Arizona Attorney General, Goldwater Institute settle ESA purchase justification lawsuit

The Arizona Attorney General’s Office has settled a lawsuit over how certain Empowerment Scholarship Account purchases are reported by parents.

As a result, ESA users will no longer have to submit documentation to justify claims for items classified as as supplemental materials in the Arizona Department of Education’s parent handbook. Instead, they will need to attest that the purchases are for the qualified student and indicate what curriculum or course of study the material supports.

In addition to easing the burden on parents, the change will reduce the amount of material that needs to be reviewed by the Department of Education, which can still request more information to confirm the purchases follow the necessary requirements.

“The Parties agree that, ADE will not process, reimburse, or otherwise approve any supplemental material purchase unless the ESA holder has complied with the requirements outlined in this section as they become available based on technologically feasibility as determined by the outside vendor, or no later than the second quarter of FY2027,” the settlement says.

Arizona’s universal ESA school voucher program allows families to use public education tax dollars for private school or homeschooling expenses. It had over 100,000 enrolled students at the end of the 2025-26 school year.

Two homeschool parents sued over ESA reporting requirements

The settlement ends a legal battle that began in when two homeschool parents and the Goldwater Institute filed a lawsuit in 2024 claiming Attorney General Kris Mayes was preventing their families from accessing necessary schooling materials due to overreaching restrictions.

The lawsuit cited a letter published by Mayes stating that parents must prove all purchases are a part of a legitimate curriculum plan. The letter was written to address fraud in the program.

The two parents suing claimed the restrictions would require them to justify every purchase made using ESA dollars, including basic supplies like pencils and paper.

The Attorney General’s Office said those claims are misrepresented, with the policy specifically focusing on supplementary materials outside of classroom basics to ensure purchases are a part of the curriculum a homeschool or private school child is enrolled in.

“Their claims that parents needed a curriculum to clearly state that pens or pencils were required to study a curriculum is laughable as everyone understands those are tools that are used routinely in classrooms,” the Attorney General’s Office said in a statement.

Jon Riches with the Goldwater Institute told KTAR News 92.3 FM’s Mike Broomhead Show last week the plaintiffs were not expecting the settlement agreement.

“We had presented all of our briefs to the court as to why our position was right as a matter of law, and then they kind of opened the door to talk about settlement, which frankly was surprising,” he said.

Funding for this journalism is made possible by the Arizona Local News Foundation.

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