Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22043Updated March 23, 2005Privatization and Welfare AdministrationJoe RichardsonDomestic Social Policy DivisionSummaryAll states use private companies to administer significant parts of the three majorfederal/state public assistance programs they are charged with operating: TemporaryAssistance for Needy Families (TANF), the Medicaid program, and the Food Stampprogram. These components include benefit delivery, work/training efforts forrecipients, social services and caseload management, and computer/automation services.However, federal laws covering these programs allow “privatization” of one importantactivity actual eligibility determinations in only one of the three, TANF. In theother two, states must use government workers to perform eligibility determinationtasks, unless a waiver is granted. And, even with TANF, only one state (Wisconsin)now uses private groups to administer all aspects of its program, including eligibilityjudgments.At issue is whether (and how) to extend authority to “privatize” eligibilitydeterminations to food stamps and Medicaid and the deg
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