Lamar Alexander - After Governorship

After Governorship

Moving with his family to Australia for a time, he would soon return to Tennessee and became the president of the University of Tennessee (1988–1991), and United States Secretary of Education (1991–1993). As Education Secretary, he sparked controversy after he approved Transnational Association of Christian Colleges and Schools (TRACS) to accredit schools despite an advisory panel that repeatedly recommended against it in 1991 and 1987. In 1993, Steve Levicoff published a book-length critical discussion of TRACS and Alexander's decision in When the TRACS Stop Short.

Former Department of Education employee and writer Lisa Schiffren has stated that, "His fortune is founded on sweetheart deals not available to the general public, and a series of cozy sinecures provided by local businessmen. Such deals are not illegal..." In 1987, he helped found Corporate Child Care Management, Inc. (now known as Bright Horizons Family Solutions Inc.), a company that – via a merger – is now the nation's largest provider of worksite day care. While businessman Jack C. Massey spent $2 million on this enterprise, Alexander co-founded the company with only $5,000 of stock which increased in value to $800,000, a 15,900 percent return within four years. Also in 1987, he a wrote a never-cashed investment check for $10,000 to Christopher Whittle for shares in Whittle Communications that increased in value to $330,000. In 1991, Alexander's house just purchased for $570,000 was sold to Whittle for $977,500. Alexander's wife obtained an $133,000 profit from her $8,900 investment in a company created to privatize prisons. Alexander frequently shifted assets to his wife's name, yet such transfers are not legal under federal ethics and security laws. In his 2005 U.S. Senate financial disclosure report, he listed personal ownership of BFAM (Bright Horizons Family Solutions) stock valued (at that time) between $1 million and $5 million dollars. He taught about the American character as a faculty member at Harvard University's Kennedy School of Government.

He also made two unsuccessful runs for President of the United States, in the 1996 and 2000 election cycles. In 1996, he finished third in both the Iowa caucus and New Hampshire primary and dropped out before the Super Tuesday primaries. After dropping out of the race, Alexander took an advisory role in the Dole/Kemp campaign. His second candidacy, in which he traveled around the U.S. in a Ford Explorer, eschewing a campaign bus or plane, lasted less than six months, being announced March 9, 1999, and withdrawn August 16, 1999 (after a poor showing in the Ames Straw Poll), both times in Nashville. An article in The New York Times during this period comments that Alexander's "bitter belief that party's nominating process is being short-circuited by big money and big media has become consuming preoccupation," referring to the Republican Party.