A bill to amend titles 10 and 37, United States Code, to make members of the Armed Forces involved in Operation Desert Shield or similar operations eligible for certain benefits and to make members of the reserve components of the Armed Forces and retired members of the Armed Forces eligible for certain benefits when ordered to active duty in connection with a mobilization; and for other purposes.

Provides the following services or benefits for members of the armed forces serving under arduous conditions (as determined by the Secretary of Defense) pursuant to a temporary deployment for an operational emergency: (1) the deposit of pay and other allowances as part of a savings program for overseas personnel; (2) special pay relating to imminent danger; (3) exemption from payment for military meals sold at mess to personnel and their dependents; (4) mailing privileges; and (5) a basic allowance for subsistence.

Authorizes the provision of a variable housing allowance for members of the reserves called to active duty for a period of less than 140 days under specific conditions other than during a war or national emergency.

Removes the limitation on the payment allowed for unused accrued leave in the case of members, reserve members, or retired members called to active duty under specific conditions other than during a war or national emergency.

Amends the Internal Revenue Code to exclude from gross income payments received for active military service during any part of which such member: (1) served in a dangerous foreign area; or (2) was hospitalized as a result of wounds, a disease, or an injury incurred while serving in a dangerous foreign area. States that such exclusion shall not apply to compensation exceeding $2,000 received by a commissioned officer in any month.