The rehabilitation program under title II was established by the 1965 Amendments to
the Social Security Act. Under this law, a percentage of the disability benefits paid
under title II in the preceding year from the Trust Funds were paid to the State VR
agencies for the costs of VR services furnished to selected individuals entitled to
DIB, CDB, or DWB benefits.
The rehabilitation program under title XVI was established by the 1972 Amendments
to the Social Security Act. Under this law, an appropriated amount under title XVI
from general revenue funds were paid to the State VR agencies for the cost of providing
VR services to selected SSI recipients based on disability or blindness. (Title XVI
is not effective for Puerto Rico, Guam, or the Virgin Islands).
The expenditures were made for services by the Federal government to offset nonpayment,
or in the case of the blind, substantial reduction of the Supplemental Security Income
payments or Social Security payments which would be made to the beneficiary/recipient.