America Needs a New Way to Finance Social Services

Our country's human-services financing system, rooted in the 1960s, needs to be modernized. Programs and services to help the nation's most vulnerable people have changed substantially over the years, as have the ways in which they are financed. Most significant has been the shift from grants to federal cost-reimbursement contracts and the increasing use of of Medicaid to support human services. Those financing approaches have strained nonprofit organizations to the breaking

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