As of October 1, 2025, the jurisdictional thresholds for two key regulations impacting federal contractors—the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA)—have increased. These changes stem from an inflationary adjustment statute that authorizes the Federal Acquisition Regulatory Council to review and update acquisition-related thresholds in statutes governing federal procurement.

What Changed?

• Section 503 of the Rehabilitation Act
  • Coverage threshold increased from $15,000 to $20,000.
• VEVRAA
  • Coverage threshold increased from $150,000 to $200,000.

Impact on Affirmative Action Program (AAP) Requirements

• For VEVRAA, AAP requirements now apply to contractors and subcontractors with:
  • At least 50 employees, and
  • A single contract of $200,000 or more.
• For Section 503, AAP requirements continue to apply to contractors and subcontractors with:
  • At least 50 employees, and
  • A single contract of $50,000 or more.

To help employers and stakeholders navigate these changes, the Office of Federal Contract Compliance Programs (OFCCP) has:

• Released a new Jurisdictional Thresholds infographic.
• Updated its webpage with guidance and tools.

We are still awaiting updates from the agency on the proposed changes to the Veterans and Disability implementing regulations.