DeLauro Statement On Suspension Of Indiana's Effort To Privatize Social Services

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DeLauro Statement On Suspension Of Indiana's Effort To Privatize Social Services

Congresswoman Rosa L. DeLauro (CT-3) issued the following statement after the U.S. Department of Agriculture announcement urging Indiana to suspend its effort to privatize its social services, including food stamps and Medicaid.

"I commend USDA and Under Secretary Nancy Johner for their oversight of the Indiana food stamp privatization process and for taking action to suspend it until the problems are resolved. Many of us in Congress expressed concerns about this contract since it was proposed, and I continue to believe that approving the project was the wrong thing to do.

"The Indiana experiment is simply more evidence of what can go wrong when you try to privatize the administration of critical social services. Private contractors ultimately are evaluated by their company shareholders and not by the food stamp recipients they are supposed to serve.

"The stories from Indiana about people losing benefits with no ability to appeal, and the difficulty many experienced in navigating the new system moved beyond the anecdotal to become a serious concern. These stories are especially troubling during difficult economic times when working families need food assistance.

"Before allowing the state to continue with its roll out, USDA must be completely satisfied that the state is in full compliance with federal law and standards, and that hungry families are not turned away from the food assistance Congress intends them to receive. A similar food stamp privatization experiment in Texas proved disastrous and USDA should consider terminating the Indiana contract if the state's plan is inadequate."

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