This legislation, titled the Transformation to Competitive Integrated Employment Act, aims to assist employers currently operating under special certificates issued by the Fair Labor Standards Act of 1938 (section 14(c)) in transitioning their business models. The core purpose is to enable these employers to support people with disabilities in finding and retaining work in competitive integrated employment settings, ensuring fair wages and integrated community participation.

The bill authorizes two primary grant programs: one for States and another for individual certificate holders. State grants, ranging from $3 million to $15 million over five years, require comprehensive applications detailing current employment status, transformation plans, stakeholder engagement, and evaluation strategies. States must establish an advisory council, including people with disabilities, to monitor and guide the transformation process.

Certificate holder grants, between $200,000 and $750,000 over three years, are available to eligible entities in states not receiving a State grant. These grants require detailed plans for discontinuing subminimum wage employment, transitioning employees to competitive integrated employment, and outlining new business and funding structures. Both grant types emphasize providing integrated services that comply with home and community-based service requirements.

A key provision of the bill is the phased elimination of special certificates. It mandates a gradual increase in the minimum wage for employees under these certificates, reaching the federal minimum wage within five years. Furthermore, the bill prohibits the issuance of any new special certificates and stipulates that all existing certificates will expire five years after the act's enactment.

To support these transformations, the bill authorizes a grant for a nonprofit entity to provide technical assistance, identify and disseminate best practices, and build replicable strategies for employers. This entity will also leverage existing resources and raise awareness of the Employment First initiative and ABLE accounts. The legislation also includes provisions for a multi-year evaluation of its impact on wages and employment for people with disabilities, along with annual wage and hour reports summarizing employer practices and transitions to competitive integrated employment.

Finally, the bill authorizes $200 million annually for fiscal years 2026 through 2030 to fund these initiatives. It also amends the Rehabilitation Act of 1973 to provide additional funding for supported employment services to states that successfully complete the competitive integrated employment grant program, reinforcing the long-term commitment to fair wages and inclusive employment for people with disabilities.