A bill to amend title 10, United States Code, to include in the death gratuity payable to survivors of a member of the Armed Forces who dies on active duty an amount equivalent to two months' housing allowances.

(Measure passed Senate, amended)

Amends Federal armed forces pay and allowances provisions to authorize the Secretary of Defense, or the Secretary of Transportation in the case of the Coast Guard when not operating as a service in the Navy, to allow dependents of a member of the armed forces who dies in the line of duty who are occupying family housing provided by the Department of Defense, or the Department of Transportation, on a nonrental basis to continue to occupy such housing without charge for a period of 90 days following the member's death.

Authorizes the Secretary concerned to pay an allowance for quarters to dependents of a member of the armed forces who dies in the line of duty who are either not occupying military family housing or are occupying such housing on a rental basis at the time of the member's death. Terminates such payment 90 days after the date of the member's death.

Provides that the above provisions take effect December 12, 1985.

Amends the Veterans' Administration Health-Care Amendments of 1985 to change the effective date for an increase in the maximum amount of life insurance payable under the Servicemen's Group Life Insurance program to include beneficiaries of members whose deaths occurred after December 11, 1985 (currently January 1, 1986) and who were insured in a specified amount under such program.