Between 2006 and 2020, 1.4% of schools with a grant from the Charter Schools Program closed, compared to 2.3% of schools without the funding. And within 12 years, schools with a grant were about half as likely to close as those without one. 

But echoing the results of on the program, the Government Accountability Office found that states awarded about $152 million in grants to 638 charter schools that closed or never opened 鈥� representing about 14% of those that received grants.聽

Even so, charter school supporters welcomed the GAO鈥檚 main takeaway.

鈥淭his finding only underscores the need to increase funding for the [Charter Schools Program] so that more charter schools have access to start-up funds and planning grants,鈥� said Nina Rees, president and CEO of the National Alliance for Public Charter Schools. 

The report is the latest to respond to questions from policymakers about the program鈥檚 effectiveness as the Biden administration moves to implement tighter rules for grantees. Charter supporters argue the updated regulations, which seek to create more racially balanced schools and increase transparency, would limit growth. But critics say grant recipients waste taxpayer dollars when they close or never open. asked for both the GAO report and an earlier one from the U.S. Department of Education鈥檚 Office of the Inspector General. 

The Inspector General found that charter operators opened about half of the schools that they promised. Carol Burris, executive director of the Network for Public Education, wrote in an that the report also drew attention to 鈥渟loppy record keeping and weak oversight鈥� of the program.聽

The GAO focused on the sustainability of schools that opened, comparing similar schools that received grants with those that did not. 

It found that the pattern of grant-receiving schools remaining open longer was consistent regardless of grade levels and student poverty and whether the schools were urban, suburban or rural. The results also held true in the three states that received the most funding from the program 鈥� California, Florida and Texas.

California saw a more dramatic spike in schools closing after nine years if they didn鈥檛 receive a grant. Ana Tintocalis, spokeswoman for the California Charter School Association, attributed the difference to additional quality measures that grant recipients must meet to receive funding. 

Increased closure rates, she added, also likely stem from demographic shifts and the high cost of living and working in the state. 

鈥淭he biggest reasons for closures across the state tend to be difficulty securing facilities and low enrollment, which impact our urban schools the most,鈥� she said.

When GAO researchers interviewed officials in seven states, they found financial mismanagement and a lack of community support were also among the top reasons why charter schools close, whether or not they receive a federal grant.

A year ago, the National Association of Charter School Authorizers released highlighting how states have used grant funds to support school districts, mayor鈥檚 offices, nonprofits and other institutions that approve and renew charter school applications. 

Karega Rausch, president and CEO of the organization, said the GAO鈥檚 report reflects鈥渕eaningful changes鈥� in policies since then that have 鈥渓ed to increased accountability.鈥� 

In some cases, that means stopping a planned charter from opening,鈥� he said, and 鈥渃losing an existing charter school that doesn鈥檛 live up to their promises to students, communities and taxpayers.鈥�

The U.S. Department of Education on Wednesday posted two notices for grants under the Charter Schools Program 鈥� one for and another for those charter schools. The announcements reflect new rules meant to create more racially diverse schools and increase transparency when for-profit companies are involved in running them. The deadline is Aug. 5, giving states far less than the four months they鈥檝e had to apply in previous years.

The regulations represent a compromise between the Biden administration, which wanted to limit competition between a growing charter sector and traditional schools, and advocates who argued that such schools play an important role in meeting students鈥� needs after the pandemic.

Karega Rausch, president and CEO of the National Association of Charter School Authorizers, described the new rules as 鈥渨orkable,鈥� but said he remains concerned about a requirement that new charters be racially and socioeconomically diverse 鈥� or explain why they鈥檙e not. The rule says operators must note how their charter school won鈥檛 鈥渉amper, delay or negatively affect any desegregation efforts in the local community.鈥�

The provision 鈥減laces additional unnecessary and unwarranted burdens on schools proposing to serve large proportions of lower-income students and students of color,鈥� Rausch said. 鈥淎nd there is no clarity on what constitutes a valid desegregation effort and how applicants will know if any effort exists.鈥�

In March, the department posted a draft of the rule for the $440 million program, which provides start-up and expansion funding for charters. It sparked immediate backlash from the charter school community, with advocates arguing that it would squash growth, especially among smaller, independent operators unaffiliated with charter management organizations. Three Democrats in the Senate and a bipartisan group of mayors later joined opposition to the new rule, and charter supporters outside the U.S. Department of Education and the White House May 11, telling the Biden administration to 鈥渂ack off.鈥� Department officials say the rule is meant to increase accountability, prevent charters from closing because of insufficient demand and promote integrated schools.

鈥淲e are at our strongest as a nation when we embrace the rich diversity across our country,鈥� Anna Hinton, director of the program at the department, wrote in a Friday about the final version. 鈥淔ederal resources should not be used to increase racial or socioeconomic segregation and isolation.鈥�

Work from the Century Foundation contributed to the department鈥檚 revision. In 2019, the progressive think tank ways the program could increase diversity. While many urban charter schools predominantly serve Black or Hispanic students, others in suburban communities mostly white students, data shows.

Stefan Lallinger, a senior fellow at the organization, said not all charters 鈥渢ake proactive steps鈥� to attract a diverse student body. 

鈥淚n some instances, particularly in what are known as 鈥榳hite flight academies,鈥� some charter schools actually exacerbate segregation in a given region,鈥� he said, adding that while the new rules won鈥檛 prevent 鈥渉ypersegregated鈥� schools, they 鈥渞epresent real progress, and signal a growing recognition among education leaders that they should be part of the solution.鈥� 

In her blog post, Hinton said the department recognizes that some charters exist in racially isolated communities and that such schools won鈥檛 be 鈥渁t a competitive disadvantage for funding.鈥�

Carol Burris, executive director of the Network for Public Education, which is critical of charter schools, was the most outspoken in support of changes to the program.

鈥淯nscrupulous individuals who used the program for their enrichment will find it more difficult to do so,鈥� she wrote Monday in , highlighting requirements that charters disclose any contracts with for-profit entities and hold public hearings on proposed schools or expansions.

But in a win for the charter sector, officials won鈥檛 force charters to collaborate with district schools in order to receive funding 鈥� a requirement included in the original draft 鈥� but they still want to encourage partnerships. And they clarified that applicants can demonstrate demand for their programs in multiple ways, including waitlists. 

鈥淭he fact that they have taken some of our comments seriously indicates the power of advocacy,鈥� said Nina Rees, CEO of the National Alliance for Public Charter Schools. But she added that if the added documentation required and the small window to apply 鈥渄ampens interest鈥� in seeking the funds, that would be 鈥渧ictory for our opponents.鈥�

Yomika Bennett, executive director of the New York Charter Schools Association, was among those who rallied in Washington in May. 

鈥淎s far as I’m concerned, we’re not fully heard until the broken education system is fixed,鈥� she said. 鈥淪chool systems in cities across [New York state] and across the country are allowed to fail to educate students year after year, generation after generation. Officials, union bosses and critics attack charters, school choice and fight to keep students trapped in failing district schools.鈥�

But first his staff had to respond to the 鈥減andemic鈥檚 aftershocks,鈥� including student learning gaps and parents鈥� loss of work. Now with 106 students 鈥� 99% of them Black and Latino 鈥� the school has leaned on a $1 million grant from the federal Charter Schools Program for new technology, curriculum materials and furniture.

Schools like Long鈥檚 could have a much harder time getting off the ground if the Biden administration鈥檚 plans to revamp the $440 million grant program become final. The U.S. Department of Education鈥檚 would give preference to charters that districts view as potential partners and discourage new applications in communities with voluntary integration efforts. And if districts are losing enrollment 鈥� as they are in D.C. 鈥� new charter schools might not be well-received. 

鈥淎s a Black male who leads a single-site school in Washington D.C., this is extremely concerning,鈥� Long said. 

The rule could significantly alter a program that has given a boost to almost 4,100 existing charter schools 鈥� roughly 53%, according to the department. like KIPP and Success Academy Charter Schools are among the grantees.

Nina Rees, CEO of the National Alliance for Public Charter Schools, said the funds help launch new charters, which typically don鈥檛 receive state and local funding until they begin admitting students. The program is especially important for 鈥渁spiring school leaders of color鈥� who might not have financial backing from a foundation, she said. 

With nearly 65% of charters being single-site schools, Rees added, “these proposed regulations are a direct attack on new schools like this.鈥�

Congress has taken note of the backlash. North Carolina Rep. Virginia Foxx, ranking member of the House education committee, said in a statement that the 鈥渁dministration is manufacturing authority it doesn鈥檛 have to add unworkable requirements to these charter school grants.鈥� On Monday, the department to comment on the rule from Wednesday to next Monday after six senators for more time. In a statement to 社区黑料, the department said the 鈥渁dministration recognizes that there is a place for high-quality public charter schools and supports continuing important investments.鈥�

The debate comes amid a period of change and growth for the charter sector. Last school year, charters saw their largest jump in enrollment in six years 鈥� a 7% increase. Initial reports from states such as Alabama and Massachusetts show growth is continuing.

At the same time, Democrats have soured on charters in recent years after a long period in which they enjoyed bipartisan support. 

鈥淭he Biden administration breaks that tradition,鈥� said James Merriman, CEO of the New York City Charter School Center. 鈥淚t is clear that they looked around and decided that hewing closely to the wishes of their political patrons in the teachers unions was the way to go. Since they cannot kill us directly, they must resort to attacks on start-up funding.鈥�

Advocates say the department didn鈥檛 consult with them before writing the regulation. North Carolina Sen. Richard Burr鈥檚 letter noted that the department turned down his staff鈥檚 request to meet. 

鈥淚t doesn’t feel like charter school leaders are a valued part of the process,鈥� said Sonia Park, executive director of the Diverse Charter Schools Coalition, which promotes efforts to create charters that are more racially balanced. As written, the regulations would 鈥渕ake it very challenging for even a diverse charter to get approval if enrollment is declining in a district,鈥� she said.

She pointed to Prospect Schools in Brooklyn, New York, which opened in September 2020, and Atlas Public Schools in St. Louis, which opened last fall. Both designed their schools to reflect the make-up of their communities, but because enrollment is declining in their , the schools 鈥渨ould have had extreme difficulty in being approved鈥� today, she said.

The department stressed that U.S. Secretary of Education Miguel Cardona spoke last year at the National Charter Schools Conference and has gathered input from charter leaders throughout the pandemic. 

One organization the department heard from was The Century Foundation, a progressive think tank that in 2019 for ways the program could promote integration. Halley Potter, a senior fellow at Century and a co-author of the report, said she had a call with the education department before the draft of the rule was issued March 14.

Her report cited showing that charters are more likely than district schools to have student bodies that are more than half Black or Hispanic. In some pockets of the country, however, charter schools are more likely to draw higher-income, white families away from district schools, contributing to racial segregation. Studies have borne this out in and .

Derek Black, a law professor at the University of South Carolina, said in communities with long-standing integration efforts, charters often 鈥渙perate as an exit strategy for white families who are resistant  鈥� consciously or subconsciously 鈥� to more diverse environments.鈥�

Potter called the department鈥檚 proposal an effort to make sure charter schools 鈥渇it in with the context of [their] local community.鈥� 

鈥淚 really hope that we could see a broad base of charter supporters getting on board with this,鈥� she said.

鈥楢 lifeline鈥�

The , begun in 1994 under the Clinton administration, is a competitive grant that provides funding for start-up expenses. Smaller networks have also used funds to add more schools. When Uplift Education, based in Texas, expanded from Dallas to Fort Worth, where it would serve another 2,000 to 3,000 students, the federal grant program supported planning, expanding staff and family engagement efforts, said Rich Harrison, formerly the network鈥檚 chief academic officer. 

Under the proposed rules, states applying for the funds would have to prove that there is 鈥渟ufficient demand鈥� for charters, including support from the local community and evidence that district schools have more students than they can serve. 

In districts with declining enrollment 鈥� a trend across most urban districts nationwide 鈥� new charters would face a tougher time getting approved, said Harrison, now CEO of Lighthouse Community Charter Schools in Oakland. 

鈥淭he anti-charter rhetoric in Oakland is at an all time high,鈥� Harrison said, after the district voted in February to close seven schools. 

Community impact

Charter opponents argue that the grant program has been a vehicle for and financially benefiting for-profit entities. In a commentary for , Carol Burris, executive director of the Network for Public Education, called the new requirements 鈥渟ensible rules of the road鈥� and downplayed the rule鈥檚 impact. 

In a comment to the department, she pointed, for example, to Torchlight Academy, a North Carolina school and grant recipient operated by for-profit Torchlight Academy Schools. The state voted in March to revoke the school鈥檚 charter, citing alleged that benefited the family operating the school. The charter is appealing the state鈥檚 decision, saying it has cut ties with the family.

The proposal would require schools receiving the grant funds to pledge that they won鈥檛 contract with a for-profit organization to assume most or all of the operation of the school. Grantees would also have to make those agreements public.

Karega Rausch, president and CEO of the National Association of Charter School Authorizers, said he appreciates the focus on transparency. But he and other charter advocates have problems with a requirement that states applying for the funds conduct a 鈥渃ommunity impact analysis.鈥� Such a process would have to take 鈥渋nto account the student demographics of the schools from which students are, or would be, drawn to attend the charter school.鈥� 

Rausch said local authorizers, not state officials, should be responsible for determining whether there is adequate demand for a charter school. He added that the department is sending a mixed message.

鈥淵ou can鈥檛 simultaneously say that it鈥檚 a good thing to listen to communities and families and then federally impose specific kinds of schools on communities,鈥� he said.

The education department would give preference to charter applications in which current and former educators are deeply involved in leadership and development of the schools. Another priority for the department is that districts and charter operators work together on issues such as joint teacher training or transportation. At least one district school would have to provide a letter in support of working with the charter. 

Rausch said that provision gives the districts leverage, adding that charter demand has increased because they 鈥渕eet the needs of families鈥� who feel their children aren鈥檛 being well-served in traditional schools.

鈥淲e are all in favor of collaborative efforts, but it鈥檚 got to go both ways,鈥� he said. 鈥淲e don鈥檛 want us versus them. That is old politics.鈥�

Citing the pandemic鈥檚 disproportionate impact on Black, Latino and low-income students 鈥� and reports that charters were quicker than traditional schools to provide virtual instruction during school shutdowns 鈥� Bloomberg鈥檚 statement said, 鈥淐harter schools can help spread opportunity more equitably to students of all backgrounds nationwide.鈥�

With plans to add 150,000 new seats for students, Bloomberg Philanthropies will award grants to new and existing nonprofit, non-virtual charter schools in 20 metro areas, provide funding to launch new models, and support efforts to create more racial diversity among charter teachers and leaders. Grants can also be used to build and upgrade facilities. 

Michael Petrilli, president of the conservative Thomas B. Fordham Institute, which published on the charter sector鈥檚 response during the early months of the pandemic, called the news encouraging and 鈥減otentially transformative.鈥�

鈥淭he evidence base continues to build showing that urban charter schools are highly effective, and that their growth has positive impacts on students in nearby traditional public schools as well,鈥� he said. 鈥淚t鈥檚 the closest thing we have in education to a win-win proposition. Thank you, Mayor Mike.鈥�

As New York mayor from 2002 to 2013, Bloomberg supported exponential growth in the city鈥檚 charter sector, opening more than 150 charter schools. The foundation鈥檚 announcement follows recent data showing that during the pandemic, the charter sector has seen its highest period of growth since 2015. Charter schools, however, continue to face criticism from Democrats, who argue they drain resources 鈥� and students 鈥� from district schools. The Biden administration recommended no increase in funding for the $440 million federal Charter School Program for fiscal year 2022, while the House proposed a $40 million cut from the budget for charters. The Senate has not yet acted on the budget. Some states, such as California, have also taken steps to limit charter growth in recent years. 

Aside from the New York City region, the foundation is not yet confirming the other sites slated to receive grants. But according to the announcement, the cities chosen 鈥渙ffer a strong opportunity for serving the most in-need children coupled with conditions that could facilitate charter growth.鈥� 

James Merriman, CEO of the New York City Charter School Center, which supports new and existing schools, said Bloomberg鈥檚 policies, such as allowing charters to co-locate in public school buildings, allowed the sector to flourish. 

鈥淚鈥檓 thrilled to see that their focus will be on high quality,鈥� he said. 鈥淚t鈥檚 about having more great schools 鈥� not just having charters for the sake of charters.鈥�

In cities such as Los Angeles, however, co-location arrangements have and are among the reasons teachers unions have lobbied against charter growth.

In his , which ran Wednesday, Bloomberg took shots at teachers unions, recalling United Teachers Los Angeles President Cecily Myart-Cruz鈥檚 that 鈥渒ids didn鈥檛 lose anything鈥� because of remote learning. 

鈥淲hat nonsense. How about reading, writing and arithmetic, the critical skills we are funding schools to teach?鈥� Bloomberg wrote, adding that because charter schools generally don鈥檛 have union contracts, they have more flexibility and can 鈥渃reate a culture of accountability for student progress week to week that many traditional public schools are missing.鈥�

Carol Burris, executive director of the Network for Public Education and a leading critic of charters, countered Bloomberg鈥檚 praise of the charter sector, noting that Success Academy, New York鈥檚 largest charter network, last school year. Her two grandchildren, she said, were able to return to in-person learning in district schools.

鈥淚 am deeply disappointed that Mr. Bloomberg would take the tragedy of COVID and use it as an excuse to undermine public schools,鈥� she said.

United Federation of Teachers President Michael Mulgrew added his concerns that charter schools 鈥減ick and choose their students, rather than … take the responsibility to educate children.” He that few students who enrolled in Success Academy in 2007 as first graders remained at the school to be part of its first graduating class.

While the announcement doesn鈥檛 mention charter authorizers, it does mention partnering with local and national organizations. Karega Rausch, president and CEO of the National Association of Charter School Authorizers, said there鈥檚 room for improvement in the way authorizers evaluate new applications so the process isn鈥檛 so “burdensome and bureaucratic鈥� but also ensures a school has a 鈥渉igh chance of doing great things.鈥�

Nina Rees, president and CEO for the National Alliance for Public Charter Schools, said Bloomberg鈥檚 announcement is timely, not only because of increasing parent demand, but also due to efforts in many states to limit growth and the federal government鈥檚 flat funding of the charter program for the past five years.

But Merriman said whether the federal government is supportive of charters is less important than the climate at state and local levels. 

When former President Barack Obama was in office, and John King and Arne Duncan were education secretaries, that 鈥渄idn鈥檛 make a difference to Democrats in statehouses,鈥� he said. 

鈥淐harter policy has always been at the state and local level. That鈥檚 what has mattered.鈥�