Education Dept. Extends Funding for 43 American Indian Vocational Rehabilitation Projects Through Sept. 2027

What the action does

The Secretary of Education has issued final waivers of requirements in the Education Department General Administrative Regulations that generally prohibit project periods from exceeding five years and bar project-period extensions that involve the obligation of additional federal funds. The waivers and extensions cover 43 American Indian Vocational Rehabilitation Services (AIVRS) projects under Assistance Listing Number (ALN) 84.250N, and one American Indian Vocational Rehabilitation Training and Technical Assistance Center (AIVRTTAC) under ALN 84.250Z. Each of the affected projects was in its fifth year at the time the action was proposed. The extended project periods may run no later than September 30, 2027. The final waivers and extensions are effective July 20, 2026.

Background and rationale

The Department published a notice of proposed waivers and extensions on April 2, 2026, in the Federal Register (91 FR 16599). The proposal invited public comment, and 25 parties submitted 27 comments in response, with two comments counted as duplicates. The Department reports no differences between the proposed and final notices. Sixteen commenters submitted comments in support of the extensions, stating that the extension is necessary for the continuity of vocational rehabilitation (VR) services to existing VR program participants. The Department stated it agrees that funding the extension will continue to provide VR services to existing participants.

How continuation awards work

Following finalization of the waivers and extensions, the Department notes that all impacted grantees will be able to request continuation funding for an additional year. In submitting such a request, each grantee must certify that it has the capacity to continue activities. The Department states that in making a continuation award under 34 CFR 75.253, the Secretary considers, among other things: whether a grantee has made substantial progress in achieving the goals and objectives of the project; whether the grantee has expended funds in a manner consistent with its approved application and budget; and whether the continuation of the project is in the best interest of the Federal Government. The Secretary also considers whether the grantee is operating in compliance with the assurances in its approved application, including those applicable to federal civil rights laws that prohibit discrimination in programs or activities receiving federal financial assistance from the Department, as referenced in 34 CFR 100.4, 104.5, 106.4, 108.8, and 110.23. The Department further notes that it conducts routine risk evaluations of grantees over the course of the grant period, as well as ongoing monitoring of and communication with grantees regarding risk, compliance, and performance.

AIVRTTAC concerns

One commenter expressed support for the proposed waivers and extensions covering the 43 AIVRS projects but raised concerns specific to the AIVRTTAC grant project, citing performance and compliance issues with the current grantee and advocating that the Department address those concerns as a condition of any extension. The Department acknowledged the feedback but noted that the continuation award process described above — including the Secretary's review of substantial progress, expenditure consistency, and compliance with civil rights assurances — provides the mechanism through which such concerns may be considered. The Department stated that in making any continuation award determination, the Secretary may consider all relevant information.

What to watch

The final waivers and extensions are effective July 20, 2026. Affected grantees under ALN 84.250N and ALN 84.250Z may request continuation funding for an additional period running no later than September 30, 2027.