S. 2438 phases out special wage certificates under federal law that currently allow employers to pay workers with disabilities below minimum wage, requiring a complete transition to competitive integrated employment at standard wage rates within five years of enactment. The bill establishes multiple grant programs totaling $200 million annually from 2026-2030 to help states and employers make this transition, including $3-$15 million grants to states and $200,000-$750,000 grants to individual employers currently using subminimum wage certificates. To receive grants, states must create advisory councils with meaningful participation from people with disabilities and coordinate across multiple agencies to ensure affected workers either transition to competitive jobs or receive wraparound support services complying with federal community-based standards. The law gradually increases the wage floor for any remaining special certificate holders from 60 percent of federal minimum wage in year one to 100 percent by year five, while immediately prohibiting new certificates from being issued and requiring existing ones to expire by the five-year deadline. Federal agencies will conduct comprehensive reporting and audits throughout the transition to track wage changes, employment outcomes, and employer compliance.
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