U.S. Labor Department Names FY2026 NEON States

The U.S. Department of Labor has selected Colorado, Kansas, Kentucky, Maine, New York, Tennessee, and the District of Columbia to participate as FY2026 “core states” in NEON, the National Expansion of Employment Opportunities Network. The federal initiative is designed to strengthen employment outcomes for individuals with mental health conditions and related disabilities.

NEON provides targeted, ongoing technical assistance intended to improve access to meaningful employment and strengthen the financial stability of job seekers with mental health conditions, including those who experience co-occurring disabilities. The initiative focuses on helping states coordinate workforce, disability, and behavioral health systems so individuals receive more integrated and effective employment supports.

FY2026 Core States and Program Focus

The Office of Disability Employment Policy (ODEP), which administers NEON, describes the initiative as a collaborative network that brings together state leaders, workforce providers, disability service providers, and community partners. The goal is to identify barriers to employment and implement strategies that expand job opportunities.

ODEP said the technical assistance, training, and peer learning opportunities supported through NEON are intended to help states adopt and scale evidence-based employment practices. The program’s priorities include strengthening cross-system collaboration among workforce development, mental health, and disability services systems to reduce fragmentation and better support individuals as they transition into competitive integrated employment.

Key Priorities: Coordination and Evidence Based Practices

NEON also promotes data-driven decision making and policies that improve long-term economic outcomes for people with disabilities. By improving coordination among relevant programs, the Department of Labor aims to help states build a more aligned set of employment supports for individuals with mental health conditions and co-occurring disabilities. Assistant Secretary for Disability Employment Policy Julie Hocker emphasized the initiative’s role in expanding inclusive workforce opportunities. In announcing the FY2026 cohort, Hocker said that people with mental health conditions and co-occurring disabilities “deserve the opportunity to live and work in their community,” aligning the effort with the Department of Labor’s broader goal of ensuring equal access to employment for individuals with disabilities.

Multi-Year Engagement and Network Expansion Since 2019

According to ODEP, NEON works with selected states over multiple years to assess existing workforce and support systems, identify gaps in services, and implement coordinated solutions. ODEP said the initiative is structured to help states build sustainable frameworks that can improve employment outcomes beyond the life of the program. Participating states also share lessons learned with one another, allowing effective strategies to be replicated across the network. NEON has been administered by ODEP since its launch in 2019 and has supported a growing number of states seeking to expand opportunities for individuals with mental health conditions to obtain and maintain competitive employment. The FY2026 cohort represents the latest expansion, with selected states and the District of Columbia expected to take part in ongoing learning and implementation activities aimed at strengthening employment pathways for individuals with disabilities.