Arizona Treasurer Calls for Overhaul of ESA Marketplace Platforms to Safeguard Public Funds

PHOENIX, Ariz. — Arizona State Treasurer Kimberly Yee announced a new initiative aimed at improving the technology platforms used in the state’s Empowerment Scholarship Account (ESA) program, emphasizing the need to better protect taxpayer dollars and enhance services for families.

In a statement released Thursday, Yee said the current ESA marketplace systems must be updated to ensure efficiency, transparency, and compliance with state law. Her office will soon launch a formal Request for Information (RFI) process to gather input from technology vendors on potential upgrades and new solutions.

“It is imperative that Arizona’s ESA platform vendor operates effectively, provides a user-friendly system for families, and verifies that expenditures comply with Arizona law,” Yee said. “The RFI will help us evaluate market trends and technological capabilities as we prepare for a future Request for Proposal.”

The ESA program, one of the largest school choice initiatives in the country, currently serves approximately 102,000 Arizona families. Through the program, families can use public funds for approved educational expenses, including private school tuition, tutoring, and specialized services.

The State Treasurer’s Office manages the contract with the financial platform vendor responsible for processing ESA payments and reimbursements. However, Yee clarified that her office does not oversee the program’s daily operations, which fall under the authority of the Arizona Department of Education.

Yee stressed that safeguarding public funds remains her top priority as the state’s chief financial officer. She said the RFI process will help identify platforms that can both streamline fund distribution and detect potential misuse.

“If there are better systems—or improvements to existing ones—that can deliver funds efficiently while preventing misspending, Arizona taxpayers deserve to benefit from them,” she said.

The upcoming RFI will invite companies to showcase innovations such as modern platform design, automation, and artificial intelligence tools that could strengthen oversight and improve user experience.

The Treasurer’s Office expects to issue the RFI in the coming weeks, marking the first step toward a broader modernization effort for the rapidly expanding ESA program.