by Staff Reporter | Jan 30, 2026 | Education, News
By Staff Reporter |
The Arizona’s Empowerment Scholarship Account (ESA) program grew to over 100,000 enrollments this week.
As of Monday, the Arizona Department of Education (AZED) reported the ESA program had nearly 100,500 enrollees.
Superintendent Tom Horne said in a statement on Tuesday that the milestone represented “a remarkable endorsement” of school choice by Arizona parents. Horne offered an example of a typical scenario in which a family enrolls in the ESA program.
“Consider a family with three children. Two of the children are doing just fine in district schools. The third child’s needs are not being met. Now, the parents can find another school that meets the child’s needs,” said Horne. “I do not understand how anyone can say parents do not have a right to find a school that meets their child’s needs, unless people are so immersed in ideology that they lose sight of what is best for students.”
When Horne took office in 2023, the ESA program had about 11,000 students. That represents an average annual growth of nearly 30,000 students in the program for the past three years.
The latest enrollment data from AZED (2024-2025) reported nearly 1.1 million students across K-12. That’s about nine percent of the total student population.
AZED also reported the recovery of nearly $1.2 million in unallowable expenses through collections, repayments, or legal authority referrals. The program requires parents to document all purchases made, and any impermissible purchases result in a freeze on their accounts.
Parents do have recourse if they believe a mistake was made in the rejection of their expenditures. Horne reminded parents in his Tuesday statement that they are free to appeal rulings; to date, AZED has not lost an appeal.
“Some people have questioned my authority to insist that expenditures only be for valid educational purposes. I am not the final word. Parents have a right to appeal denial to an administrative law judge,” said Horne. “There have been 20 such appeals, and my authority to deny the expenditure was involved in everyone. We have 20 wins and zero losses. Administrative law judges have held unanimously that I do have that authority.”
Horne’s fellow executive branch leaders have expressed dissatisfaction with the continued growth of the ESA program.
In her State of the State Address earlier this month, Gov. Katie Hobbs accused the program of widespread waste, fraud, and abuse — a money pit funding many things other than “true educational purposes.” Hobbs recently proposed an income cap on ESA enrollment: anyone making over $250,000 a year would not qualify.
Horne’s response was a defense of the ESA program as a clear desire of Arizona voters. The ESA program was universalized through legislation passed in 2022 under Hobbs’ Republican predecessor, Gov. Doug Ducey.
“Arizona parents have made it clear they believe in being able to choose the best education for their children, whether districts, charters or Empowerment Scholarship Accounts,” said Horne. “By their loud display today, Democrats proved they want to take that power away from mothers and fathers who know their children’s needs best and return education to a government monopoly that parents do not want.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Jan 21, 2026 | Education, News
By Staff Reporter |
Governor Katie Hobbs claimed the state’s school choice program lacks oversight.
The Arizona Department of Education (ADE) and experts dispute Hobbs’ claim.
The governor targeted the Empowerment Scholarship Account (ESA) Program during her state of the state speech last week. Hobbs advocated for the school choice program to be rolled back from universalization to its previous form that only accepted certain families with disability or military backgrounds.
“While other government entitlements have strict requirements and oversight, the ESA program continues to operate unchecked, squandering taxpayer dollars with no accountability,” said Hobbs. “It seems like every day, we learn about new shopping sprees happening at the expense of taxpayers…diamond jewelry, high-end clothing and furniture…who knows what taxpayers will be footing the bill for tomorrow?”
ADE publishes notice of its internal audits and has attempted to refer cases over to the attorney general’s office for prosecution — though Attorney General Kris Mayes has reportedly been unwilling to pursue prosecution of alleged fraud or abuse.
ADE bases its claims on existing requirements within the ESA Program: documenting all purchases made, and freezing accounts that make unauthorized expenditures. Parents must repay the program for unauthorized purchases.
In August, ADE reported it marked over $600,000 for collections “due to possible fraud or misuse.”
That’s less than one-tenth of one percent of total ESA spending, as noted by the Heritage Foundation in a report last August.
Comparatively, the estimated total fraud within average federal government obligations ranges from three to seven percent, according to a 2024 report by the Government Accountability Office.
Other examples of improper payment rates within government programs in Arizona have been issued recently. (The latest data aligns with the 2024 fiscal year in most cases).
The Department of Labor announced an estimated seven percent improper payment rate from July 2021 to July 2024.
For the 2024 fiscal year, the USDA reported that Arizona had a payment error rate of nearly nine percent.
The federal government even factors in improper payment rates to mitigate losses.
The Center for Medicaid projected an improper payment rate of over six percent for Arizona in 2024.
This indicates that fraud is an inevitable occurrence within any government program.
Unlike the reporting efforts of ADE regarding the ESA Program, the Arizona Auditor General presently finds that nearly 30 school districts are noncompliant based on financially related internal control deficiencies.
This slate of presently noncompliant districts represents over $1 billion in state spending. The entire ESA program spent under $900 million in the 2025 fiscal year and costs about $1 billion for the 2026 fiscal year.
Arizona school districts have accumulated nearly $8 billion in cash reserves, per the Heritage Foundation’s assessment of Arizona Superintendent Tom Horne’s annual report covering the 2023-2024 fiscal year.
Horne responded to Hobbs’ state of the state address with criticism over the governor’s open opposition to a program supported by a majority of voters. Arizona voters approved universalization of school choice back in 2022.
“Arizona parents have made it clear they believe in being able to choose the best education for their children, whether districts, charters or Empowerment Scholarship Accounts,” said Horne. “By their loud display today, Democrats proved they want to take that power away from mothers and fathers who know their children’s needs best and return education to a government monopoly that parents do not want.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by AZ Free Enterprise Club | Dec 10, 2025 | Opinion
By the Arizona Free Enterprise Club |
Despite Halloween being long over, Katie Hobbs has decided to spend the Christmas season playing dress-up as a Trump-loving, tax-cutting, leader of the middle and working class.
On November 20th, Governor Hobbs released her so-called “Tax Cuts for Middle-Class Arizonans” plan. If some of these concepts sound familiar, that’s because every single provision in her plan was word-for-word copied straight out of the One Big Beautiful Bill (OBBB) tax package signed into law by President Trump on July 4th:
- Increase the standard deduction from $15,000 to $15,750 for single filers, $31,500 for joint filers – straight from the One Big Beautiful Bill (OBBB)
- Adding an additional $6,000 deduction for seniors over 65 – straight from the OBBB
- Deducting tipped income from taxable income – straight from the OBBB
- Deducting overtime income – straight from the OBBB
- Deducting car-loan interest on new American-made vehicles – again, right out of the OBBB
So, after spending months opposing the OBBB, trashing Congressional Republicans, and urging its defeat, Hobbs has now decided to pretend that it was her idea all along…
>>> CONTINUE READING >>>
by Matthew Holloway | Oct 30, 2025 | Education, News
By Matthew Holloway |
The Phoenix Union High School District (PXU) is preparing for significant budget reductions and potential staff layoffs as enrollment continues to drop, according to a letter sent to district employees on October 24th by Superintendent Thea Andrade.
In a letter to PXU colleagues posted to X by Phoenix Union Governing Board Member Jeremiah Cota, Andrade cites a decline of approximately 1,800 students in the 2025-2026 school year, following a drop of about 1,200 students the previous year. This represents a total loss of roughly 3,000 students, or about 10% of the district’s overall population, since its high point in 2022.
The superintendent attributes the budget cuts to “a significant decline in student enrollment.” In her letter, she explains that “the reasons for declining enrollment are complex,” and pivots to what she says are contributing factors: “the largest expansion of Empowerment Scholarship Accounts (ESA) in our state’s history,” the continued growth of charter schools, local demographic challenges such as gentrification and low birth rates, and the expiration of several federal Elementary and Secondary School Emergency Relief (ESSER) funds.
The announcement drew immediate response from Governing Board Member Jeremiah Cota, who slammed the district for casting blame on ESA families, charter schools, and Arizona’s Republican-led legislature.
In his post, Cota said that as a board member, he has repeatedly requested improvements in school safety and has been “all but ignored.” He also expressed concern that parents are hesitant to send children to district schools due to safety issues and “woke identity politics” in classrooms.
Cota wrote in full:
“Today, Phoenix Union High School District announced an untold number of possible job cuts due to declining enrollment.
It’s unfortunate, this district has chosen to blame ESA families, charter schools, and the GOP legislature for their budget shortfalls.
As a board member for @PhoenixUnion, from day one I’ve asked to make our schools safer and have all but been ignored on EVERY single request.
Parents, don’t feel safe sending their kids to one of our schools and are tired of the woke identity politics being injected in the classroom.
Yet, here we are, big enrollment drops and possibly even bigger job cuts coming.
TRUTHFULLY, I am concerned the present board will not take any corrective action to stem this decline.”
To address the financial strain, the district has already implemented cuts. In the 2023-2024 school year, it reduced district office budgets by $8.6 million and reorganized the executive team, eliminating several administrative positions to shield campus roles. For the 2024-2025 school year, per AZ Family, an additional $5.8 million was cut through district office reductions, unfilled vacancies, and natural attrition.
As previously reported by AZ Free News, the Phoenix Union High School District (PXU) faced major controversy going into a vote to approve a Memorandum of Understanding (MOU) with Chicanos Por La Causa (CPLC) to provide substance abuse prevention and mental health services at three high schools. The MOU outlines CPLC’s role as a subgrantee of the Arizona Health Care Cost Containment System (AHCCCS) under the federal Substance Abuse Prevention and Treatment Block Grant (SABG).
The MOU would also permit CPLC to offer “Health Masculinity Services for Self-Identified Males.”
Looking ahead, the district projects it will need to cut another $15 million in the 2025-2026 school year and $20 million in the 2026-2027 school year to maintain solvency. Approximately 90% of the district’s annual budget goes toward employee salaries and benefits, Andrade noted.
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.
by AZ Free Enterprise Club | Oct 18, 2025 | Opinion
By the Arizona Free Enterprise Club |
Ever since Arizona passed universal school choice, the Empowerment Scholarship Account (ESA) program has been the target of the Red for Ed teachers’ union, Democrat lawmakers and their corporate media allies. They demand transparency and accountability for alleged abuse of ESA dollars—all while scandal after scandal continues to pop up in our state’s K-12 public schools.
We saw it at the beginning of the year when the Isaac Elementary School District (IESD) was placed under a state receivership after it was determined that it had a budget shortfall of over $12 million! And this wasn’t a surprise. The Auditor General had been sounding the alarm on IESD’s mismanagement of funds for five years!
But where was the corporate media? Where was the digging? Where was the series of articles and threads on X exposing the corruption?
We got none of it. Instead, we have certain Red For Ed reporters, like Craig Harris, attacking Arizona’s popular ESA program with liberal talking points about unspent funds and alleged waste and abuse.
But if the failures of IESD weren’t enough, now we have the sordid financial tale of Tolleson Union High School District, a story so scandalous that it should make every taxpayer’s blood boil…
>>> CONTINUE READING >>>
