For Immediate Release – The Hidden Price Tag of Homeschool Government Funding: How “Free” Money Threatens the Homeschool Economy
- Contact: Kashia Davis, Outreach Director
- Email: Kashia@CHEC.org
- CHEC Office: 720-842-4852
by Kashia Davis
There is a graphic lore about double-edged swords being made into blood popsicles for use as wolf traps. In the story, wolves feasted on the treat and were unaware (due to the numbing from the ice) that it soon became their own blood they feasted on. Historians debate the truth of this legend, but even if just a parable, there is a lesson to be learned. What may seem like a tasty treat can lead to death. Across Colorado and the nation, a growing movement is pushing to funnel public school dollars into homeschool programs. Christian Home Educators of Colorado (CHEC) already pointed out the growing number of strings attached to their funding,[1] but there is also an economic ripple. These effects are already reshaping and outpricing the thriving independent homeschool community.
History offers a cautionary tale. When the federal government began flooding universities with financial aid in the 70s and 80s, the intention was to make college more affordable. Instead, the opposite happened. From 1973 to 2015, total Pell Grant expenditures increased 5,620%, from $500 million to $28.6 billion.[2] Over the same era, tuition at public four-year colleges saw double-digit percentage increases decade after decade. Economists call this the “subsidy effect”: when third-party money enters a market, prices rise to meet the available funding.
The homeschool market is now standing at the same crossroads. When government money moves in, families get priced out. Consider what is already happening with venue costs. Homeschool co-ops and support groups have long rented space from local churches at modest rates, around $50 per week. These affordable arrangements allowed families to maintain their independence while they shared resources and built community. Today, public school homeschool programs are entering the same rental market and paying $1,000 per week for those same spaces. Churches and facilities, understandably, are accepting the higher offers. The result? Private homeschool groups are being displaced from locations they have used for years.
The same dynamic plays out with instructors. As public programs pay premium rates for music teachers, riding instructors, and art coaches, independent homeschool families face sharply rising lesson costs, if they can find an available instructor at all. The independent market, once reasonably priced for families, is now overpriced and run by government contracts. This is inflation by subsidy.
Basic economic principles are clear: subsidized competition drives up prices, squeezes out private providers, and creates dependency on the funding source. Families who accept government enrichment funds today may find that tomorrow, the independent market they depended on no longer exists, and the government programs that replace it come with curriculum mandates, reporting requirements, and values that conflict with their own.
CHEC urges Colorado homeschool families to think carefully before accepting public funds for private education. The cost of “free” money is always higher than it first appears. Could it be that the tempting popsicle has numbed us to our own self-inflicted wound? Over 18,000 students are enrolled in these programs in Colorado. That’s more than 30% of all homeschoolers in the state. We have to consider that, instead of growing the homeschool movement and furthering educational independence, could this be bleeding independent homeschooling to death?
[1] https://chec.org/chec-blog/for-immediate-release-legislators-call-on-cde-to-implement-rules-on-homeschool-enrichment-programs/
[2] https://ballotpedia.org/Fact_check/Does_research_show_that_federal_student_aid_increases_tuition
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