[House Report 119-339]
[From the U.S. Government Publishing Office]


119th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                              { 119-339

=======================================================================



 
               ERNEST PELTZ ACCRUED VETERANS BENEFITS ACT

                            ----------------
                            
October 8, 2025.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                            ----------------
                                
           Mr. Bost, from the Committee on Veterans' Affairs,
                         submitted the following


                              R E P O R T

                        [To accompany H.R. 3123]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3123) to amend title 38, United States Code, to 
make certain improvements to laws relating to the payment of 
certain benefits administered by the Secretary of Veterans 
Affairs that are affected by death, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Subcommittee Consideration.......................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     6
Budget Authority and Congressional Budget Office Estimate........     6
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Statement on Duplication of Federal Programs.....................     7
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill as Reported.............     8

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Ernest Peltz Accrued Veterans Benefits 
Act''.

SEC. 2. PAYMENT BY SECRETARY OF VETERANS AFFAIRS OF PENSION AFTER DEATH 
          F A VETERAN IN CERTAIN CIRCUMSTANCES.

  (a) In General.--Chapter 51 of title 38, United States Code, is 
amended by inserting, after section 5121A, the following new section:

``Sec. 5121B. Payment of pension after death of a veteran in certain 
                circumstances

  ``(a) In General.--Subject to subsection (b), if the Secretary issues 
a decision awarding entitlement to a pension to a veteran before the 
death of such veteran, and the Secretary issues payment of such pension 
after the veteran dies, such pension that was due and unpaid at the 
time of the veteran's death shall be paid to the first living person or 
entity listed below:
          ``(1) The veteran's spouse.
          ``(2) The veteran's children (in equal shares).
          ``(3) The veteran's dependent parents (in equal shares).
          ``(4) The estate of the deceased veteran unless the estate 
        will escheat.
  ``(b) Limitation.--In a case described in subsection (a), if no 
application is filed under section 5121 of this title during the one-
year period following the death of the veteran, the pension described 
in such subsection shall be paid to the estate of the deceased veteran 
unless the estate will escheat.''.
  (b) Technical and Conforming Amendments.--
          (1) Conforming amendment.--Section 5121(a) of such title is 
        amended, in the matter preceding paragraph (1), by inserting 
        ``section 5121B of this title, or'' before ``sections 3329 and 
        3330''.
          (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting, after the 
        item relating to section 5121A, the following new item:

``5121B. Payment of pension after death of a veteran in certain 
circumstances.''.

  (c) Effective Date.--The amendments made by this section shall apply 
with respect to the death of a veteran that occurs on or after the date 
of the enactment of this Act.

SEC. 3. EXTENSION OF CERTAIN LIMITS ON PAYMENTS OF PENSION.

  Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``November 30, 2031'' and inserting ``December 31, 2031''.

                          Purpose and Summary

    H.R. 3123, the ``Ernest Peltz Accrued Veterans Benefits 
Act,'' was introduced by Representative Elise Stefanik of New 
York on April 30, 2025. This bill, as amended, would ensure 
that if a veteran's application for a Department of Veterans 
Affairs (VA) pension is granted, but that veteran passes away 
before VA issues the first payment, the unpaid benefit will be 
paid out in the following order to the: surviving spouse, 
children, dependent parents, or deceased's estate.

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``Ernest Peltz Accrued 
Veterans Benefits Act.''

Section 2: Payment by Secretary of Veterans Affairs of Pension After 
        Death of a Veteran in Certain Circumstances

    In the rare instance that a veteran is awarded a VA pension 
but passes away before that first payment is delivered, VA is 
unable to reissue those accrued benefits to the surviving 
family under current law. Despite its rarity, these instances 
do occur, and it is the intent of the Committee to remedy this 
situation to prevent undue strain and provide support for the 
grieving family in their time of mourning.
    The namesake of the bill, Mr. Ernest Peltz, was a World War 
II Navy Veteran who lived in New York State at an assisted 
living facility. While Mr. Peltz's application for pension was 
approved by VA, unfortunately he passed away before VA was able 
to distribute his accrued benefits. Due to a processing error, 
these funds were not deposited into his account until 7 days 
following his death. This qualified as an `overpayment,' 
causing VA to bill Mr. Peltz's estate to recoup the payment. 
The Committee believes this oversight in policy is wrong for 
veterans and their families.
    Elderly veterans who are eligible for pension are some of 
our Nation's most financially vulnerable populations. Some of 
the eligibility requirements for VA pensions include whether a 
veteran and their dependents combined net worth is under 
$159,240 and the veteran must be at least 65 years old.\1\ This 
age range represents a large portion of our Nation's veterans, 
including those who served in the Korean War, Vietnam War, the 
Gulf War, and other conflicts before the 1990s.
---------------------------------------------------------------------------
    \1\Current pension rates for Veterans, Pension Benefits, U.S. Dep't 
of Veterans Affairs, Dec. 2, 2024, va.gov/pension/veterans-pension-
rates (Accessed Sept. 17, 2025).
---------------------------------------------------------------------------
    In their statement to the House Committee on Veterans' 
Affairs Disability Assistance and Memorial Affairs Subcommittee 
hearing held on June 24, 2025, to discuss this legislation, the 
American Legion stated:
          ``According to VA National Center for Analysis and 
        Statistics, there are approximately 9,823,792 veterans 
        between the ages of 60 to 85 years of age or more. Of 
        these veterans, 7,808,106 aged 65 and older live at or 
        below the poverty threshold. These figures underscore 
        the importance of ensuring surviving spouses can 
        receive any accrued or pending benefits for the month 
        of the veteran's death. For low-income families, 
        expeditious and timely access to these benefits can 
        ease the burden of an already difficult time.''\2\
---------------------------------------------------------------------------
    \2\Statement for the Record of the American Legion, (June 24, 
2025), HHRG-119-VR09-20250624-SD014.pdf (house.gov).
---------------------------------------------------------------------------
    In support of this bill, the Veterans of Foreign Wars of 
the United States said in the same hearing:
          ``The VFW supports this legislation to ensure 
        survivors receive their Department of Veterans Affairs 
        (VA) pension benefit for the entire month in which a 
        veteran dies. Receiving the full month-of-death benefit 
        payment would better equip survivors to manage the 
        financial hardships that accompany a veteran's death. 
        Rather than abruptly stopping these benefits mid-month, 
        VA would maintain the accustomed income immediately 
        following the veteran's death, providing grieving 
        survivors the resource to settle urgent end-of-life 
        expenses.''\3\
---------------------------------------------------------------------------
    \3\Statement for the Record of the Veterans of Foreign Wars of the 
United States, (June 24, 2025), HHRG-119-VR09-20250624-SD004.pdf 
(house.gov).
---------------------------------------------------------------------------
    The Committee believes that this section would resolve the 
issue surrounding the recoupment of payments issued to veterans 
after their death and address this flawed policy. The pension 
given to a veteran from the VA is a guarantee of funds to that 
individual veteran, and it is the Committee's intent that the 
payment should stay with the veteran's survivors, with no debt 
incurred by their survivors.

Section 3: Extension of Certain Limits on Payments of Pension

    Under current law (38 U.S.C. Sec. 5503(d)), the amount of 
VA pension paid to a veteran with no spouse or child, a 
veteran's surviving spouse with no child, or a veteran's child 
who are admitted to a VA or Medicaid sponsored nursing facility 
is capped at $90 a month. This section would cover the costs of 
the other sections of this bill by extending this pension 
limitation by one month to December 31, 2032. Because they 
receive government sponsored care in a nursing home, these 
pension beneficiaries do not require the full amount of pension 
to cover their cost of living. The Committee believes this 
short-term extension of the current limit on pension payments 
is a reasonable way to cover the costs associated with the 
other sections of this bill.

                                Hearings

    On June 24, 2025, the Committee on Veterans' Affairs 
Subcommittee on Disability Assistance and Memorial Affairs held 
a legislative hearing on H.R. 3123 and other bills that were 
pending before the subcommittee.
    The following witnesses testified:
          The Honorable Mike Bost, U.S. House of 
        Representatives; The Honorable Elise Stefanik, U.S. 
        House of Representatives; The Honorable Julia Brownley, 
        U.S. House of Representatives; The Honorable Chuck 
        Edwards, U.S. House of Representatives; The Honorable 
        Tom Barrett, U.S. House of Representatives; The 
        Honorable Tim Kennedy, U.S. House of Representatives; 
        The Honorable Jahana Hayes, U.S. House of 
        Representatives; Mrs. Julie Guleff, Caregiver and 
        Surviving Spouse of Stephen Guleff, Vietnam Veteran; 
        Mr. Michael J. Wishnie, William O. Douglas Clinical 
        Professor of Law and Director, Veterans Legal Services 
        Clinic, Yale Law School; Ms. Candace Wheeler, Senior 
        Director, Government and Legislative Affairs, Tragedy 
        Assistance Program for Survivors (TAPS); Mr. Evan 
        Deichert, Acting Deputy Vice Chairman, Board of 
        Veterans' Appeals, U.S. Department of Veterans Affairs; 
        Mr. Kevin Friel, Executive Director, Pension & 
        Fiduciary Service, Veterans Benefits Administration, 
        U.S. Department of Veterans Affairs; Mr. James W. Smith 
        II, Deputy Executive Director, Policy and Procedures, 
        Compensation Service, Veterans Benefits Administration, 
        U.S. Department of Veterans Affairs; Dr. Colleen 
        Richardson, Executive Director, Caregiver Support 
        Program, Veterans Health Administration, U.S. 
        Department of Veterans Affairs; Colonel (Ret.) Tiffany 
        M. Wagner, USAF, Clerk of the Court, U.S. Court of 
        Appeals for Veterans Claims.
    The following individuals and organizations submitted 
statements for the record:
          The Honorable Debbie Wasserman Shultz of Florida; 
        Gold Star Spouses of America; Veterans of Foreign Wars; 
        Vietnam Veterans of America; National Organization of 
        Veterans' Advocates; Disabled American Veterans; 
        Quality of Life Foundation; Jewish Federations of North 
        America; Paralyzed Veterans of America; Administrative 
        Conference of the United States; Afikim Foundation; 
        American Legion; Shiron Collective; American Federation 
        of Government Employees; Republican Jewish Coalition; 
        Jonah Platt in their personal capacity; Shabbos 
        Kestenbaum in their personal capacity; John Ondrasik in 
        their personal capacity; Lizzy Savetsky in their 
        personal capacity; Aviva Klompas in their personal 
        capacity; Lee Trink in their personal capacity; Bethany 
        Mandel in their personal capacity; Iddo Goldberg in 
        their personal capacity; Liora Rezin their personal 
        capacity; Jason Greenblatt in their personal capacity; 
        Sarah Stern in their personal capacity; Nicole Neily in 
        their personal capacity; Adam Zimmerman in their 
        personal capacity.

                       Subcommittee Consideration

    On July 3, 2025, the Subcommittee on Disability Assistance 
and Memorial Affairs was discharged from further consideration 
of H.R. 3123.

                        Committee Consideration

    On July 23, 2025, the Full Committee met in open markup 
session with a quorum being present, to consider H.R. 3123. The 
following amendments were offered during consideration of H.R. 
3123:
    An amendment in the nature of a substitute to H.R. 3123 was 
offered by Chairman Mike Bost to fully offset the cost of this 
legislation. This amendment was agreed to by voice vote.
    A motion by Ranking Member Takano of California to report 
H.R. 3123, as amended, favorably to the House of 
Representatives was agreed to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 3123, as 
amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 3123, as amended, are to ensure 
that veterans families received the accrued pension benefits 
their deceased veteran loved-one was due.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3123, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

     Budget Authority and Congressional Budget Office Cost Estimate

    Pursuant to clause (3)(c)(3) of rule XIII of the Rules of 
the House of Representatives, the following is the cost 
estimate for H.R. 3123, as amended, provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 3123 would require the Department of Veterans Affairs 
(VA) to pay accrued pension benefits to a deceased veteran's 
estate in cases where that veteran's eligible survivor does not 
claim such benefits. The bill also would extend the reduction 
of VA pension payments for veterans and survivors who reside in 
Medicaid nursing homes. In total, enacting H.R. 3123 would 
reduce net direct spending by $3 million over the 2026-2035 
period (see Table 1). The costs of the legislation fall within 
budget functions 550 (health) and 700 (veterans benefits and 
services).
    Accrued benefits. Section 2 would require VA to pay a 
deceased veteran's accrued pension benefit to that veteran's 
estate if no eligible survivor claims it. Under current law, 
pension benefits that have been awarded but not yet paid at the 
time of a veteran's death are payable only to that veteran's 
surviving spouse, children, or parents. If none of those 
survivors claim the pension within a year of the veteran's 
death, the veteran's estate or another individual can only 
receive reimbursement for funeral expenses. Using information 
from VA on the number of veterans who die before receiving 
their pension and the frequency with which eligible survivors 
claim those accrued benefits, CBO estimates that the department 
would pay accrued benefits to veterans' estates about 20 times 
each year. From 2019-2024, accrued benefit payments have 
averaged about $3,000; thus, CBO estimates enacting section 2 
would increase direct spending by $1 million over the 2026-2035 
period.
    Pensions and Medicaid. Under current law, VA reduces 
pension payments to veterans and survivors who reside in 
Medicaid nursing homes to $90 per month. That required 
reduction expires November 30, 2031. Section 3 would extend 
that reduction for one month, through December 31, 2031. CBO 
estimates that extending that requirement would reduce VA 
benefits by $10 million per month. As a result of that 
reduction in beneficiaries' income, Medicaid would pay more of 
the cost of their care, increasing spending for that program by 
$6 million per month. Thus, enacting section 3 would reduce net 
direct spending by $4 million over the 2026-2035 period.

                                                  Table 1.--CHANGES IN DIRECT SPENDING UNDER H.R. 3123
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2026   2027   2028   2029   2030   2031   2032   2033   2034   2035  2026-2030  2026-2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
Accrued Benefits:
    Estimated Budget Authority..............................      *      *      *      *      *      *      *      *      *      1         *          1
    Estimated Outlays.......................................      *      *      *      *      *      *      *      *      *      1         *          1
Pensions and Medicaid:
    Estimated Budget Authority..............................      0      0      0      0      0      0     -4      0      0      0         0         -4
    Estimated Outlays.......................................      0      0      0      0      0      0     -4      0      0      0         0         -4
Total Changes:
    Estimated Budget Authority..............................      *      *      *      *      *      *     -4      *      *      1         *         -3
    Estimated Outlays.......................................      *      *      *      *      *      *     -4      *      *      1         *         -3
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    The CBO staff contacts for this estimate are David Rafferty 
and Logan Smith. The estimate was reviewed by Christina Hawley 
Anthony, Deputy Director of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 3123, as 
amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3123, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3123, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3123, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1: Short title

    This section would establish the short title of the bill as 
the ``Ernest Peltz Accrued Veterans Benefits Act.''

Section 2: Payment by Secretary of Veterans Affairs of pension after 
        death of a veteran in certain circumstances

    This section would amend Chapter 51 of United States Code 
38 by inserting a new subsection under 38 U.S.C. Sec.  5121A 
that would pay out pension in cases where a veteran was issued 
a decision awarding entitlement to pension, but the veteran 
passed away before the payment was issued. This section 
specifies that the due, but unpaid, pension would be paid to 
the first living person in the order of this list: (1) the 
veteran's spouse; (2) the veteran's children (in equal shares); 
(3) the veteran's dependent parents (in equal shares); or (4) 
the estate of the deceased veteran unless the estate would 
escheat.
    This section would also establish the limitation for 
application of unpaid, but due, pension as one-year following 
the death of the veteran; if no application from an eligible 
party is filed, the pension will be paid to the estate of the 
deceased veteran unless the estate escheats.
    Finally, this section establishes that the amendments made 
by this section will apply after the date of the enactment of 
this Act.

Section 3: Extension of certain limits on payments of pension

    This section would extend the limitation of pension payable 
to certain veterans, their surviving spouses, and their 
children as established in 38 U.S.C. Sec.  5503(d)(7), from 
November 30, 2031, to December 31, 2031.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *

              PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *

           CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS

Sec.
           *       *       *       *       *       *       *

                   SUBCHAPTER III--PAYMENT OF BENEFITS

           *       *       *       *       *       *       *
           
5121B. Payment of pension after death of a veteran in certain 
         circumstances.

           *       *       *       *       *       *       *

                  SUBCHAPTER III--PAYMENT OF BENEFITS

           *       *       *       *       *       *       *

Sec. 5121. Payment of certain accrued benefits upon death of a 
             beneficiary

  (a) Except as provided in section 5121B of this title, or 
sections 3329 and 3330 of title 31, periodic monetary benefits 
(other than insurance and servicemen's indemnity) under laws 
administered by the Secretary to which an individual was 
entitled at death under existing ratings or decisions or those 
based on evidence in the file at date of death (hereinafter in 
this section and section 5122 of this title referred to as 
``accrued benefits'') and due and unpaid, shall, upon the death 
of such individual be paid as follows:
          (1) Upon the death of a person receiving an 
        apportioned share of benefits payable to a veteran, all 
        or any part of such benefits to the veteran or to any 
        other dependent or dependents of the veteran, as may be 
        determined by the Secretary.
          (2) Upon the death of a veteran, to the living person 
        first listed below:
                  (A) The veteran's spouse.
                  (B) The veteran's children (in equal shares).
                  (C) The veteran's dependent parents (in equal 
                shares).
          (3) Upon the death of a surviving spouse or remarried 
        surviving spouse, to the children of the deceased 
        veteran.
          (4) Upon the death of a child, to the surviving 
        children of the veteran who are entitled to death 
        compensation, dependency and indemnity compensation, or 
        death pension.
          (5) Upon the death of a child claiming benefits under 
        chapter 18 of this title, to the surviving parents.
          (6) In all other cases, only so much of the accrued 
        benefits may be paid as may be necessary to reimburse 
        the person who bore the expense of last sickness and 
        burial.
  (b) No part of any accrued benefits shall be used to 
reimburse any political subdivision of the United States for 
expenses incurred in the last sickness or burial of any 
beneficiary.
  (c) Applications for accrued benefits must be filed within 
one year after the date of death. If a claimant's application 
is incomplete at the time it is originally submitted, the 
Secretary shall notify the claimant of the evidence necessary 
to complete the application. If such evidence is not received 
within one year from the date of such notification, no accrued 
benefits may be paid.

           *       *       *       *       *       *       *

Sec. 5121B. Payment of pension after death of a veteran in certain 
              circumstances

  (a) In General.--Subject to subsection (b), if the Secretary 
issues a decision awarding entitlement to a pension to a 
veteran before the death of such veteran, and the Secretary 
issues payment of such pension after the veteran dies, such 
pension that was due and unpaid at the time of the veteran's 
death shall be paid to the first living person or entity listed 
below:
          (1) The veteran's spouse.
          (2) The veteran's children (in equal shares).
          (3) The veteran's dependent parents (in equal 
        shares).
          (4) The estate of the deceased veteran unless the 
        estate will escheat.
  (b) Limitation.--In a case described in subsection (a), if no 
application is filed under section 5121 of this title during 
the one-year period following the death of the veteran, the 
pension described in such subsection shall be paid to the 
estate of the deceased veteran unless the estate will escheat.

           *       *       *       *       *       *       *

           CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

           *       *       *       *       *       *       *

Sec. 5503. Hospitalized veterans and estates of incompetent 
             institutionalized veterans

  (a)(1)(A) Where any veteran having neither spouse nor child 
is being furnished domiciliary care by the Department, no 
pension in excess of $90 per month shall be paid to or for the 
veteran for any period after the end of the third full calendar 
month following the month of admission for such care.
  (B) Except as provided in subparagraph (D) of this paragraph, 
where any veteran having neither spouse nor child is being 
furnished nursing home care by the Department, no pension in 
excess of $90 per month shall be paid to or for the veteran for 
any period after the end of the third full calendar month 
following the month of admission for such care. Any amount in 
excess of $90 per month to which the veteran would be entitled 
but for the application of the preceding sentence shall be 
deposited in a revolving fund at the Department medical 
facility which furnished the veteran nursing care, and such 
amount shall be available for obligation without fiscal year 
limitation to help defray operating expenses of that facility.
  (C) No pension in excess of $90 per month shall be paid to or 
for a veteran having neither spouse nor child for any period 
after the month in which such veteran is readmitted for care 
described in subparagraph (A) or (B) of this paragraph and 
furnished by the Department if such veteran is readmitted 
within six months of a period of care in connection with which 
pension was reduced pursuant to subparagraph (A) or (B) of this 
paragraph.
  (D) In the case of a veteran being furnished nursing home 
care by the Department and with respect to whom subparagraph 
(B) of this paragraph requires a reduction in pension, such 
reduction shall not be made for a period of up to three 
additional calendar months after the last day of the third 
month referred to in such subparagraph if the Secretary 
determines that the primary purpose for the furnishing of such 
care during such additional period is for the Department to 
provide such veteran with a prescribed program of 
rehabilitation services, under chapter 17 of this title, 
designed to restore such veteran's ability to function within 
such veteran's family and community. If the Secretary 
determines that it is necessary, after such period, for the 
veteran to continue such program of rehabilitation services in 
order to achieve the purposes of such program and that the 
primary purpose of furnishing nursing home care to the veteran 
continues to be the provision of such program to the veteran, 
the reduction in pension required by subparagraph (B) of this 
paragraph shall not be made for the number of calendar months 
that the Secretary determines is necessary for the veteran to 
achieve the purposes of such program.
  (2) The provisions of paragraph (1) shall also apply to a 
veteran being furnished such care who has a spouse but whose 
pension is payable under section 1521(b) of this title. In such 
a case, the Secretary may apportion and pay to the spouse, upon 
an affirmative showing of hardship, all or any part of the 
amounts in excess of the amount payable to the veteran while 
being furnished such care which would be payable to the veteran 
if pension were payable under section 1521(c) of this title.
  (b) Notwithstanding any other provision of this section or 
any other provision of law, no reduction shall be made in the 
pension of any veteran for any part of the period during which 
the veteran is furnished hospital treatment, or institutional 
or domiciliary care, for Hansen's disease, by the United States 
or any political subdivision thereof.
  (c) Where any veteran in receipt of an aid and attendance 
allowance described in subsection (r) or (t) of section 1114 of 
this title is hospitalized at Government expense, such 
allowance shall be discontinued from the first day of the 
second calendar month which begins after the date of the 
veteran's admission for such hospitalization for so long as 
such hospitalization continues. Any discontinuance required by 
administrative regulation, during hospitalization of a veteran 
by the Department, of increased pension based on need of 
regular aid and attendance or additional compensation based on 
need of regular aid and attendance as described in subsection 
(l) or (m) of section 1114 of this title, shall not be 
effective earlier than the first day of the second calendar 
month which begins after the date of the veteran's admission 
for hospitalization. In case a veteran affected by this 
subsection leaves a hospital against medical advice and is 
thereafter admitted to hospitalization within six months from 
the date of such departure, such allowance, increased pension, 
or additional compensation, as the case may be, shall be 
discontinued from the date of such readmission for so long as 
such hospitalization continues.
  (d)(1) For the purposes of this subsection--
          (A) the term ``Medicaid plan'' means a State plan for 
        medical assistance referred to in section 1902(a) of 
        the Social Security Act (42 U.S.C. 1396a(a)); and
          (B) the term ``nursing facility'' means a nursing 
        facility described in section 1919 of such Act (42 
        U.S.C. 1396r), other than a facility that is a State 
        home with respect to which the Secretary makes per diem 
        payments for nursing home care pursuant to section 
        1741(a) of this title.
  (2) If a veteran having neither spouse nor child is covered 
by a Medicaid plan for services furnished such veteran by a 
nursing facility, no pension in excess of $90 per month shall 
be paid to or for the veteran for any period after the month of 
admission to such nursing facility.
  (3) Notwithstanding any provision of title XIX of the Social 
Security Act, the amount of the payment paid a nursing facility 
pursuant to a Medicaid plan for services furnished a veteran 
may not be reduced by any amount of pension permitted to be 
paid such veteran under paragraph (2) of this subsection.
  (4) A veteran is not liable to the United States for any 
payment of pension in excess of the amount permitted under this 
subsection that is paid to or for the veteran by reason of the 
inability or failure of the Secretary to reduce the veteran's 
pension under this subsection unless such inability or failure 
is the result of a willful concealment by the veteran of 
information necessary to make a reduction in pension under this 
subsection.
  (5)(A) The provisions of this subsection shall apply with 
respect to a surviving spouse having no child in the same 
manner as they apply to a veteran having neither spouse nor 
child.
  (B) The provisions of this subsection shall apply with 
respect to a child entitled to pension under section 1542 of 
this title in the same manner as they apply to a veteran having 
neither spouse nor child.
  (6) The costs of administering this subsection shall be paid 
for from amounts available to the Department of Veterans 
Affairs for the payment of compensation and pension.
  (7) This subsection expires on [November 30, 2031] December 
31, 2031.

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