Why It Matters

More than one-third of Americans with disabilities rely on Medicaid for healthcare and employment support services now facing severe federal cuts. Additionally, 7.5 million students with disabilities depend on federal offices like OSERS for vocational rehabilitation programs currently experiencing significant staffing reductions.

The House Education and the Workforce Committee hearingon February 13 will address a critical national tension: how to modernize disability employment while protecting existing opportunities and safeguarding essential support systems.

Democrats are mounting fierce defense of federal support infrastructure, concerned that Medicaid reductions and OSERS layoffs threaten the foundation enabling people with disabilities to work. Meanwhile, a legislative push aims to transition away from sheltered workshops toward "competitive integrated employment"—mainstream jobs at equitable wages. Representative Jahana Hayes champions legislation to phase out subminimum wages.

However, some providers and Republicans express concerns. Rep. Glenn Grothman applauded a Department of Labor decision reversing a rule, suggesting worry that aggressive federal action could disrupt existing employment programs.

Broader Context

Federal infrastructure supporting disability employment faces mounting pressure. Democrats have characterized Medicaid as a critical "lifeline," warning that cuts threaten workforce participation. The Trump Administration laid off federal employees at OSERS, with 117 Democratic lawmakers condemning the cuts to vocational rehabilitation programs.

Congress is divided on the path forward. Rep. Hayes champions legislation to phase out subminimum wages permitted under Section 14(c) of the Fair Labor Standards Act, while advocacy groups like Melwood Inc. lobby for competitive integrated employment.

However, some providers worry rapid elimination of existing programs could leave vulnerable populations without employment options. The disability employment ecosystem also depends on direct support professionals facing persistent workforce shortages due to low wages and high turnover.

The Agenda

Witnesses and Backgrounds

The report identifies key stakeholder organizations likely to testify:

  • Melwood Inc.: Nonprofit providing jobs for people with disabilities, lobbying on competitive integrated employment
  • National Industries for the Blind (NIB): Central agency under the AbilityOne Program, with $365,000 in 2025 lobbying efforts
  • Allsup LLC: Assists with SSDI applications and return-to-work services

Between The Lines

The committee is chaired by Rep. Tim Walberg (R-MI-5), with Rep. Bobby Scott (D-VA-3) as ranking member.

Rep. Glenn Grothman (R-WI) has emerged as a defender of current employment models, publicly applauding a Department of Labor decision reversing a disability employment rule.

Democrats have coalesced around defending federal support and advancing fair wages. Rep. Mark DeSaulnier (D-CA) led 117 Democrats in condemning OSERS layoffs. Rep. Lucy McBath (D-GA) emphasized that over a third of Americans with disabilities rely on Medicaid. Rep. Suzanne Bonamici (D-OR) framed the issue as equity work, stating "true equity is accomplished when no one with a disability is overlooked in education, employment, or society."

The Bottom Line

The hearing will examine competing visions for disability employment policy amid federal budget pressures. Key tensions include whether to prioritize competitive integrated employment with equal wages or preserve existing programs. Democrats have raised alarms about budget cuts to foundational support systems, while some Republicans have defended existing employment providers. Active lobbying from organizations reflects deep stakeholder investment in outcomes spanning employment models, wages, and financial independence programs.

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