In 1993, Project FORUM issued a report (Ahearn, 1993) that provided information on resources available to states and districts in accessing Medicaid reimbursements for services for students with disabilities, a relatively new source of funding at that time. It is now over 10 years since Medicaid funds were approved for use for special education services, and this document summarizes the current conditions and issues concerning the use of these funds. It begins by providing an overview of the Medicaid program, state requirements for accessing funds, and legislative changes that made it possible to access funds for providing services to students with special needs. Findings from the Center on Special Education Finance of state finance systems in 1999-2000 are presented and indicate there was significant growth in state recovery of Medicaid funds over the past 5 years. Billing was conducted by local education agencies or other parties in about two-thirds of responding states. The portion of reimbursements that states return to the local education agencies ranges from 15 to 100 percent. Additional information is presented for six states: Arizona, Connecticut, Delaware, Illinois, Washington, and Pennsylvania. A data sheet is included that shows level of Medicaid reimbursements for different states. (Contains 10 references.) (CR)