The federal government is authorized to make grants to state vocational rehabilitation (VR) agencies. These grants support services to aid individuals with disabilities in preparing for and engaging in employment. The VR state grants program was reauthorized in July 2014 by the Workforce Innovation and Opportunity Act of 2014 (WIOA; P.L. 113-128 ). Authorizing Legislation and 2014 Reauthorization

The VR grants to states program is authorized by Title I of the Rehabilitation Act of 1973, as amended. In 1998, the Rehabilitation Act was reauthorized in conjunction with other employment programs as Title IV of the Workforce Investment Act of 1998 (WIA, P.L. 105-220 ). These automatic reauthorization provisions specified that each year's appropriation for VR state grants must equal the prior year's appropriation plus an increase equal to inflation. Similar to the WIA legislation in 1998, WIOA reauthorized a group of employment and workforce development programs. Title IV of WIOA reauthorized programs in the Rehabilitation Act, including VR state grants. WIOA amends the Rehabilitation Act to allow states to spend VR funds on outreach, technical assistance, and other services to employers that provide opportunities for VR clients. This report will discuss the statutory provisions of the VR state grants program, as amended by WIOA. Federal Administration of VR Grants

VR state grants are administered at the federal level by the Rehabilitation Services Administration (RSA) of the Department of Education (ED). WIOA authorizes $3,302,053,000 per year for VR state grants for FY2015 through FY2020. Funding Formula for State Grants

The annual appropriation for VR grants is allotted to states using a formula. In these cases, the state's federal grant is reduced and the remaining funds are made available to other states. State Plans

To be eligible for a VR grant, each state must submit and have approved a unified state plan (USP). Required components of the VR portion of the USP include
how the state will implement an order of selection waiting list if all eligible clients cannot be served; how the state will develop and maintain a comprehensive system of personnel development and maintain an adequate supply of qualified VR personnel; assurance that prior to providing a service with VR funds, a state agency will determine if comparable benefits or services are available from another source; assurance that the state will produce an annual report with detailed data on the characteristics of individuals served, the nature of their services, and the nature of their employment outcomes (see the " Additional Reporting Requirements " section later in this report); how the state VR agency will establish cooperative agreements with other stakeholders, including other workforce system partners, the state agency responsible for the public education of students with disabilities, employers, and other specified entities; and assurance that the state will conduct a triennial assessment of the rehabilitation needs of specified subpopulations of individuals with disabilities and provide strategies and reports of progress in meeting these needs. A determination that an individual is ineligible for VR services must be individualized and based on a full consultation with the applicant. An IPE is statutorily required to include the following items:
the specific employment outcome chosen by the client, consistent with the client's strengths, capabilities, and interests and consistent with the general goal of competitive integrated employment; the specific VR services that are necessary to achieve the specified employment outcome; the timeline for starting services and achieving the employment outcome; the specific entity, selected by the client, from which services will be obtained; the criteria that will be used to evaluate the progress made by the client; the responsibilities of the client, the VR agency, and other entities included in the IPE; if the client is pursuing supported employment, the extended services needed by the individual; and if necessary, the projected need for post-employment services. Pre-employment Transition Service

As noted previously, WIOA requires each state to reserve 15% of its VR grant for pre-employment transition services for youth with disabilities.
The federal government is authorized to make grants to state agencies for vocational rehabilitation (VR) services. These grants support services to help individuals with disabilities prepare for and engage in employment. VR state grants are administered at the federal level by the Rehabilitation Services Administration (RSA) in the Department of Education (ED).
The VR state grants program is authorized by Title I of the Rehabilitation Act of 1973, as amended. The Rehabilitation Act was amended and the VR state grants program was reauthorized in July 2014 by Title IV of the Workforce Innovation and Opportunity Act of 2014 (WIOA; P.L. 113-128). WIOA reauthorized a group of workforce programs, most of which were last authorized by the Workforce Investment Act of 1998 (P.L. 105-220). Title IV of WIOA authorizes appropriations for VR state grants through FY2020 and amends the Rehabilitation Act to make a number of changes to the VR state grants program. This report will discuss the VR state grants program as amended by WIOA.
Funding for VR state grants is mandatory funding. Statute requires that each year's appropriation must equal the prior year's appropriation plus an increase equal to inflation. In FY2015, funding for VR state grants was approximately $3 billion.
VR funds are allotted to state VR agencies via formula. Each state is required to match a portion of its federal grant. If a grantee does not provide its full match, the unmatched funds are made available to other states. To be eligible for a federal grant, each state much have an approved state plan. WIOA requires states to develop a unified state plan that describes how it will coordinate and align WIOA-authorized programs (including its VR program) to meet its local workforce development needs.
Individuals' eligibility for VR services is determined by state VR agencies. To be eligible for services, an individual must (1) have a disability that constitutes or results in a substantial impediment to employment and (2) require VR services to achieve an employment outcome. If a state is not able to serve all eligible clients, priority is given to clients with the most severe disabilities.
After an individual is determined to be eligible for VR services, the client works with VR personnel to develop an individualized plan for employment (IPE). The IPE describes the client's employment objective and how the VR agency will provide or coordinate services to achieve it. Employment objectives are determined by the client but generally must be consistent with the principle of competitive integrated employment (i.e., employment in the community, earning a wage comparable to similar workers who do not have disabilities).
Services for each client are individualized to the client's employment objective as well as the client's strengths and interests. VR services can include (but are not limited to) counseling, job search and placement assistance, training and education, and post-employment support services. States may also use their VR funds for outreach and other services to employers. Statute requires that at least 15% of each state's VR grant be allocated to pre-employment transition services for students with disabilities.