The Omnibus Budget Reconciliation Act of 1981 (OBRA) made major changes to federal programs like Social Security and disability benefits. The law reduced protections by tightening eligibility rules, changing how benefits were calculated, and ending the minimum benefit for new recipients. These changes made it harder for many people with intellectual and developmental disabilities (IDD), who often have limited work histories, to qualify for stable and adequate disability benefits. OBRA also shifted funding for vocational rehabilitation toward work outcomes, which reduced support for people who needed long-term assistance.

These federal changes helped drive serious budget cuts at the state level, including in Washington State, which faced a major budget crisis in the early 1980s. To reduce costs, the state limited eligibility for developmental disability services, putting supports at risk for thousands of people with IDD. Together, federal and state budget cuts reduced access to income supports and community services and slowed progress toward building a strong system of community-based supports in Washington.