Adds a new subsection (l) 'Special Rule for State Veterans Homes' that deems State homes inspected and certified by the Department of Veterans Affairs to meet the requirements of subsections (b) through (i) of section 1819 if specified documentation, standards alignment, oversight, and enforcement conditions are met; preserves Secretary's oversight and reporting authority.

Adds a new subsection (l) to section 1919 making the provisions of section 1819(l) applicable, with respect to Medicaid, to nursing facilities that are State homes inspected and certified by the Department of Veterans Affairs in the same manner and extent as under Medicare (title XVIII).