Finance
Information for administrators of state early childhood programs for financing services for infants, toddlers, and preschoolers with special needs.
An adequate, stable funding base is required to insure effective and responsive systems of services and supports for young children with or at-risk of disabilities and their families. Resources from the national, state, and community levels must be combined to support these systems of early intervention and preschool services. Careful attention needs to be given when assembling or modifying such an interagency funding system.
System planners and program administrators face challenges in understanding and using these resources, combining them for the benefit of children and families, and fully funding their systems of services and supports. The NECTAC Finance topical page provides information on funding resources, tools to aid in combining as many of these resources as necessary in states and communities, and the specific financing provisions in IDEA, Parts B and C, legislation and regulations.
We will continue to add information to this site to enable program managers and family advocates to meet the individualized needs of young children and their families. NECTAC welcomes your feedback and suggestions to make the site responsive to your needs.
Part C Finance Regulations
Section 619 Finance Regulations
State Financing Provisions and Insurance Documents
Under 34 CFR §303.520(3)(b), a state may use the private insurance of a parent to pay for services under this part only if the parent provides consent to do so in accordance with 34 CFR § 303.7 (parental consent), 303.420(a)(3) (consent prior to provision of services) and 303.420(a)(4) (use of private insurance).
It is important to remember that under 34 CFR §303.521(c) if a State has in effect a State law requiring the provision of a free appropriate public education (FAPE) to children with disabilities from birth, the State may not charge parents for any services (e.g., physical or occupational therapy) that are part of FAPE for that infant or toddler and family.
Some states have enacted legislation, regulations, and policies concerning aspects of financing their Early Intervention programs. This section will provide examples of specific financing provisions.
- State Insurance Legislation
Colorado, Connecticut, Indiana, Massachusetts, New Hampshire, New Mexico, New York, Rhode Island, Virginia - Health Insurance Legislation for Autism Spectrum Disorders (ASD)
Several states have enacted insurance legislation specific to autism spectrum disorders or have modified existing legislation to further define neurological disorders to include ASD for the purpose of covering needed services for eligible children.
Alaska, Connecticut, Georgia, Indiana, Kentucky, Massachusetts, Missouri, Illinois, New Jersey, New Mexico, North Carolina, Texas, Virginia, Utah, Wisconsin
Finance Systems
- A Framework for Developing and Sustaining a Part C Finance
System (2007)
(PDF: 173kb) - Medicaid Waivers
- Centralized Billing
- Indiana
- Illinois
- Kentucky
- Louisiana
- Missouri
- West Virginia
- Financial Case Management
Funding Sources
These links will take you to Funding Early Childhood Mental Health Services and Supports which was created by the Georgetown University Child Development Center. The NECTAC Matrix aligns with that provided in the Georgetown document but is more specific to Part C.- Funding Early Childhood Mental Health Services & Supports (2001)
- NECTAC Matrix of Services and Funding Resources for Early
Intervention Services Under Part C OF IDEA (2002)
(PDF: 121kb) - Medicaid;
Title XIX
(PDF: 184kb) - Medicaid;
EPSDT
(PDF: 184kb) - SCHIP
(PDF: 184kb) - Title V
(PDF: 184kb) - TANF
(PDF: 184kb)
