Hochul Decides: New York Will Join Federal Scholarship Tax Credit Program Over Union, Legislative Objections
New York Gov. Kathy Hochul has decided to opt the state into a new federal scholarship tax credit program, over the objections of the state teachers union and the leaders of the state Senate and Assembly, her office confirmed in a statement on Oct. 9.
Created by the federal Educational Choice for Children Act, the program takes effect Jan. 1, 2027. Individual taxpayers can claim a nonrefundable federal credit of up to $1,700 for contributions to qualifying nonprofit scholarship-granting organizations, with up to $10 billion available nationally per year. States participate only if their governor opts in and submits a list of eligible organizations to the IRS. Scholarships are expected to flow mainly to private-school students, but public-school students can also use the funds for tutoring, after-school programs and technology. The Joint Committee on Taxation projects $500 million in credits claimed in the first year, rising to $4.4 billion by 2034.
Hochul said New York would participate only if all schools and students, including those in public schools, could benefit, and that after a careful review of the federal regulations the state believes the program can bring millions of additional dollars to New York students without taking money from public schools or state and local budgets. She said business leaders have committed to use the program to support public-school students.
The state teachers union says it will keep working to repeal the program, setting up a continuing fight over school choice in New York.
Sources: CNHI News; South Shore Press
Published by GSM · USA (original Chinese edition)
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