Channel 12 aired a sensational story about fraud in Arizona’s Empowerment Scholarship Account (ESA) program, highlighting misuse for non-educational purchases. However, out of more than 1.2 million ESA transactions, the Arizona Department of Education found just $622,000 in potential fraud—less than 0.1% of total ESA spending. The program currently serves 90,000 students at a fraction of the cost of district schools, with many middle-income families benefiting.
Critics argue Channel 12 ignored much larger financial issues in traditional school districts, including $1.46 billion in spending at 30 non-compliant districts, $7.8 billion in cash reserves, and $12 billion in unused facilities. Meanwhile, the ADE has suspended only 0.4% of ESA accounts for misuse and referred some for prosecution.
ESA opponents are exaggerating small-scale fraud to undermine school choice, while ignoring much greater waste and mismanagement in district schools. Fraud should be punished, but the program should not be weakened, since it primarily helps families access better education.