Restoring Arizona’s voucher program to its original mission: targeted, fair, and fiscally responsible.
1. TLDR
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Fully repeals the 2022 expansion of Arizona’s Empowerment Scholarship Account (ESA) program
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Restores ESA eligibility to the original, pre-2022 categories
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Ends universal ESA access
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Saves over $330 million annually, totaling $1 billion over three years
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Strengthens public school funding and oversight
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2. Purpose
This measure repeals the 2022 law that made all Arizona students eligible for taxpayer-funded private school vouchers, regardless of need.
The original ESA program was designed to support high-need students — such as those with disabilities, in foster care, military families, or in low-rated schools.
Universal expansion removed these guardrails, causing costs to triple and public education funding to destabilize. Without reform, Arizona faces structural deficits and reduced classroom services by 2026.
This proposal restores the program’s intent: targeted support, fiscal responsibility, and public school stability.
3. Background
The ESA program was created in 2011 for vulnerable students. It included:
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Students with disabilities
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Students attending “D” or “F” rated public schools
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Children in foster care or adopted from state care
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Children of active-duty military personnel
⠀In 2022, the Legislature passed HB 2853, removing eligibility restrictions and making all Arizona students eligible.
As a result:
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ESA costs rose from $189M to $587M in one year
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Over $330M now funds non-eligible, non-need-based students
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73% of current ESA recipients would not have qualified under pre-2022 rules
⠀If unchanged, annual ESA costs will exceed $860M by FY2025, diverting core education funds and increasing budget pressure on districts statewide.
4. Proposed Solutions
Solution 1: Repeal HB 2853 (2022 ESA Expansion Law)
- Rescind the law that created universal ESA eligibility
⠀ Solution 2: Restore Pre-2022 Eligibility Rules
Only these student groups will remain eligible:
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Students with disabilities
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Students attending low-rated public schools
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Students in or adopted from Arizona’s foster care system
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Children of active-duty military personnel
⠀ Solution 3: End New Universal ESA Enrollments
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As of January 1, 2027, new universal applications will be rejected
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All existing ESA accounts will be reviewed for eligibility
⠀ Solution 4: Grace Period for Transition
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Ineligible students may continue receiving ESA funds through December 31, 2027
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ADE must notify families and assist with educational transitions
5. Evidence
Learning Policy Institute (2024)
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ESA costs rose from $189M to $587M in 12 months
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FY2025 projections exceed $860 million
→ Understanding the Cost of Universal School Vouchers
Open Access PDF
Grand Canyon Institute (2024)
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Net cost of expansion: $332M in 2024, rising to $429M in 2025
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Universal vouchers comprise over half of all ESA spending
→ Cost of the Universal ESA Vouchers
Arizona Department of Education (FY25 Q2)
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73.6% of ESA recipients qualify only under the universal rules
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Expansion drove a sharp increase in spending without oversight
→ ESA FY25 Q2 Legislative Report
Great Lakes Center (2025)
- ESA expansion deepened educational inequality and reduced accountability
→ Open Access PDF
National Education Policy Center (2024)
- ESA systems across states suffer from poor financial tracking
→ Open Access PDF
RAND Corporation (2024)
- No consistent academic gains tied to ESA use; mixed outcomes
→ Open Access PDF
University of Arizona (2024)
- ESA expansion primarily benefits high-income families
→ Open Access PDF
WestEd (2024)
- Calls for clear oversight, stronger audit tools, and eligibility safeguards
→ Open Access PDF
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6. Definitions
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ESA (Empowerment Scholarship Account): A state program using public dollars for private education.
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Universal Voucher: ESA access for any student, regardless of need or eligibility.
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Pre-2022 Eligibility: Criteria limited to students with disabilities, in foster care, or attending low-rated public schools.
7. Clarifications
Q: Will students lose scholarships immediately?
No. Students who became eligible under the 2022 expansion will have until December 31, 2027 to adjust.
Q: Will students with disabilities still qualify?
Yes. All original ESA eligibility groups are fully preserved.
Q: Does this eliminate school choice?
No. Families may continue choosing private or homeschool options without taxpayer subsidies unless eligible.
Q: What about rural families with limited school access?
Students attending “D” or “F” rated schools, including rural districts, remain eligible. Others can still choose private options but will not receive public ESA funds.
Q: Will this cost more to implement?
No. ADE already manages ESA eligibility and oversight. No new systems or funding are required.
8. Implementation
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Legal Form: Statutory Ballot Initiative
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Statutes Affected: A.R.S. §15-2401 through §15-2404
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Filing Authority: Arizona Revised Statutes, Title 19
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Effective Date: January 1, 2027
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Grace Period Ends: December 31, 2027
⠀Agency Oversight:
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The Arizona Department of Education (ADE) will review all ESA accounts for compliance
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ADE shall notify affected families and provide transition guidance
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ADE shall issue compliance and fiscal reports by Q2 2028
⠀Budget & Fiscal Impact:
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No new funding required — ADE already oversees ESA eligibility and enforcement
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Any short-term transition work will be absorbed by existing ESA administration
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Projected savings:
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~$330 million per year (2024–2027)
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~$1 billion in total over three years
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Long-term administrative savings from reduced program size and account volume
9. Why This Proposal Is Critical
The 2022 ESA expansion created a runaway subsidy program that diverts $330+ million annually from Arizona’s public schools — for students with no demonstrated need.
It destabilizes school budgets, weakens accountability, and undermines the original intent of ESA law.
This measure restores balance: support for those who truly need it, and protection for Arizona’s public education system from unsustainable voucher costs.
10. Call for Feedback
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Should we also explore income caps for high-cost ESA accounts?
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Would a shorter or longer grace period serve families more equitably?
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How can ADE make ESA spending data more transparent to the public?