Issue Brief 24-08
May 9, 2024

This is a revision of the brief that was issued on May 8. Thanks to a watchful eye in Ohio for bringing the error to our attention.

The Vocational Rehabilitation (VR) program provides vocational and rehabilitative services to individuals with disabilities to help them prepare for, secure, regain, or retain employment. The state grant component (CFDA 84.126) is a mandatory formula grant funded in annual appropriations bills.

In a departure from usual practice, the enacted budget for fiscal year (FY) 2024 for the Department of Homeland Security (DHS) rescinded some funding for Vocational Rehabilitation State Grants that was appropriated in the Department of Education (ED) portion of the same bill. In so doing, it reduced mandatory spending by almost $287 million (7%), freeing up those funds to support higher funding for discretionary programs. This brief explains the change and provides revised state estimates for FY 2024.