Update: Independent Living Program Funding

We are writing to provide you with a funding update for both Fiscal Year (FY) 2025 Part C grants and on Congressional appropriations of Fiscal Year 2026 funds.

The most recent continuing resolution provided level funding for both Part B and Part C Independent Living Program grants for FY 2025. Part B and Part C grant awards are distributed with different grant cycles.

Part B awards run alongside the federal fiscal year. Part B funds awarded for FY 2025 have already been distributed. The next grant cycle for Part B awards begins on 10/1/2025. Those FY 2026 funds have not yet been appropriated by Congress.

Part C grant awards begin on 9/30/2025. Currently, notice of awards for the Part C FY 2025 grant cycle have not been released.

Federal Fiscal Year 2025 Funding and Notice of Awards for Part C Grant Cycle Beginning on 9/30/205

NCIL has met with the Administration for Community Living (ACL) twice since July and has been monitoring the FY 2025 Notice of Awards for Part C grants.

ACL informed us in August that they are actively working with both the fiscal office at the Administration for Children and Families and that they have contracted with grant officers to facilitate issuing the Notice of Awards. ACL estimated that the Notice of Awards will be sent out during the last week of September. This week, ACL confirmed again that they are on track to send out Notice of Awards next week. NCIL would like to take every precaution to avoid any delay in Notices.

What you can do: We encourage you to reach out to your member of Congress to keep them updated on the status of the awards, especially if this lateness is causing your Center any harm. If you reach out to your member of Congress, please let NCIL Director of Advocacy and Public Policy Jessica Podesva know. NCIL will continue to advocate with ACL to ensure the awards are issued and, looking ahead, will push for the next funding cycle awards to be distributed in a timely manner.

Federal Fiscal Year 2026 Funding and Congressional Budget Update

Last week, the House released its budget markup for the U.S. Department of Health and Human Services. We are pleased to report that in the markup all Administration on Disability (AoD) programs remain intact and funded. The Independent Living Program line item is proposed to be level-funded at a total of $128 million, which includes both Part B and Part C awards. Next, both the House and Senate must pass the budget, then it must go to the President’s desk for signature.

Congress is struggling to come to an agreement to fund the government. It is uncertain whether we will be looking at a Continuing Resolution or potentially facing a government shutdown. A government shutdown may impact the ability for funding to be distributed after September 30.

It is significant that funding for the national Independent Living Program has not been proposed to be cut in both the House and Senate budget markups. This would not have been possible without our continued advocacy. Over 1,000 people joined us at our ADA 35th Anniversary March and Rally, where we amplified voices that are frequently ignored – disabled people who have directly utilized AoD programs, including the Independent Living Program. We highlighted the importance of these programs and the critical role they play in our communities. That same week, hundreds of individuals across the country participated in over 250 legislative meetings with Congressional representatives. Our voices were heard. Our advocacy has made a difference – and together we will keep fighting to protect and strengthen the Independent Living Program.

If you have any questions, please contact NCIL’s Director of Advocacy and Public Policy Jessica Podesva at jessica@ncil.org.