DHS-TRANSITION PROGRAM GRANTS

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5173

Introduced 2/10/2026, by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

20 ILCS 1305/1-95
20 ILCS 4095/16

Amends the Department of Human Services Act. In provisions concerning
the transition program grants to assist eligible community agencies with
active or pending Section 14(c) certificates to transition away from
subminimum wages for workers with disabilities, requires the Department of
Human Services to ensure equitable access to transition grants for all
eligible holders of Section 14(c) certificates by (i) avoiding the
concentration of funding among a limited number of grant recipients and
(ii) promoting equity in the distribution of funds by being inclusive of
all geographic regions of the State, provider sizes, and transition needs.
Provides that every applicant that applies for grant funds and meets the
grant criteria established by the Department shall be awarded a grant in an
amount based upon the Department's funding criteria. Requires grant
recipients to submit progress reports to the Department twice annually on
a form developed by the Department in consultation with the Illinois
Council on Developmental Disabilities. Sets forth the information required
in the reports. Requires the Department to aggregate data collected from
the reports and make it publicly available on an annual basis. Amends the
Employment and Economic Opportunity for Persons with Disabilities Task
Force Act. Requires the Department to ensure that there is project
management for statewide implementation of the multi-year plan under the
Dignity in Pay Act, Public Act 103-1060, through December 31, 2029. Sets
forth a list of project management responsibilities. Requires the
Department to ensure the availability of ongoing technical assistance to
eligible Section 14(c) certificate holders throughout the transition
period ending on December 31, 2029. Sets forth the type of technical
assistance to be provided. Provides that funds appropriated for Section
14(c) transition purposes may be used for (i) transition program grants to
eligible providers, (ii) statewide project management and coordination,
and (iii) technical assistance and capacity-building supports. Effective
immediately.
LRB104 19790 KTG 33240 b

A BILL FOR

HB5173
LRB104 19790 KTG 33240 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Department of Human Services Act is amended
5
by changing Section 1-95 as follows:

6

(20 ILCS 1305/1-95)
7

Sec. 1-95.
Transition program grants.
8

(a) The Department of Human Services shall establish a
9
Section 14(c) transition program to award transition grants to
10
eligible community agencies with active or pending Section
11
14(c) certificates to aid in the transition away from
12
subminimum wages for workers with disabilities. The goal of
13
Section 14(c) transition program grants is to develop new
14
opportunities and programs and grow capacity to respond to the
15
needs of individuals with disabilities in their geographic
16
area, including, but not limited to, supported employment,
17
customized employment, self-employment, entrepreneurship, and
18
diverse day programs that support meaningful days, choice, and
19
community integration.
The Department shall ensure equitable
20
access to transition grants for all eligible holders of
21
Section 14(c) certificates by (i) avoiding the concentration
22
of funding among a limited number of grant recipients and (ii)
23
promoting equity in the distribution of funds by being

HB5173
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LRB104 19790 KTG 33240 b
1
inclusive of all geographic regions of the State, provider
2
sizes, and transition needs. Every applicant that applies for
3
grant funds and meets the grant criteria established by the
4
Department shall be awarded a grant in an amount based upon the
5
Department's funding criteria.

6

(b) Eligibility for Section 14(c) transition program
7
grants shall be contingent upon community agencies submitting
8
a transition plan. The Department shall provide example plans
9
that community agencies may adapt. By January 1, 2025, the
10
transition program grant funds shall be awarded in compliance
11
with the Grant Accountability and Transparency Act.
12

(c) Grants shall be made by the Department to eligible
13
holders of Section 14(c) certificates, consistent with the
14
Grant Accountability and Transparency Act, to assist workers
15
with disabilities who are working for subminimum wages to
16
transition to competitive integrated employment and to support
17
eligible Section 14(c) certificate holders. Grant funding
18
shall be used to:
19

(1) provide competitive integrated employment;
20

(2) assist individuals with disabilities who were
21

employed at subminimum wages to find and retain
22

competitive integrated employment; or
23

(3) provide integrated community participation and
24

wraparound services for individuals with disabilities who
25

were employed at subminimum wages.
26

(c-5) As a condition of receiving a transition grant under

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1
this Section each grant recipient shall submit progress
2
reports to the Department twice annually on a form developed
3
by the Department in consultation with the Illinois Council on
4
Developmental Disabilities. The first report shall be
5
submitted no later than October 31st and the second report
6
shall be submitted no later than April 30th of each grant year.
7
The progress report shall include, at a minimum:
8

(1) the number of people served who were previously
9

paid subminimum wages;
10

(2) employment outcomes, including competitive
11

integrated employment, supported employment, and non-work
12

community participation;
13

(3) wage data before and after transition activities;
14

(4) hours worked and employment retention indicators;
15

(5) types of services and supports provided using
16

grant funds;
17

(6) barriers encountered and corrective actions taken;
18

and
19

(7) expenditures aligned to approved grant activities.

20

(c-6) The Department shall aggregate data collected under
21
subsection (c-5) to support an analysis of statewide
22
transition progress and alignment with the multi-year plan
23
required under Section 16 of the Employment and Economic
24
Opportunity for Persons with Disabilities Task Force Act.
25
Aggregated non-identifiable data shall be made available to
26
the public beginning January 1, 2027, and every January 1

HB5173
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LRB104 19790 KTG 33240 b
1
thereafter.

2

(d) Beginning on January 1, 2026, the Department of Human
3
Services shall provide an annual status report to the Governor
4
and the General Assembly, incorporating data from each grant
5
recipient, to demonstrate progress toward identified
6
benchmarks.
7
(Source: P.A. 103-1060, eff. 1-21-25.)

8

Section 10.
The Employment and Economic Opportunity for
9
Persons with Disabilities Task Force Act is amended by
10
changing Section 16 as follows:

11

(20 ILCS 4095/16)
12

Sec. 16.
Multi-year plan toward elimination of Section
13
14(c) certificates.
By no later than July 1, 2025, the
14
Employment and Economic Opportunity for Persons with
15
Disabilities Task Force, with the Illinois Council on
16
Developmental Disabilities and an academic partner with
17
relevant subject matter expertise, shall create a multi-year
18
plan of recommended actions, outcomes, and benchmarks in
19
accordance with paragraphs (1) through (3) to help the State
20
successfully eliminate on and after December 31, 2029 the use
21
of certificates authorized under Section 14(c) of the federal
22
Fair Labor Standards Act of 1938.
23

(1) The multi-year plan shall include, but not be
24

limited to, all of the following:

HB5173
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LRB104 19790 KTG 33240 b
1

(A) Identification, gathering, and analytics of
2

data to inform the work of the Task Force, including,
3

but not limited to:
4

(i) the total number of entities utilizing
5

Section 14(c) certificates;
6

(ii) the total number of persons with
7

disabilities who are paid subminimum wages and the
8

total number of persons with disabilities who are
9

paid at least the applicable minimum wages;
10

(iii) the total number of persons with
11

disabilities working in facility-based employment
12

paid at or above minimum wage.
13

(B) Recommended actions, including additional
14

statutory, regulatory, or policy measures, including
15

State-supported activities to assist providers in
16

employing people with disabilities.
17

(C) Recommended measurable outcomes for each year
18

of the plan.
19

(D) Recommended benchmarks for each year of the
20

plan.
21

(2) In developing the multi-year plan, the Task Force
22

shall consider:
23

(A) The total available approximate number of
24

people with disabilities paid subminimum wages who
25

want to transition to competitive integrated
26

employment with supports.

HB5173
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LRB104 19790 KTG 33240 b
1

(B) The total available approximate number of
2

people with disabilities who do not wish to pursue
3

competitive integrated employment and who would
4

benefit from alternative meaningful day opportunities.
5

(C) Existing State employment programs designed to
6

support workers with disabilities.
7

(D) An evaluation of capacity limits in providers'
8

contracts with the Department of Human Services'
9

Division of Rehabilitation Services and Division of
10

Developmental Disabilities.
11

(E) The personal choice of persons with
12

disabilities regarding employment goals and planning
13

in person-centered planning processes.
14

(F) The use of existing and emerging technologies
15

that could assist persons with disabilities in
16

achieving employment goals.
17

(G) The impact of access to reliable
18

transportation on achieving employment goals and
19

ongoing employment.
20

(H) An analysis that shall include data on:
21

(i) the activities of youth with disabilities
22

within one year of exiting high school;
23

(ii) the count of schools holding Student
24

Transition Employment Program and Pre-Employment
25

Transition Services contracts with the Division of
26

Rehabilitation Services that includes the count of

HB5173
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1

students with ongoing cases who transition to
2

adult services;
3

(iii) the number of students 14 1/2 through 22
4

years of age with individualized education plans
5

indicating a need for home and community-based
6

adult services.
7

(I) The potential changes to State law,
8

regulations, or policies to protect means-tested
9

benefits for persons with disabilities as they pursue
10

employment-related goals.
11

(J) Dissemination of information regarding
12

employment supports and benefits to individuals with
13

disabilities, consumers of public services, employers,
14

service providers, and State and local agency staff.
15

Information shall include the Ticket to Work program,
16

Work Incentives Planning and Assistance Programs,
17

Illinois ABLE, and Health Benefits for Workers with
18

Disabilities.
19

(K) The education and training needs of staff
20

working in community-based provider agencies toward
21

advancing competitive, integrated work options for
22

persons with disabilities, in areas including, but not
23

limited to:
24

(i) employment options;
25

(ii) non-employment options;
26

(iii) home and community-based services and

HB5173
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LRB104 19790 KTG 33240 b
1

supports;
2

(iv) self-advocacy;
3

(v) benefits planning;
4

(vi) asset building;
5

(vii) assistive technology;
6

(viii) certification programs; and
7

(ix) mental health services and supports.
8

(L) Agreements between State agencies and
9

community-based providers that promote flexibility and
10

allow for expansion.
11

(M) Ongoing review of rates and reimbursements
12

that support various employment programs for persons
13

with disabilities, including competitive, integrated
14

employment, customized employment, and supported
15

employment.
16

(N) The need to further engage the private
17

business community to hire persons with disabilities
18

through incentives that may include specialized
19

educational opportunities, distribution of literature
20

at points of interaction with government licensing
21

agencies, and tax incentives to hiring persons with
22

disabilities.
23

(O) The availability and need for adequate
24

benefits planning services for workers with
25

disabilities.
26

(P) The availability and need for meaningful day

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LRB104 19790 KTG 33240 b
1

services for individuals with disabilities who prefer
2

not to work.
3

(Q) Enhanced service and support needs of aging
4

adults with developmental disabilities who have been
5

engaged in subminimum wage work, including, but not
6

limited to, activities of daily living, behavioral
7

supports, and medical supports, including
8

administration of medications while participating in
9

employment supports and community day services through
10

the Department of Human Services.
11

(3) In developing the multi-year plan, the Task Force
12

shall consult with employment service providers, people
13

with disabilities, disability trade associations, and
14

disability advocacy organizations.
15

(4) The Task Force shall submit the multi-year plan to
16

the Governor and the General Assembly by no later than
17

July 1, 2025. Annual reports on implementation shall be
18

required by no later than January 1 of each subsequent
19

year through January 1, 2030.
20

(5) The Task Force shall provide annual updates to the
21

Governor and the General Assembly through January 1, 2035
22

on the employment of persons with disabilities in
23

Illinois.
24

(6) The Governor shall appoint at least 2 additional
25

members to the Task Force who represent organizations that
26

are current Section 14(c) certificate holders. The

HB5173
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LRB104 19790 KTG 33240 b
1

Director of Labor, or the Director's designee, shall serve
2

on the Task Force in a non-voting, advisory capacity until
3

July 1, 2025.
4

(7) The Department of Human Services shall ensure that
5

there is project management for statewide implementation
6

of the multi-year plan under the Dignity in Pay Act,
7

Public Act 103-1060, through December 31, 2029. Project
8

management responsibilities shall include: (i) the
9

development and maintenance of a comprehensive
10

implementation plan with milestones; (ii) coordination
11

across State agencies, service providers, and technical
12

assistance entities; (iii) monitoring progress toward
13

achieving statutory benchmarks; (iv) the identification
14

and mitigation of risk; and (v) the preparation of
15

required reports to the Governor and General Assembly in
16

partnership with the Illinois Council on Developmental
17

Disabilities and the Employment and Economic Opportunity
18

for Persons with Disabilities Task Force.
19

Project management functions may be administered
20

through an intergovernmental agreement or a grant with an
21

entity that demonstrates expertise in developmental
22

disability systems transformation.
23

(8) The Department of Human Services shall ensure the
24

availability of ongoing technical assistance to eligible
25

Section 14(c) certificate holders throughout the
26

transition period ending on December 31, 2029. Technical

HB5173
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LRB104 19790 KTG 33240 b
1

assistance shall include (i) individualized provider
2

coaching, (ii) cohort-based learning opportunities, (iii)
3

open office hours for real-time problem-solving, (iv)
4

support for financial modeling, service redesign, and
5

workforce development, and (v) assistance to State
6

agencies to align policies and systems with transition
7

goals and recommendations outlined in the multi-year plan.
8

Technical assistance shall be provided by entities with
9

demonstrated expertise in disability employment systems
10

and provider transformation.
11

(9) Funds appropriated for Section 14(c) transition
12

purposes may be used for (i) transition program grants to
13

eligible providers, (ii) statewide project management and
14

coordination, and (iii) technical assistance and
15

capacity-building supports. The Department shall balance
16

investments to ensure provider participation, statewide
17

consistency, and long-term system sustainability.

18
(Source: P.A. 103-1060, eff. 1-21-25.)

19

Section 99.
Effective date.
This Act takes effect upon
20
becoming law.

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