To amend title 38, United States Code, to provide that the increase of $250 per month in the rate of monthly dependency and indemnity compensation (DIC) payable to a surviving spouse of a member of the Armed Forces who dies on active duty or as a result of a service-connected disability shall be paid for so long as there are minor children, rather than only for two years.

Increases by $250 the monthly rate of dependency and indemnity compensation (DIC) payable to a surviving spouse: (1) of a member of the Armed Forces who dies while on active duty or as a result of a service-connected disability; and (2) who, at the time of the member's death, has one or more children under 18 years of age.

Repeals a provision that limits the duration of such increase to two years (thereby continuing the payment until all such dependents attain age 18).

Directs the Secretary of Veterans Affairs, effective on December 1, 2005, to provide a cost-of-living adjustment to such additional compensation.