Caroline Hendrie, a veteran journalist who wrote for many years at EdWeek, wrote an overview of the implementation of vouchers (or “Education Savings Accounts“) in states that have endorsed “universal” access, removing almost all limits on access to them. Vouchers for rich and poor alike. As Josh Cowen has written in many articles, most students who use vouchers never attended public schools. And those from public schools who use vouchers are likely to do less well academically than the peers they left behind. No longer do you hear that vouchers will “save poor kids from failing public schools” because they don’t. In red states, they are a gift of public funds to families who happy to collect $6,000-$10,000 to underwrite their private school tuition.

Hendrie explains that voucher fans fall into two camps: On one side are those who want voucher families to restrict their use of public funds only to authorized expenditures, like tuition, tutoring, computers, school supplies. On the others are parents who say they want no restriction on what they purchase.

Like Florida, the states of Arkansas, Iowa, and Utah have all enacted laws this year that would open ESAs—sometimes after a multiyear phase-in—to most if not all school-age children in their states. Those four followed Arizona and West Virginia, which started implementing similar universal programs in 2022.

That wave plus other legislative action in 2023 brought to 13 the number of states with one or more education savings account programs funded directly from state revenues. In addition, Missouri has an operating ESA program paid for through tax credits.

Amid this growth, controversies have flared over ESA implementation—most notably but not exclusively in Arizona.

Critics complain that voucher money has been spent on non-education expenses, like swimming pools, kayaks, bbq grills, greenhouses, chicken coops, pianos, pizza ovens, and trampolines.

But parent groups have advocated for maximum flexibility, in which parents get a debit card and are free to purchase whatever they want, with no oversight.

Of course, vouchers create new for-profit opportunities. A company named ClassWallet has emerged to provide financial services to voucher states.

In 2019, Arizona contracted with the company ClassWallet to facilitate ESA transactions on its online spending-management portal. ClassWallet is also used by ESA programs in Indiana, Missouri, New Hampshire, and North Carolina.

On its website, the Florida-based ClassWallet lists its offerings:

ClassWallet is a digital wallet with an integrated eCommerce marketplace, automated ACH direct deposit, and reloadable debit card with pre-approval workflows and audit-ready transaction reporting. ClassWallet reduces overhead costs, saves valuable time, and better visibility and control for decentralized purchases.

Save Our Schools Arizona, which led the campaign to stop voucher expansion in 2018, is convinced that the state’s new commitment to universal vouchers will prove harmful to public schools, where most students are enrolled.

Save Our Schools Arizona, which advocates for public schools and opposes the 2022 ESA program expansion, argues that ongoing disputes over implementing the broader program prove it has become, as the organization’s executive director, Beth Lewis, puts it, “too big to succeed.”

Lewis said that the program is “wide open” for fraud. “It is interesting to watch my taxpayer dollars be used to build a garden in everybody’s backyard, when my public school can’t afford one,” she said. “It’s just this unspoken rule of, if you see it in a public school, then it’s approvable.”

Other states should view Arizona’s move to universal eligibility not as a model but as a cautionary tale, Lewis argues. She sees evidence of that happening in states such as Arkansas and Iowa, where newly passed laws call for incremental, multiyear expansions before getting to universal eligibility.

“I think they looked at Arizona and saw that this is a complete disaster and is not serving families well,” Lewis said. “There’s no way to ensure transparency. And they said, ‘Well, at the very least, we need to phase this in.’”

School-choice advocates tend to defend Arizona and see its uneven expansion process as par for the course when states try something different to promote educational freedom.

The last thing the choice lobby worries about (if ever) is the well-being of public schools, even though they enroll the vast majority of students in the state.