---
kind: "section"
citation: "29 U.S.C. § 796f–2"
title: "29"
title_heading: "Labor"
number: "796f–2"
heading: "Grants to centers for independent living in States in which State funding equals or exceeds Federal funding"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/796f-2"
units:
  - "Chapter 16 — Vocational Rehabilitation and Other Rehabilitation Services"
  - "Subchapter VII — Independent Living Services and Centers for Independent Living"
  - "Part A — Individuals With Significant Disabilities"
  - "Subpart 3 — centers for independent living"
---

# §796f–2. Grants to centers for independent living in States in which State funding equals or exceeds Federal funding

- (a) **Establishment—**
  - (1) **In general—**
    - (A) **Initial year—**
      - (i) **Determination—** The director of a [designated State unit](/usc/29/705.md?p=8-B), as provided in [paragraph (2)](#a-2), or the [Administrator](/usc/29/796a.md?p=1), as provided in [paragraph (3)](#a-3), shall award grants under this section for an initial fiscal year if the [Administrator](/usc/29/796a.md?p=1) determines that the amount of [State](/usc/29/705.md?p=34) funds that were earmarked by a [State](/usc/29/705.md?p=34) for a preceding fiscal year to support the general operation of centers for independent living meeting the requirements of this subpart equaled or exceeded the amount of funds allotted to the [State](/usc/29/705.md?p=34) under subsection (c) or (d) of [section 796f of this title](/usc/29/796f.md) for such year.
      - (ii) **Grants—** The director of a [designated State unit](/usc/29/705.md?p=8-B) or the [Administrator](/usc/29/796a.md?p=1), as appropriate, shall award such grants, from the amount of funds so allotted for the initial fiscal year, to eligible agencies in the [State](/usc/29/705.md?p=34) for the planning, conduct, administration, and evaluation of centers for independent living that comply with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md).
      - (iii) **Regulation—** The [Administrator](/usc/29/796a.md?p=1) shall by regulation specify the preceding fiscal year with respect to which the [Administrator](/usc/29/796a.md?p=1) will make the determinations described in [clause (i)](#a-1-A-i) and [subparagraph (B)](#a-1-B), making such adjustments as may be necessary to accommodate [State](/usc/29/705.md?p=34) funding cycles such as 2-year funding cycles or [State](/usc/29/705.md?p=34) fiscal years that do not coincide with the Federal fiscal year.
    - (B) **Subsequent years—** For each year subsequent to the initial fiscal year described in [subparagraph (A)](#a-1-A), the director of the [designated State unit](/usc/29/705.md?p=8-B) shall continue to have the authority to award such grants under this section if the [Administrator](/usc/29/796a.md?p=1) determines that the [State](/usc/29/705.md?p=34) continues to earmark the amount of [State](/usc/29/705.md?p=34) funds described in [subparagraph (A)(i)](#a-1-A-i). If the [State](/usc/29/705.md?p=34) does not continue to earmark such an amount for a fiscal year, the [State](/usc/29/705.md?p=34) shall be ineligible to make grants under this section after a final year following such fiscal year, as defined in accordance with regulations established by the [Administrator](/usc/29/796a.md?p=1), and for each subsequent fiscal year.
  - (2) **Grants by designated State units—** In order for the [designated State unit](/usc/29/705.md?p=8-B) to be eligible to award the grants described in [paragraph (1)](#a-1) and carry out this section for a fiscal year with respect to a [State](/usc/29/705.md?p=34), the [designated State agency](/usc/29/705.md?p=8-A) shall submit an application to the [Administrator](/usc/29/796a.md?p=1) at such time, and in such manner as the [Administrator](/usc/29/796a.md?p=1) may require, including information about the amount of [State](/usc/29/705.md?p=34) funds described in [paragraph (1)](#a-1) for the preceding fiscal year. If the [Administrator](/usc/29/796a.md?p=1) makes a determination described in subparagraph [(A)(i)](#a-1-A-i) or [(B)](#a-1-B), as appropriate, of [paragraph (1)](#a-1), the [Administrator](/usc/29/796a.md?p=1) shall approve the application and designate the director of the [designated State unit](/usc/29/705.md?p=8-B) to award the grant and carry out this section.
  - (3) **Grants by Administrator—** If the [designated State agency](/usc/29/705.md?p=8-A) of a [State](/usc/29/705.md?p=34) described in [paragraph (1)](#a-1) does not submit and obtain approval of an application under [paragraph (2)](#a-2), the [Administrator](/usc/29/796a.md?p=1) shall award the grant described in [paragraph (1)](#a-1) to eligible agencies in the [State](/usc/29/705.md?p=34) in accordance with [section 796f–1 of this title](/usc/29/796f–1.md).
- (b) **Eligible agencies—** In any [State](/usc/29/705.md?p=34) in which the [Administrator](/usc/29/796a.md?p=1) has approved the [State](/usc/29/705.md?p=34) plan required by [section 796c of this title](/usc/29/796c.md), the director of the [designated State unit](/usc/29/705.md?p=8-B) may award a grant under this section to any eligible agency that—
  - (1) has the power and authority to carry out the purpose of this subpart and perform the functions set forth in [section 796f–4 of this title](/usc/29/796f–4.md) within a community and to receive and administer funds under this subpart, funds and contributions from private or public sources that may be used in support of a [center for independent living](/usc/29/796a.md?p=2), and funds from other public and private programs;
  - (2) is determined by the director to be able to plan, conduct, administer, and evaluate a [center for independent living](/usc/29/796a.md?p=2), consistent with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md); and
  - (3) submits an application to the director at such time, in such manner, and containing such information as the head of the [designated State unit](/usc/29/705.md?p=8-B) may require.
- (c) **Existing eligible agencies—** In the administration of the provisions of this section, the director of the [designated State unit](/usc/29/705.md?p=8-B) shall award grants for a fiscal year under this section to any eligible agency that has been awarded a grant under this subpart for the preceding fiscal year, unless the director makes a finding that the agency involved fails to comply with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md).
- (d) **New centers for independent living—**
  - (1) **In general—** If there is no [center for independent living](/usc/29/796a.md?p=2) serving a region of the [State](/usc/29/705.md?p=34) or the region is unserved or underserved, and the increase in the allotment of the [State](/usc/29/705.md?p=34) is sufficient to support an additional [center for independent living](/usc/29/796a.md?p=2) in the [State](/usc/29/705.md?p=34), the director of the [designated State unit](/usc/29/705.md?p=8-B) may award a grant under this section from among eligible agencies, consistent with the provisions of the [State](/usc/29/705.md?p=34) plan under [section 796c of this title](/usc/29/796c.md) setting forth the design of the [State](/usc/29/705.md?p=34) for establishing a statewide network of centers for independent living.
  - (2) **Selection—** In selecting from among eligible agencies in awarding a grant under this subpart for a new [center for independent living](/usc/29/796a.md?p=2)—
    - (A) the director of the [designated State unit](/usc/29/705.md?p=8-B) and the chairperson of, or other [individual](/usc/29/705.md?p=22) designated by, the Statewide Independent Living Council acting on behalf of and at the direction of the Council, shall jointly appoint a peer review committee that shall rank applications in accordance with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md) and criteria jointly established by such director and such chairperson or [individual](/usc/29/705.md?p=22);
    - (B) the peer review committee shall consider the ability of each such [applicant](/usc/29/705.md?p=22) to operate a [center for independent living](/usc/29/796a.md?p=2), and shall recommend an [applicant](/usc/29/705.md?p=22) to receive a grant under this section, based on—
      - (i) evidence of the need for a [center for independent living](/usc/29/796a.md?p=2), consistent with the [State](/usc/29/705.md?p=34) plan;
      - (ii) any past performance of such [applicant](/usc/29/705.md?p=22) in providing services comparable to [independent living services](/usc/29/705.md?p=18);
      - (iii) the plan for complying with, or demonstrated success in complying with, the standards and the assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md);
      - (iv) the quality of key personnel of the [applicant](/usc/29/705.md?p=22) and the involvement of [individuals with significant disabilities](/usc/29/705.md?p=21-D) by the [applicant](/usc/29/705.md?p=22);
      - (v) the budgets and cost-effectiveness of the [applicant](/usc/29/705.md?p=22);
      - (vi) the evaluation plan of the [applicant](/usc/29/705.md?p=22); and
      - (vii) the ability of such [applicant](/usc/29/705.md?p=22) to carry out the plans; and
    - (C) the director of the [designated State unit](/usc/29/705.md?p=8-B) shall award the grant on the basis of the recommendations of the peer review committee if the actions of the committee are consistent with Federal and [State](/usc/29/705.md?p=34) law.
  - (3) **Current centers—** Notwithstanding paragraphs [(1)](#d-1) and [(2)](#d-2), a [center for independent living](/usc/29/796a.md?p=2) that receives assistance under subpart 2 for a fiscal year shall be eligible for a grant for the subsequent fiscal year under this subsection.
- (e) **Order of priorities—** Unless the director of the [designated State unit](/usc/29/705.md?p=8-B) and the chairperson of the Council or other [individual](/usc/29/705.md?p=22) designated by the Council acting on behalf of and at the direction of the Council jointly agree on another order of priority, the director shall be guided by the following order of priorities in allocating funds among centers for independent living within a [State](/usc/29/705.md?p=34), to the extent funds are available:
  - (1) The director of the [designated State unit](/usc/29/705.md?p=8-B) shall support existing centers for independent living, as described in [subsection (c)](#c), that comply with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md), at the level of funding for the previous year.
  - (2) The director of the [designated State unit](/usc/29/705.md?p=8-B) shall provide for a cost-of-living increase for such existing centers for independent living.
  - (3) The director of the [designated State unit](/usc/29/705.md?p=8-B) shall fund new centers for independent living, as described in [subsection (d)](#d), that comply with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md).
- (f) **Nonresidential agencies—** A center that provides or manages residential housing after October 1, 1994, shall not be considered to be an eligible agency under this section.
- (g) **Review—**
  - (1) **In general—** The director of the [designated State unit](/usc/29/705.md?p=8-B) shall periodically review each center receiving funds under this section to determine whether such center is in compliance with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md). If the director of the [designated State unit](/usc/29/705.md?p=8-B) determines that any center receiving funds under this section is not in compliance with the standards and assurances set forth in [section 796f–4 of this title](/usc/29/796f–4.md), the director of the [designated State unit](/usc/29/705.md?p=8-B) shall immediately notify such center that it is out of compliance.
  - (2) **Enforcement—** The director of the [designated State unit](/usc/29/705.md?p=8-B) shall terminate all funds under this section to such center 90 days after—
    - (A) the date of such notification; or
    - (B) in the case of a center that requests an appeal under [subsection (i)](#i), the date of any final decision under [subsection (i)](#i),

    unless the center submits a plan to achieve compliance within 90 days and such plan is approved by the director, or if appealed, by the [Administrator](/usc/29/796a.md?p=1).

- (h) **Onsite compliance review—** The director of the [designated State unit](/usc/29/705.md?p=8-B) shall annually conduct onsite compliance reviews of at least 15 percent of the centers for independent living that receive funding under this section in the [State](/usc/29/705.md?p=34). Each team that conducts onsite compliance review of centers for independent living shall include at least one person who is not an employee of the [designated State agency](/usc/29/705.md?p=8-A), who has experience in the operation of centers for independent living, and who is jointly selected by the director of the [designated State unit](/usc/29/705.md?p=8-B) and the chairperson of or other [individual](/usc/29/705.md?p=22) designated by the Council acting on behalf of and at the direction of the Council. A copy of this review shall be provided to the [Administrator](/usc/29/796a.md?p=1).
- (i) **Adverse actions—** If the director of the [designated State unit](/usc/29/705.md?p=8-B) proposes to take a significant adverse action against a [center for independent living](/usc/29/796a.md?p=2), the center may seek mediation and conciliation to be provided by an [individual](/usc/29/705.md?p=22) or [individuals](/usc/29/705.md?p=22) who are free of conflicts of interest identified by the chairperson of or other [individual](/usc/29/705.md?p=22) designated by the Council. If the issue is not resolved through the mediation and conciliation, the center may appeal the proposed adverse action to the [Administrator](/usc/29/796a.md?p=1) for a final decision.

## Source credit

(Pub. L. 93–112, title VII, § 723, as added Pub. L. 105–220, title IV, § 410, Aug. 7, 1998, 112 Stat. 1231; amended Pub. L. 113–128, title IV, § 482(b), July 22, 2014, 128 Stat. 1693.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 796f–2, Pub. L. 93–112, title VII, § 723, as added Pub. L. 102–569, title VII, § 701(2), Oct. 29, 1992, 106 Stat. 4458; amended Pub. L. 103–73, title I, § 114(j), Aug. 11, 1993, 107 Stat. 731, related to grants to centers for independent living in States in which State funding equals or exceeds Federal funding, prior to the general amendment of this subchapter by Pub. L. 105–220.

### Amendments

2014—Subsec. (a). Pub. L. 113–128, § 482(b)(1), substituted “Administrator” for “Commissioner” wherever appearing in text.

Subsec. (a)(1)(A)(ii). Pub. L. 113–128, § 482(b)(2)(A), inserted “of a designated State unit” after “director”.

Subsec. (a)(3). Pub. L. 113–128, § 482(b)(2)(B), substituted “Administrator” for “Commissioner” in heading.

Subsec. (b). Pub. L. 113–128, § 482(b)(1), substituted “Administrator” for “Commissioner” in introductory provisions.

Subsec. (c). Pub. L. 113–128, § 482(b)(3), substituted “grants for a fiscal year” for “grants” and “for the preceding fiscal year” for “by September 30, 1997”.

Subsecs. (g)(2), (h), (i). Pub. L. 113–128, § 482(b)(1), substituted “Administrator” for “Commissioner”.

### Statutory Notes and Related Subsidiaries

### Grants to Centers for Independent Living in States in Which State Funding Equals or Exceeds Federal Funding

Pub. L. 111–213, § 2(b), July 29, 2010, 124 Stat. 2344, provided that: “In awarding funds to existing centers for independent living (described in section 723(c) of the Rehabilitation Act of 1973 (29 U.S.C. 796f–2(c))) in a State, the director of the designated State unit that has approval to make such awards— in fiscal year 2010— may distribute among such centers funds appropriated for the centers for independent living program under part C of title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796f et seq.) by any Act other than the American Recovery and Reinvestment Act of 2009 [Pub. L. 111–5] in the same proportion as such funds were distributed among such centers in the State in fiscal year 2009, notwithstanding section 723(e) of the Rehabilitation Act of 1973 (29 U.S.C. 796f–2(e)) and any contrary provision of a State plan submitted under section 704 of such Act (29 U.S.C. 796c); and may disregard any funds provided to such centers from funds appropriated by the American Recovery and Reinvestment Act of 2009 for the centers for independent living program under part C of title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796f et seq.); and in fiscal year 2011 and subsequent fiscal years, may disregard any funds provided to such centers from funds appropriated by the American Recovery and Reinvestment Act of 2009 for the centers for independent living program under part C of title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796f et seq.).”