A bill to amend title 38, United States Code, to increase rates of disability compensation and dependency and indemnity compensation, and to provide for automatic adjustment thereof commensurate with future increases in the cost of living, and for other purposes.

Provides a 12-percent increase in veterans' compensation benefits and a 14-percent increase in dependency and indemnity compensation benefits. Provides for an automatic adjustment of disability, dependency, and indemnity compensations with increases in the cost of living.