The Pennsylvania State Education Association (PSEA) is facing serious accusations of illegally funneling $1.5 million to support Gov. Josh Shapiro’s (D) 2022 campaign. The Freedom Foundation filed complaints with the FBI, IRS, and state authorities, alleging that PSEA laundered money through the Democratic Governors Association (DGA).
Maxford Nelsen of the Freedom Foundation said, “PSEA’s scheme to secretly launder… appears to have violated both an array of Pennsylvania laws and the Internal Revenue Code.” According to the complaints, PSEA transferred funds to the Fund For Student Success (FSS), which then funneled the money to the DGA. The DGA contributed $5.6 million to Shapiro’s campaign.
The foundation alleges that PSEA’s actions violated the Pennsylvania Election Code and the Public Employee Relations Act by using member dues for political contributions. Furthermore, they claim FSS filed fraudulent tax returns, misrepresenting the recipients of the funds, and that the DGA failed to disclose the source of the funding.
Nelsen asserted, “In the process, PSEA executives displayed as much contempt for their own members as they did for Commonwealth law and voters.” The foundation’s calls for investigations highlight the need for transparency in political funding.
The controversy comes as Shapiro is being considered for the vice-presidential nomination alongside Kamala Harris. The allegations raise questions about the integrity of campaign financing and the accountability of union leadership. Shapiro’s office and the PSEA have yet to comment on the allegations.