In the heart of Silicon Valley’s affluent Crescent Park neighborhood in Palo Alto, California, Meta CEO Mark Zuckerberg and his wife, philanthropist Priscilla Chan, have found themselves at the center of a brewing controversy. The couple has been accused of operating an unauthorized private school on the grounds of their sprawling compound, in direct violation of local city codes. This revelation has not only drawn scrutiny from city officials but has also ignited frustration among residents, who see it as a glaring example of hypocrisy, especially in light of the recent closure of a school the couple founded for low-income families. The story, first reported by The New York Times, highlights the tensions between billionaire privilege and community regulations in one of America’s wealthiest enclaves.

The school in question, known as BBS (formerly Bicken Ben), was established during the COVID-19 pandemic as what the couple’s spokesperson described as a “home-school pod” for their children and a select group of others. According to state filings with the California Department of Education, BBS enrolls 14 students ranging from kindergarten to fourth grade. The facility boasts three full-time teachers, one part-time teacher, an administrator, and a support staff member, operating as a co-educational day school. Neighbors first noticed suspicious activities in one of Zuckerberg’s properties on Hamilton Avenue, including parents dropping off and picking up children daily, and large vans with tinted windows shuttling kids for outings. Upon investigation, residents confirmed the operation matched the description of BBS.

Aaron McLear, a spokesperson for Zuckerberg and Chan, has vehemently denied that BBS constitutes a private school in the legal sense. “This was a home-school pod formed during the pandemic and continued for stability,” McLear stated, emphasizing that the state affidavit forms do not adequately categorize such models. He further clarified that no tuition is charged, and parents actively participate in teaching certain subjects. McLear assured that the families involved were unaware of any potential violations and that the operation would be relocated outside Crescent Park. Despite these assertions, state documents explicitly label it as a private school, fueling the debate over its true nature.

The core of the accusations lies in Palo Alto’s strict zoning and operational regulations. The city prohibits private schools and businesses from operating out of residential homes if non-resident employees are involved or if the activity generates excessive traffic beyond typical household levels. Such ventures require special permits from city authorities, which Zuckerberg and Chan reportedly never sought. Meghan Horrigan-Taylor, a spokesperson for Palo Alto, confirmed that an investigation revealed the unauthorized operation of a private school at the property. “We believe the facility has since closed,” she noted, though no fines or penalties have been publicly imposed, raising questions about preferential treatment for the tech mogul.

This incident unfolds against a sensitive backdrop for the couple. In April 2025, The Primary School in East Palo Alto—a institution they founded in 2016 to serve children from low-income families—announced its closure by the summer of 2026. Funded through the Chan Zuckerberg Initiative (CZI), the school was one of the first beneficiaries of their ambitious philanthropy efforts, integrating health and education services. The decision to shut it down came as CZI shifted focus away from social initiatives like education and affordable housing toward scientific research, leaving parents and students in disarray. “It’s heartbreaking,” one affected parent told reporters, highlighting the abrupt nature of the closure communicated via a calendar invite.

Residents of Crescent Park, a quiet, upscale area where homes average millions of dollars, have expressed profound irritation over the perceived double standard. “How can they close a school for underprivileged kids while running their own elite pod in our backyard?” queried one anonymous neighbor in a local forum. The irony is palpable: while The Primary School aimed to bridge socioeconomic gaps, BBS appears to cater exclusively to a privileged few, including two of Zuckerberg and Chan’s three daughters. Community outrage extends beyond the school to the broader disruptions caused by the couple’s compound. Spanning five properties valued at over $110 million, the estate has been under near-constant construction for eight years, featuring underground bunkers, a Roman-inspired statue of Chan, and extensive renovations that neighbors describe as a “perpetual construction zone.”

Complaints about noise from heavy machinery, blocked streets, and increased traffic have been rampant. “It’s like living next to a shipping dock,” lamented a longtime resident, who accused local police of providing undue security favors to Zuckerberg, such as patrolling events at his home. Despite official denials, these grievances paint a picture of a billionaire enclave that operates above the rules, exacerbating class tensions in a region already divided by tech wealth. Social media has amplified these sentiments, with X users decrying the “illegal private school in his illegal Palo Alto compound” and questioning why such violations go unchecked.

Zuckerberg, whose net worth exceeds $180 billion, and Chan have long positioned themselves as champions of education reform through CZI, pledging billions to innovative programs. Yet, this scandal underscores the challenges of blending personal life with philanthropy in the public eye. Critics argue it reveals a disconnect: prioritizing a bespoke educational setup for their circle while withdrawing support from broader community efforts. As one X post put it, “Mark Zuckerberg and Priscilla Chan Are Reportedly Running a Private School on Their Palo Alto Property. The school is in violation of city code.”

In response to the backlash, McLear reiterated the couple’s commitment to education but offered no further details on the relocation or future plans for BBS. City officials have not indicated plans for enforcement beyond the closure, leaving residents to wonder if accountability truly applies to everyone. As Palo Alto grapples with its identity as a tech hub, this episode serves as a stark reminder of the frictions between innovation-driven fortunes and everyday community life.

The controversy arrives at a pivotal time for Zuckerberg, who continues to navigate Meta’s challenges in AI and virtual reality amid ongoing antitrust scrutiny. Whether this local dust-up tarnishes his global image remains to be seen, but for Crescent Park neighbors, the message is clear: even in Silicon Valley, rules should bind the powerful as much as the ordinary.