This policy analysis examines how states are implementing the substantially changed requirements relating to the distribution of federal IDEA (Individuals with Disabilities Education Act) Part B funds (Sections 611 and 619) as set forth in regulations issued in 1999. Interviews were conducted with nine state education agencies (SEAs) on the effect of these IDEA provisions. First, the paper provides background information on the current funding formula used to distribute Section 611 funds from the federal level to the state level. Next, the interview and state selection process is reviewed. Then the paper presents the interview findings along with descriptions of the relevant IDEA provisions, including recommendations for changes in the IDEA fiscal provisions. The final section includes a brief summary of the findings. Many references to the IDEA regulations are included, some in the text and some in the six appendices, which also provide the project's interview protocol. (DB)