Rehabilitation Services Vocational Rehabilitation Grants to States

To assist States in operating comprehensive, coordinated, effective, efficient and accountable programs of vocational rehabilitation (VR); to assess, plan, develop, and provide VR services for individuals with disabilities, consistent with their strengths, resources, priorities, concerns, abilities,
capabilities, and informed choice so they may prepare for and engage in competitive integrated employment.

Agency - Department of Education

The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
Human Services, Illinois Department Of $ 117,477,921   2019-10-012020-09-30
Labor, Maine Department Of $ 13,637,723   2019-10-012020-09-30
Human Services, North Dakota Department Of $ 11,172,659   2019-10-012020-09-30
Health & Human Services, North Carolina Department Of $ 104,232,578   2019-10-012020-09-30
Health & Human Services, North Carolina Department Of $ 16,968,094   2019-10-012020-09-30
Education, Florida Department Of $ 35,739,808   2019-10-012020-09-30
Workforce Commission, Texas $ 287,841,641   2019-10-012020-09-30
Labor And Economic Opportunity, Michigan Department Of $ 17,268,588   2019-10-012020-09-30
Labor And Economic Opportunity, Michigan Department Of $ 8,655,614   2019-08-112020-09-30
Government Of The Northern Mariana Islands $ 873,491   2019-10-012020-09-30

Program Accomplishments

Fiscal Year 2016: State VR agencies assisted approximately 186,714 individuals with disabilities to achieve an employment outcome. Fiscal Year 2017: No Current Data Available. Fiscal Year 2018: No Current Data Available

Uses and Use Restrictions

Federal and State funds are used to cover the costs of providing VR services, which include: assessment, counseling, vocational and other training, job placement, reader services for the blind, interpreter services for the deaf, medical and related services and prosthetic and orthotic devices, rehabilitation technology, transportation to secure VR services, maintenance during rehabilitation, and other goods and services necessary for an individual with a disability to achieve an employment outcome.

Services are provided to families of disabled individuals when such services contribute substantially to the rehabilitation of such individuals who are receiving VR services.

Funds can also be used to provide VR services for the benefit of groups of individuals with disabilities including the construction and establishment of community rehabilitation programs.

Eligibility Requirements

Applicant Eligibility

State agencies in all States (including territories/possessions) designated as the State agency to administer the VR program may receive funds with the submission and approval a VR services portion of the Unified or Combined State plan in accordance with section 101(a) of the Rehabilitation Act of 1973, as amended.

Beneficiary Eligibility

In order to be eligible for VR services, an individual must have a physical and/or mental impairment, which, for such an individual, constitutes or results in a substantial impediment to employment, and requires VR services to achieve an employment outcome.


No Credentials or documentation are required. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. State VR agencies are required to submit a VR services portion of the Unified or Combined State Plan describing the manner in which they will administer the VR and Supported Employment programs in their States. The State is not required to submit any policies, procedures or descriptions related to its State Plan that have been previously approved and demonstrate that the State currently meets applicable requirements of Title I of the Workforce Innovation and Opportunity Act (WIOA) and the requirements of the Rehabilitation Act, as amended by Title IV of WIOA. However, State agencies are required to update certain attachments to the VR services portion of the Unified or Combined State Plan.

Award Procedures

Grant awards are made to State VR agencies with an approved VR services portion of the Unified or Combined State plan. States are notified of their annual allotment under the funding formula. Grant funds are withdrawn under the Electronic Transfer System.


Jul 01, 2016 Jul 01, 2016 States were required to submit four-year Unified or Combined State Plans, including the VR services portion of the Unified or Combined State Plan, to the Department of Labor by March of 2016 for an effective date of July 1, 2016. States must submit a State Plan modification to their plan in March 2018 for an effective date of July 1, 2018. The next four-year plan is due in March of 2020.


Rehabilitation Act of 1973, as amended,, Title I, Part A and B, Section 100-111.

Range of Approval/Disapproval Time

Approval of the Unified or Combined State Plan, including approval of the VR services portion of that plan, is governed by sections 102 or 103 of Title I of WIOA.


Appeal procedures are governed by sections 102 or 103 of Title I of WIOA, as appropriate.


Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title I, Part B, section 110. (29 USC 730). Funds are distributed based on population weighted by per capita income. The statistical factors for fund allocation are: per capita income 3-year average by State (Bureau of Economic Analysis estimates) and U.S. total and State population (Annual Population Estimates, Bureau of the Census). Matching Requirements: The matching requirement is 78.7 percent Federal and 21.3 percent Non-Federal funds for the total of all expenditures incurred under the VR program. . This program has a maintenance of effort (MOE) requirement. The MOE level is based on the amount of the State's non-Federal expenditures under the VR program for the Federal fiscal year two years earlier; see funding agency for further details. Each State is also required to reserve and use at least 15 percent of their Federal VR State Grant award to provide or arrange for the provision of pre-employment transition services for students with disabilities provided in accordance with section 113 of the Rehabilitation Act. This program has MOE requirements, see funding agency for further details.

Length and Time Phasing of Assistance

Funds become available for obligations for the fiscal year for which they are appropriated and may remain available for an additional year if the matching requirement is met in the year of the appropriation. Grant awards are issued biannually (1st and 4th quarter). See the following for information on how assistance is awarded/released: Electronic Transfer.

Post Assistance Requirements


Program report: Annual and quarterly reports.

No cash reports are required.

Progress report: Annual and quarterly reports.

Expenditure reports: semi-annual financial reports (Federal Financial Report (SF-425).

Performance monitoring: The Rehabilitation Act requires the conduct of annual reviews and periodic on-site monitoring of whether a State VR agency is WIOA for core programs.


In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Conducted by ED Office of Inspector General and by site visits of regional staff. Both are periodic but no set schedule.


Case service records for individual consumers. Financial and programmatic records must be kept for a prescribed period of three years (2 CFR part 200, Subpart D?Post Federal Award Requirements).

Financial Information

Account Identification



(Formula Grants) FY 16 $3,118,129,640; FY 17 est $3,121,054,000; and FY 18 est $3,182,038,000

Range and Average of Financial Assistance

In FY 2017 annual allotments to States, including D.C. and Puerto Rico ranged from $10.4 million to $303.3 million, with a median award of $43.4 million. Grants to outlying areas ranged from $0.8 million to $2.9 million.

Regulations, Guidelines, and Literature

Vocational Rehabilitation Regulations (34 CFR part 361). Rehabilitation Services Policy Directives and Technical Assistance Circulars. Uniform Guidance, 2 CFR part 200.

Information Contacts

Regional or Local Office


Headquarters Office

Carol Dobak, Department of Education, OSERS Rehabilitation Services Administration 400 Maryland Ave., S.W., Washington , District of Columbia 20202 Email: Phone: (202) 245-7325.

Criteria for Selecting Proposals

Not Applicable.

Social Entrepreneurship

Establishing a Social Enterprise Curriculum

Establishing a Social Enterprise Curriculum

Several British colleges and universities have embraced social entrepreneurship in their curriculum. Pathik Pathak at Southampton have introduced n interdisciplinary module in Social Enterprise, which is open to students of all year groups and across all disciplines.

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