The National Center for Charter School Accountability, which is a project of the Network for Public Education, released the first of a three-part series of a national report on the decline of the charter school sector.
Written by NPE Executive Director Carol Burris, the report will be released in three sections. The first one, Decline, documents the startling halt in charter school growth. Once heralded as the salvation of American education, charter schools are no longer growing. Despite the lack of demand for new charters, the Trump administration recently increased the annual appropriation to the federal Charter Schools Program from $440 million every year to $500 million a year.
The report will be released in three parts: Decline, Disillusionment, and Costs. This is the first part.
Burris begins:
In 1992, City Academy — the nation’s first charter school — opened in St. Paul, Minnesota. Created and led by experienced teachers, it was designed as an alternative school for students struggling in traditional settings. With just 53 students, City Academy embodied the original vision for charter schools: small, teacher-run schools within public districts that tested innovative strategies to reach hard-to-teach kids.
When successful, those strategies would inform and strengthen public education as a whole.
That was the idea supported by American Federation of Teachers President Al Shanker in 1988.
But by the early 1990s, Shanker had become disillusioned. As his wife Edith later explained, “Al became increasingly critical of charter schools as they moved further from their original intent.
He warned that without well-crafted legislation and public oversight, business interests would hijack the charter school concept, ‘whose real aim is to smash public schools.’”
His warning proved prophetic. In the decades since, real estate investors, for-profit management companies, and corporate charter chains have taken over what began as teacher-led experiments. Today, more than fifty charter trade associations—some state-based, others national—lobby aggressively to block charter school oversight and resist any legislative reform. The National Alliance for Public Charter Schools reported over $26.5 million in income in 2023, with more than $28 million in assets. The California Charter Schools Association reported nearly $13 million in revenue that same year. These organizations are not only advocates but powerful lobbyists, intent on protecting all existing charters and promoting unlimited growth.
During the Obama years, federal initiatives like Race to the Top fueled charter expansion with strong bipartisan support. But that coalition has since un-raveled. While Republican enthusiasm for any alternative to public education— charters, vouchers, homeschools — has surged, Democratic support has eroded, particularly as concerns grow over transparency, equity, and privatization.
Today, the charter sector stands at a reckoning point. Growth has slowed.
For-profit models are expanding. The push to create religious charter schools has fractured the movement from within. Meanwhile, charters are now competing not just with public schools and each other, but with a growing network of voucher-funded private schools and publicly subsidized homeschools.
This report, released in three parts — Decline, Disillusionment, and Costs —examines the trajectory of the charter school movement. It contrasts the promise of its early days with its complex, often troubling reality today.
As the charter experiment enters its fourth decade, the question is no longer what charter schools were meant to be — but whether they can still be reformed in order to serve the public good….
Burris questions why the federal government–which claims to be cutting costs and cutting unnecessary programs–continues to send $500 million every year to a sector that is not growing and does not need the money. DOGE eliminated most employees of the U.S. Department of Wducation but left the federal Charter Schools Program untouched.
The charter school sector stands at a critical juncture. Once heralded as a bold experiment in innovation and opportunity, it is now characterized by stagnation, retrenchment, and rising school closures. Between 2022 and 2025, growth has nearly halted, and closures — often sudden and disruptive— are accelerating. Federal investment, rather than adapting to the sector’s shifting realities, has ballooned to half a billion dollars annually, funding schools that never open, quickly fail, or operate with minimal oversight and accountability.
As the data show, under-enrollment is the primary driver of failure. There is no crisis of unmet demand. Hundreds of charter schools, according to NCES data, can’t fill even a single classroom. The frequently cited “million-student waitlist” has been thoroughly debunked, yet continues to be invoked to justify ever-increasing taxpayer support.
Meanwhile, mega-charters and online schools like Commonwealth Charter Academy siphon vast sums of public dollars while delivering dismal academic outcomes. Others, like Highlands Community Charter School, have defrauded taxpayers and exploited students under the guise of second chances.
With enrollment stagnating and oversight failing, taxpayers should ask: Why are we continuing to fund with federal dollars an expansion that isn’t happening? It is time for Congress and the Department of Education to reassess the Charter Schools Program. Federal dollars should no longer subsidize a shrinking and troubled sector. Instead, they must be redirected toward accountable, transparent, and student-centered public education.
Part II of this report, Disillusionment, to be published this fall, will further explain the reasons behind the sector’s decline.
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