S2438-119

In Committee

Transformation to Competitive Integrated Employment Act

119th Congress Introduced Jul 24, 2025

Summary

What This Bill Does

The bill creates states the purposes of the Act: to assist employers with 14(c) certificates in transforming to competitive integrated employment, ensure stakeholder involvement, transition workers to competitive employment, authorizes the Secretary of Labor to award competitive grants to States and eligible entities to help employers transform from using special certificates (subminimum wage) to competitive integrated employment models, and establishes a 5-year state grant program ($3-15M per state) requiring comprehensive transformation plans, advisory councils, data collection, and coordination with disability services agencies to transition all. It relies on grants, compliance mandates, reporting requirements, and appropriations. The main policy areas are Social Welfare, Labor, Workforce Development, and Government Accountability.

Who Benefits and How

Workers with disabilities earning subminimum wages could gain revenue opportunities, Workers with disabilities could gain revenue opportunities, and States that complete transformation grants could gain revenue opportunities.

Who Bears the Burden and How

Sheltered workshops could face higher costs, Federal budget could face higher costs, and Employers with existing 14(c) certificates would take on compliance duties.

Key Provisions

  • Creates states the purposes of the Act: to assist employers with 14(c) certificates in transforming to competitive integrated employment, ensure stakeholder involvement, transition workers to competitive employment...
  • Authorizes the Secretary of Labor to award competitive grants to States and eligible entities to help employers transform from using special certificates (subminimum wage) to competitive integrated employment models...
  • Establishes a 5-year state grant program ($3-15M per state) requiring comprehensive transformation plans, advisory councils, data collection, and coordination with disability services agencies to transition all...
  • Creates additional funding (25% bonus grants for FY2031-2035) for States that successfully complete the Section 102 transformation grants, establishing a Competitive Integrated Employment Fund in the Treasury...
  • Creates a 3-year grant program ($200K-$750K) for individual employers holding special certificates to transform their business models to competitive integrated employment, with detailed transformation plans, stakeholder...

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

The bill creates states the purposes of the Act: to assist employers with 14(c) certificates in transforming to competitive integrated employment, ensure stakeholder involvement, transition workers to competitive employment, authorizes the Secretary of Labor to award competitive grants to States and eligible entities to help employers transform from using special certificates (subminimum wage) to competitive integrated employment models, and establishes a 5-year state grant program ($3-15M per state) requiring comprehensive transformation plans, advisory councils, data collection, and coordination with disability services agencies to transition all.

Key Policy Areas

Social Welfare, Labor, Workforce Development, Government Accountability

Primary Purpose

The bill creates states the purposes of the Act: to assist employers with 14(c) certificates in transforming to competitive integrated employment, ensure stakeholder involvement, transition workers to competitive employment, authorizes the Secretary of Labor to award competitive grants to States and eligible entities to help employers transform from using special certificates (subminimum wage) to competitive integrated employment models, and establishes a 5-year state grant program ($3-15M per state) requiring comprehensive transformation plans, advisory councils, data collection, and coordination with disability services agencies to transition all.

Policy Domains

Social Welfare Labor Workforce Development Government Accountability

Title I - Transformation Grants

Identified Gains
  • Workers with disabilities earning subminimum wages
  • Workers with disabilities
  • States that complete transformation grants
  • States applying for transformation grants
  • State governments applying for transformation grants
Model: codex-gpt-5:bulk-repair | Version: bill_summary_v2 | Source: is
Workers with disabilities:
States applying for transformation grants:
States that complete transformation grants:
Workers with disabilities earning subminimum wages:
State governments applying for transformation grants:
Identified Costs
  • Sheltered workshops
  • Federal budget
  • Employers with existing 14(c) certificates
  • Employers seeking new 14(c) certificates
  • Employers holding 14(c) special certificates
Model: codex-gpt-5:bulk-repair | Version: bill_summary_v2 | Source: is
Federal budget:
Sheltered workshops:
Employers seeking new 14(c) certificates:
Employers with existing 14(c) certificates:
Employers holding 14(c) special certificates:

Legislative Progress

In Committee
Introduced Committee Passed
Jul 24, 2025

Mr. Van Hollen (for himself, Mr. Daines, Mrs. Gillibrand, and …

Jul 24, 2025

Read twice and referred to the Committee on Health, Education, …

Jul 24, 2025

Introduced in Senate

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Social Services
12 mentions across 9 clauses
+5 positive -7 negative

Disability service providers transforming to competitive employment, Employers holding 14(c) special certificates, Employers providing employment under special certificates

Positive-direction: Disability service providers transforming to competitive employment, Employers transitioning from special certificates, Nonprofit entities providing technical assistance, Sheltered workshops and disability service providers with 14(c) certificates, Technical assistance providers

Negative-direction: Employers holding 14(c) special certificates, Employers providing employment under special certificates, Employers seeking new 14(c) certificates, Employers using 14(c) special certificates, Employers with 14(c) certificates (subject to audit), Employers with existing 14(c) certificates, Sheltered workshops

Government
7 mentions across 5 clauses
+2 positive -5 negative

Civil Rights Division of Department of Justice, Congress, Department of Labor

Positive-direction: Congress, Department of Labor Wage and Hour Division

Negative-direction: Civil Rights Division of Department of Justice, Department of Labor, Federal budget, Office of Disability Employment Policy, Wage and Hour Division of Department of Labor

Labor
7 mentions across 7 clauses
+7 positive

People with disabilities employed at subminimum wages, People with disabilities employed in sheltered workshops, People with disabilities employed under special certificates

State & Local Government
5 mentions across 4 clauses
+3 positive -1 negative ?1 uncertain

State developmental disability agencies, State governments applying for transformation grants, State vocational rehabilitation agencies

Positive-direction: State governments applying for transformation grants, States applying for transformation grants, States that complete transformation grants

Negative-direction: State vocational rehabilitation agencies

Professional Services
1 mention across 1 clause
+1 positive

Nonprofit evaluation contractors

13/14
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Social Welfare Labor Workforce Development Government Accountability
Actor Mappings
"the_secretary"
→ Secretary of Labor
Domains
Labor Wage Standards
Actor Mappings
"the_secretary"
→ Secretary of Labor
Domains
Workforce Development Disability Services
Actor Mappings
"the_secretary"
→ Secretary of Labor (through Office of Disability Employment Policy)
Domains
Government Accountability
Actor Mappings
"the_secretary"
→ Secretary of Labor
Domains
Definitions Appropriations

Key Definitions

Terms defined in this bill

5 terms
"ABLE account" §501(a)

Has the meaning given such term in section 529A(e)(6) of the Internal Revenue Code of 1986

"competitive integrated employment" §501(b)

Has the meaning given the term in section 7(5) of the Rehabilitation Act of 1973 (29 U.S.C. 705(5))

"disability" §501(c)

Includes any intellectual, developmental, mental health, or other disability

"integrated community participation and wraparound services" §501(d)

Services for people with disabilities designed to assist in developing skills for home and community-based settings, provided in person-centered manner using evidence-based practices

"special certificate" §501(e)

A certificate issued under section 14(c) of the Fair Labor Standards Act of 1938 permitting payment below minimum wage

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology