Report Finds Over $225 Million in Public School Fraud Across 24 States and Puerto Rico

Open the Books released a report on Saturday documenting more than $225 million stolen in public school fraud over a seven-year period. The fraud occurred in 24 states and Puerto Rico. Open the Books and the State Financial Officers Foundation reviewed more than 90 Office of Inspector General fraud cases since 2019.

Fraudsters repaid only 30 percent, or $67 million, of the $225 million after restitution orders. The report covers fraud data from only three of the 20 largest U.S. school districts receiving the most federal funding.

In California, Executive Director Janis Bucknor confessed to stealing more than $3 million over five years and spent over $220,600 on Disney cruises, theme parks, and other Disney products. Indiana recorded the largest single fraud scheme at $44 million at Indiana Virtual School and Indiana Virtual Pathways Academy, where administrators inflated enrollment numbers for three consecutive years.

Texas recorded nearly $40 million in school fraud over the past seven years.

Florida recorded $24.7 million and Illinois recorded $14.5 million, with the two states logging the largest number of fraud cases. Secretary of Education Linda McMahon stated on Fox Business that the department is beginning to investigate K-12 school fraud and will follow up on the findings. The Trump administration prevented more than $1 billion of fraud in the FAFSA program.

Last month the Department of Education announced collaboration with the Department of Justice and Health and Human Services to transfer responsibilities ahead of a planned shutdown. President Trump signed an executive order in 2025 to dismantle the Department of Education.