list. There is no giant platform fee. There is no six-figure program cost. A midsize fellowship for one or two people is mostly staff hours and a laptop.

How do you build the fellowship budget line by line?

Do not start with a big round number. Build it from the parts. Work each line, then add them up. That gives you a number you can defend to finance.

Here is the order that keeps you honest.

Now you have a net number. That is the figure you take to finance. Not a guess. A model you can walk them through, line by line. For more on that conversation, read our guide on how to prove your veteran sourcing spend to the CFO.

What funding can offset your fellowship cost?

This is the part most companies miss. The government funds several pieces of veteran hiring. Used right, these can cut your fellowship cost by a large share. Some even take the wage to zero.

Here are the main sources, split by fellowship type.

The VA Special Employer Incentive can reimburse as much as half of a qualified veteran wage for up to six months. That is real money back on a paid fellowship. We break down the numbers in our guide to the VA Special Employer Incentive and salary reimbursement.

If you turn the fellowship into a training path, a registered apprenticeship can add funding and GI Bill support. See how to source veterans for apprenticeship-to-hire tracks.

How does SkillBridge cut the cost to almost zero?

SkillBridge is the biggest lever you have. It is a Department of Defense program for service members in their last few months of service. They intern with a civilian company while the military keeps paying them.

For you, that means no wage cost during the fellowship. You get months of real work and a full look at the person. If the fit is good, you make an offer. If not, you both walk away clean.

To use it, your company signs a short agreement with DoD and gets listed as a host. It is not hard, but there are steps. Start with our guide on how to become a SkillBridge host company. You can confirm program rules on the official DoD SkillBridge site. For the full cost picture, read the real ROI math on SkillBridge cost for employers.

Does the WOTC tax credit help fund a fellowship?

It can, but with a big caveat right now. The Work Opportunity Tax Credit is a federal credit for hiring people from certain groups, including many veterans. It applies to a hire, not to a fellowship stipend. So it may help fund the full-time role you offer after the fellowship, not the fellowship itself.

Here is the caveat. Read it before you budget any WOTC dollars for 2026.

The safe move is simple. Keep screening new hires for eligibility so you are ready if the credit comes back. But do not build your fellowship budget around WOTC money for 2026. You can track the program status on the Department of Labor WOTC page.

What hidden costs blow up a fellowship budget?

Most fellowship budgets break for the same few reasons. None of them are the wage. Watch these four.

• Mentor time creep: A fellow with no clear plan eats manager hours. Set the projects up front so mentoring stays a few hours a week.
• No conversion plan: If you run a fellowship with no open role at the end, you paid for a tryout you cannot act on. Line up the req first.
• Slow onboarding: A fellow who waits two weeks for a laptop and system access is burning your budget on nothing. Get setup done before day one.
• Scope creep: Two fellows becomes five before the first cohort proves out. Start small. Prove the model. Then scale.

The fix for all four is the same. Treat the first fellowship like a pilot. A tight, small run tells you the true cost before you commit real budget. Our guide on how to run a 90-day veteran hiring pilot walks through it.

How do you show the fellowship ROI to finance?

A budget is only half the pitch. Finance also wants the return. The strongest number is your cost per converted hire. That is the total fellowship spend divided by the people you actually hire from it.

Compare that to what you pay an agency. A staffing firm often charges 15 to 25 percent of first-year salary for a placement. A fellowship that converts can land well under that, especially when SkillBridge or a VA incentive covers the wage.

You also get something an agency cannot sell you. You watched the person do the job for weeks before the offer. That lowers your risk of a bad hire, which is the most expensive mistake in hiring.

To build the full comparison, use our guide on how to calculate cost-per-veteran-hire by channel and the framework to make the internal business case for veteran hiring.

What should you budget for a paid fellow stipend?

For a post-separation fellow, do not lowball the pay. A token stipend attracts weak candidates and hurts your brand. Budget a fair wage for the work the fellow will do.

A simple rule works well. Pay close to what you would pay a junior person in the same role. If the fellowship maps to a role with a set salary, prorate it for the term. A 12-week fellowship is roughly a quarter of a year. So budget about a quarter of that annual figure.

Then layer the offsets on top. If the veteran qualifies for the VA Special Employer Incentive, a share of that wage may come back to you. If you build a training track, GI Bill support can add to the fellow income without adding to your cost. Budget the gross wage first. Then note the likely offset as a separate line so finance sees both.

One more tip. Set the pay before you post the role. Changing the number mid-search looks bad and slows you down.

How long should a veteran fellowship run?

Length drives cost, so pick it on purpose. Most veteran fellowships run 8 to 12 weeks. That is long enough to judge real work and short enough to keep the budget in check.

SkillBridge fellowships can run longer because DoD carries the pay. Some go up to about six months based on the service member timeline. That gives you a deeper look at almost no wage cost. If you can host a longer SkillBridge term, take it.

A paid fellowship is different. Every extra week adds wage and mentor cost to your budget. So keep paid terms tight. Set a clear end date and a clear decision point. Both sides should know when the convert-or-part call happens.

Whatever length you pick, put it in writing before day one. A fixed term protects your budget and sets a fair expectation for the fellow. It also keeps the ROI math clean, because you know exactly how many weeks you paid for. Building this pool ahead of an open req helps too. See how to build a veteran talent pipeline before reqs open.

How do you start without overbuilding?

Do not launch a giant program. Run one small cohort. Budget one or two fellows for one term. Use SkillBridge if you can, so the wage line stays near zero. Track the hours and the setup cost as you go. That gives you a real number for cohort two.

The one input you need is a steady stream of qualified veteran candidates. BMR adds more than 1,000 new veteran profiles every month, and veterans have built over 60,000 resumes on the platform. That is a fresh pool of fellowship candidates you can reach without paying an agency to find them.

Ready to fill your first fellowship cohort? Reach out to access BMR veteran talent pool, or learn how to partner with us on a veteran hiring program. A small, well-budgeted fellowship is one of the lowest-risk ways to add proven talent to your team.