Some big changes hit vocational rehabilitation (VR) in 2025, and they’re already reshaping how agencies will operate and deliver services in 2026.
The Rehabilitation Services Administration (RSA) is reviewing a fifth WIOA assessment criterion, expanding its workload just as it faces reduction-in-force (RIF) notices. That means there will be even fewer people to meet higher demands.
It’s the same pressure many VR agencies felt while pulling together their WIOA reporting for October 1. Most are chronically understaffed, being asked to capture more detailed reporting than ever, all while working with shrinking budgets.
At SaraWorks, we’re closely tracking industry updates, and sharing solutions wherever possible to help agencies find the best path forward.
Let’s start with what’s happening at the RSA, the funding outlook ahead, and how agencies are moving forward.
What's Happening at the RSA?
In March 2025, the Department of Education (DOE) received a gut punch when 50% of its workforce was let go. The RSA, a subagency of the Department of Education (DOE), was directly impacted, raising concerns about how and where VR will be managed in the near future.
What Impact Might This Have on Your Agency?
You might see slower turnarounds for grant applications and policy waivers.
You might also notice delays in state or program plan approvals, general support, and reporting reviews.
And speaking of reporting reviews, let’s take a look at what’s new with your WIOA reporting and how the RSA is adjusting program scoring.
Vocational Rehabilitation & WIOA Measurable Skills Gain
The WIOA Measurable Skills Gain (MSG) performance indicator tracks the percentage of participants making documented progress, whether academic, technical, occupational, or toward a credential or employment.
Why Is It So Hard to Track?
Education and training programs often have high attrition rates, and partners don’t always track progress the same way. That makes Measurable Skill Gains (MSG) under WIOA tricky to monitor, report, and improve.
For vocational rehabilitation, MSGs are often tied to a person’s disability or their Individualized Plan for Employment (IPE). Counselors are often left to collect this data manually and can struggle to keep up.
Automated collection and validation would make the process much easier. But for now, most agencies don’t have the right tools to handle this process.
VR Agencies’ Funding Outlook
Because the FY26 budget is still pending, states haven’t received their funding, and they don’t yet know what numbers they’ll be working with. The proposed budget suggests that VR programs may have to stretch their General 110 funds more than ever, without the supplemental funds they usually rely on.
States could also be facing the reality of managing staffing cuts or furloughs, depending on their budget limitations. Others are implementing, or considering, an Order of Selection, which means limiting services to only those with the most significant needs.
Your agency may be whittled down to core operations, reducing your ability to do things like job coaching, outreach, recruitment, employer engagement and pilot programs.
But remember, you have found ways to adapt before, and you don’t have to navigate this change alone.
VR Is Changing. Leaders Are Clearing the Path for Counselors
Despite extraordinary challenges, VR leaders found ways to innovate and serve participants during the height of the COVID-19 Pandemic. Technology played a key role, offering new flexibility in how and where counselors delivered services. Agencywide dedication and commitment to the VR community was also a huge part of what kept the work moving forward.
Now, with more uncertainty ahead, agencies are doing what they’ve always done: planning as best they can and staying focused on impact. And there are solutions that can help.
Many agencies are:
- Exploring AI to help manage caseloads that outpace their current capacity.
- A critically important note: AI does not replace VR counselors. It’s a tool designed to take on the busywork that consumes up to 60-80% of a counselor’s workday, freeing up time for actual counseling.
- Simplifying internal policies and procedures to cut unnecessary red tape—so counselors can focus on their highest-impact work, free from distraction.
- Adopt newer, more sophisticated VR case management systems that shorten workflows, boost engagement and connection, and simplify reporting.
The key to successfully moving forward—and preparing for whatever comes next—is to clear the path for the humans who drive VR success. Every secure, compliant shortcut you can give them helps amplify their impact. Every hour saved contributes to individual performance outcomes and overall program goals.
Wondering if it’s time to explore tech tools that can ease the load for your team? We’d be happy to walk you through what’s possible.
