ESA enrollment breaks 100,000 as Arizona debates choice, oversight and equity

By Stacy Mantle
Mail

State Superintendent of Public Instruction Tom Horne announced  Arizona’s Empowerment Scholarship Account program has surpassed 100,000 students during a news conference Tuesday, a milestone celebrated by supporters but raising new questions about oversight, equity and fiscal impact.

“Parents want options, and they are choosing the ESA program because it meets the needs of their children,” Horne said during the Jan. 27 press conference. “The growth we’ve seen over the past three years reflects that demand.”

Horne also reiterated that supply has not kept up with demand.

"We have the same number of personnel to administer the program now that we had when the program was 11,000 students… and that puts tremendous strain on the administration ability," he said.

Supporters argue ESAs give families flexibility to tailor education to individual student needs, particularly for students who struggle in traditional settings or require special services.

"I do believe that children deserve a safe, supportive school system where they can thrive," said Keisha Arnold, an enrollee in the ESA program. "For 11 years as a public school mom with students here, I faced repeated failures within the public school system for my adopted child with delayed access to IEP services."

"She was pushed out of three schools by the second grade," Arnold continued. "We endured years of unaddressed bullying at Tollesson High School. These weren't isolated incidents, they were results of systems unwilling to use the available resources to protect and support out students. After years of inaction, I took matters into my own hands and learned to utilize the Arizona Empowerment Scholarship account program to ensure the education of my child and children that they're getting what they deserve. This is all about accountability, student safety and putting children first because our kids can't afford to be ignored."

Administrative changes and efficiency claims

Arizona Department of Education officials say the program’s rapid expansion is accompanied by operational changes designed to improve efficiency and customer service.

According to the department, enrollment processes have been streamlined, call volumes reduced and reimbursement timelines shortened compared with the program's earlier years. Officials also report the rollout of new technology tools intended to detect improper spending and verify eligibility.

The department says it has recovered approximately $1.2 million in unallowable expenditures through repayments, collections or referrals to legal authorities.

“If we had the staffing to actually operate this program and meet all of the service levels that families need, we would probably need to triple the size of our staff,” said John Ward, ESA director. “At this point, we operate on about four-tenths of one percent of the dollars that we distribute in this program. I don’t believe there’s likely any other public program in this state that operates on that slim of a margin.”

Not all officials agree. 

“While other government entitlements have strict requirements and oversight, the ESA program continues to operate unchecked, squandering taxpayer dollars with no accountability,” Gov. Katie Hobbs said during her 2026 State of the State Address. “It seems like every day, we learn about new shopping sprees happening at the expense of taxpayers.”

Oversight, accountability and policy questions

Horne highlighted administrative law rulings that have upheld the department’s authority to deny expenditures deemed inconsistent with educational purposes, noting the state has prevailed in all ESA-related appeals to date and defended his risk-based accounting system. 

“Under risk-based auditing, over $2,000 we audit before we pay it," Horne said. "Under $2,000, we send it out and then we audit… because if we didn’t do that, people would have to wait three months or more.”

However, the program’s scale has renewed questions among lawmakers, education advocates and district leaders about transparency, fiscal sustainability and academic outcomes for participating students.

Critics argue that rapid ESA growth has outpaced the state’s ability to evaluate its impact. They question whether the program diverts funding from district schools, whether participating students demonstrate measurable academic gains, and whether oversight mechanisms can keep pace with expanding enrollment.

Equity, costs and public school impact

Opponents of the ESA program argue its rapid expansion may deepen inequities in Arizona’s education system and strain public school resources. 

Education Forward Arizona has argued the ESA program operates with “little to no academic performance reporting, audits or transparency on student outcomes,” raising concerns about accountability as participation rises. They and other opponents warned that universal vouchers “shift scarce public dollars away from the schools that educate most Arizona students.”

The Arizona Education Association has warned the program is “crowding out funding for public schools” even as district schools continue to serve the majority of students.

Some education advocates contend a significant share of ESA participants previously attended private schools or were homeschooled. Gov. Katie Hobbs has argued many families using ESA funds “were already paying for private school or homeschooling before the program was expanded,” raising questions about whether the program primarily expands opportunity or subsidizes existing private education choices.

Critics also argue the state lacks comprehensive data on outcomes. Education Forward Arizona officials have said there is “little to no academic performance reporting, audits, or transparency on student outcomes,” making it difficult to assess academic impact.

As Arizona’s ESA program enters a new phase defined by size and complexity, policymakers face pressure to balance parental choice with accountability, equity and data-driven evaluation of student outcomes.

ESA Program Overview

• Current ESA enrollment: 100,000+ students
• Enrollment three years ago: ~11,000 students
• Growth rate: Nearly 10-fold increase

Eligibility

• Universal eligibility enacted: 2022
• Eligible populations include: public, private, homeschool, and special education students

Funding & Costs

• Approximate average ESA award: $7,000–$8,000 per student (varies by grade level and need)
• Estimated annual program cost: $700 million–$1 billion+ (depending on participation and award levels)

Oversight & Accountability

• Unallowable spending recovered: ~ $1.2 million
• Appeals of denied expenditures: 20 cases
• ADE outcomes in appeals: 20 wins, 0 losses

Policy Debates

• Impact on district school funding
• Equity and access across income groups
• Academic outcomes and transparency
• Long-term fiscal sustainability

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 submit comments at yourvalley.net/letters or email them to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.

Stacy Mantle
Education Solutions Reporter

smantle@iniusa.org

Meet Stacy
Stacy Mantle is joining the team at Independent Newsmedia, Inc. as an Education Solutions journalist, thanks to a grant from the Arizona Community Collaborative. She has a long history in education that ranges from teaching junior high and middle school to developing curriculum and standards-based assessments.

Community: A longtime advocate for animal welfare, Stacy is deeply involved in rescue efforts and volunteers with several nonprofit organizations.

Random Fact: Once upon a time, she shared her home with a pet coyote and two wolf hybrids. The experiences were wild enough to become the subject of her first book!

Education: She holds a BA in English with a minor in Political Science, a Post-baccalaureate in Secondary Education, and an MBA with a emphasis on Marketing.

Hobbies: In her spare time, Stacy writes fast-paced urban fantasy novels, crafts small-batch artisan soap, and is always up for hiking or off-roading through the Arizona wilderness with her husband of 23 years.