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Forces pursuant to a reserve affiliation agreement entered 
into under such section during fiscal year 2005 shall not 
exceed $10,000, and the Secretary of Defense, and the 
Secretary of Homeland Security with respect to the Coast 
Guard, may prescribe regulations under subsection (f) of 
such section to modify the method by which bonus pay-
ments are made under reserve affiliation agreements en-
tered into during such fiscal year. 
SEC. 1113. (a) INCREASE IN SGLI MAXIMUM.—Sec-
tion 1967 of title 38, United States Code, is amended— 
(1) in subsection (a)(3)(A)(i), by striking 
‘‘$250,000’’ and inserting ‘‘$400,000 or such lesser 
amount as the member may elect in increments of 
$50,000’’; 
(2) in subsection (a)(3)(B), by striking ‘‘member 
or spouse’’ in the last sentence and inserting ‘‘mem-
ber, be evenly divisible by $50,000 and, in the case 
of a member’s spouse’’; and 
(3) in subsection (d), by striking ‘‘of $250,000’’ 
and 
inserting 
‘‘in 
effect 
under 
subsection 
(a)(3)(A)(i)’’. 
(b) SPOUSE CONSENT AND BENEFICIARY NOTIFICA-
TION.—Section 1967(a)(3)(B) of such title is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’; and
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(2) by adding at the end the following new 
clauses: 
‘‘(ii) A member who is married may 
not, without the written concurrence of the 
member’s spouse— 
‘‘(I) elect not to be insured under 
this subchapter or to be insured under 
this subchapter in an amount less 
than the maximum amount provided 
for under subparagraph (A)(i); or 
‘‘(II) designate any other person 
as a beneficiary under this program. 
‘‘(iii) Whenever a member who is not 
married elects not to be insured under this 
subchapter or to be insured under this sub-
chapter in an amount less than the max-
imum amount provided for under subpara-
graph (A)(i), the Secretary concerned shall 
provide a notice of such election to any 
person designated by the member as a ben-
eficiary or designated as the member’s 
next-of-kin for the purpose of emergency 
notification, as determined under regula-
tions prescribed by the Secretary of De-
fense.’’.
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(c) LIMITATION ON SPOUSE COVERAGE TO AMOUNT 
OF MEMBER COVERAGE.—Section 1967(a)(3)(C) of such 
title is amended by inserting before the period at the end 
the following: ‘‘as applicable to such member under sub-
paragraph (A)(i)’’. 
(d) CONFORMING AMENDMENTS TO VGLI PROVI-
SIONS.—Section 1977 of such title is amended by striking 
‘‘$250,000’’ each place it appears and inserting 
‘‘$400,000’’. 
(e) MILITARY DEATH GRATUITY.—Section 1478 of 
title 10, United States Code, is amended— 
(1) in subsection (a), by striking ‘‘$12,000 (as 
adjusted under subsection (c))’’ and inserting 
‘‘$100,000’’; and 
(2) by striking subsection (c). 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to deaths occurring 
on or after the date of the enactment of this Act. 
SEC. 1114. (a) SPECIAL DEATH GRATUITY FOR CER-
TAIN PRIOR DEATHS IN SERVICE.—In the case of the 
death of a member of the uniformed services that is a 
qualifying death (as specified in subsection (b)), the Sec-
retary concerned shall pay a death gratuity of not more 
than $238,000. Of that amount—
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(1) $150,000 shall be paid in the manner speci-
fied in subsection (c); and 
(2) $88,000 shall be paid in the manner speci-
fied in subsection (d). 
(b) QUALIFYING DEATHS.—The death of a member 
of the uniformed services is a qualifying death for purpose 
of this section if— 
(1) the member died during the period begin-
ning on October 7, 2001, and ending on the day be-
fore the date of the enactment of this Act; and 
(2) for the purpose of section 1114(a)(2), the 
death was a direct result of an injury or illness (or 
combination of one or more injuries or illness) in-
curred in Operation Enduring Freedom or Operation 
Iraqi Freedom, as determined under regulations pre-
scribed by the Secretary of Defense; and 
(3) for the purpose of section 1114(a)(1), the 
death was a direct result of an injury or illness (or 
combination of one or more injuries or illness) in-
curred by any active duty military member in the 
performance of duty. 
(c) SGLI BENEFICIARIES.—A payment pursuant to 
subsection (a)(1) by reason of a covered death shall be 
paid—
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(1) to a beneficiary in proportion to the share 
of benefits applicable to such beneficiary in the pay-
ment of life insurance proceeds paid on the basis of 
that death under the Servicemembers Group Life In-
surance program under subchapter III of chapter 19 
of title 38, United States Code; or 
(2) in the case of a member who elected not to 
be insured under the provisions of that subchapter, 
in equal shares to the person or persons who would 
have received proceeds under those provisions of law 
for a member who is insured under that subchapter 
but does not designate named beneficiaries. 
(d) MILITARY DEATH GRATUITY BENEFICIARIES.— 
A payment pursuant to subsection (a)(2) by reason of a 
covered death shall be paid equal shares to the bene-
ficiaries who were paid the death gratuity that was paid 
with respect to that death under subchapter II of chapter 
75 of title 10, United States Code. 
(e) STATUS OF PAYMENTS.—A death gratuity pay-
able under this section by reason of a qualifying death 
is in addition to any other death gratuity or other benefit 
payable by the United States by reason of that death. 
(f) DEFINITION.—For the purposes of this section, the 
term ‘‘Secretary concerned’’ has the meaning given that 
term in section 101 of title 37, United States Code.’’.
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SEC. 1115. Funds appropriated in this chapter, or 
made available by transfer of funds in or pursuant to this 
chapter, for intelligence activities are deemed to be specifi-
cally authorized by the Congress for purposes of section 
504 of the National Security Act of 1947 (50 U.S.C. 414). 
SEC. 1116. None of the funds provided in this chap-
ter may be used to finance programs or activities denied 
by Congress in fiscal year 2004 and 2005 appropriations 
to the Department of Defense or to initiate a procurement 
or research, development, test and evaluation new start 
program without prior written notification to the congres-
sional defense committees. 
CHAPTER 2 
DEPARTMENT OF DEFENSE 
MILITARY CONSTRUCTION, ARMY 
For an additional amount for ‘‘Military Construction, 
Army’’, $930,100,000, to remain available until Sep-
tember 30, 2006: Provided, That $669,100,000 of such 
additional amount may not be obligated until after that 
date on which the Secretary of Defense submits to the 
Committees on Appropriations of the House of Represent-
atives and Senate the comprehensive master plans for 
overseas military infrastructure required by House Report 
108–342: Provided further, That notwithstanding any 
other provision of law, such funds may be obligated or ex-