NOTE TO READERS: This is the final issue of In the Public Interest’s Privatization Report. For more than a decade, week after week, Lee Cokorinos has expertly compiled this comprehensive selection of news articles related to the work of ITPI. We will add readers of the Privatization Report to ITPI’s regular weekly newsletter which will, on occasion, also include brief summaries of and links to relevant articles. In the Public Interest thanks Lee for his great work and dedication to the public interest–and to In the Public Interest.
HIGHLIGHTS
JUMP: EDUCATION | INFRASTRUCTURE | PUBLIC SERVICES | THE REST
First, the Good News
1) National: Letitia James, New York State’s Attorney General, and 41 other attorneys general have urged big tech companies to address dangerous AI chatbot features. The letter reads, in part, “‘Sycophancy’ refers to when an artificial intelligence model single-mindedly pursues human approval. It may do this by tailoring responses to exploit quirks in the human evaluators, rather than actually improving the responses, especially by producing overly flattering or agreeable responses, validating doubts, fueling anger, urging impulsive actions, or reinforcing negative emotions in ways that were not intended.”
2) National: The just-passed fiscal 2026 National Defense Authorization Act includes language saying “that DOD ‘may not take’ any action that conflicts with an existing provision that restricts private companies from managing the commissary system or a commissary store. Lawmakers’ actions come in response to an April 7 DOD memorandum that directed all functions that are not inherently governmental to be prioritized for privatization. It specifically cited recreation and retail sales as examples, which would include the Defense Commissary Agency’s grocery stores on military installations.”
3) National: Good news, or at least a silver lining, on artificial intelligence risks. While noting that mass layoffs are the impact most people fear, Steven Greenhouse explains how the transformation could be responded to positively—depending on an energetic response from government. See also, on the risks side and the macro picture, Howard Marks’ excellent memo, “Is it a Bubble?”
4) California: San Francisco is making a determined effort at finding badly needed early educators and getting them to stay. “For Mayra Aguilar, her mentor teacher Jetoria Washington is a lifeline who can help her unstick an issue with any aspect of the apprenticeship—in the classes she takes or the classroom where she works. Taking courses online means she can be home with her own kids in the evenings. Earning money for the hours she spends in the classroom means she is not going into debt to earn the credential she needs to find a full-time job. The constellation of support has helped her shift from feeling in over her head to feeling ready to keep working toward a college degree.”
5) National: Writing for NJBIZ, Raymond Givargis and Herson Suquino make the case that community centers matter for public health and connection among residents. “In recent decades, community centers have been on the decline. There are several reasons for this phenomenon, including the increased privatization of once-public spaces, a shift in socialization toward digital spaces, and a lack of public funding to sufficiently operate these centers. Still, though community centers are fewer in number than in decades past, the demand for them remains strong.”
6) National/Wisconsin: The Wounded Knee Massacre site protection bill has passed Congress. “Oglala Sioux Tribe President Frank Star Comes Out called the bill “an important act that will preserve the memory of the Wounded Knee Massacre and the legacy and sacrifice of our ancestors.” ‘Significantly,’ Star Comes Out said, ‘it also promotes tribal self-determination and allows us to protect our Wounded Knee site in perpetuity.’”
7) National: The National Treasury Employees Union is conducting a survey on workplace experiences. “Thousands of NTEU members have already taken the Partnership for Public Service’s Public Service Viewpoint Survey. Have you? With FEVS canceled this year, this survey is your chance to anonymously share your workplace experience at this critical time for the civil service. The Partnership intends to use the survey data to understand the experience of federal employees across government and demonstrate how current management practices are affecting the workforce. Please take the survey on your personal time by Friday, Dec. 19. It takes fewer than 10 minutes to complete, and responses are confidential. Findings will be shared only in aggregate.”
8) National: A for-profit school is opening in a for-profit ICE family prison, reports Whitney Curry Wimbish. “Stride, Inc., an S&P 600 corporation based in Virginia, is hiring across various positions, including a school principal, counselor, and teachers for English, math, and science. All will work on-site at the South Texas Family Residential Center in Dilley, one of the largest detention centers in the U.S., the job ads state. The facility is managed by CoreCivic, one of two major for-profit prison operators, whose fortunes have risen drastically under the Trump regime, as I reported in August.”
9) National/North Carolina: “Classrooms Sat Half-Empty’: How ICE Activity Turned These Communities Upside Down.” Writing for EdWeek, Larry Ferlazzo, a former award-winning high school English and social studies teacher of more than two decades, says, “Most importantly, we showed up, not just with material support but with love, solidarity, and unwavering care for one another. Our community demonstrated remarkable solidarity through coordinated relief efforts, including donating food, establishing monitoring stations, and providing transportation for students to school. When emergencies arose, our advocate group responded immediately, even transporting families to the hospital without hesitation. The most inspiring aspect was witnessing East Charlotte’s diverse community unite in peaceful demonstration. People from all backgrounds stood together, holding signs, raising their voices, and filling the sidewalks with a unified message of support and solidarity.”
10) Indiana: The Indianapolis Star reports that “Indianapolis Public Schools parents and community members in support of traditional public schools are speaking out against proposals that would diminish the power of the district’s elected board. At the Dec. 3 meeting of the Indianapolis Local Education Alliance—a group charged by the legislature to find ways IPS and charter schools can efficiently share educational resources—proposed new governance models were presented that could heavily strip the IPS board of its powers.”
The Indianapolis Local Education Alliance “is a city-led body charged by the Indiana General Assembly to craft plans that address facility and transportation management, among other topics such as governance structure and increasing efficiency. The goal of the alliance is to deepen collaboration across traditional public and public charter schools and support a strong academic experience for all students. The alliance was created as part of House Enrolled Act 1515 during the 2025 legislative session. The alliance will vote on adoption of final recommendations at its last meeting. The alliance must report its recommendations back to district, city and state leaders by Dec. 31, 2025.”
11) Florida: “An audit of Florida’s school voucher program has turned up a disturbing problem. The audit shows a lack of accountability for funds dispersed to parents who chose to homeschool their children or send them to private charter schools,” WFLA reports. “‘You would think that it would almost be like tracking a check; those vouchers would have a number to them and once those vouchers are cashed, or turned in, you would be able to track where that money went or how that money was spent,” said Hillsborough County School Board Chair Karen Perez
12) Florida: As some public schools are poised to close, in part due to the state’s voucher system driving students to private schools, are charter operators about to move in and scoop up public infrastructure? “Florida’s Schools of Hope program allows private companies to open charter schools in public districts under used buildings. Gallo says the district was already considering closing schools before the possibility came along that private charter schools could move into the seven schools with empty classrooms.”
13) Louisiana: The St. Landry Charter School in Opelousas will close at the end of this school year. “The school opened in August 2022 and has posted a D letter grade for both school years that data is available from the Louisiana Department of Education. The DOE’s information indicates they had a 54.4 letter grade for their first school year, and a 51.5 letter grade for the 2023-24 school year. Student performance grade was an F, with student assessment of 33.2. To see the DOE’s page of data about the school, click here.”
14) North Carolina: EdNC reports that “a Union County charter school that operated remotely while awaiting an educational certificate of occupancy (CO) has been ordered to close immediately. The state’s Charter Schools Review Board (CSRB) voted to terminate the charter for Monroe Charter Academy on Tuesday, Dec. 9, the second of the CSRB’s two-day meeting. According to CSRB leaders, the school was ‘operating illegally.’”
15) National: Michi Trota, the executive editor at Green America, says the public pays the price for big data centers. “The data centers proliferating across the country drive up energy costs by powering energy-ravenous generative AI, cloud storage, digital networks, and other energy intensive programs — much of it fueled by coal and natural gas that exacerbate climate change. In some cases, data centers consume enough electricity to power the equivalent of a small city. The wholesale price of electricity in areas housing data centers is up a whopping 267 percent from five years ago—and everyday customers are eating those costs.”
16) National: The Associated Press reports that “the nation’s freight railroads are going to be able to try relying more on technology and inspect their tracks in person less often after the Federal Railroad Administration approved their waiver request. (…) ‘This is everyday defects across the entire country that we find through visual inspections that cannot be detected by this machinery,’ Brotherhood of Maintenance of Way Employes Division union President Tony Cardwell said. ‘And that technology is not there. It has been here for 30 years. It hasn’t really advanced much at all. It’s a glorified tape measure.’”
17) South Dakota/National: Travis Entenman of South Dakota Searchlight reports that South Dakota wetlands are under threat from the EPA’s rollback. “But the story isn’t just about water. South Dakota’s wetlands are bustling habitats for waterfowl, deer, and the wild things that make our prairie special. Hunters, anglers, and birdwatchers feed local businesses and bring millions into our state. Strip away those habitats, and rural economies take a hit.”
18) International/Canada: CUPE, Canada’s largest public sector union, says “The Liberal government’s new federal affordable housing agency is relying on an outdated and faulty playbook. Details for Build Canada Homes (BCH) show a plan to use public-private partnerships (P3s) that invites real estate developers and investors to profit from public housing spending.”
19) National/California: Catholic bishops held a mass at the private, for-profit run Adelanto ICE Detention Center. “The number of people detained inside the ICE facility has increased over the year as President Donald Trump continues to carry out his pledge to enact the largest mass-deportation effort in U.S. history. As of early November, 1,700 people were detained in the ICE detention center owned and operated by private prison company GEO Group, according to Tricia McLaughlin, a Department of Homeland Security assistant secretary.”
20) National: ICE prisons are getting deadlier, reports Farrah Hassen, J.D., a writer, policy analyst, and adjunct professor in the Department of Political Science at Cal Poly Pomona. “At least 25 people have died in ICE custody since President Trump returned to office, making 2025 the deadliest year for people in ICE custody since 2004. Over 65,000 others remain detained, also the highest number in years. Immigrants with no criminal record remain the largest group in immigration detention. According to ProPublica, ICE has also detained over 170 U.S. citizens this year. Adelanto, owned and operated by the GEO Group, is among ICE’s sprawling network of mostly private, for-profit detention facilities notorious for human rights abuses. But it’s hardly alone.”
21) National: Modernization, not privatization, is key to air traffic control success, says Ed Bolen, president and CEO of the National Business Aviation Association in Washington. “The fact is, privatized air traffic control systems are not a panacea—they are a problem. The privatized models in Canada, the EU and elsewhere are beset with a host of well-documented flaws, including delays and disruptions caused by funding and management instability, staffing shortages, safety concerns, technology breakdowns and other serious weaknesses.”
22) National: Suzanne Gordon, a prominent expert on the privatization of veterans’ healthcare and benefits, gave a presentation on “privatization and its negative impact on women veterans” to Massachusetts Peace Action. “Case in point: one out of three women veterans has experienced some form of sexual harassment or assault during military service. Every VA mental health provider is required to take basic military sexual trauma (MST) training and some specialize in this area. However, the VA MISSION Act of 2018 established a private sector network, the Veterans Community Care Program, that contracts private-sector therapists who not only often have no MST training but also may not know the discipline exists!” [Video, about an hour and 17 minutes]
23) National: Suzanne Gordon and Steve Early spoke with David Dayen, executive editor of The American Prospect, about attacks on veterans’ health care and veterans’ disability benefits. Conservatives “engage in smear campaigns, to claim that veterans are cheating the system or that the government doesn’t administer benefits in a useful way. And those attacks are then used to justify cutbacks in coverage or privatization of the system. That’s what’s gearing up now at the VA, according to coverage from Prospect contributors Suzanne Gordon and Steve Early.” [Video, about an hour]
24) National: Premiums for Affordable Care Act health insurance are “set to surge from about $400 a month to more than $1,100 starting in January—a nearly threefold increase that [Tina Jump] said left her in a state of panic. Jump, who earns about $72,000 a year as a real estate title officer, already feels financially stretched by the need to cover both her Blue Cross Blue Shield plan and the roughly $415 a month she pays for a prescription drug for type 2 diabetes. ‘I don’t know how I’m going to pay for this,’ Jump, 59, told CBS News. (…) About 4 million people could drop their health insurance due to the higher ACA premiums, the Congressional Budget Office has estimated.”
25) National: The Trump administration has issued an order compelling AI government contractors to comply with what it calls “truth-seeking” and “ideological neutrality.” The guidance “instructs agencies to update procurement policies by March 11, 2026, to ensure compliance, and requires federal contracts to include mechanisms for reporting AI outputs that violate the principles.”
Writing in Bloomberg, Kevin Lee says Trump’s executive order to the Justice Department to battle state level regulation of artificial intelligence will lead to legal uncertainty. “This federalist critique, while constitutionally elegant, is practically dangerous. It ignores a fundamental reality of the modern digital economy: In the absence of federal guardrails, the alternative to state regulation isn’t ‘freedom to innovate,’ but fiduciary uncertainty.” Lee is the Intel Social Justice and Racial Equity professor of law at North Carolina Central University School of Law and the founding director of the Institute for AI and Democratic Governance. On December 11, Trump ordered that punitive measures by the federal government will be taken against states that regulate AI.
26) National/International: The top military contractors are cashing in on Caribbean operations, Stavroula Pabst writes in Responsible Statecraft. “‘Beyond the immediate beneficiaries, the entire arms industry is set to profit from the buildup and prospect of war,’ Semler told RS.”
27) National: How might the GEO Group’s increasing involvement in electronic monitoring and immigration‑related services impact its “investment narrative”? Simply Wall St has a take. “To own GEO Group, you need to believe its ICE detention footprint and electronic monitoring programs can sustain cash flows despite political and legal uncertainty around immigration policy. [long-time Senior Vice President, Legal Services, General Counsel, and Corporate Secretary Joe] Negron’s phased retirement does not materially alter the near term focus on contract renewals, facility utilization and the risk that policy shifts reduce federal funding or program counts. This governance news sits alongside GEO’s recent credit agreement amendment, which loosened leverage related restrictions on certain restricted payments and increased financial flexibility. For investors, that flexibility is intertwined with the same core catalysts and risks that make federal detention and monitoring contracts so important to GEO’s future cash generation.”
28) National: Forbes reports that “as American military contractors struggle to deliver, a frustrated Washington is starting to cast about for new and aggressive options to address failing Navy contractors. With security stakes increasing, a loose cadre of American defense reformers, fueled by the collapse of both the U.S. Coast Guard’s Offshore Patrol Cutter and the U.S. Navy’s Constellation Class Frigate programs, are quietly urging the Administration to nationalize underperforming defense-sector assets, mimicking the U.S. government’s long-standing and highly-regarded approach to failing financial institutions.”