In January 2004, the Fund launched the second phase of the Assuring Better Child Health and Development initiative (ABCD II) to help states promote the healthy mental development of low-income children under age 5. As Fund support of the states concludes this year, Medicaid agencies in California, Illinois, Iowa, Minnesota, and Utah are well on their way to ensuring that: young children at risk of developmental or behavioral delay are identified in primary pediatric settings and referred to specialists; parents at risk of depression are referred to mental health professionals; state Medicaid policies are designed to promote standardized screening and referral to follow-up services; and health care professionals are trained to provide higher-quality preventive pediatric care. In the year ahead, the National Academy for State Health Policy (NASHP) will: 1) provide technical assistance to the states to help them achieve success; 2) distill and synthesize lessons learned through publications, national meetings, and the NASHP Web site; and 3) disseminate project results and tools to state policymakers, health care leaders, and pediatric clinicians.