Skip to content
Search

Latest Stories

Follow Us:
Top Stories

Online Learning Works Best When Markets Lead, Not Governments. Project Kitty Hawk Shows Why.

Opinion

A woman typing on her laptop.

North Carolina's Project Kitty Hawk, an online program-management system built by the government, has been beset by difficulties and slow to grow despite good intentions.

Getty Images, Igor Suka

North Carolina’s Project Kitty Hawk is a grand experiment. Can a government entity build an online program-management system that competes with private providers? With $97 million in taxpayer funding, the initiative seemed promising. But, despite good intentions, the project has been beset by difficulties and has been slow to grow.

A state-chartered, university-affiliated online program manager may sound visionary, but in practice, it’s expensive, inefficient, and less adaptable than private solutions. In a new report for the James G. Martin Center for Academic Renewal, I examined the experience of Project Kitty Hawk and argued that online education needs less government and more free markets.


In many ways, Project Kitty Hawk mirrors private online program managers (OPMs). However, it differs in two fundamental ways. First, because it’s a public university affiliate, it must follow all the governance rules applicable to state entities. This creates additional complexity not found in the private sector; overlapping boards and bureaucratic layers significantly slowed Project Kitty Hawk’s development. Before PKH could launch a single program, it needed approvals from the PKH board, the UNC System Office, and the partnering campus—all operating on different calendars and according to different priorities.

More importantly, Project Kitty Hawk receives government money. Its $97m in start-up funding was provided by North Carolina taxpayers. Many of these silent “shareholders” will neither enroll in courses nor see any direct monetary return on their “investment.” Why ask taxpayers to foot start-up costs at all when expenses can be resolved through provider partnerships? Creating state-run programs requires taxpayers to assume 100 percent of the downside risk while realizing none of the upside. In contrast, private OPMs bear both risk and cost.

To its credit, going forward, Project Kitty Hawk will succeed or fail based on the value of the services it provides to North Carolina’s universities, which are not required to choose PKH as a vendor. But it has already been forced to reduce its program and revenue projections due to uncertainty about possible new regulations on revenue-sharing.

When Project Kitty Hawk moved from a revenue-sharing to a fee-for-service model in 2024, it decreased its projections for both program offerings (from 100 to 56 by 2028) and enrollments (from 31,000 to 14,800 by 2028). At the time, PKH stated that changing its model necessarily reduced its program pipeline. One university that had planned to use PKH as a partner pulled out because switching to fee-for-service would cause projected revenue losses in the first few years of operation.

Innovation thrives when universities can choose partners and pay only for results. Truly private revenue-sharing and fee-for-service models allow campuses to expand online offerings without building internal bureaucracies or footing the bill for start-up costs. This free-market competition decreases expenditures, improves student outcomes, and fosters a wide variety in program offerings.

Private OPMs are already offering such services. Yes, there have been bad actors, as there are in any market. But, on the whole, these services allow universities to offer affordable, accessible courses and to reach students that they wouldn’t otherwise. Private education-technology firms, such as Risepoint, 2U, and ed2go, have been especially valuable to small colleges and universities that lack the resources to build robust in-house online offerings. Moreover, these firms operate with zero taxpayer startup costs and rapid scalability. Many North Carolina colleges and universities, including UNC-Chapel Hill, UNC Greensboro, NC Central University, Winston-Salem State University, East Carolina University, and Central Carolina Community College, already use public-private partnerships to deliver online courses. A centralized, state-chartered platform can’t offer the same benefits.

But the current regulatory environment slows down even the private sector. Concerns about the possibility of new regulations have threatened providers’ models that provide student acquisition, retention support, technology deployment, and curriculum innovation in return for a share of tuition revenue.

As Workforce Pell is implemented, broadening the universe for short-term and career coursework, adult learners will demand even more online courses. Colleges will need to rapidly address access and the scalability of offerings. Congress should facilitate colleges using public-private partnerships to meet these needs by codifying the 2011 “bundled services” guidance. This reform would give universities certainty about revenue-share agreements going forward.

At the same time, state governments should encourage public institutions to contract with affordable, efficient private providers for online course marketing, recruitment, and instructional design, and allow them to succeed or fail based on student outcomes. This will be especially important for community colleges as they work to meet new demand created by Workforce Pell funding.

Other states should learn from North Carolina’s experiment; don’t gamble with taxpayer capital when private firms already offer scalable solutions. Students, not bureaucracies, should be the beneficiaries of online-education innovation.


Jenna Robinson is president of the James G. Martin Center for Academic Renewal.


Read More

Children's books on a shelf.

A 17-year-old changemaker from Ohio, Sahana Srikanth founded the Young Learners Foundation to tackle the literacy gap, donating over 18,000 books and empowering youth through mentorship, education, and community-driven impact.

Pexels

Expanding Access to Books and Literacy Opportunities for Underserved Youth

The Bridge Alliance Education Fund, the sponsor of The Fulcrum, has also recently launched the Democracy Architects Council. Through this fellowship, changemakers ages 18-28 across the country receive the skills, mentorship, and community needed to turn their ideas into real impact. The story below is one example of what's possible when young people are given the tools and support to lead.


Sahana Srikanth, Founder of Young Learners Foundation

Keep ReadingShow less
I’m a Former Immigration Lawyer Turned Public School Teacher. Here’s How I’m Engaging Students in Civics.
a dining room table
Photo by Tuyen Vo on Unsplash

I’m a Former Immigration Lawyer Turned Public School Teacher. Here’s How I’m Engaging Students in Civics.

During a recent civics class a student asked me why protests were happening around the country. This student wasn’t being partisan or argumentative. They were just trying to understand what is happening in our democracy right now.

When it comes to teaching civics through current events, the hardest part doesn’t involve breaking up disagreements. Rather, the hardest and incidentally most valuable component is helping students develop meaning from situations as change unfolds on their social media feeds in real time.

Keep ReadingShow less
A student in uniform walking through a campus.

A Reserve Officer Training Corps (ROTC) cadet walks through campus November 7, 2003 in Princeton, New Jersey.

Getty Images, Spencer Platt

Hegseth is Dumbing Down the Military (on Purpose)

One day before the United States began an ill-defined and illegal war of indefinite length with Iran, Pete Hegseth angrily attacked a different enemy: the Ivy League. The Secretary of War denounced Ivy League universities as "woke breeding grounds of toxic indoctrination” and then eliminated long-standing college fellowship programs with more than a dozen elite colleges, which had historically served as a pipeline for service members to the upper ranks of military leadership. Of the schools now on Hegseth’s "no-fly list," four sit in the top ten of the World’s Top Universities for 2026. So, why does the Secretary of War not want his armed forces to have the best education available? Because he wants a military without a brain.

For a guy obsessed with being the strongest and most lethal force in the world, cutting access to world-class schools is a bizarre gambit. It does reveal Hegseth doesn’t consider intelligence a factor–let alone an asset–in strength or lethality. That tracks. Hegseth alleges the Ivies infect officers with “globalist and radical ideologies that do not improve our fighting ranks…” God forbid the tip of the sword of our foreign policy has knowledge of international cooperation and global interconnectedness. The Ivy League has its own issues, but the Pentagon’s claim that they "fail to deliver rigorous education grounded in realism” is almost laughable. I’m a veteran Lieutenant Commander with two Ivy League degrees, both paid for with military tuition assistance, and I promise: it was rigorous. Meanwhile, are Hegseth’s performative politics grounded in reality? Attacking Harvard on social media the eve of initiating a new war with a foreign adversary is disgraceful, and even delusional.

Keep ReadingShow less
Transform Teaching Now: Accommodate Learning In Chaotic Times

A public health professor argues that trauma-informed, flexible, community-centered teaching is essential to help students succeed in 2026’s volatile environment.

Photo by 2y.kang on Unsplash

Transform Teaching Now: Accommodate Learning In Chaotic Times

It’s an extremely stressful time for many Americans, including students in higher education. They need to deal with the ongoing impact of chaos on their learning through this academic year and beyond. Faculty need to adjust to their needs.

The most recent American Psychological Association Stress in America™ survey shows “62% of U.S. adults 18 and over reported societal division as a significant source of stress in their lives.” Seventy-six percent of U.S. adults say the future of the nation is a significant cause of stress.

Keep ReadingShow less