The Arkansas Times, one of those super-valuable local news sites, reported on a plush political deal. The state awarded a no-bid contract to a business called ClassWallet to administer voucher funds. Parents submit bills, and ClassWallet pays them. Surprisingly (or not), ClassWallet employs the same lobbyist who represents former Governor Mike Huckabee, father of current Governor Sarah Huckabee Sanders. What a coincidence!

ClassWallet — the vendor given a lucrative contract to manage the banking side of Arkansas LEARNS school vouchers — employs a lobbyist who also represents a political action committee for former Gov. Mike Huckabee, the father of current Gov. Sarah Huckabee Sanders.

The Arkansas Department of Education did not seek competitive bids last year before awarding the contract to manage the inaugural phase of the state’s “Education Freedom Accounts” to Kleo Inc. of Florida, a company that does business under the name ClassWallet. That contract is expected to earn ClassWallet more than $1 million in its first year.

A quick look at the Arkansas secretary of state’s website shows that ClassWallet is represented by the lobbying firm Legacy Consulting, who also lobbies for Huck PAC Inc., former Gov. Huckabee’spolitical vehicle.

Additionally, Legacy Consulting was founded by Chad Gallagher, Mike Huckabee’s former political advisor.

The contract to administer school voucher finances for LEARNS’ second year recently went out for a bid, garnering five out-of-state contenders, including ClassWallet. The winning vendor stands to earn about $2.4 million in service fees during the 2024-25 school year alone…

ClassWallet currently manages voucher programs in five states: Arizona, Indiana, Missouri, New Hampshire and North Carolina. The company is considered a leader in its field, but it is not without its controversies.

The state of Oklahoma filed a lawsuit against ClassWallet on Jan. 29 of this year for failing to prevent education funds from being misspent. According to a Jan. 31 article from The Oklahoman, this is the second time ClassWallet has been sued by the state.

In the first lawsuit filed by the state of Oklahoma in 2022, federal and state audits found $1,500 grants meant to be used for educational expenses were instead spent on kitchen appliances, power tools, video game consoles and other non-educational items. The lawsuit claimed that about $1.7 million was misused.

In response, ClassWallet denied any wrongdoing. Federal and state auditors said government officials, not ClassWallet, were at fault for failing to put proper guardrails in place. Oklahoma’s attorney general dropped the initial lawsuit, but Oklahoma Gov. Kevin Stitt announced last month that he’s refiling the complaint.

Open the link and read the story, written by Arkansas Times reporter Jeannie Roberts.