To amend title 37, United States Code, to exclude bonus payments made by a State or political subdivision thereof to a member of the Armed Forces, including a reserve component member, on account of the service of the member in the Armed Forces from consideration in determining the eligibility of the member (or the member's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

Excludes bonus payments made by a state or political subdivision thereof to a member of the Armed Forces, including a reserve member, on account of military service from consideration as income in determining the member's eligibility (or the member's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any federal, state, or local program financed in whole or in part with federal funds.

Provides that if a bonus payment is paid to another person on behalf of a deceased member, such exclusion shall apply to that recipient.

Applies such exclusion retroactively to any bonus paid: (1) during the period beginning on August 2, 1990, and ending on March 3, 1991; and (2) since September 11, 2001.