This report describes states' use of federal maternal and child health services (MCH) block grant funds to support their children's medical services (CMS) programs. Program officials and appropriate documents in 10 states were reviewed. Although all states allocated MCH funds to CMS programs, they did not typically designate the funds for particular programs. In 1987, the 10 states spent a total of $242 million for CMS programs, of which 11 percent came from MCH grants. Program coverage included many medical services, such as physician visits and medications, and some support services, such as counseling and case management. An estimated 261,000 children were served in 1987. Program eligibility requirements typically involved residency, age, income, and medical condition. Appendixes to this report include a copy of a letter from the Department of Health and Human Services and a list of major contributors to the report. (BC)