State officers identify $225 million in school fraud

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A coalition of state financial officers and Open the Books analyzed Education Department Office of Inspector General semiannual reports from Oct. 1, 2019, to March 31, 2026, and identified roughly $225 million in alleged fraud across nearly 90 cases. The cases, reported in 24 states and Puerto Rico, include embezzlement, fake invoices, inflated enrollment, bid-rigging and kickbacks; notable amounts include $44 million for inflated online charter enrollments and $24 million billed by a Puerto Rico tutoring company. About $67 million was ordered repaid, but actual recoveries are unclear, prompting calls for stronger oversight and reforms.

Report finds about $225 million in alleged school fraud