On April 15, 2025, Governor Patrick Morrisey stood in Ripley Elementary School surrounded by fifth-graders and signed Senate Bill 199 into law. The bill’s sponsor, Senator Amy Grady—herself an elementary school teacher—smiled for the cameras. It was a feel-good moment: a teacher-legislator helping other teachers deal with disruptive students.
What the cameras didn’t capture was the invisible hand that had been orchestrating this moment for years. Behind the wholesome optics stood a sophisticated network of dark money organizations that had spent nearly a decade engineering the complete transformation of West Virginia’s education system.
SB 199 wasn’t just a discipline bill. And it didn’t work alone.
In the spring of 2025, West Virginia’s Republican-controlled legislature passed three education bills that, on the surface, seemed unrelated:
* SB 199: Allows teachers to more easily remove “disruptive” students from K-6 classrooms
* HB 2167: Makes “technical cleanup” changes to charter school law
* SB 746: Allows charter schools to bill Medicaid for student services
Each bill had its own sponsors, its own rationale, its own legislative journey. Each passed with broad bipartisan support. And each was signed into law by Governor Morrisey within weeks of taking office.
But these weren’t three separate bills. They were three parts of a single machine—a machine designed by two organizations with deep ties to anonymous billionaire donors: the Cardinal Institute for West Virginia Policy and Americans for Prosperity-West Virginia.
This is the story of how dark money doesn’t just buy elections. It builds ecosystems.
The Architects: Cardinal Institute and Americans for Prosperity
Before we understand the bills, we need to understand the organizations behind them.
The Cardinal Institute: The Intellectual Engine
Founded in 2014, the Cardinal Institute for West Virginia Policy is a 501(c)(3) nonprofit think tank that has become the state’s most influential voice for conservative education policy. Led by Executive Director Garrett Ballengee, the institute operates as West Virginia’s affiliate of the State Policy Network (SPN), a national organization that coordinates over 160 conservative think tanks across all 50 states. [1]
The Cardinal Institute’s signature achievement is the Hope Scholarship, West Virginia’s Education Savings Account (ESA) program. The institute began laying the groundwork in 2016 with the state’s first ESA research paper, built coalitions of supporters, and successfully shepherded the program through the legislature in 2021. The State Policy Network was so impressed that it published a detailed case study of the campaign as a model for other states to replicate. [2]
For this work, the Cardinal Institute won awards from both the State Policy Network and the Atlas Network, cementing its reputation as a leader in the national school choice movement. [3]
But here’s what the awards don’t mention: we don’t know who funds the Cardinal Institute. As a 501(c)(3) nonprofit, it’s not required to disclose its donors. What we do know is that in 2023, the institute received $76,500 from DonorsTrust, the so-called “dark money ATM of the conservative movement.” [4] That’s just what’s visible. The rest remains hidden.
Americans for Prosperity-West Virginia: The Political Muscle
If the Cardinal Institute provides the intellectual architecture, Americans for Prosperity-West Virginia provides the political muscle to make it happen.
AFP-WV is the state chapter of a national 501(c)(4) organization founded and funded by billionaire industrialists Charles and David Koch. Unlike 501(c)(3) organizations, 501(c)(4)s can engage directly in lobbying and political advocacy—and AFP does so aggressively. [5]
In 2022, the Koch network’s primary funding vehicles—the Stand Together Chamber of Commerce and Stand Together Trust—distributed $176 million to conservative causes. The largest recipient was Americans for Prosperity, which received $60 million, with its super PAC receiving another $26.5 million. [6]
That money cascades down to state chapters like AFP-WV, which use it for door-to-door canvassing, phone banking, direct lobbying, and—most importantly—campaign spending.
In the 2024 gubernatorial race, AFP-WV spent over $700,000 backing Patrick Morrisey. [7] He won. And on his second day in office, Morrisey issued an executive order directing his administration to make West Virginia’s school choice law the “broadest and most effective in the nation.” [8]
The return on investment was immediate.
The 2025 Legislative Agenda: “Pathway to Prosperity”
In January 2025, just days before the legislative session began, Americans for Prosperity-West Virginia released its “Pathway to Prosperity 2025 Legislative Agenda.” The glossy document laid out AFP-WV’s priorities for the year, with education at the top of the list:
“EXPAND EDUCATIONAL FREEDOM: Continue to empower parents to find the right educational pathway for their child’s unique needs by securing the expansion of the Hope Scholarship.” [9]
On the surface, this seems straightforward: AFP-WV wanted to expand the Hope Scholarship program, which was already scheduled to open to universal eligibility in the 2026-27 school year.
But here’s what the document didn’t say: for that expansion to work, West Virginia needed infrastructure. It needed more charter schools. It needed those charter schools to be financially viable. And it needed a way to move students out of traditional public schools and into those alternatives.
That infrastructure didn’t exist yet. So AFP-WV and the Cardinal Institute set out to build it.
The Three Bills: Building the Machine
SB 199: The Push (Out of Public Schools)
Sponsor: Sen. Amy Grady (R-Mason), an elementary school teacher
Signed: April 15, 2025 by Governor Morrisey
Effective: July 2, 2025
On its face, SB 199 is a common-sense discipline bill. It allows teachers in kindergarten through sixth grade to immediately remove students who are violent, threatening, or disruptive. After two removals in one semester, the student must be placed in an alternative setting. [10]
Teachers loved it. The West Virginia Education Association, the state’s largest teachers union, called it a “great step.” [11] Senator Grady, the bill’s sponsor and a practicing elementary teacher, framed it as giving teachers “more control” over their classrooms. [12]
But buried in the bill’s language is a more consequential provision:
“The Legislature finds that isolating students or placing them in alternative learning centers or licensed behavioral health agencies may be the best setting for chronically disruptive students.” [10]
The bill doesn’t just allow removal—it explicitly endorses alternative placements as the solution. And it requires county boards to “create more alternative learning centers, expand its capacity for alternative placements, or partner with a licensed behavioral health agency” to serve these students. [10]
Here’s the strategic brilliance: SB 199 creates a pipeline of students who are being pushed out of traditional public schools and into alternative settings. It legitimizes the idea that some students are better served outside the public system. And it requires counties to build the infrastructure to receive them.
Where does that infrastructure lead? To charter schools.
HB 2167: The Pull (Toward Charter Schools)
Sponsors: Delegates Ellington, Statler, Willis, and W. Clark
Passed: April 11, 2025
Effective: July 10, 2025
HB 2167 was billed as “technical cleanup” of West Virginia’s charter school law—the kind of boring legislative housekeeping that doesn’t make headlines. [13]
But the “cleanup” included several provisions that fundamentally change the charter school landscape:
1. Fast-Track Conversion for Closing Schools
The bill allows public schools that are closing or facing consolidation to be fast-tracked for conversion to charter schools. [14]
Think about the implications: as traditional public schools lose enrollment (accelerated by the Hope Scholarship), they become candidates for closure. But instead of consolidating with other public schools, they can be converted to charter schools—essentially privatizing a public asset at the moment of its greatest vulnerability.
2. No Tuition for Full-Time Students
The bill clarifies that charter schools cannot charge full-time tuition, putting them on equal footing with traditional public schools in terms of cost to families. [14] This removes a barrier that might have prevented families from choosing charter schools.
3. Non-Certified Teachers Can Proctor State Assessments
Perhaps most significantly, the bill allows charter school teachers who are not certified or licensed in West Virginia to proctor state assessments, as long as they complete annual training. [14]
This removes a significant operational barrier. Previously, charter schools had to hire certified teachers for testing days or bring in outside proctors. Now they can use their existing (potentially non-certified) staff, reducing costs and increasing flexibility.
The Cardinal Institute Connection:
While the Cardinal Institute didn’t issue a press release about HB 2167, the bill implements the exact framework the institute has been promoting since 2019. In January 2022, the Cardinal Institute published “Charter Schools in West Virginia 101,” a comprehensive guide explaining the state’s charter law and its potential. [15]
HB 2167 removes the barriers identified in that framework and makes charter schools more competitive with traditional public schools.
SB 746: The Funding (Making It Sustainable)
Sponsor: Sen. Rucker
Status: Became law without Governor Morrisey’s signature (a telling detail)
Effective: July 9, 2025
SB 746 is the most technical of the three bills, and it received the least media attention. But it may be the most consequential. [16]
The bill allows the State Board of Education to delegate its Medicaid provider status to public charter schools, enabling them to bill Medicaid for services like speech therapy, occupational therapy, and mental health counseling provided to eligible students.
Traditional public schools have long accessed Medicaid reimbursement for these services—it’s a significant revenue stream that helps cover the cost of special education and health services. But charter schools, as new entities, didn’t automatically have this access.
SB 746 fixes that. And the financial implications are substantial.
Why This Matters:
Medicaid reimbursement can cover a significant portion of special education and behavioral health services—exactly the kinds of services that students removed under SB 199 might need. By giving charter schools access to this federal funding stream, the legislature made them significantly more financially sustainable, particularly for serving high-need students.
Here’s the synergy:
* SB 199 identifies students with behavioral issues and removes them from traditional classrooms
* HB 2167 makes charter schools more attractive alternatives
* SB 746 ensures charter schools can afford to serve these students by accessing Medicaid funding
The National Alliance Connection:
On May 5, 2025, the National Alliance for Public Charter Schools issued a press release celebrating the passage of HB 2167 and SB 746:
“The West Virginia legislature has strengthened public school choice for families in the Mountain State by passing HB 2167 and SB 746. HB 2167 and SB 746 provide clarity on key provisions and allow eligible students access to Medicaid funding.” [17]
The fact that a national charter school advocacy organization was tracking these bills and immediately celebrated their passage indicates they were involved in supporting them during the legislative process.
The Machine in Action: How the Three Bills Work Together
Separately, each bill seems reasonable:
* Teachers should be able to remove violent students (SB 199)
* Charter school law needs technical cleanup (HB 2167)
* Charter schools should have access to Medicaid like public schools do (SB 746)
But together, they create a complete system:
The Pipeline:
* SB 199 identifies “chronically disruptive” students and creates pathways to remove them from traditional public schools
* HB 2167 provides charter school alternatives to receive these students
* SB 746 ensures charter schools can afford to serve them via Medicaid revenue
The Destabilization:
* SB 199 removes students → reduces traditional public school enrollment
* Lower enrollment → triggers school closures
* HB 2167 → closed schools convert to charters instead of consolidating with other public schools
The Financial Advantage:
* Traditional public schools: Lose student + lose per-pupil funding
* Charter schools: Gain student + gain per-pupil funding + gain Medicaid revenue (new via SB 746)
The Result:
A perfectly coordinated ecosystem that makes charter schools more attractive and sustainable while making traditional public schools less viable—all timed to coincide with the Hope Scholarship’s expansion to universal eligibility in 2026-27.
The Funding Trail: Follow the Dark Money
The diagram above shows how anonymous donations flow through a sophisticated network:
Layer 1: Anonymous Donors Wealthy individuals and foundations make tax-deductible donations to donor-advised funds like DonorsTrust and the Koch network’s Stand Together.
Layer 2: Dark Money Intermediaries
* DonorsTrust ($1.29 billion in assets) distributes grants to conservative organizations
* Koch Network/Stand Together ($176 million distributed in 2022) funds political advocacy
Layer 3: National Coordinating Organizations
* State Policy Network received $10.5 million from DonorsTrust in 2023
* Americans for Prosperity received $60 million from Koch network in 2022
Layer 4: State-Level Actors
* Cardinal Institute received $76,500 from DonorsTrust in 2023
* AFP-WV received funding from national AFP (amount undisclosed)
Layer 5: Political Outcomes
* AFP-WV spent $700,000+ backing Morrisey’s gubernatorial campaign
* Cardinal Institute provided intellectual framework for education reform
* Governor Morrisey issued executive order on Day 2
* Legislature passed SB 199, HB 2167, and SB 746
The Result: A complete privatization infrastructure supporting the Hope Scholarship’s expansion to universal eligibility, projected to cost $244.6 million by 2027.
The Cardinal Institute’s Invisible Hand
While Americans for Prosperity-WV operates openly—releasing legislative agendas, running ads, backing candidates—the Cardinal Institute works more subtly.
The institute didn’t issue press releases about SB 199, HB 2167, or SB 746. It didn’t testify at legislative hearings (that we can find). It didn’t claim credit for their passage.
But the bills implement the exact policy framework the Cardinal Institute has been building since 2016:
2016: Published West Virginia’s first ESA research paper
2018: Published research on ESAs for special needs students
2019: West Virginia legalized charter schools
2021: Hope Scholarship passed
2022: Published “Charter Schools in West Virginia 101”
2025: SB 199, HB 2167, and SB 746 pass
This is the Cardinal Institute’s strategy, documented in the State Policy Network’s case study of the Hope Scholarship campaign:
“The Cardinal Institute created Education Choice West Virginia, a parent advocacy group of 30-40 families. These families provided the ‘real stories’ and human faces that lawmakers and media could point to as evidence of public demand.” [2]
The pattern is clear: build the intellectual foundation, create the appearance of grassroots support, work behind the scenes, and let others take credit. Then, after the bills pass, the State Policy Network highlights the victories in its “Week in Review” newsletters, crediting the Cardinal Institute and providing a model for other states to follow. [18]
It’s a long game, and it’s working.
The Grassroots Illusion
The genius of this system is that it looks organic.
Senator Amy Grady isn’t a dark money operative—she’s a genuine elementary school teacher who saw real problems in her classroom and wanted to help her colleagues. Her sponsorship of SB 199 provided authentic credibility that no amount of Cardinal Institute research could buy.
The delegates who sponsored HB 2167 weren’t taking orders from the Koch brothers—they were responding to what they saw as needed technical fixes to charter school law.
Senator Rucker, who sponsored SB 746, wasn’t trying to privatize education—she was trying to give charter schools access to the same federal funding that traditional public schools receive.
But here’s the thing: they didn’t have to be in on it for it to work.
The dark money network doesn’t need to control every legislator. It just needs to:
* Fund the think tanks that write the research
* Fund the advocacy groups that mobilize supporters
* Fund the campaigns of sympathetic governors
* Provide model legislation from other states
* Create an environment where the “right” bills feel inevitable
When Senator Grady introduced SB 199, she was solving a real problem. But the solution she chose—alternative placements for disruptive students—aligned perfectly with the infrastructure being built by HB 2167 and SB 746.
Coincidence? Or coordination?
The Timeline: Too Perfect to Be Accidental
Let’s look at how quickly this all came together:
November 5, 2024: Patrick Morrisey wins governorship with AFP-WV backing
January 13, 2025: Morrisey inaugurated
January 14, 2025: Morrisey issues executive order on school choice (Day 2 in office)
January 2025: AFP-WV releases “Pathway to Prosperity” legislative agenda
February-April 2025: SB 199, HB 2167, and SB 746 introduced and passed
April 15, 2025: Governor Morrisey signs SB 199 with sponsor Sen. Grady present
May 5, 2025: National Alliance for Public Charter Schools celebrates HB 2167 and SB 746
July 2025: All three bills take effect
2026-27 school year: Hope Scholarship opens to universal eligibility
Three complementary bills, passed in the same legislative session, immediately after a dark money-backed governor takes office, following years of groundwork by SPN-affiliated think tanks, celebrated by national charter school organizations, and timed perfectly to support the Hope Scholarship expansion.
That’s not coincidence. That’s coordination.
What We Still Don’t Know
The dark money system is designed to make certain questions unanswerable:
* Who are the Cardinal Institute’s donors beyond the $76,500 from DonorsTrust? We’ll never know. They don’t have to disclose.
* How much did AFP-WV spend lobbying for these specific bills? Unclear. Lobbying disclosure laws in West Virginia are weak.
* Did the Cardinal Institute provide model legislation or talking points to bill sponsors? Probably, but there’s no paper trail.
* Was there coordination between the Cardinal Institute, AFP-WV, and the bill sponsors? Almost certainly, but proving it requires documents that don’t exist or aren’t public.
* How much money flowed from DonorsTrust and the Koch network to West Virginia in 2024-2025? We only see snapshots from tax filings that are years old.
This is the brilliance of the dark money system: it operates in the shadows by design, using layers of nonprofit intermediaries to obscure the money trail and prevent accountability.
The Bigger Picture: West Virginia as Prototype
West Virginia isn’t unique. It’s a prototype.
The State Policy Network has published a detailed case study of the Cardinal Institute’s Hope Scholarship campaign, explicitly framing it as a model for other states to replicate. The same organizations—DonorsTrust, the Koch network, SPN affiliates, AFP chapters—are operating in all 50 states.
The three-bill strategy we’ve documented here—create a push out of public schools (discipline), create a pull toward alternatives (charter expansion), and create sustainable funding (Medicaid access)—can be replicated anywhere.
In fact, it probably already is being replicated. Right now. In your state.
The playbook is proven. The funding is massive. And the network is patient.
The Question We Should Be Asking
The debate about school choice often focuses on whether vouchers and charter schools are good or bad policy. Reasonable people disagree.
But that’s not the question this investigation raises.
The question is: Who gets to decide?
Should education policy be shaped by:
* Elected officials responding to constituents?
* Teachers and parents working through democratic processes?
* Transparent debates about costs, benefits, and tradeoffs?
Or should it be shaped by:
* Anonymous billionaires funneling money through donor-advised funds?
* National networks coordinating state-level campaigns?
* Think tanks and advocacy groups funded by undisclosed donors?
When Senator Amy Grady introduced SB 199, was she representing her constituents’ concerns? Or was she—unknowingly—implementing a strategy designed by the Cardinal Institute and funded by DonorsTrust?
When the legislature passed HB 2167 and SB 746, were they solving West Virginia’s problems? Or were they building infrastructure for a national movement funded by the Koch network?
The answer is probably both. And that’s what makes this so insidious.
The dark money network doesn’t replace democracy—it hijacks it. It finds real problems, offers real solutions, and uses real people to implement an agenda designed in boardrooms and funded by anonymous donors who will never face accountability for the consequences.
What Happens Next
All three bills are now law. They took effect in July 2025.
By the time you read this, West Virginia’s education system will already be changing:
* Teachers are removing more students under SB 199’s provisions
* Charter schools are being planned and opened under HB 2167’s framework
* Those charter schools are billing Medicaid under SB 746’s authority
And in the 2026-27 school year, the Hope Scholarship will open to universal eligibility. The State Treasurer projects it will cost $244.6 million annually—more than 25 times its initial cost.
The infrastructure is in place. The funding is flowing. The machine is running.
And the organizations that built it—the Cardinal Institute, Americans for Prosperity-WV, the State Policy Network, DonorsTrust, the Koch network—are already moving on to the next state, the next campaign, the next policy transformation.
Their donors remain anonymous. Their strategies remain hidden. And their accountability remains nonexistent.
The Bottom Line
SB 199, HB 2167, and SB 746 weren’t three separate bills that happened to pass in the same session.
They were three parts of a machine, designed by the Cardinal Institute and Americans for Prosperity-WV, funded by DonorsTrust and the Koch network, coordinated by the State Policy Network, and implemented by well-meaning legislators who may not have fully understood how their bills fit into a larger agenda.
The machine creates a push out of public schools, a pull toward charter schools, and sustainable funding to make it all work. It’s timed perfectly to support the Hope Scholarship’s expansion. And it’s all funded by anonymous donors who will never face consequences if it fails.
This is how dark money works in 2025. Not through bribery or corruption, but through patient, coordinated campaigns that build ecosystems of policy change while keeping the funders hidden.
West Virginia’s children are the test subjects. The rest of America is next.
References
[1] Cardinal Institute, “Our Story,” https://cardinalinstitute.com/our-story/
[2] State Policy Network, “Case Study: How the Cardinal Institute built coalitions to bring universal school choice to West Virginia,” https://spn.org/case-study-cardinal-institute-school-choice/
[3] Atlas Network, “Cardinal Institute increases access to education in West Virginia,” https://www.atlasnetwork.org/articles/cardinal-institute-increases-access-to-education-in-west-virginia
[4] Center for Media and Democracy, “DonorsTrust Injected More Than $150 Million in Untraceable Cash Into Right-Wing Groups in 2023,” November 20, 2024, https://www.exposedbycmd.org/2024/11/20/donorstrust-injected-more-than-150-million-in-untraceable-cash-into-right-wing-groups-in-2023/
[5] SourceWatch, “Americans for Prosperity,” https://www.sourcewatch.org/index.php/Americans_for_Prosperity
[6] Center for Media and Democracy, “Charles Koch’s ‘Stand Together’ Donor Conduits Move $176 Million,” December 20, 2023, https://www.exposedbycmd.org/2023/12/20/charles-kochs-stand-together-donor-conduits-move-176-million/
[7] Steven Allen Adams, “Americans for Prosperity pushing for changes to West Virginia education, healthcare,” News and Sentinel, February 1, 2025 https://www.newsandsentinel.com/news/local-news/2025/02/americans-for-prosperity-pushing-for-changes-to-west-virginia-education-healthcare/
[8] West Virginia Watch, “Morrisey sworn in as WV governor, says he’ll ‘end wokeness,’ prioritize cutting government waste,” January 13, 2025, https://westvirginiawatch.com/2025/01/13/morrisey-sworn-in-as-wv-governor-says-hell-end-wokeness-prioritize-cutting-government-waste/
[9] Americans for Prosperity-West Virginia, “Pathway to Prosperity 2025 Legislative Agenda,” http://wv.americansforprosperity.org/wp-content/uploads/2025/01/2025-WV-Pathway-to-Prosperity.pdf
[10] West Virginia Legislature, SB 199 (2025 Regular Session), https://www.wvlegislature.gov/bill_status/bills_text.cfm?billdoc=sb199%20sub1%20enr.htm&yr=2025&sesstype=RS&i=199
[11] West Virginia Watch, “WV Senate passes elementary student discipline bill, state teachers union calls measure ‘great step,’” March 10, 2025, https://westvirginiawatch.com/2025/03/10/wv-senate-passes-elementary-student-discipline-bill-state-teachers-union-calls-measure-great-step/
[12] West Virginia Watch, “Morrisey says WV teachers will have ‘more control’ over classrooms with elementary discipline law,” April 15, 2025, https://westvirginiawatch.com/2025/04/15/morrisey-says-wv-teachers-will-have-more-control-over-classrooms-with-elementary-discipline-law/
[13] West Virginia Legislature, HB 2167 (2025 Regular Session), http://www.legis.state.wv.us/Bill_Status/bills_text.cfm?billdoc=hb2167%20sub2%20eng.htm&yr=2025&sesstype=RS&i=2167
[14] Ibid.
[15] Cardinal Institute, “Charter Schools in West Virginia 101,” January 13, 2022, https://cardinalinstitute.com/charter-schools-in-west-virginia-101/
[16] West Virginia Legislature, SB 746 (2025 Regular Session), https://www.wvlegislature.gov/bill_status/bills_text.cfm?billdoc=sb746%20sub1.htm&yr=2025&sesstype=RS&i=746
[17] National Alliance for Public Charter Schools, “West Virginia Passes Two Bills to Strengthen Public School Choice,” May 5, 2025 https://publiccharters.org/news/wv-passes-bills-to-strengthen-choice/
[18] State Policy Network, “Week in Review: April 11, 2025,” https://spn.org/week-in-review-april-11-2025/
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About This Investigation: This article is based on public records, tax filings, legislative documents, and investigative journalism sources. The funding trail diagram represents documented financial flows based on IRS Form 990 filings and public disclosures. While direct coordination between organizations cannot be definitively proven due to the opacity of dark money networks, the pattern of timing, funding, and policy alignment is documented throughout.
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