(B) by redesignating paragraphs (1), (2), and
(3) as subparagraphs (A), (B), and (C), respectively;
(C) by striking out ‘‘amount set forth in sub-
section (b)’’ in subparagraph (C), as so redesig-
nated, 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 para-
graph 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 in-
serting ‘‘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 in-
come 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 sec-
tion’’ and inserting in lieu thereof ‘‘the Category A
threshold or the Category B threshold, as appro-
priate’’; 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 Sec-
retary’s discretion, having due regard for the cir-
cumstances in each case, may reimburse the person enti-
tled 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 de-
ceased 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