A bill to amend title 38, United States Code, to eliminate the withholding of compensation and retirement pay for certain veterans being furnished hospital treatment or domiciliary care by the Veterans' Administration.

Provides that in any case in which a veteran, having neither wife nor child, is being furnished hospital treatment, or institutional or domiciliary care without charge or otherwise by the United States, or any political subdivision thereof, and is rated by the Veteran's Administration in accordance with regulations as being imcompetent by reason of mental illness, and his estate from any source equals or exceeds $1,500, further payments of pension, compensation, or emergency officers' retirement pay shall not be made until the estate is reduced to $500. Stipulates that the amount which would be payable but for this provision shall be paid to the veteran in a lump sum, except that no payment of a lump sum shall be made to a veteran until after the expiration of six months following a finding of competency and that in the event of the veteran's death before payment of a lump sum, no part thereof shall be payable.