States’ Disability Funds Going Broke or Going Away

During the World War II era, many states created special disability funds to encourage businesses to hire wounded veterans. The funds paid the tab should a disabled soldier suffer a second, debilitating injury in a private-sector job.

Over the ensuing decades, those funds provided aid not to only veterans, but to thousands of other disabled workers.

Now as a new generation of wounded warriors returns from Iraq and Afghanistan, about 20 states have shut down their special disability funds because of rising costs. Other funds are teetering on insolvency.

Some veterans' advocates are concerned about the disappearance of the funds. But critics say the funds are no longer essential, because disabled workers have more legal protections than during the World War II era.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)