Congress may throw wrench in Texas privatization plan

Source: By Jason Embry and Corrie MacLaggan, AMERICAN-STATESMAN, Monday, February 04, 2008

In a direct response to problems in Texas, Congress is considering new limits on the role that private companies can play in states’ public assistance programs. A provision in a major farm bill approved by the U.S. House would bar states from allowing employees of private firms to interact with people who are applying for food stamps or to decide someone’s eligibility for the program. The measure could force Texas to rework its plans to privatize food stamp enrollment.

……. In 2007, Texas canceled what was originally a five-year, $899 million contract with Accenture LLP to run call centers enrolling people in services. But the state did not abandon its plans for private call centers.