The Department of Treasury began issuing $250 payments on 22 June 2009 to Veterans at the request of the VA as part of President Obama's stimulus package. All payments should be distributed by 30 June 2009.
This one time payment will be made to 1.9 million American Veterans for an estimated cost of $500 million. To be elgible for the $250, you must be Veteran who received VA compensation between Nov 2008 and Jan 2009. No application is required, as the VA will use payment records on file to determine eligibility and issue the distribution.
The payment is tax-free. More information is available from the VA website.