Order Code RL34627
Veterans’ Benefits:
The Vocational Rehabilitation
and Employment Program
August 21, 2008
Beverley A. Crane
Reference Assistant
Domestic Social Policy Division
Christine Scott
Specialist in Social Policy
Domestic Social Policy Division
Carol D. Davis
Information Research Specialist
Knowledge Services Group

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Veterans’ Benefits: The Vocational Rehabilitation
and Employment Program
Summary
The number of servicemembers, National Guard, and Reservists who separate
from active duty with service-connected disabilities is expected to rise as a result of
the engagement of the U.S. Armed Forces in Operation Iraqi Freedom and Operation
Enduring Freedom. There is concern in Congress that these individuals receive the
care and services that will enable them to transition successfully back to civilian life.
These veterans must be able to rejoin their families and communities, become
employed, and continue to enjoy the highest quality of life possible, given their
disabilities.
Congress authorized the Department of Veterans Affairs (VA), through the
Vocational Rehabilitation & Employment Service (VR&E), to provide the support
disabled veterans’ need to successfully complete rehabilitation plans tailored to their
individual needs. The VR&E has recently restructured its program in an effort to
better accomplish the goal of enabling disabled veterans to gain appropriate
employment or live independently. More specialists and counselors have been hired
in regional VA offices, and the VR&E has instituted outreach efforts to encourage
more veterans who might be eligible for these services to apply to participate in the
program. The VR&E has also entered into cooperative agreements with other federal
agencies, such as the Department of Labor and the Department of Education, and
with private organizations, providing an integrated approach to addressing the
employment needs of disabled servicemembers and veterans.
The VR&E administers four programs: (1) training and rehabilitation for
veterans with service-connected disabilities; (2) vocational and educational
counseling; (3) vocational training for Vietnam veterans’ children with Spina Bifida;
and (4) special restorative training. In addition, the Coming Home to Work Program
of the VR&E Service is designed to facilitate the veterans’ return to the work force
with maximum speed. This report describes VR&E program services available to
veterans with service-connected disabilities and to their families. It provides
information about eligibility and entitlement, the application process, and resources
available through other agencies. A brief history of the program is also provided.
This report will be updated as relevant legislative activity warrants.

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Contents
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The VR&E Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Case Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The Five-Track Service Delivery System . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Re-Employment Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Rapid Access to Employment Track . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Self-Employment Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employment through Long-Term Services Track . . . . . . . . . . . . . . . . . 4
Independent Living Services Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Independent Living Program (IL) . . . . . . . . . . . . . . . . . . . . . . 5
Vocational-Educational Counseling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Children with Spina Bifida and Other Birth Defects . . . . . . . . . . . . . . . . . . . 7
Special Restorative Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Coming Home to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Eligibility and Entitlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Entitlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
What is an Employment Handicap? . . . . . . . . . . . . . . . . . . . . . . . 10
What is a Serious Employment Handicap? . . . . . . . . . . . . . . . . . 10
Period of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Current Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Other Employment Assistance Programs for Disabled Veterans . . . . . . . . . . . . . 14
Federal Government Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Computer/Electronics Accommodations Program (CAP) . . . . . . . . . . 14
The Department of Education: Office of Special Education
and Rehabilitation Services Administration (RSA) . . . . . . . . . . . 14
The Department of Labor (DOL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Disabled Transition Assistance Program (DTAP) . . . . . . . . . . . . 15
The Compensated Work Therapy Program . . . . . . . . . . . . . . . . . 15
The National Veterans Employment Program (NVEP) . . . . . . . . . . . . 15
The Office of Personnel Management (OPM) . . . . . . . . . . . . . . . . . . . 15
The Small Business Administration (SBA) . . . . . . . . . . . . . . . . . . . . . 15
Military Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Air Force Palace HART-Helping Airmen Recover
Together Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Army Career and Alumni Program (ACAP) and
ACAP-Entrepreneurship Bootcamp for Veterans
with Disabilities (EBV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Army Material Command: Always a Soldier . . . . . . . . . . . . . . . . . . . . 16
Marine for Life-Injured Support Program (M4L-IS) . . . . . . . . . . . . . . 17
Navy Safe Harbor Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
U.S. Army Wounded Warrior Program (AW2) . . . . . . . . . . . . . . . . . . 17

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Appendix. 2008 VR&E Training Programs Subsistence Allowance Rates . . . . 19
List of Tables
Table 1. Vocational Rehabilitation & Employment Program Statistics,
FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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Veterans’ Benefits: The Vocational
Rehabilitation and Employment Program
Overview
Congress is concerned that servicemembers, National Guard, and Reservists
involved in Operation Enduring Freedom and Operation Iraqi Freedom who are being
discharged from military service with service-connected disabilities receive timely
and effective vocational rehabilitation services. The Vocational Rehabilitation and
Employment Program (VR&E), one of five major programs administered by the
Veterans Benefits Administration (VBA) of the Department of Veterans Affairs
(VA), addresses this concern.1 The program’s purpose is to counsel and rehabilitate
veterans, with an emphasis on employment and independent living. The program
provides comprehensive services and assistance to enable veterans with service-
connected disabilities and employment handicaps2 to achieve maximum
independence in daily living, to become employable, and to obtain and maintain
suitable employment. For severely disabled veterans, the goal is to help them
achieve the highest quality of life possible with a future chance of employment, given
medical and technological advances. The VR&E service delivery strategies differ
from those of many other VBA programs as they require personal interaction with the
veteran to deliver services and have the largest network of service delivery points of
any VBA program.3
History
In 1918, Congress passed P.L. 65-178, the Vocational Rehabilitation Act, to
provide for the retraining and placing in productive occupations of disabled persons
who had served in the U.S. military and naval forces. The rehabilitation program was
administered by the Federal Board for Vocational Education. On August 24, 1921,
control of veterans’ rehabilitation was transferred to the newly created Veterans’
Bureau. In 1930, Congress created the Veterans Administration by combining three
bureaus, the Veterans’ Bureau, the Bureau of Pensions, and the National Homes for
Disabled Volunteer Veterans.
In 1943, Congress passed P.L. 78-16, which provided that any eligible veteran
may receive up to four years of training specifically directed to the restoration of
employability. To be eligible for this training, the veteran must
1 The other four are compensation and pension, life insurance, education, and loan guaranty.
2 The term employment handicap is defined by law in 38 U.S.C. §3101.
3 The VR&E program is authorized under 38 U.S.C. Chapter 31.

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CRS-2
! have been in the active military or naval service at any time after
September 16, 1940, and during World War II;
! have been discharged under circumstances other than dishonorable;
! have a disability incurred in or aggravated by such service for which
a pension is payable under the laws administered by the VA or
would be but for the receipt of retirement pay; and
! be in need of vocational rehabilitation to overcome the handicap
caused by such service-connected disability.
Under this program, the VA provided services to 621,000 World War II disabled
veterans.
Over the years, the scope of the VR&E program has been modified and
expanded through legislation to better fulfill its mission. The program has undergone
many name changes and has often been aligned with the education services of the
VBA. In 1999, the program acquired its current name with the intention of placing
more emphasis on employment services. Today, the VA handles the rehabilitation
of disabled veterans through the VR&E program.
The VR&E Program
In 2004, the Secretary of Veterans Affairs responded to continuing criticisms of
the VR&E’s operations from committees of Congress,4 the Government
Accountability Office (GAO), and others, by forming a task force to evaluate the
program. The task force report5 found little evidence that the program’s efforts to
obtain jobs for rehabilitated veterans had been as successful as intended by Congress.
The task force felt that the VR&E staff was doing a good job for veterans; however,
it also recognized the need for a more effective rehabilitation program to enable
veterans to resume independent living and lead productive lives as soon as possible.
According to the report, the foundation of the 21st century VR&E program should
shift its focus to an individual’s ability and away from an individual’s disability. The
task force report made 110 recommendations for the program’s improvement. By
the end of FY2007, over 89 of the 110 recommendations had been implemented.6
Before 1980, successful rehabilitation was defined as completion of a training
program for suitable employment and not actual job placement. The task force
4 Congressional Commission on Servicemembers and Veterans Transition Assistance,
Congressional Commission on Servicemembers and Veterans Transition Assistance, January
1999, pp. 84-85, available at [http://www.va.gov/vetbiz/library/Transition%20Commission
%20Report.pdf].
5 U.S. Department of Veterans Affairs, VA Vocational Rehabilitation and Employment Task
Force, Report to the Secretary of Veterans Affairs: The Vocational Rehabilitation and
Employment Program for the 21st Century Veteran, 2004, hereinafter referred to as the
VR&E Task Force Report, available at [http://www1.va.gov/op3/docs/VRE_Report.pdf].
6 U.S. Department of Veterans Affairs, FY2007 Performance and Accountability Report,
November 15, 2007, Part I, p.55, available at [http://www.va.gov/budget/report/2007/
index.htm].

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CRS-3
identified this as an area that needed improvement. Under the current program,
VR&E staff must make sure that a veteran understands that the primary goal of the
VR&E program is employment and encourage and motivate him or her toward
obtaining a job while in the rehabilitation program. The VR&E has stationed 83
Employment Coordinators (ECs) at regional VA offices across the country with the
primary task of providing disabled veterans with any necessary job-readiness skills
as well as job referral or placement services. Efforts have been made by the VA to
increase employment opportunities for disabled veterans through partnerships with
the Department of Labor, other federal agencies and organizations, and with
employers across the nation.
Case Management
A case manager is assigned to each recipient of VR&E services. The case
manager works with a Vocational Rehabilitation Counselor (VRC) who must
determine if, and why, the disabled veteran has experienced employability
restrictions (or employment handicaps). A written rehabilitation plan must be
developed by the VA and the veteran, describing the goal of the VR&E program and
the means through which the goal will be achieved. The VRC will work with the
veteran to assess his or her status and help to develop the written rehabilitation plan.
The VRC and the case manager help the veteran to achieve the goals of the agreed
upon written plan for employment or independent living. The VRC or case manager
may provide referrals for medical and dental services, coordination of training
allowances, tutorial assistance, or other services to achieve rehabilitation.
The rehabilitation phase of the VR&E program includes the following key
components:
! evaluation and planning,
! extended evaluation,
! rehabilitation and employability (training or education),
! independent living,
! job ready status, and
! interrupted status.
Under the current VR&E program, a veteran whose eligibility and entitlement
have been established must not only complete the rehabilitation plan, but he or she
will also be tracked to attainment of suitable employment based on the plan’s goals.
By law,7 the services provided include the following:
! educational, personal, and psychological counseling and evaluation;
! vocational training benefits;
! loans;
! monthly subsistence allowance and work study allowance;
! medical benefits, including treatment, care, prosthetic appliances,
and eyeglasses;
7 38 U.S.C. § 3100, § 3104, § 3109, and § 3120.

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CRS-4
! any family support that is necessary to aid rehabilitation;
! case management services;
! travel and incidentals’ allowance to defray costs of expenses
incurred during rehabilitation, job seeking, and initial employment;
! special services related to blindness and deafness;
! assistance with independent living services;
! placement and employment services; and
! post placement services to ensure satisfactory adjustment in
employment.
One of the task force’s major recommendations led to the development of a new
Five-Track Service Delivery System designed to make the VR&E’s services more
employment-driven. Veterans must choose one of the five tracks to reach their
employment goals: Re-employment; Rapid Access to Employment; Self-
Employment; Employment through Long-Term Services; or Independent Living
Services. The five tracks are described briefly below.
The Five-Track Service Delivery System
Re-Employment Track. The Re-employment Track helps veterans and
members of the National Guard and the Reserves return to jobs held prior to active
duty. Veterans, National Guard, and Reserve members may be provided with job
accommodations, job modification, case management, coordination, and linkages to
services with VA healthcare, re-employment rights advice, work adjustment services,
and consultations with employers.
Rapid Access to Employment Track. The Rapid Access to Employment
Track emphasizes the goal of immediate employment and is available to those who
already have the skills to compete in the job market in appropriate occupations.
Among other things, veterans may be provided job readiness preparation, resume
development, job search assistance, and accommodations. ECs provide post-
employment follow-up.
Self-Employment Track. This track is for veterans who have limited access
to traditional employment and need flexible work schedules and a more
accommodating work environment because of their disabling conditions or other
special circumstances. Veterans may be provided an analysis of the viability of a
business concept, development of a business plan, training in the operation of small
businesses, marketing and financial assistance, and guidance on obtaining adequate
resources to implement the business plan.
Employment through Long-Term Services Track. Under this track, the
VR&E assists veterans who need specialized training or education to obtain and
maintain suitable employment. Training or education (or both) may be provided,
including on-the-job training, apprenticeships, internships, job shadowing, work
monitoring, work-study, public-private job partnering, or higher education sufficient
to obtain suitable entry-level employment.

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CRS-5
Independent Living Services Track. The Independent Living Services
Track is for veterans who may not be able to work immediately and need additional
rehabilitation to enable them to live more independently. Veterans may be provided
with assistive technology, independent living skills training, and connections to
community-based support services. The Independent Living Services Track, a major
component of the Five-Track Service Delivery System, is described in more detail
below.
The Independent Living Program (IL). The Independent Living (IL)
Program is designed to help veterans whose service-connected disability or
disabilities may be so severe that they are unable to immediately pursue an
employment goal. It helps them to be able to live independently, participate in family
and community life, and increase their potential to return to work. The IL program
was established under P.L. 96-466, the Veterans Rehabilitation and Education
Amendments of 1980, with an annual cap of 500 new cases per fiscal year. In
succeeding years, the number of cases grew as the program’s success in helping
severely disabled veterans gain greater independence in daily living was recognized.
The cap was increased by P.L. 107-103, the Veterans Education and Benefits
Expansion Act of 2001, to 2,500 new cases per fiscal year.
Program expenditures are generally capped at $25,000 per veteran per calendar
year. For expenditures over this amount, the counselor must get approval from the
local VR&E office. The Director of the VA Regional Office must approve costs
exceeding $75,000 per veteran per calendar year. For program costs above $100,000
per veteran per calendar year and IL-related construction costs exceeding $25,000 per
calendar year, approval must be sought from the Director of the VR&E Service.8 IL
programs for veterans are usually 24 months in duration, but they may be extended
for an additional six months in exceptional circumstances.
Assessment for participation in the program is done by counselors with
specialized experience and training and is usually done in the veteran’s home. The
counselor works with the veteran to develop an IL plan that outlines the goals,
services, and assistance to be provided and benchmarks to be used to determine
progress in achieving greater independence in daily living. Services are tailored to
the veteran’s individual needs.
To meet the needs of veterans with severe disabilities and mobility impairments,
VR&E’s IL program works with the VA’s Loan Guaranty Service and the Specially
Adapted Housing (SAH) grant program,9 the Home Improvements and Structural
Alterations (HISA) program, the Automobile Adaptive Equipment program, and the
Visually Impaired Services Team (VIST). The VR&E also works with the
8 Testimony of Ruth Fanning, Director, VA’s VR&E Service, before the House Committee
on Veterans’ Affairs, Subcommittee on Economic Opportunity, Independent Living
Program, 110th Cong., 2nd Sess., July 10, 2008.
9 For information on housing and automobile grants, see CRS Report RL34626, Veterans
Affairs: An Overview of Benefits for Disabled Veterans, by St Jalisa E. Miller, Christine
Scott, and Carol D. Davis.

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CRS-6
Committee on Care of Veterans with Severe Mental Illness (SMI)10 and the
Traumatic Brain Injury Caregivers Panel.11
IL program services may include the following:
! training in activities of daily living;
! attendant care during period of transition;
! transportation when special arrangements are required;
! assistive technology;
! specialized medical, health, and rehabilitation services;
! services to address any personal and/or family adjustment issues;
! peer counseling;
! housing integral to participation in a program of special
rehabilitation services;
! training in independent living skills;
! connection with community-based support services;
! training to improve awareness of rights and needs;
! assistance in identifying and maintaining volunteer or supported
employment;
! services to decrease social isolation; and
! adaptive equipment that increases functional independence.
A veteran eligible for the IL program must submit a completed application Form
VA 28-1900 for VR&E services. He or she must also undergo a comprehensive
evaluation by a counselor who will determine if the veteran is entitled to program
services and if the IL program is appropriate for the veteran.
Vocational-Educational Counseling
The VR&E also provides a wide range of vocational-educational counseling to
active duty servicemembers as well as to veterans and their dependents who are
eligible for education benefits.12 The VR&E program is distinct from the
Montgomery GI Bill.13 Servicemembers are eligible for these services six months
10 The 2004 VR&E Task Force Report noted “that the single largest group of veterans for
whom an employment plan is not considered feasible was for veterans with psychiatric
disabilities,” p. A-64.
11 P.L. 110-181, signed by President George W. Bush on January 28, 2008, mandated the
creation of the Traumatic Brain Injury Caregivers Panel to develop coordinated, uniform,
and consistent training curricula to be used in training family members in the provision of
care and assistance to current and former members of the Armed Forces with traumatic brain
injury. For details see CRS Report RL34371, ‘Wounded Warrior’ and Veterans Provisions
in the FY2008 National Defense Authorization Act, by Sarah A. Lister, Sidath Viranga
Panangala, and Christine Scott.
12 Dependents are eligible for benefits under 38 U.S.C. Chapters 18, 32, 30, and 35.
13 See CRS Report RL34549, A Brief History of Veterans’ Eduction Benefits and their
Value, by David P. Smole and Shannon S. Loane, and CRS Report RS22929, A Brief
Overview of the Post-9/11 Veterans Educational Assistance Act of 2008, by Shannon S.

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CRS-7
prior to discharge from active duty or within one year after discharge. The services
are designed to help these individuals choose a vocational direction and the course
necessary to achieve their goals. Assistance may include testing for aptitude,
exploring occupations, setting occupational goals, locating the right type of training
program, and exploring educational or training facilities to achieve a vocational goal.
If a disabled veteran is enrolled in a vocational rehabilitation program, the
VR&E pays the cost of tuition, fees, required books, supplies, and equipment. The
VR&E may also pay for supportive services such as medical and dental care,
prosthetic devices, lip-reading training, and signing for the deaf.
The goal of the education component of the VR&E program is to “address the
continuum of ‘life cycle’ needs that a veteran with disabilities experiences, of which
education may — or may not — be a necessary part. The focus will be the
rehabilitation and employment needs of the 21st century service-connected disabled
veteran.”14
Veterans who need additional education or training to become employable are
paid a subsistence allowance while they participate in vocational rehabilitation
training. This subsistence allowance is larger than the stipend under the GI Bill
program. It is based on whether training is part-time or full-time, the number of
dependents, and the type of training. See Appendix for current 2008 allowances.
Children with Spina Bifida and Other Birth Defects
The VR&E provides services to children of Vietnam veterans who were born
with Spina Bifida15 or may have other covered birth defects. These children are
entitled to receive vocational training, education, and employment services as well
as other career-directed support services. These services generally last 24 months,
but they may continue if the child has been unsuccessful in attaining suitable
employment.
Services provided differ from those provided to veterans in the following ways.
There is
! no subsistence allowance;
! no adaptation of automotive equipment;
! no extension of evaluation of employability beyond 30 days; and
! no independent living program.
13 (...continued)
Loane.
14 The VR&E Task Force Report, p. 165.
15 38 U.S.C. Chapter 18.

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CRS-8
Special Restorative Training
The VR&E may also provide special restorative training and counseling to
eligible spouses and children16 to help them to overcome or lessen mental or physical
disabilities. Once eligible, the spouse or children will receive a comprehensive
evaluation to identify the best program or services for their needs. A case manager
assists the family member throughout the entire program. The family member is also
entitled to an accelerated educational assistance allowance for high tuition
programs.17 Normal assistance may continue until the spouse or child has achieved
the goals of the special restorative training program.
The Coming Home to Work Program
The VR&E has established job resource labs in its regional offices, as well as
an online employment resource known as VetSuccess.gov.18 The Coming Home to
Work (CHTW) program is VR&E’s primary early intervention and outreach
program. The goal of CHTW is to provide rehabilitation services to VR&E eligible
servicemembers pending medical separation and to veterans receiving treatment at
community-based health care organizations and VA medical treatment facilities.19
CHTW provides a seamless transition to VR&E services.20
VR&E eligible servicemembers with at least a 20% disability rating are entitled
to an evaluation for VR&E benefits regardless of their expected discharge date.
Eligibility and Entitlement
Eligibility and entitlement must be established for participation in the VR&E
program. A veteran who has an employment handicap and is eligible for the VR&E
program is entitled to all applicable services. The program originally provided
benefits to veterans with a 30% or more service-connected disability rating.21
16 38 U.S.C. Chapter 35.
17 The monthly rate of $788 is for special restorative training that occurs after June 30, 2004
in accordance with 38 U.S.C. 3542 38 C.F.R. 21.3333 (a)(1).
18 Available at [http://www.vetsuccess.gov].
19 The Community Based Health Care Organization (CBHCO) Program was created to assist
Guard and Reserve servicemembers injured in the line of duty to return to their homes where
they will continue to receive medical care locally while they are evaluated for return to duty,
medical release, or medical board. To be eligible, the servicemember must have a referral
into the program from their respective branch of service. National Guard and Reserve
servicemembers must agree to remain on active duty status to be enrolled in the CBHCO
program.
20 To apply for Coming Home To Work services, servicemembers without a VA disability
rating must complete VA Form 28-0588,Vocational Rehabilitation and Employment -
Getting Ahead After You Get Out, and submit it with medical records and a completed
application for VR&E services (VA Form 28-1900) to the nearest VA regional office.
21 For more information about the VA rating system, see CRS Report RL33323, Veterans
(continued...)

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CRS-9
However, it has been modified to include veterans with a 10% or 20% disability
rating.
Eligibility. To be considered eligible for VA benefits, a claimant must be a
veteran or the survivor or dependent of a veteran. The services of the VR&E
program are also available to active military personnel who are in medical-hold or
pre-discharge status.22 These individuals may be pre-qualified for the program.
To be eligible for VR&E services, a veteran must
! have received, or will receive, a discharge under conditions other
than dishonorable;23
! have served on or after September 16, 1940;
! have a service-connected disability employment handicap rating of
at least 20% or a serious employment handicap rating of 10%;
! need vocational rehabilitation to overcome an employment handicap;
and
! submit a completed application for VR&E services on VA Form 28-
1900.
Servicemembers pending medical separation from active duty may apply for
VR&E services if their disabilities are reasonably expected to be rated at a minimum
of at least 20% following their discharge. Each veteran must work with a case
manager who will advise him or her on the series of steps to be taken to receive
VR&E program services. The steps are described below:
Step 1. Application (described later in this report) for benefits and assessment
of program eligibility.
Step 2. Evaluation to assess needs and determine services to which a veteran
may be entitled, and formulation of a plan of rehabilitation.
Step 3. Provision of rehabilitation services for either employment (services and
assistance that lead to the veteran becoming job-ready) or achievement of a measure
of increased ability to live more independently in the community.
Step 4. Completion of the rehabilitation process. Veterans who have obtained
and maintained suitable employment or achieved maximum independence in daily
living are considered to be rehabilitated. Suitable employment is work within a
veteran’s physical and emotional capabilities and consistent with his or her patterns
of abilities, aptitudes, and interests.
21 (...continued)
Affairs: Benefits for Service-Connected Disabilities, by Douglas Reid Weimer.
22 For a description of medical hold discharge status, see CRS Report RL33991, Disability
Evaluation of Military Servicemembers, by Christine Scott, Sidath Viranga Panangala, and
Charles H. Henning.
23 For more information on discharge criteria, see CRS Report RL33113, Veterans Affairs:
Basic Eligibility for Disability Benefit Program, by Douglas Reid Weimer.

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CRS-10
Entitlement. The VRC makes the entitlement determination on the basis of
whether the veteran’s employment problems have been caused by
! the veteran’s service-connected disabilities;
! the veteran’s non service-connected disabilities;
! deficiencies in education and training;
! negative attitudes about people with disabilities;
! the impact of alcoholism or drug abuse;
! consistency with abilities, aptitudes, and interests; or
! other pertinent factors.
To be entitled to vocational rehabilitation program services a veteran must be
within the eligibility period (12 years) and have a disability rating of at least 20%
with an employment handicap. Veterans with a disability rating of at least 10% with
a serious employment handicap are entitled to program services regardless of whether
the veteran is within the eligibility period.
What is an Employment Handicap? An employment handicap as defined
by law24 is an impairment of a veteran’s ability to prepare for, obtain, or retain
employment consistent with his or her abilities, aptitudes, and interests. The
impairment results in substantial part from a service-connected disability. Veterans
with a disability rating of at least 20% and an employment handicap are entitled to
VR&E program services.
What is a Serious Employment Handicap? A serious employment
handicap as defined by law25 is a significant impairment of a veteran’s ability to
prepare for, obtain, or retain employment consistent with his or her abilities,
aptitudes, and interests. The impairment results in substantial part from a service-
connected disability. A disability rating of at least 10% and a serious employment
handicap entitles a veteran to VR&E program services. If employment is not
feasible, the veteran is evaluated for the Independent Living Program.
The primary difference between an employment handicap and a serious
employment handicap is the degree of vocational impairment. The veteran’s service-
connected disability must contribute to the employment handicap. That is, the
VR&E must be able to identify, observe, and measure it.
Certain totally disabled veterans are also eligible for VR&E program services.
A veteran with a single disability rating of 60% or more, or a combined rating from
more than one disability of at least 70%, where one disability is rated at 40% or
higher, will be rated totally disabled for VR&E program purposes and be eligible for
services.26
24 38U.S.C. §3101, (1).
25 38 U.S.C. §3101, (2).
26 These veterans are awarded total disability benefits (compensation) based on individual
unemployability, and are afforded VR&E benefits.

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CRS-11
A veteran who is ineligible for VR&E services will be informed in person and
will be sent a letter with information about appeal rights and the appeals process.
The counselor will also use the information gathered in the application process to
recommend other options, programs, or services that should contribute to the
achievement of vocational adjustment. Other programs and services recommended
may include State Vocational Rehabilitation programs and the Department of Labor’s
Disabled Veterans Outreach Program (DVOP).
Period of Eligibility. The period of eligibility for VR&E benefits is 12 years
from (1) the date of separation from active military service or (2) the date the veteran
was first notified by the VA of a service-connected disability rating.
The period of eligibility may be extended if the VRC determines that a veteran
has a serious employment handicap, or has not yet been rehabilitated to the point of
employability, or has been rehabilitated but still cannot perform the duties required,
or needs more services because the occupational requirements have changed. An
objective evaluation is required for these circumstances to be determined.
For independent living services, if the medical condition is so severe that
achievement of the vocational goal is not feasible and that goal is necessary to ensure
that the veteran will achieve maximum independence, the period of eligibility may
be extended.
The Application Process
A veteran, his or her authorized representative, or a Member of Congress may
communicate the veteran’s intent to seek benefits under the VR&E program. The
veteran must follow up by completing an application for the program (See Step 1
under the section on Eligibility and Entitlement). If the application is completed
within one year of the communication of intent to file a claim, the date of the
communication will be considered the date of formal application for benefits. The
completion of applications is subject to time limits. Applications with missing
information are returned for completion. The completed application must be returned
within a year from the date of notification, or the veteran may be considered
ineligible for benefits.27
27 Applications may be submitted online or by mail. Online applications are available on the
VA website at [http://vabenefits.vba.va.gov/vonapp/main.asp]. Applications filed online go
directly to the appropriate VA office. Applications that will be mailed in must be submitted
on VA Form 28-1900, Disabled Veterans Application for Vocational Rehabilitation. The
form can be downloaded from the VA website at [http://www.va.gov/vaforms], or veterans
may call 1-800-827-1000 and request that the form be sent to them by mail. The completed
form should be mailed to the nearest VA Regional Office. There are 57 regional VA offices
that carry out the functions of the Veterans Benefits Administration. To identify the nearest
office, veterans should go to [http://www1.va.gov/directory/guide/home.asp].

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CRS-12
The period from application to notification of entitlement averaged 54 days in
FY2007, while the evaluation and planning phase of the process (See Step 2 under
the section on “Eligibility and Entitlement”) averaged 93 days.28
Utilization of VR&E Services
For FY2006, the Office of Management and Budget (OMB) program
performance measures noted that the VR&E program was making notable progress
toward achieving long-term performance measures.29 Recent data from the
Department of Defense (DOD) indicate that each year, approximately 25,000 active
duty servicemembers are found “‘not fit for duty’ due to medical conditions that may
qualify them for a VA disability rating and VR&E services.”30 Since 2003, the Army
Reserve and the Army National Guard indicate that 29,000 of their members have
been placed on medical hold or extension status.31 These servicemembers may
qualify for VR&E services.
In FY2007, the VR&E spent $341.9 million on books, tuition, supplies, fees,
and other costs for 67,225 program participants (of which 52,477 received a
subsistence allowance)for an average cost per participant of $5,085. In FY2007,
VR&E spending on subsistence allowance benefits was $226.4 million for services
to 52,477 recipients, for an average cost per recipient of $4,314. In FY2007, VR&E
provided rehabilitation, evaluation, planning, and services to 23,446 veterans or their
dependents. No monetary benefit is associated with the latter services.32
For FY2007, OMB reported a rehabilitation rate of 73% for all disabled veterans
in the VR&E program; the rehabilitation rate for serious employment handicaps was
also reported to be 73%. Only 75% of those who are entitled to VR&E benefits
actually sign up for the program. The average actual amount spent on a program
participant in FY2007 was $8,856, more than the projected average cost of $8,000.33
As shown in Table 1, in FY2006, from a pool of 57, 856 applicants, 63.1% or
36,513 disabled veterans were found to be entitled to VR&E services, and there were
52,982 participants in the VR&E program.34 The number of disabled veterans who
were successfully rehabilitated by the end of the FY2006 program year was 12,062.
28 Available at [http://www.whitehouse.gov/omb/expectmore/detail/10003220.2006.html].
29 Ibid.
30 Ibid.
31 Ibid.
32 U.S. Department of Veterans Affairs: FY2009 Budget Submission: Benefits and Burial
Programs and Departmental Administration, Vol. 3 of 4, February 2008, pp.2A2-2A3,
available at [http://www.va.gov/budget/summary/2009/Volume_3-Benefits_and_Burial_
and_Dept_Admin.pdf].
33 Available at [http://www.whitehouse.gov/omb/expectmore/detail/1003220.2006.html].
34 Participants are veterans who are receiving a subsistence allowance in one of the
following case statuses: extended evaluation, independent living, job ready, or rehabilitation
to employment.

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CRS-13
Of this number, the total number of male and female veterans with serious
employment handicaps that were rehabilitated in FY2006 was 6,552.35
Table 1. Vocational Rehabilitation & Employment Program
Statistics, FY2006
VR&E Category
Male
Female
Total
Applicants
47,961
9,895
57,856
Denied Eligibility
2,780
635
3,425
Denied Entitlement
732
1,152
1,884
Entitled to Services
29,670
6,843
36,513
Participants
40,355
12,627
52,982
Rehabilitated
9,744
2,318
12,062
Source: Table prepared by the Congressional Research Service (CRS) using data from the Department
of Veterans Affairs, Veterans Benefits Administration Annual Benefits Report, Fiscal Year 2006.
Available at [http://www.vba.va.gov/reports/2006_abr_v2.pdf].
The life cycle of one VR&E case may be four or more years from application
to eligibility, entitlement, rehabilitation planning, achievement of rehabilitation goals,
and finally, rehabilitation.
Current Issues
In the 110th Congress, the House Veterans Affairs Committee, Subcommittee
on Economic Opportunity held a hearing on July 10, 2008, on the Independent Living
Program. The main concern expressed by witnesses about the program concerned
the annual fiscal year cap (2,500) on new participants in the program. Witnesses
stated that the program was needed and that the cap hindered the ability of the VA
to provide services to disabled veterans. In addition to the hearing witnesses, the
Office of the Inspector General (OIG) of the VA noted in an audit of the VR&E
program operations, although the number of veterans entering the IL program in
FY2006 did not exceed the cap, this may have occurred because anticipating
exceeding the cap delayed entry of entitled veterans into the program.36
35 “Rehabilitated” means veterans who have successfully found and maintained suitable
employment or have successfully completed an independent living program.
36 Department of Veterans Affairs, Office of the Inspector General, Audit of Vocational
Rehabilitation and Employment Program Operations, Report No. 06-00493-42, December
17, 2007, p. 11. Available at [http://www.va.gov/oig/52/reports/2008/VAOIG-06-00493
-42.pdf].

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CRS-14
Other Employment Assistance Programs
for Disabled Veterans
Apart from the VR&E program, other federal agencies administer programs that
provide services to help veterans to achieve an employment outcome, that is, to
obtain competitive employment. VR&E has signed Memorandums of Understandings
(MOUs) and formed partnerships with other organizations whose services frequently
overlap, representing joint efforts to increase opportunities for rehabilitated veterans
to become employed. In addition, each branch of the military has a program to
support its disabled veterans, and many veterans services organizations (VSOs)
provide services to disabled veterans as well.
Listed below are some programs that provide rehabilitation or other services to
veterans with brief descriptions and contact information. Links to many of these
programs are provided from the VR&E program section of the VA website.
Federal Government Programs
Computer/Electronics Accommodations Program (CAP). The CAP
program provides assistive technology and services to people with disabilities,
federal managers, supervisors, Internet technology (IT) professionals, and wounded
servicemembers. Accommodations are made for servicemembers with vision or
hearing loss, dexterity impairments (including upper-extremity amputees), and
communication and cognitive difficulties, including Traumatic Brain Injuries (TBI).
These services are available as a part of the DOD Military Health System’s Tricare
program.37
The Department of Education: Office of Special Education and
Rehabilitation Services Administration (RSA). The Rehabilitative Services
Administration (RSA) oversees grant programs that help individuals with mental or
physical disabilities obtain employment and live more independently through the
provision of such support as counseling, medical and psychological services, job
training and other individualized services. RSA’s major Title I formula grant
program provides funds to state vocational rehabilitation (SVR) agencies to provide
employment-related services to individuals with disabilities, giving priority to
persons who are significantly disabled. In FY2004, RSA provided services to 29,135
veterans.38
The Department of Labor (DOL). The DOL’s Veterans Employment and
Training Services (VETS) falls under the President’s National Hire Veterans
Committee.39 The mission of VETS is to provide veterans and transitioning
servicemembers with the resources and services to succeed in the workforce by
maximizing their employment opportunities, protecting their employment rights, and
37 Available at [http://tricare.mil/cap/wsm/].
38 Available at [http://www.ed.gov/about/offices/list/osers/ras].
39 Jobs for Veterans Act (P.L. 107-288); currently codified at 38 U.S.C. § 4100.

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CRS-15
meeting labor market demands with qualified veterans. VETS administers the
HireVetsFirst program to (1) furnish employers with information about the training
and skills of veterans and disabled veterans and the advantages afforded employers
by hiring veterans with such training and skills and (2) facilitate employment of
veterans and disabled veterans through participation in America’s national labor
exchange and other means.40

The DOL also has a link from its website to a recruiting firm, RecruitMilitary,
which focuses on matching military veterans and their spouses with employers
around the world. RecruitMilitary lists more than 6,000 employers on its website.41
Disabled Transition Assistance Program (DTAP). The VR&E partners
with the DOD and the DOL through DTAP to allow disabled servicemembers to gain
information and assistance with the transition from military to civilian life prior to
their separation from military service.
The Compensated Work Therapy Program. Through the VR&E, the
Compensated Work Therapy Program administered by the DOL brings transitional
and permanent jobs to veterans who are returning to the workforce after medical
rehabilitation. The program combines work and training for new job skills.42
The National Veterans Employment Program (NVEP). The VA
administers the NVEP to help veterans understand and use veterans’ preference and
other hiring flexibilities to get jobs in the federal government, including the VA. The
program promotes the hiring of veterans by federal managers and supervisors. It also
educates selecting officials on veterans’ preferences and federal hiring authorities
developed to help veterans gain federal employment.43
The Office of Personnel Management (OPM). Most federal departments
and agencies are required to have an affirmative action program for the recruitment,
employment, and advancement of disabled veterans. Agencies develop Disabled
Veterans Affirmative Action Programs (DVAAPs) and must submit accomplishment
reports to the OPM reporting their efforts to promote the maximum employment and
job advancement opportunities for disabled veterans. OPM provides guidance and
assistance to agencies on the preparation of their DVAAPs and presents an annual
report to Congress on the employment of veterans in the federal government.44
The Small Business Administration (SBA). In partnership with the
Association of Small Business Development Centers (ASBDC), the SBA provides
entrepreneurial training to qualified service-connected disabled veterans who are
VR&E participants. The mission of SBA’s Office of Veterans Business
40 Available at [http://www.dol.gov/vets/] and [http://www.hirevetsfirst.gov].
41 Available at [http://recruitmilitary.com].
42 Available at [http://www1.va.gov/Vetind/].
43 Available at [http://www.va.gov/nvep/].
44 Available at [http://www.opm.gov/veterans/dvaap.asp].

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CRS-16
Development is to maximize the availability, applicability, and usability of all Small
Business Administration programs for veterans, service-disabled veterans, Reserve
component members, and their dependents and survivors. The SBA provides grants
to Veterans Business Outreach Center (VBOC) programs that assist disabled veterans
with funding, counseling, mentoring, training, procurement, service delivery,
business development, and government certification.45
Military Programs
Air Force Palace HART-Helping Airmen Recover Together Program.
The Air Force, through its Palace HART program, helps Air Force personnel who
have been medically separated from active duty receive transition services by
ensuring that they have complete information about entitlements that are due to them.
When an airman enters the disability evaluation process, the Air Force Personnel
Center Field Activities Division (AFPC/DPFF) begins tracking him or her for Palace
HART eligibility. Once the airman is medically separated as a result of service-
related injuries, Palace HART Family Support Centers provide transition services,
including individual pre-separation counseling and assistance in obtaining all
authorized service from the Air Force, the DOD, the VA, and the Department of
Labor (DOL). The program assists with the initial filing of VA disability claims,
extended five-year case management follow-up, and employment placement
assistance and counseling. The goal is to help wounded Air Force veterans transfer
back to civilian life.46
Army Career and Alumni Program (ACAP) and ACAP-
Entrepreneurship Bootcamp for Veterans with Disabilities (EBV).
Veterans disabled in support of Operations Iraqi Freedom and Enduring Freedom
who are accepted into the EBV program of the Army Career and Alumni Program
can receive free training in entrepreneurship and small business management, as well
as support in growing a successful business from the business school faculties of four
U.S. universities: Whitman School of Management at Syracuse University; the
College of Business at Florida State University; UCLA Anderson School of
Management; and Mays Business School at Texas A&M University. Eligible
veterans may go online to apply for ACAP services.47
Army Material Command: Always a Soldier. The Always a Soldier
program provides service-connected disabled veterans with opportunities to seek
employment, career advancement, job mobility, family economic well-being, and
greater financial security. Specific employment tracks include the following:
45 Available at [http://www.sba.gov/aboutsbs/sbaprograms/ovbd/index.html].
46 Available at [http://www.af.mil].
47 Available at [http://acap.army.mil] and [http://www.acapexpress.army.mil].

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CRS-17
! federal wage grade positions involving trades and labor;
! internship programs providing monitored or supervised work or
training experience with learning goals; and
! various federal general schedule (GS) series full performance
positions.
The Always a Soldier program partners with existing Army programs (such as
Disabled Soldier Services and Army Community Service), the VA, and the Disabled
American Veterans (DAV) organization.48
Marine for Life-Injured Support Program (M4L-IS). The goal of the
M4L-IS Program is to provide needs-based individual support to combat-wounded
Marines and sailors from the time of injury through the post-discharge transition
period (up to one year after release from active duty) until they are fully integrated
into the VA system. The program’s features include pre- and post-service separation
case assistance; coordination with physical evaluation boards; coordination with
veterans, public, and private organizations providing support to the seriously injured;
and provision of referral services for disability specific information and mental health
services.49
Navy Safe Harbor Program. The Navy Personnel Command website has
links to a number of employment services for veterans and disabled veterans,
including those of the DOL and others such as the DOL’s Office of Disability
Employment Program (ODEP) and State Vocational Rehabilitation Services.50
U.S. Army Wounded Warrior Program (AW2). The AW2 program tracks
soldiers and their families for five years after medical retirement. Army Wounded
Warriors must suffer from injuries or illnesses incurred after September 11, 2001, in
support of the Global War on Terror and receive a 30% disability rating51 for one or
more injuries.52
In response to the recommendations of the 2004 Task Force report, the VR&E
has endeavored to develop an integrated working relationship with a wide range of
organizations, such as the Centers for Independent Living; the National Council on
Disability, the National Council on Independent Living, the Commission on
Accreditation of Rehabilitation Facilities, and the National Organization of Disability
Examining Physicians. The VR&E has also increased interaction with the vocational
rehabilitation activities of academic organizations and private sector disability,
rehabilitation, and employment firms and associations.
48 Available at [http://www.amc.army.mil/alwaysasoldier].
49 Available at [http://www.mfl.usmc.mil].
50 See [http://www.npc.navy.mil/CommandSupport/SafeHarbor/SH_JobPlacement.htm].
51 Conditions are based on the VA Schedule for Disability Ratings (VASDR) 2003 C.F.R.
38 Chapter 1, Part 4 as used by the U.S. Army Physical Disability Agency (USPDA).
52 Available at [http://www.aw2.army.mil].

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CRS-18
The VR&E maintains strategic partnerships with private sector companies such as
the Home Depot, the Mortgage Bankers Association, and faith-based organizations
such as the YMCA, Goodwill Industries International, and Disabled Sports to achieve
the goal of integrated and seamless delivery of services to disabled veterans.

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CRS-19
Appendix. 2008 VR&E Training Programs
Subsistence Allowance Rates
Category I. Below is the monthly allowance paid for training in an institution
of higher learning.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
520.74
645.94
761.18
55.49
¾-time
391.27
485.15
569.09
42.67
½-time
261.81
324.38
381.30
28.47
Category II. The monthly allowance paid while receiving full-time training in
non-pay, or nominal pay on-the-job training in a federal, state, local, or federally
recognized Indian tribe agency; training in the home; and vocational training in a
rehabilitation facility or sheltered workshop is shown in the table below.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
520.74
645.94
761.18
55.49
Category III. A monthly subsistence allowance is paid for non-pay or nominal
pay work experience in a federal, state, local, or federally recognized Indian tribe
agency. The rates are shown below.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
520.74
645.94
761.18
55.49
¾-time
391.27
485.15
569.09
42.67
½-time
261.81
324.38
381.30
28.47
Category IV. For full-time training only in farm cooperative, apprenticeship,
and other on-the-job training, a monthly subsistence allowance is paid. These
payments are variable based on wages received. The maximum rates are given
below.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
455.29
550.59
634.55
41.28
Category V. Veterans who receive greater than half-time training in a
combined institutional and on-the-job training program receive the following
monthly subsistence allowance.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Institutional
520.74
645.94
761.18
55.49
On-the-Job
455.29
550.59
634.55
41.28

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CRS-20
Category VI. Veterans enrolled in a rehabilitation facility and pursuing an
approved independent living program are paid a monthly subsistence allowance.
Rates are given below.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
520.74
645.94
761.18
55.49
¾-time
391.27
485.15
569.09
42.67
½-time
261.81
324.38
381.30
28.47
Category VII. When veterans are enrolled in a rehabilitation facility and
require extended evaluation, a monthly subsistence allowance is paid at the following
rates.
No
One
Two
Each Additional
Training Time Dependents ($) Dependent ($) Dependents ($) Dependent ($)
Full-time
520.74
645.94
761.18
55.49
¾-time
391.27
485.15
569.09
42.67
½-time
261.81
324.38
381.30
28.47
¼-time
130.89
162.20
190.64
14.20
Source: Tables prepared by the Congressional Research Service (CRS) using data from the
Department of Veterans Affairs, Veterans Benefit Administration, Vocational Rehabilitation &
Employment Service, VA Training Programs Subsistence Allowance Rate Increase as of October 1,
2007, available at [http://www.vba.va.gov/bln/vre/sa/08/safy08_rates.doc].

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