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JFAC approves $4.4 million supplemental for Vocational Rehabilitation to cover owed provider claims; FY2026 maintenance and interpreter funding also approved
Summary
The committee approved a $4.4 million FY2025 supplemental to the Division of Vocational Rehabilitation to cover prior-year liabilities and state matching for federal funds and approved a $35,000 FY2026 ongoing request for interpreter services.
The Joint Finance-Appropriations Committee approved a $4.4 million FY2025 supplemental for the Division of Vocational Rehabilitation to settle provider claims and to provide the state match needed to access federal rehabilitation funds. Lawmakers and analysts said the supplemental is intended to pay bills for services already provided and to secure a $10 million non-cognizable federal allocation previously made available to states.
Brooke Dupree, budget and policy analyst with the Legislative Services Office, told the committee the request included $2.7 million as the required state match to draw down roughly $10 million of federal funds, and an additional $1.7 million to cover client services that were previously paid but ineligible for federal reimbursement. Members said a forensic federal audit covering transactions back to February 2019 is underway; committee members emphasized the need to pay providers and stabilize operations pending audit results.
The committee then approved a maintenance-budget item for FY2026 that adds $35,000 ongoing from the general fund to contract sign-language interpreter services for the Council for the Deaf and Hard of Hearing and the vocational rehabilitation program to maintain ADA compliance. Committee leaders thanked agency staff and auditors for work on the issue and warned that additional supplementals could be required after the forensic audit concludes.
Votes and outcome: the $4.4 million supplemental passed with an announced committee total of 19 yes and 1 no (0 absent); the FY2026 $35,000 ongoing interpreter appropriation passed with committee unanimous support as recorded.
Why it matters: the supplemental bridges current obligations to providers and secures the state match needed to access federal rehabilitation dollars. Committee discussion indicated potential further fiscal exposure depending on forensic-audit findings.
What’s next: the Division of Vocational Rehabilitation will use the appropriation to pay outstanding provider claims, submit required federal match paperwork, and provide reports requested by legislative staff during implementation and audit follow-up.
