A bill to amend title 38 of the United States Code to promote the care and treatment of veterans in State veterans' homes, and for other purposes.

Increases from $3.50 to $4.50 for domiciliary care, from $5.00 to $6.00 for nursing home care, and from $7.50 to $10.00 for hospital care, the per diem rate the Administrator of Veterans' Affairs may pay a State for each veteran of any war receiving such care in a State home. Extends such services and coverage to any veterans of service after January 31, 1955. (Amends 38 U.S.C. 641)

Increases to 65 percent the percentage of the cost that the Federal Government may pay through grants to States for projects for remodeling, modification, or alteration of existing hospital or domiciliary facilities in State homes providing care and treatment for veterans, and for projects for construction of such facilities. (Amends 38 U.S.C. 644(b), 5035)

Increases to 65 percent the recapture percentage allowable by the Federal Government of the cost of such new facilities that cease to serve veterans twelve years after completion of the facility. (Amends 38 U.S.C. 5036)