To restore reductions in veterans benefits made by the Omnibus Budget Reconciliation Act of 1990.

Presumes a veteran to be totally disabled for purposes of pension determination provisions if such person is 65 or older or becomes unemployable after such age.

Restores the full permitted monthly pension (currently $90) for veterans having neither spouse nor child and receiving Medicaid-covered nursing home care.

Provides that the remarriage of a veteran's surviving spouse shall not eliminate the right of such former spouse to survivors' benefits if the remarriage is terminated or dissolved unless the Secretary of Veterans Affairs determines that the divorce was secured through fraud or collusion by the surviving spouse. Provides similar benefits protection for a veteran's child whose marriage is dissolved without fraud or collusion.

Repeals a Federal provision requiring a minimum copayment for medication received for a nonservice-connected disability by a veteran with a service-connected disability rated at 50 percent or less.

Authorizes the Secretary to furnish hospital and nursing home care for the nonservice-connected disability of a veteran whose income falls below a specified level. Allows such care to be furnished to other ineligible veterans if a minimum amount is paid by such veteran.

Prohibits a veteran from being required to pay for certain outpatient services furnished during any 90-day period. Revises certain income thresholds used in determining whether such payment is required.

Entitles all veterans with a service-connected disability (currently, only those whose rating is 20 percent or more) to the basic veterans' educational assistance entitlement.

Authorizes the Secretary, in lieu of furnishing a headstone or grave marker, to reimburse a person for the cost of such in any cemetery other than a national cemetery in the case of a veteran's burial.

Allows a veteran's abuse of alcohol or drugs to be considered an injury incurred in the line of duty for purposes of eligibility for veterans' benefits and misconduct determinations.