INCREASE IN SETTLEMENT AUTHORITY.

SECTION 1. INCREASE IN SETTLEMENT AUTHORITY. Section 3721 of title 31, United States Code, is amended— (1) in subsection (b) by striking out “$25,000” and inserting in lieu thereof “$40,000”; and (2) by amending subsection (c) to read as follows: “(c) On paying a claim under this section, the Government is subrogated for the amount of the payment to a right or claim that the claimant may have against a foreign country for the damage or loss for which the Government made the payment.”.