Summary#
This bill helps employers who currently pay some workers with disabilities less than the regular minimum wage under special certificates issued under section 14(c) of the Fair Labor Standards Act. It creates competitive grants for States and for individual employers (certificate holders) to change their business and program models so these workers move into competitive integrated employment and receive regular wages. The bill phases in higher wage requirements over 4 years, stops issuing new special certificates to employers who did not already have them before the bill was introduced, and ends the legal effect of existing special certificates a short time after the phase-in period. The bill also funds a nonprofit to provide technical assistance, requires evaluations and annual reports, and sets rules for how services must meet home and community-based settings standards.
What it means for you#
- For individuals with disabilities who work under special certificates: The bill raises the allowed wage they can be paid step by step so that, starting 3 months after enactment, they move from 60% up to 100% of the federal minimum wage over 4 years. It aims to help them find and keep jobs in integrated workplaces and get community-based supports.
- For employers with special certificates: Employers must plan to transform their business and program models to provide competitive integrated employment, or apply for grants to help make the change. Employers that did not hold a special certificate before the bill’s enactment cannot get a new certificate.
- For State and local agencies: States can apply for 5-year grants to coordinate workforce, Medicaid, vocational rehabilitation, and other services, create advisory councils, and submit plans and data. States that successfully complete transformation may be eligible for additional Rehabilitation Act funding.
- For other employers and service providers: The bill funds technical assistance and requires practices and services to follow home-and-community-based services standards and Olmstead-related requirements.
Expenses#
- The bill authorizes $50,000,000 per year for fiscal years 2026 through 2031 to carry out the Act (except for the additional funding described below in section 102(f)).
- State grants (section 102) are for 5 years and must be at least $2,000,000 and not more than $10,000,000 for the 5-year period.
- Certificate holder grants (section 103) are for 3 years and must be at least $100,000 and not more than $500,000 for the 3-year period.
- The bill adds a new Rehabilitation Act section (sec. 611) to give additional grants to States that complete the transformation; it authorizes “such sums as may be necessary” for fiscal years 2030 through 2034 to carry out that section.
- The technical assistance grant to a nonprofit (title III) is for 6 years; the bill does not specify a dollar amount for that grant.
- No publicly available information on total projected costs beyond the authorizations listed above.
Proponents' View#
Supporters of the bill, as described in the bill text, intend it to:
- Help employers shift from segregated or subminimum-wage work models to competitive integrated employment that pays regular wages;
- Ensure individuals with disabilities, their families, and relevant State and local stakeholders guide the transformation;
- Prioritize people with the most significant disabilities for supports during and after transitions;
- Provide technical assistance, share replicable models, and evaluate results so other employers and States can follow successful approaches; and
- Coordinate Federal, State, and local programs (including Medicaid and vocational services) to improve employment outcomes.
Opponents' View#
No publicly available information.