AUSTIN, Texas, Dec. 5, 2025 /PRNewswire/ -- Five cities and school districts across the state spent $6,919,444 on Amazon in 2023 - according to estimates in a new report from the Institute for Local Self-Reliance (ILSR). The report found school districts could have saved 17 percent of costs if Amazon had not overcharged them.

According to ILSR, Austin paid prices varying from $564 to $792 for the same video conferencing system. Cities like Austin may have been subject to Amazon's AI-driven "dynamic pricing," which raises and lowers prices according to the company's "vast trove of data" about customers. This suggests that Amazon may not be giving Texas schools and local governments a fair shake.

"At a time when our public goods and services are being slashed from the School Board to the State level this is extremely concerning. Amazon's practices of price gouging and monopolization do not ensure that our kids and teachers are getting the full investment of public dollars that they deserve," stated Harry White, father of a sixth grade student at Parkland Middle School and member of Amanecer People's Project.

Drawing on purchasing records from 128 cities, counties, and school districts serving 51 million Americans, a new investigation by ILSR - Turning Public Money into Amazon's Profits - exposes how Amazon has used its market power, political influence, and opaque pricing algorithms to insert itself into public purchasing systems with little transparency or oversight.

Amazon also drives out local businesses and jobs. Sandy Grodin, who owns El Paso Office Supplies, would have had to forfeit 45% of his sales to the corporation in order to sell on Amazon. "It means I have to lay off people," Grodin said.

"Amazon is reshaping public procurement in ways that expose taxpayer dollars to waste and risk. It has persuaded cities and schools to abandon safeguards meant to ensure fair prices and accountability - while driving out independent suppliers, eroding competition, and putting Amazon in a position to dictate terms," stated Stacy Mitchell, co-executive director of ILSR.

This report comes as El Paso attempts to bridge a budget gap that has already frozen 1,000 jobs; Austin Independent School District has already closed 10 schools due to its nearly $20 million budget deficit; it is now considering selling two more.

SOURCE Institute for Local Self-Reliance (ILSR)

MENAFN05122025003732001241ID1110442807