U.S. News
Union Payments Linked to Reports Opposing School Choice
Clear Facts
- The American Federation of Teachers (AFT) paid the Private Equity Stakeholder Project (PESP) $66,000 from June 2024 to May 2025 for “project expense reimbursement.”
- PESP released reports coinciding with these payments that were critical of school choice and private investment in education.
- Research indicates school choice programs improve student performance, especially in low-income areas, and private schools often achieve better outcomes with less funding.
Public filings show that the American Federation of Teachers directed significant funds to the left-leaning Private Equity Stakeholder Project. These payments closely matched the timing of two major reports by PESP targeting school choice programs and private investment in education.
One report released in June 2025 raised concerns about the potential negative effects of “privatization” in schools, warning that outsourcing could undermine the school environment and increase staff turnover.
“Unfortunately, outsourcing roles to private companies weakens the school environment, introducing profit motives to spaces that should prioritize student wellbeing over all else,” the report stated.
“Students thrive on stability rather than efficiency – in pursuit of profit, private equity firms tend to increase turnover.”
Another PESP report in September criticized the national school voucher program, echoing objections from Democratic governors and raising concerns about the use of public funds for schools with different values and track records.
“Scholarships could be used to send students to religious schools that have more room to discriminate, troubling advocates for the separation of church and state,” the September report reads.
The report admitted, “private schools tend to produce better educational outcomes for students overall” but argued reform should focus on public schools.
PESP asserted the voucher programs “come at the cost of public school education” and “actually benefit wealthy families more than anyone else.”
Despite strong claims against private equity’s role, PESP admitted “the transfer of federal dollars to private equity firms invested in K-12 education is difficult to track,” though it speculated this would likely increase with new legislation.
AFT has long opposed school choice, promoting the view that defending public education requires blocking such reforms. However, public schools continue to fall behind private and charter counterparts on key performance measures.
“These new filings expose how Randi Weingarten’s American Federation of Teachers funneled $66,000 to the Private Equity Stakeholder Project in 2024 and 2025, which then published two reports attacking private investment in K-12 education,” Eric Vetimiglia executive director of Pinpoint Policy Institute, told the DCNF.
“This pay-to-play scheme, which has become a pattern for PESP, lets unions launder dues money from America’s teachers to push a political agenda aimed at sabotaging school choice. All the while, PESP hides the fact that the union is footing the bill!”
Academic studies have shown school choice initiatives can reduce achievement gaps for low-income students, with performance rising in cities where charter school enrollment surpasses one-third of students.
For example, Wisconsin’s school choice programs were found to deliver stronger academic outcomes for less cost per child.
The AFT previously paid PESP $132,000 between July 2023 and June 2024 for similar “project expense reimbursements.” Soon after, AFT published a report with recommendations on labor standards, citing PESP’s work, which PESP amplified in its own channels.
PESP has a pattern of receiving union donations followed by the issuance of reports that support its donors’ viewpoints, including partnerships with other major labor organizations.
Neither AFT nor PESP responded to requests for comment.
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