A bill to amend title 38, United States Code, to provide payments in lieu of certain social security benefits eliminated by the Omnibus Reconciliation Act of 1981 in the case of survivors of veterans dying of any service-connected disability incurred before September 1, 1981.

Increases the monthly rate of dependency and indemnity compensation payable to the surviving spouse of a veteran who died from a service-connected or compensable disability by the amount such spouse would have received under the Social Security Act were she caring for a child under 16 (when such child is actually between 16 and 18 years of age).

Directs the Administrator to make monthly payments equivalent to the child's insurance benefit under the Social Security Act before the Omnibus Budget Reconciliation Act of 1981 to children of such deceased veterans between the ages of 18 and 22 attending institutions of higher learning.