New York Democratic Gov. Kathy Hochul said May 7 that she intends to enter the state into a federal tax-credit scholarship program created under President Donald Trump’s “One Big Beautiful Bill Act,” making New York one of the few Democratic-led states to participate in the school-choice initiative.
The program, approved in 2025, allows taxpayers to receive a dollar-for-dollar federal tax credit of up to $1,700 each for donations to nonprofit scholarship-granting organizations. Those groups can then provide scholarships for private school tuition, tutoring, homeschooling expenses, and certain other education-related costs for K-12 students.
Hochul’s office said in January and February that the state was awaiting additional federal guidance before deciding whether to participate. However, at a private event with Jewish education advocacy group Agudath Israel, Hochul signaled support for the initiative and later confirmed her position through a spokesperson.
“Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools,” spokesperson Emma Wallner said in a statement quoted by Chalkboard.
Wallner added that the administration would review forthcoming Treasury Department and IRS guidance for any potential “poison pills” that could negatively affect New York’s education system.
The program, which is scheduled to launch in 2027, requires states to opt in before students can access scholarships through in-state organizations. Eligible students would generally come from families earning less than 300% of their area’s median income.
Congressional estimates project the program will provide about $500 million in tax credits in 2027, growing to roughly $4.4 billion by 2034, expanding educational opportunities without directly reducing public school funding.
Advocates for school choice, including the American Federation for Children, praised the move as a victory for parents seeking alternatives to public schools.
“Finally, school choice is coming to New York,” American Federation for Children CEO Tommy Schultz said in a statement, praising supporters who “worked for generations to advance options for kids who need them.”
State Sen. John Liu, chair of the New York City Education Committee, warned that the program could harm public education and said he hoped the state would ultimately reconsider participation.
New York does not currently have a broad private school voucher program, though it supports charter schools and other school-choice options.
As of early May, roughly 30 states had opted in to the federal tax-credit initiative, most of them led by Republicans. Colorado Gov. Jared Polis is among the few Democratic governors who have already joined the program.