NOLA Education, the New Orleans-based operator of the Star Academy program, said on Thursday, October 15, that it regrets its education proposal for at-risk students did not come to fruition in Puerto Rico, amid a controversy over a roughly $38 million contract that has pitted Family secretary Suzanne Roig against the dismissed ADSEF administrator, Blanca Medina. In written statements, the company said it is disappointed its tools will not be available to at-risk students on the island.
It said the proposal was a three-year pilot in 25 public schools that would have served about 2,000 students behind academically or at risk of dropping out. The company said it submitted the proposal after an invitation from the Family Department, with the award announced in January 2026, and that after months without communication it was told on May 19 that the project would not continue.
NOLA Education said Star Academy signed no contract with the Puerto Rico government or any island school system and received no compensation or funds. It said there has been confusion over the federal Administration for Children and Families’ position on using Temporary Assistance for Needy Families (TANF) funds, and that in its reading of federal guidance the program could be TANF-funded if properly structured.
It acknowledged agencies need a cost allocation plan and documented eligibility before committing federal money. The program operates in 18 states and more than 120 sites, the company said, citing a 12.76% dropout rate among Puerto Rico grades 9-12 students in 2024-2025. Medina told the Senate that Roig pressured her to sign the contract; Roig rejected the claims and said the agreement was never formalized and no funds were disbursed.