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Limiting Profit Extraction in Charter Schools Receiving Federal Funds.

This Act prevents federal education funds from being awarded to charter schools that contract with for-profit entities for essential management or operational services. The goal is to ensure that taxpayer money designated for public education, including services for students with disabilities, is spent directly on students' needs rather than being diverted as profits to private management companies. This aims to increase transparency and resource efficiency in public charter schools.
Key points
Charter schools receiving federal funding are prohibited from contracting with for-profit entities for core functions like administration, curriculum development, or faculty management.
The legislation aims to stop the depletion of publicly funded resources due to profit extraction by private operators.
Schools can still hire for-profit companies for ancillary services such as food, transportation, facilities maintenance, or supplies.
The changes take effect in three years but apply to any contract entered into, renewed, or extended on or after the date of enactment.
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Additional Information
Print number: 118_HR_8886
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Process start date: 2024-06-28
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

CHARTER Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8886.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-06-28.

What are the main provisions?

Key points include:

  • Charter schools receiving federal funding are prohibited from contracting with for-profit entities for core functions like administration, curriculum development, or faculty management.
  • The legislation aims to stop the depletion of publicly funded resources due to profit extraction by private operators.
  • Schools can still hire for-profit companies for ancillary services such as food, transportation, facilities maintenance, or supplies.
  • The changes take effect in three years but apply to any contract entered into, renewed, or extended on or after the date of enactment.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. DeLauro, Rosa L. [D-CT-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education