§731 Payments to States

Summary

The Commissioner must pay each State from its yearly allotment the federal share of the costs for vocational rehabilitation services under the State’s approved plan, including money for running the plan. Payments cannot be more than the State’s annual allotment under this program. If a State spent less from non‑Federal sources in a previous fiscal year than it did in the fiscal year two years before that, the federal payment for the current year will be reduced by that difference. The Commissioner can waive or change that reduction for fair reasons, such as exceptional or uncontrollable circumstances. For construction projects, the federal share is the same percentage used for rehabilitation facilities in that State, and the Commissioner will make rules to match special formulas where needed. Before each calendar quarter (or other period the Commissioner sets), the Commissioner must estimate how much to pay each State using State records and other information. The Commissioner pays the estimated amount from the State’s allotment, then later adjusts payments up or down to correct any earlier over‑ or underpayments. Payments are made through the Treasury, before audit or settlement by the Government Accountability Office, and may be paid in installments.