What is the federal school choice program?

The federal program allows taxpayers to receive a tax credit for donating to organizations that provide scholarships for students to attend private schools or access educational services.

Who is eligible for the scholarships?

Families with incomes up to 300% of the area median income are eligible to receive scholarships through the program.

New York to Participate in Federal School Choice Tax Credit Program

Governor Hochul announced the state will opt into a federal program allowing tax credits for donations to educational scholarship organizations, despite opposition from teachers unions.

2026-10-09 · Updated 2026-10-09

Governor Kathy Hochul announced Friday that New York will participate in a federal "school choice" program, a decision that will enable New York taxpayers to receive a tax credit for donating to educational groups that provide scholarships.

The program, approved by Congress and President Donald Trump last year, allows individuals to receive reimbursements of up to $1,700 and married couples up to $3,400 for donations to "scholarship granting organizations." These organizations can then offer scholarships for students to attend private or religious schools, or for educational services like tutoring and after-school programs.

Teachers unions, including the United Federation of Teachers, have voiced strong opposition, fearing the program will divert funds and students away from public schools. Michael Mulgrew, president of the UFT, criticized the governor's decision, stating that students, educators, and families will ultimately pay the price.

Governor Hochul, however, stated that a review of federal regulations indicates the program can bring millions of dollars to New York students and families without impacting public schools or state and local budgets. She emphasized her commitment to not leaving potential financial aid for children unused.

Families with incomes up to 300% of the area median income are eligible for scholarships. The program is set to take effect in January. The New York State Catholic Conference has applauded the governor's decision, viewing it as a way to empower families to choose the best educational options for their children.

FAQ

What is the federal school choice program?: The federal program allows taxpayers to receive a tax credit for donating to organizations that provide scholarships for students to attend private schools or access educational services.
Who is eligible for the scholarships?: Families with incomes up to 300% of the area median income are eligible to receive scholarships through the program.