Funding difficulties encountered by states in complying with early intervention service requirements of Part H of the Education of the Handicapped Act Amendments (1986) suggest the need for a variety of options to ensure successful long-term implementation. The advantages and disadvantages of three options are detailed: (1) fund all Part H services under Medicaid with no family income restrictions; (2) earmark portions of each major piece of federal legislation affecting children to assign funds for Part H services and increase appropriations to cover the earmarked portions; and (3) transform Part H into a new funding entitlement for infants and toddlers with disabilities and their families. Includes five references. (DB)