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 scholarships under this program?

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

New York to Participate in Federal School Choice Tax Credit Program

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

2026-10-09 · Updated 2026-10-09

Governor Kathy Hochul has announced that New York will participate in a federal "school choice" program, allowing state taxpayers to receive a tax credit for donating to organizations that provide educational scholarships. This decision comes despite objections from teachers unions, who have expressed concerns that the program could divert funds and students away from public schools.

The program, approved by Congress and President Donald Trump last year, enables 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 to students for private or religious schools, or for educational services like tutoring and after-school programs. Families with incomes up to 300% of the area median income are eligible to receive these scholarships.

Governor Hochul stated that after a thorough review of federal regulations, she believes the program can provide millions of dollars to New York students and families without impacting public schools or state and local budgets. She emphasized her commitment to not missing out on potential benefits for children.

However, the move has drawn criticism from various groups. Michael Mulgrew, president of the United Federation of Teachers, accused the governor of a "failure of leadership." The NAACP also opposed the program, arguing it could exacerbate educational inequities and segregation by encouraging wealthier families to leave public schools.

Despite opposition from legislative leaders and unions, Governor Hochul finalized her decision after the federal government issued detailed regulations. The New York State Catholic Conference, including Archbishop Ronald Hicks, applauded the decision, stating it empowers families to choose the best education for their children regardless of income or school type, at no additional cost to the state. The tax credit program is set to take effect in January.

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 scholarships under this program?: Families with incomes up to 300% of the area median income are eligible to receive scholarships through participating organizations.