38 USC 2302 - Funeral expenses

(a) In the case of a deceased veteran
(1) who at the time of death was in receipt of compensation (or but for the receipt of retirement pay would have been entitled to compensation) or was in receipt of pension, or
(2) who was a veteran of any war or was discharged or released from the active military, naval, or air service for a disability incurred or aggravated in line of duty, whose body is held by a State (or a political subdivision of a State), and with respect to whom the Secretary determines
(A) that there is no next of kin or other person claiming the body of the deceased veteran, and

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(B) that there are not available sufficient resources to cover burial and funeral expenses,

the Secretary, in the Secretarys discretion, having due regard to the circumstances in each case, may pay a sum not exceeding $300 to such person as the Secretary prescribes to cover the burial and funeral expenses of the deceased veteran and the expense of preparing the body and transporting it to the place of burial. For the purpose of this subsection, the term veteran includes a person who died during a period deemed to be active military, naval, or air service under section 106 (c) of this title.

(b) Except as hereafter provided in this subsection, no deduction shall be made from the burial allowance because of the veterans net assets at the time of the death of such veteran, or because of any contribution from any source toward the burial and funeral expenses (including transportation) unless the amount of expenses incurred is covered by the amount actually paid therefor by the United States, a State, any agency or political subdivision of the United States or of a State, or the employer of the deceased veteran. No claim shall be allowed
(1)  for more than the difference between the entire amount of the expenses incurred and the amount paid by any or all of the foregoing, or
(2)  when the burial allowance would revert to the funds of a public or private organization or would discharge such an organizations obligation without payment. The burial allowance or any part thereof shall not be paid in any case where specific provision is otherwise made for payment of expenses of funeral, transportation, and interment under any other Act.