Gov. Kathy Hochul is officially opting the state of New York in on the federal education tax credit, also known as the “federal scholarship tax credit.”

The Internal Revenue Service issued proposed regulations in how the credit will be run.

The program gives dollar-for-dollar credit for individual taxpayers who want to offset their federal tax burden by up to $1,700 and $3,400 for married couples filing jointly to a Scholarship Granting Organization (SGO).

That organization will then donate the money to qualifying families to pay for private or religious school tuition for K-12 schools.

Public school parents can also use the money for after school tutoring.

In a statement, Hochul said in part:

“Every parent wants their child to have a great education and the best possible chance to succeed. That’s what guides my decisions as Governor. New York’s public schools are the backbone of communities across this state. That’s why I’ve made historic investments in public education, increasing school funding by more than $10 billion and fully funding Foundation Aid for the first time. I’ve been clear from the start that New York would participate in the federal scholarship tax credit program if, and only if, all schools and students, including those in our public schools, could benefit. After a careful review of the federal regulations, we believe this program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from public schools or our state or local budgets. I’m not going to leave money on the table when it could help our kids. That’s why I have also been directly engaging with business leaders, who have committed to use this program to support public school students and their academic needs. I look forward to working with education leaders across the state to make sure these resources reach students in every community. My commitment to public education has not changed, and it never will.”

The governor’s decision is a departure from both leaders in the state legislature.

Prior to Hochul’s decision, State Senate Majority Leader Andrea Stewart-Cousins voiced apprehension to the proposal, saying in part:

“I am apprehensive about this federal proposal and have serious reservations about the potential impact it could have on public schools across New York State. New York should not opt in to this program. The regulations announced… would undercut New York’s ability to establish meaningful guardrails, leaving the state with little control over which schools and expenses qualify or how this funding is used, and would allow those dollars to potentially flow to schools out of the state. We have finally been able to fully fund our schools after years of neglect and lawsuits. New York should remain focused on strengthening the public school systems and improving educational outcomes for all students. We have an obligation to every student in New York State to make sure they have access to a quality education, and that means continuing to invest in the public schools that serve students in every community across our state.”

In a statement, Assembly Speaker Carl Heastie said in part:

“The Assembly Majority will always prioritize quality education for New York’s students and ensure that public schools are fully funded. Public dollars should support public schools that serve all children and are accountable to the taxpayers who fund them. New York should opt out of the federal voucher program and continue investing in the public schools that educate the overwhelming majority of our children.”

The New York State United Teachers Union expressed disappointment in Hochul’s decision calling it “President Trump’s private-school voucher program.”

“New York’s education and civil rights communities have been unequivocal about the threat this program poses to the public schools that serve 90 percent of our state’s children,” said Melinda Person, president of NYSUT. “Gov. Hochul has made an initial decision, but this fight is far from over. NYSUT and our allies will continue working to repeal this program at the federal level and will not allow the consequences for New York’s students, educators and public schools to go unanswered.”

The New York Catholic Conference is voicing its support for Hochul’s decision. On its website releasing a statement saying in part:

“These SGOs help families of children in public, religious, independent, and charter schools with expenses such as tuition, after-school enrichment programs, tutoring, special needs services, transportation, uniforms, books and supplies, and equipment.”

There is a 60-day comment period and a public hearing scheduled for Dec. 15 on this proposed rule, which is anticipated to be implemented Jan. 1, 2027.