The Randolph-Sheppard Act

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Umar Moulta-Ali
Analyst in Disability Policy

TheRandolph-Sheppard Act (P.L. 74-732), as amended, was enacted to provideindividuals who are blind with remunerative employment and to enhancetheir economic well-being. Through Randolph-Sheppard Act (R-SA) programs,individuals who are blind and in need of employment are given priority inthe operation of vending facilities on federal property. Typically, individuals whoare blind and receive R-SA program contracts act as managers of vendingfacilities, subcontracting with food service organizations that providemeal and/or vending services on a day-to-day basis. Run by a statelicensing agency through the U.S. Department of Education’s statevocational rehabilitation program, R-SA programs may also be labeled “businessenterprise programs” or “vending facilities programs.” R-SA programs arenot mandatory, though every state except Wyoming chooses to participate.

Since its inception, the R-SA has extended its reach beyond federal locationsto include state, county, municipal, and private installations. The 1974amendments to the R-SA added cafeterias to its list of eligible “vendingfacilities.” Congress, however, did not specify whether military messhalls should be treated as “cafeterias” in the context of the R-SA. This issueraised concerns about conflicts between the programs authorized by R-SAand another program that addresses the employment of individuals who areblind, AbilityOne. AbilityOne is a statutorily mandated procurementprogram developed under the Javits-Wagner-O’Day Act (JWOD Act) that promotes employmentopportunities for persons who are blind or severely disabled. Two subsequentfederal court of appeals decisions have held that military troop diningfacilities are considered “cafeterias” under the R-SA and that the actcontrolled over the JWOD Act, which also provides employment opportunitiesfor individuals with severe disabilities.

In Fiscal Year (FY) 2010, a total of 2,319 individuals who are blind operated2,505 Randolph- Sheppard vending facilities, generating $792.6 million ingross income, with average vendor earnings of $56,168. This reportprovides a brief history of the R-SA programs and an explanation of howthe programs are structured. Next, detailed financial and operational data are provided—includingthe number of program participants, their overall sales, and their earnings. Finally,the report explores how the R-SA and the JWOD Act intersect or overlap. Itconcludes with a discussion of legislation that was introduced in the 110th and 111th Congresses to reform or combinethe Randolph Sheppard and AbilityOne programs. No legislation was introduced inthe 112th Congress that addressed the R-SAprogram or its discord with the AbilityOne program.


Date of Report: January 24, 2013
Number of Pages: 13
Order Number: RL34609
Price: $29.95

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