{"id":369620,"date":"2026-10-10T04:38:40","date_gmt":"2026-10-10T04:38:40","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/369620\/"},"modified":"2026-10-10T04:38:40","modified_gmt":"2026-10-10T04:38:40","slug":"hochul-opts-new-york-into-trump-backed-federal-school-choice-tax-credit-program","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/369620\/","title":{"rendered":"Hochul opts New York into Trump-backed federal school choice tax credit program"},"content":{"rendered":"<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Did you know search engines like Google are changing the way you see news? Keep Chalkbeat\u2019s valuable education coverage at the top of your feeds by <a href=\"https:\/\/www.google.com\/preferences\/source?q=chalkbeat.org\" rel=\"nofollow noopener\" target=\"_blank\">clicking here<\/a> and checking the box next to our name.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">New York will participate in the new federal scholarship tax credit in hopes of generating millions in new dollars for public school students, Gov. Kathy Hochul said Friday.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Hochul becomes the second Democrat \u2014 following Colorado Gov. Jared Polis \u2014 to voluntarily opt their state into the program, which passed last year as part of the One Big Beautiful Bill Act backed by President Donald Trump. The program, designed primarily to expand private school choice in states without vouchers, also provides avenues to raise money for public school students. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Hochul had already indicated she intended to opt in, but previously said she was waiting for Treasury Department rules to ensure there was no \u201cpoison pill\u201d in the program. Those rules, released last week, leave many questions unanswered, but they do lay out ways public school students can benefit, in particular for tutoring.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">\u201cAfter 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,\u201d Hochul said in a <a href=\"https:\/\/www.governor.ny.gov\/news\/statement-governor-kathy-hochul-180\" rel=\"nofollow noopener\" target=\"_blank\">statement<\/a>. \u201cI\u2019m not going to leave money on the table when it could help our kids.\u201d <\/p>\n<p>We&#8217;re on a need-to-know basis.<\/p>\n<p>Every weekday morning, Chalkbeat New York is bringing thousands of subscribers the news on public schools and education policy that they need to start their day. Sign up for our free newsletter to join them.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">People from across the political spectrum were closely watching for Hochul\u2019s decision. School choice advocates have hoped that Hochul, more so than Polis, can provide both political cover for and political pressure on <a href=\"https:\/\/www.chalkbeat.org\/2026\/10\/02\/federal-education-tax-credits-rules-pose-test-for-democratic-governors\/\" rel=\"nofollow noopener\" target=\"_blank\">other Democratic governors who are on the fence<\/a>. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">According to an IRS tracker, <a href=\"https:\/\/www.irs.gov\/government-entities\/federal-state-local-governments\/federal-scholarship-tax-credit-fstc\" rel=\"nofollow noopener\" target=\"_blank\">30 other states have opted in<\/a>. In Kentucky, North Carolina, and Kansas, Republican legislatures overrode the vetoes of Democratic governors to opt in, while other Democratic governors have said they won\u2019t participate or that they\u2019re still reviewing the rules.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">The program fulfills a longtime goal of school choice supporters who wanted to use federal taxpayer dollars to help expand families\u2019 options, even in states that are hostile to vouchers. Conservative backers of the policy have been joined by some Democrats, particularly those who supported previous iterations of education reform and public school choice. They say the policy will help families, particularly lower-income Black and Latino families, whose children attend schools that don\u2019t produce strong academic outcomes.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Starting Jan. 1, individual taxpayers can donate up to $1,700 to a scholarship-granting organization and get a dollar-for-dollar tax rebate from the federal government. Those organizations will then give the money to qualifying families for tuition or other education expenses. Anyone in any state can donate, but for students to benefit, governors of their states have to opt in on an annual basis and allow scholarship groups to operate.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Hochul will not be able to pick which groups can or can\u2019t receive the funding, or prevent scholarship groups from discriminating on the basis of religion or LGBTQ status. Nor can she require that the scholarships can only benefit students from low-income backgrounds. Families earning up to 300% of area median income qualify to participate.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Groups on both sides of the issue had ramped up pressure on the governor in recent weeks. A coalition of <a href=\"https:\/\/www.chalkbeat.org\/newyork\/2026\/09\/16\/hochul-federal-school-choice-tax-credit-unions-opt-out\/\" rel=\"nofollow noopener\" target=\"_blank\">civil rights groups and union officials urged her to opt out<\/a>, while leaders of school choice groups and religious schools encouraged Hochul to make her earlier embrace of the program official. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">The reactions to her decision were correspondingly pointed. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">\u201cGiving up local control of public education to the federal government through the Trump administration\u2019s private school voucher scheme is a failure of leadership,\u201d United Federation of Teachers President Michael Mulgrew said in a statement. \u201cGov. Hochul will bear the responsibility, but our students, educators, and families will bear the price.\u201d<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Union officials previously indicated that they would not drop their support of Hochul\u2019s November reelection bid if she opted in. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Some supporters of the governor\u2019s decision emphasized that the program <a href=\"https:\/\/www.chalkbeat.org\/2026\/09\/30\/how-school-choice-federal-tax-credits-could-help-students-in-public-schools\/\" rel=\"nofollow noopener\" target=\"_blank\">could benefit public school students<\/a>, though the logistics and <a href=\"https:\/\/fordhaminstitute.org\/national\/commentary\/one-detail-fstc-proposed-regs-will-reduce-participation-public-schools\" rel=\"nofollow noopener\" target=\"_blank\">how much money could be raised remain unclear<\/a>.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">\u201cA student in the Bronx can get the speech therapy or counseling her school can\u2019t afford to provide,\u201d said Nicole Pollock, president of Democrats for Education Reform. \u201cNow the work starts to get these dollars to the families who need them.\u201d<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Groups representing <a href=\"https:\/\/www.jta.org\/2025\/07\/09\/united-states\/jewish-schools-and-their-families-poised-for-windfall-under-new-federal-tax-credit-program\" rel=\"nofollow noopener\" target=\"_blank\">families whose children attend religious schools<\/a> have been especially eager for New York to opt in.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">In a letter to Hochul posted Friday by the New York State Catholic Conference, several bishops <a href=\"https:\/\/www.nyscatholic.org\/posts\/empowering-new-york-families-nys-bishops-statement-governor-hochul-opting-federal-scholarship-tax-credit\" rel=\"nofollow noopener\" target=\"_blank\">thanked Hochul for opting in<\/a>. <\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">\u201cRather than sending this money out of state, she has chosen to keep it in New York to help New York\u2019s kids,\u201d they wrote. \u201cWhile such a decision is common sense from a policy perspective, it nevertheless required political courage and will.\u201d<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">National reporter Lily Altavena contributed to this story.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Erica Meltzer is Chalkbeat\u2019s national editor based in Colorado. Contact Erica at <a href=\"https:\/\/www.chalkbeat.org\/2026\/10\/09\/ny-gov-hochul-opts-into-federal-scholarship-tax-credit\/mailto:emeltzer@chalkbeat.org\" rel=\"nofollow noopener\" target=\"_blank\">emeltzer@chalkbeat.org<\/a>.<\/p>\n<p class=\"default__StyledText-sc-1px4eze-0 egVxCn body-paragraph\">Alex Zimmerman is a senior reporter for Chalkbeat New York, covering NYC public schools. Contact Alex at <a href=\"https:\/\/www.chalkbeat.org\/2026\/10\/09\/ny-gov-hochul-opts-into-federal-scholarship-tax-credit\/mailto:azimmerman@chalkbeat.org\" rel=\"nofollow noopener\" target=\"_blank\">azimmerman@chalkbeat.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Did you know search engines like Google are changing the way you see news? Keep Chalkbeat\u2019s valuable education&hellip;\n","protected":false},"author":2,"featured_media":369621,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[4146,9,136434,11,10],"class_list":["post-369620","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-chalkbeat","tag-new-york","tag-new-york-governor-hochul-and-rep-ocasio-cortez-highlight-the-states-data-center-moratorium","tag-new-york-headlines","tag-new-york-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/369620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=369620"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/369620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/369621"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=369620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=369620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=369620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}