ESA audit flags millions of dollars in purchases with education funds

March 7, 2026 - 18:59

A recent review of Arizona's Empowerment Scholarship Account (ESA) program has identified millions of dollars in purchases using public education funds that did not comply with program rules. The audit, which examined a nearly yearlong period, flagged approximately 84,000 individual transactions categorized as "unallowed."

The findings point to a significant potential misuse of the program, which provides state-funded accounts for families to use on private school tuition, homeschooling materials, and other approved educational services. While specific details of the non-compliant purchases were not fully disclosed in the initial report, such flags typically involve spending on items or services not permitted under the program's strict guidelines.

State officials are now tasked with reviewing the flagged transactions to determine the exact financial impact and whether any funds must be recovered. The audit's scale highlights the ongoing challenges of oversight in school choice programs that distribute public money directly to parents. Proponents argue the program offers vital flexibility, while critics contend the findings underscore the need for stricter accountability and transparency measures to ensure taxpayer dollars are used solely for their intended educational purpose. The report is expected to fuel further debate over the program's management and fiscal controls.