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

"The previous administration's disregard for public school students is unacceptable," said Governor Hobbs. "My administration is committed to deploying federal funds lawfully and equitably, and today we have averted a violation of federal law and the State Constitution."

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The ESA grant agreement violates multiple constitutional provisions, including equal protection, the gift clause, and maintenance of a general and uniform public school system. It also does not address educational disparities as alleged in the agreement. The Governor's Office is currently evaluating alternatives for legal use of the $50 million at issue.

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