A coalition of state financial officers has uncovered approximately $225 million in alleged fraud across American schools over the past six years, according to a report obtained by Fox News Digital. The analysis, conducted by the State Financial Officers Foundation (SFOF) and Open the Books, identified nearly 90 cases involving embezzlement, fake invoices, inflated enrollment, bid-rigging, and kickbacks across 24 states and Puerto Rico.

The report examined Education Department Office of Inspector General (OIG) Semiannual Reports to Congress issued between October 1, 2019, and March 31, 2026. "All fraud is harmful, but defrauding education dollars meant to help kids learn and succeed is especially hideous," said SFOF CEO OJ Oleka. He added that the findings "only scratch the surface of the problem."

This investigation comes as the Trump administration prioritizes combating government fraud, with Vice President JD Vance leading a national "War on Fraud." The report highlights concerns about oversight of federal education spending. While approximately $67 million was ordered to be repaid through court rulings or settlements, the actual amount recovered remains unclear.

According to the report, only three of the nation's 20 largest federally funded school districts appeared in OIG records, suggesting potential gaps in federal oversight. "Stronger oversight of federal education dollars is more than some bureaucratic exercise — it is an economic and moral imperative," the report stated. "Families deserve assurance that the public institutions meant to serve their children are not being looted by the very officials entrusted to lead them."

John Hart, CEO of Open the Books, noted that such alleged fraud "hits us where it hurts most: America’s future leaders." He emphasized that wasted funds do not reach classrooms, impacting student outcomes.

Among the largest alleged fraud cases cited were:

  • Two now-closed online charter schools in Indiana reportedly received $44 million in excess funding due to inflated enrollment.
  • A tutoring company in Puerto Rico allegedly obtained $24 million by billing for services not provided.
  • In Florida, an information officer for Broward County Public Schools allegedly steered $17 million in contracts to a friend's business without competitive bidding, while personally profiting.
  • In Texas, former Houston Independent School District Chief Operating Officer Brian Busby and contractor Anthony Hutchison were found guilty of conspiracy and bribery related to a scheme involving over $6 million in school construction and grounds maintenance contracts, for which they received cash bribes and home renovations.

The report also detailed instances of embezzlement and theft in California and West Virginia. In California, the head of the Community Preparatory Academy charter school allegedly used $3 million in taxpayer funds for personal expenses, including travel and private school tuition for her children. A former fiscal services director in Magnolia School District allegedly embezzled nearly $16.7 million for personal purchases. In West Virginia's Boone County Schools, a former maintenance director stole $3.4 million through fraudulent invoices for undelivered supplies.

Chicago Public Schools agreed to return about $1 million in federal grant funding after an OIG review found the district could not adequately verify student eligibility for an Indian Education grant program.

The report concluded by advocating for the return of education to state and local levels, arguing that such officials are better equipped to understand community needs and ensure efficient use of funds. "Not only is that in keeping with the founders’ vision for a limited Executive Branch, but state and local officials are much better equipped to understand the needs of their communities, find efficiencies, innovate for better student outcomes and keep foxes out of the proverbial henhouse," the report said.

Fox News Digital reached out to Broward County Public Schools, Chicago Public Schools, Magnolia School District, and Boone County Schools for comment, as well as the Department of Education and the White House Fraud Task Force.