State & Local News
Arizona Treasurer Seeks New ESA Vendor
March 23, 2026
Arizona Treasurer Kimberly Yee and the Arizona Department of Education have initiated a Request for Information (RFI) process as of March 2026 to identify new vendors and improved platform solutions for the Empowerment Scholarship Account (ESA) program. This action follows investigations revealing concerns about misuse and questionable spending within the ESA marketplace, which currently serves over 100,000 families and manages more than $1 billion annually. The RFI aims to enhance financial management, improve fund distribution efficiency, and strengthen oversight mechanisms to prevent improper expenditures.
- The Arizona Treasurer's Office and AZ Department of Education are actively seeking vendors capable of providing advanced financial platforms with robust compliance verification features.
- Current contractor ClassWallet manages ESA funds, but the state is exploring alternatives to address fraud allegations and improve accountability.
- Procurement professionals should note the opportunity to propose solutions that support transparent fund management and risk-based auditing capabilities.
- Vendors specializing in education financial platforms and compliance technologies may find strategic opportunities in this evolving ESA program procurement.
A ridiculous figure of 20 percent fraud has been circulating concerning ESA purchases which resulted from a total misinterpretation of data provided to Channel 12. The 20 percent figure represented program participants that ADE had selected for risk-based auditing. Continued use of the 20% fraud allegation is an outrageous misrepresentation to the public that must stop.
— Tom Horne, Arizona Superintendent of Public Instruction
Today I announced that the ESA marketplace platforms must be improved to protect taxpayer dollars. Arizona taxpayers deserve to have a platform that efficiently provides families with ESA funds while identifying misspending or misuse.
— Kimberly Yee, Arizona Treasurer
AFC is financially supporting this campaign and is dedicated to doing what it takes to get it to the ballot.
— Brian Jodice, Spokesman for American Federation for Children
Agencies
Arizona Treasurer's Office, Arizona Department of Education, State of Arizona
Vendors
ClassWallet
Contracts
, $1 billion-plus annual program
Locations
Sources
- Arizona treasurer seeks ESA marketplace improvements - KTAR.com · KTAR News 92.3 FM · Mar 19
- Is it time for a new ESA vendor? - State Affairs Pro · State Affairs · Mar 19
- School choice advocates, including Arizona Treasurer Kimberly Yee, call for reforms in Empowerment Scholarship program following 12News investigations | 12news.com · 12News · Mar 20
- Arizona Treasurer Pursues New Vendor, Platform Overhaul For ESA Program - AZ FREE NEWS · AZ FREE NEWS · Mar 23