This paper describes funding mechanisms used in six states to implement early intervention services under Public Law 99-457, Part H, of the Education of the Handicapped Act Amendments (1986). An introduction reviews surveys of state progress in implementing the law's financial provisions. The six case studies present examples of successful implementation practices and are based on site visits, phone interviews, and examination of state documents. A comparison is made of use of six funding sources (e.g., Medicaid and private insurance) and the reliance, by most states, on only one or two funding sources is noted. The variety of funding approaches used are briefly described and include: unit rate financing; contracting for services; state core financing; local funding initiatives; formal and informal interagency agreements; and local/state coordination. Three recommendations are made: (1) states should concentrate financing efforts on a small number of sources; (2) state government sources of funding must be accessed to develop an adequate financing plan; and (3) states must invest substantial resources in the form of staff commitment to develop a successful financing plan for Part H services. Includes 4 references. (DB)