Governor Hobbs, House Democrats again push for oversight of Arizona’s growing education voucher program that’s projected to exceed $1 billion

PHOENIX — Gov. Katie Hobbs and House Democrats are again calling for more oversight of Arizona’s rapidly expanding Empowerment Scholarship Account (ESA) program that’s projected to cost taxpayers more than $1 billion.

But a key Republican says the program is working just fine by giving parents educational freedom and there are plenty of guardrails in place.

RELATED: Water, taxes, ESA funding outlined by Gov. Hobbs in her State of the State address

The school voucher program, which allows families to use public education dollars for private schooling, homeschooling, and other educational expenses, is serving nearly 100,000 students statewide. 

While popular among many parents, the program remains lightly regulated, and state leaders again continue to clash over how — or whether — it should be reined in as a new legislative session began this week.

Hobbs sharply criticized the program during the opening day of the 2026 legislative session on Monday, accusing it of operating without sufficient accountability.

She has called for changes since she took office in 2023.

“The ESA program continues to operate unchecked, squandering taxpayer dollars with no accountability,” Hobbs said on Monday. “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?”

A 12News investigation last year found that some ESA recipients used taxpayer-funded education dollars to purchase luxury items, including diamond rings, high-end clothing, large appliances, and even women’s intimate apparel, often with little to no immediate repercussions. 

12News also found that ESA families were stockpiling $440 million in unused funds, which could be used for college, and that families had spent $20 million on extracurricular activities like dance, piano, and private swimming lessons.

Records showed that hundreds of parents who made questionable purchases were not promptly cut off from the program.

 Rep. Nancy Gutierrez, D-Tucson, a former high school teacher, is once again pushing legislation aimed at tightening oversight, marking the fourth consecutive year she has introduced reform proposals since universal vouchers for all students began.

Gutierrez said Democrats want to prohibit ESAs for “luxury expenses like vacations and lingerie.”

She added that another bill would not allow any ESA money to be used for college tuition.

Other proposals would require a greater share of ESA funds to be spent on core academic subjects, assign each ESA student a unique identification number to help track attendance, and require fingerprint clearance cards for adults who come into contact with ESA students.

“We just have no way to track all of these voucher students,” Gutierrez said. “We need to know that these kids are safe, that they’re being educated and that the money is being well spent.”

Gutierrez acknowledged the bills face long odds in a Republican-controlled Legislature.

“If history serves, the Republicans will not hear any of our bills,” she said. “They don’t have any interest in stopping waste, fraud and abuse.”

House Speaker Steve Montenegro, R-Goodyear, defended the program, saying parents — not lawmakers — should guide education decisions.

“We’re going to continue to stand with moms and dads, because they know what’s best for their kids,” Montenegro said. “And there are guardrails there. I’d venture to say there are better guardrails than there are for public education.”

Montenegro also said improper spending is being detected and stopped. 

State Schools Superintendent Tom Horne has said abuses will be caught through risk-based audits.

However, 12News has sued the Arizona Department of Education and the state Treasurer’s office seeking additional ESA spending records since 2022. 

That’s when the program was expanded to every student in Arizona under former Republican Gov. Doug Ducey and the GOP-controlled Legislature.

The station previously found that hundreds of parents who made improper purchases — including appliances, gift cards, luxury clothing, and large-screen TVs — were not immediately blocked from using ESA funds.

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