Federal charter school funding loosened, oversight tightened—and single-sex schools get a pass

What it does

This bill amends federal charter school funding rules to give states and charter operators more flexibility in how they use federal money and design programs. It increases funding percentages for certain charter activities, allows schools to use federal grants for program expansion and facility improvements, permits advance payments of federal funds, and reduces paperwork and regulatory requirements on charter schools and state administrators.

Why we flagged it

The bill's core mechanism is to increase federal funding flexibility for charter schools while simultaneously reducing regulatory and paperwork burdens on state entities and charter operators. It is fundamentally a deregulation measure wrapped in funding expansion.

What the text implies

• Advance payments of federal funds (2 CFR 200.305) shift cash-flow risk from charter operators to federal/state treasuries; if a charter school fails mid-grant, recovery of unspent advance payments may be difficult.
• Removal of 'cohesive strategy' requirement and peer-review rigor in subsection (5) reduces quality gates; states may approve expansion of low-performing charters if they meet minimal statutory criteria.
• Single-sex school carve-out (subsection 3(2)(3)) may enable sex-segregated education in federally funded charter schools, a practice that conflicts with Title IX principles and may disproportionately affect LGBTQ+ students.
• Reduction in regulatory requirements (Section 6) may weaken accountability for how federal funds are spent, particularly on facility improvements and operational costs now eligible under expanded definitions.
• Expansion of eligible uses to include 'operations and management' costs (subsection 3(7)) broadens the definition of allowable spending, potentially enabling charter operators to use federal funds for general operating expenses rather than startup or replication.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill increases flexibility and funding for charter school expansion, which may benefit families seeking alternatives to traditional public schools, but it also reduces oversight and accountability mechanisms (paperwork, regulation, peer review rigor) that protect public funds and ensure quality. The net effect on student outcomes and equitable access depends on state implementation and the quality of expanded charter programs.

Who stands to gain

• charter school operators and management organizations
• charter school facilities developers and contractors
• educational technology and curriculum vendors (academic subscriptions)

Named in the bill

Elementary and Secondary Education Act of 1965, U.S. Department of Education, State entities (education agencies), Charter school operators, Charter management organizations, 2 CFR 200.305 (advance payment regulations), 31 CFR 205.12 (funding techniques)

Where it stands

6 cosponsors: 4 Democrats, 2 Republicans.

• Jan 15, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jan 15, 2026 — Referred to House Committee on Education and Workforce · Congress.gov: “Referred to the House Committee on Education and Workforce”
• Jan 21, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jan 21, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

8 lobbying clients named this bill on 8 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $920,880 in lobbying spend. A filing names 4 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 88% of bills with at least one filing.

Ryan Mackenzie, the sponsor, reported $1,066,117 in PAC receipts in the 2026 cycle.

• AFL-CIO — $760,000 on 1 filing
• National Alliance for Public Charter Schools — $60,880 on 1 filing
• National Alliance for Public Charter Schools — $50,000 on 1 filing
• Charter School Lenders Coalition — $20,000 on 1 filing
• National Association of Charter School Authorizers — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.