Reallotment Information

The 17 VR agencies listed in Table 1 relinquished a total of $196,532,641 in VR program funds.

Table 1: Funds Relinquished by Agency

After including the maintenance of effort (MOE) reductions from the FFY 2025 awards ($18,062,284), the total reallotment pool is $214,594,925. Of State VR agencies, 32 requested a total of $339,283,350 in reallotment funds. The amount of funds requested in reallotment exceeds the amount of funds relinquished by $142,750,709.

Because the amount of funds requested exceeds the amount of funds relinquished, the following processes were observed in determining the amount of funds agencies received:

1. States receiving less VR funds under the current FFY formula allotment than in the prior year’s formula allotment were given preference up to the difference between the two formula award amounts.
2. Agencies with a current year MOE deficit had the MOE deficit amount deducted from the available pool of reallotment funds before determining the amount of additional VR funds awarded to the agency through the reallotment process. This process ensured that States did not benefit from their own MOE deficit reduction amounts.
3. The remainder of the funds available for reallotment was distributed using the statutory formula as was done with the FFY 2025 appropriations.
4. No State received more in reallotment than was requested. 

Table 2 displays VR agencies that requested FY 2025 reallotment funds and the amount of funds they requested, the amount awarded, and the percentage of their request the agency received.

Table 2: Reallotment Funds Requested and Amounts Awarded

The 15 VR agencies listed in Table 1 relinquished a total of $138,583,448 in VR program funds.

Table 1: Funds Relinquished by Agency

After including the maintenance of effort (MOE) reductions from the FFY 2024 awards ($35,833,135) in accordance with section 111(a)(2)(B) of the Rehabilitation Act of 1973 (Rehabilitation Act), the total reallotment pool was $174,416,583. Of 78 State VR agencies, 34 (44 percent) requested a total of $334,788,129 during reallotment. The amount of funds requested for reallotment exceeds the amount of funds available by $160,371,546.

RSA prioritized the Idaho Division of Vocational Rehabilitation’s (IDVR) request for reallotted funds because, due to IDVR’s dire financial circumstances, IDVR anticipated an immediate cessation of all VR program activities. IDVR accepted terms and conditions for the reallotted funds to prevent the interruption in the provision of VR services to those IDVR participants already receiving such services under approved Individualized Plans for Employment. As a result, RSA awarded IDVR $10 million in additional Federal funds in accordance with section 110(b)(2) of the Rehabilitation Act, thereby assisting the State to avoid the immediate shutdown of the VR program.

The remainder of the reallotment funds were distributed consistent with the following process:

1. VR Agencies with a current year MOE deficit had the MOE deficit amount deducted from the available pool of reallotment funds before determining the amount of additional VR funds awarded to the agency through the reallotment process. This process ensured that States did not benefit from their own MOE deficit reduction amounts.
2. RSA distributed the remainder of the funds available for reallotment using the statutory formula.
3. No State received more in reallotment than was requested.

Table 2 displays VR agencies that requested FY 2024 reallotment funds and the amount of funds they requested, the amount awarded, and the percentage of their request the agency received.

Table 2: Reallotment Funds Requested and Amounts Awarded