Inside the web of special interest groups pushing for expanded Tennessee school vouchers

Editor's note: This story has been updated to correct information about the former executive director of the Tennessee chapter of American Federation for Children.

With final votes upcoming, Tennessee lawmakers are facing mounting pressure from billionaire-backed special interest groups that have poured tens of thousands of dollars into paving the way for Gov. Bill Lee's controversial statewide state-funded private school choice program to move forward.

Backed by a coalition of lobbying groups, Lee’s school choice legislation has sailed through four committees in recent weeks with opposition from only a handful of Republicans ― who from the start were declared "a target" by a national super PAC aimed at unseating them and all state-level voucher opponents this year.

The governor's bill, dubbed the Education Freedom Act, is now awaiting consideration in both chamber's finance committees.

While House and Senate versions of the bill have vast differences – the bill is expected to go to conference committee – they largely agree on the legislation’s cornerstone: 20,000 state-paid scholarships to be available to students regardless of where they live, and payable to almost any private school, whether accredited or not.

Here’s a look at the often intertwined interests and outside money driving the debate on the voucher legislation:

American Federation for Children

One key group lobbying lawmakers to support school choice is the Tennessee chapter of American Federation for Children, a national organization dedicated to expanding school choice policies and founded and substantially funded by former Trump U.S. Secretary of Education Betsy DeVos.

Affiliates of the group have bought a spate of attack ads, emails and sent mass text messages targeting Rep. Todd Warner, R-Chapel Hill, one of the handful of Republicans who voted against the governor’s bill. The messages accuse him of “siding with the radical Tennessee 3 against Tennessee parents."

"It definitely was a political threat, there's no doubt," Warner told The Tennessean, saying his negative vote reflected the will of his district. "At the end of the day, I'm going to do what my constituents want."

AFC's efforts against Warner have been welcomed by Americans for Prosperity, which supports the voucher bill.

"Glad to see our coalition partners are just as serious as we are about seeing school choice become a reality for the many parents, students & teachers across TN who desperately need it!" AFP-Tennessee lobbyist Michael Lotfi wrote in a social media post earlier this month praising AFC messages targeting Warner.

American Federation for Children's Tennessee affiliate has spent nearly $5 million on lobbyists and campaign spending to influence state politics since 2009, according to a state database of campaign disclosures. Among their top Tennessee donors are Nashville auto magnate Lee Beaman, attorney Lee Barfield, and DeVos.

Political strategy for the national group is managed by Gillum Ferguson, who served as Lee's press secretary during the COVID-19 pandemic.

AFC-Tennessee's former executive director, John Patton, now works in institutional advancement at Christ Presbyterian Academy, where First Lady Maria Lee once taught. Patton is an alum of the school, having attended at the same time Maria Lee was a member of the school's faculty. Patton's bio remained on the AFC website until this week, and as of publication his LinkedIn page listed him still at AFC. While Christ Presbyterian Academy does not have any students enrolled through the state’s current Education Savings Accounts program, if the proposed statewide voucher program is implemented, eventually any child attending the school would be eligible for a state-paid scholarship.

AFC Victory Fund

Attack ads against Warner are just a sliver of a nationwide effort by the billionaire-funded group to defeat state lawmakers who oppose school choice policies.

Last September, the American Federation for Children launched AFC Victory Fund, a national Super PAC to "take the work of championing school choice and empowering parents to the next level." The PAC plans to spend at least $10 million to influence state-level elections this year, attacking voucher opponents and supporting "school choice champions."

According to federal disclosures, AFC Victory is funded almost exclusively with contributions from DeVos, her husband Dick DeVos, and billionaire Susquehanna International Group founder Jeff Yass, who donated a combined $4.5 million to the group in the last quarter of 2023.

“If you’re a candidate or lawmaker who opposes school choice and freedom in education – you’re a target. If you’re a champion for parents – we’ll be your shield," AFC CEO Tommy Schultz said in a statement as the PAC launched last year.

During the 2022 election cycle, AFC boasted, it defeated at least 40 "anti-school choice incumbents" working with coalition allies.

Americans for Prosperity

Americans for Prosperity of Tennessee has been a significant backer of the governor’s statewide school choice proposal from its earliest days, working to activate constituents and build support with ad buys and pavement pounding.

The national libertarian political advocacy group is founded and funded by the billionaire brothers Charles and the late David Koch, owners of Koch Industries.

Working in tandem with AFC, AFP-Tennessee has dispatched an army of door-to-door canvassers to encourage constituents to call their representatives to support school choice legislation. The group has also held several “days on the hill” this year, bringing hundreds of school choice advocates to the Capitol to lobby lawmakers ― and to hear from national school choice expert Corey DeAngelis, who is a senior fellow at AFC. AFP has also bought digital ads and billboards around Nashville urging residents to ask lawmakers to support the bill.

Pro-voucher groups have communicated with each other about their engagements with lawmakers and committee vote counts ― as is common practice among coalitions following state legislation ― but so far have not had conversations about possible primary challenges based on voucher voting records, AFP Tennessee Director Tori Venable told The Tennessean.

"We haven't got to that point yet because we're still focused on the policy. That is a possibility that as AFP Action we endorse or engage in the primaries, because politics sometimes drives policy ― and if we don't have a policy majority, then we can't get school choice for every kid in the state of Tennessee," Venable said.

Americans for Prosperity has spent more than $2 million on lobbying efforts and campaign spending on Tennessee politics since 2009.

One of AFP-Tennessee's registered lobbyists is Lotfi – who was once fired from the legislature after engaging in political work that conflicted with his service in the legislature, and later served as a political adviser for now-indicted former House Speaker Glen Casada. Prior to lobbying efforts with AFP, Lotfi did political consulting work for current legislators through his a business he still owns, Red Ivory Strategies. According to state campaign disclosures, no Tennessee candidates have engaged Red Ivory Strategies since January 2023, when Lotfi joined Americans for Prosperity as a lobbyist. Lotfi confirmed to The Tennessean that he has ceased political consulting work since becoming a lobbyist.

Tacit threats fly

Americans for Prosperity lobbyists have publicly indicated that lawmakers may face primary challenges if they oppose the governor's school choice bill.

Ahead of two key education committee votes earlier this month, Lotfi sent a memo to Tennessee lawmakers boasting the Texas AFP affiliate's success defeating 10 Texas Republicans who did not support school choice policies in the Lone Star State.

"In 10 out of 13 races where pro-school choice candidates and forces took on anti school choice incumbents, the incumbents failed to win re-election last night. Only three survived―barely," Lotfi wrote, later adding, "we look forward to seeing Governor Lee's school choice bill move out of the House & Senate Education committees today."

Lawmakers have different opinions on whether they considered the pressure a tacit threat.

Warner said AFP staff delivered a printed copy of the memo prior to the House Education Administration Committee vote earlier this month.

"I was given that by AFP to try to influence me, saying, look, we took out members in Texas, we're subject to take you out," Warner said. "I took that when they handed me that as an underlying threat... What we did in Texas, we're subject to do that in Tennessee."

Warner says he supports school choice policies, but not at the expense of funding for public schools. He voted against the proposed House version of the bill because after talking with constituents in his district, he feels there is not support.

Rep. Bryan Richey, R-Maryville, also voted against the bill, but told The Tennessean that he has not been approached by any pro-voucher groups, and does not feel threatened by outside pressure.

But Warner said House leadership should offer members more vocal protection.

"We've had members attacked on this and another issue recently," Warner said. "I'm a little disappointed that leadership hasn't stood up more for members who are being attacked."

House Speaker Cameron Sexton, R-Crossville, has in the past called out lobbyists for threatening members during committee testimony that they could receive a bad grade from their organization on annual policy issue report cards.

"As the speaker said last year, if groups want to inform members that they are scoring their vote, they can do it in person, they can send them an email, but to do it in committee as part of testimony is uncalled for," Sexton spokesman Connor Grady told The Tennessean in an email. "Speaker Sexton still has the same opinion."

Pro-voucher witnesses are paid advocates

Across four committees so far, only two witnesses have testified in favor of the governor’s proposal – and both have been paid advocates for special interest groups that are also actively lobbying for the legislation.

Typically, committee chairs require witnesses to disclose professional affiliations when testifying before lawmakers. But proponents of the voucher bill have not always identified their roles.

Onetime Congressional candidate-turned conservative pundit Robby Starbuck, who also last year testified in support of banning medical transition surgeries for transgender youth, did not disclose his affiliation as an ambassador for Americans For Prosperity when offering his testimony to the House Education Administration Committee. During his testimony, Starbuck did not share any personal or family experiences with state-funded school choice policies, but espoused philosophical support for the governor’s plan.

American Federation for Children spokesperson Walter Blanks did not declare his professional affiliation with the group during testimony to the House Government Operations Committee, as he shared his personal success with a state-funded school choice program and encouraged lawmakers to offer Tennessee children the same opportunity. Blanks did mention his affiliation when testifying in another House committee.

Expansion advocates on board of voucher school

In addition to his work job at Christ Presbyterian, Patton, the former AFC Tennessee director, also serves as a founding board member of King’s Academy Nashville, an independent Christian school that launched in 2021 – after initial Education Savings Accounts voucher legislation became law. The school is currently an approved ESA institution.

Also on the King’s Academy Nashville board is Palmer Williams, wife of Joseph Williams, the governor’s chief of staff.

Former Lee aides lobby for voucher vendors

Among the lobbyists registered for AFC Tennessee is Lee’s former longtime legislative director, Brent Easley.

Easley left the governor’s office last year to join a government relations firm, BHA Strategy, founded former Lee Chief of Staff Blake Harris and ex-Communications Director Laine Arnold. Harris played a pivotal role in passage of the 2019 Education Savings Accounts law. Doug Sellers, husband of Lee's current Communications Director Casey Black Sellers, also recently joined the firm.

Another BHA client in Tennessee is Primary Class Inc., which runs Odyssey, a New York-based firm that calls itself a "turnkey solution" for managing applications, marketing and outreach, payments and customer support specifically for ESA and school voucher microgrant management.

"We're Odyssey, a passionate team building technology to enable parents to choose the best education for their child," the firm's website reads.

Since landing a $1.5 million contract to fulfil Idaho's Empowering Parents school choice program, the company has won contracts in Missouri and Iowa, according to the company website.

The firm may hit a speed bump: Primary Class Inc.'s state business registration was revoked by the Tennessee Secretary of State last year, after the business failed to file an annual report.

ExcelinEd

ExcelinEd, a national advocacy group that supports private school choice programs, including scholarships, vouchers, and ESAs, is also lobbying lawmakers to support school choice.

"We work with state leaders across the country to make the education system more centered around the needs of students," ExcelinEd CEO Patricia Levesque told The Tennessean in a statement. "We’re excited to support Gov. Lee and Tennessee state leaders as they look to advance more opportunities for parents to find education that works best for their child.  Many other states have taken steps forward to ensure all families have access to school choice."

Perhaps the organization’s most notable alum in state government is Tennessee's new Education Commissioner Lizzette Reynolds.

Since joining state government, Reynolds appears to have stayed close with the group founded by former Florida Gov. Jeb Bush. Reynolds has traveled out of state at taxpayer expense to attend meetings with ExcelinEd multiple times since taking on her new role, according to a state database of out-of-state administration travel.

"Lizzette Reynolds is a strong state education commissioner with some of the longest-running experience in leadership within a state education agency," Levesque said. "We are proud to work with her on issues of importance to Tennessee families."

The Tennessee Department of Education has yet to release records requested by The Tennessean documenting the purpose of the commissioner's attendance at meetings with her former employer, or comprehensive expense records of her travel on the taxpayer's dime.

Vivian Jones covers state government and politics for The Tennessean. Reach her at [email protected]. 

This article originally appeared on Nashville Tennessean: Tennessee school vouchers: Libertarian, GOP PACS throw support for