Federal settlement keeps scrutiny on Philadelphia charter admissions

Franklin Towne Charter High School and its former chief executive agreed to pay nearly $4 million to resolve federal claims tied to alleged racial discrimination in the school’s January 2023 admissions lottery, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced Sept. 4, 2026.

The settlement changes how Franklin Towne will conduct future admissions lotteries, but it does not end a separate Philadelphia charter proceeding that could affect the school’s charter status.

What the federal settlement says

Under separate settlement agreements, Franklin Towne agreed to pay $3,639,328.77 and former CEO Joseph Venditti agreed to pay $275,000. The combined amount is $3,914,328.77.

Federal prosecutors alleged that Franklin Towne, acting through or at the direction of Venditti, manipulated what should have been a random January 2023 admissions lottery in a way that reduced the chances of Black applicants being admitted. The school was receiving federal education-related grant funding at the time.

The Justice Department pursued the claims under the False Claims Act, alleging that the school and Venditti violated obligations connected to that federal funding. Franklin Towne and Venditti denied the allegations, and the settlement states that the claims are allegations only and that there has been no determination of liability.

Future lotteries will have independent administration

As part of the settlement-related governance changes, Franklin Towne replaced its chief executive and agreed to hire an independent third party to conduct all future admissions lotteries.

That requirement is the most direct change for families seeking admission. Applicants and parents should look for information from the school about who will administer future lotteries, how the process will be documented and when admissions procedures will be published.

The settlement does not, by itself, close Franklin Towne or revoke its charter. It also does not decide the outcome of the Philadelphia School District’s separate review.

Why federal funding matters

Title VI of the Civil Rights Act of 1964 prohibits discrimination based on race, color or national origin in programs and activities receiving federal financial assistance. The U.S. Department of Education says Title VI protections cover public schools and extend to admissions and other school programs.

Title VI therefore describes the civil-rights standard relevant to the allegations. But the Justice Department announcement describes this matter as a False Claims Act resolution tied to the school’s obligations as a recipient of federal assistance, not as a Title VI judgment.

Philadelphia charter review remains active

The Philadelphia Board of Education said Sept. 4 that its notice of revocation for Franklin Towne remains active. The board said its Charter Schools Office had raised concerns about the school’s admissions practices and reviewed admissions data over four years before recommending the notice based on alleged violations of Pennsylvania’s Charter School Law and the school’s charter agreement.

That local process is separate from the federal settlement. The board has not announced a final decision revoking the charter, and the settlement does not determine whether the charter will be revoked, maintained or otherwise addressed.

What families and officials should watch

The immediate questions for families are how Franklin Towne identifies the independent lottery administrator, how future admissions procedures are disclosed and whether the school provides a clear record of the oversight changes.

Public officials and applicants should also follow the next procedural step in the Philadelphia charter matter. The Board of Education’s notice remains active, so the school’s future status is still unsettled even after the federal settlement.

The agreement provides a financial and governance response to allegations involving a past admissions lottery. It does not establish liability, settle the separate charter review or determine the school’s long-term status.

Sources

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