HIGHLIGHTS
JUMP: EDUCATION | INFRASTRUCTURE | PUBLIC SERVICES | THE REST
First, the Good News
1) National: Writing in Daily Kos, Trenz Pruca looks back at Donald Cohen and Allen Mikaelian’s The Privatization of Everything. “By 2025, the authors’ thesis looks prophetic. The COVID crisis exposed the hollowing-out of public health systems. Privatized utilities failed catastrophically in wildfires, freezes, and hurricanes. Private equity ownership of nursing homes was linked to higher mortality and worse care. For-profit prisons and charter schools replicated the same dynamic: the public pays, corporations profit, and accountability disappears. Cohen and Mikaelian were right: privatization does not shrink government—it redirects it, away from citizens and toward capital.”
2) National: A federal judge has ruled that the mass termination of probationary federal workers is illegal. AFGE National President Everett Kelley issued the following statement in response to the ruling: “This is another significant victory for federal employees and for all Americans. Judge Alsup’s decision makes clear that thousands of probationary workers were wrongfully fired, exposes the sham record the government relied upon, and requires the government to tell the wrongly terminated employees that OPM’s reasoning for firing them was false. AFGE, AFSCME and all our partners in this case are proud to lead this fight to preserve our non-partisan civil service and to hold this administration accountable for its unprecedented targeting of American workers.”
AFSCME President Lee Saunders praised the federal court ruling. ““This is yet another significant victory in our continued fight against the Trump administration’s attacks on our jobs and livelihoods, providing relief to AFSCME members who have been targeted and to our communities that rely on strong, dependable public services. The billionaires running this administration have waged an unrelenting assault on working people, illegally trying to eliminate our jobs while using their yes-men in Congress to strip away our health care and essential services nationwide. But AFSCME’s 1.4 million members are fighting back. Thanks to this case, brought earlier this year by a coalition led by AFSCME and AFGE, wrongfully terminated AFSCME members at the Federal Aviation Administration and the Department of Agriculture were ordered reinstated in their jobs, along with thousands of other wrongfully fired public servants across the federal government. This latest ruling mandates that the government must now set the record straight that these illegally terminated probationary employees were not fired for their performance, as the Trump administration falsely claimed when it fired them en masse.”
3) California: California has released its own vaccine recommendations as Robert F. Kennedy, Jr., shifted federal policy. “Leading medical organizations informed the state’s new guidelines, announced as part of a western states alliance. A new law requires insurers to cover vaccines for most Californians. (…) Gov. Gavin Newsom and state health officials released the recommendations as part of the state’s newly formed health alliance with Oregon, Washington and Hawaii. Leading medical organizations, including the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists, informed the recommendations,”
4) California/National: As federal healthcare funding is threatened by the budget impasse, here’s a good analysis from a year ago on how California made almost everyone eligible for coverage. “While lawmakers haven’t been able to muster support for a government-run system, they have shored up the state’s marketplace. Covered California receives funding from the state, and its costs are capped by federal aid established at the onset of the COVID-19 pandemic. The COVID assistance is set to expire at the end of 2025.”
5) National: The Public Service Loan Forgiveness (PSLF) Coalition “has issued a public comment letter to the U.S. Department of Education expressing strong opposition to a proposed rule that aims to change eligibility criteria for the program. The coalition, which consists of over 120 organizations dedicated to public service, urges the Department to withdraw the proposal due to concerns over its legal authority and potential negative impact on vital public services.”
6) International/New Report: The Organization for Economic Cooperation and Development (OECD), in a major new 300-page report, encourages the responsible use of AI by governments to strengthen efficiency, effectiveness and trust. “As AI becomes an integral part of digital government, transforming processes and services to improve productivity, responsiveness and accountability, the OECD’s Governing with Artificial Intelligence report is the first of its kind to examine how governments use and engage with AI, analysing 200 use cases and dozens of policy initiatives to understand how AI is applied and promoted across 11 core areas of government.” [Read the full report]
7) National: Writing in The Hechinger Report, Robert Ceresa, the founding director of the Politics Lab of the James L. Farmer House, Huston-Tillotson University, says “the push to expand school choice is reshaping the landscape of American education, but leaving behind fundamental democratic values.” Ceresa writes, “In this moment of sweeping change, as public dollars shift from common institutions to private and alternative schools, the shared civic entities that once supported democratic learning are being diminished or lost entirely—traditional structures like public schools, libraries and community colleges are no longer guaranteed common spaces.
The result is a disjointed system in which students may gain academic content or career preparation but receive little support in learning how to lead with integrity, think across differences or sustain democratic institutions.”
8) National: WBUR’s On Point had a series of interviews on the subject of what to know as the student loan industry becomes more privatized. “Between 2010 and 2018, new federal student loans fell by 25%. New private student loans grew by 70% in that same period. Now this growth has outpaced nearly every other consumer financial product out there, including mortgages, credit cards, and auto loans. Again, that’s the rate of the growth in private student loans. And the private student loan market could soon grow even faster.”
9) National: Education Week reports that “the Trump administration’s education grant cancellation spree has accelerated in recent weeks, with millions of dollars abruptly cut off for several dozen ongoing projects promoting civics, arts, and literacy education, and preparing K-12 students for college.” This includes “close to 20 projects centered around American history.” History education is vital to democracy.
10) Alabama: The Alabama Public Charter School Commission has denied an extension to a Huntsville charter school. “The school would have used the extension to go before a federal judge to ensure diversity within the school and compliance with the decades-long desegregation case involving Huntsville City Schools.”
11) Idaho: The Idaho school voucher scheme is facing challenges. The Idaho Statesman editorial board says it’s about time. “A coalition of public school advocates announced Wednesday that it is asking the Idaho Supreme Court to rule that a refundable tax credit for families who send their kids to private schools is a violation of the Idaho constitution’s education clause.”
12) Illinois: Chalkbeat Chicago reports that “EPIC Academy, a charter high school on the South Side, may close by the end of this school year due to low enrollment—just months after the Chicago Board of Education extended its contract. (…) CPS’s letter also suggested that the school could close before the end of the school year, which Khan did not dispute but said is ‘not our hope.’ Jennifer Conant, the charter division chair of the Chicago Teachers Union, said in an interview that a midyear closure would be ‘incredibly destabilizing and harmful’ to the school community—a concern it has expressed to CPS.”
“In February, about a month after the city’s new half-elected, half-appointed board was sworn in, the school board made the unprecedented decision to absorb and save five Acero charter schools planned for closure, following heavy protest from Chicago Teachers Union and Acero families. The district budgeted $20 million this fiscal year to absorb the Acero schools.”
13) Kentucky: Swimswam reports on the legal implications of the privatization of Kentucky’s athletics department. “The move changes the way the university can compensate its athletes. As per the House Settlement, direct school-to-athlete payment is capped: schools have $20.5 million with which they can compensate their athletes. That remains the same. What changes is that through Champions Blue LLC, Kentucky can essentially offer its own athletes NIL deals.”
14) National: The artificial intelligence revolution, which promises to create tremendous energy and physical infrastructure challenges, and to have a powerful impact on the delivery of public services, may be running out of steam, says Abe Asher in Jacobin. “‘There’s a hype bubble,’ Max Read, who covers AI in his newsletter, told Jacobin. ‘We can all agree that for the last three-and-a-half years, say, there’s just been an absurd amount of overpromising and underdelivering about the capabilities of these large language models, promises about how they’re going to transform the world, promises about how everything’s going to change. I think we can all agree that hype bubble is already on its way to deflation.’”
15) National/Upcoming Event: The National League of Cities is organizing an event to discuss “Preparing Municipal Bonds to Support Infrastructure for Natural Disasters.” NLC says “Natural disasters like wildfires, floods, and hurricanes can devastate communities and the infrastructure projects they rely on. For cities, towns and villages this creates additional risks when these projects are financed using municipal bonds as the debt remains no matter if infrastructure is delayed or destroyed.” Webinar, October 13, 2:00 Mountain Time. Register here.
16) National/Think Tanks: The 2025 edition of the Trust for America’s Health report, on Public Health Infrastructure in Crisis: HHS Workforce Cuts, Reorganizations, and Funding Reductions: Impacts and Solutions, is now available. “This year’s termination of already approved funds clawed back over $12 billion in COVID-19 era grants – funding that in addition to supporting the pandemic response was intended to strengthen public health infrastructure beyond the needs created by the pandemic, including infectious disease monitoring, laboratory capacity, emergency preparedness, and mental health services.”
The full report says “technology, insufficient laboratory capacity, and inadequate staffing that limits their ability to respond effectively to health emergencies or implement comprehensive prevention programs. These deficiencies necessitate reliable, adequate and predictable funding
to strengthen public health infrastructure and protect the nation’s health and economic security.”
17) Maryland/National: A new report by the state comptroller says 80% of public schools are in need of repair, renovation or replacement. “The report from Comptroller Brooke Lierman said that the state needs to improve its school facilities if it wants to keep its reputation for top-ranked schools, but that doing so will require “a statewide reimagining of funding formulas and revenue streams.” The report did not make recommendations on that reimagining, however.”
18) New Mexico: Capital & Main says “a recent report says abandoned oil infrastructure could cost the state up to $1.6 billion in coming years. This is how.” Jerry Redfern writes, “This spot in the Hogback exemplifies a worrying, expensive trend in New Mexico’s changing oilfield remediation landscape, where well operators declare bankruptcy and abandon highly contaminated and dilapidated facilities for state and federal agencies to clean up. It’s a national trend that sweeps from the country’s first oilfields in Pennsylvania to the California coast.” [Read the full 47-page report]
19) Virginia: Richmond’s largest public housing project is facing mayoral opposition. “Mayor Avula is saying he won’t back plans to redevelop Gilpin Court unless the housing authority makes major changes, including nixing a controversial proposal to privatize the property.”
20) International/Think Tanks: See the World Wildlife Fund’s new report, Incorporating Natural Resource Safeguards in Linear Infrastructure Planning: A Compendium of Best Practice Resources. “Global ecosystems are under threat from the rapid expansion of linear infrastructure (LI)—roads, railroads, power lines, fences, pipelines, and canals. LI development can obstruct wildlife movement, fragment habitats, deplete natural resources, and lead to land-use conversion, impacting communities and the ecosystems they rely on. (…) The shortlisted 10 best practices and their supporting information are assessed across four thematic areas—ecosystems and their services, biodiversity, ecological connectivity, and climate resilience—throughout the infrastructure life cycle.”
21) International/U.S./Canada: So how are things going with the construction of the Gordie Howe bridge linking Detroit and Windsor, which will compete with the 96 year old privately owned Ambassador Bridge? The short answer: Trump’s verbal and tariffs crusade against Canada is not helping. The new bridge will open in early 2026, officials hope. See this report in The New Republic.
22) National: Privatizing “war.” The Defense Commissary Agency (DeCA) has released a Request for Information (RFI) to the commercial grocery industry. “DeCA is issuing the RFI on behalf of the Department of War (DoW) in accordance with the Deputy Secretary of War memorandum of April 7, 2025. The RFI seeks industry input on the potential privatization of 178 commissary locations across the contiguous United States (CONUS), Alaska, Hawaii and Puerto Rico.”
23) National/North Carolina: At the recent NC AFL-CIO convention, labor activists decried federal layoffs. “Jemma Superville, an assistant director with National Nurses United, said politicians are demonizing workers at the Department of Veterans Affairs and stripping resources from the department as part of a long-term effort to privatize the agency entirely. ‘Our veterans have worked and have earned the right to their benefits, and therefore it means that we will stand with them to ensure that they get those rights,’ she said.”
24) Iowa: Health workers are speaking out on the Iowa Department of Corrections’ potential privatization of prison healthcare. “Todd Copley is the local president of the American Federation of State, County and Municipal Employees. ‘The state and its political majority have chosen to honor the hard work and dedication of the medical staff by valuing profit and greed over its employees by calling it reform,’ he says. Copley says the label doesn’t fit what’s happening. ‘This isn’t reform. It’s reckless and the state employees across this state deserve better,’ Copley says.”
25) Michigan: Opposition is mounting against the state Department of Health and Human Services’ moves to privatize the state’s mental health system. “The plan was put in motion by the Department of Health and Human Services, which began soliciting offers for the potential deal last month. Former U.S. Sen. Debbie Stabenow spoke against the proposal this week, saying that Michigan’s mental health system is in need of greater public investment—not being put up for private management. (…) Stabenow says that she’s made Gov. Whitmer aware of her concerns and was unsure if the policy would go forward. The department is also facing legal action over the proposal, with some state lawmakers arguing the change would need legislative approval.”
Advocates, families, and lawmakers gathered at the state capitol to oppose the plan. “Connie Conklin, Executive Director of the Livingston Community Mental Health Authority, expressed concern over the timing of the proposal, especially amid federal Medicaid cuts. ‘Now’s not the time to deconstruct the safety net system that we have to take care of people, she said. Conklin emphasized the importance of maintaining a public system to ensure a safety net for those in need.”
Improving Lives Counseling Services says “While the privatization of mental health services may seem like a solution to improve client care, the reality is that it can have far-reaching negative implications. The focus on profit over people, lack of regulation and oversight, decrease in quality of care, and widening of health inequalities are just some of the concerns associated with privatization. As such, it is important for policymakers and mental health professionals to carefully consider the impact of privatization on client care and advocate for policies that prioritize the wellbeing of clients above profit.”
Community Mental Health Association of Michigan (CMHA) advocates have come out against the proposed MDHHS plan to privatize community mental health care. CMHA’s Robert Sheehan says, “Currently, the CMHs have the power to approve care. It makes it a much more person-centered and clinician-driven process. Under a managed care system from private insurance companies, that’s not what happens. The private insurance company is the authorizer of care, and so you’d be calling them, which makes it much more difficult. We’ve all heard of people being denied care or delayed or having to fight to get care paid for.”
26) Texas/National: The Texas Tribune reports that due to drastic cuts to federal healthcare programs, Texas border counties are bracing for ballooning uninsured rates. “About 14 million fewer Americans are expected to have health insurance in a decade due to President Donald Trump’s new tax-and-spending law, which Republicans dubbed the One Big Beautiful Bill Act, and the pending expiration of enhanced subsidies that slashed the price of Affordable Care Act plans for millions of people. The new law also limits programs that send billions of dollars to help those who care for uninsured people stay afloat.”
27) National: Jacobin reports that “the use of private contractors by the Department of Homeland Security to run ICE’s deportation machine has invited scrutiny. The private firms profiting from ICE’s raids and sprawling detention system are often shadowy, offering little transparency to the public even as they are accused of misconduct and abuses.”
28) Kentucky: The International Brotherhood of Electrical Workers (IBEW) is opposing the proposed privatization of the Tennessee Valley Authority. “‘The TVA is the primary reason the Deep South became the economic force it is today, and IBEW members have been there every step of the way,’ International President Kenneth W. Cooper said. ‘It’s an American success story that required skilled, union labor. We will fight tooth and nail attempts to turn it into a for-profit corporation whose only concern is ultra-rich shareholders.’”
29) Think Tanks/United Kingdom: The Institute for Fiscal Studies (IFS) has published a new report as part of its IFS Green Budget 2025 project, The Outlook for Public Sector Productivity. “In practice, measuring public sector productivity is difficult. Measuring the inputs to public services—whether workforce, quantities of all inputs or funding – is relatively straightforward. But measuring the outputs—and especially outcomes—of public services is much more challenging.”
The report says (p. 24), “If successful, however, the application of AI in government promises to significantly impact the wider economy and society by enhancing the quality and outcomes of public services, policies and government operations (Berglind, Fadia and Isherwood, 2022[37]). Governments have huge influence over and impact in people’s lives, bringing with it a duty of care for the public good—one that goes above that of companies (OECD, 2023[38]; Santiso, 023[39]). Thus, they have a special responsibility to deploy AI in a way that minimizes harm and prioritizes the well-being of individuals and communities. This is especially the case when deploying AI in sensitive policy domains such as law enforcement, immigration control, welfare benefits and fraud prevention (OECD, 2024[13].”