Sponsors (8)
The bill shifts federal policy and funding to end subminimum wages and expand supported, competitive integrated employment for people with disabilities—boosting pay and services for many while imposing significant costs, administrative burdens, and transition risks that could leave some providers, regions, and workers temporarily worse off.
People with disabilities will see higher wages: workers paid under special certificates will be phased up to at least the federal/state minimum (or customary non‑disabled rate) within five years, and many will receive immediate pay increases under the phased schedule.
People with disabilities will gain substantially improved access to competitive, integrated employment through funded supports (wraparound HCBS-like services), technical assistance, and evidence-based employment models that help job placement and retention.
States, local workforce systems, and employers receive grants, training, and models (including Olmstead/HCBS/WIOA alignment) to support transitions away from certificate-based placements and to build inclusive employment capacity.
Many employers—especially small providers currently using special certificates—will face materially higher labor costs that could lead to reduced hires, fewer hours, business closures, or layoffs that disproportionately affect workers with disabilities.
The bill creates substantial new federal spending and ongoing grant/administrative costs (including multi-year and 'such sums as necessary' authorizations), increasing taxpayer outlays or requiring offsets.
Transitions from certificate-based programs risk service gaps and loss of placements—smaller providers may lack capacity even with guidance—so some people with disabilities could experience delays or loss of employment and supports.
Based on analysis of 13 sections of legislative text.
Introduced July 24, 2025 by Christopher Van Hollen · Last progress July 24, 2025
Phases out the use of FLSA 14(c) subminimum-wage certificates over five years and requires employers to move workers with disabilities into competitive integrated employment (CIE) paid at least the higher of the federal/state minimum wage or the employer’s customary rate for similar non-disabled workers. To support that transition, the bill creates multi-year competitive grant programs for States and for current certificate-holders, funds a national technical assistance nonprofit, requires a multi-year independent evaluation and annual reporting/audits, and authorizes $200 million per year for FY2026–FY2030 to carry out the programs and activities. Grants and assistance must prioritize people with the most significant disabilities, meet HHS HCBS and Olmstead/ADA requirements for integrated services, and include data collection, stakeholder involvement, and coordinated workforce development planning. The Secretary of Labor is barred from issuing new 14(c) certificates and existing certificates lose legal effect after five years; wage floors for certificate-paid workers phase up to the full federal minimum wage during that period.