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The Source: Texas Among States That Siphons Federal Dollars To Balance Budget, Book Argues

The Texas Tribune

In the United States federal assistance programs go through the states. But those dollars that are supposed to go to impoverished families - abused and neglected children - to the disabled and elderly poor -- those dollars don't always get there.

Instead they are diverted to the state administrations - the general fund of the state - or to privvate contractors who are motived by profit and have little or no over sight.

It's a story that is told in the book "The Povery Industry: the exploitation of American's most vulnerable citizens."

Former Governor Rick Perry is highlighted in the book. Hatcher argues that despite an open disdain publicly, Governor Perry diverted more than a billion dollars from Texas Medicaid programs to the state general fund between the years of 2008-2013.

And that is only one program in one state. How much money intended for the bottom are ending up elsewere?


Daniel L. Hatcher -- a professor of law at the University of Baltimore.  

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