Teachers’ Union Funds Organization Behind Anti-School Choice Campaign

Teachers’ Union Payments to Advocacy Group Linked to Anti-School Choice Reports

Financial records have revealed that payments from the American Federation of Teachers (AFT) to the Private Equity Stakeholder Project (PESP) appear to coincide with the release of reports criticizing school choice initiatives, raising questions about potential conflicts of interest in education policy debates.

Department of Labor filings show the AFT paid PESP $66,000 between June 2024 and May 2025 for “project expense reimbursement.” Shortly afterward, in June 2025, PESP published a report warning about education “privatization,” claiming it introduces profit motives that prioritize efficiency over student well-being.

“Students thrive on stability rather than efficiency – in pursuit of profit, private equity firms tend to increase turnover,” stated the PESP report, arguing that outsourcing educational roles to private companies undermines school environments.

In September, PESP released another report specifically targeting the One Big Beautiful Bill’s proposed national school voucher program. The report cited Democratic governors’ concerns that some private schools might discriminate against LGBTQ teachers and that tax dollars could fund schools without proven educational track records.

While acknowledging that “private schools tend to produce better educational outcomes for students overall,” PESP nevertheless claimed these options “are not necessarily better” and argued voucher programs “come at the cost of public school education” and primarily benefit wealthy families.

The timing of these reports has drawn scrutiny from education policy experts. Eric Vetimiglia, executive director of Pinpoint Policy Institute, described the arrangement as a “pay-to-play scheme” that allows unions to “launder dues money from America’s teachers to push a political agenda aimed at sabotaging school choice.”

This isn’t the first instance of such financial relationships between the AFT and PESP. Records show the teachers’ union previously paid PESP $132,000 between July 2023 and June 2024. Following those payments, AFT released a report on “Managing Labor Risks in Private Equity” that cited PESP’s work and was subsequently promoted by the advocacy group.

The PESP reports stand in contrast to recent academic research on school choice outcomes. A 2024 study found that school choice programs can help reduce achievement gaps between low-income students and their peers, with student performance improving in cities where at least 33% of low-income students attend charter schools.

Another report from August demonstrated that Wisconsin’s school choice programs deliver better educational outcomes despite receiving less funding per pupil than traditional public schools.

According to reporting by the Washington Examiner, PESP has established a pattern of accepting donations from labor unions and subsequently publishing reports that appear to advance those unions’ interests. Similar arrangements have allegedly occurred with the Writers Guild West, United Auto Workers, and the Service Employees International Union.

The AFT, led by president Randi Weingarten, has consistently opposed school choice initiatives, arguing they undermine public education. However, critics point to persistent performance gaps between public schools and their private and charter counterparts as evidence that alternative education models deserve consideration.

Neither the American Federation of Teachers nor the Private Equity Stakeholder Project responded to requests for comment on their financial relationship or the timing of the published reports.

The controversy highlights the complex intersection of education policy, labor interests, and advocacy in the ongoing national debate over school choice and education reform.