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Small Business

This Social Worker Wants To Help Kids With Special Needs. Louisiana Won't Let Her.

The state requires that people prove certain businesses are needed. How to do that is another question entirely.

John Stossel | 6.3.2026 12:25 PM

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John Stossel is seen next to photos of Ursula Newell-Davis | Stossel TV
(Stossel TV)

Is your business "needed"?

Bizarrely, in many states, if you want to start a business, you first must convince bureaucrats that your business is "needed."

Four years ago, Louisiana blocked social worker Ursula Newell-Davis from helping kids with special needs. Bureaucrats said she hadn't proved her business was needed.

"Why does the state of Louisiana have the right to stop me from doing what I love?" she asks in this update video.

Good question. Newell-Davis has a master's degree and a social work license. For two decades, she's helped kids with special needs.

One, Kamal, told us he struggled to make friends, until Newell-Davis "helped teach me how to talk to people."

Kamal's mother is grateful: "She explained to me things that I didn't understand about my kids. It allowed me to go back into the community and work."

Newell-Davis helped many families. But four years ago, she tried to help more kids by doing short-term respite work.

Louisiana wouldn't let her.

"You have these skills, you could help people," I tell her. "What do you think is going on with these regulators?"

"Louisiana wants to limit how many agencies they have to regulate," she replies. "Make it easy for the state."

Anastasia Boden of the Pacific Legal Foundation is helping Newell-Davis sue Louisiana, arguing that its regulation is unconstitutional.

"Louisiana gives you no clue about how to prove you're needed," says Boden. "That would be difficult for even the best entrepreneurs. Nobody can prove with any certainty that they're needed."

Right. I can't prove Stossel TV is "needed." Is McDonald's needed? What about the local phone store?

"The only way to find out is to open up your doors and try," says Boden.

But Newell-Davis isn't allowed to try, even after giving regulators what they demanded: She rented office space, paid fees, and wrote seven pages about why her work is "needed."

Louisiana decided that wasn't good enough.

That's what usually happens. The year Newell-Davis applied, the state turned down 75 percent of applicants. The health department says it limits "the burden on regulators."

"That's just not a legitimate excuse," complains Boden, "that government doesn't have enough money to administer people's constitutional rights."

Stossel TV reached out, but state officials wouldn't talk to us about their rule.

Thirty-five states and Washington, D.C. have (appropriately named) "CON" laws requiring entrepreneurs to get a Certificate of Need before opening certain businesses.

This creates nasty side effects. Try not to get injured in Kentucky. The state's CON law for ambulances results in longer wait times for transportation.

But Louisiana is the only state that applies this nonsense to social workers doing respite work. The result: "Consumers in Louisiana are less satisfied with their care," says Boden. "It might be easier for the government, but that's not benefiting consumers."

If these laws don't benefit consumers, why do they stay on the books?

"Hospital [and] medical associations give money," explains Boden.

"They don't want the competition," I ask.

"Of course not! But the result is to deprive people of economic opportunity and to make care worse," says Boden.

Now, four years later, Boden's latest lawsuit winds its way through America's bureaucratic courts, and bureaucrats still won't let Newell-Davis do respite work.

But good news: Newell-Davis now helps people with special needs by employing them at her new fried chicken restaurant.

At least Louisiana's government doesn't get to decide if a new restaurant is "needed."

What Louisiana's bureaucrats do is just wrong.

So often, government just gets in the way.

COPYRIGHT 2026 BY JFS PRODUCTIONS INC.

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NEXT: Do You Trust the Government To Control AI?

John Stossel is the host and creator of Stossel TV.

Small BusinessBusiness and IndustryBureaucracyState GovernmentsLouisianaCivil LibertiesLawsuitsRegulation
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  1. Chuck P. (Now with less Sarc more snark)   2 months ago

    Who is she planning to bill for her services? If it is a private party not getting reimbursed by the government, then i agree the state has no business regulating it. If it involves public funding, fuck that.

    1. Normal Guy   2 months ago

      Even as a private business in a regulated industry it would probably qualify for grants and Medicaid coverage.

      So... it could be private in that way we're currently having a problem with. As you know, we're currently trying to root out fraud. It may be the case that the local government has put a hold on the approval of all businesses of the care/social work variety.

  2. Restoring the Dream   2 months ago

    Louisiana is the most corrupt state in the Union. And that's saying something.

    1. charliehall   2 months ago

      And overwhelmingly Republican, hostile to free markets.

      1. TJJ2000   2 months ago

        Louisiana "Facility Need Review (FNR)" legislation.

        Statute 40:2116 was passed via Act No. 13 of the 1990 Regular Session of the Louisiana Legislature

        The bill was drafted, sponsored, and advanced by ... At the time the law was pushed through, Alexander and the vast majority of the committee were members of the Democratic Party. The bill was heavily pushed by the administration of Governor Buddy Roemer, who was a Democrat when the law was signed.

        [WE] do it. But, but ,but what [WE] [D]emon-crap does is all Republicans fault! /s
        Course that was a given before even looking it up.

        Under what kind of idiotic polluted brain does one believe [D]emon-craps aren't the roots of all this BS? They literally champion this crap all the time during campaigning. It's literally their platform.

  3. TJJ2000   2 months ago

    ...because of course; only 'Guns' (Gov-Guns) can do stuff! /s
    You just have to think like a [D]emon-crap tyrant POS.

  4. KeninTX   2 months ago

    Pity she's not a Somali in Wisconsin - they aren't so concerned about proving something is 'needed.'

    I read this story, and something seemed to be missing - how will her proposed business be funded? By the parents of the kids she helps? By the parents insurance plans? Or by the state/federal gov't? I suspect it is the latter, and that may (partially) explain the 'CON' requirement.

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