CHARTER Act

Summary#

This bill would change the Elementary and Secondary Education Act (ESEA) and the Individuals with Disabilities Education Act (IDEA). It would stop charter schools that get money under those Acts from entering contracts with for-profit companies when the for-profit would operate, manage, or oversee the school. Charter management organizations or other nonprofit groups also could not hire a for-profit to do that work on the school’s behalf. The bill says schools may still contract with for-profit or nonprofit companies for services like food, payroll, facilities maintenance, transportation, classroom supplies (such as textbooks), and other ancillary services. The bill adds the ESEA charter school definition into other parts of law and repeats that the terms “elementary” and “secondary” school mean nonprofit institutions. The bill would take effect three years after enactment and applies only to contracts entered into, renewed, or extended on or after the date of enactment.

What it means for you#

• If you run or work at a charter school that receives ESEA or IDEA funds, your school could not sign, renew, or extend a contract that gives a for-profit company the role of operating, managing, or overseeing the school.
• Charter management organizations that receive federal funds could not have a for-profit operate or manage a school on their behalf.
• Schools could still hire companies, including for-profit firms, for specific services such as food service, payroll, building maintenance, transportation, classroom supplies, and other ancillary services.
• The changes would not start until three years after the bill becomes law, and they would only apply to contracts entered into, renewed, or extended on or after the enactment date.

Expenses#

No publicly available information.

Proponents' View#

The bill’s sponsors say it is meant to make sure federal education funds go to nonprofit schools as intended and to stop private companies from extracting profits by running or managing charter schools. The bill’s findings state that past practices allowed for-profit operators to receive public funds through nonprofit structures, and that taxpayers and students should not have public resources diverted for private profit.

Opponents' View#

No publicly available information.