To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to make certain grants to assist nursing homes for veterans located on tribal lands.

Defines "state homes" to include homes established by federally recognized Indian tribes for veterans who, by reason of disability, are incapable of earning a living.

Requires the Secretary of Veterans Affairs to pay those tribes for the hospital, nursing home, domiciliary, and medical care they provide to veterans in those homes.

Makes those tribes eligible for grants from the Secretary for the construction of state homes.