New York City's Department of Education (DOE) is under fire for approving nearly $750,000 in catering expenditures for fiscal year 2025 at a single Brooklyn restaurant, Fusion East. The spending, defended by the DOE as part of a broader initiative to support Minority and Women-owned Business Enterprise (MWBE) vendors, has drawn sharp criticism from City Comptroller Brad Lander, who raised concerns about mayoral oversight of the public school system's finances.
The controversy centers on catering services provided by Fusion East, a Caribbean and soul food restaurant certified as an MWBE vendor. The DOE stated that the "increase in spend is aligned with the mayor’s citywide goal of increasing the utilization of MWBE suppliers for goods and services," according to a May 30 response to the Comptroller's office. This justification comes despite the significant sum allocated to a single establishment.
Comptroller Lander's office initiated an inquiry after observing a "significant spike in purchase orders" to Fusion East between fiscal years 2022 and 2025. Deputy Comptroller for Contracts and Procurement Charlette Hamamgian highlighted a series of 13 consecutive invoices from the restaurant, totaling $19,998, for events at Brownsville Collaborative Middle School in Brooklyn. The school, with an enrollment of 286 students and a reported 40% chronic absenteeism rate, is the primary beneficiary of the catering services.
The DOE has been actively increasing its engagement with MWBEs, with spending on such businesses rising from $224 million in fiscal year 2021 to $535 million in fiscal year 2022. While the department aims to enhance opportunities for diverse entrepreneurs, the scale of the Fusion East contract has prompted questions regarding spending limits and the allocation of funds, particularly for a school with specific attendance challenges. The tweet from Yiatin Chu described the situation as "Outrageous! DOE defends spending $750K in 2025 at a single restaurant bec it’s MWBE vendor."
Critics argue that while supporting MWBEs is crucial, the substantial expenditure at one vendor for a single middle school warrants closer examination. The DOE's simplified procurement method allows for purchases under $5,000 with MWBE vendors without bidding, but the cumulative total for Fusion East far exceeds such discretionary limits, drawing ongoing scrutiny from city officials and the public.