The paper reviews the Reagan administration's efforts to convert human services financing to a block grant approach and describes the response of the United Cerebral Palsy Association (UCPA). The Budget Reconciliation Act and its impact on funding for such services as developmental disabilities, vocational rehabilitation, and Title XX Social Services is analyzed. The state/local government perspective is presented and the point is made that states must raise taxes or reduce services, or both. The predicament of charitable organizations, now faced with serving more people with less funds, is also examined. Senate Bill 807, which was designed to coordinate the management of federal assistance programs and which, the author asserts, could jeopardize categorical programs for the disabled and undermine federal assurance of civil rights protections, is described. The author suggests that block grants do not assure budget savings. Results of questionnaires completed by UCPA affiliates are summarized, including that affiliates favored categorical over block grant funding and recommended that UCPA continue to advocate federally prescribed programmatic criteria in government programs for the disabled. (CL)