Government

The Tax Break That Could Fund New Charter Schools

The charter school movement is eyeing the tax incentives in the federal Opportunity Zone program to help fund new school construction.
Teacher Zara Gibbon teaches sixth-graders at Animo Westside Charter Middle School in Los Angeles.Reed Saxon/AP

For the fourth consecutive year, the growth of charter schools—publicly funded and privately managed schools that educate nearly 3.2 million students across the country—has slowed. Between 2017 and 2018, charter schools grew nationally by 1 percent, an all-time low for the sector.

Charter industry leaders are debating the exact reasons behind the slowdown. Some say it’s rooted in school districts’ financial woes, which make leaders less inclined to open new schools that could strain budgets further. Others blame shifting political winds—fiercer backlash from charter opponents and less robust support from Democratic officials. But there’s one factor nearly everyone in the charter universe agrees on: Accessing and affording sites for these schools is a huge barrier. Many charters, denied access to public facilities, rent their buildings, opening the door to rent disputes and self-dealing scandals. Finding adequate spaces to open new schools, or to expand to bigger buildings if the charter operator wants to increase its student enrollment, remains an elusive and expensive challenge for charter leaders in virtually every state.

To help slake the movement’s thirst for new facilities, charter supporters have been eyeing a new pot of money with growing interest—Opportunity Zones.