In the recent past Reductions in Force of the USA military combined with increasing numbers of deaths of aging veterans caused reduced participation of the DoD in providing military honors during the burial of a veteran. To address this problem the DoD, various Veteran Service Organizations and Funeral Service Directors organizations cooperated to form a new DoD program called "Honoring Those Who Served”. A law was passed, which now requires, that all eligible veterans will be provided basic military funeral honors when requested.
As stated above, there is a ceremony where the flag is folded and presented to the next of kin and Taps is played live or recorded).
These basics are to be performed by at least 2 active duty military personnel, at least one of who is from the veteran’s parent Service. This representative will be the one to present the flag to the next of kin.. Additional persons participating in the ceremony may be drawn from Reserve personnel and/or members of various Veteran Service Organizations (after the DoD has trained them) as well as active duty military personnel.
SOURCES:
http://www.dav.org/magazine/2000-3/Full_Military_Ho1447.html
www.militaryfuneralhonors.osd.mil
http://www.cem.va.gov/scgpinfo.htm
The law (part of the United States Code): can be found at
http://www.militaryfuneralhonors.osd.mil/law.html and is titled:
‘LAWS RELATING TO FUNERAL HONORS FUNCTIONS AT FUNERALS OF VETERANS, AS AMENDED OR ENACTED BY SECTION 578 OF PUBLIC LAW 106–65