Teacher Victims' Family Assistance Act of 2003 - Directs the Secretary of Education to provide assistance to the immediate families of teachers or other school employees who are killed by an another person's violent act during their performance of duties for a public or private elementary or secondary school (teacher-victims).Includes among such assistance: (1) funeral assistance; (2) a death benefit payment to the surviving spouse, dependent child, or other next of kin; (3) monthly living assistance for the surviving spouse until death or remarriage and for each dependent child until age18; and (4) undergraduate education assistance for each dependent child for five years or until age 25.Amends the Internal Revenue Code to exclude from income: (1) a teacher-victim's wages in the year of death; and (2) teacher victim family assistance under this Act in any taxable year.Directs the Secretary of Health and Human Services to allow a teacher-victim's surviving spouse until remarriage, and each dependent child up to age 25, to elect to be deemed to be entitled to hospital insurance benefits and enrolled for supplementary medical insurance benefits under Medicare, and to enroll for a Medigap supplemental policy, under the Social Security Act.
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