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On O
ctober 1, 2025, important updates to federal contractor coverage thresholds under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) went into effect. These changes may impact which organizations are required to maintain affirmative action programs (AAPs) under each law and are the result of inflationary adjustments authorized by the Federal Acquisition Regulatory Council.
What Changed? Section 503 of the Rehabilitation Act Threshold increased from $15,000 to $20,000 AAP requirements continue to apply to covered federal contractors and subcontractors with: At least 50 employees, and A single federal contract of $50,000 or more