IB
Union Calendar No. 283
107TH CONGRESS
2D SESSION
H. R. 4085
[Report No. 107–472]
To increase, effective as of December 1, 2002, the rates of disability com-
pensation for veterans with service-connected disabilities and the rates
of dependency and indemnity compensation for survivors of certain serv-
ice-connected disabled veterans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 9, 2002
Mr. SMITH of New Jersey (for himself, Mr. EVANS, Mr. SIMPSON, and Mr.
REYES) introduced the following bill; which was referred to the Com-
mittee on Veterans’ Affairs
MAY 16, 2002
Additional sponsors: Mr. JEFF MILLER of Florida, Ms. BROWN of Florida,
Mr. RODRIGUEZ, Mr. ANDREWS, Mr. SHOWS, Mr. FALEOMAVAEGA, Mr.
LYNCH, Mr. EDWARDS, Mr. FILNER, Ms. MCKINNEY, Ms. CARSON of In-
diana, Mr. GUTIERREZ, Mr. FOLEY, Mrs. CAPPS, Mr. UDALL of New
Mexico, Mr. STUMP, Ms. BERKLEY, Mr. BILIRAKIS, Mr. HOLDEN, and
Mrs. DAVIS of California
MAY 16, 2002
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 9, 2002]
A BILL
To increase, effective as of December 1, 2002, the rates
of disability compensation for veterans with service-con-
nected disabilities and the rates of dependency and in-
demnity compensation for survivors of certain service-
connected disabled veterans, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Veterans’ and Survivors’
Benefits Expansion Act of 2002’’.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION
AND DEPENDENCY AND INDEMNITY COM-
PENSATION.
(a) RATE ADJUSTMENT.—The Secretary of Veterans
Affairs shall, effective on December 1, 2002, increase the dol-
lar amounts in effect for the payment of disability com-
pensation and dependency and indemnity compensation by
the Secretary, as specified in subsection (b).
(b) AMOUNTS
TO
BE
INCREASED.—The dollar
amounts to be increased pursuant to subsection (a) are the
following:
(1) COMPENSATION.—Each of the dollar amounts
in effect under section 1114 of title 38, United States
Code.
(2) ADDITIONAL
COMPENSATION
FOR
DEPEND-
ENTS.—Each of the dollar amounts in effect under
sections 1115(1) of such title.
(3) CLOTHING ALLOWANCE.—The dollar amount
in effect under section 1162 of such title.
(4) NEW DIC RATES.—The dollar amounts in ef-
fect under paragraphs (1) and (2) of section 1311(a)
of such title.
(5) OLD
DIC
RATES.—Each of the dollar
amounts in effect under section 1311(a)(3) of such
title.
(6) ADDITIONAL DIC FOR SURVIVING SPOUSES
WITH MINOR CHILDREN.—The dollar amount in effect
under section 1311(b) of such title.
(7) ADDITIONAL DIC FOR DISABILITY.—The dol-
lar amounts in effect under sections 1311(c) and
1311(d) of such title.
(8) DIC FOR DEPENDENT CHILDREN.—The dol-
lar amounts in effect under sections 1313(a) and
1314 of such title.
(c) DETERMINATION OF INCREASE.—(1) The increase
under subsection (a) shall be made in the dollar amounts
specified in subsection (b) as in effect on November 30,
2002.
(2) Except as provided in paragraph (3), each such
amount shall be increased by the same percentage as the
percentage by which benefit amounts payable under title II
of the Social Security Act (42 U.S.C. 401 et seq.) are in-
creased effective December 1, 2002, as a result of a deter-
mination under section 215(i) of such Act (42 U.S.C.
415(i)).
(3) Each dollar amount increased pursuant to para-
graph (2) shall, if not a whole dollar amount, be rounded
down to the next lower whole dollar amount.
(d) SPECIAL RULE.—The Secretary may adjust ad-
ministratively, consistent with the increases made under
subsection (a), the rates of disability compensation payable
to persons within the purview of section 10 of Public Law
85–857 (72 Stat. 1263) who are not in receipt of compensa-
tion payable pursuant to chapter 11 of title 38, United
States Code.
(e) PUBLICATION OF ADJUSTED RATES.—At the same
time as the matters specified in section 215(i)(2)(D) of the
Social Security Act (42 U.S.C. 415(i)(2)(D)) are required
to be published by reason of a determination made under
section 215(i) of such Act during fiscal year 2003, the Sec-
retary of Veterans Affairs shall publish in the Federal Reg-
ister the amounts specified in subsection (b), as increased
pursuant to that section.
SEC. 3. RETENTION OF DEPENDENCY AND INDEMNITY COM-
PENSATION FOR SURVIVING SPOUSES RE-
MARRYING AFTER AGE 65.
(a) EXCEPTION TO TERMINATION OF BENEFITS UPON
REMARRIAGE.—Paragraph (2) of section 103(d) of title 38,
United States Code, is amended by striking ‘‘if the remar-
riage’’ and all that follows and inserting ‘‘if—
‘‘(A) the remarriage occurs after the surviving
spouse attains age 65 ;
‘‘(B) the remarriage has been terminated by
death; or
‘‘(C) the remarriage has been terminated by di-
vorce, unless the Secretary determines that the divorce
was secured through fraud or collusion.’’.
(b) CONFORMING AMENDMENTS.—Paragraph (4) of
such section is amended—
(1) by striking ‘‘The first month’’ and all the fol-
lows through ‘‘shall be’’ and inserting the following
‘‘When eligibility for benefits for a surviving spouse
is restored by reason of this subsection, the first
month of eligibility for such benefits shall be’’; and
(2) in subparagraph (A), by striking ‘‘described
in’’ and inserting ‘‘with a remarriage described in
subparagraph (B) or (C) of’’.
(c) INCLUSION OF DEATH COMPENSATION AMONG RE-
STORED BENEFITS.—Subparagraph (A) of paragraph (5)
of such section is amended to read as follows:
‘‘(A) Sections 1121 and 1311, relating to death
compensation and dependency and indemnity com-
pensation, respectively.’’.
(d) APPLICATION FOR BENEFITS.—In the case of an
individual who but for having remarried would be eligible
for dependency and indemnity compensation under section
1311 of title 38, United States Code, or death compensation
under section 1121 of such title, and whose remarriage was
before the date of the enactment of this Act and after the
individual had attained age 65, the individual shall be eli-
gible for such compensation by reason of the amendments
made by subsection (a) only if the individual submits an
application for such compensation to the Secretary of Vet-
erans Affairs not later than the end of the one-year period
beginning on the date of the enactment of this Act.
(e) COORDINATION OF BENEFITS.—Section 1311 of
such title is amended by adding at the end the following
new subsection:
‘‘(e) In the case of an individual who is eligible for
dependency and indemnity compensation under this section
by reason of section 103(d)(2)(A) of this title who is also
eligible for benefits under another provision of law by rea-
son of such individual’s status as the surviving spouse of
a veteran, then, notwithstanding any other provision of
law, no reduction in benefits under such other provision of
law shall be made by reason of such individual’s eligibility
for benefits under this section.’’.
SEC. 4. UNIFORM HOME LOAN GUARANTY FEES FOR QUALI-
FYING MEMBERS OF THE SELECTED RESERVE
AND ACTIVE DUTY VETERANS.
(a) IN GENERAL.—Paragraph (2) of section 3729(b)
of title 38, United States Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(2) by inserting ‘‘for any loan closed after Sep-
tember 30, 2005’’ after ‘‘paragraph (1)’’; and
(3) by adding at the end the following:
‘‘(B) The loan fee table referred to in paragraph (1)
for any loan closed during the period beginning on October
1, 2002, and ending on September 30, 2005, is as follows:
‘‘LOAN FEE TABLE
Type of loan
Veteran
Other obligor
(A)(i) Initial loan described in section 3710(a) to purchase or con-
struct a dwelling with 0-down, or any other initial loan de-
scribed in section 3710(a) other than with 5-down or 10-down
(closed before October 1, 2008) ........................................................
2.00
NA
(A)(ii) Initial loan described in section 3710(a) to purchase or
construct a dwelling with 0-down, or any other initial loan de-
scribed in section 3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2008) ................................................
1.25
NA
(B)(i) Subsequent loan described in section 3710(a) to purchase or
construct a dwelling with 0-down, or any other subsequent loan
described in section 3710(a) (closed before October 1, 2008) ........
3.00
NA
(B)(ii) Subsequent loan described in section 3710(a) to purchase
or construct a dwelling with 0-down, or any other subsequent
loan described in section 3710(a) (closed on or after October 1,
2008) .................................................................................................
1.25
NA
‘‘LOAN FEE TABLE—Continued
Type of loan
Veteran
Other obligor
(C)(i) Loan described in section 3710(a) to purchase or construct
a dwelling with 5-down (closed before October 1, 2008) ...............
1.50
NA
(C)(ii) Loan described in section 3710(a) to purchase or construct
a dwelling with 5-down (closed on or after October 1, 2008) ......
0.75
NA
(D)(i) Initial loan described in section 3710(a) to purchase or con-
struct a dwelling with 10-down (closed before October 1, 2008) ..
1.25
NA
(D)(ii) Initial loan described in section 3710(a) to purchase or
construct a dwelling with 10-down (closed on or after October 1,
2008) .................................................................................................
0.50
NA
(E) Interest rate reduction refinancing loan .....................................
0.50
NA
(F) Direct loan under section 3711 ....................................................
1.00
NA
(G) Manufactured home loan under section 3712 (other than an
interest rate reduction refinancing loan) .......................................
1.00
NA
(H) Loan to Native American veteran under section 3762 (other
than an interest rate reduction refinancing loan) ........................
1.25
NA
(I) Loan assumption under section 3714 ...........................................
0.50
0.50
(J) Loan under section 3733(a) ..........................................................
2.25
2.25’’.
(b) CONFORMING AMENDMENT.—Paragraph (4)(A) of
such section is amended by inserting before the period at
the end the following: ‘‘, and the term ‘veteran’ means any
veteran eligible for the benefits of this chapter’’.
SEC. 5. LIFE INSURANCE PROGRAMS.
(a) INCREASE OF VETERANS’ MORTGAGE LIFE INSUR-
ANCE COVERAGE TO $150,000.—(1) Section 2106(b) of title
38, United States Code, is amended by striking ‘‘$90,000’’
and inserting ‘‘$150,000’’.
(2) The amendment made by paragraph (1) shall
apply with respect to insurance payable under section 2106
of title 38, United States Code, in the case of a veteran
insured under that section who dies on or after the date
of enactment of this Act.
(b) AUTHORITY FOR VETERANS’ MORTGAGE LIFE IN-
SURANCE TO BE CARRIED BEYOND AGE 70.—Section 2106
of such title is amended—
(1) in subsection (a), by inserting ‘‘age 69 or
younger’’ after ‘‘any eligible veteran’’; and
(2) in subsection (i), by striking paragraph (2)
and redesignating paragraphs (3) and (4) as para-
graphs (2) and (3), respectively.
SEC. 6. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAIL-
ABLE FOR STATE APPROVING AGENCIES FOR
ADMINISTRATIVE 
EXPENSES 
FOR 
FISCAL
YEARS 2003, 2004, AND 2005.
Section 3674(a)(4) of title 38, United States Code, is
amended by inserting before the period at the end of the
first sentence the following: ‘‘, and for each of fiscal years
2003, 2004, and 2005, $18,000,000’’.
Amend the title so as to read: ‘‘A bill to amend title
38, United States Code, to provide a cost-of-living in-
crease in the rates of compensation for veterans with
service-connected disability and dependency and indem-
nity compensation for surviving spouses of such veterans,
to expand certain benefits for veterans and their sur-
vivors, and for other purposes.’’.
Union Calendar No. 283
107TH CONGRESS
2D SESSION
H. R. 4085
[Report No. 107–472]
A BILL
To increase, effective as of December 1, 2002, the
rates of disability compensation for veterans with
service-connected disabilities and the rates of de-
pendency and indemnity compensation for sur-
vivors of certain service-connected disabled vet-
erans, and for other purposes.
MAY 16, 2002
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed