New York Governor Kathy Hochul opts into federal school choice program

New York Governor Kathy Hochul has announced that the state will participate in the Education Freedom Tax Credit (EFTC), a nationwide federal school choice program established by the One Big Beautiful Bill Act. This decision makes New York the 31st state to join the program and only the second to be led by a Democratic governor, following Colorado.

Under the program, which is set to begin on January 1, 2027, eligible taxpayers can claim a federal income tax credit of up to $1,700 for individual donations, or up to $3,400 for married couples, to qualifying scholarship-granting organizations. These organizations distribute funds to eligible public and private school students for tuition, tutoring, and other educational expenses. Because the program utilizes federal tax credits, it does not require state budget allocations.

Hochul’s decision faced opposition from top Democratic leaders in the New York legislature, including Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins, who expressed concerns regarding state control and the potential undercutting of public school investment. Commentators have suggested that Illinois Governor JB Pritzker could follow New York’s lead to make similar federal benefits available to Illinois residents.