A bill to amend titles 10 and 38, United States Code, to improve the benefits provided for survivors of deceased members of the Armed Forces, and for other purposes.

SECTION 1. DEATH GRATUITIES PAYABLE WITH RESPECT TO DECEASED MEMBERS OF 
              THE ARMED FORCES.

    (a) Increased Amount of Death Gratuity.--Section 1478(a) of title 
10, United States Code, is amended by striking ``$12,000'' in the first 
sentence and inserting ``$100,000''.
    (b) Additional Death Gratuity Payable to Child of Deceased.--
            (1) Payment at age 21.--Section 1477 of such title is 
        amended by adding at the end the following new subsection:
    ``(e) Additional Death Gratuity for Dependent Children.--(1) If, in 
the case of a death for which a death gratuity is payable under section 
1475 or 1476 of this title, the deceased is survived by one or more 
children described in subsection (b) who are under 18 years of age on 
the date of the death, the Secretary concerned shall pay an additional 
death gratuity to each such child when that child attains 21 years of 
age.
    ``(2) A death gratuity payable to any person under this subsection 
with respect to a death is in addition to any death gratuity that is 
payable to that person under section 1475 or 1476 of this title with 
respect to such death pursuant to subsection (a)(2).''.
            (2) Amount.--
                    (A) Subsection (a) of section 1478 of such title, 
                as amended by subsection (a) of this section, is 
                further amended by inserting after the first sentence 
                the following new sentence: ``The death gratuity 
                payable to a child of a deceased person under section 
                1477(e) of this title shall be $25,000.''.
                    (B) Subsection (c) of such section is amended by 
                striking ``the amount'' and inserting ``each amount''.
            (3) Conforming amendments.--(A) Section 1477(d) of such 
        title is amended by striking ``he receives the death 
        gratuity,'' and inserting ``receiving payment of a death 
        gratuity under section 1475 or 1476 of this title,''.
            (B) Section 1479 of such title is amended--
                            (i) by striking ``immediate''; and
                            (ii) by inserting ``or 1477(e)'' after 
                        ``section 1475''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section and the amendments made by this section shall take 
        effect as of October 1, 2001, and shall apply with respect to 
        deaths occurring on or after such date.
            (2) Exception.--The amendment made by subsection (b)(2)(B) 
        shall take effect as of October 28, 2004, immediately following 
        the enactment of Public Law 108-375.

SEC. 2. INCREASED PERIOD OF CONTINUED TRICARE COVERAGE OF CHILDREN OF 
              MEMBERS OF THE UNIFORMED SERVICES WHO DIE WHILE SERVING 
              ON ACTIVE DUTY FOR A PERIOD OF MORE THAN 30 DAYS.

    (a) Period of Eligibility.--Section 1079(g) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by striking the second sentence and inserting the 
        following:
    ``(2) In addition to any continuation of eligibility for benefits 
under paragraph (1), when a member dies while on active duty for a 
period of more than 30 days, the member's dependents who are receiving 
benefits under a plan covered by subsection (a) shall continue to be 
eligible for such benefits during the three-year period beginning on 
the date of the member's death, except that, in the case of such a 
dependent who is a child of the deceased, the period of continued 
eligibility shall be the longer of the following periods beginning on 
such date:
            ``(A) Three years.
            ``(B) The period ending on the date on which the child 
        attains 21 years of age.
            ``(C) In the case of a child of the deceased who, at 21 
        years of age, is enrolled in a full-time course of study in a 
        secondary school or in a full-time course of study in an 
        institution of higher education approved by the administering 
        Secretary and was, at the time of the member's death, in fact 
        dependent on the member for over one-half of the child's 
        support, the period ending on the earlier of the following 
        dates:
                    ``(i) The date on which the child ceases to pursue 
                such a course of study, as determined by the 
                administering Secretary.
                    ``(ii) The date on which the child attains 23 years 
                of age.
    ``(3) For the purposes of paragraph (2)(C), a child shall be 
treated as being enrolled in a full-time course of study in an 
institution of higher education during any reasonable period of 
transition between the child's completion of a full-time course of 
study in a secondary school and the commencement of an enrollment in a 
full-time course of study in an institution of higher education, as 
determined by the administering Secretary.
    ``(4) No charge may be imposed for any benefits coverage under this 
chapter that is provided for a child for a period of continued 
eligibility under paragraph (2), or for any benefits provided to such 
child during such period under that coverage.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect as of October 1, 2001, and shall apply with 
respect to deaths occurring on or after such date.

SEC. 3. INCREASE AND ENHANCEMENT OF DEPENDENCY AND INDEMNITY 
              COMPENSATION FOR SURVIVING SPOUSES.

    (a) In General.--Subsection (a) of section 1311 of title 38, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``$967'' and inserting 
        ``$1,500'';
            (2) in paragraph (2), by inserting ``or (4)'' after 
        ``paragraph (1)''; and
            (3) by adding at the end the following new paragraph:
    ``(4) In the case of a surviving spouse who remarries, dependency 
and indemnity compensation shall be paid to the surviving spouse at a 
monthly rate equal to 50 percent of the monthly rate otherwise provided 
under paragraph (1) for--
            ``(A) the first 60 months beginning after the date of such 
        remarriage; or
            ``(B) in the case of a surviving spouse with one or more 
        children below the age of 18, each month until the first month 
        beginning after the date on which each such child has attained 
        the age of 18.''.
    (b) Rates for Surviving Spouses With Dependent Children.--Such 
section is further amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection (b):
    ``(b)(1) If there is a surviving spouse with one or more children 
below the age of 18, the dependency and indemnity compensation paid 
monthly to the surviving spouse shall be increased by $750 for each 
such child.
    ``(2)(A) Except as provided in subparagraph (B), the increase in 
dependency and indemnity compensation payable to a surviving spouse 
under paragraph (1) shall cease beginning with the first month 
commencing after the month in which all children of the surviving 
spouse have attained the age of 18.
    ``(B) The cessation under subparagraph (A) of the increase in 
dependency and indemnity compensation payable to a surviving spouse 
under paragraph (1) shall not occur with respect to any child of the 
surviving spouse who, before attaining the age of 18, becomes 
permanently incapable of support.''; and
            (2) by striking subsection (e), as added by section 301(a) 
        of the Veterans Benefits Improvements Act of 2004 (Public Law 
        104-454).
    (c) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect on October 1, 2001, 
and shall apply with respect to months beginning on or after that date.
    (2) The amendment made by subsection (b)(2) shall take effect on 
the date of the enactment of this Act.

SEC. 4. EXPANSION AND ENHANCEMENT OF SURVIVORS' AND DEPENDENTS' 
              EDUCATIONAL ASSISTANCE.

    (a) Termination of Durational Limitation on Use of Educational 
Assistance.--
            (1) Termination of limitation and restatement of continuing 
        requirements.--Subsection (a) of section 3511 of title 38, 
        United States Code, is amended to read as follows:
    ``(a)(1) Notwithstanding any other provision of this chapter or 
chapter 36 of this title, any payment of educational assistance 
described in paragraph (2) shall not be charged against the entitlement 
of any individual under this chapter.
    ``(2) The payment of educational assistance referred to in 
paragraph (1) is the payment of such assistance to an individual for 
pursuit of a course or courses under this chapter if the Secretary 
finds that the individual--
            ``(A) had to discontinue such course pursuit as a result of 
        being ordered to serve on active duty under section 688, 
        12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10; and
            ``(B) failed to receive credit or training time toward 
        completion of the individual's approved educational, 
        professional, or vocational objective as a result of having to 
        discontinue, as described in subparagraph (A), the course 
        pursuit.''.
            (2) Conforming amendments.--(A) The heading of section 3511 
        of such title is amended to read as follows:
``Sec. 3511. Treatment of certain interruptions in pursuit of programs 
              of education''.
            (B) Section 3532(g) of such title, as amended by section 
        106(b)(3) of the Veterans Earn and Learn Act of 2004 (title I 
        of Public Law 108-454), is further amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraph (3) as paragraph 
                (2).
            (C) Section 3541 of such title is amended to read as 
        follows:
``Sec. 3541. Special restorative training
    ``(a) The Secretary may, at the request of an eligible person--
            ``(1) determine whether such person is in need of special 
        restorative training; and
            ``(2) if such need is found to exist, prescribe a course 
        which is suitable to accomplish the purposes of this chapter.
    ``(b) A course of special restorative training under subsection (a) 
may, at the discretion of the Secretary, contain elements that would 
contribute toward an ultimate objective of a program of education.''.
            (D) Section 3695(a)(4) of such title is amended by striking 
        ``35,''.
    (b) Extension of Delimiting Age of Eligibility for Dependents.--
Section 3512(a) of title 38, United States Code, is amended by striking 
``twenty-sixth birthday'' each place it appears and inserting 
``thirtieth birthday''.
    (c) Amount of Educational Assistance.--
            (1) In general.--Section 3532 of title 38, United States 
        Code, is amended to read as follows:
``Sec. 3532. Amount of educational assistance
    ``(a) The aggregate amount of educational assistance to which an 
eligible person is entitled under this chapter is $80,000, as increased 
from time to time under section 3564 of this title.
    ``(b) Within the aggregate amount provided for in subsection (a), 
educational assistance under this chapter may be paid for any purpose, 
and in any amount, as follows:
            ``(1) A program of education consisting of institutional 
        courses.
            ``(2) A full-time program of education that consists of 
        institutional courses and alternate phases of training in a 
        business or industrial establishment with the training in the 
        business or industrial establishment being strictly 
        supplemental to the institutional portion.
            ``(3) A farm cooperative program consisting of 
        institutional agricultural courses prescheduled to fall within 
        forty-four weeks of any period of twelve consecutive months 
        that is pursued by an eligible person who is concurrently 
        engaged in agricultural employment which is relevant to such 
        institutional agricultural courses as determined under 
        standards prescribed by the Secretary.
            ``(4) A course or courses or other program of special 
        educational assistance as provided in section 3491(a) of this 
        title.
            ``(5) A program of apprenticeship or other on-job training 
        pursued in a State as provided in section 3687(a) of this 
        title.
            ``(6) In the case of an eligible spouse or surviving 
        spouse, a program of education exclusively by correspondence as 
        provided in section 3686 of this title.
            ``(7) A special training allowance for special restorative 
        training as provided in section 3542 of this title.
    ``(c) If a program of education is pursued by an eligible person at 
an institution located in the Republic of the Philippines, any 
educational assistance for such person under this chapter shall be paid 
at the rate of $0.50 for each dollar.
    ``(d)(1) Subject to paragraph (2), the amount of educational 
assistance payable under this chapter for a licensing or certification 
test described in section 3501(a)(5) of this title is the lesser of 
$2,000 or the fee charged for the test.
    ``(2) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individual's 
available entitlement under this chapter.''.
            (2) Conforming amendments.--(A) Section 3533 of such title 
        is amended to read as follows:
``Sec. 3533. Tutorial assistance
    ``An eligible person shall, without any charge to any entitlement 
of such person to educational assistance under section 3532(a) of this 
title be entitled to the benefits provided an eligible veteran under 
section 3492 of this title.''.
            (B) Section 3534 of such title is repealed.
            (C) Section 3542 of such title is amended--
                    (i) in subsection (a), by striking ``computed at 
                the basic rate'' and all that follows through the end 
                of the subsection and inserting a period; and
                    (ii) in subsection (b), by striking ``an 
                educational assistance allowance'' and inserting 
                ``educational assistance''.
            (D) Section 3543(c) of such title is amended--
                    (i) in paragraph (1), by adding ``and'' at the end;
                    (ii) by striking paragraph (2); and
                    (iii) by redesignating paragraph (3) as paragraph 
                (2).
            (E) Section 3564 of such title is amended by striking 
        ``rates payable under sections 3532, 3534(b), and 3542(a)'' and 
        inserting ``aggregate amount of educational assistance payable 
        under section 3532''.
            (F) Paragraph (1) of section 3565(b) of such title is 
        amended to read as follows:
            ``(1) educational assistance payable under section 3532 of 
        this title, including the special training allowance referred 
        to in subsection (b)(7) of such section, shall be paid at the 
        rate of $0.50 for each dollar; and''.
            (G) Section 3687 of such title is amended--
                    (i) in subsection (a)--
                            (I) in the matter preceding paragraph (1), 
                        by striking ``or an eligible person (as defined 
                        in section 3501(a) of this title)''; and
                            (II) in the flush matter following 
                        paragraph (2), by striking ``chapters 34 and 
                        35'' and inserting ``chapter 34'';
                    (ii) in subsection (c), by striking ``chapters 34 
                and 35'' and inserting ``chapter 34''; and
                    (iii) in subsection (e), as added by section 102(a) 
                of the Veterans Earn and Learn Act of 2004 (title I of 
                Public Law 108-454), by striking paragraph (3) and 
                inserting the following new paragraph (3):
    ``(3) In this subsection, the term `individual' means an eligible 
veteran who is entitled to monthly educational assistance allowances 
payable under section 3015(e) of this title.''.
    (d) Other Conforming Amendments.--(1) Section 3524 of title 38, 
United States Code, is amended by striking ``allowance'' each place it 
appears.
    (2)(A) Section 3531 of such title is amended--
            (i) in subsection (a), by striking ``an educational 
        assistance allowance'' and inserting ``educational 
        assistance''; and
            (ii) in subsection (b), by striking ``allowance''.
    (B) The heading of such section is amended by striking 
``allowance''.
    (3) Section 3537(a) of such title is amended by striking 
``additional''.
    (e) Clerical Amendments.--The table of sections at the beginning of 
chapter 35 of title 38, United States Code, is amended--
            (1) by striking the item relating to section 3511 and 
        inserting the following new item:

``3511. Treatment of certain interruptions in pursuit of programs of 
                            education.'';
            (2) by striking the items relating to section 3531, 3532, 
        and 3533 and inserting the following new items:

``3531. Educational assistance.
``3532. Amount of educational assistance.
``3533. Tutorial assistance.'';
            (3) by striking the item relating to section 3534; and
            (4) by striking the item relating to section 3541 and 
        inserting the following new item:

``3541. Special restorative training.''.
    (f) Effective Dates.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect on October 1, 2001.
    (2) The amendments made by subsections (a)(2)(B) and (c)(2)(G)(iii) 
shall take effect on the date of the enactment of this Act.
    (3) Notwithstanding the effective date under paragraph (1) of the 
amendment to section 3564 of title 38, United States Code, made by 
subsection (c)(2)(E), the Secretary of Veterans Affairs shall make the 
first increase in the aggregate amount of educational assistance under 
section 3532 of such title as required by such section 3564 (as so 
amended) for fiscal year 2006.

Summary: Increases from $12,000 to $100,000 the death gratuity payable to survivors of members of the Armed Forces who die while on active duty or inactive duty training. Provides an additional gratuity of $25,000 to any child of such member under 18 years old at the time of the member's death, payable when such child attains 21.

Continues TRICARE (a Department of Defense managed health care program) eligibility for the dependents of a member who dies while serving on active duty of more than 30 days for a three-year period after the member's death, with a further conditional extension in the case of a dependent child.

Terminates a 45-month limit on the use of survivors' and dependents' educational assistance.

Authorizes the Secretary of Veterans Affairs to provide special restorative training to certain individuals.

Increases the amount of basic educational assistance for veterans' survivors and dependents pursuing certain types of institutional education. Authorizes the provision of tutorial assistance to such individuals without charge to their educational assistance entitlement.