Education voucher funds for college? Arizona ESA spending raises new questions for growing program

PHOENIX — Newly uncovered data by 12News Investigates shows that some Arizona families are using taxpayer-funded school vouchers not only for K–12 education, but to pay for college. 

The spending is part of the state’s Empowerment Scholarship Account (ESA) program, a billion-dollar initiative that allows families to use public funds for private school, homeschooling, and other educational expenses. 

RELATED: School choice advocates, including Arizona Treasurer Kimberly Yee, call for reforms in Empowerment Scholarship program following 12News investigations

But unlike public school students, ESA participants can keep leftover funds after high school graduation—and in some cases, use that money to pay for several years of college.

ESA students also can take college courses while in high school, a common practice called dual enrollment that includes kids in district and charter schools. 

Records that 12News Investigates obtained from the Arizona Department of Education and the state Treasurer’s Office reveal that, since 2022, ESA families have spent at least $5 million on higher education.

The money has gone to both in-state and out-of-state universities, including:

• Grand Canyon University: $667,222
• Arizona State University: $586,663
• University of Arizona: $284,062

Out-of-state schools also received ESA funds, such as:

• Liberty University (Virginia): $217,912
• Brigham Young University (Utah): $42,650
• Bob Jones University (South Carolina): $39,002

But that out-of-state spending appears to conflict with state rules.

Arizona’s ESA handbook, crafted by the Department of Education, states that ESA funds are restricted to in-state educational institutions.

It’s a rule that the handbook notes have been upheld by both the State Board of Education and an administrative law judge.

Despite that, State Schools Superintendent Tom Horne is not enforcing the rule and disagrees with it. 

“Whether it’s out of state or in-state is not relevant to me. I think students should go to the best school they can go to,” Horne told 12News. “I went to Harvard, and it did me a lot of good. To say that it has to be in-state is very parochial and narrow-minded and not worthy of a good educational institution.”

State public records obtained by 12News show ESA money has been used at at least 50 out-of-state colleges since 2022.

12News for nearly a year has been seeking detailed ESA-spending records from Horne and Treasurer Kimberly Yee, who co-manage the program for 102,598 students.  

12News ultimately sued the two Republican statewide officials and, earlier this year, received more than 5 million public records involving ESA transactions dating to 2022, when the program was expanded to all Arizonans. The lawsuit is ongoing as 12News is seeking additional public records. 

Yee, who is term-limited, is challenging Horne in the Republican primary to be superintendent. 

Some data showing individual identification numbers for each ESA student was available on the State Treasurer’s website, but was recently removed. 

The data, however, does show new details of ESA spending on college.

• One student stopped receiving ESA funds by June 2022—but records show nearly $68,000 in reimbursements over the next three years while attending Grand Canyon University.
• Two other students stopped receiving funds by June 2023. Yet:
  • One family was reimbursed $57,000 for tuition at Embry-Riddle Aeronautical University.
  • Another received $54,000 for tuition at Arizona College of Nursing in late 2023, 2024, and 2025.

“State law allows for the use of leftover ESA funds for higher ed within four years of high school graduation,” said Doug Nick, a Department of Education spokesman. “No new dollars would be available after graduation.”

ESA vouchers typically provide $7,000 to $8,000 per year, though students with special needs can receive more than $40,000 annually.

Any unused money remains in the student’s account.

As of May 2025, 12News previously found $440 million sitting in unused ESA funds—money that could potentially be used for future education expenses, including college.

That figure is now around $350 million, according to Nick.

Some education leaders argue the system creates inequities.

“These parents are saving money after the kid graduates and using K-12 funds for higher ed,” said Curtis Finch, superintendent of Deer Valley Unified School District. “The average family has to save money, take out loans, or have their kid work.”

Teachers are also voicing frustration.

“It infuriates me,” said Phoenix middle school teacher Raquel Mamani. “Teachers are paying thousands of dollars out of their own pockets for basic supplies.”

The ESA program has no income limits, meaning families at any income level can participate.

Advocates for public schools say that’s something they want voters to reconsider this November.

The state teachers’ union and a pro-public education group called Save Our Schools Arizona are trying to get an initiative on the ballot. If voters approve it in November, it would introduce several changes:

• Families earning more than $150,000 annually would no longer qualify for ESA funds.

• Fingerprint clearance would be required for adults working with ESA students.

• ESA funds could not be used for luxury goods.

• Unused ESA money would return to public schools.

The American Federation for Children, a pro-voucher organization, is also pushing a reform initiative.

It would create a new online shopping system limited to approved vendors, eliminate reimbursements for parents and ESA debit cards, prohibit luxury or non-educational purchases, and ban parents who misuse funds. Its plan would not have any income caps. 

Several pro-ESA groups have opposed both efforts, saying it would infringe on parental choice for their children.

RELATED: Horne says new study shows ESA misspending is low

RELATED: 50 smart tablets, 12 AirPods, 12 beginner Bibles: Examples of serial duplicate ESA buyers

RELATED: As GOP lawmakers in Arizona rebuff changes to school voucher program, a Florida school-choice Republican is pushing major reforms there

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