An Act to amend title 38, United States Code, to improve the housing benefits programs of the Veterans' Administration, to authorize the Administrator of Veterans' Affairs to pay an allowance to a State for expenses incurred in the burial of eligible veterans in cemeteries owned and operated by or for such State solely for the interment of veterans, to authorize a program of grant assistance to States for the establishment, expansion, and improvement of State veterans' cemeteries, and for other purposes.
PL 95-476 (H.R.12028), enacted 10/18/1978

PUBLIC LAW 95-476—OCT. 18, 1978 
92 STAT. 1497 
Public Law 95-476 
95th Congress 
An Act 
To amend title 38, United States Code, to improve the iiousing benefits programs 
of tiie Veterans' Administration, to authorize the Administrator of Veterans' 
Affairs to pay an allowance to a State for expenses incurred in the burial of 
eligible veterans in cemeteries owned and operated by or for such State solely 
for the interment of veterans, to authorize a program of grant assistance to 
States for the establishment, expansion, and improvement of State veterans' 
cemeteries, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) this Act 
may be cited as the "Veterans' Housing Benefits Act of 1978". 
(b) 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. 
TITLE I—VETERANS' HOUSING BENEFITS 
Oct. 18, 1978 
[H.R. 12028] 
Veterans' 
Housing Benefits 
Act of 1978. 
38 u s e 101 note. 
ASSISTANCE FOR SPECIALLY ADAPTED HOUSING 
FOR CERTAIN DISABLED VETERANS 
S E C . 101. Section 802 is amended by striking out "$25,000" and 
38 USC 802. 
inserting in lieu thereof "$30,000". 
BASIC ENTITLEMENT FOR HOME, CONDOMINIUM, AND 
MOBILE HOME LOANS 
38 USC 1802. 
SEC. 102. (a) Subsection (a) of section 1802 is amended— 
(1) in the first sentence, by striking out "World War II or the 
Korean conflict" both places it appears and inserting in lieu thereof 
"World War II, the Korean conflict, or the Vietnam era"; and 
(2) in the second sentence, by striking out "Entitlement" and all 
that follows through "World War II, has" and inserting in lieu 
thereof "In the case of any veteran who served on active duty 
during two or more of the periods specified in the preceding sen-
tence, or in section 1818 of this title, for which eligibility for the 38 USC 1818. 
benefits under this chapter may be granted, entitlement derived 
from service during the most recent such period (1) shall cancel 
any unused entitlement derived from service during any earlier 
such period, and (2) shall be reduced by the amount by whicli 
entitlement from service during any earlier such period has", 
(b) Subsection (b) of such section is amended— 
(1) in the fii-sit sentence, by inserting "(A)" after "(1)", 
redesignating clause (2) as subclause (B), and redesignating 
clause (3) as clause (2); and 
(2) in the second sentence, by striking out "clauses (1) and (2) 
above" and inserting in lieu thereof "clause (1) of the preceding 
sentence". 
38 USC 1802. 
92 STAT. 1498 
PUBLIC LAW 95-476—OCT. 18, 1978 
BASIC LOAN GUARANTY PROGRAM 
38 use 1803. 
SEC. 103. (a) Subsection (a)(1) of section 1803 is amended by 
striking out "World War II or Korean conflict veteran" and inserting 
in lieu thereof "veteran eligible for benefits under this chapter", 
(b) Subsection (c) of such section is amended— 
(1) by adding ait the end of paragraph (1) the following new 
' '' 
sentence: "In establishing rates of interest under this paragraph 
for one or more of the purposes described in clauses (4) and (7) 
38 use 1810. 
of section 1810(a) of this title, the Administrator may establish a 
rate or rates higher than the rate specified for other purposes 
under such section, but any such rate may not exceed such rate as 
the Administrator may from time to time find the loan market 
demands for loans for such purposes."; and 
- 
' 
(2) by striking out "section 1810(a) (4)" in paragraph_(3) (B) 
and inserting in lieu thereof "clauses (4) and (7) of section 1810 
(a) of this title". 
PURPOSES FOR WHICH HOME LOANS MAY BE GUARANTEED 
38 use 1810. 
SEC. 104. Section 1810 is amended— 
(1) by striking out clause (6) in subsection (a) and inserting 
in lieu thereof the following new clause: 
"(6) To purchase a one-family residential unit in a condo-
minium housing development or project, if such development or 
project is approved by the Administrator under criteria which 
. 
the Administrator shall prescribe in regulations."; 
(2) by inserting after such clause the following new clause: 
"(7) To improve a dwelling or farm residence owned by the 
veteran and occupied by the veteran as the veteran's home through 
the installation of a solar heating system, a solar heating and 
cooling system, or a combined solar heating and cooling system 
or through the application of a residential energy conservation 
measure."; and 
Definitions. 
(3) by adding at the end of such section the following new 
subsection: 
"(d) For the purposes of subsection (a)(7) of this section: 
,. ; 
"(1) The term 'solar heating' has the meaning given such term 
in section 3(1) of the Solar Heating and Cooling Demonstration 
, 
Act of 1974 (42 U.S.C. 5502(1)) and, in addition, includes a pas-
sive system based on conductive, convective, or radiant energy 
• 
transfer. 
"(2) The terms 'solar heating and cooling' and 'combined solar 
heating and cooling' have the meaning given such terms in section 
3 (2) of the Solar Heating and Cooling Demonstration Act of 1974 
(42 U.S.C. 5502(2)) and, in addition, include a passive system 
based on conductive, convective, or radiant energy transfer. 
"(3) The term 'passive system' includes window and skylight 
glazing, thermal floors, walls, and roofs, movable insulation panels 
(when in conjunction with glazing), portions of a residential 
structure that serve as solar furnaces so as to add heat to the struc-
ture, double-pane window insulation, and such other energy-
related components as are determined by the Administrator to 
enhance the natural transfer of energy for the purpose of heating 
or heating and cooling a residence. 
PUBLIC LAW 95-476—OCT. 18, 1978 
92 STAT. 1499 
"(4) The term 'residential energy conservation measure' 
means— 
"(A) caulking and weatherstripping of all exterior doors 
and windows; 
"(B) furnace efficiency modifications limited to— 
" (i) replacement burners, boilers, or furnaces designed 
to reduce the firing rate or to achieve a reduction in the 
amount of fuel consumed as a result of increased com-
bustion efficiency, 
* 
"(ii) devices for modifying flue openings which will 
increase the efficiency of the heating system, and 
"(iii) electrical or mechanical furnace ignition systems 
which replace standing gas pilot lights; 
"(C) clock thermostats; 
"(D) ceiling, attic, wall, and floor insulation; 
" (E) water heater insulation; 
" (F) storm windows and doors; 
"(G) heat pumps; and 
"(H) such other energy conservation measures as the 
Administrator may identify for the purposes of this clause.". 
AMOUNT o r 
VETERANS' ADMINISTRATION LOAN GUARANTIES AND DIRECT 
LOANS FOR PURCHASE OR CONSTRUCTION OF HOMES 
SEC. 105. (a) Section 1810(c) is amended by striking out "$17,500" 38 USC 1810. 
and inserting in lieu thereof "$25,000". 
(b)(1) Subparagraph (A) of section 1811(d)(2) is amended by 38 USC 1811. 
striking out "$17,500" both places it appears and inserting in lieu 
thereof "$25,000". 
(2) Subparagraph (B) of such section is amended by striking out 
"specified by the Administrator" and all that follows in such 
subparagraph and inserting in lieu thereof "that bears the same ratio 
to $33,000 as the amount of guaranty to which the veteran is entitled 
under such section at the time the loan is made bears to $17,500. The 
amount of the guaranty entitlement under section 1810(c) of this title 
of any veteran who is granted a loan under this section, or who before 
the date of the enactment of the Veterans' Housing Benefits Act of 
1978 was granted a loan imder this section, shall be charged with the 
amount that bears the same ratio to $17,500 as the amount of the loan 
bears to $33,000.". 
ELIGIBILITY FOR HOME LOANS FOR VETERANS WHO SERVED AFTER 
••:}'•••< 
JANUARY 31, 1955 
SEC. 106. (a) Section 1818 is amended— 
38 USC 1818. 
(1) by inserting "and prior to August 5, 1964, or after May 7, 
1975," in subsection (a) after "January 31,1955,"; 
(2) by striking out "active duty after such date" in subsection 
(a) (3) and inserting in lieu thereof "such active duty"; 
(3) by inserting "the provisions of section 1802(a) of this 38 USC 1802. 
title and" in subsection (a) after "subject to"; 
(4) by striking out subsection (b) and redesignating subsection 
(c) as subsection (b); and 
(5) by striking out "Veterans who serve after .Tanuary 31, 
1955" in the catchline and inserting in lieu thereof "Service after 
January 31,1955, and prior to August 5,1964, or after May 7, 
1975". 
92 STAT. 1500 
PUBLIC LAW 95-476—OCT. 18, 1978 
38 use 1818. 
(b) The item relating to section 1818 in the table of sections at tlie 
beginning of clrapter 37 is amended to read as follows: 
"1818. Service after January 31, 1955, and prior to August 5, 1964, or after 
May 7,1975.". 
MOBILE HOME AND MOBILE HOME LOT LOANS 
38 use 1819. 
SEC. 107. (a) Subsections (a) and (b) of section 1819 are amended 
to read as follows: 
"(a) (1) Notwithstanding any other provision of this chapter, any 
loan to a veteran eligible for the benefits of this chapter, if made pursu-
ant to the provisions of this section, may be guaranteed if such loan is 
for one of the following purposes: 
" (A) To purchase a lot on which to place a mobile home already 
owned bv the veteran. 
"(B) To purchase a single-wide mobile home. 
"(C) To purchase a single-wide mobile home and a lot on which 
to place such home. 
" (D) To purchase a double-wide mobile home. 
"(E) To purchase a double-wide mobile home and a lot on which 
to place such home. 
"(2) A loan for any of the purposes described in paragiaph (1) of 
this subsection may include an amount determined by the Administra-
tor to be appropriate to cover the cost of necessary preparation of a lot 
; 
already owned or to be acquired by the veteran, including the costs of 
installing utility connections and sanitary facilities, of paving, and of 
constructing a suitable pad for the mobile home. 
" (8) Any loan made for the purposes described in clause (C) or (E) 
of paragraph (1) of this subsection shall be considered as part of one 
loan. The transaction may be evidenced by a single loan instrument or 
by separate loan instruments for (A) that portion of the loan which 
finances the purchase of the mobile home, and (B) that portion of the 
loan which finances the purchase of the lot and the necessary prepara-
tion of such lot. 
"(b) (1) Use of entitlement under this section for the purchase of a 
mobile home unit shall preclude the use of remaining entitlement for 
the purchase of an additional mobile home unit until the unit which 
se/cured the loan has been disposed of by the vetemn or has been 
destroyed by fire or other natural hazard. 
" (2) The Administrator shall restore entitlement to all loan guar-
anty benefits under this chapter for the veteran when the conditions 
38 use 1802. 
prescribed in section 1802 (b) of this title have been met.". 
(b) (1) Paragraph (1) of siibsection (c) of such section is amended 
to read as follows: 
•' 
" (1) Ix)ans for any of the purposes authorized by subsection (a) of 
this section shall be submitted to the Administrator for approval prior 
to the closing of the loan, except that the Administrator may exempt 
any lender of a class listed in section 1802 (d) of this title from compli-
ance with such prior approval requirement if the Administrator deter-
mines that the experience of such lender or class of lenders in mobile 
home financing warrants such exemption.". 
(2) Paragraph (3) of such subsection is amended by striking out 
the first sentence and inserting in lieu thereof the following new 
sentences: "The Administrator's guaranty may not exceed the lesser 
of 50 per centum of the loan amount or the maximum loan guaranty 
entitlement available, not to exceed $17,500. Payment of a claim under 
PUBLIC LAW 95-476—OCT. 18, 1978 
92 STAT. 1501 
such guaranty shall be made only after liquidation of the security for 
the loan and the filing of an accounting with the Administrator.". 
(3 ) Such subsection is further amended by adding at the end thereof 
the following new paragraph: 
"(4) The amount of guaranty entitlement available to a veteran 
under this section shall not be more than $17,500, less the amount of any 
such entitlement as may have been used under this section. Use of 
entitlement under section 1810 or 1811 of this title shall reduce entitle- 38 USC 1810, 
ment available for use under this section to the same extent that 
^^^1-
entitlement available under such section 1810 is reduced below 
$17,500.". 
(c) Subsection (d) of such section is amended to read as follows: 38 USC 1802. 
"(d)(1) The maturity of any loan guaranteed under this section 
shall not be more than— 
"(A) fifteen years and thirty-two days, in the case of a loan 
for the purchase of— 
"(i) alot; 
" (ii) a single-wide mobile home; or 
"(iii) a single-wide mobile home and alot; or 
* 
"(B) twenty years and thirty-two days, in the case of a loan 
for the purchase of— 
"(i) a double-wide mobile home; or 
" (ii) a double-wide mobile home and a lot. 
"(2) Nothing in paragraph (1) of this subsection shall preclude 
the Administrator, under regulations which the Administrator shall 
prescribe, from consenting to necessary advances for the protection 
of the security or the holder's lien, to a reasonable extension of the 
term of such loan, or to a reasonable reamortization of such loan.". 
(d) Clause (4) of subsection (e) of such section is amended to read 
as follows: 
"(4) the amount of the loan to be paid by the veteran is not 
in excess of the amount determined to be reasonable, based upon— 
"(A) with respect to any portion of the loan to purchase 
a new mobile home, such cost factors as the Administrator 
considers proper to take into account; 
"(B) with respect to any portion of the loan to purchase 
a used mobile home, the reasonable value of the property, as 
determined by the Administrator; 
"(C) with respect to any portion of the loan to purchase 
a lot, the reasonable value of such lot, as determined by the 
Administrator; and 
"(D) with respect to any portion of the loan to cover the 
cost of necessary site preparation, an appropriate amount, 
as determined by the Administrator;". 
(e) Such section is further amended by striking out subsection (g) 
and by redesignating subsections (h), (i), (j), (k), (1), (m), and 
(n) as subsections (g), (h), (i), (j), (k), (1), and (m). respectively. 
(f) Subsection (h) of such section (as redesignated by subsection 
(e) of this section) is amended (1) by inserting "(1)" before "No 
loan", (2) by striking out the third sentence of such subsection, and 
(3) by addin<T at the end thereof the following new paragraph: 
" (2) (A) For the purpose of assuring compliance with the standards Inspection, 
prescribed under paragraph (1) of this subsection, the Administrator 
shall from time to time inspect the manufacturing process of manu-
facturers of mobile homes sold to veterans utilizing assistance under 
this chapter. For the purpose stated in the preceding sentence and for 
92 STAT. 1502 
PUBLIC LAW 95-476—OCT. 18, 1978 
the additional purpose of monitoring safety factors involved in the 
installation of mobile homes purchased through the utilization of 
assistance under this chapter, the Administrator shall from time to 
time conduct random onsite insj)ections of mobile homes purchased 
through the utilization of such assistance. 
Delegation to 
"(B) The Administrator may, with the agreement of the Secretary 
HUD Secretary. 
^f Housing and Urban Development, delegate to the Secretary of 
Housing and Urban Development the duty of the Administrator uiider 
subparagraph (A) of this paraigraph to inspect the manufacturing 
process of manufacturers of mobile homes, but any such delegation 
shall be subject to an agreement that the Secretaiy of Housing and 
1 ' 
Urban Development, upon the request of the Administrator, shall 
promptly provide the Administrator with the complete results of any 
inspection made by the Secretary pursuant to such delegation. The 
Administrator shall have the right to withdraw any delegation under 
the preceding sentcn^'o at any time and in whole or in part."'. 
(g)(1) Subsections (i), (j), and (1) of such section (as redesig-
nated by subsection (e) of this section) are amended by striking out 
"subsection (i)" each place it appears and inserting in lieu thereof 
"subsection (h)". 
(2) Subsection (1) of such section (as redesignated by subsection 
(e) of this section) is amended by striking out "subsection (j)" and 
inserting in lieu thereof "subsection (i)". 
38 use 1802 
note. 
EFFECTIVE DATES 
SEC. 108. (a) Except as provided in subsection (b) of this section, 
the amendments made by this title shall take effect on October 1,1978. 
(b) The amendment made by clause (1) of section 104 of this title 
shall take effect on July 1, 1979, except with respect to the authority 
to prescribe regulations for the implementation of such amendment, 
which shall be effective on the date of the enactment of this Act. 
TITLE II—MISCELLANEOITS PKOVISIONS 
38 use 1798. 
Report to 
congressional 
committees. 
EDUCATION LOAN PROGRAM ELIGIBILITY AND REPORTS ON DEFAULT 
EXPERIENCE 
SEC. 201. Section 1798 is amended— 
(1) by inserting "and the criteria established under subsection 
(g) of this section" before the period at the end of subsection (a) ; 
(2) in subsection (c) — 
(A) by striking out "and" at the end of clause (1) ; 
(B) by striking out the period at the end of clause (2) and 
inserting in lieu thereof a semicolon and "and"; and 
(C) by inserting after clause (2) the following new clause: 
"(3) satisfies any criteria established under subsection (g) of 
this section."; 
(3) in subsection (d)(1) — 
(A) by inserting "(A)" before "over"; and 
(B) by inserting a comma and "or (B) over such shorter 
period as the Administrator may have prescribed under sub-
section (g) of this section" after "such date"; 
(4) by striking out paragraph (3) of subsection (e) and 
inserting in lieu thereof the following: 
"(3) The Administrator shall submit to the appropriate committees 
of the Congress not later than December 31 of each year a report on the 
PUBLIC LAW 95-476—OCT. 18, 1978 
92 STAT. 1503 
current results of the continuing review required by subsection (g) (1) 
of this section to be made regarding the default experience with respect 
to loans made under this section and any steps being taken to reduce 
default rates on such loans. Such report shall include in maximum 
feasible detail— 
" (A) data regarding the cumulative default experience, and the 
default experience during the preceding fiscal year, with respect 
to such loans; 
" ( B ) data regarding the default experience and default rate 
at each educational institution (i) with respect to loans made 
under this section in connection with accelerated payments under 
section 1682A of this title, and (ii) with respect to other loans 38 USC 1682A. 
made under this section; and 
"(C) comparisons of the collective default experience and 
default rates with respect to such loans at all such institutions to 
the default experience and default rates with respect to such 
loans at each such institution."; 
(5) by striking out "1701(1)" in subsection (f) (3) and insert-
ing in lieu thereof "1701(a)(1)"; and 
(6) by adding after subsection (f) the following new sub-
section : 
"(g) (1) The Administrator shall conduct, on a continuing basis, a 
review of the default experience wuth respect to loans made under this 
section. 
"(2) (A) To ensure that loans are made under this section on the Regulations, 
basis of financial need directly related to the costs of education, the 
Administrator may, by regulation, establish (i) criteria for eligibility 
for such loans, in addition to the criteria and requirements prescribed 
by subsections (c) and (d) of this section, in order to limit eligibility 
for such loans to eligible veterans and eligible persons attending 
educational institutions with relatively high rates of tuition and fees, 
and (ii) criteria under which the Administrator may prescribe 
a repayment perod for certain types of loans made under this section 
that is shorter than the repayment period otherwise applicable under 
subsection ( d ) ( 1 ) ( A ) of this section. Criteria established by the 
Administrator under clause (i) of the preceding sentence may include 
a minimum amount of tuition and fees that an eligible veteran or eligi-
ble person may pay in order to be eligible for such a loan (except 
that any such criterion shall not apply with respect to a loan for 
which the veteran is eligible as a result of an extension of the period 
of eligibility of such veteran for loans under this section provided for 
by section 1662 (a)(2) of this title). 
38 USC 1662. 
" ( B ) In prescribing regulations under subparagraph (A)" of this 
paragraph, the Administrator shall take into consideration informa-
tion developed in the course of the review required by paragraph 
(1) of this subsection. 
"(C) Regulations may be prescribed under subparagraph (A) of 
this paragraph only after opportunity has been afforded for public 
comment thereon.". 
BUBIAL BENEFITS 
38 USC 903. 
SEC. 202. (a) Subsection (b) of section 903 is amended to read as 
follows: 
"(b) In addition to the benefits provided for under section 902 of 38 USC 902. 
this title and subsection (a) of this section, in the case of a veteran 
who is eligible for a burial allowance under such section 902, or under 
92 STAT. 1504 
PUBLIC LAW 95-476—OCT. 18, 1978 
38 use 1008. 
Grants. 
Appropriation 
authorization. 
such subsection, and wlio is not buried in a national cemetery or other 
cemetery under the jurisdiction of the United States— 
"(1) if such veteran is buried (without charge for the cost of 
a plot or interment) in a cemetery, or a section of a cemetery, 
that (A) is used solely for the interment of persons eligible for 
burial in a national cemetery, and (B) is owned by a State or by 
an agency or political subdivision of a State, the Adminis-
trator shall pay to such State, agency, or political subdivision the 
sum of $150 as a plot or interment allowance for such veteran; and 
"(2) if such veteran is buried in a cemetery, or a section of a 
cemetery, other than as described in clause (1) of this subsection, 
the Administrator shall pay a sum not exceeding $150 as a plot or 
interment allowance to such person as the Administrator pre-
scribes, except that if any part of the plot or interment costs of 
a burial to which this clause applies has been paid or assumed by 
a State, an agency or political subdivision of a State, or a former 
employer of the deceased veteran, no claim for such allowance 
shall be allowed for more than the difference between the entire 
amount of the expenses incurred and the amount paid or assumed 
by any or all of the foregoing entities.", 
(b) (1) Chapter 24 is amended by adding at the end thereof the 
following new section: 
*
*
§ 1008. Aid to States for establishment, expansion, and improve-
ment of veterans* cemeteries 
"(a) (1) Subject to subsection (b) of this section, the Administrator 
may make grants to any State to assist such State in establishing, 
expanding, or improving veterans' cemeteries owned by such State. 
Any such grant may be made only upon submission of an application 
to the Administrator in such form and manner, and containing such 
information, as the Administrator may require. 
"(2) There is authorized to be appropriated $5,000,000 for fiscal 
year 1980 and for each of the four succeeding fiscal years for the pur-
pose of making grants under paragraph (1) of this subsection. 
"(b) Grants under this section shall be subject to the following 
conditions: 
"(1) No State may receive grants under this section in any 
fiscal year in a total amount in excess of 20 per centum of the total 
amount appropriated for such grants for such fiscal year. 
" (2) The amount of any grant under this section may not exceed 
an amount equal to 50 per centum of the total of the value of th-^ 
land to be acquired or dedicated for the cemetery and the cost 
of the improvements to be made on such land, with the remaining 
amount to be contributed by the State receiving the grant. 
" (3) If at the time of a grant under this section the State receiv-
ing the grant dedicates for the purposes of the cemetery involved 
land already owned by the State, the value of such land may be 
considered in determining the amount of the State's contribution 
under paragraph (2) of this subsection, but the value of such land 
may not be used for more than an amount equal to 50 per ceiitum 
of the amount of such contribution and may not be used as part of 
such State's contribution for any subsequent grant under this 
section. 
" (4) If a State that has received a grant under this section to 
establish, expand, or improve a veterans' cemetery ceases to own 
such cemetery, ceases to operate such cemetery as a veterans' cem-
PUBLIC LAW 95-476—OCT. 18, 1978 
92 STAT. 1505 
etery, or uses any part of the funds provided through such grant 
for a purpose other than that for which the gi-ant was made, the 
United States shall be entitled to recover from such State the 
total of all grants made under this section to such State in connec-
tion with such cemetery. 
"(c) (1) In addition to the conditions specified in subsection (b) of 
this section, any grant to a State under this section to assist such 
State in establishing a veterans' cemetery shall be made on the condi-
tion that such cemetery shall conform to such standards and guide-
lines relating to site selection, planning, and construction as the 
Administrator may by regulation prescribe. In prescribing regulations 
for the purposes of the preceding sentence, the Administrator shall 
take into account the standards and guidelines for site selection, plan-
ning, and construction that are applicable to cemeteries in the National 
Cemetery System, including those provided in subsections (b), (c), 
and (d) of section 1004 of this title. 
38 USC 1004. 
"(2) The Administrator may by regulation prescribe such addi-
tional terms and conditions for grants under this section as the Admin-
istrator considers appropriate. 
"(d) Sums appropriated under subsection (a) of this section shall 
remain available until the end of the second fiscal year following the 
fiscal 3^ear for which they are appropriated. If all funds from a grant 
under this section have not been utilized by a State for the purpose for 
which the grant was made within three years after such grant is made, 
the United States shall be entitled to recover any such unused grant 
funds from such State.". 
(2) The table of sections at the beginning of chapter 24 is amended 
by adding at the end thereof the following new item: 
"1008. Aid to states for establishment, expansion, and improvement of veterans' 
cemeteries.". 
HEADSTONES AND MARKERS 
SEC, 203. (a) Section 906 is amended by adding at the end thereof 38 USC 906. 
the following new subsections: 
"(c) A headstone or marker furnished under subsection (a) or 
(b) of this section may be of any material, including but not limited 
to marble, granite, bronze, or slate, requested by the person entitled to 
request such headstone or marker if the material requested is deter-
mined by the Administrator (1) to be cost effective, and (2) in a 
case in which the headstone or marker is to be placed in a national 
cemetery, to be aesthetically compatible with the area of the cemetery 
in which it is to be placed. 
"(d) In lieu of furnishing a headstone or marker under subsection 
(a)(2) or (b) of this section, the Administrator, in the Administra-
tor's discretion, liaving due regard for the circumstances in each case, 
may reimburse the person entitled to request such headstone or marker 
for the actual costs incurred by or on behalf of such person in 
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 deceased individual. Eeimbursement 
under the preceding sentence may be made only upon the request of 
the person entitled to request the headstone or marker and may not 
be made in an amount in excess of the average actual cost, as deter-
mined by the Administrator, of headstones and markers furnished 
under subsections (a) and (b) of this section.". 
39-194 O—80—pt. 2 
15 : QL3 
92 STAT. 1506 
PUBLIC LAW 95-476—OCT. 18, 1978 
38 use 902. 
(b) Section 902 is amended— 
(1) by striking out "in his discretion" in subsection (a) and 
inserting in lieu thereof "in the Adminstrator's discretion"; 
(2) by striking out "as he prescribes" in subsection (a) and 
inserting in lieu thereof "as the Administrator prescribes"; and 
(3) by striking out "his death" in subsection (b) and inserting 
in lieu thereof "the death of such veteran". 
TECHNICAL AMENDMENTS TO LAW NAMING A CERTAIN 
V E T E R A N S ' ADMINISTRATION HOSPITAL 
Ante, p. 518. 
SEC. 204. Section 203 of Public Law 95^353 is amended— 
(1) by striking out "designed" in the first sentence and insert-
ing in lieu thereof "designated"; and 
(2) by inserting "map, record," in the second sentence after 
"document,". 
EFFECTIVE DATES 
38 use903 note. 
SEO. 205. (a) Except as provided in subsection (b), the amendments 
made by this title shall take effect on the date of the enactment of this 
Act. 
(b) The amendment made by section 202(a) of this title shall take 
effect on October 1,1978. 
Approved October 18, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1332 (Coram, on Veterans' Affairs). 
SENATE REPORT No. 95-1055 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, VoL 124 (1978): 
July 17, considered and passed House. 
Aug. 7, considered and passed Senate, amended. 
; 
Sept. 28, House agreed to Senate amendents with amendments. 
Oct. 2, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 14, No. 42: 
Oct. 18, Presidential statement.