The CHARTER Act would prohibit charter schools that receive federal funding from contracting with for-profit companies to operate, manage, or oversee school operations. The bill targets a loophole created when for-profit charter operators restructured themselves as nonprofit operators of for-profit entities following a 2006 court ruling that found for-profit charter schools ineligible for federal funds under education law. Under this legislation, charter schools could still contract with for-profit vendors for ancillary services like food, transportation, facilities maintenance, and supplies, but not for core administrative functions such as curriculum development, budget management, or staff hiring and supervision. The restrictions would apply to all new contracts signed after the law's enactment and would take effect three years later, affecting charter schools receiving funding under the Elementary and Secondary Education Act and the Individuals with Disabilities Education Act.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.