To amend title 38, United States Code, to increase plot allowances for certain veterans buried in Department of Veterans Affairs cemeteries or State cemeteries and to direct the Secretary of Veterans Affairs to provide a plot allowance for spouses and children of certain veterans who are buried in State cemeteries, and for other purposes.

Increases from $300 to $500 the plot allowances for veterans who die in a Department of Veterans Affairs (VA) hospital, nursing home, or domiciliary care facility and are buried in a national or state cemetery.

Directs the Secretary to pay to a state or an agency or political subdivision thereof a plot allowance of $500 for each spouse and child of certain veterans who are eligible for interment in a national cemetery but are buried in a state cemetery.

Directs the Secretary to annually adjust the $500 plot allowance by an amount equal to the percentage increase in the Consumer Price Index. Prohibits any such adjustment with respect to FY2011.