The federal government is offering millions of dollars of scholarships to Arizona kids.
Gov. Katie Hobbs will likely turn it down.  
The federal budget bill passed this July contained a provision called the Educational Choice For Children Act, allowing any American to receive a $1,700 tax credit to offset a donation of $1,700 to a nonprofit Scholarship Granting Organization (SGO).
Effectively, the act allows taxpayers to pay a portion of their taxes to an educational charity that they support rather than the federal government. SGOs distribute the money they receive as scholarships to K-12 students for private school tuition, educational materials or other services.
But for a kid to be eligible to receive a scholarship, Arizona must first opt in to the program.
Governor Hobbs, a vocal critic of Arizona’s Empowerment Scholarship Account program, is unlikely to do so.
State-funded ESAs provide about $7,000 of tuition support per student — a huge help for many families — but the average private school tuition in Arizona is closer to $10,000 for elementary school and $14,000 for high school. 
Arizona already has Student Tuition Organizations, or STOs, which also distribute scholarships to help pay this tuition, but state law does not allow students to use ESAs and these scholarships at the same time.
Scholarships distributed by the federally allowed SGOs could help make up the difference by stacking on top of these funds at no additional cost to the state budget, making quality schooling truly affordable for Arizona families.
If Arizona opts out, taxpayers would still be able to donate to SGOs, but kids won’t be eligible to receive those funds.
Still, there’s a sliver of hope: It’s unclear whether Hobbs has the final authority to make the opt-out decision.
Unlike most states, Arizona has a superintendent of public instruction, a statewide elected official who is responsible for most education-related decisions in Arizona.
The current Superintendent of Public Instruction is Tom Horne, a strong supporter of school choice.
An Arizona Department of Education spokesperson told Axios that the decision would likely lie with Arizona’s Department of Revenue, which is under the control of the governor.
But Arizona is already included in the federal tax credit. Every U.S. taxpayer, including those in Arizona, will be able to claim the credit when it comes online in 2027.
The decision for Arizona leaders now is whether Arizona kids will be eligible to receive the scholarship money from SGOs.
This should be an educational matter, not a tax matter, which under Arizona’s constitution, would place authority with Superintendent Horne.  
Faced with this ambiguity, Horne should take the initiative and opt in on behalf of Arizona.
The worst-case scenario is that the Department of Education has to go through the courts with the governor, and Arizona kids are in the same position as they were before the federal law was passed.
The best-case scenario is that thousands of Arizona kids receive scholarships to attend the schools that are best for them.
The program has an income requirement. Eligible students must come from a family that makes 300% of the median area income or less. That means that about 90% of American families would be eligible.
Even though it is not 100% clear whether the governor or the superintendent of public instruction is the person with the authority to opt Arizona in or out, Superintendent Horne should still file the paperwork to opt in.
Governor Hobbs may sue to claim that she has the authority for that decision. But then again, she may not.
Going into the 2026 gubernatorial election, Hobbs may not want to be seen suing a fellow government official in an attempt to keep scholarships out of the hands of Arizona kids. Hobbs would probably like the issue to go away quietly without having to make a public decision either way. 
Superintendent Horne has nothing to lose and everything to gain by opting in on behalf of Arizona now.
Simon Laird is a school choice advocate based in Washington, D.C., and a contributor to Young Voices, an organization that helps center-right voices share their ideas. Reach him at simonlaird.substack.com.

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