New York opts into federal school choice tax credit
Governor Kathy Hochul announced New York will join the federal Education Freedom Tax Credit program, making it the 31st state to participate ahead of a 2027 deadline.
New York has signaled it will opt into the first nationwide federal school choice tax credit program. Governor Kathy Hochul announced the state's participation on October 9, 2026, making New York the 31st state to join the initiative.
The federal government released proposed guidelines for the program just one week before Hochul's announcement. States must opt into the program by January 1, 2027. The program was championed by the Trump administration and enacted through the 2025 One Big Beautiful Bill.
Program structure and eligibility
The Education Freedom Tax Credit program is set to launch on January 1, 2027. Under its guidelines, families could use taxpayer-supported scholarships for a wide range of education expenses.
Students at private schools, including religious institutions, and homeschooled children could benefit. The scholarships could also be used for public school expenses. These include tutoring, services for students with disabilities, books, computers, and other costs.
Support and criticism
Private school choice advocates celebrated the guidelines' release. They said the rules would open up potentially billions of dollars in taxpayer donations.
Critics and public school leaders have pushed back. They argue the proposed rule would lead to subsidizing private, religious education. They warn it could harm public schools and their students. Some Democratic leaders have expressed caution about the program despite the state's decision to join. Some blue-leaning states have decided to participate despite their political leanings.
Hochul's justification and context
Governor Hochul defended the decision. She stated the program would bring millions to New York students without taking dollars from public schools. Leaders hesitant to opt in wanted to review the forthcoming rules first. They did not want to leave potential dollars for public school students on the table.
Hochul said she had been clear that New York would only participate if all schools and students could benefit. After a careful review of the federal regulations, she believes this program meets that condition. "I'm not going to leave money on the table when it could help our kids," Hochul said.
Participating states have until February 15, 2027, to submit lists of qualifying scholarship-granting organizations to the federal government.
