Veterans’ Benefits: The Vocational
Rehabilitation and Employment Program

Benjamin Collins
Analyst in Labor Policy
March 26, 2012
Congressional Research Service
7-5700
www.crs.gov
RL34627
CRS Report for Congress
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epared for Members and Committees of Congress

Veterans’ Benefits: The Vocational Rehabilitation and Employment Program

Summary
Vocational Rehabilitation and Employment for veterans (VR&E) is an entitlement program that
provides job training and related services to veterans with service-connected disabilities. In cases
where a disabled veteran is not able to work, the VR&E program provides independent living (IL)
services to help the veteran achieve the highest possible quality of life. The VR&E program is
administered by the Veterans Benefit Administration (VBA), part of the Department of Veterans
Affairs (VA).
To be entitled to VR&E services, a veteran must have received a discharge other than
dishonorable and be found to have either (1) a 20% service-connected disability and an
employment handicap, or (2) a 10% service-connected disability and a serious employment
handicap. After a veteran is found to be entitled to VR&E, a counselor helps the veteran identify a
suitable employment goal and determine what services will be necessary to achieve that goal. The
veteran is then assigned to one of five reemployment tracks:
Reemployment for veterans who wish to return to work they held prior to their
military service;
Rapid Access to Employment for veterans who already have the skills necessary
to compete in the job market and only need short-term services such as job search
assistance;
Employment through Long-Term Services for veterans who require postsecondary
or vocational training to reach their employment goals;
Self-employment for veterans who have the skills to start businesses; or
Independent Living for veterans for whom employment is not a viable goal.
The most common track is Employment through Long-Term Services, and the most common
form of training is undergraduate education.
In most cases, veterans are entitled to a subsistence allowance while they are enrolled in training.
In instances where a veteran is entitled to both VR&E benefits and the Post-9/11 GI Bill, the
veteran may couple VR&E training benefits with the higher subsistence allowance available
under the Post-9/11 GI Bill.
In FY2011, approximately 28,000 veterans developed a new plan of service with VR&E and
almost 10,000 veterans completed rehabilitation. In FY2012, the VA estimates that VR&E
benefits will cost $516 million, subsistence allowances for eligible veterans will be an additional
$433 million, and administrative costs will total $204 million.
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Veterans’ Benefits: The Vocational Rehabilitation and Employment Program

Contents
Background...................................................................................................................................... 1
History ....................................................................................................................................... 1
Recent Activity .......................................................................................................................... 2
VR&E Application Process ............................................................................................................. 3
Eligibility................................................................................................................................... 3
Duration of Eligibility ......................................................................................................... 3
Entitlement ................................................................................................................................ 4
Non-entitlement................................................................................................................... 4
Case Management and Rehabilitation Planning .............................................................................. 5
Services Provided by VR&E ........................................................................................................... 5
Service Delivery Tracks ............................................................................................................ 5
Reemployment Track .......................................................................................................... 6
Rapid Access to Employment Track ................................................................................... 6
Self-Employment Track ...................................................................................................... 6
Employment through Long-Term Services Track ............................................................... 7
Independent Living Services Track..................................................................................... 7
Utilization of Each Track........................................................................................................... 8
Monetary Benefits for VR&E Participants................................................................................ 9
Subsistence Allowance........................................................................................................ 9
VR&E Loans..................................................................................................................... 10
VR&E Participation and Outcome Data........................................................................................ 10

Tables
Table 1. Share of Veterans in Each VR&E Track ............................................................................ 9
Table 2. Vocational Rehabilitation & Employment Program Statistics, FY2008-FY2011........... 11
Table 3. Training Programs of VR&E Beneficiaries, FY2011 ...................................................... 11
Table 4. Outcomes for Veterans Rehabilitated Through the VR&E Program, FY2011................. 12

Appendixes
Appendix. Other Responsibilities of the VR&E Program ............................................................. 13

Contacts
Author Contact Information........................................................................................................... 14
Acknowledgments ......................................................................................................................... 14

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Veterans’ Benefits: The Vocational Rehabilitation and Employment Program

ocational Rehabilitation and Employment for veterans (VR&E) is an entitlement program
that provides job training and related services “to enable veterans with service-connected
V disabilities to achieve maximum independence in daily living and, to the maximum extent
feasible, to become employable and to obtain and maintain suitable employment.”1 The program
is administered by the Veterans Benefit Administration (VBA) of the Department of Veterans
Affairs (VA). The VR&E program provides comprehensive services to enable veterans with
service-connected disabilities and employment handicaps to become employable and maintain
suitable employment.2 For severely disabled veterans, the program strives to help them achieve
the highest quality of independent living possible with a future chance of employment, given
medical and technological advances.
The primary functions of the VR&E program are authorized under 38 U.S.C., Chapter 31. VR&E
staff also have several other VBA-related responsibilities that are assigned in other chapters of
Title 38. These functions are outlined in Appendix. The body of this report will focus on the
primary functions described in Chapter 31.
Background
History
In 1918, Congress passed P.L. 65-178, the Vocational Rehabilitation Act, to provide for the
retraining of disabled persons who 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 broadened eligibility and provided that any eligible
veteran may receive up to four years of training specifically directed to restoring employability.
Under this program, the VA provided services to 621,000 disabled World War II veterans.
Since then, the scope of the veterans rehabilitation program has been modified and expanded to
better fulfill its mission. The program has undergone several name changes and has usually been
aligned with the education services of the VBA. In 1999, the VR&E program acquired its current
name with the intention of emphasizing employment services and job placement.
In 2004, the Secretary of Veterans Affairs responded to continuing criticisms of VR&E’s
operations from Congressional committees, the Government Accountability Office (GAO), and
others by forming a task force to evaluate the program. The task force report found little evidence
that the program’s efforts to obtain jobs for rehabilitated veterans had been effective.3 Among its

1 38 U.S.C. 3100.
2 The VBA website defines suitable employment as “Work that is within a veteran’s physical and emotional
capabilities and is consistent with his or her pattern of abilities, aptitudes, and interests.” See http://www.vba.va.gov/
bln/vre/def.htm#se.
3 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).
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110 recommendations, the task force emphasized that VR&E should focus on employment and
place more emphasis on its clients’ skills rather than their disabilities. In response to these
recommendations, VR&E developed the five-track employment process discussed later in
this report.4
Recent Activity
Recent legislative activity concerning VR&E has dealt with modifying the program to better align
it with other VA programs and temporarily expanding benefits. P.L. 111-377, signed on January 4,
2011, modified the program so that veterans eligible for both VR&E training and the Post 9/11 GI
Bill (also known as Chapter 33 benefits) could utilize VR&E training benefits while collecting
the larger housing allowance associated with Chapter 33 benefits. Prior to this change, there was
concern that disabled veterans were forgoing the more comprehensive VR&E services to obtain
the higher immediate cash allowance that accompanied Chapter 33 benefits.
P.L. 112-56, signed on November 21, 2011, temporarily increased the maximum benefit duration
for veterans who had completed a VR&E program and exhausted their eligibility for
unemployment insurance. The provisions in the law grant eligible veterans one year of additional
VR&E-sponsored training. The expanded benefits are only available to veterans who apply to the
VR&E program before March 31, 2014.
Recent agency-level initiatives have focused on streamlining the transition between military
service and employment. The Coming Home to Work (CHTW) program provides outreach to
exiting servicemembers and recent veterans to aid the transition to civilian employment. CHTW
can also provide expedited access to VR&E services for eligible veterans. The Disability
Transition Assistance Program (DTAP) provides customized briefings for servicemembers and
veterans who may be eligible for VR&E services.
Obligations for mandatory VR&E benefits are estimated to be $949 million in FY2012. This
covers tuition and related expenses ($516 million) and subsistence allowances for individuals
who were enrolled in an eligible training program ($433 million). Estimated FY2012 obligations
are about 25% higher than FY2011 obligations.5 Most of this increase was due to higher spending
on subsistence allowances and largely related to the changes made by P.L. 111-377.
The program’s discretionary costs, which cover VR&E staff and other expenses, are estimated at
$204.3 million for FY2012.6 Approximately 74% of these expenditures were related to personnel.
In FY2012, the VR&E program estimates that it will employ 1,446 full-time equivalents. In the
program’s FY2013 budget request, it projects that increased demand for services and the
replacement of purchased services with full-time counselors would increase the number of
required full-time equivalents to 1,594 and financial obligations to $234 million.7

4 Testimony of Ruth Fanning, Director, VA’s VR&E Service, before the Senate Committee on Veterans’ Affairs,
February 5, 2008, available at http://www.va.gov/OCA/testimony/svac/080205RF.asp.
5 U.S. Department of Veterans Affairs, FY2013 Budget Submission, Volume III: Benefits and Burial Programs and
Departmental Administration, p. 2B-2, available online at http://www.va.gov/budget/products.asp.
6 P.L. 112-74 appropriated $2,018,764,000 in discretionary funds for “necessary operating expenses” related to the
VBA. The agency has discretion to allocate these funds for administrative costs across programs, so the actual
allocation to VR&E may vary somewhat.
7 Ibid. p. 4E-2 and 4E-3.
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VR&E Application Process
A veteran, a veteran’s 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. 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.8
There are two subsequent determinations between a veteran’s application for VR&E and his or
her receipt of services: eligibility and entitlement.
Eligibility
The first step in obtaining VR&E services is establishing eligibility. To be eligible for VR&E
services, a veteran must9
• have served on or after September 16, 1940;
• have received, or will receive, a discharge under conditions other than
dishonorable;10 and
• have a service-connected disability rating of 10% or greater.11
Current servicemembers pending 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.
Duration of Eligibility
Veterans are eligible for VR&E services for 12 years after separation from active military duty. In
cases where a veteran was notified of a service-connected disability rating after separation,
eligibility extends 12 years from the date of notification.
The period of eligibility may be extended if the VA determines that the veteran has a serious
employment handicap, has not yet been rehabilitated to the point of employability, 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.12

8 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. Forms
may also be downloaded from the VA website at http://www.va.gov/vaforms and then submitted to a local VR&E
office or requested by phone and then returned.
9 See 38 U.S.C. 3102-3103.
10 For more information on discharge criteria, see CRS Report R42324, “Who is a Veteran?”—Basic Eligibility for
Veterans’ Benefits
, by Christine Scott.
11 For an in-depth discussion of the VA’s disability evaluation process and policies, see CRS Report RL33991,
Disability Evaluation of Military Servicemembers, by Christine Scott and Don J. Jansen.
12 See 38 U.S.C. 3013(c).
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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.13
Entitlement
Once eligibility is established, an applicant completes a comprehensive evaluation with a
Vocational Rehabilitation Counselor (VRC). The evaluation includes
• an assessment of the veteran’s interests, aptitudes, and abilities;
• an assessment of whether service-connected disabilities impair the veteran’s
ability to secure and maintain suitable employment; and
• identification of services necessary to maintain a career or achieve maximum
independence.
An applicant is entitled to VR&E services if he or she is found to have
• a 20% service-connected disability and an employment handicap; or
• a 10% service-connected disability and a serious employment handicap.
An employment handicap is an impairment of a veteran’s ability to prepare for, obtain, or retain
employment consistent with his or her abilities, aptitudes, and interests. 14
A serious employment handicap 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. 15
To be entitled to VR&E services, the veteran’s service-connected disability must contribute to the
employment handicap and 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.16
Non-entitlement
A veteran who applies for VR&E services but is not found to be entitled to services will be
informed about appeal rights and the appeals process. The counselor will also use the information
gathered in the application process to recommend other services. Veterans who utilize the public

13 See 38 U.S.C. 3103(d).
14 See 38 U.S.C. 3101(1).
15 See 38 U.S.C. 3101(2).
16 These veterans are awarded total disability benefits (compensation) based on individual unemployability and are
afforded VR&E benefits.
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workforce system in their respective states may seek additional assistance through the
Department of Labor’s Disabled Veterans Outreach Program (DVOP).17
Case Management and Rehabilitation Planning
After a veteran is found to be entitled to VR&E services, a case manager is assigned to work with
the veteran. The case manager works in conjunction with a VRC and the veteran to determine an
employment goal and assess obstacles to employment. A written rehabilitation plan is then
developed, describing the goal of the VR&E program and the services required to achieve the
goal.18 The required services may be provided by the VRC or the case manager may provide
referrals for other services. The plan is reviewed with the participation of the client at least once a
year.19
The VR&E program must track each entitled veteran and his or her progress toward the
employment goal. The rehabilitation phase of the VR&E program includes the following stages:
• evaluation and planning,
• extended evaluation,
• rehabilitation and employability (training or education),
• independent living,
• job ready status, and
• interrupted status.
Services Provided by VR&E
The most common services provided by VR&E agencies are funding for higher education and
short-term employment services like job search assistance. The full range of services that VR&E
agencies are required to make available to entitled clients, however, is much broader and includes
a variety of specialized services for workers with disabilities. 20
Service Delivery Tracks
One of the 2004 task force’s major recommendations led to the development of a new five-track
service delivery system designed to make VR&E’s services more employment-focused. The
combination of services that VR&E provides or coordinates depends largely upon the veteran’s
VR&E track.

17 For information on the public workforce system, see CRS Report R41135, The Workforce Investment Act and the
One-Stop Delivery System
, by David H. Bradley.
18 See 38 U.S.C. 3106.
19 See 38 U.S.C. 3106(b).
20 Additional required services may include corrective assistive devices, travel expenses, and independent living
services. See 38 U.S.C. 3104, 3109, and 3120.
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Reemployment Track
The Reemployment Track is for veterans who wish to return to work with their previous
employers. In addition to the case management and counseling that all VR&E beneficiaries
receive, veterans on the reemployment track may receive assistance from the VA to make their
workplace more accessible. They may also receive counseling on workplace rights for veterans.21
A veteran on this track is considered rehabilitated when he or she has completed the employment
program and maintained suitable employment for 60 days.22
Rapid Access to Employment Track
The Rapid Access to Employment Track emphasizes the goal of immediate employment and is
available to separating veterans who already have the skills necessary to compete in the job
market in appropriate occupations. On this track, VR&E services may include job readiness
preparation, resume development, or job search assistance. The VRC may also counsel veterans
on this track in disability rights and assist an employer in providing accommodations to
a disability.
A veteran on this track is considered rehabilitated when he or she has completed the employment
program and maintained suitable employment for 60 days.
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.
A self-employment plan with an estimated or actual cost of less than $25,000 may be approved by
the VR&E Officer. A self-employment plan with an estimated cost of $25,000 or more must be
approved by the Director of VR&E Services.23
A veteran on this track is considered rehabilitated when he or she has completed the self-
employment program and maintained a viable business for one year.

21 In addition to the rights afforded by the Americans with Disabilities Act of 1990 (ADA; 42 U.S.C. 12101-12213),
disabled veterans are also entitled to additional rights under the Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA, 38 U.S.C. 4301-4335).
22 Rehabilitation criteria are from the Government Accountability Office (GAO) report VA Vocational Rehabilitation
and Employment: Better Incentives, Workforce Planning, and Performance Reporting Could Improve Program
.
January 2009.
23 See 38 CFR 21.258.
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Employment through Long-Term Services Track
This track targets veterans who need long-term employment training to prepare them for suitable
employment. Formal classroom courses are the most common long-term service, though training
may also include on-the-job training, apprenticeships, internships, job shadowing, work
monitoring, work-study, or public-private job partnering.
Services last as long as is necessary for the beneficiary to attain the objectives set out in his or her
employment plan, but may not exceed 48 months (or the equivalent when pursued on a part-time
basis).24 In limited circumstances (such as a veteran’s disability worsening during the
rehabilitation process and the original employment objective becoming unviable), a rehabilitation
program can be extended beyond 48 months. Extensions must be approved by a counseling
psychologist and a VR&E officer.25
Veterans on this track may also receive a subsistence allowance while enrolled in a training
program. The subsistence component of the program is described in detail in the “Subsistence
Allowance” subsection later in this report.
As described previously, P.L. 112-56 temporarily provides an additional year of training under the
VR&E program for veterans who have (1) successfully completed a VR&E program and (2)
exhausted their rights to unemployment benefits. The veteran must apply for the additional year
of training before March 31, 2014.
A veteran on the employment through long-term services track is considered rehabilitated when
he or she has completed a training program and maintained employment for 60 days.
Independent Living Services Track
The Independent Living (IL) Services Track is for veterans who may not be able to work
immediately and need additional rehabilitation to enable them to live more independently. The
short-term focus of the program is on allowing veterans to participate in family and community
life, but it also aims to increase their ability to possibly return to work in the longer term. 26
Veterans on this VR&E track may be provided with assistive technology, independent living skills
training, and connections to community-based support services.
To meet the needs of veterans with severe disabilities and mobility impairments, VR&E’s IL
program may work with the VA’s Loan Guaranty Service and the Specially Adapted Housing
(SAH) grant program, the Home Improvements and Structural Alterations (HISA) program, the
Automobile Adaptive Equipment program, and the Visually Impaired Services Team (VIST). 27
The VR&E also works with the Committee on Care of Veterans with Severe Mental Illness
(SMI)28 and the Traumatic Brain Injury Caregivers Panel.29

24 See 38 C.F.R. 21.70(b)(1).
25 See 38 C.F.R. 21.78.
26 See 38 U.S.C. 3109.
27 For information on housing and automobile grants, see CRS Report RL34626, Veterans’ Benefits: Benefits Available
for Disabled Veterans
, by Christine Scott, Carol D. Davis, and Libby Perl.
28 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.
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When it was first established in 1980, the IL program had an annual cap of 500 new cases.30 This
cap was subsequently increased, and in FY2012 a maximum of 2,700 veterans will be permitted
to begin an IL program.31
IL programs for veterans usually last 24 months, but they may be extended for an additional six
months in exceptional circumstances. P.L. 110-389 provided a waiver from the 24-month
limitation if the VA Secretary determines that additional time is needed for a veteran with post-
9/11 service who has a severe disability.
IL 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.32
Utilization of Each Track
VR&E does not report the number of individuals who choose each track. A 2009 GAO report
analyzed program data and reported the most recent track selection for almost 24,000 veterans
who developed a new plan of service. GAO’s findings are listed in Table 1 and show that the vast
majority chose employment through long-term services and that less than 10% pursued self-
employment or one of the short-term programs. GAO cautioned that these data may be imprecise
because not all program participants were associated with a track and some beneficiaries may
change tracks during the reemployment process.33

(...continued)
29 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, Christine Scott, and Sidath Viranga Panangala.
30 See P.L. 96-466, the Veterans Rehabilitation and Education Amendments of 1980.
31 This limit of 2,700 was established by the Veterans Benefits Act of 2010 (P.L. 111-275). The cap was previously
increased to 2,500 by the Veterans Education and Benefits Expansion Act of 2001 (P.L. 107-103) and to 2,600 by the
Veterans’ Benefits Improvement Act of 2008 (P.L. 110-389).
32 See 38 C.F.R. 21.430(c)
33 Government Accountability Office. VA Vocational Rehabilitation and Employment: Better Incentives, Workforce
Planning, and Performance Reporting Could Improve Program
. GAO-09-34. January 2009, p. 10.
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Table 1. Share of Veterans in Each VR&E Track
Beginning a plan of service between January 2007 to May 2008
VR&E Track
Share of Recipients
Reemployment 1.4%
Rapid Access to Employment
7.2%
Self-Employment 0.4%
Employment Through Long-Term Services
79.6%
Independent Living
11.4%
Source: Government Accountability Office, VA Vocational Rehabilitation and Employment:
Better Incentives, Workforce Planning, and Performance Reporting Could Improve Program
, GAO-09-34,
January 2009.
Monetary Benefits for VR&E Participants
In addition to training benefits and other employment services, veterans who are entitled to
VR&E services are also eligible for certain financial benefits.
Subsistence Allowance
Most veterans who are receiving benefits under the VR&E program are also eligible for a
monthly subsistence allowance. Veterans who are only receiving (1) initial evaluation, (2)
placement or post-placement services, and (3) counseling from the VR&E program are not
eligible for a subsistence allowance, nor are veterans who are enrolled in a training program less
than half-time.34
The subsistence allowance varies by the type of program the veteran is enrolled in and whether or
not the veteran has dependents. In FY2012, the monthly allowance for a veteran enrolled full-
time at an institute of higher learning with two dependents is $829.35 The subsistence allowance
continues as long as the veteran is enrolled in an eligible program and continues for two months
after the program of training has been completed. The subsistence allowance is increased each
year proportionate to the rate of inflation.36
As noted previously, P.L. 111-377 modified the subsistence component of VR&E so that veterans
who are eligible for both VR&E services and the Post-9/11 GI Bill (also known as Chapter 33
benefits) may opt for the subsistence allowance offered under Chapter 33 while receiving training
and other benefits under Chapter 31. Chapter 33 allowances are determined by a veteran’s
locality. In FY2012, the Chapter 33 allowance ranges from $720 to $2,742 per month. 37

34 See 38 U.S.C. 3108 and 38 C.F.R. 21.260(d).
35 Subsistence rates for VR&E participants are available on the VBA website at http://www.vba.va.gov/bln/vre/doc/
sa_rates.pdf.
36 38 U.S.C. 3108.
37 The allowance under Chapter 33 is equal to the basic housing allowance for a servicemember with dependents in pay
grade E-5. Allowances are determined by zip code and FY2012 allowances at http://www.defensetravel.dod.mil/Docs/
perdiem/browse/Allowances/BAH/PDF/2012/2012-With-Dependents-BAH-Rates.pdf.
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In FY2011, subsistence costs for VR&E beneficiaries were $287 million. In FY2012, benefits are
expected to rise to $432 million. The VA estimates that $111 million of this increase is due to the
changes made by P.L. 111-377.
VR&E Loans
Veterans entitled to VR&E benefits may also be eligible for interest-free loans. These loans are
only available to veterans who have a plan of service with VR&E and “would otherwise be
unable to begin, continue or reenter his or her rehabilitation program.”38 The maximum loan
amount is equal to twice the weekly subsistence allowance for a veteran with no dependents
($1,134 in FY2011).39
Repayment of the loan is made in monthly installments from future wages, pensions, subsistence
allowances, educational assistance allowance, or retirement pay. The VA reported that 2,160 loans
were made in FY2011 and that the default rate was less than 0.5%.40
In FY2012, $362,000 was appropriated for this program, of which $343,000 went to
administrative costs. The remaining $19,000 represents the subsidy of the loan program. All
actual loans and repayments are off-budget.
VR&E Participation and Outcome Data
Table 2 shows program data from FY2008 through FY2011. The categories for “eligible”,
“completed evaluation,” “entitled to services,” and “new plans of service” trace the number of
individuals who continued through each stage of the application process. The “rehabilitated”
category refers to veterans who secured and maintained suitable employment or completed an
independent living program. “Participants” is the broadest measure of program use and includes
veterans in any stage of the VR&E process, including pending applicants and those in interrupted
rehabilitation status.

38 See 38 C.F.R. 21.274(c).
39 See 38 U.S.C. 3112.
40 U.S. Department of Veterans Affairs, FY2013 Budget Submission, Volume III: Benefits and Burial Programs and
Departmental Administration, p. 2C-2, available online at http://www.va.gov/budget/products.asp.
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Table 2. Vocational Rehabilitation & Employment Program Statistics,
FY2008-FY2011
VR&E
Category
2008 2009 2010 2011
Applicants
68,949 77,998 69,390 65,239
Eligible
65,784 74,617 66,717 62,726
Completed evaluation
39,910
44,089
46,523
n/a
Entitled to Services
35,166
38,802
41,102
41,229
New Plans of Service
26,703
28,997
27,904
27,821
Rehabilitated 11,039
11,022
10,038
9,862





Participants
103,126 110,750 117,130 116,295
Source: Table prepared by CRS using data from the Department of Veterans Affairs, Veterans Benefits
Administration, Annual Benefits Report for FY2008-FY2011. Reports are available at http://www.vba.va.gov/
REPORTS/abr/index.asp.
Table 3 shows the types of programs that beneficiaries participated in during FY2011. The table
only includes individuals who were concurrently receiving a subsistence allowance while they
completed an educational program. It does not include individuals who were receiving training
without an accompanying subsistence allowance nor does it include individuals who received
nonmonetary benefits from VR&E such as counseling or job search assistance.
Table 3. Training Programs of VR&E Beneficiaries, FY2011
Program
Individuals
Share of Beneficiaries
Undergraduate School
49,440
82.7%
Graduate School
3,581
6.0%
Vocational/Technical School
3,317
5.5%
Col ege, Non-degree
1,463
2.5%
Othera 1,983
3.3%
Total 59,784
100.0%
Source: Department of Veterans Affairs, Veterans Benefits Administration Annual Benefits Report for FY2011,
p.77. Report is available at http://www.vba.va.gov/REPORTS/abr/index.asp.
Note: Data only include individuals who received a subsistence allowance.
a. Includes veterans enrol ed in paid on-the job training, non-pay work experience in government, non-pay on
the job training, apprenticeships, improvement of rehabilitation potential, extended evaluation or
independent living, high school, or a farm co-op.
Table 4 presents outcome data on VR&E participants who completed the rehabilitation process in
FY2011. Among rehabilitated veterans, the average annual wage after rehabilitation was $35,719,
compared to $7,499 before receiving services. This calculation only considers participants who
obtained employment after rehabilitation; it does not include veterans who completed an
independent living program.
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Table 4. Outcomes for Veterans Rehabilitated Through the VR&E Program, FY2011
Number
Share
Rehabilitated 9,862
100.0%
Completed Independent Living Program
2,442
24.8%
Placed in employment
7,420
75.2%
Employed in Professional Technical, or Managerial occupations
5,603
56.8%
Employed in other occupations
1,817
18.4%
Source: Department of Veterans Affairs, Veterans Benefits Administration Annual Benefits Report for FY2011, p.
79. Report is available at http://www.vba.va.gov/REPORTS/abr/index.asp.
In addition to usage and outcome data, VR&E also publishes an annual rehabilitation rate to track
the overall effectiveness of the program. VR&E defines its rehabilitation rate as the proportion of
clients who were rehabilitated as a share of all clients that exited the program, minus individuals
that exited for reasons beyond VR&E’s control.41 In FY2011, VR&E’s rehabilitation rate was
77%. Between FY2008 and FY2011, the rate varied from 74% to 77%.42

41 VR&E excludes veterans from the calculation who accept positions incompatible with their disability; those they
consider employable, but who are no longer seeking employment; and those they consider unemployable due to
medical or psychological reasons. See p. 21-23 of GAO-09-34 for a full discussion of the VR&E rehabilitation rate.
42 U.S. Department of Veterans Affairs, FY2013 Budget Submission, Volume III: Benefits and Burial Programs and
Departmental Administration, p. 4E-10. Available online at http://www.va.gov/budget/products.asp.
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Appendix. Other Responsibilities of the
VR&E Program

In addition to activities authorized under Chapter 31 of Title 38 of the U.S. Code, VR&E also
provides several other services to veterans and family members who are eligible for other
VA programs.
Vocational and Educational Counseling
VR&E counselors are available to provide vocational and educational counseling to active duty
servicemembers, veterans, military spouses, and dependents who are eligible for certain education
benefits. Much like the counseling provided to Chapter 31 beneficiaries, these services are
designed to help individuals choose a suitable vocational goal and the education necessary to
achieve that goal. Assistance may include testing for aptitude, exploring occupations, setting
occupational goals, locating the right type of training program, and exploring educational or
training facilities. Beneficiaries of the following programs are eligible for counseling: 43
• Benefits for Children of Vietnam Veterans with Spina Bifida and Other Birth
Defects (38 U.S.C., Chapter 18; also eligible for VR&E training, details below);
• All-Volunteer Force Educational Assistance Program (Montgomery GI Bill-
Active Duty; 38 U.S.C., Chapter 30);
• Post-Vietnam Era Veterans’ Educational Assistance Program (38 U.S.C., Chapter
32);
• Post-9/11 Veterans Educational Assistance Program (Post 9/11 GI Bill; 38
U.S.C., Chapter 33);
• Survivors’ and Dependents Educational Assistance (38 U.S.C., Chapter 35);
• Educational Assistance for Members of the Selective Reserve (Montgomery GI
Bill-Selected Reserves; 10 U.S.C., Chapter 1606); and
• Reserve Educational Assistance Program (10 U.S.C., Chapter 1607).
Regardless of the individual’s eligibility for any of the above programs, educational counseling is
also available to all transitioning servicemembers for up to six months prior to and one year after
discharge. In all cases, educational counseling services may be provided by VR&E staff or
contract counselors.
Vocational Training for Children of Vietnam Veterans with Spina
Bifida and Other Birth Defects

Children of Vietnam and Korean War veterans who were born with spina bifida and children of
female Vietnam veterans who were born with certain birth defects are eligible for vocational

43 For more information on these programs, see CRS Report R40723, Educational Assistance Programs Administered
by the U.S. Department of Veterans Affairs
, by Cassandria Dortch.
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training benefits, implemented through the VR&E infrastructure.44 This program offers a shorter
duration of training benefits (24 months maximum) than the regular VR&E program and no
subsistence allowance. Current usage of this program is limited. An inquiry to the VA in 2012
found that 20 individuals were presently enrolled and five individuals were successfully
rehabilitated under this program in FY2011.45
Special Restorative Training
VR&E may also provide special restorative training and counseling to eligible spouses and
children to help them to overcome or lessen mental or physical disabilities that would handicap
them in pursuit of a qualified educational program under Chapter 35 benefits. Once eligible, the
spouse or children would receive a comprehensive evaluation to identify the best program or
services for their needs. A case manager is to assist the family member throughout the entire
program. Normal assistance may continue until the spouse or child has achieved the goals of the
special restorative training program.



Author Contact Information

Benjamin Collins

Analyst in Labor Policy
bcollins@crs.loc.gov, 7-7382

Acknowledgments
The report was originally written by Christine Scott, Carol D. Davis, and Beverley A. Crane. All questions
should be directed to the current author.

44 38 U.S.C. 1804 and 1812.
45 Response from the VA to a CRS inquiry, received February 29, 2012.
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