Alberto Carvalho resigned Sunday as superintendent of the Los Angeles Unified School District, ending a four-month paid leave that followed FBI searches of his home and district headquarters in connection with a federal investigation into a failed $3 million artificial intelligence contract. The resignation removes the $440,000-a-year administrator from the nation's second-largest school district, which serves more than 500,000 students.
In his resignation letter addressed to "students, families, teachers, staff, and community," Carvalho said he wanted schools to remain focused on students and learning "without distraction" and cited what he called "historic progress" during his tenure. He wrote, "Placing students first has always guided my work. Because I believe our schools must remain focused on students and learning without distraction, I am resigning as Superintendent of LAUSD effective today, June 21, 2026."
The Investigation and Contract Controversy
Authorities have not provided details of the investigation, but it appears to relate to a contract the district had with an education technology company whose leader was later indicted for fraud. In 2024, Carvalho heavily touted a deal with AllHere for an AI chatbot named "Ed" designed to help students. About three months after unveiling the technology and paying the company $3 million, the district dropped its dealings with AllHere, which later collapsed into bankruptcy. Months later, founder Joanna Smith-Griffin was charged with securities and wire fraud, along with identity theft.
The district's Board of Education voted unanimously two days after the FBI served the search warrants to place Carvalho on leave pending the outcome of the investigation. The board said it received his resignation letter and said, "The Board remains steadfast in its commitment to ensuring stability, continuity, and continued progress through strong leadership. Our focus remains unchanged: providing every student with a high-quality education, supporting our dedicated workforce, and maintaining the trust of the communities we serve." It said Andrés Chait, who has been acting superintendent, will remain in that position until a permanent decision is made.
No Charges Filed
Authorities have not accused Carvalho of any crimes. He denied wrongdoing earlier this year and had asked to be reinstated as head of the district. Holland & Knight, the law firm representing him, previously said, "Mr. Carvalho respects the rule of law and the investigative process and has always acted in the best interests of students and within the bounds of the law. While the government's investigation remains ongoing, no evidence has been presented by prosecutors supporting any allegation that Mr. Carvalho violated federal law." Following the search of school headquarters, LA Unified said it was cooperating with investigators and had no further information.
Career and Compensation
Carvalho became superintendent of LA schools in 2022 on a four-year contract with an annual salary of $440,000. He began a new four-year contract earlier in February, just weeks before the raid, for the same salary, according to school board meeting documents. Before becoming the Los Angeles superintendent in 2022, Carvalho spent his entire education career in Miami-Dade County Public Schools, where he drew national praise for improving graduation rates and academic achievement among Black and Hispanic students. While advocating for Miami's immigrant students, he spoke openly about his own struggles as a young recent arrival from Portugal working in restaurants and construction while homeless at times. In Miami, Carvalho began his education career as a high school physics teacher in the 1980s and climbed the administrative ranks. He led the district for nearly 14 years.
Previous Ethics Questions
In 2020, a nonprofit he founded to support Miami schools drew scrutiny after it solicited a $1.57 million donation from an online education company doing business with the district. The district's inspector general later determined the donation didn't violate state or district ethics policies but did create the "appearance of impropriety" and should be returned, according to The Miami Herald. Instead of returning the funds, the foundation distributed the money to Miami-Dade teachers in the form of $100 gift cards.
In February, the FBI also searched a third location near Miami. The Miami Herald reported the Florida property belonged to Debra Kerr, who previously worked with AllHere.
Why This Matters:
The resignation highlights the fiscal and governance risks when large public institutions rapidly adopt emerging technologies without adequate vetting. A $3 million contract that collapsed within three months represents a significant loss of taxpayer resources in a district already facing budget pressures. The case underscores the need for rigorous procurement standards and conflict-of-interest protocols when public officials negotiate contracts with private vendors. For the more than 500,000 students in LA Unified, leadership instability during a federal investigation creates uncertainty about district priorities and spending decisions. The pattern of ethics questions following Carvalho from Miami to Los Angeles raises broader concerns about accountability mechanisms in large urban school systems and whether boards of education conduct sufficient due diligence before awarding lucrative contracts to top administrators.