Arizona, home to some of the nation's broadest school choice systems, could see even more through a new federal program created this month as part of President Trump's "big beautiful bill," if the state chooses to opt in.

Why it matters: The law creates the first federal school voucher program, known as Qualified Elementary and Secondary Education Scholarships.

How it works: People can contribute up to $1,700 annually to a scholarship-granting organization (SGO) and receive a dollar-for-dollar federal tax credit in return.

• Those organizations use the money to award scholarships for expenses like private school tuition, books, equipment, tutoring and other services.
• Eligibility is limited to students whose families earn up to 300% of the area median income.

Yes, but: It's unclear whether the federal program will be available to Arizona students, given a provision that requires states to opt in.

• The law requires states to provide the feds a list of qualified SGOs annually.
• Those decisions will be left to the governor or whichever "individual, agency or entity" state law designates to make determinations regarding federal tax benefits.
• In Arizona, the Department of Revenue would likely decide, leaving it to the governor's administration, Arizona Department of Education spokesperson Doug Nick told Axios.

The intrigue: A spokesperson for Gov. Katie Hobbs did not respond to Axios' questions about whether Arizona would opt into the program.

• Hobbs has been a vocal critic of Arizona's voucher-style Empowerment Scholarship Account program, which she and other Democrats argue siphons money from public schools and is unaccountable to taxpayers.

Between the lines: The American Federation for Children (AFC), a national school choice advocacy group, touted that in states with preexisting private school choice options, federal scholarships "can be stacked … increasing purchasing power for parents and helping more students."

• State law prohibits students from using ESAs and STO money concurrently.

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🔥 Gov. Katie Hobbs toured the area around the North Rim of the Grand Canyon over the weekend to witness the devastation from the Dragon Bravo Fire, which has burned more than 11,000 acres and torched dozens of structures, including the historic Grand Canyon Lodge. (AZcentral)

🥩 The reopening of Durant's steakhouse has been pushed back from this fall to Dec. 10. (Phoenix New Times)

🚰 The Arizona Department of Water Resources will allow Buckeye and Queen Creek to withdraw water from the Harquahala basin to support new homebuilding, the first-ever legal transfer of water from rural Arizona to one of the state's active management areas. (Capitol Media Services)

🛒 Phoenix might require large retailers to install tracking devices and wheel-locking mechanisms on shopping carts. The city retrieved more than 7,800 abandoned carts last fiscal year. (ABC15)

⚖ The Arizona Court of Appeals ruled that Superintendent of Public Instruction Tom Horne lacks legal authority to file a lawsuit challenging public schools' ability to use dual-language enrollment programs. (Arizona Mirror)

Parents are heading into the 2025 back-to-school season facing rising prices and looming tariffs — forcing them to shop smarter and earlier.

Catch up quick: New U.S. tariffs on Chinese imports — including backpacks, pens, binders and shoes — kicked in earlier this year, rose sharply, then came back down to levels still historically high.

The big picture: 67% of back-to-school shoppers had already started buying for the coming school year as of early June, according to the National Retail Federation's annual survey of nearly 7,600 consumers, released last Tuesday.

• This is up from 55% last year and the highest since NRF started tracking early shopping in 2018, the group said.

By the numbers: NRF said that families with students in elementary through high school plan to spend an average of $858.07 on clothing, shoes, school supplies and electronics, down from $874.68 in 2024.

• Total spending is estimated at $39.4 billion, up from $38.8 billion last year.

Zoom in: Stationery and supplies prices have risen 30% over the past five years, according to Deloitte's 2025 back-to-school survey.

• Between May 2021 and 2025, boys' apparel climbed 14%, girls' apparel and footwear were each up 4%, while personal computers and peripheral equipment fell 11%.

Yes, but: The full impact of tariffs hasn't hit store shelves yet — and back-to-school season may be the first test of how much price pressure shoppers will tolerate, according to a Wells Fargo Investment Institute report released Monday.

• The June Consumer Price Index shows a 3.4% increase in stationery, stationery supplies and gift wrap, and a 10.2% price index in college textbooks.

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