The newly passed bipartisan 2026 Arizona budget delivers a suite of student- and family-focused investments designed to support student success, increase access to meals and childcare and give schools critical budget certainty — at least for now.
Among the key education wins:
- $3.4 million allocated to 9th grade on-track programs
- $3.8 million to eliminate co-pays for reduced-price school lunches
- $45 million to reduce the state’s child care subsidy waitlist
- A two-year waiver of the state’s Aggregate Expenditure Limit (AEL), which had threatened to cut school budgets.
While these initiatives were praised by advocacy organizations and public education leaders, they also highlight longer-term structural challenges that Arizona must soon address.
A model for graduation success
One of the most celebrated programs receiving funding is the 9th Grade On-Track initiative (known in Arizona as the 9th Grade Success program). At Camelback High School in Phoenix, where the program was piloted in 2019, on-track rates for freshman nearly doubled with graduation rates climbing from 72% to 92%.
“We’re really excited that more students are going to be able to benefit from this program,” said Jacob Sumner, marketing and communications manager for Stand for Children Arizona. “This investment could help thousands of Arizona students get and stay on the path to graduation.”
Funding will be distributed through a Request for Proposal (RFP) process led by the Arizona Department of Education later this year. Districts are encouraged to email Gina Yacovetta at the Center for High School Success for application support.
Two-year fix for a long-term AEL problem
Perhaps the most critical, but temporary, solution in the budget is the two-year waiver of the AEL. Without this exemption, Arizona school districts would have been unable to spend billions in already-budgeted funds due to a decades-old state constitutional cap on education spending.
“We’re really glad to see a waiver of the AEL included to make sure our schools have the certainty they need to spend their entire budgets educating Arizona students for the next two school years,” Sumner said.
But after that the waiver disappears. Unless lawmakers revisit the outdated formula, Arizona schools will once again face spending constraints starting in the 2027–2028 school year.
Equity, access and working families
Other budget provisions address systemic barriers outside the classroom. The $3.8 million dedicated to school meals will eliminate co-pays for students in the reduced-price lunch bracket — an effort that last year increased breakfast and lunch participation by one million meals statewide.
Additionally, $45 million was earmarked to begin eliminating Arizona’s child care subsidy waitlist, which currently has nearly 6,000 children waiting for assistance. Advocates say this move is essential to ensuring families can afford to stay in the workforce.
“These investments aren’t just educational — they’re economic,” said Rebecca Gau, executive director of Stand for Children Arizona. “Eliminating lunch co-pays, expanding child care subsidies and keeping kids on track to graduate all support strong families and a strong workforce.”
What’s next?
Advocates hope this budget marks the beginning of reinvestment in Arizona’s public education system.
“Next session, we hope to see 9th grade on-track funding continued so more students can benefit,” Sumner said. “We also want to see the base funding level for all schools increased and greater investment in childcare subsidies for working families.”
The good and bad of the 2026 budget
Pros
- Proven impact: Camelback High School’s graduation success proves 9th-grade programs work.
- Bipartisan cooperation: Legislators found common ground to pass child-focused initiatives.
- Immediate support for families: Childcare subsidies and lunch co-pay relief offer direct, tangible help.
- Budget stability (for now): Schools won’t face last-minute cuts due to AEL limits — for two years.
Cons
- Temporary fixes: The AEL waiver is a bandage, not a cure. Arizona’s outdated education funding caps remain.
- Narrow eligibility: Programs like the on-track funding require schools to apply through an RFP process — leaving too much room for uneven access.
- Unclear future: Without structural changes, future budgets may not sustain these gains.
A forward-looking challenge
While the 2026 budget offers promising support for students and families, Arizona’s long-term success hinges on updating outdated laws and ensuring all districts (both rural and urban) can access and sustain new programs.
The political will for educational reform exists, but it remains to be seen whether it will hold through 2027 and beyond.
“Although we would have liked to see more investments in Arizona’s families over some other elements of the budget, we are grateful for a focus on keeping kids on track,” said Gau. “Continuing to invest in these programs will help set thousands of Arizona children on the path to a brighter future.”
Editor’s note: A grant from the Arizona Local News Foundation made this story possible. The foundation awarded 15 newsrooms to pay for solutions-focused education reporters for two years. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
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