Let's see, does a government run body require a profit on top of its expenses or does it require only that it's expenses be paid for? Can you say the same for a for profit company? No , no you cannot. By it's very nature businesses will do whatever it can to maximize profit, including reducing and denying making payments.
That's not my opinion, that's historical fact.
Most are missing the point here. The state has the choice to dole out the money to whoever they see fit. Straight from the plan,
"The Opportunity Grant wouldnt be a blank check. Instead, the federal government would require each
participating state to develop and submit for fast-track approval a concrete plan to develop a new aid program. To
get approval, the plan would have to meet four conditions.
First, the plan must demonstrate how the funds would be used to move people out of poverty and into
independence. The state could not use the Opportunity Grant to fund other priorities, such as highways. And the
plan must, at a minimum, direct assistance first toward people below the poverty line.
Second, the new program would have to require all able-bodied recipients to work or engage in work-related
activities in exchange for aid. The elderly and the disabled would be exempt from this requirement.
Third, the state would need to use some funds from the consolidated programs to encourage new approaches by
innovative groups as well as non-governmental organizations with a proven track record. It would also need to
show how it would give low-income Americans more service providers to choose from.
And fourth, the state and the federal government would have to agree on measures of success and evaluation by a
third party to conduct an objective assessment of the plan.
If approved, states would take the funding for these programs and provide a fixed funding stream to competing
local service providers, including nonprofits, for-profits, and state agencies. In some cases, each person might apply
directly to the service providers for assistance, and providers could provide customized aid through case
management. "
If the private organization can not provide a good plan they are axed. The funding is fixed between competitors as well so one private organization cannot scrape all the money for profit. This also can cut out the current government bodies who are doing distribution. The government body does not collect a profit off of the allocated assistance money, but it pays for itself with our tax dollars. We as tax payers see a savings in our taxes, or we see more money free to be allocated for spending on other issues or an increase in spending on the funding dollars for the poor.
Here is the plan:
http://budget.house.gov/uploadedfiles/expanding_opportunity_in_america.pdf