by Jason Bedrick | Mar 13, 2026 | Opinion
By Matthew Ladner & Jason Bedrick |
It is said that a lie travels halfway around the world before the truth can get its pants on. But when the truth finally catches up, it tends to arrive with receipts.
In recent weeks, anti-school-choice activists have accused Arizona’s popular Empowerment Scholarship Account (ESA) program of having a ludicrously high rate of misspending. That narrative, repeated endlessly despite being repeatedly debunked, has now collided with an inconvenient reality: the Arizona Department of Education’s own data tell a starkly different story, one that exposes the “unaccountable ESA” myth for what it always was: a misleading talking point masquerading as journalism.
On Thursday, the Arizona Department of Education published the results of a random audit of the ESA program, finding very low rates of misspending relative to other publicly funded programs and even less fraud. Less than 2% of ESA funds were spent on unallowed items, and 0.3% of the funds were spent on items considered “egregious” or fraudulent. The department is in the process of recouping those funds.
The department’s audit has punctured the gross distortions of Phoenix-based journalist Craig Harris of Channel 12, who had misrepresented the ESA program as being rife with fraud. The department called Harris’s claims “ridiculous,” “reckless,” and “a total misinterpretation of data provided by [the department] to Channel 12.”
Harris had claimed that 20% of ESA purchases represented misuse of funds based upon an examination of only a small portion of total ESA purchases—384,478 of the 1.8 million total ESA transactions since December 2024, approximately 20% of the total.
But it was not a random sample. The Arizona Department of Education had selected these purchases under a risk-based audit for additional scrutiny, so it was not a random sample that one could use to extrapolate rates of misuse in the ESA program. Instead, the risk-based pool was far more likely to contain misuse than the average purchase.
In other words, among the 20% of ESA purchases flagged for additional scrutiny, the department found 20% to be misspending. Harris, however, extrapolated the risk-based results on to the entire universe of ESA purchases. This represented a blatant distortion because the remaining purchases outside of the risk-based sample were far less likely to involve misspending.
Think of it this way: imagine that a reporter read a study showing that 20% of Americans were obese and that 20% of obese Americans had diabetes, then he ran a story claiming that 20% of all Americans had diabetes. Such a claim would be a complete distortion of the data, a conclusion that is entirely unsupported by the facts.
Harris was warned both publicly and privately that his “analysis” was deeply misleading. Nevertheless, he continued to repeat his “20% misuse” claim on television and social media.
The Arizona Department of Education decided to set the record straight by auditing a random sample of thousands of Arizona ESA purchases. The audit’s conclusion: “About 2% of purchases are unallowable expenses and only 0.3% represent fraud or egregious purchases.”
In short, Harris’s “analysis” on misspending was off by a factor of 10, and his accusations of fraud were off by nearly a factor of 100.
And although Harris made it seem like one in five ESA parents were buying diamond rings, the reality is that egregious purchases represented a vanishingly small percentage of ESA spending. Most of the unallowed items appear to have been innocent mistakes.
The Arizona Department of Education explained the difference between unallowable purchases and egregious purchases/fraud in a press release:
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.
Cracking down on misspending is important, but so is keeping things in perspective. The rate of improper payments for the Arizona ESA program, at 1.9%, stands far below a variety of programs which ESA opponents support, such as Medicaid (7.4%), food stamps (9.3%), and unemployment insurance (14.4%). Moreover, the Arizona Department of Education actively recovers misspending, and refers serious cases for criminal prosecution to punish criminal activity and to deter fraud.
Indeed, the only reason we know about the miniscule level of unallowed purchases in the ESA program is because it is so transparent—far more transparent than district schools, which do not report transaction-level data to state officials, let alone the public. Given the rash of recent scandals in Arizona’s district school system, one can only imagine what we would find if given access to information about every purchase that district schools have made, as we have for the ESA program.
In the interests of transparency and accountability, state lawmakers should require the district schools provide the same level of information about purchases as ESA families.
Harris has not yet retracted his false reporting. Instead, he has doubled down on his errors, erroneously claiming that the department’s audit was “largely skewed” and based on “a miniscule sample.” This claim is particularly ironic given that Harris erroneously treated a risk-based sample—which is inherently skewed—as though it was representative of the entire population. A random sample, by contrast, is representative of the whole.
Facts are stubborn things. So too, apparently, are anti-school-choice activists who can’t let go of the false narrative they pushed in the face of overwhelming evidence to the contrary.
Matthew Ladner is a Senior Advisor for education policy implementation and Jason Bedrick is a Senior Research Fellow at the Heritage Foundation’s Center for Education Policy.
by Jason Bedrick | Feb 19, 2026 | Opinion
By Matthew Ladner & Jason Bedrick |
Emerson famously noted that “a foolish consistency is the hobgoblin of little minds.” Opponents of Arizona’s school choice program seem determined to field legions of such monsters.
Exhibit A: the reporting of Craig Harris. Harris has over the years repeatedly filed anti-school choice stories which were riddled with errors. His latest salvo against Arizona’s popular Empowerment Scholarship Accounts (ESA) program is no exception.
In 2018 and 2019, Harris published articles in the Arizona Republic claiming charter schools underperformed district schools and faced mass closures, but both stories relied on flawed research—including counting schools that only went through 9th grade or had already closed as having 0% graduation rates and relying on “research” by anti-charter school activists that misunderstood basic accounting concepts.
More than six years later, the predicted mass closures have never materialized, and National Assessment of Educational Progress data actually showed Arizona charter students outscoring district peers by roughly two grade levels.
But Harris, unlike the students, doesn’t seem to have learned his lesson. These days he has fixated his efforts against Arizona’s ESA program—and the results are just as edifying.
With an ESA, parents can purchase a wide variety of educational goods and services using 90% of the state money that their child would have received at their local district school. The parent-managed accounts have state oversight to keep transactions focused on allowable education expenses. The program is wildly popular with Arizona families, with over 100,000 students participating.
However, the ESA program is not so popular with special interest groups tied to school districts and their allies in the press.
Now at Channel 12, Harris has produced misleading stories about Arizona’s ESA program, including claims that parents use accounts for “babysitting“—based on a since-corrected error by the Treasurer’s Office—and that families are “subsidizing vacations,” when in reality they’re purchasing tickets to museums, zoos, and aquariums, which are allowable educational expenses also used by public schools. The program uses risk-based auditing to detect fraud, the same widely accepted method used by the IRS and recommended by Arizona’s Auditor General.
In his latest salvo against ESAs, Harris has produced a so-called “analysis” claiming that 20% of ESA purchases constituted a misuse of funds—a huge jump from the less than 1% rate of misuse previously detected by the Arizona Auditor General.
Misuse of funds in publicly funded programs is a serious problem which the Arizona Department of Education has taken great pains to minimize in the ESA program. Harris, however, is once again playing games and tricks with the data.
First, Harris’s claim of that 20% misuse is based upon an examination only of a small portion of total ESA purchases—384,478 of the 1.8 million total ESA transactions since December 2024, or about 20% of the total. This smaller group of purchases had been selected by the Arizona Department of Education for additional scrutiny via risk-based auditing, so it’s not a random sample that one could use to extrapolate about rates of misuse in the ESA program generally.
In other words, among the 20% of ESA purchases flagged for additional scrutiny, 20% were found to be misspending. But 20% of 20% amounts to only 4% of total purchases. Harris’s claim that 20% of ESA purchases were misspending is a gross exaggeration.
In fact, even the supposed 4% misuse rate itself is an exaggeration, as it is 4% of total transactions, not 4% of total spending. The most recent data from the Arizona Department of Education show more than half of ESA funds are spent on private school tuition, so the rate of misspending is likely less than 2% of total spending—a rate of improper payments that is well below a variety of programs found in programs which ESA opponents support, such as Medicaid (7.4%), food stamps (9.3%), and unemployment insurance (14.4%).
Tears for Fears’s hit song “Everybody Wants to Rule the World” includes the line, “One headline—why believe it?” If the headline is followed by a Craig Harris byline, be very careful before you believe it as you are not getting the whole story—maybe even a false story.
Matthew Ladner is a Senior Advisor for education policy implementation and Jason Bedrick is a Research Fellow at the Heritage Foundation’s Center for Education Policy.
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 Warren Petersen | Jan 13, 2026 | Opinion
By Sen. Warren Petersen |
For years, Arizona was governed by Republican majorities in the state legislature—with Republicans also holding the Governor’s and Attorney General’s offices. During that time, we transformed Arizona into one of the most enviable and prosperous states in the nation: a booming economy, a hot jobs market, a flat income tax, strong support for law and order, and universal school choice.
That all changed in 2023 when Katie Hobbs and Kris Mayes—both Democrats—took over the Governor’s and Attorney General’s offices. Since then, they’ve worked to impose a radical agenda and remake Arizona in the image of California. If not for the slim Republican majorities in both chambers of the Arizona Legislature, Hobbs and Mayes would have quickly succeeded.
As the leader of the Senate Republicans, it has been my honor to work with my colleagues to defend Arizona values and push forward conservative priorities. Despite divided government, we’ve used every tool in our toolbox to not only stop the radical left’s agendas, but to also lead. In doing so, we have set the standard for other states dealing with divided government. Here are just a few of the top victories we’ve secured on behalf of Arizonans.
Fully Funded and Protected Universal School Choice
Over the past two decades, Arizona has led the nation in enacting school choice, giving all families the freedom to choose the education that best fits their children. We dramatically increased K-12 funding (now approximately $13,000 per student) during this time, investing heavily in and safeguarding all forms of education across the state—district, charter, home school, online, and empowerment scholarship accounts. The left only wants to give you one choice to educate your child. Both Hobbs and Mayes have prioritized the dismantling of the apparatuses that let parents decide where their children go to school.
I believe educational freedom is a foundation of the American Dream. Families shouldn’t be trapped in failing schools based on their zip code; rather, they should have the right to choose the educational institutions that work best for their sons and daughters. Unfortunately, Hobbs and Mayes have repeatedly rejected this belief to the detriment of our state’s future.
Under my leadership at the legislature, we stopped them. School choice remains fully funded and protected—even in this divided government. Fighting for parental empowerment and school choice has been one of the most consequential and rewarding endeavors of my time as Senate President. I believe that we are rescuing an entire generation of Arizonans from the grip of a broken education system.
Tax Cuts for Arizonans
One of our top priorities has been to return money to Arizona taxpayers. Despite repeated attempts by Hobbs to block us, we’ve delivered real tax relief. We eliminated the rental tax in Arizona, saving families and renters hundreds of millions of dollars each year. Charging a rental tax is bad policy, and now these revenues will stay in the pockets of the people who need them the most.
Republican lawmakers forced the governor to sign additional bills that cut taxes for hard-working Arizonans. We raised the state’s business personal property tax exemption, reducing burdens on small business owners. We banned municipal excise taxes on residential leases, relieving tenants of additional tax liability and helping lower housing costs. And we passed the Arizona Families Tax Rebate to return funds directly to eligible families.
At a time when families are feeling squeezed, we’re doing what government should—getting out of the way and letting our hardworking taxpayers keep more of what they earn. These tax cuts are the result of smart, conservative leadership that puts everyday Arizonans first. This is the same pro-growth, American First approach that President Trump is delivering for our nation, and we’re proud to carry that torch here in the Grand Canyon State.
Fully Vetted Agency Directors
One of the most consequential powers of any governor is the ability to nominate and install agency directors, who do the bidding of their chief executive. These individuals wield enormous influence over how state government functions, and under Hobbs, many of her nominees have been extreme, unqualified, or relatively unknown to the public. That’s why one of my first actions as Senate President was to create accountability through a formal vetting process for the governor’s nominees. The purpose was to ensure the individuals chosen to lead integral government agencies were competent and aligned with Arizona values. Despite resistance from the governor, we succeeded. We held her nominees to high standards and protected Arizona from the consequences of unchecked political appointments.
End of DOJ Investigation into Phoenix Police Department
Over the past several years, the Phoenix Police Department was the target of a blatantly politicized witch hunt by President Biden’s Department of Justice. They twisted facts and law in a backhanded attempt to hijack another police department and bring it under the control of the federal government. After I contacted the Trump administration and met with several of the President’s top officials, the White House and DOJ ended this rampage against the men and women in blue from the Phoenix Police Department. The announcement from the Trump administration was complete vindication, and it removed the handcuffs off our law enforcement so that they may do their jobs to keep the City of Phoenix and our citizens safe from criminals seeking to cause harm.
Divided government is messy. The path forward isn’t always easy or clear. But through consensus building, unity, discipline, determination, and bold conservative leadership, we’ve proven in Arizona that progress is possible—even in the toughest of times. The rewards of this hard work are immense for those entrusted with leaving our state and nation in a better place for future generations of Americans. I hope that our efforts in Arizona have not only preserved our rich heritage of conservative values, but inspired other warriors around the country to follow in our footsteps.
Warren Petersen is the President of the Arizona State Senate and represents Legislative District 14.
