Assistive Technology Act: Programs and Funding

Order Code RS21385
Updated June 10, 2003
CRS Report for Congress
Received through the CRS Web
Assistive Technology Act:
Programs and Funding
Sidath Viranga Panangala
Analyst in Social Legislation
Domestic Social Policy Division
Summary
The Assistive Technology Act (AT Act) of 1998 is a major source of federal
funding for individuals with disabilities needing Assistive Technology (AT). Assistive
Technology is generally defined as any kind of device or service that assists persons
with disabilities to perform day-to-day tasks and activities. Authorization for the AT
Act expires on September 30, 2004.
The FY2003 appropriation for programs authorized under the AT Act is $26.8
million, a 13% reduction from the President’s 2003 request. The Assistive Technology
State Grant program under Title I will receive approximately 76% ($20.3 million) of the
$26.8 million. The Administration has not requested any funding for AT Act programs
for FY2004. This report will be updated whenever new program or budget activity
occurs.
Background
Assistive Technology (AT) is generally defined as any kind of device or service that
assists persons with disabilities to perform day to day tasks and activities.1 The devices
range from “low-tech” mobility devices such as walkers and canes to “high-tech” speech
synthesizers and other communication devices.2 AT can be a powerful tool that allows
individuals with disabilities of any age to lead independent lives, and to work, participate
fully in community and school, and make informed choices in all aspects of their lives.
The Assistive Technology Act (AT Act) of 1998 (P.L.105-394) was signed into law on
November 13, 1998, and builds on the previous law – Technology Related Assistance for
1 “Assistive technology device’’ means any item, piece of equipment, or product system, whether
acquired commercially, modified, or customized, that is used to increase, maintain, or improve
functional capabilities of individuals with disabilities. [P.L.105-394, 112 Stat.3631]
2 Dawn Carlson, et al., Assistive Technology Survey Results: Continued Benefits and Needs
R e p o r t e d

b y
A m e r i c a n s
w i t h
D i s a b i l i t i e s ,
S e p t .
2 7 ,
2 0 0 1 ,
a t
[http://www.ncddr.org/du/researchexchange/v07n01/atpaper/], visited Dec. 21, 2002.
Congressional Research Service ˜ The Library of Congress

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Individuals with Disabilities (Tech Act) of 1988 (P.L. 100-401). It is the first major
federal statute to deal with enhancing information and public awareness of AT devices
and services. Programs under the AT Act operate in all 56 states and territories including
the District of Columbia. At present, approximately 24 million persons age 18 and over
with disabilities are using AT in the US.3 Authorization for the AT Act of 1998 expires
on September 30, 2004.
The AT Act is one way for the federal government to play a role in promoting access
to AT devices and services for individuals with disabilities. To further strengthen this
role, in 2001 the President announced the New Freedom Initiative (NFI).4 Under this
initiative, the Access to Telework Fund was created within the Department of Education,
to increase employment opportunities for persons with disabilities. The fund provides
matching funds to states to enable them to provide loans for persons with disabilities to
purchase computers and other equipment so that they can telework from home.
There are three programs funded
for FY2003 under the AT Act: 1) AT
The purposes of the AT Act of 1998 are
state grants; 2) grants for protection and
to:
advocacy; and 3) technical assistance.
The National Institute of Disability and

Support
states
in
sustaining
and
strengthening their capacity to address
Rehabilitation Research (NIDRR) in the
the
assistive
technology
needs
of
Department of Education administers
individuals with disabilities;
these programs.

Identify federal policies that facilitate
investment in assistive technology that
could benefit people with disabilities, and
Below is a brief description of the
eliminate
barriers
that
im pede
funded programs under the Act, and
investment
in
assistive
technology
issues for congressional consideration,
a c r o s s
f e d e r a l
a g e n c i es
and
where appropriate. Table 1 provides
departments; and

Support loan programs that help persons
funding levels for FY2001, FY2002,
with
disabilities
purchase
assistive
FY2003, and the FY2004 budget
technology devices or services.
request.
Programs and Funding
Title I – State Grant Program
Under Title I of the AT Act, three programs are authorized: 1) AT state grant
program; 2) state grant program for protection and advocacy services; and 3) the technical
assistance program. Authorization of appropriations for Title I expires on September 30,
2004. The Act authorized $36 million in FY1999, and such sums as may be necessary for
FY2000 through FY2004.
3 N.J, Ehrilich and D. Carlson, Assistive Technology Use and Need in the United States: A
Survey of Persons with Disabilities Using a Dual Frame Design
, Ann Arbor, MI, University of
Michigan Institute for Social Research, June 2002, discussion paper available at
[http://projects.isr.umich.edu/papers/].
4
F o r
f u r t h e r
i n f o r m a t i o n
o n
t h e
N e w
F r e e d o m
I n i t i a t i v e
s e e
[http://www.whitehouse.gov/news/freedominitiative/freedominitiative.pdf], visited Dec. 21,
2002.

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AT State Grant Program. The
The state grant program, requires
program
supports
states
in
their
states to carry out four mandatory
development
of
technology-related
activities:
activities and initiatives that enhance the
ability of individuals with disabilities to

Implement
a
public
awareness
access AT devices and services through
program
designed
to
provide
systems
changes,
advocacy,
and
information related to availability and
benefits
of
assistive
technology
consumer responsiveness.
devices and services;

Promote interagency coordination to
There are four mandatory activities
im prove
access
to
assistive
(shown at left). In addition, states and
technology devices and services for
individuals of all ages with disabilities;
territories that receive funding under the

Create
technical
assistance
and
AT
Act
may
undertake
optional
training
programs,
including
the
activities, such as developing other
development and implementation of
regulations, policies and practices that
funding schemes to pay for AT devices
promote
access
to
assistive
and services, establishing demonstration
technology services; and
programs, and providing short-term loans

Implement outreach programs to
to employers or public agencies who are
support statewide community-based
organizations that provide assistive
seeking to comply with the Americans
devices and services to individuals.
with Disabilities Act (ADA) of 19905 and
Section 504 of the Rehabilitation Act of
1973 as amended6, 7 among other things.
The state grant program is a discretionary grant program with competitive funding
awarded by NIDRR. Under the program, states receive funding for a period of 10 years.8
Those that have completed 10 years of funding may apply for a 3-year extension grant.
Under the law, extension grants must be funded at the same amount the state received in
its 10th year of funding.
State Grants for Protection and Advocacy Services. The program supports
protection and advocacy services to assist individuals with disabilities in acquiring,
utilizing or maintaining assistive technology devices. Formula grants are awarded by
NIDRR directly to the entity in each state that administers the protection and advocacy
program established under the Developmental Disabilities and Bill of Rights Act of
2000.9 Funds are distributed on the basis of state population with a minimum annual
grant of $50,000 (subject to funding availability). Grants are awarded for a period of 6
years.
5 P.L. 101-336.
6 P.L. 105-220.
7 For further information on the Rehabilitation Act of 1973 see CRS Report RL31298,
Rehabilitation Act: Summary of 1998 Reauthorization Legislation ,by Carol O’ Shaughnessy,
and CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V. Panangala.
8 The 10 year grants are made-up of a 3-year development grant, 2-year initial extension grant and
a 5-year extension grant.
9 P.L. 106-402. For further information about protection and advocacy services established under
this act see CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding,
by Sidath V. Panangala.

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Technical Assistance. The program supports technical assistance to state
agencies that administer Title I and Title III programs of the AT Act. The funds are
awarded on a competitive basis. The Act requires that the Secretary of Education
establish and maintain a National Public Internet Site for dissemination of information on
technical assistance and increased access to AT devices and services and other disability
related resources.
FY2003 Funding for Title I Programs. Funding for programs under Title I is
$26.8 million in FY2003.10 This amount will provide funding for the State Grant
program, Protection and Advocacy and Technical Assistance programs under Title I. Of
the total, approximately $20.3 million is allocated to the State Grant program. This
amount will allow funding for all states and territories at their FY2002 funding level.
Additionally, the Consolidated Appropriations Resolution 2003 (P.L. 108-7), provided
funding for 23 states that would have been ineligible to receive funding in FY2003 due
to the sunset provisions of prior law.11 The AT Act stipulates that states participating in
the State Grant program are ineligible to receive funding after 13 years of participating
in the program. Additionally, the law stipulates that states in their 9th and 10th year of
funding are to receive declining amounts over the 2-year period (that is, in the 9th year
states are to receive 75% of what they received in their 8th year of funding; in the 10th year
they are to receive 50% of the amount they received in the 8th year of funding).12
FY2004 Budget Request for Title I. The Administration has not requested any
funding for programs under Title I for FY2004. The Administration believes that State
Grant program has fulfilled its original mission by providing 10 years or more of federal
funding to states to assist them in developing assistive technology programs. The
President’s FY2004 budget also proposes a shift of $2.6 million funding from the
Protection and Advocacy (P&A) program under Title I of the AT Act to the P&A for
Individual Rights under Title V of the Rehabilitation Act of 1973, as amended. In
FY2003 the President’s budget request for the P&A for Individual Rights under Title V
of the Rehabilitation Act of 1973 as amended, was $15.2 million; the FY2004 budget
request for the program is $17.8 million.
Issues for Congressional Consideration. Considerable attention has been
drawn to the sunset clause under Title I of the AT Act. This clause, in the Tech Act of
1988, originally prohibited funding for the AT State Grant program beyond a period of
10 years. The AT Act of 1998 authorized an additional 3 years of funding for the state
10 On Feb. 20, 2003, the President signed into law the Consolidated Appropriations Resolution
2003 [P.L.108-7]. Section 601 of this law requires an amount equal to 0.65% rescinded
proportionately to each program, project, and activity within each account including some
accounts of the Department of Education for FY2003. This number is from the budget tables
published by the Department of Education on Mar. 5, 2004.
11
In FY2002, nine states were ineligible to receive funding: Arkansas, Colorado, Illinois,
Kentucky, Maine, Maryland, Minnesota, Nebraska, and Utah. In FY2003, 14 states were
ineligible to receive funding because they had already participated for 13 years: Alaska, Indiana,
Iowa, Massachusetts, Mississippi, Nevada, New Mexico, New York, North Carolina, Oregon,
Tennessee, Vermont, Virginia, and Wisconsin. In FY2004, 8 states will be ineligible for
funding: Delaware, Georgia, Hawaii, Louisiana, Missouri, Montana, New Hampshire, and South
Carolina.
12 P.L. 105-394, Title I, 112 Stat, 3641.

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grant program at the discretion of the Secretary of Education. However, despite sunset
provisions, for FY2003,Congress approved one year of additional funding at their FY2002
levels for 14 states in their 14th year of funding and 9 states in their 15th year of funding
in FY2003 [P.L. 108-7].
Sunset provisions and congressional action in 2003 to continue funding for 23
expiring states raises a number of questions for congressional consideration. These
include: What action might Congress take regarding continuation of the sunset provision?
Should the sunset provision be lifted for states whose grants will expire in FY2004 and
succeeding years as it was in the 2 preceding years? Given the heightened focus on
assistive technology as part of the President’s New Freedom Initiative should Congress
review the effect of the sunset provision to determine if it should be lifted permanently?
Title II – National Activities
Title II of the AT Act is designed to fund programs of national significance which
may include the support of technology training, the development and training of
individuals for technology careers, device and equipment redistribution information
systems and recycling centers, and technology transfer. The Act authorized $10 million
for the programs under Title II for FY1999 and such sums as may be necessary for
FY2000. However, no funds have been appropriated for most programs under Title II
since FY1999.
Funding for the President’s Commission on Employment of People with
Disabilities(CEPD) is authorized under Title II of the Act. However, during the FY2001
appropriation process, Congress authorized the creation of the Office of Disability
Employment Policy under the Department of Labor to replace the President’s CEPD.
Funding for the Office for FY2003 is $47.4 million, this will go towards funding salaries
and expenses. The Administration has requested $47.3 million for salaries and expenses
in FY2004.
Title III – Alternative Financing Mechanisms
Under Title III of the AT Act, discretionary grants are awarded on a competitive
basis to states to pay for the federal share of the cost of the establishment, administration,
or expansion of alternative financing mechanisms. Under the program, a variety of
alternative financing mechanisms may be developed to assist individuals with disabilities
and their families to purchase equipment or services. Alternative financing mechanisms
may include: 1) a low interest loan fund; 2) an interest buy-down program;13 3) a
revolving loan fund;14 4) a loan guarantee or insurance program;15 5) a loan operated by
a partnership among private entities for purchase or lease of assistive technology devices;
or 6) any other mechanism approved by the Secretary. The law requires the Secretary to
13 An organization using AT funds reduces the interest rate of a loan made by a lending institution
to a borrower.
14 This is a loan where the individual borrows money, and loan repayments are recycled back into
the loan fund for awarding future loans.
15 These loans are backed by a promise or guarantee that if the borrower defaults the loan will be
paid back.

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award states a minimum of $500,000 ($105,000 to territories) plus an additional amount
based on state population (according to a specified population density factor).16 The
federal share of the cost of any alternative financing program may not exceed 50%. The
authorization for Title III expired at the end of FY2000.17
FY2003 Funding for Title III Programs. The Administration requested $15.2
million for FY2003. In the Consolidated Appropriations Resolution 2003 (P.L.108-7),
Congress did not include language for continuation of funding for FY2003.
The
President’s budget has not requested any funding for FY2004, the Administration believes
that increased funding in FY2002 – $36.5 million, which remains available for 2 years,
will provide adequate funding for alternative financing programs.
Table 1. Assistive Technology Programs: Funding History for
FY2001,FY2002, and FY2003
(in thousands of dollars)
FY2001
FY2002
FY2003
FY2004
Programs
actual
actual
estimate a
request
Title I —State Grant program
Assistive Technology State
Grant Program
$22,069
$20,289
$20,289
not requested
Protection and Advocacy
2,680
2,680
4,572
not requested
Technical Assistance
1,363
1,363
1,963
not requested
Title II — National Activitiesb
not funded
not funded
not requested
not requested
Title III — Alternative Financing Mechanisms
not
15,000
36,552
authorized c
not requested
Total
$41,112
$60,884
$26,824
$0
NA= Not Available, at this time the Administration has not decided on how the appropriated funds will be allocated
between the two programs.
a Estimated obligations.
b Programs under Title II have not been funded. In FY2002, the Office of Disability Employment Policy, the successor
to the President’s Committee on Employment of People with Disabilities received $38.5 million for salaries and
expenses. This office is now in the Labor Department and is no longer authorized under Title II of the Assistive
Technology Act of 1998.
c Under provisions of the General Education Provision Act (GEPA) Section 422, funding for Title III was extended
by 1 fiscal year. This extension expired Sept. 30, 2001. Since then the program has been carried out under authority
provided by annual appropriations legislation. The Consolidated Appropriations Resolution, 2003 [P.L.108-7], did
not authorize funding for the program.
16 P.L. 105-394, Title III, 112 Stat, 3658.
17 Under provisions of the General Education Provision Act (GEPA) Section 422, funding for
Title III was extended by 1 fiscal year. This extension expired Sept. 30, 2001. Since then the
program has been carried out under authority provided by annual appropriations legislation. The
Consolidated Appropriations Resolution, 2003 [P.L.108-7], did not authorize funding for the
program.