Proposed Rule2026-08809
Veteran Readiness and Employment Program: Improving Development and Delivery of Individualized Rehabilitation Plans
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Published
May 6, 2026
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) proposes to amend the regulations pertaining to the Veteran Readiness and Employment (VR&E) Chapter 31 program to ensure the planning of rehabilitation programs for eligible veterans and dependents is based on information from current treatment providers and not individuals on a panel who never treated the veteran or dependent. Current regulations require consultation with a panel of individuals who are not involved in the direct care or treatment of the veteran or dependent. As such consultation is not statutorily required, VA proposes to eliminate this unnecessary process, which often adds avoidable delays to veterans' access to benefits, and streamline decision-making based on providers who actually know the veteran's needs.
Full Text
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<title>Federal Register, Volume 91 Issue 87 (Wednesday, May 6, 2026)</title>
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[Federal Register Volume 91, Number 87 (Wednesday, May 6, 2026)]
[Proposed Rules]
[Pages 24497-24499]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08809]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
RIN 2900-AS92
Veteran Readiness and Employment Program: Improving Development
and Delivery of Individualized Rehabilitation Plans
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend the
regulations pertaining to the Veteran Readiness and Employment (VR&E)
Chapter 31 program to ensure the planning of rehabilitation programs
for eligible veterans and dependents is based on information from
current treatment providers and not individuals on a panel who never
treated the veteran or dependent. Current regulations require
consultation with a panel of individuals who are not involved in the
direct care or treatment of the veteran or dependent. As such
consultation is not statutorily required, VA proposes to eliminate this
unnecessary process, which often adds avoidable delays to veterans'
access to benefits, and streamline decision-making based on providers
who actually know the veteran's needs.
DATES: Comments must be received by July 6, 2026.
ADDRESSES: You may submit comments through <a href="http://www.regulations.gov">www.regulations.gov</a> under
RIN 2900-AS92. That website includes a plain language summary of this
rulemaking. Instructions for accessing agency documents, submitting
comments, and viewing the rulemaking docket are available on
<a href="http://www.regulations.gov">www.regulations.gov</a> under ``FAQ.''
FOR FURTHER INFORMATION CONTACT: Loraine Spangler, Policy Analyst,
Veteran Readiness and Employment Services, Veterans Benefits
Administration, (202) 461-9600 or <a href="/cdn-cgi/l/email-protection#e38f8c91828a8d86cd9093828d848f8691a39582cd848c95"><span class="__cf_email__" data-cfemail="99f5f6ebf8f0f7fcb7eae9f8f7fef5fcebd9eff8b7fef6ef">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Vocational Rehabilitation Panel (VRP) is
entirely a creation of regulation and is not mandated by or mentioned
in statute. See 38 CFR 21.60 and 21.62. The purpose of the VRP is to
consult with Vocational Rehabilitation Counselors (VRC) to make
professional recommendations for the services that will be included in
a veteran's or dependent's rehabilitation plan. VA's regulations
currently require consultation with a VRP in specific types of cases,
such as: veterans with a serious employment handicap who may benefit
from a program of Independent Living (IL) when achievement of a
vocational goal is not currently reasonably feasible; dependents who
require determination of the need for and types of assistance to be
provided as part of special restorative training (SRT) or specialized
vocational training (SVT) under VA's Chapter 35 Survivors' and
Dependents' Educational Assistance program; and veterans and dependents
who need determinations of the feasibility of a vocational goal and of
the services to be provided under VA's Chapter 18 Spina Bifida and
Birth Defects Benefit program. The members of a VRP must include a VRC
from VR&E, a VR&E vocational rehabilitation specialist, a Veterans
Health Administration (VHA) medical consultant, and a VHA social worker
and may also include other VA specialists. The VRP's recommendations
and suggestions are not legally binding.
In some circumstances, it is impossible to include on the VRP, VHA
providers who have treated the individual. For example, SRT and SVT
services can be requested for Chapter 35 dependents as early as age 14.
VHA, however, only treats veterans; therefore, VHA providers serving on
a VRP will not have treated the individual in such cases. Getting VHA
providers on a VRP to render opinions about dependents they have never
treated is difficult. Instead, the VRC may and does seek information
from non-VA sources when evaluating such cases. These decisions can be
more accurately made by VRCs gathering all necessary information, which
may include documentation from current treating professionals, review
of available records, consultations with current medical and/or service
providers, consultations with school personnel, and review of
Individualized Education Programs or other relevant documentation,
rather than using a VRP that includes professionals who have not
treated the dependents in such cases.
Even for veterans, given the sheer number of individuals served by
VHA, it is unlikely that members of a VRP will have treated the
individual in any given case. In contrast, professionals currently
involved in the treatment of veterans and dependents provide
information that is relevant and accurate. The individual's treating
professionals are more aware of unique circumstances that must be
considered when determining the feasibility and ability of the
individual to participate in services needed for successful
rehabilitation. Additionally, VA Regional Offices have difficulty
assembling a VRP, since providers are hesitant to give input about
individuals they may have never treated. The frequent inability or
prolonged period needed to assemble a VRP results in delays of timely
services to veterans and dependents. Again, VRCs currently contact
providers the veterans and dependents are using to obtain the
information needed to make decisions in vocational planning, reducing
any need for the VRP.
By removing the VRP, VR&E would improve program administration,
improve the quality of services provided, and provide more timely
decisions. Rehabilitation services and outcomes would be improved since
the information regarding individuals would be obtained from the most
relevant sources and providers.
Because VR&E staff rely on current treatment and/or service
providers to assist with recommendations for services provided in an
individual's rehabilitation plan, VR&E proposes to remove 38 CFR 21.60
and 21.62. VR&E also proposes amendments in numerous other regulatory
provisions to remove references to the VRP for the previously stated
reasons. VR&E also proposes to remove Sec. 21.198(b)(7), which lists
the VRP as a potential resource the VR&E Officer may utilize when
reviewing cases for which discontinuance is being considered for a
veteran with a service-connected disability rated 50 percent or higher.
This provision is unnecessary as all files are reviewed prior to
discontinuance to ensure accuracy.
Pursuant to 38 U.S.C. 3104, VR&E has the authority to provide an
evaluation to determine the need for services, the feasibility of
achieving a vocational goal, and the assistance needed to successfully
complete a rehabilitation program. Services and assistance are
periodically reevaluated by the VRC to determine the most effective
services to ensure successful completion of the rehabilitation program.
Services and assistance can be more effectively and timely provided
using current providers with relevant and current information, without
the time-consuming process of assembling a VRP whose members have most
likely not treated the individual.
To ensure other sections of part 21 conform to this change, VA
proposes to amend Sec. Sec. 21.3104(a), 21.3300(c),
[[Page 24498]]
21.3301, 21.3303(a), 21.3304(b)(2), 21.3306(b), 21.4232(a), 21.6052,
21.6310, 21.8032, and 21.8310 to remove references to the VRP. VA also
proposes to amend Sec. Sec. 21.3020(b), 21.3040(d), 21.3044,
21.3300(d), 21.3303(a), and 21.4232, to reflect a change made by the
Harry W. Colmery Veterans Educational Assistance Act of 2017, Public
Law 115-48, sec. 202, 131 Stat. 973, 989 (2017), in which Congress
decreased the aggregate months of entitlement for Chapter 35 benefits
from 45 months to 36 months. These proposed changes ensure VA
regulations align with the statutory requirements at 38 U.S.C.
3511(a)(1). VA also proposes to make a housekeeping edit to remove
Sec. 21.4232(c) because there is no longer a Sec. 21.4276.
Executive Orders 12866, 13563, and 14192
VA examined the impact of this rulemaking as required by Executive
Orders 12866 (Sept. 30, 1993) and 13563 (Jan. 18, 2011), which direct
agencies to assess all costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits. The Office of Information and
Regulatory Affairs has determined that this rulemaking is not a
significant regulatory action under Executive Order 12866, as
supplemented by Executive Order 13563. This proposed rule is expected
to be an Executive Order 14192 deregulatory action.
Economic Impact: The proposed elimination of the VRP is cost
neutral because it does not introduce new benefits, alter existing
entitlements, or require additional administrative resources. Instead,
it streamlines the decision-making process by allowing VRCs to rely on
current treatment providers, who are more familiar with the
individual's needs, rather than assembling a panel of professionals who
may have never treated the veteran or dependent. This change would
remove an outdated and inefficient procedural requirement and would
reduce administrative delays. This rulemaking would also result in
qualitative enhancements in service delivery without imposing new
obligations or costs, thereby qualifying as a deregulatory action.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act (5
U.S.C. 601-612). This certification is based on the fact that the
changes made by this rulemaking would primarily impact VA employees,
such as current treatment providers, as well as specialists and
consultants from VR&E and VHA who may have otherwise been asked to
serve on VRPs. VA anticipates that any impact to VR&E participants
would be beneficial and non-economic. Additionally, benefits recipients
are not considered small entities for the purposes of the Regulatory
Flexibility Act. Therefore, under 5 U.S.C. 605(b), the initial and
final regulatory flexibility analysis requirements of 5 U.S.C. 603 and
604 do not apply.
Unfunded Mandates
This proposed rule would not result in the expenditure by State,
local, and Tribal governments, in the aggregate, or by the private
sector, of $100 million or more (adjusted annually for inflation) in
any one year.
Paperwork Reduction Act
This proposed rule contains no provisions constituting a collection
of information under the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3521).
List of Subjects in 38 CFR Part 21
Administrative practice and procedure, Armed forces, Claims,
Colleges and universities, Conflict of interests, Education,
Employment, Grant programs--education, Grant programs--veterans, Health
care, Loan programs--education, Loan programs--veterans, Manpower
training programs, Reporting and recordkeeping requirements, Schools,
Travel and transportation expenses, Veterans, Vocational education,
Vocational rehabilitation.
Signing Authority
Douglas A. Collins, Secretary of Veterans Affairs, approved this
document on April 20, 2026, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Gabriela DeCuir,
Alternate Federal Register Liaison Officer, Department of Veterans
Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part 21 as set forth below:
PART 21--VETERAN READINESS AND EMPLOYMENT AND EDUCATION
Subpart A--Veteran Readiness and Employment
0
1. The authority citation for part 21, subpart A continues to read as
follows:
Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in
specific sections.
Sec. 21.60 [Removed and Reserved]
0
2. Remove and reserve Sec. 21.60.
Sec. 21.62 [Removed and Reserved]
0
3. Remove and reserve Sec. 21.62.
Sec. 21.198 [Amended]
0
4. In Sec. 21.198, remove paragraph (b)(7).
Subpart C--Survivors' and Dependents' Educational Assistance Under
38 U.S.C. Chapter 35
0
5. The authority citation for part 21, subpart C continues to read as
follows:
Authority: 38 U.S.C. 501(a), 512, 3500-3566, and as noted in
specific sections.
Sec. 21.3020 [Amended]
0
6. In Sec. 21.3020, remove in paragraph (b), in both the section
heading and paragraph text, the text ``45'' in both places it appears
and add in both places the text ``36''.
Sec. 21.3040 [Amended]
0
7. In Sec. 21.3040, remove in paragraph (d) the text ``45'' and add in
its place the text ``36''.
Sec. 21.3044 [Amended]
0
8. In Sec. 21.3044:
0
a. Remove in paragraph (a) the text ``45'' and add in its place the
text ``36''.
0
b. Remove in paragraph (b) the text ``45'' in both places it appears
and add in both places the text ``36''.
0
c. Remove in paragraph (c), in the section heading, the introductory
text, and paragraph (2), the text ``45'' in each place it appears and
add in each place the text ``36''.
0
9. In Sec. 21.3104, revise paragraph (a) to read as follows:
Sec. 21.3104 Special training.
(a) Initial counseling. A counseling psychologist or vocational
rehabilitation counselor in the Veteran Readiness and Employment (VR&E)
Division will counsel an eligible person with a disability who is a
child, spouse, or surviving spouse for consideration as to the child's,
spouse's, or surviving spouse's need for a course of specialized
vocational training or special restorative training. The counseling
psychologist or vocational rehabilitation counselor will gather all
necessary information, which
[[Page 24499]]
may include documentation from current treating professionals, review
of available records, consultations with current medical and/or service
providers, consultations with school personnel, and review of
Individualized Education Programs (IEP) or other relevant
documentation. If it is determined that the child, spouse, or surviving
spouse requires specialized vocational training or special restorative
training, the counseling psychologist or vocational rehabilitation
counselor will prescribe an appropriate course in line with the goals
of 38 U.S.C. chapter 35.
* * * * *
Sec. 21.3300 [Amended]
0
10. In Sec. 21.3300:
0
a. Remove in paragraph (c) introductory text the words ``, after
consulting with the Vocational Rehabilitation Panel,''.
0
b. Remove in paragraph (d) introductory text the text ``45'' in both
places it appears and add in both places the text ``36''.
0
11. In Sec. 21.3301:
0
a. Revise paragraph (a) introductory text.
0
b. Remove paragraph (b) and redesignate paragraphs (c) through (e) as
paragraphs (b) through (d), respectively.
0
c. Remove in newly redesignated paragraph (b) the words ``Following
consultation with the panel and receipt of the panel's report, the''
and add in their place the word ``The''.
0
d. Revise newly redesignated paragraph (d).
The revisions read as follows:
Sec. 21.3301 Need.
(a) Determination of need. When special restorative training has
been requested or is being considered for an eligible person with a
disability who is a child, spouse, or surviving spouse, a counseling
psychologist or vocational rehabilitation counselor will gather all
necessary information, which may include documentation from current
treating professionals, review of available records, consultations with
current medical and/or service providers, consultations with school
personnel, and review of Individualized Education Programs or other
relevant documentation, to determine the need for and feasibility of
special restorative training. After the counseling psychologist or
vocational rehabilitation counselor completes this task, he or she will
consider whether--
* * * * *
(d) Reentrance after interruption. The counseling psychologist or
vocational rehabilitation counselor will determine if the eligible
person may be permitted reentrance into special restorative training
following interruption. The counseling psychologist or vocational
rehabilitation counselor, in consultation with other treatment
providers, will determine if there is a reasonable expectation that the
purpose of special restorative training will be accomplished. See Sec.
21.3306.
* * * * *
0
12. In Sec. 21.3303, revise paragraph (a) to read as follows:
Sec. 21.3303 Extent of training.
(a) Length of special restorative training. Ordinarily, special
restorative training may not exceed 12 months. When the counseling
psychologist or vocational rehabilitation counselor determines that
more than 12 months of training is necessary, he or she will refer the
program to the Executive Director, Veteran Readiness and Employment
(VR&E) Service for prior approval. Where the plan for a program of
special restorative training itself (not in combination with the
program of education) will require more than 36 months (or its
equivalent in accelerated payments), the plan will be included in the
recommendation to the Executive Director, VR&E Service for approval.
(Authority: 38 U.S.C. 3542, 3543(b)).
Sec. 21.3304 [Amended]
0
13. In Sec. 21.3304, remove in paragraph (b)(2) the words ``Vocational
Rehabilitation Panel'' and add in their place the words ``current
treatment and/or service providers''.
Sec. 21.3306 [Amended]
0
14. In Sec. 21.3306:
0
a. Remove in the heading of paragraph (b) ``Consultation with
Vocational Rehabilitation Panel.'' and add in its place ``Other
reentrance considerations.''.
0
b. Remove in the introductory text of paragraph (b)(1) the words ``the
Vocational Rehabilitation Panel'' and add in their place the words
``current treatment and/or service providers to determine if reentrance
is appropriate''.
Subpart D--Administration of Educational Assistance Programs
0
15. The authority citation for part 21, subpart D continues to read as
follows:
Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs.
30, 32, 33, 34, 35, 36, and as noted in specific sections.
0
16. In Sec. 21.4232:
0
a. Remove in paragraph (a)(2)(i) the words ``After consulting with the
Vocational Rehabilitation Panel, determine'' and add in their place the
word ``Determine''.
0
b. Revise paragraph (a)(3).
0
c. Remove paragraph (c) and redesignate paragraph (d) as paragraph (c).
0
d. Remove in newly designated paragraph (c) the text ``45'' and add in
its place the text ``36''.
The revision reads as follows:
Sec. 21.4232 Specialized vocational training--38 U.S.C. Chapter 35.
(a) * * *
(3) The CP or VRC will assist in developing the program, if it was
previously determined that the course is in the eligible person's best
interest.
* * * * *
Subpart I--Temporary Program of Vocational Training for Certain New
Pension Recipients
0
17. The authority citation for part 21, subpart I continues to read as
follows:
Authority: Pub. L. 98-543, 38 U.S.C. 501 and chapter 15,
sections specifically cited, unless otherwise noted.
Sec. 21.6052 [Amended]
0
18. In Sec. 21.6052, remove in paragraph (b)(2) the words ``by the
Vocational Rehabilitation Panel''.
Sec. 21.6310 [Amended]
0
19. In Sec. 21.6310, remove in paragraph (c) the words ``the medical
consultant and the Vocational Rehabilitation Panel'' and add in their
place the words ``current medical and/or service providers''.
Subpart M--Vocational Training and Rehabilitation for Certain
Children of Vietnam Veterans and Veterans With Covered Service in
Korea--Spina Bifida and Covered Birth Defects
0
20. The authority citation for part 21, subpart M continues to read as
follows:
Authority: 38 U.S.C. 101, 501, 512, 1151 note, ch. 18, 5112,
and as noted in specific sections.
Sec. 21.8032 [Amended]
0
21. In Sec. 21.8032, remove in paragraph (b)(2) the words ``by the
Vocational Rehabilitation Panel''.
Sec. 21.8310 [Amended]
0
22. In Sec. 21.8310 remove in paragraph (c) the words ``also confer
with the medical consultant and the Vocational Rehabilitation Panel
described in Sec. Sec. 21.60 and 21.62'' and add in their place the
words ``consult with current medical and/or service providers''.
[FR Doc. 2026-08809 Filed 5-5-26; 8:45 am]
BILLING CODE 8320-01-P
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