Concerns about Fraud in the Use of School-Choice Funds Are Misplaced

March 29 2023

While opponents of allowing parents to use government monies to educate their children as they see fit have complained of the potential for waste and abuse, Jason Bedrick argues that there is very little of either:

A dozen states now have K-12 education savings account, or ESA, policies that allow families to use a portion of state education funds to customize their children’s education. Families can use money drawn from an ESA to pay for private-school tuition, tutoring, textbooks, homeschool curricula, special-needs therapy, and more. In five states, every K-12 student has or will soon have access to ESAs or ESA-like programs.

The most recent review of Arizona’s Empowerment Scholarship Account program by the Arizona auditor general found an improper payment rate of almost zero. A prior review in 2018 had found “[m]ore than 900 successful [ESA] transactions at unapproved merchants totaling more than $700,000.” Opponents of the school choice blasted the program for its supposed lack of accountability, but they failed to mention that this accounted for only about 1 percent of ESA spending.

Moreover, as Matthew Beienburg of the Goldwater Institute has documented, much of the misspending was the result of innocent mistakes, not fraud. For example, the grandmother whose had purchased “educational games and supplies for her special-needs grandson that weren’t explicitly required by his at-home curriculum and thus not approved under the program.” Other parents found their accounts flagged for purchasing things like pens, pencils, notebooks, and other consumable supplies that are not eligible expenses. Innocent misspending must be reimbursed. The rare instances of intentional fraud are subject to prosecution.

Indeed, education savings accounts have proven far more financially accountable than other government programs.

Read more at Education Next

More about: Education, School choice, U.S. Politics

By Bombing the Houthis, America is Also Pressuring China

March 21 2025

For more than a year, the Iran-backed Houthis have been launching drones and missiles at ships traversing the Red Sea, as well as at Israeli territory, in support of Hamas. This development has drastically curtailed shipping through the Suez Canal and the Bab al-Mandeb Strait, driving up trade prices. This week, the Trump administration began an extensive bombing campaign against the Houthis in an effort to reopen that crucial waterway. Burcu Ozcelik highlights another benefit of this action:

The administration has a broader geopolitical agenda—one that includes countering China’s economic leverage, particularly Beijing’s reliance on Iranian oil. By targeting the Houthis, the United States is not only safeguarding vital shipping lanes but also exerting pressure on the Iran-China energy nexus, a key component of Beijing’s strategic posture in the region.

China was the primary destination for up to 90 percent of Iran’s oil exports in 2024, underscoring the deepening economic ties between Beijing and Tehran despite U.S. sanctions. By helping fill Iranian coffers, China aids Iran’s Islamic Revolutionary Guard Corps in financing proxies like the Houthis. Since October of last year, notable U.S. Treasury announcements have revealed covert links between China and the Houthis.

Striking the Houthis could trigger broader repercussions—not least by disrupting the flow of Iranian oil to China. While difficult to confirm, it is conceivable and has been reported, that the Houthis may have received financial or other forms of compensation from China (such as Chinese-made military components) in exchange for allowing freedom of passage for China-affiliated vessels in the Red Sea.

Read more at The National Interest

More about: China, Houthis, Iran, Red Sea