AZ HB2480

Requires Arizona to withhold 10% of state funding from school districts and charter schools where fewer than 50% (2027-2028), 60% (2028-2029), or 75% (2029-2030) of third graders score above the two lowest achievement levels on the statewide reading assessment.

Schools subject to funding withholding may submit a remediation plan to the State Board of Education to have withheld monies returned, with returned funds restricted to instruction purposes based on the plan.

Mandates retention of third graders who score in the two lowest achievement levels on the reading assessment, with exceptions reduced from three years to two years of English instruction for English learners.

Narrows the exemption allowing promotion despite low reading scores to require that retained students receive intervention services for at least two school years and be retained for at least two total years in K-3.

Permits schools to offer intensive acceleration classes providing reading instruction and intervention to retained third graders until they demonstrate sufficient reading skills on an approved alternative assessment.