Sponsors (8)
Introduced July 24, 2025 by Christopher Van Hollen · Last progress July 24, 2025
The bill aims to raise wages and expand supports so many people with disabilities can move from subminimum‑wage certificate work into competitive integrated employment, but it imposes real costs, administrative burdens, and transition risks for employers, providers, taxpayers, and some service recipients.
People with disabilities will receive higher pay: workers paid under 14(c) will see phased increases and be paid at least the higher of federal/state/local minimum wage or the employer’s customary rate, raising incomes for many formerly subminimum-paid workers.
People with disabilities will gain expanded, HCBS‑compliant wraparound supports, job coaching, and targeted services to help them move from segregated, subminimum‑wage work into competitive integrated employment.
State and local workforce systems and providers will get sustained funding (multi‑year grants plus an authorized $200M/year FY2026–2030) and targeted technical assistance to revise Olmstead/WIOA/HCBS plans and implement employer‑focused transitions.
Small employers and nonprofit providers may face higher labor and compliance costs from wage parity and transition requirements, which could lead them to reduce hiring, cut hours, eliminate supported positions, or raise prices.
Workers and service recipients may experience transition uncertainty and potential service disruption because states and providers will face new administrative, reporting, and implementation burdens (including risk of having to return funds if requirements aren’t met).
Taxpayers will fund substantial new spending (authorized $200M/year for five years plus evaluations and grants), and concentrating multi‑year funding in single large grants could crowd out smaller local providers or other budget priorities.
Based on analysis of 13 sections of legislative text.
Phases out subminimum wages under 14(c) over five years, bans new certificates, and funds grants and technical assistance to transition to competitive integrated employment.
Requires employers who now pay people with disabilities subminimum wages under special 14(c) certificates to transition to competitive integrated employment over a multi-year schedule, phases up wages to full minimum wage within five years, bars new certificates, and sunsets existing certificate authority after that period. Provides $200 million annually (FY2026–2030) to fund state grants, technical assistance, evaluation, and program supports to help employers, workers, and state workforce and HCBS systems make the transition and to track outcomes.