20 U.S.C. § 1440

Payor of last resort

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(a) Nonsubstitution

Funds provided under section 1443 of this title may not be used to satisfy a financial commitment for services that would have been paid for from another public or private source, including any medical program administered by the Secretary of Defense, but for the enactment of this subchapter, except that whenever considered necessary to prevent a delay in the receipt of appropriate early intervention services by an infant, toddler, or family in a timely fashion, funds provided under section 1443 of this title may be used to pay the provider of services pending reimbursement from the agency that has ultimate responsibility for the payment.

(b) Obligations related to and methods of ensuring services(1) Establishing financial responsibility for services(A) In generalThe Chief Executive Officer of a State or designee of the officer shall ensure that an interagency agreement or other mechanism for interagency coordination is in effect between each public agency and the designated lead agency, in order to ensure—(i) the provision of, and financial responsibility for, services provided under this subchapter; and(ii) such services are consistent with the requirements of section 1435 of this title and the State’s application pursuant to section 1437 of this title, including the provision of such services during the pendency of any such dispute.(B) Consistency between agreements or mechanisms under subchapter II

The Chief Executive Officer of a State or designee of the officer shall ensure that the terms and conditions of such agreement or mechanism are consistent with the terms and conditions of the State’s agreement or mechanism under section 1412(a)(12) of this title, where appropriate.

(2) Reimbursement for services by public agency(A) In general

If a public agency other than an educational agency fails to provide or pay for the services pursuant to an agreement required under paragraph (1), the local educational agency or State agency (as determined by the Chief Executive Officer or designee) shall provide or pay for the provision of such services to the child.

(B) Reimbursement

Such local educational agency or State agency is authorized to claim reimbursement for the services from the public agency that failed to provide or pay for such services and such public agency shall reimburse the local educational agency or State agency pursuant to the terms of the interagency agreement or other mechanism required under paragraph (1).

(3) Special ruleThe requirements of paragraph (1) may be met through—(A) State statute or regulation;(B) signed agreements between respective agency officials that clearly identify the responsibilities of each agency relating to the provision of services; or(C) other appropriate written methods as determined by the Chief Executive Officer of the State or designee of the officer and approved by the Secretary through the review and approval of the State’s application pursuant to section 1437 of this title.(c) Reduction of other benefits

Nothing in this subchapter shall be construed to permit the State to reduce medical or other assistance available or to alter eligibility under title V of the Social Security Act [42 U.S.C. 701 et seq.] (relating to maternal and child health) or title XIX of the Social Security Act [42 U.S.C. 1396 et seq.] (relating to medicaid for infants or toddlers with disabilities) within the State.

(Pub. L. 91–230, title VI, § 640, as added Pub. L. 108–446, title I, § 101, Dec. 3, 2004, 118 Stat. 2757.)Editorial NotesReferences in Text

The Social Security Act, referred to in subsec. (c), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Titles V and XIX of the Act are classified generally to subchapters V (§ 701 et seq.) and XIX (§ 1396 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Prior Provisions

A prior section 1440, Pub. L. 91–230, title VI, § 640, as added Pub. L. 105–17, title I, § 101, June 4, 1997, 111 Stat. 116, related to the payor of last resort, prior to the general amendment of subchapters I to IV of this chapter by Pub. L. 108–446.

Notes of Decisions

Cited in 13 cases (5 in the last 5 years), 2000–2025 · leading case: Melvin Phillips v. Sheriff of Cook Cnty., 828 F.3d 541 (7th Cir. 2016).

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Melvin Phillips v. Sheriff of Cook Cnty., 828 F.3d 541 (7th Cir. 2016). “For instance, when students brought a class action against a public school district, alleging that the district delayed or denied entry into individualized education programs (“IEPs”) in violation of the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. § 1440 et.…”

P.N., an Infant, Individually & by His Parent & Legal Guardian M.W. v. Clementon Bd. of Educ., 442 F.3d 848 (3rd Cir. 2006). “As noted above, however, the IDEA, 20 U.S.C. § 1440 , et seq., contains a specific provision authorizing an order for such fees as “part of the costs to the parents of a child with a disability who is the prevailing party.”

I.M. ex rel. C.C. v. Northampton Pub. Schs., 869 F. Supp. 2d 174 (D. Mass. 2012). “against the Northampton Public Schools (“NPS”) and the Bureau of Special Education Appeals (“BSEA”) challenging the BSEA’s finding that NPS provided him with a free appropriate public education pursuant to the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. §…”

A.S. v. Trumbull Bd. of Educ., 359 F. Supp. 2d 102 (D. Conn. 2005). “In this lawsuit brought under the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. § 1440 , et seq., Plaintiffs appeal from the decision of a due process hearing officer regarding the educational placement of their two minor children.”

Foote v. Albany Med. Ctr. Hosp., 71 A.D.3d 25 (N.Y. App. Div. 2009). “Similarly, IDEA purports to be a payor of last resort (see 20 USC § 1440 [a]). While the services provided under IDEA may not give rise to a lien (see Andree ex rel.”

DH v. Scranton Sch. Dist. (M.D. Penn. 2025). · cites it 2× “§ 1983 , Violation of IDEA, 20 U.S.C. § 1440 , et seq., and the Fourteenth Amendment against all Defendants; (2) Count II – 42 U.”

Melvin Phillips v. Sheriff of Cook Cnty. (7th Cir. 2016). “For instance, when students brought a class action against a pub‐ lic school district, alleging that the district delayed or denied entry into individualized education programs (“IEPs”) in vi‐ olation of the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. § 1440…”

R.B v. Academy Dist. 20 (D. Colo. 2021). “) Defendant argues, specifically, that Plaintiff, by settling his claims at the administrative level prior to the completion of a due process hearing, failed to exhaust his administrative remedies under the Individuals with Disabilities Act [“IDEA”], 20 U.S.C. §§ 1440 et seq.,…”

Rogers v. Pocono Mountain East High Sch. (M.D. Penn. 2022). “Rogers’s complaint raises nine state and federal claims related to alleged constitutional violations by Defendants: (1) Count I – Violation of ADA against all Defendants; (2) Count II – Violation of IDEA, 20 U.S.C. § 1440 , et seq., against all Defendants; (3) Count III – 42 U.”

Larach Cohen v. Aviles-Ramos (S.D.N.Y. 2025). “20 U.S.C. § 1440 et. seg. This information is essential for a full understanding and assessment of the merits of this action.”

Jhuca (S.D.N.Y. 2025). “20 U.S.C. § 1440 et seq. This information is vital for a thorough understanding and assessment of the merits of this case.”

Jud. Complaint, In Re:, 203 F.3d 1293 (11th Cir. 2000). · cites it 2× “HODGES, Senior District Judge: This appeal involves the individuals with Disabilities Education Act (the IDEA), 20 USC § 1440 et seq.1 The court is required to interpret one of the provisions of the Act that has been the subject of attention by several other circuits, but not…”

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