Notice of Priority of Service Order

The Independent Living (IL) Program helps individuals with disabilities improve or maintain the ability to live independently in their home or community. When applicants to the IL Program are determined eligible, they are assigned a priority of service category. For the IL program, these categories include:

1. Priority #1: Services that provide for deinstitutionalization of individuals with significant disabilities
2. Priority #2: Services that prevent the institutionalization of at-risk individuals with significant disabilities 
3. Priority #3: Services that assist individuals with significant disabilities toward community living
4. Priority #4: Services that assist individuals with significant disabilities towards employment transition

When resources are not sufficient to deliver IL services to all eligible individuals, IL Program rules require implementation of a Priority of Service Order (PSO). During a PSO, priority of service categories are either open or closed. 

Eligible applicants that are assigned to open categories may receive the full range of IL services, while eligible applicants assigned to closed categories are placed on a waitlist. Please note that clients with an approved Independent Living Services Plan (ILSP) during the PSO will continue to participate in services listed on their ILSP. 

Why are we implementing a PSO?

Over time, demand for IL Program support has grown. At the same time, the costs of purchasing goods and services for IL clients are increasing. These factors mean that program spending is outpacing state-funded budget resources. 

To ensure adequate funding for clients with an approved Independent Living Services Plan (ILSP), the Division of Employment and Independence for People with Disabilities (EIPD) is implementing a PSO and is pausing purchase of all new and additional IL services effective Aug. 1, 2026. 

1. Priority #1: Closed 
2. Priority #2: Closed 
3. Priority #3: Closed
4. Priority #4: Closed

How does the PSO impact me?

The PSO has the biggest impact on people who are not currently receiving services from the IL Program.  

For clients with an approved ILSP: You will continue to receive IL Program services, but the pause in purchased IL services applies to any new or additional services not currently on your ILSP. During the service pause IL counselors will help identify other programs, resources and funding that may be available to support progress towards independent living goals.

For clients without an approved ILSP: 

• Individuals that have applied for and/or have been determined eligible: You will be assigned a priority of service category and placed on a waiting list. 
• For new applicants: You may still apply for the IL Program during the PSO. An IL counselor will process the application to determine if eligibility criteria are met. If determined eligible, you will be assigned to a priority of service category and placed on a waiting list.

IL staff will help identify other programs, resources and funding that may be available to address the needs of those on the waitlist. When additional resources become available, clients will receive services based on priority category. Higher priority categories will open first.

What happens next?

The implementation of a PSO and pause on purchased IL services have been carefully considered and are taken as a temporary, proactive measure to protect IL service quality and program stability.  All current clients have been notified of this PSO and purchased IL services pause. NCDHHS leadership is actively monitoring this situation to identify potential solutions. All news and updates about the pause on purchased IL services and status of PSO categories will be provided via this webpage. 

For more information, contact eipd.info@dhhs.nc.gov.