A bill to amend title 38, United States Code, to codify the rates of disability compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for survivors of such veterans as such rates took effect of December 1, 1992, and to make a technical correction relating to the financing of discount points for certain veterans loans.

Summary: Increases the rates of:  (1) veterans' disability compensation; (2) additional compensation for veterans' dependents; (3) the clothing allowance for certain disabled veterans; (4) dependency and indemnity compensation for surviving spouses and children; and (5) supplemental dependency and indemnity compensation for disabled adult children. 
Makes a technical correction relating to the financing of discount points for certain veterans' loans. 
Deletes the requirement that adjustments in adjustable rate mortgages guaranteed to veterans by the Department of Veterans Affairs occur on the anniversary of the date on which the loan was closed.

SECTION 1. DISABILITY COMPENSATION.

    Section 1114 of title 38, United States Code, is amended--
            (1) by striking out ``$83'' in subsection (a) and inserting 
        in lieu thereof ``$85'';
            (2) by striking out ``$157'' in subsection (b) and 
        inserting in lieu thereof ``$162'';
            (3) by striking out ``$240'' in subsection (c) and 
        inserting in lieu thereof ``$247'';
            (4) by striking out ``$342'' in subsection (d) and 
        inserting in lieu thereof ``$352'';
            (5) by striking out ``$487'' in subsection (e) and 
        inserting in lieu thereof ``$502'';
            (6) by striking out ``$614'' in subsection (f) and 
        inserting in lieu thereof ``$632'';
            (7) by striking out ``$776'' in subsection (g) and 
        inserting in lieu thereof ``$799'';
            (8) by striking out ``$897'' in subsection (h) and 
        inserting in lieu thereof ``$924'';
            (9) by striking out ``$1,010'' in subsection (i) and 
        inserting in lieu thereof ``$1,040'';
            (10) by striking out ``$1,680'' in subsection (j) and 
        inserting in lieu thereof ``$1,730'';
            (11) by striking out ``$2,089'', ``$68'', and ``$2,927'' in 
        subsection (k) and inserting in lieu thereof ``$2,152'', 
        ``$70'', and ``$3,015'', respectively;
            (12) by striking out ``$2,089'' in subsection (l) and 
        inserting in lieu thereof ``$2,152'';
            (13) by striking out ``$2,302'' in subsection (m) and 
        inserting in lieu thereof ``$2,371'';
            (14) by striking out ``$2,619'' in subsection (n) and 
        inserting in lieu thereof ``$2,698'';
            (15) by striking out ``$2,927'' each place it appears in 
        subsections (o) and (p) and inserting in lieu thereof 
        ``$3,015'';
            (16) by striking out ``$1,257'' and ``$1,872'' in 
        subsection (r) and inserting in lieu thereof ``$1,295'' and 
        ``$1,928'', respectively; and
            (17) by striking out ``$1,879'' in subsection (s) and 
        inserting in lieu thereof ``$1,935''.

SEC. 2. ADDITIONAL COMPENSATION FOR DEPENDENTS.

    Section 1115(1) of title 38, United States Code, is amended--
            (1) by striking out ``$100'' in subparagraph (A) and 
        inserting in lieu thereof ``$103'';
            (2) by striking out ``$169'' and ``$52'' in subparagraph 
        (B) and inserting in lieu thereof ``$174'' and ``$54'', 
        respectively;
            (3) by striking out ``$69'' and ``$52'' in subparagraph (C) 
        and inserting in lieu thereof ``$71'' and ``$54'', 
        respectively;
            (4) by striking out ``$80'' in subparagraph (D) and 
        inserting in lieu thereof ``$82'';
            (5) by striking out ``$185'' in subparagraph (E) and 
        inserting in lieu thereof ``$191''; and
            (6) by striking out ``$155'' in subparagraph (F) and 
        inserting in lieu thereof ``$160''.

SEC. 3. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS.

    Section 1162 of title 38, United States Code, is amended by 
striking out ``$452'' and inserting in lieu thereof ``$466.''

SEC. 4. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES.

    Section 1311 of title 38, United States Code, is amended--
            (1) by striking out the table in subsection (a) and 
        inserting in lieu thereof the following:

      

                            Monthly                              Monthly
``Pay grade                    rate  Pay grade                      rate
    E-1.................       $634  W-4.....................       $911
    E-2.................        654  O-1.....................        803
    E-3.................        672  O-2.....................        829
    E-4.................        714  O-3.....................        888
    E-5.................        732  O-4.....................        939
    E-6.................        749  O-5.....................      1,035
    E-7.................        785  O-6.....................      1,168
    E-8.................        829  O-7.....................      1,262
    E-9.................     \1\866  O-8.....................      1,383
    W-1.................        803  O-9.....................      1,483
    W-2.................        835  O-10....................   \2\1,627
    W-3.................        860                                     
                                                                        
``\1\If the veteran served as sergeant major of the Army, senior        
  enlisted advisor of the Navy, chief master sergeant of the Air Force, 
  sergeant major of the Marine Corps, or master chief petty officer of  
  the Coast Guard, at the applicable time designated by section 402 of  
  this title, the surviving spouse's rate shall be $934.                
``\2\If the veteran served as Chairman or Vice-Chairman of the Joint    
  Chiefs of Staff, Chief of Staff of the Army, Chief of Naval           
  Operations, Chief of Staff of the Air Force, Commandant of the Marine 
  Corps, or Commandant of the Coast Guard, at the applicable time       
  designated by section 402 of this title, the surviving spouse's rate  
  shall be $1,744.'';                                                   

            (2) by striking out ``$185'' in subsection (c) and 
        inserting in lieu thereof ``$191''; and
            (3) by striking out ``$90'' in subsection (d) and inserting 
        in lieu thereof ``$93''.

SEC. 5. DEPENDENCY AND INDEMNITY COMPENSATION FOR CHILDREN.

    (a) DIC for Orphan Children.--Section 1313(a) of title 38, United 
States Code, is amended--
            (1) by striking out ``$310'' in paragraph (1) and inserting 
        in lieu thereof ``$319'';
            (2) by striking out ``$447'' in paragraph (2) and inserting 
        in lieu thereof ``$460'';
            (3) by striking out ``$578'' in paragraph (3) and inserting 
        in lieu thereof ``$595''; and
            (4) by striking out ``$578'' and ``$114'' in paragraph (4) 
        and inserting in lieu thereof ``$595'' and ``$117'', 
        respectively.
    (b) Supplemental DIC for Disabled Adult Children.--Section 1314 of 
such title is amended--
            (1) by striking out ``$185'' in subsection (a) and 
        inserting in lieu thereof ``$191'';
            (2) by striking out ``$310'' in subsection (b) and 
        inserting in lieu thereof ``$319''; and
            (3) by striking out ``$157'' in subsection (c) and 
        inserting in lieu thereof ``$162''.

SEC. 6. TECHNICAL CORRECTION RELATING TO THE FINANCING OF DISCOUNT 
              POINTS.

    Section 3703(c)(4)(B) of title 38, United States Code, is amended 
in the second sentence by striking out ``Discount'' and inserting in 
lieu thereof ``Except in the case of a loan for the purpose specified 
in section 3710(a)(8) or 3712(a)(1)(F) of this title, discount''.