An act to amend title 38, United States Code, to provide a cost-of-living adjustment in the rates of disability compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for survivors of such veterans.

SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Veterans' 
Compensation Rate Amendments of 2001''.
    (b) References to Title 38, United States Code.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 38, United States Code.

SEC. 2. DISABILITY COMPENSATION.

    (a) Increase in Rates.--Section 1114 is amended--
        (1) by striking ``$98'' in subsection (a) and inserting 
    ``$103'';
        (2) by striking ``$188'' in subsection (b) and inserting 
    ``$199'';
        (3) by striking ``$288'' in subsection (c) and inserting 
    ``$306'';
        (4) by striking ``$413'' in subsection (d) and inserting 
    ``$439'';
        (5) by striking ``$589'' in subsection (e) and inserting 
    ``$625'';
        (6) by striking ``$743'' in subsection (f) and inserting 
    ``$790'';
        (7) by striking ``$937'' in subsection (g) and inserting 
    ``$995'';
        (8) by striking ``$1,087'' in subsection (h) and inserting 
    ``$1,155'';
        (9) by striking ``$1,224'' in subsection (i) and inserting 
    ``$1,299'';
        (10) by striking ``$2,036'' in subsection (j) and inserting 
    ``$2,163'';
        (11) in subsection (k)--
            (A) by striking ``$76'' both places it appears and 
        inserting ``$80''; and
            (B) by striking ``$2,533'' and ``$3,553'' and inserting 
        ``$2,691'' and ``$3,775'', respectively;
        (12) by striking ``$2,533'' in subsection (l) and inserting 
    ``$2,691'';
        (13) by striking ``$2,794'' in subsection (m) and inserting 
    ``$2,969'';
        (14) by striking ``$3,179'' in subsection (n) and inserting 
    ``$3,378'';
        (15) by striking ``$3,553'' each place it appears in 
    subsections (o) and (p) and inserting ``$3,775'';
        (16) by striking ``$1,525'' and ``$2,271'' in subsection (r) 
    and inserting ``$1,621'' and ``$2,413'', respectively; and
        (17) by striking ``$2,280'' in subsection (s) and inserting 
    ``$2,422''.
    (b) Special Rule.--The Secretary of Veterans Affairs may authorize 
administratively, consistent with the increases authorized by this 
section, the rates of disability compensation payable to persons within 
the purview of section 10 of Public Law 85-857 who are not in receipt 
of compensation payable pursuant to chapter 11 of title 38, United 
States Code.

SEC. 3. ADDITIONAL COMPENSATION FOR DEPENDENTS.

    Section 1115(1) is amended--
        (1) by striking ``$117'' in clause (A) and inserting ``$124'';
        (2) by striking ``$201'' and ``$61'' in clause (B) and 
    inserting ``$213'' and ``$64'', respectively;
        (3) by striking ``$80'' and ``$61'' in clause (C) and inserting 
    ``$84'' and ``$64'', respectively;
        (4) by striking ``$95'' in clause (D) and inserting ``$100'';
        (5) by striking ``$222'' in clause (E) and inserting ``$234''; 
    and
        (6) by striking ``$186'' in clause (F) and inserting ``$196''.

SEC. 4. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS.

    Section 1162 is amended by striking ``$546'' and inserting 
``$580''.

SEC. 5. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES.

    (a) New Law Rates.--Section 1311(a) is amended--
        (1) by striking ``$881'' in paragraph (1) and inserting 
    ``$935''; and
        (2) by striking ``$191'' in paragraph (2) and inserting 
    ``$202''.
    (b) Old Law Rates.--The table in section 1311(a)(3) is amended to 
read as follows:

  

                                  Monthly                       Monthly
``Pay grade                          rate   Pay grade              rate
    E-1......................        $935       W-4........      $1,119
    E-2......................         935       O-1........         988
    E-3......................         935       O-2........       1,021
    E-4......................         935       O-3........       1,092
    E-5......................         935       O-4........       1,155
    E-6......................         935       O-5........       1,272
    E-7......................         967       O-6........       1,433
    E-8......................       1,021       O-7........       1,549
    E-9......................    1,066\1\       O-8........       1,699
    W-1......................         988       O-9........       1,818
    W-2......................       1,028       O-10.......    1,994\2\
    W-3......................       1,058
 
``\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 1302 of
  this title, the surviving spouse's rate shall be $1,149.
``\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 1302 of this title, the surviving spouse's rate
  shall be $2,139.''.

    (c) Additional DIC for Children.--Section 1311(b) is amended by 
striking ``$222'' and inserting ``$234''.
    (d) Aid and Attendance Allowance.--Section 1311(c) is amended by 
striking ``$222'' and inserting ``$234''.
    (e) Housebound Rate.--Section 1311(d) is amended by striking 
``$107'' and inserting ``$112''.

SEC. 6. DEPENDENCY AND INDEMNITY COMPENSATION FOR CHILDREN.

    (a) DIC for Orphan Children.--Section 1313(a) is amended--
        (1) by striking ``$373'' in paragraph (1) and inserting 
    ``$397'';
        (2) by striking ``$538'' in paragraph (2) and inserting 
    ``$571'';
        (3) by striking ``$699'' in paragraph (3) and inserting 
    ``$742''; and
        (4) by striking ``$699'' and ``$136'' in paragraph (4) and 
    inserting ``$742'' and ``$143'', respectively.
    (b) Supplemental DIC for Disabled Adult Children.--Section 1314 is 
amended--
        (1) by striking ``$222'' in subsection (a) and inserting 
    ``$234'';
        (2) by striking ``$373'' in subsection (b) and inserting 
    ``$397''; and
        (3) by striking ``$188'' in subsection (c) and inserting 
    ``$199''.

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on December 1, 
2001.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Veterans' Compensation Rate Amendments of 2001 - Increases, as of December 1, 2001, the rates of veterans' disability compensation, additional compensation for dependents, the clothing allowance for certain disabled adult children, and dependency and indemnity compensation for surviving spouses and for children.