To amend title 38, United States Code, to extend eligibility to receive dependency and indemnity compensation to veterans' surviving spouses whose subsequent marriages have terminated.

States that the remarriage of a veteran's surviving spouse shall not bar the furnishing of veterans' dependency and indemnity compensation (DIC) to such person if the remarriage is terminated by death or divorce, unless the Secretary of Veterans Affairs determines that the death or divorce was secured through fraud by the surviving spouse or collusion.

Makes eligible for DIC a veteran's surviving spouse who ceases to live with another person and hold him or herself out to the public as that person's spouse.