All money so paid to and received by the American Legion shall be expended by it in furnishing temporary income; subsistence items such as food, wearing apparel, shelter and related expenses; medical or surgical aid or care or relief (1) to, or in bearing the funeral expenses of, soldiers, sailors or marines (A) (i) who performed service in time of war, as defined in § 27-103, in any branch of the military service of the United States, including the Connecticut National Guard, or (ii) who were engaged in any of the wars waged by the United States during said periods in the forces of any government associated with the United States, (B) who are or were veterans, as defined in § 27-103, and (C) who were citizens or resident aliens of the state at the time of entering said armed forces of the United States, including the Connecticut National Guard, or of any such government, (2) to their spouses who are living with them, (3) to their widows or widowers who were living with them at the time of death, or (4) to dependent children under eighteen years of age, who may be in need of the same. All such payments shall be made by the American Legion under authority of its bylaws, which bylaws shall set forth the procedure for proof of eligibility for such aid, provided payments made for the care and treatment of any person entitled to the benefits provided for herein, at any hospital receiving aid from the General Assembly unless special care and treatment are required, shall be in accordance with the provisions of § 17b-239, and provided the sum expended for the care or treatment of such person at any other place than a state-aided hospital shall in no case exceed the actual cost of supporting such person at the Healthcare Center in Rocky Hill maintained by the Department of Veterans Affairs, unless special care and treatment are required, when such sum as may be determined by the treasurer of such organization may be paid therefor. Upon the completion of the trust provided for in § 27-138, the principal fund shall revert to the State Treasury.