Audit Finds Millions in Education Funds Missed Classrooms; Department Pledges Overhaul

More than a decade after the Virgin Islands Inspector General flagged critical mismanagement of Education Initiative Fund dollars, a newly released audit reveals the problems not only persist, but have grown more severe.

According to the Inspector General’s 2025 report, the Virgin Islands Education Department misused more than $5.1 million in EIF money between October 2019 and September 2022, directing funds meant to benefit public school students instead toward hurricane debris removal, promotional merchandise, office expenses, and unrelated contractor payments. Of the $6.3 million drawn from the fund during that period, only a fraction made it to classrooms.

Auditors found that VIDE repeatedly failed to comply with the law requiring $50,000 annual allocations to each public school by October 15. Some schools never received their funds at all, while others saw disbursements delayed for months, undermining the purpose of the EIF, which was established by law in 1998 to channel Virgin Islands Lottery proceeds directly into student enrichment.

“VIDE did not administer the Education Initiative Fund in accordance with Act No. 6255,” the audit states. “The majority of the funds were not used for their intended purpose of directly benefiting students and improving educational outcomes.”