Arizona ESA Contract Requirements: What You're Agreeing To

Signing the Arizona ESA contract commits you to specific obligations that most parents don't fully read before clicking "accept." This isn't a terms-of-service page you scroll past — it's a legally binding agreement between you and the state of Arizona that governs how you educate your child and spend public funds. Breaking it can mean account suspension, fund recoupment, or termination.

What the Contract Requires

The ESA contract under A.R.S. § 15-2402 creates a formal relationship: Arizona provides quarterly public education funding, and you agree to seven core obligations.

Withdraw from public school. Your child cannot be enrolled in any Arizona public district or charter school while the contract is active. You must formally withdraw before funds are released.

Do not file a homeschool affidavit. ESA students are legally classified as "contract students," not homeschoolers. You must not have an active Affidavit of Intent to Homeschool on file with your county superintendent. If you previously filed one, contact the county superintendent to withdraw it when you sign the ESA contract.

Provide instruction in five core subjects. The contract requires instruction in reading, grammar, mathematics, social studies, and science. There's no mandated curriculum — you choose the materials — but you must cover all five areas.

Spend funds only on qualified educational expenses. Every dollar must go toward items authorized under A.R.S. § 15-2402(B)(4) and the Parent Handbook. The allowable and prohibited lists are specific and change with each handbook edition.

Maintain records. You must keep receipts, invoices, and educational documentation for everything purchased with ESA funds for a minimum of three years.

Not hold a concurrent STO scholarship. A student cannot receive a School Tuition Organization (STO) tuition tax-credit scholarship during the same contract year (July 1 through June 30) as ESA funds.

Renew annually. The contract covers one fiscal year. You must renew through the ADE portal each year to continue receiving funding.

Contract Year and Funding Timeline

The contract runs July 1 through June 30. When you sign determines how much funding you receive that year: sign by September 30 and you get four quarterly deposits (100% of your annual award). Sign between October 1 and December 31, you receive 75%. Between January and March, 50%. April through June, just 25%.

For most families, that means applying early enough for ADE to review a complete application and issue a contract by September 30. The application is open year-round, and processing can take up to 30 calendar days; ClassWallet setup typically takes about three weeks after contract execution.

What Happens If You Break the Contract

ADE can suspend your account and require repayment for a disallowed expense. A notice gives you 15 business days, excluding weekends and state holidays, to provide documentation establishing allowability or repay the amount; if the issue remains unresolved, ADE terminates the contract and may refer the case to the Attorney General's Office. You can appeal under A.A.C. R7-2-1511.

Read the Contract Before You Sign

The electronic contract is available in the ADE ESA Applicant Portal after your application is approved. Read every section. Pay special attention to the withdrawal and affidavit requirements — these are the most commonly misunderstood obligations, and getting them wrong creates legal conflicts that are harder to fix retroactively.

The Arizona ESA Parent Guide breaks down each contract obligation with practical compliance steps so you know exactly what's expected before and after you sign.

See more Arizona guides →