Wealthy leftists outside the state are paying big money to deepen the blue in Arizona.
An investigative report by the Arizona Free Enterprise Club (AFEC) and AZ Liberty Network (AZLN) documented the way national organizations are funding to strengthen Democratic politics in Arizona: Donor Advised Funds, dark-money intermediaries, and teachers’ unions.
AFEC and AZLN found the flow of funds totaled over $1 billion, at least.
Per the report, these tax-advantaged funds don’t arrive in Arizona directly. The millions change hands between different organizations before coming into the state, sometimes multiple times, effectively turning the money dark.
“Money enters the system tax-free, travels invisibly, and reemerges as ‘local’ influence with national fingerprints erased,” reads the report. “The result is a tax-advantaged, publicly underwritten, and union-fueled political machine that dwarfs traditional party structures, and it has reshaped Arizona’s civic landscape. It is not organic, spontaneous, or homegrown—it is manufactured, calculated, and imported, creating an institutionalized system of progressive infrastructure.”
The money flow begins with what the report calls “Upstream Sources.” Two cost-saving vehicles make the funding flows a reality: tax-advantaged Donor Advised Funds (DAFs) and direct taxpayer subsidization available through federal grantmaking. The former includes funds like Fidelity Charitable, Silicon Valley Community Foundation, and Rockefeller Advisors. The latter vehicle largely operates through USAID. This agency gave the Tides Center $25 million to combat “misinformation.”
In 2024, the report found the Upstream Sources spent over $33 million in Arizona in non-federal races — a key year for determining which party would control the state legislature.
Altogether, Upstream Sources sent over $1 billion to organizations that acted as intermediaries — “Intermediary Organizations” — such as Sunflower Services (until recently, Arabella Advisors), Tides Nexus, and networks backed by billionaires George Soros or Hansjörg Wyss. Soros and Wyss also act as Upstream Sources.
From there, these funds finally make their way into Arizona. Top recipients that received millions include One Arizona, LUCHA, ACE, Chispa, Arizona Mirror, and the Copper Courier: the “Arizona Groups,” per the report.
The report alleged that the last two nonprofits listed, Arizona Mirror and Copper Courier, are news sites run by “Democratic operatives.”
Arizona Groups spent over $7 million to support down-ticket legislative Democrats, and nearly $5 million against the Republicans.
Further on the report mapped out how teachers’ unions fund local political action committees to influence Arizona races.
“These taxpayer-funded transfers, ostensibly for professional development or services, ultimately help free funds to support the same partisan infrastructure advancing the Left’s political objectives across Arizona,” stated the report.
Additionally, the report noted that the Arizona Education Association shares its headquarters building with other progressive organizations, such as One Arizona.
AFEC’s press release on the report interpreted the flow of funds as national influencing of local issues.
“This isn’t activism, it’s a professional, tax-advantaged political operation designed to look local but controlled from afar,” stated AFEC. “Arizona isn’t changing — it’s being engineered. Conservatives need a clear roadmap, strong counter-infrastructure, and strategic engagement to protect the state’s future and preserve local control.”
AFEC President Scot Mussi told “Winn Tucson” that the report was inspired by the USAID scandal around the time of President Donald Trump’s inauguration. That prompted curiosity about the origins of funding for Arizona’s major progressive political organizations.
Scot Mussi, President of the Arizona Free Enterprise Club, joins Kathleen Winn on WINN TUCSON KVOI 1030 to discuss the Club’s newly released “Arizona’s Liberal NGO Syndicate Report.” Mussi breaks down how a coordinated network of national nonprofits and political intermediaries… pic.twitter.com/9QjDCpQUD5
Since the results of the 2024 election came in, much of the focus has been on President-elect Donald Trump’s historic win—and rightfully so. Trump won every single swing state in a massive victory over Vice President Kamala Harris, and he beat her in the popular vote too.
But Kamala Harris wasn’t the only significant loser to come out of November’s election.
Here in Arizona, teachers’ unions and other anti-school choice groups, like Save Our Schools Arizona (SOSAZ), made the 2024 election a referendum on school choice. And they lost big!
Much of their work began earlier this year, when Arizona Governor Katie Hobbs came into legislative session (just like she did in 2023) with her top priority being to regulate the wildly popular Empowerment Scholarship Account (ESA) program out of existence. But it didn’t work. Despite the noise from Hobbs, legislative Democrats, the legacy media, the teachers’ unions, and other anti-school choice groups, only minor changes were made to the ESA program through the budget, with most of it remaining untouched.
This failure fell on the heels of other similar failures…
For the past thirty years or so the left has invented a narrative that there are two Americas. A group of very super-rich people (the one percenters) who have prospered over the past several decades, and everyone else who has gotten poorer. It’s a fairy tale narrative because almost all Americans have seen financial progress. The median household income adjusted for inflation rose by more than 40% since 1984.
Prosperity isn’t an “us versus them” zero-sum game. A rising tide really does lift all boats.
But there really are Two Americas today. First, there are the cultural and over-educated snobs – the kind of people who religiously read the New York Times, drive EVs, wear Harvard or Yale sweaters, and have never even heard of NASCAR or eaten at Popeyes or ridden a John Deere tractor.
And then there is normal main street America. The snobs thumb their collective noses at the unrefined working-class Americans. The elites believe they are intellectually, culturally, and morally superior to the working class and rural America. You won’t see too many elites at a Trump rally with 30,000 people.
A group I helped found, the Committee to Unleash Prosperity, just published a study entitled “Them Vs. U.S.” examining how America’s cultural elites (defined as at least one postgraduate degree, $150,000+ annual income, high-density urban residence, and attended an Ivy League school) are hopelessly out of touch with ordinary Americans. Pollster Scott Rasmussen did the research.
Here are some of the key jaw-dropping revelations from the survey:
Financial Well-being: Nearly three-quarters of the elites surveyed, believe they are better off now financially than they were when Joe Biden entered the White House. Less than 20% of ordinary Americans feel the same way.
Individual Freedom: Elites are three times more likely than all Americans to say there is too much individual freedom in the country. Astonishingly, almost half of the elites and almost six-of-ten ivy leaguers say there is too much freedom.
Climate Change: An astonishing 72% of the Elites – including 81% of the Elites who graduated from the top universities – favor banning gas cars. And majorities of elites would ban gas stoves, non-essential air travel, SUVs, and private air conditioning. That means no air travel with the kids to Disney World.
Education: Most elites think that teachers unions and school administrators should control the agenda of schools. Most mainstream Americans think that parents should make these decisions.
Oh, and about three-quarters of these cultural elites are Biden supporters. Surprised?
The Grand Canyon-sized divide between the elites in America and ordinary Americans is so profound that it is as if they live in two different countries. Silicon Valley, Manhattan, and Washington, D.C. have become bubbles that have lost contact with everyday Americans. This explains why the political class – which is a big part of the elite group – is confused by poll numbers showing that voters are feeling financially stressed out. The elites are doing fine, so they believe that everyone is prospering. I suspect that most don’t want radical change in the public schools because their kids attend blue-chip private schools. They are fine with abolishing SUVs because in big cities Americans generally don’t drive those cars – if they drive cars at all.
Crime, illegal immigration, inflation, fentanyl, and factory closings aren’t keeping the elite up at night because in their cocoons they don’t encounter these problems on a daily basis the way so many Americans do today. Not too many main street Americans are losing sleep about climate change or LGBTQ issues.
The elites in America tend to work in the “talking professions” – university professors, journalists, lawyers, actors, and lobbyists. They keep talking and normal Americans are more than ever not listening to them.
Stephen Moore is a contributor to The Daily Caller News Foundation, co-founder of the Committee to Unleash Prosperity, and chief economist with FreedomWorks.
If any business owner saw 450% growth in one of the company’s products or programs during a 15-month period, they would be ecstatic. And it’s safe to say that whatever that program was doing must be working. But for Governor Katie Hobbs and her allies in the teachers’ unions, who have never been known for their math skills, it’s a completely different story when it comes to the ESA program.
Back in July 2022, when then-Governor Doug Ducey signed universal school choice expansion into Arizona law, 13,400 students were enrolled in the ESA program. That number has now grown—as of January 16, 2024—to an astounding 73,415 students—a near 450% growth. Clearly, the program is in high demand, and it is definitely working. But after signing the Republican budget bill last year, without any cap or restrictions on ESAs, Hobbs is now trying to push a barrage of regulations that would effectively dismantle the popular program…
I was born and raised in Seattle, Washington. I went to high school, and college, and started my business there. We were the fourth generation of our family to live in West Seattle where we founded and operated local businesses. Over the last 80 years, my family has founded four companies, employed hundreds of people, and created opportunities for many others to grow and succeed.
On August 5, 2020, we made the gut-wrenching decision to leave. That was the day that Washington’s Governor, Jay Inslee, proclaimed that it was “unsafe” for children to attend school in the state, extending our school closures indefinitely. Our school reopening guidelines were the among the strictest in the nation, and even most private schools (including our son’s) remained closed until further notice. Our boys were three and six at the time, and we expected another lockdown through the winter would do far more damage to our collective mental and physical health than COVID ever would.
Shortly after Governor Inslee’s press conference ended, we started packing. A few days later, we put 14 suitcases and duffle bags on an airplane and headed out to spend a year in the Sonoran Desert. As our son started in Scottsdale Public Schools, the battle between the districts, unions, and Governor Ducey were in full swing. After yet another week of “iPad school,” we began frantically looking for a private school that would guarantee an in-person education to our first grader.
We found an opening at a nearby for-profit private school and enrolled our boys on the spot. Within a few weeks, we heard from our older son’s teachers that he wasn’t learning normally. Initially, we dismissed their concerns, assuming they were caused by the impacts of Seattle’s hard lockdown and our extended school closures.
They gently pressed, and we agreed to seek a reading evaluation through a local clinic. The results were all over the place, so we were referred to a local neuropsychologist. Our son underwent two days of intensive testing which finally led us to the answer: he is gifted, has mixed dyslexia, and an ADHD (inattentive type) diagnosis would likely follow after he turned seven.
The number one recommendation was that our son would need to be in a private school long-term. The neuropsychologist described the challenges involved in getting an Individualized Education Program (IEP) and 504 plan, especially with a twice-exceptional child, where the giftedness often hides the disability. Our son would need small class sizes and individualized attention, as he would likely struggle in a public school classroom.
Our for-profit private school bent over backwards to accommodate his needs. They allowed him to continue to attend school through his eight-week, half-day intensive dyslexia treatment program so he could maintain the relationships in his class and participate in Spanish, PE, and STEM. His teacher taught his classmates about learning differences, so they’d approach our son with acceptance and curiosity instead of judgment. They approved his providers’ recommended accommodations without hesitation. They welcomed, loved, and supported our child, regardless of his learning differences.
One year later, our son is reading a grade level above his age thanks in part to the three weekly sessions with a reading specialist provided by his school. Three months into third grade, he no longer needs specialized support and is able to operate independently in an accelerated classroom environment.
Our journey was a privileged one. We had school choice, albeit across state lines. We had access to top private clinics and specialists. We used a combination of health insurance, HSA funds, and savings to cover the over $50,000 cost to remediate our son’s dyslexia and provide him with a private school education that met his unique needs. Very few families can afford this on their own.
Washington State has the exact education system that the teachers’ unions advocate for: strong and well-funded public schools. Seattle spends over $23,000 per child per year on school and teachers make around $100,000 on average. Every bond measure placed on the ballot gets approved overwhelmingly.
But choices are strictly limited – well-funded public school or very-expensive private school. Teachers’ unions have unfettered power to lobby the politicians for whatever they want. In response, over 30 percent of parents have pulled their kids out of Seattle Public Schools in neighborhoods where their families can afford to in just the past three years.
My family came to Arizona because of school choice. We stayed because our kids’ needs were met here. We’ve seen a union-first school system firsthand, and COVID revealed its shortcomings. In Arizona, we are leading the nation in building a child-first system, founded on universal ESAs.
As we hear Governor-Elect Katie Hobbs repeat her union supporters’ lines about Arizona’s school system and her criticism of the ESA program, please remember my family’s story of how a great Arizona private school and our school choice programs changed our son’s life and story for the better.
Every family should be able to choose the school that meets their kids’ unique needs, just like we did.
Kevin Gemeroy was recognized as Washington State’s Mr. Future Business Leader in 1998 and as a Puget Sound Business Journal’s 40 under 40 honoree in 2018. He and his wife reside in Scottsdale during the school year with their two twice-exceptional boys. You can follow Kevin on Twitter here.
