To amend title 38, United States Code, to exclude from income, for purposes of determining annual income for veterans' non-service-connected disability pension, amounts received by a veteran from any judgment or settlement of a claim for damages against the Secretary of Veterans Affairs.

Excludes from income for purposes of the determination of a veteran's non-service-connected disability pension amounts received as part of a: (1) judgment against the Secretary of Veterans Affairs for damages of $25,000 or less; or (2) settlement or compromise under the Federal Tort Claims Act.