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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

States and Privatization of Food Stamp Program

Feds to states: Don’t privatize food stamps, By Corrie MacLaggan, December 1, 2009, Austin American-Statesman: “Six years after Texas embarked on an ambitious social services outsourcing project that hit major problems, the federal agency in charge of food stamps is warning states against such efforts. ‘These projects encountered severe problems in meeting critical performance standards and many eligible (food stamp) applicants have suffered as a result,’ says a Nov. 20 letter from the U.S. Department of Agriculture to the states. ‘We do not support furtherance of such projects, and believe that they put public funds and our clientele at risk.’ The warning comes as the food stamp program is experiencing a recession-related surge across the country – and as Texas is negotiating a new contract with a private company that is already handling some aspects of enrollment. State officials said they don’t expect the contract to be affected. The message from federal officials to the states: We know these are tough times, but privatization isn’t the answer…”