The Trump administration’s broader efforts to cut the size and budget of the federal government might put a lot of financial strain on a program that helps young children with developmental delays and their families.
Congress will be considering proposals to reduce annual allocations and possibly Medicaid payments, which support early intervention services under the Individuals with Disabilities Education Act, even though no specific cuts to the Part C program have been announced as of yet.
According to Maureen Greer, executive director of the IDEA Infant and Toddler Coordinators Association, a professional association of Part C state coordinators, “it’s a troubling time — both at the federal level and at the state level — because the decisions that are being made at the federal level have tremendous ramifications at the state level as well.”
Infants, toddlers, and their families get IDEA Part C services, also referred to as early intervention, in the places that the child is most accustomed to, such as their home or daycare.
Communication, physical, and social/emotional interventions are examples of services. Support is also given to parents and other caregivers to promote their infants’ growth.
In 2023, 462,847 children aged 2 and under were serviced through the Part C program.
According to a research by The Advocacy Institute, a nonprofit organization dedicated to enhancing the lives of those with disabilities, it represents a 4.8% increase over 2022.
7.9 million children aged 3 to 21 were serviced by IDEA’s Part B program in 2023.
Because Part C is not permanently authorized by the federal government, states engage freely. According to Greer, all states are currently involved in the Part C program.
According to Greer, possible Medicaid cuts pose perhaps the greatest threat to Part C. According to research from Georgetown University’s McCourt School of Public Policy’s Center for Children and Families, federal and state Medicaid contributions accounted for $683 million in 2023, making them the third-largest source of revenue for Part C.
As of right now, Congress has no clear strategy to reduce Medicaid eligibility or reimbursements. However, Democratic lawmakers and proponents of public health benefits argue that Republican leaders’ attempts to substantially reduce government spending are likely targeted at Medicaid.
In February, House Speaker Mike Johnson declared that the Medicaid system is “hugely problematic” due to fraud, waste, and abuse. However, President Donald Trump has stated that he will oppose Medicaid benefit reductions.
Regardless of the precise suggestions, a smaller Medicaid system would “shift big, big costs to states,” according to Elisabeth Burak, a senior fellow at the Center for Children and Families.
The greatest funding source for Part C, $945 million in 2023, came from state general fund coffers, with state Part C allocations coming in second at $790 million. At $455 million, federal Part C money is the third largest contributor, after Medicaid.
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An ITCA financial study estimates that in 2023, the Part C program received about $4 billion in federal, state, and municipal funding.
A tool from the Education Law Center estimates the potential loss of federal assistance for each state based on a percentage cut. For instance, a halving of California’s Part C budget would result in a loss of $29 million and the loss of 493 jobs.
