Article Summary –
The Montana state health department has awarded Maximus Federal Services a $15 million contract to deliver employment assistance and training for some public assistance recipients until September 2025. The move, aimed at creating consistency, expanding access, and increasing efficiency in employment and training programs, sees the state transition away from approximately 12 local providers. Community-based contractors have expressed opposition to the new model, and at least one, Career Futures, has declined a subcontracting deal with Maximus due to differences in case management approach and financial capabilities.
Montana Awards $15 Million Public Assistance Contract to Maximus Federal Services
Maximus Federal Services is divulging its strategy for managing a new $15 million contract with the State of Montana. Their remit includes providing employment training and assistance to select recipients of public assistance including food, cash, and refugee resettlement support.
In the pursuit of consistency and efficiency, Montana’s health department, led by Gov. Greg Gianforte, decided to appoint a single statewide contractor. The Virginia-based firm will serve eligible members of the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Refugee Support Services. The deal is set to run until September 2025, with an extension option available.
Maximus replaces the previous system of around 12 local providers, offering an innovative mix of in-person and digital services through five main offices and 16 part-time locations across the state. The move is expected to improve access to public assistance related employment and training programs.
State health department Director, Charlie Brereton, clarified the intent for issuing a statewide contract. The aim is to rectify inconsistencies in the services received by clients, which were largely dependent on their location. Brereton emphasized the goal to guide these individuals towards employment, self-sufficiency, and long term independence.
Maximus Vice President, Rachel Zietlow, expressed the company’s commitment to increasing service access across Montana and ensuring all tools are available to program participants.
However, the decision to choose a non-local, for-profit entity as the statewide contractor has sparked controversy among current contractors. Contracting disagreements have already caused Career Futures in Butte, a previous TANF contractor, to decline Maximus’ subcontract offer and dissolve the organization.
In an interview with Montana Free Press, Career Futures’ executive director ex expressed concerns about Maximus’ approach to case management, which proposes a 35-person caseload per manager, significantly higher than Career Futures’ average.
Similarly, Career Transitions in Bozeman has been affected, after Maximus chose to partner with another local organization. The loss of state contracts has forced the organization to make tough choices, including terminating their office lease.
Easterseals-Goodwill also confirmed they won’t continue providing employment assistance and training programs as a Maximus subcontractor. The transition of clients and services is expected to start soon, with Maximus slated to begin accepting new clients on April 1.
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