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VA RIN: 2900-AP72 Publication ID: Fall 2016 
Title: Veterans Employment Pay for Success Grant Program  

The Department of Veterans Affairs (VA) established a grant program (Veterans Employment Pay for Success (VEPFS)) under the authority of 38 U.S.C. 3119 to award grants to eligible entities to fund projects that are successful in accomplishing employment rehabilitation for Veterans with service-connected disabilities. VA will award grants on the basis of an eligible entity’s proposed use of a Pay for Success (PFS) strategy to achieve goals. This interim final rule established regulations for awarding a VEPFS grant, including the general process for awarding the grant, criteria and parameters for evaluating grant applications, priorities related to the award of a grant, and general requirements and guidance for administering a VEPFS grant program.

Agency: Department of Veterans Affairs(VA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 38 CFR 21.440 to 21.449   
Legal Authority: 38 U.S.C. 501    38 U.S.C. 3119    38 U.S.C. 501(a), ch 31    38 U.S.C. 501(a), ch 18   
Legal Deadline:  None

Statement of Need:

There is a need to find new, innovative methods for rehabilitating Veterans with compensable service-connected disabilities who qualify for benefits under VA’s Vocational Rehabilitation & Employment (VR&E) program so that they become employable and are ultimately able to obtain and maintain suitable employment.  Through Pay For Success (PFS) grant programs, which may serve various Veteran populations including those Veterans with noncompensable service-connected disabilities who do not qualify for VR&E benefits, we hope to obtain information to establish new, innovative methods for rehabilitating Veterans who qualify for VR&E benefits.  PFS offers an economical mechanism, which can save taxpayers’ money, for exploring the resources and techniques that are available for rehabilitating Veterans with service-connected disabilities with regard to employment.


Summary of the Legal Basis:

38 U.S.C. 501, 3119.


Anticipated Costs and Benefits:


Action Date FR Cite
Interim Final Rule  08/10/2016  81 FR 52770   
Interim Final Rule Effective  08/10/2016 
Interim Final Rule Comment Period End  10/11/2016 
Final Action  03/00/2017 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Patrick Littlefield
Department of Veterans Affairs
1800 G Street NW.,
Washington, DC 20006
Phone:202 256-7176