No.
An analysis of Arizona Department of Education records by 12News found that about 22% of Empowerment Scholarship Account (ESA) purchases were for prohibited, non-educational items, suggesting misspending rates higher than the often-cited 0.001%.
The new finding was based on an internal department analysis of more than 384,000 ESA transactions from late 2024 to fall of 2025.
The 0.001% fraud figure originates from a 2020 report by the Arizona Auditor General, which reviewed 168,020 approved ESA transactions between October 2018 and October 2019. The audit identified one transaction at an unapproved merchant, totaling $30.
The 2020 audit, however, does not represent the total rate of misspending or fraud. It examined only approved transactions and did not account for unapproved purchases made at approved merchants. The review was also conducted before the program’s expansion to universal eligibility in July 2022.
This fact brief is responsive to conversations such as this one.
The Arizona Center for Investigative Reporting partners with Gigafact to produce fact briefs, or quick-response fact checks, about trending claims relating to Arizona.
Sources
- 12News, Condoms, gift cards and wedding gifts: Arizona parents allegedly misspent $10 million in ESA funds
- Arizona Department of Education, 2020 Arizona Department of Education Special Audit (page 45 in the PDF, page 38 in the document)
- The Arizona Republic, Ducey signs universal school vouchers into law
Support AZCIR with a donation!
Sign Up, Stay Informed
The Arizona Center for Investigative Reporting is partnering with Gigafact to produce timely fact briefs, or quick-response fact checks, about trending claims relating to Arizona.
