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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.

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.

Alternatives:

Anticipated Costs and Benefits:

Risks: