A Bill to Cap Federal Funding for For-Profit Charter Networks Serving K-5
Limits federal pass-through funding to for-profit operators of K-5 charter schools to 50% of per-pupil cost.
Federal Title I and IDEA funds passed through to charter management organizations operating for profit are capped at 50% of per-pupil expenditure for K-5 programs.
Operators must publicly file annual operating margins and executive compensation.
$8 million in administrative overhead for the Department of Education.
Department of Education may claw back excess pass-through.
Mechanical parts, sourced & timed
Use this as your pre-round checklist. Memorize the source citation. Time yourself to the delivery target.
- Bill / Number
- H.R. 555 — A Bill to Cap Federal Funding for For-Profit Charter Networks Serving K-5
- Funding source
- $8M ED admin overhead, no new programmatic dollars.
- Timeline
- Compliance with next federal funding cycle.
- Realistic — disclosure-based regulation.
- Enforcing agency
- Department of Education.
- Yes — ED already audits Title I and IDEA pass-through.
- Penalty for non-compliance
- Clawback of excess pass-through funds.
- Source citation
- NEPC, Miron et al. (2021), 'Profiles of For-Profit and Nonprofit EMOs' — nepc.colorado.edu.
- Delivery time (read aloud)
- 1:05 (65s)
Capping pass-through limits parent choice for families stuck in failing district schools.
The cap is on operator *margin*, not enrollment. Stanford CREDO (2023) found nonprofit charters outperform for-profit charters on test growth — the bill preserves choice while improving quality.