ADE Data Debunks False ESA Fraud Claim

The Arizona Department of Education (ADE) has released the results of a rigorous statistical analysis — conducted by a Stanford PhD — that sets the record straight on Empowerment Scholarship Account spending and confirms what ESA families already know: this program works, the system is transparent, and accountability is built in.

The facts are clear. Only about 2% of ESA dollars are spent on items deemed unallowable under program rules — and the vast majority of those are honest mistakes, such as submitting a form incorrectly or purchasing educational items like backpacks or water bottles that a parent could reasonably believe were permitted. Actual fraud or egregious purchases account for just 0.3% of spending.

For context, these rates are dramatically lower than misuse in comparable government programs: Medicaid (7.4%), SNAP (9.3%), and unemployment insurance (14.4%).

So where did the reckless claim of 20% fraud originate? From a local media outlet that misinterpreted data provided by ADE, despite attempts to explain the error and have the reporting corrected.

When actual misuse is identified, ADE acts swiftly. Accounts are suspended, funds are recovered, and those involved are referred to law enforcement. To date, more than $1.2 million has been returned through this process.

More than 100,000 Arizona students rely on ESAs. Their families deserve facts — not fear-driven headlines. Arizona’s ESA program delivers compassionate flexibility for families and rapid accountability for taxpayers, and these numbers prove it.

For the full ADE analysis, visit azed.gov/esa-study.

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