Among other things, the bill dramatically improves educational benefits for veterans who have served since 9/11. Webb made a new G.I. bill a central theme of his campaign in 2006, when he defeated one-term Republican Sen. George Allen.
Webb will receive his VFW honors and speak to the annual VFW convention in Orlando, Fla., on Tuesday.
George Lisicki, the VFW's commander in chief, said: "The VFW had been pushing for a new GI Bill for 10 years. We had called, written, testified, and met with every (congressional) member and staffer. We were greeted with sympathetic ears, but what we needed was a champion in the corner of America's newest 'Greatest Generation.' We needed someone who could reason and negotiate across party lines like a gentleman, yet push through obstacles with bulldog tenacity. That someone was Jim Webb."