By Matthew Holloway |
Arizona families using the Empowerment Scholarship Account (ESA) program will no longer be required to submit curriculum documentation when purchasing general educational supplemental materials, such as basic school supplies, under a settlement agreement announced by the Goldwater Institute.
The agreement resolves a lawsuit brought by ESA parent Velia Aguirre against the State of Arizona, the Arizona Department of Education (ADE), and Superintendent Tom Horne over the documentation requirements.
The settlement, which took effect July 1, states that ESA families “shall not be required to submit a specific curriculum document” when purchasing items identified as “general educational supplemental materials” in the 2025–2026 ESA Handbook.
The dispute began after Attorney General Kris Mayes’ office sent a 2024 letter to the ADE opening a public monies investigation into ESA spending approvals. The Attorney General’s Office said at the time that ADE guidance appeared to allow expenses beyond the statutory framework for the ESA program, including the approval of supplementary materials without documentation demonstrating a curricular connection.
In the letter, Mayes’ office asked the ADE to “promptly cease approving supplementary material expenses without the requisite documentation of a curriculum nexus,” and requested information on ESA spending for supplementary materials, curriculum materials, and textbooks from the 2019–2020 school year through the 2023–2024 school year.
The Goldwater Institute, which represented Aguirre, said in a September 2024 press release that the directive forced parents to justify purchases of basic school supplies and educational books. Goldwater said Aguirre had purchases such as “Where the Red Fern Grows,” a periodic table poster, and pencils rejected for failing to satisfy the curriculum documentation requirement.
Arizona law allows ESA funds to be used for several categories of educational expenses, including tuition at qualified schools, textbooks, tutoring, curricula, and supplementary materials.
The law defines “curriculum” as “a course of study for content areas or grade levels, including any supplemental materials required or recommended by the curriculum, approved by the department.”
After Mayes’ 2024 letter, the ADE posted guidance stating that supplementary materials, including common school supplies such as pencils, paper, glue, and crayons, required curriculum support. The ADE’s ESA support page stated that items previously allowed without curriculum documentation “now do require a curriculum.”
Goldwater filed suit in September 2024 on behalf of Aguirre and Rosemary McAtee, arguing that the documentation requirement imposed new burdens on families buying ordinary educational materials. Goldwater said at the time that parents were being required to show that each purchase was explicitly called for in a curriculum, including items such as pencils, erasers, flashcards, and children’s books.
Under the settlement, ESA families purchasing general educational supplemental materials must attest that the items are intended to support a curriculum or course of study for the qualified student and are not being purchased for another purpose. The agreement also requires ESA holders to indicate the curriculum or course of study the materials support by selecting categories such as reading or grammar, social studies, science, mathematics, physical education, art, vocational instruction, or other.
The agreement states that the ADE will not require a specific curriculum document as a prerequisite for approval or processing of general educational supplemental material purchases. It also provides that the ADE may require an ESA holder to enter the name of the curriculum or course of study in a text box when selecting “Other,” once technologically feasible or no later than the second quarter of fiscal year 2027.
The settlement does not eliminate the ADE’s oversight authority. Rather, it states that nothing limits the ADE’s ability to review or audit individual expenditures or ESA accounts, disallow expenses, seek repayment, or report an ESA holder to the Attorney General’s Office for investigation of fraud, misuse of funds, or unlawful expenditures.
The agreement also preserves the Attorney General’s authority to investigate or enforce the law in cases involving fraud, misuse of funds, or unlawful expenditures, and to request information in specific cases where there is a reasonable basis to believe a violation occurred.
The State disputed in the settlement agreement that the ADE enforced the alleged documentation policy and maintained that the ADE has the authority and obligation to confirm that ESA expenditures are allowable under statute and rules. The parties agreed to resolve the case to avoid the time, expense, and uncertainty of further litigation.
Goldwater characterized the settlement as a victory for ESA families.
“ESA holders shall not be required to submit a specific curriculum document when purchasing items identified as ‘general educational supplemental materials’ in the 2025–2026 ESA Handbook,” Goldwater wrote, quoting the settlement agreement. The organization said the change means families will no longer have to provide individualized curriculum documentation for ordinary educational purchases such as pencils and children’s books.
In a press release on July 2, Matt Beienburg, Director of Education Policy at the Goldwater Institute, summarized the legal victory:
“This means no more manufactured paperwork from parents simply to appease the bureaucratic whims of politicians. No more wasted hours explaining why hundreds of individual items, like pencils or children’s literature, are necessary for a child’s education.
“Instead, parents will simply acknowledge via a single check box for a purchase order or reimbursement request that the purchases are intended to support the course of study for an ESA student. What was once the needless compounding of minutes into hours to comply with the attorney general’s demands will now be two clicks of a mouse.”
The parties agreed to file a stipulation dismissing the case with prejudice within 10 days of executing the settlement.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
