Step 3 of 5
Find your funding streams
Every funder has its own measures of success. Requests often get turned down because they don’t match the funder’s interests. Look for the streams whose goals fit the service you defined.
What you’ll do in this step
- Review the streams that match your answers.
- Add the ones you’ll pursue to your plan.
- Find out who administers each stream in your state and who’s eligible.
Your best matches
Answer 3 questions about your program and we’ll show the streams that fit. You can also browse all 14 below.
All 14 funding streams
Funding streams fall into five pathways. Open a pathway to see its streams.
Entitlements 2
Medicaid and CHIP carry a mandatory federal and state match.Medicaid
Medicaid brings a federal match for services tied to an eligible child.
How it works and who’s done it
How it pays for consultation
Medicaid is a source of funding in every state. It may require a diagnosis for the child or family member to draw down the funds.
- The federal match covers 50% to 77% of direct service costs and 50% of administrative costs.
- Direct billing has to tie to an eligible child. Dyadic therapy and group parenting are examples.
- Administrative claiming reimburses outreach, education, and provider training.
- States are increasingly letting child and family risk factors qualify a service without a formal diagnosis.
Who’s done it
Research indicates Michigan is the only state that includes consultation as a Medicaid covered service. Michigan identified its Child Care Expulsion Prevention program as a Medicaid-covered prevention and direct service model for children under six. Read how Michigan did it (opens in a new tab).
Colorado’s Senate Bill 23-174 (opens in a new tab) lets Medicaid cover limited behavioral health services for children with no diagnosis.
Watch for
Medicaid billing is generally for an individual member. Most consultation models encourage classroom- or program-level services. No state we’ve found has released information on its success or return on investment. There’s also no definitive list of states that waive a diagnosis because each state designs its own Medicaid program.
Find out four things before you commit:
- Whether your sites are equipped to bill Medicaid
- Whether your consultants meet the state’s provider qualifications
- How many of your cases are child-focused
- How many of those children are Medicaid eligible
Options to raise with your Medicaid office
- A state plan amendment that adds consultation to the services in your Medicaid plan
- A Section 1115 or Section 1915(b) waiver
- Administrative funds for infrastructure such as training
- Early and Periodic Screening, Diagnostic, and Treatment (EPSDT)
Who runs it
The Centers for Medicare & Medicaid Services runs it with your state Medicaid program.
Source: Financing Guidance (2016), pages 3, 10, 17, 18; Financing FAQ (2025), pages 2 and 3.
CHIP Health Services Initiatives
A Health Services Initiative funds program-level infrastructure without child-by-child billing.
How it works and who’s done it
How it pays for consultation
CHIP lets a state draw federal match under its 10% administrative cap for population-level child health initiatives. CHIP match rates are typically about 15% higher than standard Medicaid match rates. A Health Services Initiative allows grant-like funding without individual eligibility billing.
Who’s done it
In 2022, child advocates in California outlined how the state could use a CHIP Health Services Initiative to support consultation.
Formula and block grants 2
CCDF and Title V send formula grants to states.Child Care and Development Fund (CCDF)
CCDF quality funds can pay for consultation as an allowable quality activity.
How it works and who’s done it
What it is
This block grant gives states, territories, and tribes funds for child care subsidies for low-income families. It also pays for quality improvement activities and for training that helps providers support children’s social and emotional development and prevent expulsion and suspension.
How it pays for consultation
States and territories must allocate at least 9% of CCDF funding to quality improvement. Consultation is an explicitly allowable quality activity. States write consultation into their 3-year CCDF plans.
Who’s done it
Colorado’s Department of Early Childhood used CCDF quality funds to expand its consultation program statewide. Colorado and Arkansas have used Child Care and Development Block Grant funds to support consultation as a quality-building strategy in child care programs. Read the lessons from Arkansas’s Project PLAY (opens in a new tab).
Who runs it
The Administration for Children and Families runs it with state, territory, and tribal CCDF grantees.
Source: Financing Guidance (2016), pages 4, 12. Listed as a common stream in the Financing FAQ (2025), page 2.
Title V Maternal and Child Health Block Grant
Title V covers health care for pregnant women and for children with special health care needs.
How it works and who’s done it
What it is
This grant covers a range of health care activities for pregnant women and their children. It includes specific activities for children with special health care needs (including emotional, developmental, and behavioral issues) and for their families.
Who’s done it
Rhode Island drew on Child Care and Development Block Grant funds, Early Childhood Comprehensive Systems grant dollars, and Title V dollars to pay for programmatic consultation in child care.
Discretionary grants 1
Competitive federal grants suit pilots and evidence building.Federal grants
Time-limited competitive grants let you pilot a model and build evidence.
How it works and who’s done it
What it is
Competitive grants are awarded to state, local, and tribal governments and to community organizations. Three programs to know are Project LAUNCH, Preschool Development Grants Birth through Five, and the federal IECMH grant program.
How it pays for consultation
Use a grant as a testing ground before you scale. Grants are time-limited. They create the evidence base and program infrastructure you need to justify permanent funding. They offer an opportunity to build public awareness and support.
Our 2016 Financing Guidance describes three federal programs:
- Project LAUNCH (SAMHSA): mental health consultation in early care and education settings is one of its five strands of service.
- Early Childhood Comprehensive Systems (HRSA): its emphasis includes mitigating toxic stress and expanding developmental screening and referral.
- Health Center Program (HRSA): health care organizations funded under Section 330 of the Public Health Service Act may expand or establish mental health services that include consultation.
Who’s done it
Boone County Project LAUNCH integrated the Early Childhood Positive Behavioral Support (EC-PBS) program. Consultants with mental health expertise trained and coached child care providers across high-need rural and urban areas.
Watch for
Grants are short-term. It’s hard to sustain the work if you don’t discuss sustainability from the onset.
Source: Financing Guidance (2016), pages 11, 14, 16, 20.
State and local revenue 3
Statutes, general fund line items, and local taxes are the durable sources.State law
A statute gives consultation permanent legal standing and an ongoing platform for funding.
How it works and who’s done it
How it works
Codifying consultation in state statute creates a named program with a defined public purpose. It signals a public commitment that lasts beyond administrative cycles and short-term grants.
Who’s done it
- Connecticut embedded consultation in statute with dedicated line-item appropriations.
- Colorado integrated consultation into its Department of Early Childhood in statute (C.R.S. 26.5-3-701 et seq.). In 2020, HB20-1053 put into statute the program the state Department of Human Services had been supporting in prior years.
- California passed Assembly Bill 2698 in 2018. It increases the state reimbursement rate by 5% for each child receiving subsidized tuition in a classroom that uses mental health consultation.
Watch for
Once a program is in law, its flexibility is limited. Write the law so the foundational components are included and the components that need an individualized approach can flex.
State general funds
A line item in the state budget is the most flexible and durable source of support.
How it works and who’s done it
How it works
Many states use their general funds to support consultation. A legislative appropriation is unrestricted state revenue. It lets a state embed consultation in its Quality Rating and Improvement System and child care licensing.
Who’s done it
- Massachusetts: line item 3000-6075 rose from $3.5M in FY23 to $5.0M in FY24 and has been maintained since. The state works through 6 regional grantee organizations that serve all licensed early childhood programs.
- Colorado: the FY 2023-24 budget request included about $1.6M in General Fund mixed with federal dollars.
- Connecticut: in 2016, the Department of Children and Families was the primary funder of the statewide Early Childhood Consultation Partnership. The State Department of Education provided supplementary funding.
- Maryland: in 2016, the State Department of Education funded the statewide Early Childhood Mental Health Consultation Project through its Office of Child Care.
See how your state funds consultation.
Source: Financing Guidance (2016), page 4. Listed as a common stream in the Financing FAQ (2025), page 2.
Tax levies and ballot initiatives
Voter-approved local revenue is independent of federal policy changes.
How it works and who’s done it
How it works
Voters approve a property tax levy, a special tax district, or an excise tax dedicated to children’s services. Jurisdictions can pool resources across county lines.
Who’s done it
- St. Louis: the Community Children’s Services Fund property tax was approved in 2004. Prop R passed in November 2020 with 56% of the vote. It raised the rate and gave early childhood programs their first dedicated public funding stream.
- Miami-Dade County: a voter-approved property tax funds The Children’s Trust. The Trust supports the Jump Start consultation program run through the University of Miami Mailman Center.
- Colorado: HB19-1052 lets voters approve special tax districts that levy property or sales taxes dedicated to early childhood infrastructure. That infrastructure includes consultation.
- California: the Prop 10 tobacco tax funds county First 5 commissions. Those commissions support consultation and workforce development. Under Prop 1 and the Behavioral Health Services Act, counties can direct children’s behavioral health dollars toward consultation.
- Arizona: in 2016, Smart Support received its funding through First Things First. A voter-enacted tax on tobacco products funded First Things First.
Watch for
Public funds are often longer-term options. They can still be at risk when rules and regulations change.
Source: Financing FAQ (2025), page 2; Financing Guidance (2016), pages 4, 11, 27.
Philanthropy and foundations 1
Foundation grants are flexible seed money for pilots and infrastructure.Foundation and private grants
Foundation grants are flexible seed money for pilots, evaluation, and technology.
How it works and who’s done it
How it works
Foundation grants can be deployed quickly. They can fund pilots, technology builds, reflective supervision, and evaluation before public funding attaches. They might also provide the private matching dollars that a public grant application requires.
What an ask can look like
A foundation commitment supports a specialized mental health training series for all home visitors. Federal funds cover expert onsite support to home visitors every week.
Read the Funding Tip Sheet: Engaging Foundations (opens in a new tab).
Source: Financing FAQ (2025), page 2; Financing Guidance (2016), page 9.
More streams states use 5
These five appear in our Financing Guidance and our FAQ.Head Start and Early Head Start
Head Start funds can be spent on mental health consultation under the Head Start Act.
How it works and who’s done it
What it is
Head Start and Early Head Start promote school readiness for children from birth to age 5 and support pregnant women from low-income families. Their services cover cognitive development, health, mental health, and social and emotional well-being.
Early Head Start-Child Care Partnership and Expansion programs allow new or existing Early Head Start programs, including tribal programs, to partner with local childcare centers and family childcare providers who serve infants and toddlers from low-income families.
How it pays for consultation
Head Start and Early Head Start have required that mental health services include onsite mental health consultation. A rule proposed in August 2026 would eliminate the requirement for consultation at least once a month. Head Start funds can still legally be spent on consultation under the Head Start Act. See what the proposal shows about single-source risk.
Who runs it
The Office of Head Start runs it within the Administration for Children and Families.
Read the Head Start Performance Standards with a mental health focus (opens in a new tab).
Learn more: Early Head Start Programs (opens in a new tab) (HeadStart.gov)
Source: Financing Guidance (2016), page 15. Listed as a common stream in the Financing FAQ (2025), page 2.
Early Intervention (Part C)
Part C funds early intervention services for infants and toddlers with disabilities.
How it works and who’s done it
What it is
Part C of the Individuals with Disabilities Education Act is a federal grant program. It helps states operate a statewide program of early intervention services for infants and toddlers with disabilities from birth through age 2 and for their families. It’s one of the most common funding streams states use for consultation.
Ask your state
Which services are reimbursable through Part C for children with social and emotional delays?
Learn more: About IDEA (opens in a new tab) (U.S. Department of Education)
Source: Financing FAQ (2025), page 2.
Maternal, Infant, and Early Childhood Home Visiting (MIECHV)
Consultation can be incorporated into home visiting models.
How it works and who’s done it
What it is
The home visiting program aims to improve maternal and child health, children’s development, and the economic self-sufficiency of families through support and education.
How it pays for consultation
Consultation can be incorporated into home visiting models by training home visitors. The consultant works with home visitors one on one or in a group to provide regular reflective consultation. The larger goal is to improve the care offered to all children and families on their caseloads.
Who’s done it
Illinois created a leadership team across its early childhood and family support systems that includes MIECHV, the state board of education’s early childhood block grant, and the Child Care and Development Block Grant quality set-aside.
Who runs it
The Health Resources and Services Administration’s Maternal and Child Health Bureau runs it. The Administration for Children and Families runs the tribal program.
Learn more: Home Visiting (opens in a new tab) (Administration for Children and Families)
Source: Financing Guidance (2016), pages 6, 16. Listed as a common stream in the Financing FAQ (2025), page 2.
Human services and child welfare funding
States can move up to 30% of TANF into CCDF. CCDF can support consultation.
How it works and who’s done it
What it is
Human services and child welfare funding is one of the most common funding streams states use for consultation. It includes Temporary Assistance for Needy Families (TANF).
How it pays for consultation
TANF helps families in need achieve economic self-sufficiency. A state can reallocate up to 30% of its TANF funds to its Child Care and Development Fund. Consultation can be implemented and supported under that fund.
Who runs it
The Administration for Children and Families runs it.
Source: Financing FAQ (2025), page 2; Financing Guidance (2016), page 21.
State set-aside funds
Set-aside funds are flexible enough to pay for programmatic work.
How it works and who’s done it
How it pays for consultation
State set-aside funds offer flexibility to finance programmatic work. That work is often more difficult to fund than child-focused intervention.
Who’s done it
In 2016, Louisiana was using quality set-aside funds as another way to fund consultation. The state looked at consultation and coaching as two of its key quality improvement services.
Source: Financing Guidance (2016), page 10.
Federal program details come from our 2016 Financing Guidance (opens in a new tab). Its table lists 18 federal funding sources as of July 2016. Confirm who administers each stream and how it’s allocated in your state today.
Disclaimer
This guide points to funding strategies described in the Center’s Financing Guidance (2016) and Financing FAQ (2025) and to resources on this site. It does not determine eligibility for any funding stream. Requirements vary by state. The Guidance’s federal funding details are as of July 2016.
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1 of 1: Financial management
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