Title 20EducationRelease 119-73

§1440 Payor of last resort

Title 20 › Chapter CHAPTER 33— - EDUCATION OF INDIVIDUALS WITH DISABILITIES › Subchapter SUBCHAPTER III— - INFANTS AND TODDLERS WITH DISABILITIES › § 1440

Last updated Apr 6, 2026|Official source

Summary

Money given for early intervention must not be used to pay for services that another public or private program would have paid for, including Defense medical programs. If needed to avoid a delay in getting early help for an infant, toddler, or family, the money can be used temporarily to pay a provider while waiting to be paid back by the agency that is really responsible. The state's top official or someone they choose must make sure each public agency has an agreement with the lead agency about who provides services and who pays for them. The agreement must follow other federal rules and must keep services going during any dispute. If a non-education public agency does not provide or pay for services, the local education agency or the state agency must step in and can be repaid by that public agency under the agreement. These rules can be met by state law, signed agency agreements, or other written methods approved during the state's application review. Nothing here lets a state cut or change medical help or eligibility under Title V (maternal and child health) or Title XIX (Medicaid for infants and toddlers with disabilities).

Full Legal Text

Title 20, §1440

Education — Source: USLM XML via OLRC

(a)Funds provided under section 1443 of this title may not be used to satisfy a financial commitment for services that would have been paid for from another public or private source, including any medical program administered by the Secretary of Defense, but for the enactment of this subchapter, except that whenever considered necessary to prevent a delay in the receipt of appropriate early intervention services by an infant, toddler, or family in a timely fashion, funds provided under section 1443 of this title may be used to pay the provider of services pending reimbursement from the agency that has ultimate responsibility for the payment.
(b)(1)(A)The Chief Executive Officer of a State or designee of the officer shall ensure that an interagency agreement or other mechanism for interagency coordination is in effect between each public agency and the designated lead agency, in order to ensure—
(i)the provision of, and financial responsibility for, services provided under this subchapter; and
(ii)such services are consistent with the requirements of section 1435 of this title and the State’s application pursuant to section 1437 of this title, including the provision of such services during the pendency of any such dispute.
(B)The Chief Executive Officer of a State or designee of the officer shall ensure that the terms and conditions of such agreement or mechanism are consistent with the terms and conditions of the State’s agreement or mechanism under section 1412(a)(12) of this title, where appropriate.
(2)(A)If a public agency other than an educational agency fails to provide or pay for the services pursuant to an agreement required under paragraph (1), the local educational agency or State agency (as determined by the Chief Executive Officer or designee) shall provide or pay for the provision of such services to the child.
(B)Such local educational agency or State agency is authorized to claim reimbursement for the services from the public agency that failed to provide or pay for such services and such public agency shall reimburse the local educational agency or State agency pursuant to the terms of the interagency agreement or other mechanism required under paragraph (1).
(3)The requirements of paragraph (1) may be met through—
(A)State statute or regulation;
(B)signed agreements between respective agency officials that clearly identify the responsibilities of each agency relating to the provision of services; or
(C)other appropriate written methods as determined by the Chief Executive Officer of the State or designee of the officer and approved by the Secretary through the review and approval of the State’s application pursuant to section 1437 of this title.
(c)Nothing in this subchapter shall be construed to permit the State to reduce medical or other assistance available or to alter eligibility under title V of the Social Security Act [42 U.S.C. 701 et seq.] (relating to maternal and child health) or title XIX of the Social Security Act [42 U.S.C. 1396 et seq.] (relating to medicaid for infants or toddlers with disabilities) within the State.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Social Security Act, referred to in subsec. (c), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Titles V and XIX of the Act are classified generally to subchapters V (§ 701 et seq.) and XIX (§ 1396 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Prior Provisions

A prior section 1440, Pub. L. 91–230, title VI, § 640, as added Pub. L. 105–17, title I, § 101, June 4, 1997, 111 Stat. 116, related to the payor of last resort, prior to the general amendment of subchapters I to IV of this chapter by Pub. L. 108–446.

Reference

Citations & Metadata

Citation

20 U.S.C. § 1440

Title 20Education

Last Updated

Apr 6, 2026

Release point: 119-73