The House plans to debate a measure that would take more than $200 million a year from school districts that receive funding to provide an equal opportunity education to minority students.
The proposal by Rep. Vince Leach of Tucson would dismantle desegregation funding for 18 school districts over five to 10 years.
Decades ago the federal government ordered 19 school districts to end racial discrimination practices and allowed them to levy higher local property taxes to pay for the changes.
Advocates say the funding is outdated and creates an unfair system that favors some school districts over others.
Opponents say Arizona's education system is already underfunded and a further reduction would devastate districts that receive the funds.
The House plans to debate House Bill 2401 on Tuesday afternoon.