Billions Are Spent On IDD Services Annually. Where Does It All Go?

A direct support worker, center, steps into the shoes of Keith Conley as his brother Kristopher navigates their home in Reynoldsburg, Ohio. The twin brothers have severe autism, require 24-hour care and have had a hard time finding quality, reliable aides to help them. (Courtney Hergesheimer/The Columbus Dispatch/TNS)

In 2021 alone, the federal government spent $80.6 billion to support people with intellectual and developmental disabilities. A new report decomposes where it went.

Researchers at the University of Kansas analyzed how funding was allocated to support people with developmental disabilities during fiscal year 2021, the most recent year with complete figures. The work is part of the State of the States on Intellectual and Developmental Disabilities project, which has been tracking federal funding in this area for more than 40 years.

Spending on the estimated 7.57 million Americans with developmental disabilities went to everything from assisted housing to family support, personal assistance and supported employment, accounting for about 0.1% of the government’s $6.8 trillion budget for that year.

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The bulk of that — 87 percent — went to services provided through Medicaid, with $73.6 billion going to community living and just $7 billion to institutions, the report found. That divide has become increasingly pronounced in the decades since the 1980s, the report shows.

“Investments in intellectual and developmental disabilities services and supports across the country are a measure of our awareness and commitment to the disability community,” said Shea Tanis, a research associate professor at KU’s Center for Developmental Disabilities and director of the State of the States project. “It demonstrates our expectations for full participation, equal opportunity, economic self-sufficiency and independent living outlined in the Americans with Disabilities Act.”

The analysis shows that $9.1 billion was allocated to assisted housing in 2021, while $9 billion was allocated to family support, $4.66 billion to personal assistance, and $860 million to supported employment.

Total government spending on supports and services for people with developmental disabilities varied substantially by state, the report said, accounting for less than 1 percent to as much as 6 percent of state budgets.

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