SECTION 1. (a) Section 5 of chapter 115 of the Massachusetts General Laws, as appearing in the most recent edition, is hereby amended by striking out the current rates of benefits provided to veterans and inserting in place thereof the following provisions:-

1. The amount of financial assistance provided to eligible veterans shall be increased by 25% over the current rate of benefits.

2. The Massachusetts Executive Office of Veterans' Services shall annually review the cost of living and adjust the benefit rates accordingly to ensure veterans' benefits keep pace with inflation.

(b) Section 5A of chapter 115 of the Massachusetts General Laws is further amended by adding the following:-

(1) Upon the death of an eligible veteran, the surviving spouse shall continue to receive the same financial assistance benefits provided under Chapter 115 for a period of 12 months following the death of the veteran.

(2) After the initial 12-month period, the surviving spouse shall continue to receive financial assistance at 75% of the veteran’s benefit rate, provided the spouse remains unmarried and continues to meet the eligibility criteria set forth by the Department of Veterans' Services.

(3) In the event of remarriage, benefits shall cease at the time of remarriage.

(4) The Executive Office of Veterans' Services shall establish guidelines to ensure a seamless transition of benefits from the veteran to the surviving spouse, including application procedures and eligibility verification processes.

SECTION 2. (a) The Commonwealth shall allocate the necessary funds to the Executive Office of Veterans' Services to implement the increased benefits and to administer the extension of benefits to surviving spouses.

(b) The Executive Office of Veterans' Services shall work in coordination with local veterans’ agents to ensure eligible veterans and their surviving spouses are informed of the changes to Chapter 115 benefits and the process for applying for and receiving benefits.

SECTION 3. (a) The Executive Office of Veterans' Services shall submit a report to the General Court within 18 months of the enactment of this act, detailing the financial impact of the increased benefits and the extension of benefits to surviving spouses. The report shall include recommendations for any further legislative action needed to ensure the sustainability and effectiveness of the Chapter 115 benefits program.