Arizona ESA Fight Heads To Court As Special Session Deal Resurfaces

Arizona’s school-choice fight escalated this week as opponents of a Republican-backed ballot referral sued to keep it off the November ballot, while school choice advocates urged lawmakers to return for a special session aimed at reviving a compromise over the state’s Empowerment Scholarship Account program.

The lawsuit, filed in Maricopa County Superior Court, challenges HCR 2048, the legislative referral titled the “Military Families College Savings and Scholarship Protection Act.” Screenshots of the verified complaint reviewed by California Globe identify the plaintiffs as Protect Education, Accountability Now Committee, an Arizona political action committee; Save Our Schools Arizona, an Arizona nonprofit corporation; and Linda May Lyon, a qualified elector. The defendants are the State of Arizona and Adrian Fontes, in his official capacity as Arizona Secretary of State.

The complaint, filed under case number CV2026-026062, asks for declaratory and injunctive relief in what it describes as a Tier 2 expedited election challenge. The plaintiffs allege that HCR 2048 violates the separate amendment rule in Article XXI, Section 1 of the Arizona Constitution. In the alternative, they argue the measure violates the title requirement in Article IV, Part 2, Section 13 of the Arizona Constitution and ask the court to void the measure’s no-severance provision.

The complaint asks the court to block the state and Fontes from placing HCR 2048 on the November 2026 general election ballot, or alternatively to block the no-severance provision from being submitted to voters.

The filing alleges that HCR 2048 is “deliberately designed to subvert the very democratic process it invokes.” In its request for relief, the plaintiffs ask the court to declare that the measure violates the Arizona Constitution’s separate amendment rule and, because that rule “permits no severance,” that the entire measure may not be submitted to voters.

HCR 2048 would ask voters to amend the Arizona Constitution to prohibit the state from confiscating money from scholarship accounts of students who are children of military families if those accounts are maintained under a state scholarship program and may be used for tuition or fees at eligible postsecondary institutions. The measure also states that if a future law or voter-approved measure violates that provision after Nov. 1, 2026, the entire law or measure is void and a court may not sever the offending portion.

The resolution passed the House on March 2, passed the Senate on June 13, and was filed with the Secretary of State on June 15, according to the official legislative text.

KJZZ reported that public education advocates are challenging the Republican-backed referral because it could void their proposed ESA restrictions if both measures are approved by voters. The outlet reported that the challenge was filed in Maricopa County Superior Court and that the plaintiffs are asking for the Republican-backed measure to be permanently blocked from the November ballot.

The lawsuit came as the failed end-of-session ESA compromise appeared to return to the center of Capitol discussions.

KJZZ reporter Wayne Schutsky wrote on X that he had confirmed Republican lawmakers were meeting Thursday to discuss “the possibility of a special session to negate this whole thing in a grand ESA bargain.” Schutsky added that Republicans would likely need some Democrats to pass the agreement and that Democrats opposed a similar attempt on the final day of session.

The Center for Arizona Policy issued an action alert Thursday urging supporters to contact lawmakers in favor of a special session. CAP said legislative leaders were pursuing an agreement that would keep what it called the “anti-ESA ballot measure” off the November ballot and described the deal as “the best chance” to ensure ESA students continue using the program.

The Arizona Department of Education reported 100,378 students enrolled in the ESA program this school year as of June 22, with another 7,342 new students enrolled for next school year.

The dispute has exposed divisions among Republicans and school-choice supporters over whether to accept a compromise with education groups in order to keep the Protect Education Act off the ballot.

State Rep. John Gillette (R-LD30) signaled the internal dispute in a post on X, writing that “the fight for school choice” is “a battle for parents ability to educate their children the way they see fit.”

@SteveMontenegro @GoldwaterInst
The fight for school choice, is a battle for parents ability to educate their children the way they see fit. The govt schools hate the competition and want control over all kids. Thanks to Speaker Montenegro and Goldwater for fighting this… pic.twitter.com/O2xnyE3fsk

— Rep. John Gillette AZ House LD30 (@AzRepGillette) June 25, 2026

“The govt schools hate the competition and want control over all kids,” Gillette wrote, while thanking House Speaker Steve Montenegro and the Goldwater Institute for “fighting this battle.”

Gillette’s post included an email addressed to Republican lawmakers from the Arizona school choice coalition, signed by Victor Riches, President and CEO of the Goldwater Institute; Jenny Clark, President and CEO of Love Your School; and Peter Gentala, President and CEO of the Center for Arizona Policy.

“This email is being sent on behalf of the Arizona school choice coalition in support of the education initiative agreement,” the email said. “Upon removal of the testing requirement, we support this deal.”

The coalition said it had worked to “implement and advance” the ESA program and defend it from opposition efforts. The email said the agreement removes “damaging provisions” that have been central to the opposition initiative while addressing uncertainty facing ESA families.

“This agreement removes the damaging provisions that have been the cornerstone of the opposition initiative while removing the uncertainty which hangs over the heads of ESA families during the coming months,” the email said. “We consider this a win for our side and we ask you to support this effort.”

The Protect Education Act, backed by public school advocates, would impose new restrictions on Arizona’s ESA program. Its campaign website says the measure would require mandatory background checks for school staff working with children, require participating schools to meet basic safety standards, add transparency and reporting requirements, ban ESA spending on non-educational expenses, impose a $150,000 family income limit adjusted annually for inflation, require unused ESA funds to be returned, and require voucher-funded schools to be accredited or administer a nationally recognized assessment. The campaign says students with disabilities would be exempt from the income cap and assessment provisions.

KJZZ reported that the Arizona Education Association and Save Our Schools Arizona are gathering signatures to place the measure on the November ballot. The outlet reported that the proposal would put guardrails on how ESA money can be spent and place a $150,000 income cap on families to qualify for the program.

The renewed push follows a failed final-day ESA deal at the Legislature. ABC15 reported that House Republicans reached an agreement with the Arizona Education Association on an ESA reform bill in exchange for ending the effort to place the Protect Education Act on the ballot. The bill failed in the Senate, where every Democratic senator and two Republican senators voted against the strike-everything amendment to House Bill 2142, according to ABC15.

Arizona Capitol Times reported before the deal collapsed that the proposed agreement would have placed certain prohibited ESA purchases into law, added funding for the Arizona Department of Education to administer the program, capped the amount families could save in ESA accounts, and prompted the Arizona Education Association to scrap its initiative. The outlet also reported that Republicans had promised to drop a separate ballot measure restricting teacher unions as part of the agreement.

After the ESA reform deal failed, Republicans advanced HCR 2048 and two other education-related referrals.

HCR 2040 would ask voters to amend the Arizona Constitution to prohibit school districts from using public money or resources to support labor organization operations. The measure would also bar school districts from deducting labor organization dues from employee paychecks and prohibit the use of internal communications systems for labor organization recruiting information or political materials.

SCR 1032 would ask voters to require certain school districts to spend at least 60 percent of operational spending on direct instructional expenses. Beginning in fiscal year 2027-2028, districts below that threshold would have to increase the portion of operational spending dedicated to direct instructional expenses by at least one-half of one percent per year until reaching compliance.

The Arizona Senate Republican Caucus said in a June 12 statement that the three referrals were intended to protect scholarship funds for military children, direct more education dollars into classrooms, and prevent taxpayer-funded school resources from being used for labor organization activities.

Republican activist Pam Kirby of The AZ Coalition urged lawmakers not to support a special session deal, writing on X that a House GOP caucus meeting was being held Thursday morning to discuss calling a special session within days. Kirby warned that HCR 2040, HCR 2048, and SCR 1032 could be at risk of repeal and urged supporters to contact lawmakers under the message “No Deals.”

Brahm Resnik of 12News reported on X that the committee behind the Protect Education Act was asking a court to toss out what he described as GOP lawmakers’ “poison pill” ballot referral. In a follow-up post, Resnik said the GOP deal with the Arizona teachers union that collapsed two weeks earlier appeared to be “back on the table.”

Supporters of HCR 2048 have framed the measure as a protection for military families. The Goldwater Institute said the referral would protect scholarship funds for military children and noted that Arizona’s ESA program serves more than 1,000 children whose parents served on active duty or were killed in the line of duty.

Opponents argue that HCR 2048 is designed to defeat the Protect Education Act even if voters approve both proposals. Axios Phoenix reported that the Protect Education Act would limit eligibility for most families to households earning up to $150,000, crack down on improper spending, and bar families from saving unused ESA money for future college use. Axios reported that HCR 2048 could nullify the proposed ESA reforms if both measures passed.

As of publication, it remained unclear whether a special session would be called, whether Republican leaders had enough internal support for a revived ESA agreement, or whether Democrats would provide the votes needed to pass it.