Statutory Authority
Section 111(a)(2)(B) of the Rehabilitation Act of 1973 requires the amount payable to a State for a Federal fiscal year (FFY) be reduced by the amount by which expenditures from non-Federal sources under the State VR Services program for any previous FFY are less than the total of such expenditures for the FFY two years prior to that previous fiscal year. For example, this means that a State's VR expenditures from non-Federal sources in FFY 2021 must equal or exceed its VR expenditures from non-Federal sources in FFY 2019. If a State has less VR expenditures from non-Federal sources in FFY 2021 than it had in FFY 2019, the Secretary must reduce the State's allotment in a subsequent fiscal year by the deficit amount.
Although compliance with the maintenance of effort (MOE) requirement is determined for the State as a whole (34 C.F.R. § 361.62(c)(1)), the remedy for a MOE deficit is satisfied by each agency, when a State has two VR agencies, in proportion to the amount each contributed to the State’s total MOE deficit (34 C.F.R. § 361.62(c)(2)).
MOE Deficit Letters
FFY 2027 Award Reductions
- District of Columbia (2024)
- Hawaii (2024)
- Idaho (2019 and 2021)
- New Hampshire (2024)
- North Carolina (2024)
- New Mexico (2024)
- Tennessee (2024)
- Virgin Islands (2024)
FFY 2026 Award Reductions
- Alaska
- American Samoa
- Arkansas (2021)
- California
- Connecticut
- Delaware
- District of Columbia (2023)
- Hawaii
- Indiana
- Kansas (2022)
- Maine
- Michigan
- Missouri (2020)
- Montana
- Nebraska
- Nevada (2022)
- New Mexico
- New York (2022 Revised)
- New York (2023 Revised)
- North Dakota
- Oregon (2020)
- Pennsylvania (2022)
- Wisconsin
- Wyoming
FFY 2025 Award Reductions
- Alaska
- Arkansas
- American Samoa
- Delaware (2022)
- Delaware (2021)
- Georgia
- Georgia (Update)
- Idaho
- Michigan
- Minnesota
- North Carolina
- Oklahoma
- Puerto Rico
- Rhode Island
- South Carolina
- Virgin Islands
- Washington
- Wyoming