A school program got millions in welfare linked dollars and now officials want answers

Star Academy draws new scrutiny

When public money meant to help struggling families starts flowing into a school program, people notice. That is what is happening with Star Academy, a turnaround program marketed by NOLA Education, a for-profit company led by John Alvendia.

A Wall Street Journal investigation reported that Star Academy has collected millions of dollars, often through TANF welfare funds, even as some districts and officials raised doubts about cost, results, or both.

NOLA Education lands big support

The company behind Star Academy, NOLA Education, says it helps struggling middle school students through a school-within-a-school model built around STEM and hands-on learning. Its own materials say each Star Academy typically serves up to 80 students.

The Journal reported that the program often costs about $1 million per school over three years. That price has not stopped public officials in several states from backing or expanding it.

West Virginia backs Star Academy

In January 2026, Gov. Patrick Morrisey announced he wanted to expand Star Academy using unspent TANF reserves. His office said the plan could add up to 12 new Star Academies and potentially affect 4,800 children.

That expansion drew attention because the Wall Street Journal reported that the four pilot districts it reviewed had stopped using the program. The Journal also described at least one case in which local data contradicted publicly reported results by state officials.

Why TANF money matters here

TANF was designed to help low-income families with children achieve economic security, but the program gives states broad flexibility in how they spend funds. That flexibility is one reason education-related uses can happen.

Critics say that the same flexibility can weaken accountability. In April 2025, GAO said it had issued 13 recommendations to HHS and one to Congress to strengthen TANF oversight, and GAO listed those actions as still open as of that month.

Fun fact: GAO’s 2025 TANF oversight statement pulled together findings from five separate reports issued between December 2024 and April 2025.

Oversight has been a weak spot

The bigger concern is not just one company. It is the system around it. GAO said its recent TANF work examined state spending reports, child welfare uses, audit findings, and fraud risk management.

That helps explain why deals like this raise questions so quickly. When states can direct money in many ways and reporting on outcomes is limited, it becomes harder for the public to judge what is truly working.

Louisiana became a major base

Louisiana is the clearest example of how big Star Academy has become. The Journal reported that 62 Star Academies operate in 49 Louisiana schools and that the state budget last year included $20 million for expansion.

That makes the program far more than a small pilot. It also shows why questions about evidence and results matter, because once a program scales up, the taxpayer stakes get much larger.

The sales pitch is easy to see

On paper, the pitch sounds powerful. Star Academy says it re-engages students who have fallen behind through project-based STEM lessons, smaller groups, specialized materials, and a fresh learning environment within an existing school.

That is a message many schools want to hear, especially when the district does not have to cover the full cost directly from its own budget. The Journal said that it can make signing up feel like a low-risk move.

Results are where doubts begin

The biggest questions are about proof. The Journal reported that some districts praised the program. Still, others said it did not run long enough to judge, stopped using it, or disputed NOLA Education’s publicly made performance claims.

That does not automatically prove the program fails everywhere. But it does mean the public record looks mixed, not settled, which is a major issue when millions in public dollars are involved.

Fun fact: A Rich Township High School District spokesperson told The Wall Street Journal that the graduation rate figures Alvendia cited did not match the district’s records.

Political ties add more questions

Another reason the story keeps growing is the politics around it. The Journal reported that Alvendia and related figures gave money to politicians in states where Star Academy later received support or proposed funding.

Campaign donations are legal, but they can still draw scrutiny when they overlap with no-bid or earmarked public contracts. That is especially true when a program’s evidence base is still being debated.

States are not all saying yes

Not every state embraced the program without pushback. The Journal reported that Albuquerque Public Schools rejected a proposed $2 million no-bid Star Academy contract that had been pushed at the state level in New Mexico.

That matters because it shows some districts are willing to slow down and ask for more proof before committing. In a case like this, hesitation can be as revealing as expansion.

Kentucky shows a middle path

Kentucky offers a different example. A budget analysis from the Kentucky Center for Economic Policy said the state included a special appropriation in FY 2025 to support a three-year pilot accelerated learning recovery program called Star Academy at five middle school sites.

The Journal also reported that Beshear later proposed additional funding, but lawmakers sharply cut that request. That shows support existed, but not without limits or debate.

The real issue is proof, not promises

Education programs often arrive with strong testimonials, polished materials, and urgent language about helping children who are behind. The harder question is whether those claims hold up when examined alongside outside evidence, district data, and long-term results.

That is a big reason this investigation is resonating. It is not only about one company winning contracts. It is about whether vulnerable students are being asked to trust programs that have not been independently proven at scale.

That’s why this debate extends beyond one company to larger questions about trust, evidence, and who public schools choose to support. See why Idaho law, signed April 10, 2026, bars public schools from using taxpayer resources for teachers’ unions.

Why this story keeps growing

At its core, this is a story about public trust. TANF money is meant to support struggling families, so when millions move to a private education company through politically backed deals, people want clear proof that the outcomes justify the cost.

And unless oversight or evidence improves, the debate is likely to continue. Until stronger evidence or stronger oversight appears, Star Academy will remain a symbol of how blurry the line can get between innovation, politics, and public dollars.

That’s why this issue can quickly grow from a single contract dispute into a much larger question about how public money is used in education. See why California schools face budget pressure after enrollment fell by about 75,000 students.

Do you think stronger oversight is needed when welfare dollars go to for-profit education companies? Share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

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