Senate Appropriations Committee passes their Labor/HHS/Ed Bill

I wanted to share the excellent news that on August 1, 2025, the Senate Appropriations Committee had its markup and passed a bipartisan Labor-H FY 2026 appropriations bill, including statutory language for VR on page 293 in the Committee report and language in the bill (pg. 153). The bill provides $197 billion in discretionary funding for the departments of Labor, Education, and Health and Human Services.

This is a fantastic start. The Department of Education would receive $79 billion in discretionary funding, which includes boosts to K-12 funding. The bill includes language that would prevent the dismantling of the Education Department. The legislation includes $18.5 billion for Title I-A grants, a $50 million increase over the fiscal 2025 enacted amount, and $15.2 billion for IDEA Special Education State grant programs, also a $50 million increase over fiscal 2025 levels. The legislation would provide $4 billion for the Employment and Training Administration, up slightly from $3.9 billion in fiscal 2025, according to the committee report. The bill includes $2.9 billion in such workforce formula grants. See the bill and the committee report.

Here is a summary of the FY 2026 Appropriations for rehabilitation services as recommended by the committee:
Total Funding

• Administration Request: $4,533,156,000
• Committee Recommendation: $4,647,295,000 with COLA

Key Program Allocations and Directives Vocational Rehabilitation (VR) State Grants

• Funding: $4,504,096,000 (mandatory)
• Purpose: Supports states in helping individuals with physical and mental disabilities prepare for and obtain meaningful employment.
• Adjustment: Includes an inflationary increase based on the CPI–U, in line with the authorizing statute.

Disability Innovation Fund (DIF)

• Use: Competitive grants to eligible entities partnering with State VR agencies.
• Increase competitive integrated employment for youth and adults with disabilities.
• Priority: States that returned funds to RSA or have low disability labor force participation.
• Oversight: Biannual briefings to Congressional committees on DIF activities.

Client Assistance State Grants

• Funding: $13,000,000 (discretionary)
• Purpose: Helps clients understand VR program benefits; a required program for receiving VR funds.

Training Program

• Funding: $29,388,000
• Purpose: Grants for training new VR personnel and upskilling current staff.

Demonstration and Training Programs

• Funding: $5,796,000
• Purpose: Develop and expand employment services for individuals with disabilities.
• Requirement: Maintain at least FY 2024 funding for parent information and training programs.

Protection and Advocacy of Individual Rights

• Funding: $20,150,000
• Purpose: Grants to protect the legal and human rights of individuals with disabilities not covered under other protection and advocacy acts.

Supported Employment State Grants

• Funding: $22,548,000
• Purpose: Employment support for individuals with significant disabilities, including youth.

Independent Living Services for Older Individuals Who Are Blind

• Funding: $33,317,000
• Purpose: Helps individuals aged 55+ adjust to blindness and maintain independence through training, counseling, devices, and screening.

Helen Keller National Center*

• Funding: $19,000,000
• Purpose: National support and specialized services for deaf-blind individuals through a central facility, regional offices, and affiliates.

The Committee provides $43.4 million to support the American Printing House for the Blind (APH), which supplies educational materials to legally blind students in elementary and secondary education. These materials—such as Braille textbooks, large print, recorded formats, assistive technologies, and specialized educational aids — are distributed free to schools and states based on the number of blind students.

The funding covers:

• Staff salaries, equipment, and acquisitions related to APH’s mission.
• Up to $5 million for the production and distribution of an innovative Braille and tactile display.
• Up to $6 million for the Center for Assistive Technology Training regional partnership.

APH’s federal subsidy accounts for about 65% of its total sales income and supports training and support for educators, parents, and students to enhance educational participation and outcomes for blind or visually impaired students.

This funding package also includes language that ED can’t move OESE or OSEP to another federal agency, and ideally that would include all the ED offices. Also, this package reflects a commitment to increasing employment and independence for individuals with disabilities through state grants, innovation funding, training, advocacy, and specialized services.