20 U.S.C. § 1440 — Payor of last resort

(a) Funds under section 1443 may not pay a commitment for services that another public or private source would have paid, including a Defense Department medical program, except that they may temporarily pay the provider when necessary to prevent a timely early-intervention service delay for an infant, toddler, or family, pending reimbursement by the agency ultimately responsible. (b)(1)(A) The State chief executive or designee must ensure an interagency agreement or other coordination mechanism between every public agency and the designated lead agency. It must ensure both delivery and financial responsibility for services under this subchapter, consistent with section 1435 and the State’s section 1437 application, including services while a dispute is pending. (B) The terms must, where appropriate, match the State’s section 1412(a)(12) agreement or mechanism. (2)(A) If a noneducational public agency fails to provide or pay, the local educational agency or State agency chosen by the chief executive or designee must provide or pay for the child’s services. (B) That agency may seek reimbursement, and the failing agency must reimburse it under the interagency agreement or mechanism. (3) The requirement may be met by State law or regulation, signed agency-official agreements clearly assigning duties, or another written method chosen by the chief executive or designee and approved by the Secretary through review of the State application. (c) This subchapter does not allow a State to reduce medical or other help available under title V of the Social Security Act or change eligibility under title XIX for infants or toddlers with disabilities.