Rosa L. DeLauro
07/01/2024 | Press release | Distributed by Public on 07/01/2024 14:35
DeLauro Introduces Legislation to Rein in For-Profit Charter Schools
Today, Congresswoman Rosa DeLauro introduced the Championing Honest and Responsible Transparency in Education Reform (CHARTER) Act, legislation that would amend the Elementary and Secondary Education Act (ESEA) and the Individuals with Disabilities Education Act (IDEA) to ensure funds made available under these Acts are not awarded to charter schools that enter into contracts with a for-profit entity for operating, overseeing, or managing the charter school.
"For-profit companies are disguising themselves as schools, trading in taxpayer funds for boosted profits at the expense of our children's learning," said Congresswoman DeLauro."The CHARTER Act would ensure that for-profit education management organizations can no longer jump through loopholes that have given them access to funding that has always been intended for nonprofit entities. Educating our children should be for their enrichment and future prosperity - not to maximize the profits of their owners and investors. I am proud to be joined by Congresswoman Bonamici in introducing legislation to close this loophole for good." "Public education funding should be dedicated to supporting students and enhancing their learning experience,"said Congresswoman Bonamici. "Unfortunately, existing loopholes allow for-profit entities to get taxpayer funds through the nonprofit charter schools they operate. Those for-profit entities then profit from federal funding that's been siphoned away from programs that benefit students. Thank you to my colleague Congresswoman DeLauro for joining me on this legislation to crack down on this unscrupulous practice."The CHARTER Act, introduced by U.S. Representatives Rosa DeLauro (CT-03) and Suzanne Bonamici (OR-01), would amend ESEA and IDEA to ensure no funds made available under those Acts may be awarded to a charter school that enters into a contract with a for-profit entity for operating, overseeing, or managing the charter school.
"For too long, for-profit entities have been allowed to operate in the shadows, operating nonprofit charter schools as facades to sweep in federal and local taxpayer dollars,"said Carol Burris, Executive Director of the Network for Public Education."Whether operating low-cost storefront schools, low-quality online schools, or leasing their real estate to the charters they run, their intent and purpose is to cash in on kids at taxpayers' expense. The Network for Public Education strongly supports this important bill to bring further transparency to the charter sector and send more tax dollars to classrooms." "The AFT has long believed that charter schools have a place in the public-school ecosystem as incubators of innovation that can supplement and support traditional public schooling-and we represent educators in hundreds of charters across the country,"said American Federation of Teachers President Randi Weingarten. "We believe charters should be held to the same rigorous standards as other public schools by requiring transparency, community involvement and a commitment to serve all students-including differently abled students. Too often, for-profit charters and management companies are setup to evade those standards and hurt existing public schools and the students they serve. This bill would take on reckless profiteers who are trying to replace public schools with for-profit charters and turn them into money making machines. I commend Reps. DeLauro and Bonamici for standing up for fairness and accountability by ensuring that federally funded charter schools serve the interests of students and families, not fly-by-night management entities seeking to divert public money for their own ends."
A fact sheet of the legislation is available here. The bill text is available here.
The bill is endorsed by the Network for Public Education, the American Federation of Teachers, and the National Education Association.