A “COMPLEX” TOO COMPLEX
In a report with “exclusive details,” the New York Post writes today,
Texas nonprofit housing migrant kids took $3B in grants from Biden admin — and boosted executive salaries up to 139% — before Trump pulled plug.
The nonprofit in question, the Austin, TX-based Southwest Key Programs, has been around for decades, but as the Post shows, their operations exploded under the multi-billion-dollar Biden grant. The group’s CEO now earns almost $1.2 million a year.
And how did that turn out? The Post reports,
At the same time, Southwest Key was hit with investigations — and a federal lawsuit — that alleged some migrant kids in its care were sexually abused by employees or else handed over to traffickers.
The Post reports that U.S. HHS Secretary RFK Jr. terminated the grant on Wednesday.
But we see this pattern over and over. Elsewhere, I wrote earlier this month (based on another Post report) about $20 billion that the Biden Administration’s EPA shoved out the door in its final days. $7 billion of this windfall went to a recently-minted Maryland nonprofit, Climate United Fund.
Governments at all levels, in recent years, have taken to outsourcing even basic functions to nonprofits. Call it the “government-nonprofit industrial complex.”
The benefits for all involved include evading both legislative accountability and civil-service limits on executive-level pay. At the lower end, too, nonprofits can utilize volunteer and low-wage labor not available to a government agency performing that exact same function.
When it comes to scrutiny in government contracts, for-profit companies, who are just in it to make a buck, are rightfully treated with skepticism when being vetted. But nonprofits are given the benefit of the doubt, assumed to be in it for all the right reasons.
Sometimes, the money flows in the opposite direction. I documented a case here in Minnesota where a private, California nonprofit corporation endowed a state government Office of New Americans (ONA) to accommodate the inflow of refugees and illegal immigrants into the state.
Nice work if you can get it, and you can get it, if you try.
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