Federal regulations require that VR services be available across every part of a state, not just select regions — this is the "statewideness" requirement. States can request a waiver to concentrate additional or specialized services in specific local areas, but only if a local public agency covers the non-federal matching share for those services, typically through a cooperative agreement or interagency transfer of funds.
From a fiscal standpoint, this matters because a waiver of statewideness creates a distinct funding arrangement: the local agency's contribution counts toward the state's non-federal share obligation for that project, and the state VR agency remains responsible for approving and administering those services even though a local partner is funding part of them.
To request a waiver, the state agency must submit documentation through its State Plan describing the services and funding involved, along with written assurances that non-federal funds will be provided, that services are pre-approved by the state agency, and that standard administrative requirements — including order-of-selection rules — still apply in the waived areas.
Read the full guidance on Statewideness and Waiver of Statewideness