ALEC & Privatization

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Access a PDF version of the fact sheet here.

ALEC's Legislative Agenda on Privatization

On American Legislative Exchange Council task forces, corporate lobbyists and special interests vote as equals with elected representatives on templates to change our laws, behind closed doors with no press or public allowed to see the votes or deliberations. Several pieces of ALEC "model" legislation would privatize public functions such as child support services, foster care, adoption services, Social Security, Medicare and Medicaid, prisons, schools, and government laboratories. Through privatization schemes to outsource traditional governmental functions, taxpayer dollars are diverted from the building of public assets and institutions to create long-term revenue streams for corporations. Privatization has resulted in the loss of public sector jobs that have been crucial to the growth of the middle class, and instead has created a system that favors lower wage jobs and new profit centers for CEOs and investors.

Privatizing Government Services Affecting Children

Privatizing Medicare, Social Security, and Relief Programs

Privatizing Prisons

  • ALEC's "Private Correctional Facilities Act" would allow any unit of government to contract with a for-profit corporation to imprison Americans accused or convicted of violating criminal laws.
  • ALEC's "Housing Out-of-State Prisoners in a Private Prison Act" allows a private prison operating in one state to contract with another state to hold prisoners without the consent of the local government in which the private prison is located.
  • ALEC's "Prison Industries Act" allows correctional boards to oversee low-wage prison labor that competes with other companies.

Privatizing Education

  • ALEC's "Education Enterprise Zone Act" creates a voucher program to subsidize private schools with taxpayer money.
  • ALEC's "Education Accountability Act" allows a state to override the elected school board, declare schools "educationally bankrupt," and divert funds to private schools.
  • ALEC's "Parent Trigger Act" would allow a small group of parents to close public school for current and future students, and turn the school into a charter school or require the state to use taxpayer dollars for vouchers to subsidize private tuition.
  • ALEC's "Charter Schools Act" would allow for the state to grant charters to create and operate schools outside of traditional public schools, while also exempting these charter schools from state laws that apply to public schools.
  • ALEC's "Next Generation Charter Schools Act" allows state taxpayers to subsidize charter schools that compete with public schools, while exempting charter schools from complying with many legal standards and requirements that govern public schools.
  • ALEC's "School Board Freedom to Contract Act" encourages school boards to contract with for-profit corporations for services being provided by schools.

Privatizing Government Research and Environmental Services

Privatizing Public Safety and Other Government Services


For more, see In the Public Interest's July 2012 report, "Profiting from Public Dollars: ALEC’s Privatization Agenda."