Many people with disabilities want to work but need help getting a job; Division of Vocational Rehabilitation (DVR) is that help. The state budget signed in July 2025 did not invest enough money to cover the costs of the (DVR).

7000 People Waiting

Beginning in December 2025, DVR ran out of money and people with disabilities seeking work began being told they would wait in line for possibly a year to get help. Currently, DWD says there are more than 7600 people waiting, and they estimate 1000 more people will be added to the wait list each month.

13.10 Request to Wisconsin’s Joint Finance Committee for $11M 

The Department of Workforce Development (DWD) sent a request (called a 13.10) to Wisconsin’s Joint Finance Committee for $11M to meet demand through June 30, 2027. The additional $11M in state funding would allow Wisconsin to draw in nearly $75 M more in federal funding to support Wisconsin residents with disabilities get jobs.

Instead, the committee voted to provide $7M total, in $600,000 more for the first year of the state biennial budget. This $600,000 in state funding will let Wisconsin draw federal match for 2026 and let DWD have the required state matching funds to compete for an uncertain amount of federal grant funding in July 2026. The current waitlist may be reduced by an unknown number, but it is unlikely the current waitlist will be fully eliminated before June 30, 2027.

For the second year of the budget, DVR remains $4M short of what it needs in state funds to be able to fully draw down an additional 80% in federal formula funds.

Reallotment funds are not a substitute for formula funding.

Each July, states are allowed to compete for federal reallotment funding if they have the required amount of state funds (match). Reallotment funds are awarded as a lump sum and are independent of the formula funds distributed to states. The amount of reallotment funding available and amount granted to states is uncertain.

By not setting aside enough state dollars to fully draw down the federal formula match in the second year of the budget, Wisconsin’s DVR program will start the next state budget process with a$4M shortfall where the funding is not sufficient to meet the needs of all the people who need help funding work. That shortfall means that Wisconsin misses out on significant federal funding which increases the ability for DVR to help people who need services in real time.

The work is not done

DVR says it will start helping people on the waitlist immediately and continue to do so as staffing and resources allow.  JFC decision to fund a portion of the requested funds will not make that an easy task.  Until DVR receives the amount of state funding needed, people with disabilities may continue to have to wait to work.

Yesterday, the Governor and Republican State Assembly announced a proposal for a one-time tax rebate and permanent reductions in the amount of money the state collects to support state programs and services in exchange for some increases in education spending. Survival Coalition is concerned that acting on this proposal now puts many critical state programs and services at risk of budget cuts in the future.

During the regular budget process, the legislature chose not to fund many important programs at the level requested and made promises to special education that it didn’t keep. This year, the state budget promised schools would get 42 cents back for every dollar spent on special education but did not set aside enough money to cover actual costs so the reimbursement dropped to 35 cents on the dollar. The legislature could have acted during the regular session to provide the amount of money promised but chose not to do so.

This proposal again promises the same reimbursement rate as passed in July’s budget and sets an aspirational 50% special education reimbursement rate without changing the structural reason why the amount promised to schools for special education never materializes.

“A phantom 50% reimbursement rate is not real unless there is a guarantee that sufficient funding will be provided to cover actual costs,” said Tami Jackson, Survival Coalition co-chair. “This proposal does not change special education from a “sum certain” to a “sum sufficient” appropriation. We have seen this cycle repeat where the amount of money set aside continues to result in special education funding shortfalls. We can’t continue to cheer for empty promises.”

“The legislature did not choose to fully fund the Division of Vocational Rehabilitation when the budget passed in July,” said Jason Glozier, Survival Coalition Co-Chair. “In December, the Department asked for additional money because so many people want to work. The legislature chose not to act. Now people with disabilities who want to work are being told no, you must wait or utilize more costly Medicaid services, and they are being told they will wait at least a year for help. The Governor and Legislature are willing to spend the state’s savings and reduce the pot of money used to support state programs, but they are not willing to make sure the actual needs of people with disabilities are being met now?”

“The disability community has been relentless in its advocacy for better pay and benefits for care workers, better support for unpaid caregivers, and the real-world consequences for people with disabilities and families when there is no one to hire and no one who can fill in the gaps,” said Patti Becker, Survival Coalition Co-Chair. “This proposal does not address the ongoing caregiver crisis or many other supports that keep people living independently in their homes, able to stay in the workforce, and able to stay out of expensive Medicaid funded institutions.”

Since HR 1 passed last July, states have been struggling with SNAP and Medicaid cuts and changes to the Affordable Care Act Marketplaces. HR 1 is already impacting state budgets, threatening disability and home and community based services. Many states have already proposed disability-specific cuts to offset lost federal funding. Disability advocates are anticipating more federal funding cuts in the coming months.

“The states that reduced revenue by making tax cuts in good times are in a worse position to manage federal cuts now,” said Jackson. “State budget surpluses and rainy day funds are not enough to make up for federal cuts, increased costs, or revenue losses. A one-time $300 check now could be paid for in cuts to critical state functions next budget. That’s a high price.” Press release

“People with disabilities, older adults, and family caregivers are struggling to get care needs met even if they are in Family Care, IRIS, or CLTS,” said Jason Glozier, Survival Coalition Co-Chair. “Survival Coalition’s survey clearly shows our current Home and Community Based Service system supplements the unpaid work families are already doing everyday.”

Unpaid family caregivers are relied on to provide daily care needs and fill in gaps when paid workers don’t show up or there are no workers available to hire.

The survey found in a typical week that more than a third of all unpaid caregivers are providing care that is the equivalent to a full time, or more than full time job. Most survey respondents said they are caring for people who are getting some care needs met by Family Care, IRIS, or CLTS.

Not everyone who needs care has family to rely on for care ‘back up.’ The survey also found 31% of respondents go without care when paid workers can’t make shifts.

“People should not be forced to move into Medicaid funded institutional settings because Family Care, IRIS, and CLTS do not adequately support workers to meet people’s needs,” said Glozier.

Wisconsin’s economy suffers when there is not enough care capacity.

“Home Health Care is one of the fastest growing parts of the healthcare ecosystem.  People and families continue to wait for home services due to policy decisions that continue to avoid needed investments toward equitable starting wages and healthcare occupations.” said Patti Becker, Survival Coalition Co-Chair. “Local businesses in every Wisconsin community need workers, and these valuable workers’ care for the most vulnerable citizens, and their families. They pay taxes and spend money in local communities that contribute to our local economies.”

When there are not enough care workers to support families and people with disabilities, more potential workers either leave or are kept out of the workforce.

People with disabilities want to work; when they do not have the support they need to get ready for the work day, it can mean the difference between participating in the workforce or not.

“Unpaid caregivers are working less than they want or leaving the workforce to provide the care that keeps older adults and people with disabilities out of nursing homes and other high-cost institutional settings,” said Tami Jackson, Survival Coalition Co-Chair. “Unpaid caregivers are aging. They cannot provide the same amount of care forever. Wisconsin needs to invest in care infrastructure to keep people in the workforce and out of expensive Medicaid funded institutions.”