PHOENIX — The Arizona State Board of Education voted 8-1 to approve a new Empowerment Scholarship Account or ESA handbook in a meeting on Monday after calls from parents to reject the new changes.
For months now, some parents using ESAs have been going back and forth with the Arizona Department of Education (ADE) over the 2025-2026 ESA handbook. A draft of the new handbook was first posted in March and parents have been speaking out since then, pushing for change to the drafts.
The handbook had not been updated since 2023 and a new handbook was considered in 2024 but the Arizona State Board of Education, which oversees the ADE, decided to go with the older handbook after continued pushback from parents and legislators.
Parents have largely been concerned about proposed spending caps on certain items in the new draft. However, the latest drafted version of the handbook, which was posted last week, got rid of the spending caps.
Superintendent Tom Horne said he met with lawmakers who have been listening to constituents about their concerns over the spending caps.
“We made these concessions, but I think it preserves the principles that we only spend taxpayer money on a valid educational purpose at a reasonable price compared to market prices for what meets the students’ educational needs,” Horne said.
However, in the new handbook, some parents had issues with new language that was added that they feel is “ambiguous” and gives education staff discretion on their items, possibly being denied even though the spending caps were removed.
The following language is what Horne said they used instead of spending caps and some parents are worried about:
“Consistent with A.R.S. § 15-2402, the Department will approve expenses that are reasonably related to an educational or vocational purpose, based on consideration of the following factors:
- The specific circumstances and educational needs of the qualified student
- Whether the Department has previously approved of the expense or item for the qualified student or for another qualified student in similar circumstances
- The primary purpose of the expense or item, based on ordinary and customary usage and the stated description of the expense or item
- The cost or quantity of the expense or item is not greater than what meets the student’s education needs and circumstances in relation to other readily-available and reasonable alternatives
The Department may request additional information and/or documentation on a case-by-case basis to determine whether an expense is allowable…”
“Families are afraid to use this handbook. They’re afraid they’re going to have to pay funds back and that’s not what any of us want. We want to be good stewards of this money. We want to operate in good faith,” ESA parent Lynn Fox-Embrey said in public comment prior to the board vote.
Parents who get their items denied can ultimately ask for an appeal, however, some say it’s a lot legal work for them that they may not have the expertise to do so.
John Ward, the executive director of the ESA program with ADE, said that in each of the 10 cases they fought against with ESA parents trying to appeal, they won every single one and that an administrative law judge sided with ADE’s decision to deny requests. Ultimately, those appeals go to the State Board of Education for a decision as well. Ward and Horne have given examples of items that have been denied including a $16,000 cello to $4,000 bikes and more.
“They can’t just splurge all their money on one thing like that. It’s not in the educational interest of the child and it’s not a prudent application of taxpayer funds,” Horne said.
In an ABC15 investigation back in October of 2023, it spelled out expenses that were approved and ultimately allowed by the ADE. A large majority of the $306 million reviewed by ABC15 investigators showed ESA funds going to private and religious schools for tuition and other fees. Tens of millions were spent on other purchases including luxury car driving lessons, golf stores and more.
Critics of the universal program continue to call for reform of the program however small changes have been made to it since it became universal. One, most notably, was the Arizona Attorney General requiring curriculum for parents purchasing supplemental material including textbooks and pencils. A lawsuit had been filed over that requirement.
Some families feel the new changes to the handbook could impact students with disabilities.
“I’m not surprised,” ESA parent Angela Faber said of the board approving the new handbook. “I’m a little disappointed. I think I’m more disappointed in some of the celebrations of the audience members that worked on the handbook, celebrating the fact that disabled students are now going to be hurt by this whole program.”
Ward told ABC15 the new handbook didn’t change any rules for students with disabilities.
“Currently, ESA staff relies on licensed professionals or qualified examiners and now special education teachers, to write letters and explain what items and services students need based on their disability and situations,” Ward said of the expense approval process.
The sole ‘no’ vote in the meeting on Monday came from board president Katherine Haley who said she had concerns with some of the descriptions on how expenses will be measured and evaluated.
With the approval of 8-1, the new handbook will be adopted for the coming school year. ADE said the program has more than 90,000 students now, which before it went universal, there were roughly 11,000 students.
