Veterans’ Benefits: The Veteran Readiness and Employment Program

August 21, 2008 – May 10, 2021 RL34627

Veterans’ Benefits: The Veteran Readiness and
Employment Program
Updated May 10, 2021
Congressional Research Service
https://crsreports.congress.gov
RL34627

Veterans’ Benefits: The Veteran Readiness and Employment Program

Summary
The Veteran Readiness and Employment program (VR&E; formerly Vocational Rehabilitation
and Employment) is an entitlement program that provides job training and other employment-
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 Benefits Administration (VBA), part of the Department of Veterans Affairs (VA).
To be entitled to VR&E services, a veteran must have been discharged under conditions other
than dishonorable and be found to have either (1) a service-connected disability rated at 20% or
more and an employment handicap, or (2) a service-connected disability rated at 10% and a
serious employment handicap. After a veteran is found to be entitled to VR&E, a vocational
rehabilitation counselor helps the veteran identify a suitable employment goal and determine what
services wil 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 skil s 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 skil s to start businesses; or
 Independent Living for veterans for whom employment is not a viable goal.
Veterans may change tracks if a disability worsens or if their employment objective changes.
Services may be provided by the VA, though they are more frequently purchased from an outside
provider.
VR&E benefits are typical y limited to 48 months, though the benefit period can be extended
under certain circumstances. In most cases, veterans are entitled to a subsistence al owance while
they are enrolled in an education or training program.
VR&E is an entitlement for eligible veterans. In FY2019 (the most recent year for which
spending data are available), costs for mandatory VR&E benefits were approximately $1.4
bil ion. Discretionary support services and other administrative costs were approximately $241
mil ion.
Congressional Research Service

Veterans’ Benefits: The Veteran Readiness and Employment Program

eterans Readiness and Employment (VR&E) is an entitlement program that provides job
training and related services “to enable veterans with service-connected disabilities to
V 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 Benefits Administration (VBA) at 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 for whom employment is not possible, 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.
This report provides an overview of the VR&E program. After a brief background section, it
describes how the program establishes individual veterans’ entitlements and the scope of benefits
and services available to qualified veterans. The final section provides participation and outcome
data.
Background
History
In 1918, Congress enacted 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. In 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
enacted P.L. 78-16, which broadened eligibility and provided that any eligible veteran may
receive up to four years of training specifical y directed to restoring employability.
In subsequent years, the scope of the veterans’ rehabilitation program has been modified and
expanded to better fulfil its mission. The program has undergone several name changes and has
usual y been housed with the education services in the Department of Veterans Affairs (VA). In
1999, the program adopted the “Vocational Rehabilitation and Employment” 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, 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 110
recommendations, the task force emphasized that VR&E should focus on employment and place

1 See 38 U.S.C. §3100.
2 T he VBA website defines suitable employment as “ Employment that does not aggravate the Veteran’s disabilities, is
stable, 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 Department of Veterans Affairs, VA Vocational Rehabilitation and Employment T ask Force, Report to the Secretary
of Veterans Affairs: The Vocational Rehabilitation and Em ploym ent Program for the 21st Century Veteran, 2004.
Congressional Research Service

1

Veterans’ Benefits: The Veteran Readiness and Employment Program

more emphasis on its clients’ skil s rather than their disabilities. In response to these
recommendations, the program developed the five-track system discussed later in this report.4
Recent Developments
Name Change
In June 2020, the VA changed the name of its Vocational Rehabilitation and Employment
program to “Veterans Readiness and Employment.”5 The announcement of the name change
noted that the new name al owed the program to retain the established VR&E initials.6 The name
change was not accompanied by changes to the program’s eligibility or benefits.
COVID-19 Response
To respond to interruptions due to the COVID-19 pandemic, various temporary modifications
were made to veterans’ education programs, including VR&E. These changes general y extended
benefits for veterans whose programs were interrupted by the pandemic. For more information,
see CRS In Focus IF11685, Special Authorities for Veterans’ Educational Assistance Programs
During the COVID-19 Emergency.
Authorization and Administration
The VR&E program is authorized by Chapter 31 of Title 38 of the U.S. Code. Veterans’ benefits
are often referred to by their authorizing chapter of Title 38. As such, VR&E benefits are often
described as “Chapter 31” benefits.7 The VR&E program is administered by the Veterans Benefits
Administration (VBA) within the VA.
Financing and Costs
VR&E costs are divided between mandatory and discretionary spending. VR&E funds are
appropriated with other VA-administered readjustment benefits in the Military Construction-
Veterans Affairs appropriations bil .
VR&E benefits and the subsistence al owances for VR&E beneficiaries are mandatory spending.
Costs for these activities in FY2019 were $1.388 bil ion.8 This FY2019 total consists of $762
mil ion for VR&E benefits in the form of tuition, books, and other direct assistance as wel as

4 T estimony 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 Department of Veterans Affairs, “ VA’s Vocational Rehabilitation and Employment service signals transformation
through readiness,” June 22, 2020, https://www.va.gov/opa/pressrel/pressrelease.cfm?id=5473#:~:text=
WASHINGT ON%20%E2%80%94%20T he%20U.S.%20Department%20of,reflect%20the%20needs%20of%20Vetera
ns.
6 Neither “Vocational Rehabilitation and Employment” nor “Veterans Readiness and Employment” appear in statute.
Statutory references to the program typically refer to “ Chapter 31” benefits in reference to the authorizing’s statute’s
place in T itle 38 of the U.S. Code.
7 Other examples include the Post -9/11 G.I. Bill (Chapter 33) and the Montgomery G.I. Bill-Active Duty (Chapter 30).
8 Department of Veterans Affairs FY2021 Budget, Volume III: Benefits and Burial Programs and Departmental
Administration, p. VBA-74, http://www.va.gov/budget/products.asp.
Congressional Research Service

2

link to page 6 Veterans’ Benefits: The Veteran Readiness and Employment Program

$626 mil ion in subsistence al owances for individuals who were enrolled in an eligible training
program.9 Table 1 presents benefit costs from FY2015 through FY2019.
Table 1. Vocational Rehabilitation and Employment Program Benefit Costs,
FY2015-FY2019
(nominal dol ars in mil ions)

FY2015
FY2016
FY2017
FY2018
FY2019
Tuition, Books, Supplies, etc.
$702
$741
786
$790
$762
Subsistence Al owance
$441
$573
622
$641
$626
Total
$1,144
$1,315
$1,407
$1,432
$1,388
Source: Department of Veterans Affairs Budget Justifications, FY2017 through FY2021, available at
http://www.va.gov/budget/products.asp. Each year’s funding is taken from the “Summary of Appropriations
Highlights” table in the budget justification two years subsequent to the year listed.
Notes: Table reflects actual costs for mandatory benefits and may not equal appropriation amounts. Totals may
not equal sum of components due to rounding. Costs do not include administrative expenses and other
discretionary services.
The VR&E program’s discretionary costs, which cover VR&E staff, counseling from such staff,
and other expenses, were about $241 mil ion for FY2019. In FY2019, the VR&E program
reported that it employed about 1,600 full-time equivalents.10
VR&E Application Process
There are two determinations between a veteran’s application for VR&E and his or her receipt of
services: eligibility and entitlement.
Eligibility
A veteran must apply to the VA to establish eligibility. To be eligible for VR&E services, a
veteran must11
 have served on or after September 16, 1940;
 have received, or wil receive, a discharge under conditions other than
dishonorable;12 and
 have a service-connected disability rating of 10% or more.13

9 Ibid. In many cases, FY2019 data were the most recent available for this program. In the interest of consistency,
FY2019 data are used throughout this report. Some estimates for FY2020 funding are available in the VA budget
justification that is cited throughout this report.
10 Department of Veterans Affairs FY2021 Budget, Volume III: Benefits and Burial Programs and Departmental
Administration, p. VBA-234, http://www.va.gov/budget/products.asp. VR&E counselors may also provide services to
beneficiaries of other VA education programs.
11 See 38 U.S.C. §§3102-3103.
12 For more information on discharge criteria, see CRS Report R42324, Who Is a “Veteran”?—Basic Eligibility for
Veterans’ Benefits.
13 For more details on the VA’s disability evaluation process and policies, see CRS Report R44837, Benefits for
Service-Disabled Veterans.
Congressional Research Service

3

Veterans’ Benefits: The Veteran Readiness and Employment Program

Active duty servicemembers are eligible for VR&E services if their service-connected 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 stil 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.14
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 wil achieve
maximum independence, the period of eligibility may be extended.15
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 the evaluation finds that he or she has
 a service-connected disability rated at 20% or more and an employment
handicap; or
 a service-connected disability rated at 10% 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.16
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.17
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.

14 See 38 U.S.C. §3013(c).
15 See 38 U.S.C. §3103(d).
16 See 38 U.S.C. §3101(1).
17 See 38 U.S.C. §3101(2).
Congressional Research Service

4

Veterans’ Benefits: The Veteran Readiness and Employment Program

Non-entitlement
A veteran who applies for VR&E services but is not found to be entitled to services is to be
informed about appeal rights and the appeals process. The VA wil also use the information
gathered in the application process to recommend other services.18
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.19 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.20
Services Provided by VR&E
The most common services provided by VR&E agencies are funding for higher education, career
counseling, 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.21
Service Delivery Tracks
Each VR&E beneficiary is assigned to a service delivery track based on the veteran’s objective
and services needed. If necessary, a veteran may change tracks while enrolled in the VR&E
program. In a 2019 hearing, the VA reported that 96% of program participants were in the
Employment Through Long-Term Services Track.22
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 al 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.23

18 For an overview federal employment programs for veterans, see CRS In Focus IF10490, Veterans’ Employment, by
Benjamin Collins.
19 See 38 U.S.C. §3106.
20 See 38 U.S.C. §3106(b).
21 Additional required services may include corrective assistive devices, travel expenses, and independent living
services. See 38 U.S.C. §§3104, 3109, and 3120.
22 See testimony of William Streitberger, Director of VR&E, before the House Subcomm ittee on Economic
Opportunity, House Committee on Veterans’ Affairs, June 4, 2019, http://docs.house.gov/meetings/VR/VR10/
20190604/109562/HHRG-116-VR10-Wstate-StreitbergerW-20190604.pdf.
23 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).
Congressional Research Service

5

Veterans’ Benefits: The Veteran Readiness and Employment Program

A veteran on this track is considered rehabilitated when he or she has completed the employment
program and maintained suitable employment for 60 days.24
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 skil s necessary to compete in the job
market in suitable 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 with assistance in the
development of a business plan, training in the operation of smal businesses, financial assistance,
and guidance on obtaining adequate resources to implement the business plan.
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.
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, or other workplace preparation
programs. While counselors have the authority to approve a wide variety of programs, statute
specifies that “to the maximum extent practicable,” courses under the VR&E program should be
courses that are approved for the GI Bil .25
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).26 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.27
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.

24 Rehabilitation criteria are from the Government Accountability Office (GAO) report VA Vocational Rehabilitation
and Em ploym ent: Better Incentives, Workforce Planning, and Perform ance Reporting Could Im prove Program.
January 2009. Rehabilitation criteria are also available at 38 C.F.R. §21.283.
25 See 38 U.S.C. §3104(b).
26 See 38 C.F.R. §21.70(b)(1).
27 See 38 C.F.R. §21.78.
Congressional Research Service

6

Veterans’ Benefits: The Veteran Readiness and Employment Program

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 al owing 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.28
Veterans on this VR&E track may be provided with assistive technology, independent living skil s
training, and connections to community-based support services.
Unlike the other VR&E tracks, the IL track is limited in the number of veterans it can serve.
Currently, 2,700 veterans are permitted to begin an IL program each year.29 This limit is waived
for veterans who have been adversely affected by a natural or other disaster, as determined by the
VA.30
IL programs for veterans are typical y limited to 24 months. This limit can be extended if the VA
determines that an extension would substantial y increase a veteran’s level of independence in
daily living. The limit may also be extended for veterans who served after September 11, 2011,
and have a severe disability.
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
Many veterans who are receiving benefits under the VR&E program are also eligible for a
monthly subsistence al owance. Veterans who are only receiving (1) initial evaluation, (2)
placement or postplacement services, and (3) counseling from the VR&E program are not eligible
for a subsistence al owance, nor are veterans who are enrolled in a training program less than
half-time.31
The VR&E subsistence al owance varies by the type of program the veteran is enrolled in and
whether or not the veteran has dependents. As of October 1, 2020, the monthly al owance for a
veteran enrolled full-time at an institute of higher learning with two dependents is $956.32 The
subsistence al owance is increased each year proportionate to the rate of inflation.33 The
subsistence al owance 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. In cases where a

28 See 38 U.S.C. §3109.
29 T his limit of 2,700 was est ablished 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).
30 See 38 U.S.C. §3120(e)(2). T his change was made by Section 701(c) of P.L. 112-154, Honoring America’s Veterans
and Caring for Camp Lejeune Families Act of 2012.
31 See 38 U.S.C. §3108 and 38 C.F.R. §21.260(d).
32 A complete list of subsistence rates for VR&E participants as of October 1, 2020, is available at
https://www.benefits.va.gov/VOCREHAB/docs/VREratesFY21.pdf.
33 See 38 U.S.C. §3108.
Congressional Research Service

7

Veterans’ Benefits: The Veteran Readiness and Employment Program

veteran is displaced as the result of a natural or other disaster while receiving a subsistence
al owance, the subsistence al owance is extended for an additional two months.34
Typical y, veterans are not permitted to participate in both the VR&E program and another VA
educational program (such as a G.I. Bil program). However, veterans who are eligible for both
VR&E services and the Post-9/11 GI Bil (also known as Chapter 33 benefits) may collect the
housing al owance offered under Chapter 33 while receiving training and other benefits under
VR&E. This policy was instituted to eliminate the incentive for disabled veterans to choose the
Post-9/11 G.I. Bil (which typical y offers a higher cash al owance but fewer services) over the
VR&E program (which offers a lower cash al owance but more supportive services).
Unlike the VR&E subsistence al owances, which are the same for veterans nationwide, Chapter
33 housing al owances are determined by a veteran’s geographic location. In most cases, the local
Chapter 33 housing al owances are greater than nationwide VR&E subsistence allowances.35
In FY2019, the VA reported that VR&E subsistence al owance benefits totaled $626 mil ion.36
This estimate includes VR&E beneficiaries who collected the traditional subsistence al owance as
wel as VR&E beneficiaries who collected the Chapter 33 housing al owances in place of the
VR&E subsistence al owance.
VR&E Loans
Veterans who are 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.”37 The maximum loan
amount is equal to twice the weekly subsistence al owance for a veteran with no dependents
($1,308 in FY2021).38
Repayment of the loan is made in monthly instal ments from future wages, pensions, subsistence
al owances, educational assistance al owance, or retirement pay. The VA reported that “the
average default rate for these loans are expected to be zero percent because al loans should be
fully repaid from other VBA payments to the borrowers.”39 The VR&E loan program cost
$434,000 in FY2019, of which $396,000 was for administrative expenses.40
Participation and Outcome Data
The VR&E program has multiple measures of participation and outcomes. The VA publishes
participation and outcome data on the VR&E program as part of the Veterans Benefits

34 See 38 U.S.C. §3108(a)(2)(B). T his change was made by Section 701(b) of P.L. 112-154, Honoring America’s
Veterans and Caring for Camp Lejeune Families Act of 2012.
35 T he 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. T he full list of FY2021 allowances by locality is at
https://www.defensetravel.dod.mil/Docs/perdiem/browse/Allowances/BAH/PDF/2021/2021-With-Dependents-BAH-
Rates.pdf.
36 U.S. Department of Veterans Affairs, FY2021 Budget Submission, Volume III: Benefits and Burial Programs and
Departmental Administration, p. VBA-74, http://www.va.gov/budget/products.asp.
37 See 38 C.F.R. §21.274(c).
38 See 38 U.S.C. §3112.
39 U.S. Department of Veterans Affairs, FY2021 Budget Submission, Volume III: Benefits and Burial Programs and
Departmental Administration, p. VBA-95, http://www.va.gov/budget/products.asp.
40 Ibid.
Congressional Research Service

8

Veterans’ Benefits: The Veteran Readiness and Employment Program

Administration’s annual report. The most recent report with data from FY2019 was published in
July 2020.41

Author Information

Benjamin Collins

Analyst in Labor Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

41 See U.S. Department of Veterans Affairs, VBA Annual Benefits Report for Fiscal Year 2019, published at
https://www.benefits.va.gov/REPORT S/abr/. Historical reports are linked from the same page.
Congressional Research Service
RL34627 · VERSION 20 · UPDATED
9

Download PDF

Download EPUB

Revision History

May. 10, 2021

HTML · PDF

Feb. 21, 2018

HTML · PDF

2% changed

Jan. 20, 2015

HTML · PDF

21% changed

Mar. 26, 2012