The increase will be paid for using casino patron fees. It will provide a permanent funding stream for about 1,300 veterans across the state.
"I think it gives us a lot relief knowing," Betty Stewart, a Marine Corp veteran who lives at the Mt. Vernon Veterans Home, says. "I couldn't stay here if I didn't get something."
The fund was expected to run out of money by next year.
"With the passing of this bill, we'll be able to replenish those funds and continue to support all seven homes throughout the state," James Dennis, Administrator at Mt. Vernon Veterans Home, says.
Gov. Nixon will be at the veterans home in Mt. Vernon on Friday.