WASHINGTON — New York Gov. Kathy Hochul said Friday her state will take part in the new federal scholarship tax credit, making her the second Democratic governor to voluntarily opt in to the school choice program created in last year federal tax and spending law.
Hochul follows Colorado Gov. Jared Polis. The program, passed as part of the One Big Beautiful Bill Act backed by President Donald Trump, gives taxpayers a federal credit for donations to scholarship granting organizations. Individuals can get up to $1,700 back and married couples filing jointly up to $3,400. Families making up to 300% of the area median income are eligible for the scholarships.
The money can pay for private or religious school tuition, but it can also cover services such as tutoring and after-school programs, which Hochul said means public school students can benefit too. She had waited for Treasury Department rules, released last week, before deciding, and said the program could bring millions of dollars to New York families without taking money from public schools or state and local budgets.
Teachers unions and state legislative leaders had urged her to stay out, arguing the credit will pull families and money away from public schools. The head of the city teachers union called the decision a failure of leadership.
According to an IRS tracker, 30 other states have opted in. In Kentucky, North Carolina and Kansas, Republican legislatures overrode Democratic governors vetoes to join, while other Democratic governors have declined or are still reviewing the rules. School choice advocates had hoped a decision by Hochul would put pressure on governors still on the fence.
