Thanks to the comment from Ariel, and a post from Ryan at The Military Wallet, I did a bit of research on these veterans' bonuses I have heard a little bit about. It seems that quite a few states are giving some sort of rebate to veterans. In nearly all cases, the service member must have been a resident of the state when they entered the service, and be a resident of the state at the time of application. Look through this list and see if anyone you know might be eligible -spread the word! The total funds available are limited in some states, so don't delay. I hope to hear that someone is eligible for some of these programs:

Alabama: Bonus payment to any service member who was a prisoner of war North Vietnam, South Vietnam, Laos or Cambodia. This is also available to survivors of POWs who died while a prisoner.

See the Alabama Veterans' Benefits page.

Illinois: Offers two separate bonus programs, one for World War II and one for Korean, Vietnam and the Persian Gulf Conflict.

World War II $10 per month for domestic service and $15 per month for foreign service is payable to a veteran who was a resident of Illinois at time of entering service, served at least 60 days on active duty between September 16, 1940 and September 3, 1945, and received an honorable discharge. Survivors are entitled to a benefit of $1,000, if the veteran's death was service-connected and within the period specified.

$10 per month for domestic service and $15 per month for foreign service is payable to a veteran who was a resident of Illinois at time of entering service, served at least 60 days on active duty between September 16, 1940 and September 3, 1945, and received an honorable discharge. Survivors are entitled to a benefit of $1,000, if the veteran's death was service-connected and within the period specified. Korea $100 for service between June 27, 1950 and July 27, 1953, and receipt of the Korean Service Medal

$100 for service between June 27, 1950 and July 27, 1953, and receipt of the Korean Service Medal Vietnam $100 for service between January 1, 1961 and March 28, 1973, and receipt of the Vietnam Service Medal or the Armed Forces Expeditionary Medal Vietnam Era

$100 for service between January 1, 1961 and March 28, 1973, and receipt of the Vietnam Service Medal or the Armed Forces Expeditionary Medal Vietnam Era Persian Gulf Conflict $100 for service between August 2, 1990 and November 30, 1995 and receipt of the Southwest Asia Service Medal.

For more information, see the Illinois Department of Veterans Affairs Benefits page

New Hampshire: Their Global War on Terrorism Bonus was scheduled to expire on June 11, 2009, but there are provisions for the acceptance of applications after that date. Since the conflict is still happening, I imagine there is some way around it.

Global War on Terrorism Bonus of $100. vailable to anyone who served on active duty on or after September 11, 2001 and on or before a date to be determined by the Secretary of Defense, and who earned the Global War on Terrorism Expeditionary Medal or Afghanistan Campaign, or Iraq Campaign Medal; and who was discharged, released or has a certificate of service there from, with an honorable discharge, or who is missing in action or who was killed in action.

There is also the possibility to file for service during the Vietnam conflict or service during the Persian Gulf War.

See the New Hampshire State Department of Veterans Services War Bonus page

Ohio: Payments to any veteran on active duty anywhere in the world for purposes other than training between August 2, 1990 and March 3, 1991 or any time since October 7, 2001.

Up to $100 per month of eligible duty in Iraq (since March 19, 2003), Afghanistan (since October 7, 2001) or the Persian Gulf (August 2, 1990-March 3, 1991, up to a maximum of $1000

Up to $50 per month of eligible active duty elsewhere during the same time period, up to a maximum of $500

Total maximum possible benefit of $1500

See the Ohio Veterans Bonus Program Website

Pennsylvania: Offers the Persian Gulf Veterans Bonus program.

Service in the Persian Gulf from August 2, 1990 to March 3, 1991, and receipt of the Southwest Asia Service Medal

Bonus payment of $75 for each month (or major fraction thereof) of service.

See the Pennsylvania Persian Gulf Veterans Bonus Program

South Dakota: Offers a $500 bonus for military members who were South Dakota residents for the six months preceding their military service and served during the following dates:

August 2, 1990 to March 3, 1991 - All active service counts for payment.

March 4, 1991 to December 31, 1992 - Only service in a hostile area qualifying for the Southwest Asia Service Medal counts for payment.

January 1, 1993 to September 10, 2001 - Only service in a hostile area qualifying for any United States campaign or service medal awarded for combat operations against hostile forces counts for payment.

September 11, 2001 to a date to be determined - All active service counts for payment.

Service both before December 31,192 and after January 1, 1993 may qualify you for two $500 bonuses.

For more information, see the South Dakota Veterans Bonus page

West Virginia: Offers a bonus to veterans who served in Afghanistan, Iraq or Kosovo.

Payment of $600 for eligible service members who served in a combat zone and earned the applicable campaign badge or expeditionary medal.

Payment of $400 for eligible service members who served during the applicable time periods but did not meet the qualifications for the $600 payment.

Payment of $2000 to the survivor of a military member killed in action during the applicable times.

For more information, see the West Virginia Veterans' Bonus web page

Please, send a link to anyone you know who might be eligible for these bonuses!

UPDATE 17 September 2010: For information on Iowa and Massachusetts bonus programs, please see More State Veterans Bonuses.