Texas Vows Clearer Look at School Vendor Spending
Parents and taxpayers will get more visibility into how public school dollars reach virtual operators like Stride.
Updated on Nov. 6, 2026 in Administration
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Texas Comptroller Sarah Eckhardt vowed to increase transparency around school-vendor spending in Texas after a Bloomberg Businessweek report that Stride Inc. received more than $1 billion from Texas taxpayers over five years. Virtual school operators receive funding regardless of attendance rates under a law passed last year.
Why it matters
Hundreds of millions of dollars flow to vendors in the Texas public school system, and families and taxpayers have had limited visibility into whether that spending delivers results. The attendance-based funding rule means brick-and-mortar schools lose money when attendance drops while virtual operators do not.
Stride Inc. received more than $1 billion from Texas taxpayers over five years. Hundreds of millions of dollars are directed to vendors across the Texas public school system.
The players
Sarah Eckhardt
Texas Comptroller who won the statewide race over Republican Don Huffines and pledged greater transparency on school-vendor spending.
Stride Inc.
Education company operating virtual schools that received more than $1 billion from Texas taxpayers over five years.
Don Huffines
Republican Texas Comptroller candidate defeated by Sarah Eckhardt.
The details
Texas statute requires the comptroller to evaluate spending at school districts and campuses and review operating and staffing costs per student. A law passed last year lets virtual school operators collect funding regardless of how often students attend, while brick-and-mortar schools receive less when average daily attendance falls. Thousands of Stride students were truant, and two Stride schools were forced to close after years of failing performance. Any changes to these funding rules require the state legislature to enact them.
Timeline
Last year: law passed allowing virtual schools funding regardless of attendance.
Five years: Stride received more than $1 billion from Texas taxpayers.
Monday: Bloomberg Businessweek published the Stride funding story.
Tuesday: Eckhardt defeated Republican Don Huffines in the comptroller race.
The Home Front
Texas statute already requires the comptroller to review school spending and per-student operating and staffing costs. The attendance-based funding law passed last year shifts how public school dollars reach virtual operators compared with traditional campuses.
If your child attends a public school, ask your district how vendor contracts and per-student costs are reported and whether they are posted publicly. Keep records of attendance and enrollment decisions, since state funding rules tied to attendance may affect the schools available to your family.
The takeaway
Texas school funding now rewards some operators for enrollment regardless of attendance, which makes vendor-spending transparency a practical concern for families. Ask your district for a copy of its vendor contracts and per-student cost reports before the next budget cycle.
Further reading
For context on how school funding and oversight are organized, see the Administration section.
Source note: This article includes information reported by Mint.
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