SECTION 1. RESTORATION OF PRESUMPTION OF TOTAL DISABILITY IN 
              DETERMINATION OF PENSION FOR CERTAIN VETERANS.

    Section 1502(a) of title 38, United States Code, is amended by 
striking out ``if such'' and all that follows through ``is suffering'' 
and inserting in lieu thereof ``if such person is 65 years of age or 
older or becomes unemployable after age 65, or is suffering''.

SEC. 2. RESTORATION OF PENSION AMOUNT FOR CERTAIN VETERANS RECEIVING 
              MEDICAID-COVERED NURSING HOME CARE.

    Section 5503 of title 38, United States Code, is amended by 
striking out subsection (f).

SEC. 3. RESTORATION OF RIGHTS OF CERTAIN SURVIVORS FOR REINSTATEMENT OF 
              BENEFITS ELIGIBILITY UPON BECOMING SINGLE.

    Section 103 of title 38, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by inserting ``(1)'' after ``(d)''; and
                    (B) by adding at the end the following:
    ``(2) The remarriage of the surviving spouse of a veteran shall not 
bar the furnishing of benefits to such person as the surviving spouse 
of the veteran if the remarriage has been terminated by death or has 
been dissolved by a court with basic authority to render divorce 
decrees unless the Secretary determines that the divorce was secured 
through fraud by the surviving spouse or collusion.
    ``(3) If a surviving spouse ceases living with another person and 
holding himself or herself out openly to the public as that person's 
spouse, the bar to granting that person benefits as the surviving 
spouse of the veteran shall not apply.''; and
            (2) in subsection (e)--
                    (A) by inserting ``(1)'' after ``(e)''; and
                    (B) by adding at the end the following:
    ``(2) The marriage of a child of a veteran shall not bar the 
recognition of such child as the child of the veteran for benefit 
purposes if the marriage has been terminated by death or has been 
dissolved by a court, with basic authority to render divorce decrees 
unless the Secretary determines that the divorce was secured through 
fraud by either party or collusion.''.

SEC. 4. RESTORATION OF MEDICATION BENEFIT WITHOUT COPAYMENT.

    (a) Repeal.--Section 1722A of title 38, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 17 of such title is amended by striking out the item relating 
to section 1722A.

SEC. 5. RESTORATION OF HEALTH-CARE CATEGORIES AND COPAYMENTS.

    (a) Inpatient Care.--(1) Subsection (a) of section 1710 of title 
38, United States Code, is amended--
            (A) in paragraph (1)(I) by striking ``1722(a)'' and 
        inserting in lieu thereof ``1722(a)(1)''; and
            (B) by striking out paragraph (2) and inserting in lieu 
        thereof the following:
    ``(2)(A) To the extent that resources and facilities are available, 
the Secretary may furnish hospital care and nursing home care which the 
Secretary determines is needed to a veteran for a non-service-connected 
disability if the veteran has an income level described in section 
1722(a)(2) of this title.
    ``(B) In the case of a veteran who is not described in paragraph 
(1) or in subparagraph (A), the Secretary may furnish hospital care and 
nursing home care which the Secretary determines is needed to the 
veteran for a non-service-connected disability--
            ``(i) to the extent that resources and facilities are 
        otherwise available; and
            ``(ii) subject to the provisions of subsection (f).''.
    (2) Subsection (f) of such section is amended--
            (A) by striking out paragraphs (1) and (2) and inserting in 
        lieu thereof the following:
    ``(f)(1) The Secretary may not furnish hospital care or nursing 
home care under this section to a veteran who is eligible for such care 
by reason of subsection (a)(2)(B) unless the veteran agrees to pay to 
the United States the applicable amount determined under paragraph (2) 
of this subsection.
    ``(2) A veteran who is furnished hospital care or nursing home care 
under this section and who is required under paragraph (1) to agree to 
pay an amount to the United States in order to be furnished such care 
shall be liable to the United States for an amount equal to the lesser 
of--
            ``(A) the cost of furnishing such care, as determined by 
        the Secretary, and
            ``(B) the amount determined under paragraph (3) of this 
        subsection.''; and
            (B) in subparagraphs (A) and (B) of paragraph (3), by 
        striking out ``(2)(A)(ii)'' each place it appears and inserting 
        in lieu thereof ``(2)(B)''.
    (b) Outpatient Care.--Subsection (f) of section 1712 of such title 
is amended--
            (1) in paragraph (1), by striking out ``1710(a)(2)'' and 
        inserting in lieu thereof ``1710(a)(2)(B)'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and (7), respectively;
            (3) by inserting after paragraph (2) the following:
    ``(3) A veteran may not be required to make a payment under this 
subsection for services furnished under subsection (a) during any 90-
day period to the extent that such payment would cause the total amount 
paid by the veteran under this subsection for medical services 
furnished during that period and under section 1710(f) of this title 
for hospital and nursing home care furnished during that period to 
exceed the amount of the inpatient Medicare deductible in effect on the 
first day of such 90-day period.
    ``(4) A veteran may not be required to make a payment under this 
subsection if such payment would result in the veteran paying, under 
this subsection and section 1710(f) of this title, a total amount 
greater than four times the amount of the inpatient Medicare deductible 
for care or services, or any combination thereof, furnished under this 
chapter during any 365-calendar day period.''; and
            (4) by inserting after paragraph (5), as so redesignated, 
        the following:
    ``(6) For the purposes of this subsection, the term ``inpatient 
Medicare deductible'' means the amount of the inpatient hospital 
deductible in effect under section 1813(b) of the Social Security Act 
(42 U.S.C. 1395e(b)).''.
    (c) Income Thresholds.--(1) Subsection (a) of section 1722 of such 
title is amended--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
            (C) by striking out ``amount set forth in subsection (b)'' 
        in subparagraph (C), as so redesignated, and inserting in lieu 
        thereof ``Category A threshold''; and
            (D) by adding at the end the following:
    ``(2) For the purposes of section 1710(a)(2)(A) of this title, a 
veteran's income level is described in this paragraph if the veteran's 
attributable income is not greater than the Category B threshold.''.
    (2) Subsection (b) of such section is amended to read as follows:
    ``(b) For the purposes of this section:
            ``(1) The Category A threshold--
                    ``(A) for the calendar year beginning on January 1, 
                1989, is--
                            ``(i) $16,466 in the case of a veteran with 
                        no dependents; and
                            ``(ii) $19,759 in the case of a veteran 
                        with one dependent, plus $1,098 for each 
                        additional dependent; and
                    ``(B) for a calendar year beginning after January 
                1, 1989, is the amount in effect for purposes of this 
                paragraph for the preceding calendar year as adjusted 
                under subsection (c) of this subsection.
            ``(2) The Category B threshold--
                    ``(A) for the calendar year beginning on January 1, 
                1989, is--
                            ``(i) $21,954 in the case of a veteran with 
                        no dependents; and
                            ``(ii) $27,440 in the case of a veteran 
                        with one dependent, plus $1,098 for each 
                        additional dependent; and
                    ``(B) for a calendar year beginning after January 
                1, 1989, is the amount in effect for purposes of this 
                paragraph for the preceding calendar year as adjusted 
                under subsection (c) of this subsection.''.
    (3) Subsection (c) of such section is amended by inserting 
``paragraphs (1) and (2) of'' after ``in effect under''.
    (4) Paragraph (2) of subsection (d) of such section is amended to 
read as follows:
    ``(2) A determination described in this paragraph is a 
determination--
            ``(A) that for the purposes of subsection (a)(1)(C) of this 
        section a veteran's attributable income is not greater than the 
        Category A threshold; or
            ``(B) that for the purposes of subsection (a)(2) of this 
        section, a veteran's attributable income is not greater than 
        the Category B threshold.''.
    (5) Subsection (e) of such section is amended--
            (A) in paragraph (1), by striking out ``the amount 
        determined under subsection (b) of this section'' and inserting 
        in lieu thereof ``the Category A threshold or the Category B 
        threshold, as appropriate''; and
            (B) by striking out paragraph (2) and inserting in lieu 
        thereof the following:
    ``(2)(A) A veteran is described in this paragraph for the purposes 
of subsection (a)(1) if--
            ``(i) the veteran has an attributable income greater than 
        the Category A threshold; and
            ``(ii) the current projections of such veteran's income for 
        the current year are that the veteran's income for such year 
        will be substantially below such threshold.
    ``(B) A veteran is described in this paragraph for the purpose of 
subsection (a)(2) of this section if--
            ``(i) the veteran has an attributable income greater than 
        the Category B threshold; and
            ``(ii) the current projections of such veteran's income for 
        the current year are that the veteran's income for such year 
        will be substantially below such threshold.''.

SEC. 6. RESTORATION OF EDUCATION BENEFITS.

    Section 3102(1) of title 38, United States Code, is amended by 
striking out ``at a rate of 20 percent or more'' after ``compensable'' 
each place it appears.

SEC. 7. RESTORATION OF BURIAL AND GRAVE MARKER BENEFITS.

    (a) Headstone Allowance.--Section 2306 of title 38, United States 
Code, is amended by adding at the end the following:
    ``(e) In lieu of furnishing a headstone or marker under subsection 
(a)(2) or (b), the Secretary, in the Secretary's discretion, having due 
regard for the circumstances in each case, may reimburse the person 
entitled to request such headstone or marker for the cost of acquiring 
a non-Government headstone or marker for placement in any cemetery 
other than a national cemetery in connection with the burial or 
memorialization of the deceased individual. The cost referred to in the 
preceding sentence is the cost actually incurred by or on behalf of 
such person or the cost prepaid by the deceased individual as the case 
may be. Reimbursement under this subsection may be made only upon the 
request of the person entitled to request the headstone or marker and 
may not be made in an amount in excess of the average actual cost, as 
determined by the Secretary, of headstones and markers furnished under 
subsections (a) and (b).''.
    (b) Plot Allowance.--Section 2303(b)(2) of such title is amended by 
striking out ``(other than'' and all that follows through ``any war)''.

SEC. 8. RESTORATION OF CRITERIA FOR LINE-OF-DUTY AND MISCONDUCT 
              DETERMINATIONS.

    Sections 105(a), 1110, and 1131 of title 38, United States Code, 
are each amended by striking out ``a result of the person's own willful 
misconduct or abuse of alcohol or drugs'' and inserting in lieu thereof 
``the result of the person's own willful misconduct''.
Presumes a veteran to be totally disabled for purposes of pension determination provisions if such person is 65 or older or becomes unemployable after such age. 
Restores the full permitted monthly pension (currently $90) for veterans having neither spouse nor child and receiving Medicaid-covered nursing home care. 
Provides that the remarriage of a veteran's surviving spouse shall not eliminate the right of such former spouse to survivors' benefits if the remarriage is terminated or dissolved unless the Secretary of Veterans Affairs determines that the divorce was secured through fraud or collusion by the surviving spouse.  Provides similar benefits protection for a veteran's child whose marriage is dissolved without fraud or collusion. 
Repeals a Federal provision requiring a minimum copayment for medication received for a nonservice-connected disability by a veteran with a service-connected disability rated at 50 percent or less. 
Authorizes the Secretary to furnish hospital and nursing home care for the nonservice-connected disability of a veteran whose income falls below a specified level.  Allows such care to be furnished to other ineligible veterans if a minimum amount is paid by such veteran. 
Prohibits a veteran from being required to pay for certain outpatient services furnished during any 90-day period.  Revises certain income thresholds used in determining whether such payment is required. 
Entitles all veterans with a service-connected disability (currently, only those whose rating is 20 percent or more) to the basic veterans' educational assistance entitlement. 
Authorizes the Secretary, in lieu of furnishing a headstone or grave marker, to reimburse a person for the cost of such in any cemetery other than a national cemetery in the case of a veteran's burial. 
Allows a veteran's abuse of alcohol or drugs to be considered an injury incurred in the line of duty for purposes of eligibility for veterans' benefits and misconduct determinations.
To restore reductions in veterans benefits made by the Omnibus Budget Reconciliation Act of 1990.