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Bush to Propose Large Hike in ‘Death Gratuity’

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From Times Wire Reports

President Bush will propose an increase of about $250,000 in government payments to families of U.S. troops killed in combat zones.

The plan to increase the tax-free “death gratuity” from $12,420 to $100,000 and provide an extra $150,000 in insurance will be part of the fiscal 2006 budget proposal, a Pentagon official said. The hike would be retroactive to the Afghanistan and Iraq wars.

David Chu, a Defense undersecretary, is to unveil the administration’s full proposal today.

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