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

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
Professional Development Webinar
Inside PLCs: Proven Strategies from K-12 Leaders
Join an expert panel to explore strategies for building collaborative PLCs, overcoming common challenges, and using data effectively.
Content provided by Otus
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
Science Webinar
Making Science Stick: The Engaging Power of Hands-On Learning
How can you make science class the highlight of your students’ day while
achieving learning outcomes? Find out in this session.
Content provided by LEGO Education
Teaching Profession Key Insights to Elevate and Inspire Today’s Teachers
Join this free half day virtual event to energize your teaching and cultivate a positive learning experience for students.

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 Teachers Might Embrace Private School Choice. Here's Why
School choice is often discussed in terms of student impact. But what's in it for teachers?
10 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
School Choice & Charters Private School Choice Will Keep Expanding in 2025. Here's Where and How
The conditions are ripe in at least a dozen states for proposals to invest public dollars in private educational options for families.
12 min read
budget school funding
iStock/Getty
School Choice & Charters Trump Wants to Expand Private School Choice. Does the Public Agree?
Both fans and opponents of private school choice argue that public sentiment is on their side.
4 min read
Artistic image of multiple paths leading to a school building.
Laura Baker/Education Week via Canva
School Choice & Charters Voters Rejected Private School Choice. A Trump Administration May Push It Anyway
Pro-school choice initiatives failed in Colorado, Kentucky, and Nebraska.
6 min read
Photo illustration of school building and check boxes.
Education Week + Getty