To amend title 38, United States Code, to include contracts and grants for residential care for veterans in the exception to the requirement that the Federal Government recover a portion of the value of certain projects.

Includes among the circumstances under which the federal government shall not be entitled to recover a portion of the value of state home facilities that received a grant for, but that the state has ceased to operate for, furnishing domiciliary or nursing home care to veterans the provision by the Secretary of Veterans Affairs (VA) of a contract or grant for veterans' residential care in such facilities.