Washington, DC – Today, Reproductive Health and Freedom Watch released new research detailing how anti-choice state officials are diverting increasing taxpayer dollars to the unregulated pregnancy clinic (UPC) industry – most dramatically since the fall of Roe – despite mounting evidence of financial mismanagement, wasteful spending, and misreporting to state officials by this industry.
The UPC industry, comprising an estimated 2,500-4,000 unregulated sites across all 50 states, is largely affiliated with national “pro-life” organizations Care Net, Heartbeat International, and the National Institute of Family and Life Advocates (NIFLA).
RHFW finds:
- Most states whose legislatures fund the UPC industry have banned or restricted abortion care and have maternal and infant mortality rates well above the national average. In funding the industry, legislators often position UPCs as a solution to these crises.
- Legislators sponsoring UPC funding measures publicly oppose abortion care. The same legislators that champion UPC funding publicly identify as “pro-life” and/or have a history of voting for abortion restrictions. State legislatures that fund UPCs have passed some of the most regressive abortion bans and restrictions in the country.
- Direct taxpayer funding of UPCs is escalating, and state legislatures are employing creative schemes to divert additional tax revenue streams to the industry. Funding to the UPC industry is increasing overall, and direct taxpayer funding is increasing even faster. Moreover, many UPC industry-allied legislatures channel additional state resources to UPCs through multiple creative tax structures.
- There is mounting evidence of significant financial waste in the UPC industry. In 2022 (the most recent year with publicly available data) IRS Forms 990 show roughly half the United States-based UPC industry reported over $1.2 billion in expenses while industry leaders reported UPCs delivered goods and services valued at under $370 million. Additionally, a growing number of state UPC industry investigations have unearthed instances of financial mismanagement, wasteful spending, and misreporting to state officials.
- The UPC industry and its allies obstruct accountability, transparency, and impact analysis. Despite securing increased funds, the UPC industry and its allies (anti-choice lawmakers and conservative legal organizations) have resisted efforts to promote transparency and accountability or to assess the impact of public investments in the industry.
- Voters across the country and political spectrum support oversight of taxpayer dollars invested in the UPC industry. Voters nationwide, no matter political affiliation, are concerned about ongoing taxpayer funding of UPCs with little meaningful oversight, reporting requirements, or impact assessment.
Research by RHFW indicates that the industry reported $1.2 billion in expenditures in 2022 but failed to account for most of these funds, and a recent report revealed that UPCs receive $400 million in federal taxpayer funds. Despite receiving substantial private funding, the industry’s lack of transparency and history of fiscal mismanagement leave taxpayers with little understanding of how public funds are used or why the industry requires increased taxpayer support. Along that vein, US Representatives Maxwell Frost (FL-10) and Jamie Raskin (MD-8) recently called on the Government Accountability Office to examine federal funding into UPCs.
To read the full memo, please click here. For more information on Reproductive Health and Freedom Watch, please visit our website.