About 2% of purchases are unallowable expenses and only 0.3% represent fraud or egregious purchases
PHOENIX – Following some outrageous and reckless news reports of widespread purchasing fraud in Arizona’s Empowerment Scholarship Account program, ADE is releasing results of a statistical analysis, recently conducted by a Stanford PhD, to set the record straight.
Superintendent Horne said:
About 2.0% of dollars spent by ESA account holders is for items that are unallowable under program rules, according to a precise study completed by a Stanford PhD.
In addition, actual fraud or egregious purchases are at 0.3%, according to the same study.
This is far below the rate of misuse at a variety of programs such as Medicaid (7.4%), food stamps (9.3%), and unemployment insurance (14.4%).
The submission of a purchase that is deemed unallowable does not constitute fraud. Most are innocent mistakes, such as an error in a form that must be resubmitted, or educational items that are not on the allowable list but that the user could have in good faith believed were permitted. Some examples would be backpacks, lunch boxes and water bottles.
A ridiculous figure of 20% fraud has been circulating concerning ESA purchases which resulted from a total misinterpretation of data that we provided to Channel 12. The 20% figure represented program participants that ADE had selected for risk-based auditing. It had nothing to do with fraud.
Action is taken to recover or collect funds or refer to law enforcement, if necessary. To date, more than $1.2 million has been recovered in this process.
Continued use of the 20% fraud allegation is an outrageous misrepresentation to the public that must stop.”
A summary of information released from ADE’s internal analysis is attached. For more details, go to https://www.azed.gov/esa-study
The “One Big Beautiful Bill,” championed by President Trump and passed by the House in 2025, is transforming the landscape of American education. This landmark legislation promises a nationwide expansion of school choice, marking a historic shift in education reform by empowering parents and prioritizing student success over bureaucracy. By introducing substantial government funding through tax credits, the bill paves the way for equitable access to educational options, including public charter schools and private school vouchers. This thoughtful legislative package not only amplifies parental empowerment but also fosters innovation and competition within the educational sector, which could accelerate overall excellence across all states.
The National Impact of the One Big Beautiful Bill on School Choice and Education Equity
The core of this legislation is the Educational Choice for Children Act (ECCA), establishing a massive $5 billion annual tax credit scholarship program. This program enables families earning up to 300% of the area median income to receive scholarships to fund various educational needs, such as private school tuition, tutoring, or special education services. In doing so, the bill aims to shake up the traditional, rigid public school system and tackle the entrenched disparities caused by the “zip-code lottery” that has long dictated educational quality based on location.
Key components include:
Parental control: Resources are directed to parents through scholarship-granting organizations rather than through federal bureaucracies.
Funding versatility: Scholarships can be applied towards diverse educational services, supporting customized learning paths.
Prioritization of low-income families: Strong emphasis on access for underserved and minority students, promoting education equity nationwide.
Encouragement of educational innovation: By supporting various schooling options, the bill stimulates competition and creativity among institutions.
This new nationwide framework is a significant step toward dismantling barriers that have long hindered many students from accessing quality education. Utah, as a pioneer in education freedom, has demonstrated the transformative effects of such flexibility and parental empowerment on student outcomes.
Empowering Parents and Enhancing Community Investment in Education
One of the most compelling aspects of the One Big Beautiful Bill is its emphasis on parental empowerment. It places decision-making power right where it belongs — in the hands of families themselves. As opposed to top-down mandates, this bill supports grassroots involvement and respects local communities’ unique needs and values.
By funneling government funding through scholarship-granting organizations that depend on charitable contributions, the bill cultivates strong community investment and ownership over educational outcomes. This approach also minimizes federal overreach, aligning well with contemporary educational policy debates about roles and responsibilities.
Empowers parents to tailor education to their child’s individual needs.
Provides innovative educational solutions including homeschooling support and tutoring.
Boosts community involvement by incentivizing charitable giving toward education.
How Government Funding and Policy Changes Spur Educational Innovation and Student Success
The bill’s robust funding mechanism ignites fresh opportunities for educational innovation. As parents gain access to myriad schooling options — from public charter schools to private institutions — schools are poised to respond to families’ expectations with improved programming and services. Competition often serves as a catalyst for continuous improvement within schools and districts.
Financial incentives encourage schools to enhance their curricula and resources.
Parents’ ability to choose drives institutions to focus more on quality and outcomes.
Diverse educational models are cultivated, ranging from Montessori to STEM-focused academies.
The rise in choice fuels student success by embracing varied learning styles and authentic assessments, concepts explored in-depth on our site (best assessment methods). This multi-faceted approach respects the individuality of learners and fosters academic achievement through tailored support.
Addressing Concerns and Myths Surrounding Private School Vouchers and Public Charter Schools
Although critics voice concerns about the expansion of private school vouchers and funding shifts, research and real-world examples from progressive states counter these fears. Evidence shows that when responsibly implemented, school choice programs do not drain public resources but instead incentivize higher standards across all schools.
School choice funds students, not systems, allowing flexible application of resources.
Competition leads to improved quality in both public and private sectors.
The framework excludes drainage of funds from public charter schools while encouraging collaboration.
To understand the intricate dynamics and political debates related to public education reform, you can explore current conversations at Texas educators’ views on education policy. Throughout, the overarching aim remains education equity, ensuring every child has access to a high-quality education regardless of background.
Building a Future of Educational Freedom Through Community and Policy
Since the One Big Beautiful Bill places families at the helm, community engagement and parental involvement become the pillars for sustained success in educational outcomes. The legislation embodies a commitment to transforming American education beyond incremental improvements.
Creates a flexible, scalable model for all 50 states.
Elevates parental choice to foster diverse, personalized learning experiences.
Encourages community investment to strengthen school systems.
Focuses on educational equity and closing achievement gaps.
For parents seeking to navigate this new landscape and optimize their child’s readiness and success, our resources on parental support and school readiness offer practical strategies. With this transformative legislation, we may finally witness American education living up to its promise of freedom, opportunity, and excellence for all students.
NOTE: At this time, Governor Katie Hobbs has not yet indicated whether or not Arizona will “opt into” this program. If she declines to opt in for the state of Arizona, Arizona residents will still have the option of sending tax credit dollars to other states (see below):
Donor Benefits & Rules
If you pay federal income tax, you can support K‑12 scholarships and reduce your tax liability at the same time.
Individuals may donate to any qualified SGO nationwide and claim a dollar‑for‑dollar tax credit up to $1,700 per year.
Unused credit can be carried forward for up to five years.
Donations must be made in cash and cannot be earmarked for a specific student.
Businesses are not eligible for the federal credit (it applies only to individual taxpayers).
If your state offers its own credit, you may receive both state and federal credits by making separate contributions to each program.
Recently, STAY attended a meeting to discuss the Educational Choice for Children Act (ECCA).
What is the ECCA? The ECCA is a federal bill that would expand school choice across America, providing K-12 scholarships for up to two million students. Ten billion dollars in Federal Tax Credits would be available for individuals and businesses that contribute to a school tuition organization within their state. In Arizona, this would be in addition to our state tax credit for private schools. ECCA funds could be used to pay for tuition, tutoring, special need services, homeschooling curriculum materials, and other eligible services.
How would the bill impact you? The ECCA would provide Arizona families with additional scholarship opportunities so they can choose the education that best fits their child’s needs.
Right now, Congress is negotiating budget reconciliation which represents a crucial moment in history to advocate for policies that can improve our educational system. We have an unprecedented opportunity to include the ECCA in the budget reconciliation process, and your voice is needed to make this happen.
Please read the Call to Action from our friends at American Federation for Children, then call or email Arizona Rep. David Schweikert today.
on Ranking 2nd in the Nation for educational freedom and school choice policies!
How All 50 States Rank on School Choice, VIVR, February 14, 2025, Warhammer
Florida ranks highest in the nation for its educational freedom and school choice policies, with Arizona, Arkansas, Oklahoma, and Iowa following closely behind. This is according to a new report on school choice that the Arlington, Va.-based American Legislative Exchange Council (ALEC) published last week.
“We are in the midst of an educational renaissance in America. At the time of writing, a record 12 states are empowering (or will soon be empowering) every family and every student with education freedom,” according to report author Andrew Handel, who directs ALEC’s Education and Workforce Development Task Force.
“These states recognize the unique needs of each student and that parents, not government bureaucrats, are best positioned to determine those needs and choose a school that best fits their student.”
The ALEC report analyzes what school choice options are available to families in each of the 50 states, including charter schools, home schools, virtual schools, and open enrollment laws.
The report, titled the 2025 ALEC Index of State Education Freedom, highlights what it says are major school choice reforms in seven states last year:
• Alabama: Gov. Kay Ivey signed the Creating Hope & Opportunity for Our Students’ Education (CHOOSE) Act. The program creates Education Savings Accounts (ESAs) available to all students in the state starting in 2027.
• Georgia: Gov. Brian Kemp signed the Georgia Opportunity Scholarship Program into law, which creates an ESA program for students attending the bottom 25% of public schools in the state.
• Louisiana: Gov. Jeff Landry signed the Louisiana Giving All True Opportunity to Rise (LA GATOR) program into law. State officials will eventually make this ESA program available to all students in the state, with the exact timeline for universal eligibility still undetermined by the Louisiana Department of Education.
• Missouri: Gov. Mike Parson signed an expansion of the Missouri Empowerment Scholarship Account Program into law. Previously, this ESA program was limited to students in the most populated parts of the state who had a household income below 200% of the level for free-and-reduced-price lunches. The legislature voted to expand the program to remove the geographic requirements, permit siblings to use the program, raise the income threshold to 300% of the level for free-and-reduced-price lunches, and increase the funding cap from $50 million to $75 million.
• Oklahoma: Gov. J. Kevin Stitt signed legislation into law that expands the state’s open enrollment program to include interdistrict transfers. The expansion, Handel wrote, makes Oklahoma’s open enrollment law the strongest in the country.
• Utah: The state legislature voted to expand funding for the Utah Fits All Scholarship Program. The program, which is available to all students in the state, saw massive demand amongst families, Handel wrote. As a result, the legislature doubled the funding cap from $40 million to $80 million for the program.
• Wyoming: The state legislature passed a significant ESA program this year, but Gov. Mark Gordon line-item vetoed some of its provisions to reduce eligibility. As a result, this new ESA program is available to students with a household income below 150% of the federal poverty level. The ESA, Handel wrote, is Wyoming’s first education freedom program ever created.
The ALEC report ranks each of the 50 states by a letter grade for education freedom.
The states that earned an A rating: Florida, Arizona, Arkansas, Oklahoma, Iowa, West Virginia, Indianaand Utah.
The states that earned a B rating: Louisiana, Ohio, Alabama, North Carolina, South Carolina, Missouri and New Hampshire.
The states that earned a C rating: Tennessee, Georgia, Idaho, Colorado, Wisconsin, Mississippi, Nevada, Montana, Texas, South Dakota, Michiganand Kansas.
The states that earned a D rating: Wyoming, Vermont, Maine, Minnesota, Nebraska, California, Delaware, Alaska, Maryland, Pennsylvania, Illinois, Virginia, Connecticut, Hawaii, New Jersey, Washington, New Mexicoand North Dakota.
The states that earned an F rating: Kentucky, Rhode Island, Oregon, Massachusetts and New York.
STAY works with Arizona’s tax credits to help create scholarships for children who otherwise could not get the educational opportunities they need. By partnering with STAY, you are helping hundreds of students gain access to the school that is best suited to help them THRIVE in your community.
You can be a part of a life-changing opportunity for a student in need!
How? Corporations and Individuals can donate and claim a dollar-for-dollar tax credit against their Arizona income taxes. At no cost to you, you can choose to donate what you would otherwise pay to the state in taxes. STAY then, essentially, converts your tax credit into scholarships. It’s that simple!
Each donation helps a child reach their unique potential whether it is a disadvantaged child who needs a school that best meets their unique needs, a displaced child who is in Arizona’s foster care program or a child with a variety of learning obstacles who needs specific help to function to their fullest capacity.
You can give families hope and lead by example in providing the children of Arizona school choice opportunities.
We all win when the children in our communities THRIVE!
As we approach one week post-election, we want to thank you for praying and voting relative to the composition of the Arizona Legislature concerning school choice and educational freedom. The dust has settled and we now have a pretty clear picture of where things stand.
We are thankful that pro-school choice legislators appear to remain in the majority in both the Arizona House and Arizona Senate. Pro-school choice members in the House increased from 31 to 33 out of 60 total members. In the Senate, pro-school choice members increased from 16 to 17 out of 30 members. Of course, legislators do not always vote how they claimed they would as candidates, so it is important to view these numbers as estimates and not absolute.
While we invested heavily this election season in voter education concerning school choice, a stunning amount of money was also spent on behalf of candidates outspoken in their opposition to school choice. Fortunately, the latter group did not generate the desired flipping of our legislature to an anti-school choice majority.
Given Gov. Hobbs’ expressed opposition toward ESAs and tax credit scholarships, we are doubtful that any pro-school choice legislation will be signed into law in the next two years. On the other hand, we are hopeful that any hostile-to-school-choice legislation will not be enacted. Sometimes even a stalemate can turn into a blessing.
Clearly, proponents of school choice will remain a strong voice in Arizona. We give God all the glory for His provision and protection of both tax credit scholarships and the ESA program. Thank you again to each of you for your support whether you are a donor, a parent, or associated with one of our partner Christian schools.
Election Update courtesy of ACSTO/social@acsto.org.
School Tuition Association of Yuma, Inc. 