Gov. Kathy Hochul says New York will participate in a new federal education scholarship program despite an aggressive campaign by teachers unions urging her to reject it.
That is welcome news for New York families.
The federal Education Freedom Tax Credit, scheduled to take effect in 2027, allows taxpayers to claim a federal tax credit of up to $1,700 for qualifying cash contributions to approved Scholarship Granting Organizations. These organizations can then provide scholarships for eligible elementary and secondary education expenses.
Unlike voucher programs, the federal scholarship program does not require New York to redirect funds from its state education budget. The scholarships are funded by private contributions, which the federal tax credit encourages. Hochul has made that distinction central to her support for the program.
That has not stopped some of New York’s most powerful teachers unions from mobilizing against it.
American Federation of Teachers President Randi Weingarten joined New York teachers’ union leaders and allied organizations last week to urge Hochul to reverse course. Opponents contend that the program advances privatization and could ultimately weaken public education.
New York Families holds a different view.
“Supporting public education and expanding educational opportunities are not mutually exclusive,” said Jason J. McGuire, Executive Director of New York Families. “This program does not require Albany to divert funds from a local school district’s budget. It creates a new opportunity for private citizens to help moms and dads meet their children’s individual educational needs. We believe parents should have access to every legitimate tool available to help their children succeed.”
Hochul has now publicly committed New York to participation.
“We are opting in,” the governor told reporters Thursday, according to the New York Post. She argued that the program can benefit students without diverting resources from public schools.
Federal law requires states to elect to participate and to provide the IRS with a list of qualifying Scholarship Granting Organizations. The program begins on January 1, 2027, and the IRS says participating states must provide their lists of qualifying SGOs annually.
For New York Families, the issue is fundamentally about providing families with more educational options.
Students do not all learn the same way, and families do not all face the same circumstances. Some children thrive in traditional public schools, while others benefit from charter, private, or religious schools, homeschooling, or supplemental services such as tutoring.
The federal scholarship program offers another potential resource for those families.
The teachers unions have made their opposition clear. Hochul has now made her position clear as well.
New York Families supports New York’s participation and will be closely watching as the state moves from the Governor’s commitment to the practical steps needed to make the program available to New York families in 2027.
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