Directed to the state lead agency directors, the memorandum from the Office of Special Education Programs answers questions concerning implementation of Part H of the EHA, Education of the Handicapped Act, the Early Intervention Program for Infants and Toddlers with Handicaps. The following questions are addressed: (1) Can a child who is counted under the Chapter 1--Handicapped Program (commonly known as P.L. 89-313) also benefit from Part H funds? (2) If a state agency uses 89-313 funds to provide early intervention services to infants and toddlers, may the agency charge parents for the services if state law establishes a sliding fee schedule? (3) Since Part H and Part B both include "child find" and evaluation provisions, can a state charge for these activities? (4) Can funds under the new Preschool Grants program (Section 619 of the EHA, as amended by P.L. 99-457) be used for services to infants and toddlers? (5) Can carryover funds under the old Preschool Incentive Grant program (Section 619 of the EHA, as amended by P.L. 98-199) continue to be used for services to children aged birth through 2? (6) Can Part H funds be used to pay for specific services that were previously provided under the old Preschool Incentive Grant program? (7) Can a state use its Part B funds to pay for services to handicapped children aged birth through 2? (8) By what data must states spend their first year funds under Part H? (9) Can Part H funds be used after the grant period ends--for either services or equipment? (10) What state agency is responsible for providing data required under Part H and Part B (Section 618) of the EHA concerning infants and toddlers? (11) How many members can be on the State Interagency Coordinating Council? (DB)