To amend title 37, United States Code, to exclude bonus payments made by a State or political subdivision thereof to a member of the Armed Forces, including a reserve component member, on account of the service of the member in the Armed Forces from consideration in determining the eligibility of the member (or the member's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

Exclusion

Any bonus payment made by a State or political subdivision thereof to any member of the armed forces by reason of the member’s service as a member shall not be regarded as a resource for purposes of determining the eligibility of the member (or the member’s spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

Deceased members

If a bonus described in paragraph (1) that would otherwise be paid to a member is paid to another person because the member is deceased, paragraph (1) shall apply to the treatment of the bonus payment in determining the eligibility of the actual recipient for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

Member defined

In this subsection, the term member includes a former or retired member of the armed forces, if a bonus payment described in paragraph (1) is made to the former or retired member by reason of the member’s service on active duty before separation or retirement.