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Transforming the poverty industry

When governments place maximizing revenue over serving those in need, the vulnerable are harmed. And when the vulnerable are harmed, so are we all.

Published:
DanielHatchercropped.jpg
DanielHatchercropped.jpg

Headquarters of the US Department of Health and Human Services, Washington DC. Credit: Wikimedia/Matthew G. Bisanz, CC BY-SA 3.0.

In an effort to shore-up its budget, New Jersey is taking federal government assistance away from school children from poor families. The state has hired a private contractor called the Public Consulting Group to access more school-based federal Medicaid funds. This money is intended to help schools serve special education needs more effectively, but New Jersey has diverted over 80 percent of the funds to its general coffers for other uses—effectively taking tens of millions of dollars from school children every year. Meanwhile, in the face of insufficient funding, schools in the state have resorted to selling ads on school buses.