The American Federation of Teachers (AFT) seems to have made payments to the advocacy group Private Equity Stakeholders Project (PESP) that align with a negative report on school choice released by PESP, according to findings from the Daily Caller News Foundation.
Department of Labor records indicate that AFT reimbursed PESP $66,000 for project expenses between June 2024 and May 2025. In June 2025, PESP is expected to publish a report expressing concerns over the “privatization” of education, suggesting it could lead to significant issues for school districts.
The report claims, “Outsourcing roles to private companies undermines school environments, introducing profit motives where student welfare should be paramount.” It goes on to say that “students benefit from stability rather than efficiency,” warning that private equity firms often focus more on profits, potentially compromising educational quality.
A subsequent PESP report, released in September, was critical of a new national school voucher program called the One Big Beautiful Bill. It raised issues noted by Democratic governors, such as the possibility that some private schools could refuse to employ LGBTQ teachers and that taxpayer money might support institutions that don’t effectively educate their students.
The September report also expressed concerns that “scholarships might allow students to attend religious schools, raising worries among advocates for the separation of church and state.” Interestingly, it acknowledged that “private schools generally yield better educational outcomes” but maintained that these alternatives aren’t necessarily superior. The recommendation, rather, is to focus on reforming public schools, claiming the voucher initiative “benefits wealthier families more than others.”
Requests for comments from both AFT and PESP went unanswered.
PESP also exhibits uncertainty towards the contention that vouchers would mainly benefit private equity firms. They admitted that tracking the flow of federal funds to these firms in K-12 education is complex but believe that amount could rise with the implementation of the Big Beautiful Act.
The AFT union has long been outspoken against school choice initiatives under the pretenses of protecting public education. Still, there’s a notable disparity in performance, as public schools often lag significantly behind private and charter institutions.
Eric Vetimiglia, from the Pinpoint Policy Institute, commented that the recent filings “show how AFT funneled funds to private equity stakeholder projects and then issued reports denouncing private investment in K-12 education.” He described this as a “pay-to-play system,” where unions use teachers’ dues to push a political agenda that disrupts school choice.
Research from 2024 suggested that school choice initiatives could actually lessen the achievement gap for low-income students, revealing that in areas where at least 33% are enrolled in charter schools, there were improvements in student outcomes.
Another August report presented to the Daily Caller News Foundation highlighted Wisconsin’s school choice program, which brought about better educational outcomes for students at a lower cost.
In a previous financial year, AFT had allocated a total of $132,000 to PESP for project costs. Shortly thereafter, AFT released a report that referenced PESP’s findings, urging public pension fund trustees to motivate private equity firms to adopt union practices and facilitate contract negotiations, asserting that neglecting such “responsible employee labor standards” poses significant risks to investors.
Moreover, PESP has a history of receiving backing from unions, releasing reports that seem to favor its donors. This was noted in findings by the Washington Examiner, highlighting similar affiliations with various labor unions.
