Transformation to Competitive Integrated Employment Act
Sponsored By: Representative Rep. Scott, Robert C. "Bobby" [D-VA-3]
Introduced
Summary
Phases out FLSA section 14(c) special certificates and moves workers with disabilities into paid roles in competitive integrated employment. The bill funds state and employer transformation grants, sets a four-year wage ramp to the full federal minimum, and creates a national assistance and evaluation framework to support that shift.
Show full summary
- Workers and families: Establishes a wage transition that begins at 60% and rises to 100% of the federal minimum over four years, plus wraparound services and benefits counseling to support moves into competitive integrated employment.
- Employers: Creates one State Transformation Grant per State (each $2.0 million to $10.0 million over five years) and competitive Certificate Holder grants ($100,000 to $500,000 over three years) to redesign business models and hire into integrated jobs.
- States and programs: Completing a State Transformation Grant can unlock additional Rehabilitation Act funding equal to 25% of a prior allotment. The Department of Labor must run a national technical assistance center, require annual reports, and fund an independent multi‑year evaluation.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Phase out subminimum wages for disabled workers
This bill would raise pay for people now paid under special wage certificates. Pay would have to be at least the larger of their current certificate wage or a share of the federal minimum wage: 60% at the start, then 70%, 80%, 90%, and 100% by year four. The change would take legal effect 3 months after enactment, with the phase‑in moving each year. Employers that did not already have a certificate could not get a new one. All special certificates would lose legal effect after the four‑year phase‑in ends.
Six years of $50 million funding
The bill would authorize $50 million each year from fiscal years 2026 through 2031 to run most parts of this Act. This totals $300 million over six years. Actual spending would still depend on Congress approving the money.
Grants and wage rules for integrated jobs
The bill would fund State Transformation Grants to help move workers from special‑certificate jobs into competitive, integrated work. States could receive one 5‑year grant, and must set a phase‑out timeline, track results, and involve people with disabilities in oversight. Employers in States without a State grant could seek a separate 3‑year grant of $100,000 to $500,000, one per entity, to support their own transition. Any grant‑funded job would have to pay at least the higher of the federal or State/local minimum wage, or the employer’s usual rate for the same job. If a State fully completes the transition, it could get extra Rehabilitation Act funding equal to 25% of its prior‑year allotment for fiscal years 2030–2034, subject to continued compliance and available funds.
National help center and service rules
The bill would fund one nonprofit to run a national help center for six years. It would guide employers on how to move to competitive, integrated jobs and share best practices. The bill would also spell out what counts as “integrated services,” which must follow the Home and Community‑Based Services rule and avoid institutional settings. The center would also spread information on ABLE accounts and other financial tools.
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Sponsors & CoSponsors
Sponsor
Rep. Scott, Robert C. "Bobby" [D-VA-3]
VA • D
Cosponsors
Sessions
TX • R
Sponsored 7/25/2025
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 9/8/2025
Malliotakis
NY • R
Sponsored 9/26/2025
Rep. Keating, William R. [D-MA-9]
MA • D
Sponsored 2/20/2026
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 3/3/2026
Roll Call Votes
No roll call votes available for this bill.
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