Arizona ESA 2026-27: eligibility, funding amounts, and how to apply

Arizona's Empowerment Scholarship Account is still the state's main way for families to direct public education dollars outside a district or charter seat. ADE is taking 2026-27 applications. As of August 31, 2026, ADE reported 104,644 students enrolled for the year, with that count still settling after contract renewals. [1]

This hub covers eligibility, funding shape, and ClassWallet. The companion piece, how to use ESA funds to home educate in Arizona, is the payment walkthrough.

Arizona ESA at a glance (2026-27)

• Eligibility: all Arizona K-12 residents, plus pre-K with a documented qualifying disability. No income cap.
• Funding: formula tied to state per-pupil aid. General-education awards are often described around $7,000 a year and vary by district and grade. IEP and 504 categories fund higher.
• Platform: Arizona Department of Education. Quarterly deposits into ClassWallet. [3]
• Who can apply now: the 2026-27 window is open on the ADE ESA portal. Renewals that missed paperwork can still return in Quarter 1, per ADE. [1]
• Approved expenses: private tuition, curriculum, online classes, tutoring, educational therapies, testing, educational technology, microschools.
• Hard stop: no public or charter enrollment, even part-time, and no simultaneous STO scholarship.

Who is eligible

Since the 2022 universal expansion, every Arizona K-12 resident can apply. You do not need prior public-school attendance. Pre-K needs documented qualifying disability paperwork.

Upload proof of Arizona residency, the child's birth certificate, and IEP or 504 documents when they apply. ADE processing is often several weeks.

How much funding

Exact dollars sit on the ADE award for that student. Treat "about $7,000" as a planning range for a general-education student, not a guarantee. Disability categories can run much higher. Unused funds roll over while the student stays in the program.

Deposits arrive quarterly in ClassWallet. For ESA basics across states, see what an education savings account is.

What funds can pay for

Major handbook categories include private school tuition, homeschool curriculum, online classes, tutoring, therapies tied to a qualifying disability, SAT/ACT/AP fees, educational tech, and microschool costs. ADE can still request documentation on a compliance review.

As of July 2026, items ADE classifies as supplemental materials no longer need a receipt upload. Families attest that the purchase supports a named course of study. Other categories still use standard ClassWallet receipts.

Will this receipt clear?

Use this four-step check before you spend:

• Is the student on an active ESA contract for 2026-27, not dual-enrolled in a public or charter school?
• Is the expense educational (curriculum, online class, tutoring, therapy, testing, approved tech)?
• Are you paying the ClassWallet way that matches the vendor: Marketplace, Direct Pay, or reimbursement with invoice plus proof of payment?
• If it is a supplemental material under the July 2026 handbook change, did you attest which course of study it supports?

Cross-check categories on our ESA approved expenses list.

How to use Arizona ESA funds on Outschool

Outschool is an approved ClassWallet provider. Arizona families book live classes, 1:1 tutoring, and self-paced options through the marketplace, not by guessing a reimbursement later.

1. Log in to ClassWallet from the ESA Applicant Portal
2. Search for Outschool
3. Choose the class that fits the learning plan
4. Pay with ESA funds in ClassWallet

Browse homeschool classes or 1:1 tutoring when you already know the subject.

How to apply

1. Confirm Arizona residency and K-12 status (or pre-K with a qualifying disability)
2. Gather proof of residency, birth certificate, and IEP or 504 paperwork if you have it
3. Apply in the ADE ESA portal at esaportal.azed.gov
4. Wait for email status. Processing is often several weeks
5. Open ClassWallet and spend after the quarterly deposit posts

FSTC is separate

The federal Scholarship Tax Credit is a donor credit of up to $1,700 starting January 1, 2027 in 31 participating states. It is not your Arizona ESA. Arizona ESA still runs through ADE and ClassWallet. [2]

FAQ

Can my child attend public school part-time on ESA?

No. ESA students withdraw from public and charter schools. Part-time is not allowed while funds are active.

Do unused funds roll over?

Yes, while the student stays enrolled and in good standing. After graduation or a GED, remaining funds can cover approved expenses for up to four years, including in-state college tuition, under ADE rules.

Can siblings share one wallet?

No. Each child has a separate ESA and ClassWallet account. You can switch kids after one login.

Sources

[1] Arizona Department of Education. Empowerment Scholarship Account. Enrollment note as of August 31, 2026. https://www.azed.gov/esa

[2] IRS. Federal Scholarship Tax Credit (FSTC). https://www.irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc

[3] Arizona Department of Education. ClassWallet information. https://www.azed.gov/esa/classwallet

Need the payment walkthrough instead of eligibility? Read how to use ESA funds to home educate in Arizona.