Correction and Update [July 23, 2026]

This research brief, originally published on April 1, 2026, has been revised after EdChoice identified tabulation errors regarding ESA reimbursement transactions.

This correction substantially increases the reported number of reimbursement transactions and lowers the total reimbursement spending reported in the analysis. As a result, we revised several descriptive totals, averages, relative proportions, tables, figures, and associated statements throughout this publication.

The revised analysis continues to estimate the overall rate of unallowable ESA spending at approximately 2 percent. The correction does not change the original brief’s core findings, overall interpretation, or policy recommendations. The analyses – focused on Marketplace transactions – have not changed.

Readers should use and cite this revised version. Related online content has also been updated to reflect the corrected analysis. We apologize for the error. For questions, please email EdChoice’s research team.

After Arizona opened its Empowerment Scholarship Account (ESA) program to all families in 2022, a program that took a decade to enroll 10,000 students ballooned to ten times that number in just three years.  The 100,000 families spending ESA funds in 2025-26 have over 2 million transactions worth over $1 billion for education goods and services. Stakeholders are catching up to the scope of this program and beginning to ask important questions about whether those dollars are in fact going to educational expenses. Our new report digs into the transaction-level data to find out. Our results demand more nuance than many recent headlines want you to have.