Billions spent. Nothing owned. And taxpayers left holding the bag.
A New York Post investigation into the New York City Department of Education reveals more than $5 billion has been spent on rent to private landlords since 2010—often at above-market rates.
The findings, based on a review of Checkbook NYC data, are fueling criticism that the nation’s largest school system is burning cash instead of building long-term assets.
“That is taxpayer rent. It is taxpayer money that could be used to build schools, frankly,” said political consultant Hank Sheinkopf.
“It would be better for the city to spend that money on after-school reading improvement sessions. Spending [the budget] on rentals doesn’t accomplish that.”
The scale is eye-popping.
In 2024 alone, the DOE paid $235.6 million across 132 active leases, according to city council data.
That spending comes even as some leased properties sit unused.
A separate report found the DOE shelled out more than $100 million on rent for 3K early education centers that remain empty, while student test scores continue to lag.
Critics say the problem runs deeper than just underused space.
A review of city contracting records and property valuations suggests the DOE locked itself into long-term leases on buildings worth far less than what taxpayers ultimately paid.
In one striking example in The Bronx, a school building once valued at zero in 1983 has cost the city more than $52 million in rent over time. Today, the property is worth about $29 million.
Experts say cases like that point to a broader pattern.
Above-market rents. Decades-long commitments. And no equity gained.
The cumulative result: billions spent with little to show beyond expired leases.
The controversy adds to mounting scrutiny over how New York allocates education dollars—especially as academic outcomes remain uneven and parents demand better results.
More over at The New York Post:
Post investigation reveals NYC DOE has spent $5B-plus on rent to private landlords – including buildings with no commercial value https://t.co/P8vQ72uDza pic.twitter.com/gsFHBZJ7av
— New York Post (@nypost) April 24, 2026
