S.1266: A bill to amend title 38, United States Code, to increase assistance for veterans interred in cemeteries other than national cemeteries, and for other purposes.

Veterans' Dignified Burial Assistance Act of 2007 - Increases from $300 to $400 the burial plot allowance paid for veterans interred in cemeteries other than national cemeteries. Waives the requirement that, for a state to receive such allowance for the reimbursement of burial costs, it must file for such within two years after the burial or cremation of the veteran.

Authorizes the use of up to $5 million per year under the Department of Veterans Affairs (VA) state cemetery grant program for operating and maintaining state cemeteries.