Robert Reich: Stop Private Equity From Profiting While Our Communities Burn – OpEd

July 8, 2026 
By Robert Reich

Key Takeaways

Private Equity is Inflating Costs for Fire Departments — Firms are buying up essential suppliers like emergency software, radios, fire truck engines, and flame retardants, then sharply raising prices.Volunteer Fire Departments are Hit Hardest — Making up 85% of U.S. fire departments and operating on tight budgets, many face massive price hikes — such as software costs jumping from $795 to $5,000 per year.

Public Safety Must Come Before Private Equity Profits — States should block private equity ownership of critical services, and Congress should close the carried interest tax loophole that benefits these firms.

Private equity firms are buying up all sorts of things that fire departments rely on — and jacking up their prices.

This is particularly harmful to volunteer fire departments, which make up about 85 percent of fire departments in the country and operate on shoestring budgets.

Even modest price increases on software can limit a fire department’s ability to protect the public. One Connecticut volunteer fire department reported that after a private equity firm bought the software platform it used to track emergencies, the yearly price skyrocketed from $795 to $5,000.


Private equity is also buying up companies that produce emergency radios, fire truck engines, and flame retardant chemicals.

By now we should all know that when private equity gets involved, prices go up and quality goes down — whether it’s housing or healthcare or even local newspapers.

Private equity managers get rich as they plunder vital industries and then take advantage of the carried interest loophole, which lets them pay a lower tax rate by classifying their incomes as investments.

Fire departments all over America are now facing higher costs, which makes it harder for them to replace aging equipment, train firefighters, and provide emergency services. Some firefighters even report going out on calls in fire engines with faulty brakes.

Can you imagine?

And even if they can afford new equipment, they have to wait longer for it. Sometimes years for a fire truck.

Let me ask you, honestly: Are private equity profits really more important than public safety?

States can and should prohibit private equity firms from sinking their teeth into vital public goods and services.

Oregon, for example, just passed the nation’s strictest law blocking private equity firms from controlling healthcare practices.

And Congress must follow through on eliminating the carried interest tax loophole that lets private equity managers get away with paying less in taxes.

We must not let private equity firms cash in while our communities burn.

This article was published at Robert Reich’s Substack


About Robert Reich
Robert B. Reichis Chancellor's Professor of Public Policy at the University of California at Berkeley and Senior Fellow at the Blum Center for Developing Economies, and writes atrobertreich.substack.com. Reich served as Secretary of Labor in the Clinton administration, for which Time Magazine named him one of the ten most effective cabinet secretaries of the twentieth century. He has written fifteen books, including the best sellers "Aftershock", "The Work of Nations," and"Beyond Outrage," and, his most recent, "The Common Good," which is available in bookstores now. He is also a founding editor of the American Prospect magazine, chairman of Common Cause, a member of the American Academy of Arts and Sciences, and co-creator of the award-winning documentary, "Inequality For All." He's co-creator of the Netflix original documentary "Saving Capitalism," which is streaming now.
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