On October 9, 2026, New York Governor Kathy Hochul announced that New York State will opt into President Donald Trump’s Education Freedom Tax Credit program. The initiative grants a 100% federal tax credit up to $1,700 for contributions to scholarship nonprofits. Hochul defended the move as bringing non-state revenue to public and private students, but faced intense criticism from major teachers unions and state Democratic legislative leaders who warn it threatens public school funding.
Hochul announces New York opt-in
- ▪Governor Kathy Hochul stated that joining the federal Education Freedom Tax Credit scholarship program will bring millions of dollars to New York students without taking funds from public schools or state and local budgets
- ▪On October 9, 2026, New York Governor Kathy Hochul announced that New York State would opt into President Donald Trump's federal Education Freedom Tax Credit program
- ▪Governor Kathy Hochul announced her decision to join the Education Freedom Tax Credit program following the release of proposed federal implementation regulations by the U.S. Treasury Department and the IRS on October 1, 2026
Federal tax credit program details
- ▪Under the federal Education Freedom Tax Credit scholarship program, families earning up to 300% of their area's median income can receive funds for private tuition or public school costs like tutoring, books, and transportation
- ▪The federal Education Freedom Tax Credit program provides individual taxpayers a 100% federal tax credit of up to $1,700 annually for donations to approved non-profit scholarship-granting organizations
- ▪The U.S. Department of the Treasury estimates that the Education Freedom Tax Credit program will generate nearly $26 billion annually nationwide by 2030
Support for New York's participation
- ▪Teach Coalition CEO Sydney Altfield commended Governor Kathy Hochul's decision to join the Education Freedom Tax Credit program, stating it expands educational opportunities and scholarships for tutoring and after-school programs across New York
- ▪Democrats for Education Reform CEO Jorge Elorza urged governors nationwide, including Governor Kathy Hochul, to opt into the federal Education Freedom Tax Credit scholarship program to maximize benefits for local students
- ▪Coalitions representing religious schools, including the Teach Coalition for Jewish schools and the New York Catholic Conference, made New York's participation in the federal Education Freedom Tax Credit program their top policy priority
Opposition to New York's participation
- ▪United Federation of Teachers President Michael Mulgrew criticized Governor Kathy Hochul's decision to join the federal Education Freedom Tax Credit program, calling the move a failure of leadership
- ▪A coalition of public school advocates, including teachers unions, the NAACP, and the NYCLU, launched a petition opposing New York's participation in the federal scholarship credit program
- ▪New York Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie expressed strong opposition to Governor Kathy Hochul opting New York into the federal Education Freedom Tax Credit program
Program participation in other states
- ▪Governor Kathy Hochul became one of only a few Democratic governors, alongside Colorado Governor Jared Polis, to opt into President Donald Trump's federal school choice tax credit program
- ▪More than 30 states, primarily led by Republican governors, had already opted into the federal scholarship tax credit program prior to New York's opt-in announcement
Debatable claims
- ▪Tax credit scholarships function as a voucher program for private education
- ▪New York should participate in the federal Education Freedom Tax Credit program
- ▪The federal scholarship tax credit program reduces state public school resources
- ▪Democratic governors are justified in accepting federal school choice tax credits
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