Funding for community mental health and mental retardation programs is provided from a variety of federal, state, local and private sources. The primary sources of funding include Commonwealth grants made pursuant to the 1966 Act, grants made by the Commonwealth from funds provided by the Federal Drug Abuse, Alcoholism and Mental Health Block Grant, Social Services Block Grant, Medical Assistance and Medicaid, county appropriations, private insurance reimbursement and client contributions to the cost of services.

Neither the state nor a county is required to spend public funds under the 1966 Act until a mentally disabled person has exhausted benefits under all other existing private, public, local, state or federal programs. In addition, the 1966 Act requires service providers and counties to collect the costs of care and services provided from persons with mental disability and from persons owing a duty of support to these individuals to extent they are financially able to pay for services. The Department of Public Welfare has adopted regulations defining client liabilities for mental health and mental retardation services and has set forth billing and collection procedures.