Hochul opts New York into federal school choice tax credit despite teachers union opposition

New York Governor Kathy Hochul has decided to bring her state into the new federal scholarship tax credit program, despite opposition from teachers unions. The program, which was passed as part of the One Big Beautiful Bill Act last year, aims to generate millions in additional funding for public school students. Hochul, who had previously indicated her intention to join the program, said that the rules released by the Treasury Department provide opportunities for public school students to benefit from the program, particularly in the form of tutoring.

She emphasized that the program could bring in new dollars for New York students and families without taking money away from public school budgets. The program, which has already been adopted by 30 other states, allows individual taxpayers to donate up to $1,700 to a scholarship-granting organization, which can then provide funding for qualifying families' tuition or other education expenses.

However, Hochul will not be able to choose the specific scholarship groups that receive funding or dictate their eligibility criteria. Critics, including the United Federation of Teachers and some Democrats, have expressed concerns over the program's potential impact on local control of public education and its compatibility with federal regulations.