Hochul opts New York into federal school choice tax credit program
New York Gov. Kathy Hochul announced Friday that the state will join President Donald Trump's Education Freedom Tax Credit program. The program offers up to $1,700 in federal tax credits for donations to scholarship organizations. Teachers unions and public school advocates opposed the move and launched a petition urging Hochul to reject it.
Federal guidance came Oct. 1, when Treasury and the IRS proposed rules for the Federal Scholarship Tax Credit, also called the Education Freedom Tax Credit. It would let taxpayers claim a dollar-for-dollar federal credit up to $1,700 for donations to nonprofit scholarship-granting organizations, but governors must opt in before residents and local groups can participate.
Hochul cited past school funding increases, including over $10 billion and full Foundation Aid. Opponents, including teachers unions and public school advocates, circulated a petition saying the program would send tax dollars toward private tuition and that many New Yorkers had not heard of it. The petition says New York would join starting in 2027.
The change may affect New York families seeking scholarships, private schools, public school budgets, and taxpayers who donate. If participation begins in 2027, some parents could gain new aid for tuition or related costs, while public school advocates worry resources may shift away from district schools. The broader impact may depend on how many donations are made, how scholarships are awarded, and whether state and federal rules shape access.