Hochul opts New York into federal scholarship tax credit programme despite union opposition

Right · 2New York Gov. Kathy Hochul announced on Friday 9 October that the state will opt into the federal Education Freedom Tax Credit scholarship programme, backed by President Donald Trump, for the next school year. 1 2 Right · 2The programme gives individuals a federal tax credit for donations of up to $1,700 a year to approved scholarship-granting organisations, which then offer scholarships to students. 1 2 Right · 1The Post reports scholarships can help families of private-school students with tuition, while public school students can use them for tutoring, after-school programmes or transportation; eligibility extends to families with income within 300% of area median income. 1

Right · 2Governors must decide whether to opt in; the Post says 30 mostly Republican-led states have joined, making Hochul the most prominent Democratic governor from a large blue state to do so, while Fox News says Kentucky joined after its legislature overrode Gov. Andy Beshear's veto. 1 2 Right · 2The Treasury Department and IRS issued proposed regulations on 1 October, which Hochul said she reviewed before deciding. 2 1 Right · 1Hochul said she had always conditioned participation on all schools and students, including public schools, being able to benefit, and that the programme would bring millions of dollars without taking money from state or local budgets; her office said the only cost is forgone federal tax revenue. 1

Right · 2Hochul also pointed to having raised school funding by more than $10 billion and fully funded Foundation Aid, and said her commitment to public education has not changed; in Fox's account she added that she has been engaging business leaders who committed to use the programme to support public school students. 1 2 Right · 2Teachers' unions and public school advocates including the NAACP and NYCLU oppose the move, calling the programme a back-door privatisation scheme; a coalition launched a petition urging Hochul to reject it, and UFT President Mike Mulgrew said it was about "the federal government worming its way into classrooms". 1 2 Right · 1Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, both Democrats, also opposed participation this week, with Stewart-Cousins citing serious reservations and Heastie saying public dollars should support public schools. 1

Right · 2Backers include the Teach Coalition for Jewish schools and the New York Catholic Conference, for whom opting in was a top priority; Teach Coalition CEO Sydney Altfield called it "a tremendous day for New Yorkers". 1 2 Right · 2Hochul, who is seeking re-election and is backed by the teachers' unions, said she disagrees with her labour allies on the merits; the petition text cited by Fox says she plans to opt in starting in 2027. 1 2