The fourth of nine documents on community based recreation for handicapped persons (EC 114 401-409) examines federal funding for special recreation. The first section reviews functions of assistance in the federal budget, scope of federal programs, and barriers to receiving funds. Three major problem areas (lack of funds for provision of local services, lack of Federal/State support programs and services, and lack of "purchase of service" status with health and rehabilitation agencies) are identified. Options for federal and federal-state support and funding are discussed, primary and secondary Federal and Federal-State programs are listed, and detailed program information is included from the Federal Assistance for Programs Service the Handicapped catalog. The report closes with information on funding and related resources. (CL)