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.