NYSID & New York Alliance for Inclusion & Innovation Highlight New Rockefeller Institute of Government Report: “Economic & Social Impact of NYSID & Disability Service Providers in NY: New Developments”

By NYSID & The New York State Alliance for Inclusion and Innovation | March 2, 2026


Calls For Putting Gov. Hochul’s EO 40 on Employment First into Practice

Rockefeller: “Preferred Source Program is highly regulated.”
A systematic review, “would support the state’s Employment First goals.”

New York State Industries for the Disabled (NYSID) President and CEO Maureen O’Brien and New York Alliance for Inclusion & Innovation President & CEO Michael Seereiter hailed a new report, “The Economic and Social Impact of NYSID and Disability Service Providers in New York: New Developments,” released today by the Rockefeller Institute of Government. O’Brien and Seereiter called on the Hochul Administration and state lawmakers to turn Rockefeller’s recommendations into reality to expand employment opportunities for New Yorkers with disabilities.

In releasing the report, Rockefeller noted:

  • Non-profit disability service providers generated $15.6 billion in economic output, supported nearly 200,000 full time jobs, and contributed $2.4 billion in state and federal tax revenue.
  • NYSID’s members alone generated $470 million in economic impact and employed 4,800 individuals with disabilities, who collectively worked more than 3.6 million hours, in 2023.
  • Current regulations create “persistent barriers” to high-quality employment for people with disabilities and should be changed. Those include:
  • Raising the threshold for government agency purchases from NYSID to be more in line with other similar programs. For instance, contracts with NYSID over $100,000 require OGS approval, while the approval threshold for MWBE contracts was increased to $1.5 million in FY 24-25. (p.43)
  • The FY 2027 Executive Budget calls for increasing to $300,000 the discretionary purchasing threshold. However, Preferred Source contracts above $100,000 would still need OGS approval. Increasing the price approval threshold for Preferred Source contracts to $300,000 would significantly reduce the administrative burden for OGS, NYSID and NYSID Member Agencies. (p.43)
  • Reducing the administrative burden and compliance requirements so government agencies and non-profits employing people with disabilities can focus more on achieving Governor Hochul’s Employment First goals as laid out in Executive Order 40 (EO40), and less time on paperwork. (p.44)
  • Including formerly incarcerated people with disabilities or justice-involved youth with disabilities could aid both reducing recidivism and preventing youth from first-time incarceration. Nearly one-quarter of the state’s prison population reports a cognitive disability. (p.43)
  • Increasing employment opportunities for New Yorkers with disabilities by expanding both the jobs that qualify as ‘direct’ labor’ and the job titles and industries that are eligible for Preferred Source contracts. (p.43-44)

NYSID President and CEO Maureen O’Brien said: “This new Rockefeller report sends a strong message that while New York State has made great progress in expanding opportunities for people with disabilities to get good jobs, significant obstacles remain that prevent the state from getting the most from and doing the most for these New Yorkers. We’re grateful to the Rockefeller Institute for detailing these issues and providing a framework for greater progress toward achieving the Employment First goals Governor Hochul has so wisely established.”

New York Alliance for Inclusion and Innovation President & CEO Michael Seereiter said: “For most of today’s policy makers, Willowbrook is close to ancient history, but the memories and impacts of that shameful time remain fresh in the minds of those of us dedicated to supporting people with disabilities. Willowbrook proved the State could not do this work on its own We’re eager to continue to raise awareness in Albany of the need for smart, proactive policies that ensure our community receives the support it needs and deserves. Enacting these Rockefeller recommendations would be a good first step.”

The Preferred Source Modernization Law, signed by Governor Hochul in 2022 – and extended through 2028 in legislation passed last year – brought New York’s landmark program of job support for persons with disabilities into the 21stCentury and marked the first major modifications in the Preferred Source Program  since its 1975 enactment in the aftermath of Willowbrook.

In 2024, Governor Hochul issued EO 40, committing New York to be an Employment First state, in which competitive integrated employment is the preferred outcome for all working-aged people with disabilities. The report notes: “New York’s goal as an Employment First state to provide more opportunities for people with disabilities to live in, participate in, and in in the greater community alongside both people with disabilities and people without disabilities is supported by the Preferred Source Modernization Act.”

“New York has made some progress, especially through the Preferred Source Modernization Act, but there are still regulatory and statutory challenges that prevent the state from realizing its Employment First goals and expanding employment for people with disabilities,” the Rockefeller report says.

# # #

About New York State Industries for the Disabled, Inc. (NYSID)

NYSID is a 501(c)(3) with the mission of “advancing employment and other opportunities for individuals with disabilities.” Established in 1975, NYSID facilitates employment opportunities for nearly 6,000 New Yorkers with disabilities annually through New York’s Preferred Source Program and in the private sector. NYSID’s community rehabilitation member agencies and corporate partners are located throughout the state, providing jobs in the community and in production facilities. For more information, visit www.nysid.org.

About the New York State Alliance for Inclusion and Innovation

The NY Alliance is a statewide association representing nearly 150 not-for-profit provider agencies serving people with disabilities. The NY Alliance envisions a society where people with disabilities are contributing citizens with equal rights and the ability to live full, productive and meaningful lives. For more information, visit https://nyalliance.org/.