Veterans Burial Benefits Improvement Act of 2006

Veterans Burial Benefits Improvement Act of 2006 - Increases the authorized allowance for burial and funeral expenses for deceased veterans who: (1) at the time of death were in receipt of veterans' disability compensation or veterans' pension benefits; or (2) were veterans of any war or were discharged or released from active military service for a service-connected disability and for whom there is no next of kin or sufficient resources to cover funeral and burial costs.

Increases the burial plot allowance for veterans who, at the time of death, were receiving hospital or nursing home care in or through the Department of Veterans Affairs.

Authorizes the annual adjustment of such allowances based on increases in the Consumer Price Index.