A group of private school owners are suing nonprofit Step Up For Students, which processes most student voucher payments, saying it has failed "to timely and properly disburse" funds the state had already approved, causing financial stress and operational disruptions to the educational services they provide.
Since the expansion of school vouchers in 2023, families and schools relying on vouchers have spoken up about experiencing inaccurate payments, indefinitely delayed and frozen funds. The payment issue has been particularly hard on students with disabilities, many whom are in specialized schools offering services to support their unique educational needs and are able to enroll in the schools thanks to the voucher for students with disabilities.
The state pays most voucher programs through nonprofit Step Up For Students, which then distributes it to families.
The complaint says state-approved funds were cleared in multiple steps. But the distribution, in some cases, were delayed more than two years.
A critical issue looming over Florida's voucher program — the largest in the nation — is the lack of accountability and oversight.
A state audit from last April found errors in how Step Up For Students managed applications and funding in the period immediately after the expansion. The report found many cases of delayed voucher payments, leading to funding instability for students, their parents and education providers.
In the fall of 2025, another state audit performed on the Florida Department of Education's voucher handling, "found... a myriad of accountability challenges that left the statewide funding shortfall."
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While the schools went through staff reductions, program cuts and enrollment losses, the stakes are highest for students.
The schools, the lawsuit says, can't penalize families for being late to pay tuition, suspend services or withhold access to school "without undermining the purpose of the scholarship programs and jeopardizing educational continuity."
The schools joining the lawsuit:
- Square Pegs Learning Center in Panama City
- Mountaineer's School of Autism West Palm Beach
- Lakeland Institute for Learning in Lakeland
- Educational Harbor Christian School in Palmetto
- Diverse Abilities School in Southwest Ranches
- iCity Christian School in Jacksonville
- Dickens Sanomi Academy in Plantation
They are represented by attorney Lamonte W. Carter of the Carter Firm in Jacksonville. Counsel and school administrators are expected to host a press conference Friday afternoon at the firm's office.
The complaint, filed in Florida's Fourth Judicial Circuit Court in Duval County, seeks damages exceeding $50,000, not including interest and attorneys’ fees.
Scott Kent, Step Up For Students spokesperson, told WLRN in an email that the nonprofit has worked "closely with every parent and school to resolve issues."
"We demonstrated to these schools that their claims are unwarranted," he added. "Step Up for Students is disappointed that the schools have chosen to file a lawsuit, but we will work with our attorneys to address the allegations the schools have raised and respond accordingly."
WLRN has previously reported that Florida has mismanaged vouchers and was unable to accurately track student enrollment. The program wasn't prepared to take on hundreds of thousands of new students when it expanded in 2024. Today, more than 500,000 students depend on public funds to pay for private schooling.
The Legislature is seeking to overhaul Florida's voucher program with the goal of not only making sure students are funded properly, but also safeguarding taxpayer money — more than $4 billion of state funds go into sustaining the universal voucher program.
Money follows where the student goes. The state tracks students by checking enrollment status. If a student's name appears in both district and private school enrollment, state law requires the student's funding be frozen to prevent duplication. But with increased school choice and the student mobility that comes with it, tracking student enrollment has proved itself difficult.
Today, taxpayers are funding about 30,000 students the state can't accurately track — representing about $270 million. And voucher funding organizations received $398 million more than what was originally allocated to them.
Last fall, state lawmakers were critical of the school voucher funding system.
"...I often just kinda bang my head against the wall," said state Rep. Toby Overdorf, R-Palm City, during one legislative hearing last year.
"We’re out millions of dollars. Schools and parents and students are getting frustrated — we’re all getting frustrated," said state Rep. Alex Rizo, R-Hialeah, at the time.
The bill aims to bring more efficiency and transparency to the state's popular school voucher program by proposing the separation of private school voucher funds from public school funds. Introduced by state Sen. Don Gaetz, R-Pensacola, it unanimously passed the Senate, attracting widespread bipartisan support.
