School Choice & Charters

Federal Funding and Charter School Closures: What the Latest Government Data Show

By Libby Stanford — October 13, 2022 2 min read
Illustration of weighing funding against schools remaining open
  • Save to favorites
  • Print

A new report from the Government Accountability Office mirrors data on the closure rates of federally funded charter schools that the Biden administration cited in its controversial push for more oversight when it comes to charter school funding.

But it also finds that, overall, charters that received federal money were less likely to close within five years than those that did not.

The report focused on the U.S. Department of Education’s Charter School Program, the largest federal grant program for charter schools, which helps fund schools in their first three years of operation. Of the 6,000 schools that received funding for the program from fiscal year 2006 through 2020, 14 percent either never opened or closed, according to the report.

The grants awarded in that time period totaled $2.5 billion, according to the GAO. In 2020, the federal government allocated $440 million to the grant program, which is designed to help create and replicate high-quality charter schools; disseminate best practices to charters; and expand opportunities for underserved students to attend them.

The grants have been a point of contention in Washington. In March, the Education Department released proposed changes to the program that drew 25,000 public comments and the ire of charter school advocates who said the changes would add unnecessary red tape to the charter school funding process and discourage incoming charter schools from seeking funds. The finalized rules ultimately required incoming charters to prove they aren’t managed by for-profit companies and gather community input during the application process.

At the time, Education Department officials said that the department’s own analysis of the data shows 15 percent of schools that received the grants either never opened or closed, using the data as justification for its revisions to the grant program’s rules. The new GAO report found similar data with 636, or 14 percent, of schools that received the funds either never opening or closing from 2006 to 2020. Those schools received a total of $152 million through the grant program, according to the report.

Kansas, Pennsylvania, Illinois, South Carolina, Massachusetts, and Florida had the highest rates of charter schools that closed or never opened, according to the report. The closure rates went as high as 30 percent in Kansas and 60 percent in Pennsylvania.

However, the report also found that schools that received a grant between 2006 and 2020 were 1.5 times less likely to close within five years than schools that did not. Specifically, 2.3 percent of schools that did not receive a grant closed compared to the 1.4 percent of schools that did receive grants and closed within five years.

Probability of Charter Schools Closing

Chart image.

SOURCE: U.S. Government Accountability Office

Events

English-Language Learners Webinar AI and English Learners: What Teachers Need to Know
Explore the role of AI in multilingual education and its potential limitations.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Mathematics Webinar
Pave the Path to Excellence in Math
Empower your students' math journey with Sue O'Connell, author of “Math in Practice” and “Navigating Numeracy.”
Content provided by hand2mind
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
Combatting Teacher Shortages: Strategies for Classroom Balance and Learning Success
Learn from leaders in education as they share insights and strategies to support teachers and students.
Content provided by DreamBox Learning

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School Choice & Charters Opinion A School Without Bells or Report Cards. Can It Fly?
Students at one private school earn "learning credits" rather than traditional grades. What does that look like?
8 min read
Image shows a multi-tailed arrow hitting the bullseye of a target.
DigitalVision Vectors/Getty
School Choice & Charters Charter Schools Find Quiet Support in a World Focused on Private School Choice
As Republicans and Democrats fight over private school choice, charter schools are left in the middle.
7 min read
Robert Hill, Head of School at Alice M. Harte Charter School, talks with students in New Orleans on Dec. 18, 2018.
Robert Hill, Head of School at Alice M. Harte Charter School, talks with students in New Orleans on Dec. 18, 2018. Charter schools have taken a backseat in school choice debates to policies expanding private school choice.
Gerald Herbert/AP
School Choice & Charters Q&A Here's What's Next for Charter Schools, According to Their Chief Advocate
Nina Rees, head of the National Alliance for Public Charter Schools, sat down with Education Week to discuss the future of charter schools.
7 min read
Nina Rees walks on stage during the National Charter Schools Conference held from June 18 through June 21, 2023, at the Austin Convention Center in Austin, Texas.
Nina Rees walks on stage during the National Charter Schools Conference held from June 18 through June 21, 2023, at the Austin Convention Center in Austin, Texas.
Courtesy of McLendon Photography
School Choice & Charters Private School Choice Programs Are Having a Moment. But It's Not All Smooth Sailing
Several states have passed private school choice programs with universal eligibility. But some have seen road bumps as they implement them.
9 min read
Illustration of a schoolhouse in a shopping cart
Getty Images