PHOENIX- Today, Governor Katie Hobbs delivered notice to the Arizona State Treasurer’s Office that a $50 million grant made to the Treasurer in the final hours of the Ducey Administration is illegal and invalid. The grant agreement attempted to improperly use federal funds from the American Rescue Plan Act to fund all-day kindergarten for ESA recipients, despite the fact that the State funds only half-day kindergarten for public school students.

“Illegally giving $50 million to private schools while failing to properly invest in public education is just one egregious example of the previous administration’s blatant disregard for public school students,” said Governor Katie Hobbs. “I will always fight to protect our public schools and work to give every Arizona student the education they deserve. Today, we averted a violation of federal law and the State Constitution. In my administration, we are committed to deploying federal funds lawfully and equitably.”

The ESA grant agreement violates multiple constitutional provisions, including on equal protection, the gift clause, and maintenance of a general and uniform public school system. The agreement is also inconsistent with the American Rescue Plan Act because it does not address educational disparities as alleged in the agreement. The Governor’s Office is evaluating alternatives for legal use of the $50 million at issue.