On December 28, 2007, CMS published a final rule regarding Medicaid payment for the costs of certain school-based administrative and transportation activities (see ). Specifically, under the final rule, federal Medicaid payments will no longer be available for administrative activities performed by school employees or contractors, or anyone under the control of a public or private educational institution, and for transportation from home to school. The final rule does not affect federal Medicaid reimbursement for direct medical services provided by schools for children on Medicaid such as physical therapy, speech therapy or transportation to medical services during the school day. While the rule is effective February 26, 2008, legislation recently signed by the President blocks any regulations tightening Medicaid policies for rehabilitation services or school-based administration and school-based transportation until June 30, 2008 (see related item below).