It is estimated that CMS will award 5 demonstration grants in FY 2004. Since the programs inception in FY 2001, three States and the District of Columbia have participated. CMS anticipates an increase to a total of 9 participants by the end of FY 2004. The demonstration grant funding enables grantees to provide Medicaid-equivalent services to employees with potentially severe disabilities. The demonstrations will measure the effect of providing early intervention in the form of Medicaid-equivalent benefits and services on the ability of participants to retain competitive employment.