Empowerment Scholarship Accounts

All students living within the state and eligible to enroll in a public school in Arizona are eligible for an Arizona Empower Scholarship Account. Students may participate in grades K–12. Additionally, preschool children with a with a Multidisciplinary Education Team (MET) Evaluation Report, Individualized Education Program (IEP), or 504 plan are also eligible for participation in the program. Students may not participate in the ESA program if they receive scholarships from state tuition tax credit programs. _(Last updated July 15, 2024)_

ESA funds can be used for approved expenses in the following categories: tuition and/or fees at a qualified school and required textbooks at a qualified school; tutoring and teaching services; curricula and supplementary material; fees to manage the account; tuition or fees for a nonpublic online learning program; fees for nationally norm-referenced testing and grade level testing; tuition and/or fees at an eligible postsecondary institution and the purchase of required textbooks; services provided by a public school; uniforms; transportation services; and computer hardware and technological devices. _(Last updated July 15, 2024)_

ESAs are funded from state aid for schools at 90% of the state’s per-pupil base funding and any additional assistance that would apply if the student were enrolled in a charter school. Funding amounts vary depending on any special needs or required accommodation. Students with a current IEP, MET, or 504 plan are eligible to receive additional funding based on their IEP/MET eligibility category. The scholarship is distributed throughout the year over four quarters. State estimates project that typical ESA students will receive between $7,000 and $8,000 annually as of 2024–2025, but students with special needs receive significantly more. Because many ESA students have special needs, the average ESA in 2024–2025 is more than the statewide per-pupil average base funding amount. Empowerment Scholarship Accounts are funded through Arizona’s education funding formula, and any Arizona student who wishes to participate may receive funding. _(Last updated July 15, 2024)_

On March 21, 2014, the Arizona Supreme Court in _Niehaus v. Huppenthal_ declined to review a Court of Appeals’ ruling upholding the state’s education savings accounts (ESA). The Arizona Court of Appeals ruled ESAs are neutral toward religion. Although a prior 2009 decision by the Arizona Supreme Court in _Cain v. Horne_ , 202 P.3d 1178 (Ariz. 2009) (en banc) found vouchers to be unconstitutional in Arizona, the appellate court distinguished ESAs and said they did not violate the state constitution because funding can be used for a variety of educational resources in addition to private school tuition. _Niehaus v. Huppenthal_ , 310 P.3d 983 (Ariz. App. 2013). _(Last updated July 15, 2024)_