(a)(1) When a veteran described in paragraph (2) dies, the Secretary shall—

(A) pay the actual cost (not to exceed $700 (as increased from time to time under subsection (c))) of the burial and funeral or, within such limits, may make contracts for such services without regard to the laws requiring advertisement for proposals for supplies and services for the Department; and

(B) when such a death occurs in a State, transport the body to the place of burial in the same or any other State.

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(2) A veteran described in this paragraph is a deceased veteran who is not covered by section 2307 of this title and who meets any of the following criteria:

(A) The deceased veteran dies in—

(i) a facility of the Department (as defined in section 1701(3) of this title) to which the deceased veteran was properly admitted for hospital, nursing home, or domiciliary care under section 1710 or 1711(a) of this title; or

(ii) an institution at which the deceased veteran was, at the time of death, receiving—

(I) hospital care in accordance with sections 1703A, 8111, and 8153 of this title;

(II) nursing home care under section 1720 of this title; or

(III) nursing home care for which payments are made under section 1741 of this title.

(B) At the time of death, the deceased veteran (including a person who died during a period deemed to be active military, naval, or air service under section 106(c) of this title) is in receipt of compensation under chapter 11 of this title (or but for the receipt of retirement pay would have been entitled to such compensation) or was in receipt of pension under chapter 15 of this title.

(C) The Secretary determines—

(i) the deceased veteran (including a person who died during a period deemed to be active military, naval, or air service under section 106(c) of this title) has no next of kin or other person claiming the body of the deceased veteran; and

(ii) that there are not available sufficient resources to cover burial and funeral expenses.

(b) In addition to the benefits provided for under subsection (a) of this section, in the case of a veteran who is eligible for burial in a national cemetery under section 2402 of this title and who is not buried in a national cemetery or other cemetery under the jurisdiction of the United States—

(1) the Secretary shall pay to the relevant State, agency, political subdivision, or tribal organization, as the case may be, the sum of $700 (as increased from time to time under subsection (c)) as a plot or interment allowance for such veteran if the 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 who are—

(i) eligible for burial in a national cemetery;

(ii) members of a reserve component of the Armed Forces not otherwise eligible for such burial or former members of such a reserve component not otherwise eligible for such burial who are discharged or released from service under conditions other than dishonorable; or

(iii) described in section 2408(i)(2) of this title; and

(B) is—

(i) owned by a State or by an agency or political subdivision of a State; or

(ii) on trust land owned by, or held in trust for, a tribal organization. ¹

(2) if such veteran is eligible for a burial allowance under subsection (a) of this section, or was discharged from the active military, naval, air, or space service for a disability incurred or aggravated in line of duty, and such veteran is buried in a cemetery, or a section of a cemetery, other than as described in clause (1) of this subsection, the Secretary shall pay a sum not exceeding $700 (as increased from time to time under subsection (c)) as a plot or interment allowance to such person as the Secretary prescribes, 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, tribal organization, 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.

(c) With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the maximum amount of burial and funeral expenses payable under subsection (a) and in the maximum amount of the plot or interment allowance payable under subsection (b), equal to the percentage by which—

(1) the Consumer Price Index (all items, United States city average) for the 12-month period ending on the June 30 preceding the beginning of the fiscal year for which the increase is made, exceeds

(2) the Consumer Price Index for the 12-month period preceding the 12-month period described in paragraph (1).

(d) With respect to a deceased veteran described in subparagraph (B) or (C) of subsection (a)(2), except as hereafter provided in this subsection, no deduction shall be made from the burial allowance because of the veteran’s net assets at the time of the death of such veteran, or because of any contribution from any source toward the burial and funeral expenses (including transportation) unless the amount of expenses incurred is covered by the amount actually paid therefor by the United States, a State, any agency or political subdivision of the United States or of a State, or the employer of the deceased veteran. No claim shall be allowed (1) for more than the difference between the entire amount of the expenses incurred and the amount paid by any or all of the foregoing, or (2) when the burial allowance would revert to the funds of a public or private organization or would discharge such an organization’s obligation without payment. The burial allowance or any part thereof shall not be paid in any case where specific provision is otherwise made for payment of expenses of funeral, transportation, and interment under any other Act.

(e) In this section, the terms “tribal organization” and “trust land” have the meanings given those terms in section 3765 of this title.