IdeaLog

How do UPCs actually spend state money?

Posted on November 13, 2025

Nineteen states directly fund unregulated pregnancy clinics (UPCs). Four others funded them until recently. Where does the money go? What is it used for? Is it an efficient use of state funds?

These states currently give direct grants to UPCs: AK, FL, GA, IN, IA, KS, LA, MO, NE, NC, ND, OH, OK, SC, TN, TX, UT, WV and WI. These gave direct grants for a number of years but have since stopped: AZ, MI, MN and PA.

Across the states, there is very little transparency in the grant process. It is not clear: (a) how much money has actually been granted from year to year; (b) who receives it and how much is passed along to other groups or individuals; (c) how many unique clients are served in a year; (d) what measurable quantity of products and services each of those clients receive; (e) whether the nonprofits are appropriately audited; and (f) whether audits are reviewed to ensure that state funds are properly spent.

The fact is, state funding of UPCs is a waste of money.

First, based on the most recently available IRS 990 forms, about 2,100 pregnancy center locations reported more than $1.9 billion in revenue and $1.7 billion in expenses. And the current Administration and U.S. Congress are seeking to allocate hundreds of millions of new dollars into these facilities. They’re rich already.

Second, the level of state funding does not reasonably match the services provided. Based on IRS 990 forms, the average pregnancy center reports revenue of $905,000 a year. And since nationally, 2,633 facilities report seeing about 975,000 new clients annually, the average pregnancy center serves about 1.4 new clients per business day, only seven in a 5- day week. How many staff are reasonably needed to accomplish that? Not many.

Third, the average pregnancy center holds more than $1 million in assets. Approximately 2,100 pregnancy center locations reported on IRS 990 forms that they have $2.5 billion in assets, which averages almost $1.2 million in assets per facility.

Fourth, states do not know how their grant dollars are being spent. We should all agree that tax dollars should not be spent when they’re not needed, nor should they be allocated without clear fiscal transparency and impact analysis requirements.

The American Medical Association urges “any entity offering crisis pregnancy services…be transparent with respect to their funding and sponsorship relationships.” That’s not too much to ask.