A bill to amend title 38, United States Code, to clarify the entitlement to disability compensation of women veterans who have service-connected mastectomies, to provide permanent authority for counseling and treatment for sexual trauma, and for other purposes.

Requires the payment of veterans' disability compensation to a woman veteran for the anatomical loss of half or more of the tissue of (currently, all of the tissue of) one or more breasts suffered as a result of a service-connected disability.

Makes permanent (currently expires December 31, 2004) a program requiring the Secretary of Veterans Affairs to provide counseling to veterans to overcome psychological trauma resulting from a physical assault or battery of a sexual nature, or from sexual harassment, which occurred during active military service.

Requires a report from the Secretary to the congressional veterans' committees on the furnishing by the Veterans Health Administration of health care to women veterans.