PA Teachers Union Accused of Laundering $1.5 Million into Democrat Governor Josh Shapiro’s 2022 Campaign

The Pennsylvania State Education Association (PSEA) and the Democratic Governors Association (DGA) are facing serious allegations from the Freedom Foundation, which has filed multiple complaints with state and federal authorities. According to a recent press release from the organization, the PSEA is accused of executing an illegal scheme during the 2022 Pennsylvania general election, allegedly using nearly $1.5 million in teachers’ union dues to support then-candidate Josh Shapiro’s gubernatorial campaign.

The Freedom Foundation claims that Pennsylvania campaign finance and collective bargaining laws explicitly prohibit unions from using their general treasury funds to contribute to political candidates. Despite this, the complaints allege that the PSEA made two significant contributions from its general treasury to the Fund for Student Success (FSS), a political fund operated by the union. These contributions were then purportedly funneled to the DGA in May 2022, which heavily supported Shapiro’s campaign.

Further allegations suggest that these transactions were not publicly disclosed as mandated by the Pennsylvania Election Code. The PSEA reportedly failed to register the FSS as a political committee with the Department of State, thereby not disclosing any contributions or expenditures, including the two significant contributions to the DGA. Although the DGA has registered as a political committee and files the necessary disclosures, it allegedly did not report receiving the two contributions from the FSS.

Maxford Nelsen, the Freedom Foundation’s director of research and government affairs, criticized the PSEA’s actions, stating, “PSEA’s scheme to secretly launder nearly $1.5 million in members’ dues through the Democratic Governors Association to support Josh Shapiro’s 2022 candidacy appears to have violated both an array of Pennsylvania laws and the Internal Revenue Code.” Nelsen added that PSEA executives showed contempt for both their members and Commonwealth law, deceiving Pennsylvania teachers about how their union dues were used.

Filed Complaints

The Freedom Foundation has filed three detailed complaints:

1. Pennsylvania Election Code Violations: Alleging violations of the Election Code and certain criminal statutes by the PSEA, FSS, and DGA. This complaint has been submitted to the Pennsylvania Department of State, the Pennsylvania Office of Attorney General, and the Dauphin County District Attorney.
2. Public Employee Relations Act Violations: Filed with the Pennsylvania Labor Relations Board, alleging violations of the Public Employee Relations Act by PSEA.
3. Fraudulent Tax Return: This complaint, alleging that the FSS submitted a fraudulent 2022 tax return, has been filed with the Internal Revenue Service, the U.S. Attorney for the Middle District of Pennsylvania, and the Federal Bureau of Investigation’s Philadelphia field office.

Implications

Josh Shapiro, who is reportedly under consideration as Kamala Harris’s running mate, has not publicly commented on these allegations. The ongoing investigations will likely scrutinize the legality and ethics of the PSEA’s financial maneuvers and their implications for Pennsylvania’s electoral integrity.