The federal government launched a criminal investigation into whether fraud was committed at the National Center for Employment of the Disabled, a Texas nonprofit organization. The organization employs about 4,000 people who make military apparel.

The group has received $1.2 million in government contracts in recent years through its participation in the Javits-Wagner-O'Day program. This program seeks to reward no-bid government contracts to groups that employ the blind and severely disabled.

The federal panel that oversees the award of the contracts has launched a review of the group's eligibility after a study showed that the group fell far short of the requirement that 75% of labor be performed by those with severe disabilities. Findings showed that that NCED's workforce was only about 7.8% severely disabled. The committee is considering barring the group from participating in any future contracts.