Privatization of Welfare Services: Delegation by Commercial Contract
49 Pages Posted: 17 May 2006
Abstract
This article analyzes the privatization or outsourcing of government assistance programs (welfare) to for-profit contractors, which has become increasingly common. Privatization of welfare eligibility determinations is essentially a delegation of government power to private parties, and as such presents constitutional problems, under Due Process and the Nondelegation Doctrine. The contracts for such outsourcing arrangements are grouped into three categories, each of which presents unique pitfalls and conflicts of interest that harm the needy applicants for such programs.
Keywords: welfare reform, public law, administrative law, privatization, nondelegation, delegation, constitutional, due process, poverty, welfare services, government contracts, outsourcing
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