Rehabilitation Act: Major Programs, 105th Congress Legislation, and Funding

Publication Date: June 1998

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Education

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Abstract:

The Rehabilitation Act of 1973 provides comprehensive vocational rehabilitation (VR) services to help individuals with physical and mental disabilities become employable and achieve independence. Authorization of appropriations for the Act expired at the end of FY1997.

The Act’s major program, the federal-state VR program under Title I, provides formula grant funds to states for VR services. Funded at $2.2 billion for FY1998, it represents 88% of total funding under the Act. Persons are eligible for VR services if they have a physical or mental impairment that results in a substantial impediment to employment. Under the law, all individuals with disabilities are presumed to benefit from VR services, unless evidence is shown otherwise. The program is required to give priority to persons with severe disabilities.

In FY1995, over 1.25 million persons were served. In FY1995, over 209,500 persons were rehabilitated, of whom 76% had severe disabilities. Persons are considered as “rehabilitated” if, after receiving VR services, they maintain a suitable rehabilitation objective, usually employment, for at least 90 days. The Act also authorizes research, training, and demonstration programs; independent living programs; and the National Council on Disability, among other programs.

On May 16, 1997, the House passed H.R. 1385, the Employment, Training, and Literacy Enhancement Act of 1997, which would reauthorize the Act through FY2000. Among other things, H.R. 1385 would allow persons with disabilities the option to assume primary responsibility for their individualized plans for employment (IPE) (now called individualized written rehabilitation programs (IWRP)) and would clarify and expand consumer choice provisions. In approval of H.R. 1385, the Committee on Education and the Workforce indicated that the Act needs significant and careful review, and, for a number of reasons, is unable to
complete a comprehensive review during the 105th Congress. The Committee indicated that there will be major reform of the program during the 106th Congress.

On May 5, 1998, the Senate passed its version of H.R. 1385, the Workforce Investment Partnership Act of 1998, which incorporates the Rehabilitation Act Amendments of 1998 (approved by the Committee on Labor and Human Resources as S. 1589). The bill takes a more expansive approach to amending the Act than the House bill. Among other things, it would link the VR program to services that would be available under Workforce Investment Partnership Act of 1998. It would also give consumers more responsibility in developing their individualized rehabilitation employment plans (IREP); simplify eligibility requirements by presuming that recipients of social security disability and supplemental security income are eligible for VR services; and require states to make information and referral services available to consumers who do not meet state requirements for VR services.

FY1998 appropriations for Rehabilitation Act programs are $2.553 billion. The President has requested $2.613 billion for FY1999.