INDIANAPOLIS (AP) - A provision in the federal farm bill moving through Congress would force Indiana to cancel its $1.16 billion deal to privatize parts of its welfare system and force rollbacks of some of the child protection gains the state has made, top aides to Gov. Mitch Daniels said Thursday.

The heavily debated provision that would solidify the role of state workers in authorizing food stamps survived two amendments before the full House Agriculture Committee late Wednesday. They included an amendment by freshmen Reps. Brad Ellsworth and Joe Donnelly, both Indiana Democrats, that would have exempted Indiana from the wording that threatens privatized food stamp operations in several states.

If the provision eventually becomes law, it would cost Indiana as much as $125 million to cancel its 10-year contract with a team of companies led by IBM Corp. to privatize parts of the Family and Social Services Administration, agency Secretary Mitch Roob said.

&#8220We have to find the money somewhere, and we will take it from child welfare. We don't have any choice," Roob told The Associated Press.

Scott Tittle, a human services aide to Daniels, and John Ryan, general counsel for the Department of Children's Services, confirmed Roob's assessment.

The provision also would affect food stamp operations that have been privatized to varying degrees in 21 other states, plus five other states where such contracts are being considered, according to the National Governors Association, which is lobbying to defeat the provision.

However, a coalition of unions, anti-hunger groups and social services agencies have aligned themselves behind the language, saying in a letter to members of Congress that it's aimed at guarding the integrity of the food stamp program &#8220and ensure and fair and equal access and treatment for all applicants."

Daniels, a Republican, signed the contract with IBM, Dallas-based Affiliated Computer Services Inc. and other companies in December, after Democrats had won control of Congress the previous month.

It's designed to shift much of the application process for food stamps, Medicaid and other benefits from face-to-face office visits to call centers, faxes, interactive Web programs and other technologies. FSSA is keeping local welfare offices in every county.

On Monday, the Midwest administrator of the Food and Nutrition Service notified Roob that FSSA's rollout of the IBM contract has broken food stamp rules in some cases by bypassing state employees. FSSA has responded by ordering several steps including more training for agency staff.

Roob, in a letter last week to House Agriculture Committee Chairman Collin Peterson, D-Minn., said the provision would cost Indiana about $60 million to reimburse IBM, ACS and their partners for startup costs; $20 million to rehire hundreds of case workers that FSSA shed in March; $30 million to finish building a half-built call center; and millions of dollars in other costs.

Canceling the contract also would cost Indiana the 1,000 jobs that IBM promised as part of the contract and more than $8 million in computer equipment and services to the state, Roob said.