In 2014, the state of Alaska experienced a steadily increasing Supplemental Nutrition Assistance Program (SNAP) application processing backlog due to changes in regulations and eligibility requirements, a consistent increase in applications, and the loss of temporary positions. Though the staff briefly expanded, it was trimmed again, and in early 2023, with a diminished agency workforce and in response to this surging SNAP case backlog, the state of Alaska contracted with out-of-state private company Public Consulting Group (PCG) to run its Virtual Contact Center.
Despite the contract’s reported primary purpose, the backlog has continued and led to increased payment error rates. Alaska asked for a waiver for the state to implement the “Alaska Non-Merit Demonstration Project” and in 2025, the U.S. Department of Agriculture (USDA) Food and Nutrition Service (FNS) approved it. The demonstration allows up to 140 call center staff employed by PCG to conduct SNAP interviews and certification functions statutorily required to be performed by merit-based staff.
In a new brief, Outsourcing Alaska State SNAP Jobs to Private Out-of-State Contractors: A Threat to Life-Saving Food Assistance for Thousands of Alaskans, In the Public Interest explores how outsourcing public benefits eligibility functions hurts individuals and families applying for these important supports, using examples from five other states that turned to contractors to provide human services. Moreover, the brief shows the waiver-enabled outsourcing of merit-based work in Alaska’s SNAP program further endangers the integrity of the program and sets a potentially dangerous precedent for other states