Commodified Children

increasingly criticized as a "poverty industrial complex" where vulnerable children are processed through revenue-driven operations. Leading the private sector in this space is Maximus, Inc., a $5 billion government contractor that has faced significant scrutiny for treating foster children as "revenue generating mechanisms". 

Cato Institute

 +3

Maximus and the "Monetization" of Vulnerable Children

While Maximus provides administrative services for various state programs, its role in foster care often involves maximizing federal reimbursements rather than direct care: 

The "Revenue Generating" Label: Internal reports and assessments linked to Maximus have described foster children as a "revenue generating mechanism".

Diverting Children's Benefits: In states like Wisconsin, Maximus has been contracted to search for foster children who are disabled or have deceased parents. Critics, including scholars like Daniel Hatcher, argue this is done so the state can seize the children's Social Security and survivor benefits to bolster state revenue, rather than for the child's benefit.

Fraud and Settlements: In 2007, Maximus paid $30.5 million to settle a federal investigation into allegations that it helped the District of Columbia submit fraudulent Medicaid claims for foster care services that were never provided. 

Wisconsin Examiner

 +5

The Elite Academic Connection: Profits vs. Policy

The connection to elite institutions like Harvard is not just historical; it is embedded in the current advisory and research landscape:

Influence on Policy: Scholarly advisors from elite institutions often shape federal policies—like the Adoption and Safe Families Act (ASFA)—that prioritize the "commodification" of children through performance-based contracts and privatization.

A "Legacy of Slavery" Paradox: While Harvard produces reports acknowledging its historical ties to the slave trade and sugar plantations, critics point out that the institutional frameworks it helped build continue to thrive through federal contracts and private interests that mirror that same extraction.

Lobbying Power: Companies like Maximus actively lobby to maintain and expand these outsourcing models. In 2011, Maximus spent over $114,000 lobbying for a contract in Wisconsin that allowed it to decide which children met criteria for federal reimbursement. 

PR Watch

 +4

Other Major Private Players

Beyond Maximus, large for-profit and non-profit organizations dominate the foster care landscape through massive state contracts:

National Mentor Holdings (The MENTOR Network): A giant corporation that has turned foster care into a "cash cow". A Senate Finance Committee investigation found its child death rates were 42% higher than the national average.

KVC Health Systems: A major private provider that has managed Kansas’s privatized child welfare services since 1996.

Regional Contractors: In 2025, states like Maryland and Texas continue to award multi-hundred-million-dollar contracts to private agencies to expand "bed capacity," which critics argue prioritizes institutional stays over family reunification. 

Cato Institute

 +4

The "railroad transportation" of the past has evolved into a digital and financial "railroad" where data mining and predictive analytics are used to "score" and "triage" children for maximum profit. 

University of San Diego

Would you like to examine the specific legislative bills currently being lobbied for by these companies that could further expand for-profit foster care?