Download the financing brief to learn more about the funding landscape for IECMH and child welfare.
Financing Infant Mental Health: A Roadmap for Child Welfare Systems
Key Takeaways
- IECMH services are critical for strengthening families and preventing deeper child welfare involvement.
- 13 federal funding streams (e.g., Medicaid, Title IV-E) can support IECMH services, but accessing them requires strategic planning.
- Federal spending on babies and toddlers is just 1.52% of the overall budget, highlighting the need to maximize limited resources.
- State matching requirements can be a hurdle but are essential for leveraging federal funds.
- Funding maps can help states identify gaps, pool resources, and strategize investments.
A new resource from Safe Babies, a program of ZERO TO THREE™, provides a roadmap for leveraging federal funding to support infant and early childhood mental health (IECMH) services. Foundations of Well-being: Financing Infant and Early Childhood Mental Health Services and Supports for Families in Child Welfare emphasizes the importance of coordinated efforts to ensure families involved in or at risk of child welfare have access to high-quality mental health services.
Why it matters
- Babies’ mental health is built in relationships. IECMH services strengthen bonds between young children and caregivers, helping families overcome hardships and prevent deeper child welfare system involvement.
- Yet federal spending on babies and toddlers remains low, just 1.5% of the overall budget in 2024, leaving a critical gap in access to care.
What it means
- The opportunity: At least 13 federal funding streams, from Medicaid to Title IV-E, can cover IECMH services if states plan strategically. Medicaid is the largest lever since nearly all children in child welfare are eligible.
- The challenge: Matching requirements, fragmented systems, and limited resources make coordination essential.
- The path forward: States like New Mexico show what’s possible, sustaining Child-Parent Psychotherapy through a blend of Medicaid and state dollars.
The bottom line
With intentional planning and cross-system collaboration, states can use existing funds to expand IECMH services, from screenings and home visiting to treatment and crisis nurseries. Doing so strengthens families, prevents removals, and transforms outcomes for babies in child welfare.
Lisa McGarrie,
Lead Policy and Finance Specialist, Safe Babies
This brief fills a crucial gap in showing how funding can be harnessed to deliver the mental health services babies need in the child welfare system. It belongs on the reading list of every child welfare and early childhood leader ready to drive innovation.
