Amends 5 U.S.C. 8102a by revising subsection (a) text, adding a new paragraph providing for an annual March 1 CPI-based adjustment, replacing subsection (c) with a 'Relationship to other benefits' provision reducing payments by amounts payable under other programs funded in whole or in part by the United States (excluding amounts payable under section 5569(d)) for deaths on or after enactment, adding subsection (d)(7) to direct payment to the personal representative if no eligible survivors or alternate designee exist, and adding subsection (f) to provide that payments under the section are not includible in gross income under the Internal Revenue Code of 1986.

Makes multiple amendments to 22 U.S.C. 3973: replaces the term 'dependents' with 'beneficiaries'; revises the provision governing executive agencies to require death gratuity payments to 'surviving beneficiaries' and to explicitly include individuals in a special category serving in an uncompensated capacity as identified in guidance; replaces the guidance subsection language; removes the prior subsection (d) and instead requires a Secretary of Labor determination under 5 U.S.C. 8102 that the death resulted from an injury; adds an offset provision reducing payments by amounts payable under other U.S.-funded programs (with a specified exclusion); redefines 'surviving beneficiaries' by reference to the order of precedence in 5 U.S.C. 5571(c)(2); and adds an express tax exclusion for payments under this section.

Amends 10 U.S.C. 1478 by adding a new subsection (e) (Tax treatment) providing that a payment under this section shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986. Also inserts additional text into subsection (a).

Amends 5 U.S.C. 8134(a) to replace the $800 funeral expenses payment with $8,800, require annual March 1 adjustments by the percentage determined by the Secretary of Labor under section 8146a, and provide that payments under the subsection are not includible in the recipient's gross income for purposes of the Internal Revenue Code of 1986.

Adds new section 5571 to title 5 establishing employee death gratuity payments: definition of employee, exclusive authority for the Secretary of Labor to make the determination, conditions under which agencies must pay a death gratuity, the amount ($100,000) and annual CPI adjustment mechanism, order of precedence for recipients, and tax exclusion for the payment.

Repeals section 651 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (codified at 5 U.S.C. 8133).

Amends 49 U.S.C. 40122(g)(2) to add a new subparagraph (K) making section 5571 (death gratuity) applicable as provided.

Amends the codified Aviation and Transportation Security Act provision (49 U.S.C. 44935 / section 111(d)(2)) to add a new subparagraph making section 5571 of title 5 applicable to individuals appointed under paragraph (1).

Amends 38 U.S.C. 7425 by adding a new subsection (d) requiring the Administration to provide the death gratuity under 5 U.S.C. 5571 with respect to individuals appointed to positions described in section 7421(b) who are employed for compensation by the Administration.