In 1994, the Charter School Fund was added to the Elementary and Secondary Education Act (ESEA); in 1995 it began dispersing federal funds to states so that states could use the money to pilot charter schools. Since then, the CSP has handed over about $4 billion to support charter schools, and there are supposed to be some federal guidelines attached to the process. But a new report from the Network for Public Education charges that roughly $1 billion of that has been lost to fraud and waste in the charter school sector.