Improving Systems, Practices and Outcomes

Funding Sources for Assistive Technology

Research shows that funding is one of the biggest obstacles to the acquisition of assistive technology for children with disabilities (Judge, 20003). For this reason, it is important that parents and professionals work together collaboratively to explore all possible funding options. Some of these options are described below.

Individuals with Disabilities Education Act (IDEA)

Under Part B of IDEA, assistive technology must be provided by the school district at no cost to the family, if it is identified as part of a child's IEP WWW: (34CFR§ 300.105).

Under Part C, if assistive technology is identified as part of a child's IFSP, it must be provided at no cost WWW: (34CFR §303.13), unless subject to WWW: §303.520 and WWW: §303.521, where Federal or State law provides for a system of payments by families, including a schedule of sliding fees. Federal regulations also state that Part C programs are "payers of last resort" WWW: (34CFR §303.510), which means that Part C dollars may not be used to pay for early intervention services that would otherwise have been paid for from another public or private source. No eligible child can be denied an assistive technology device or service because of a family's inability to pay.

Private Medical Insurance

Many private insurance policies will pay for AT services and devices that are deemed medically necessary and prescribed by the child's physician. The use of medical insurance to fund assistive technology must be voluntary on the part of families and must not result in any cost to the family. Excerpts from the following policy letters clarify this subject.

OSEP Letters of Clarification

  1. Office of Special Education and Rehabilitation Services (OSERS) Policy Letter to Rose, 18 Individuals with Disabilities Educ. L. Rep. 531 (9/19/91)
    • The AT must be at no cost to parent or child.
    • The LEA may access Medicaid or private insurance
    • Use must be voluntary; cannot deny services if parent refuses to authorize use
    • Use of other insurance must not result in any cost to parent, such as: (a) copayment; (b) deductible; and (c) reduction of an upper limit on coverage.
  2. OSEP Policy Letter to Dr. O. Spann, 20 Individuals with Disabilities Educ. L. Rep. 627 (9/10/93); OSEP Policy Letter to W. Cohen, 19 Individuals with Disabilities Educ. L. Rep. 278 (7/9/92)
    • A parent's use of insurance is voluntary. If the parents refuse to consent to use of insurance, special education services cannot be denied.
  3. OSEP Policy Letter to Anonymous, 21 Individuals with Disabilities Educ. L. Rep. 1057 (8/9/94)
    • If parents agree to use family-owned AT to fulfill IEP, school is responsible for maintenance and repair if damaged on school bus or at school.
    • If the school did not use the family-owned device, it would be responsible for providing and maintaining a needed device.


WWW: Medicaid is a jointly funded Federal-State medical insurance program for certain individuals and families with low incomes and resources. Medically necessary assistive technology services are covered under Federal Medicaid law, and assistive technology devices that are considered durable medical equipment are often covered under a state's Medicaid regulations. Each state develops its own regulations, within broad national guidelines, and therefore the services covered may vary from state to state. Information about WWW: State Medicaid Programs is available online.


The WWW: Early and Periodic Screening, Diagnosis and Treatment (EPSDT) program is a required component of State Medicaid programs. This program requires states to provide eligible children, from birth through age 21, any service listed in the Medicaid Act, even if it is not included in that state's Medicaid plan. This can be an important source of funding for assistive technology that may not otherwise be covered by a state's regular Medicaid program.

State AT Loan Programs

Many states have loan programs funded under the WWW: Assistive Technology Act of 2004. These programs provide low interest loans with long repayment schedules for qualifying individuals. For more information, the Association of Assistive Technology Act Programs has a WWW: Contact List for State Assistive Technology Programs on its Web site.

Used Equipment

Assistive Technology (AT) reutilization is another option for obtaining assistive technology. WWW: The Pass It On Center: A National Collaboration for the Reutilization and Coordination of Assistive Technology maintains a national database of WWW: AT reuse programs in the U.S. to help more people with disabilities aquire reused AT across the country.

Other Funding Sources

Some organizations such as the Lions, Sertoma, Masons or Kiwanis Clubs, National Easter Seal Society, Muscular Dystrophy Association, United Way, United Cerebral Palsy Association and March of Dimes may provide funding for assistive technology. Financial Aid for Persons with Disabilities and Their Families, by Gail A. Schlachter and R. David Weber, is a directory that lists a large number of financial aid opportunities. Indexes for searching the directory by program title, sponsoring organization, geographic coverage, subject field, and application deadline are included. The directory is available at many public and academic libraries.

See also, our list of selected articles on AT and Funding Issues


  1. Hager, R. M. & Smith, D. (2003). The public school's special education system as an assistive technology funding source: The cutting edge. Buffalo, NY: Neighborhood Legal Services. Retrieved from PDF:
  2. Judge S. L. (2000). Accessing and funding assistive technology for young children with disabilities. Early Childhood Education Journal. (28)2, 125-131.
  • IDEAs that Work: Office of Special Education Programs, U.S. Department of Education

The ECTA Center is a program of the FPG Child Development Institute of the University of North Carolina at Chapel Hill, funded through cooperative agreement number H326P170001 from the Office of Special Education Programs, U.S. Department of Education. Opinions expressed herein do not necessarily represent the Department of Education's position or policy.

Project Officer: Julia Martin Eile     © 2012-2019 ECTA Center

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