New York joins federal school choice initiative despite traditional Democrat opposition

New York will join 29 other states in opting into the Federal Scholarship Tax Credit (FSTC) program, a federal school choice initiative signed into law in July 2025. Governor Kathy Hochul’s decision marks a shift for a Democratic-led state, following Colorado Governor Jared Polis’ earlier participation in January 2026. The program enables taxpayers to receive a dollar-for-dollar federal income tax credit of up to $1,700 for donations to Scholarship Granting Organizations (SGOs), which distribute funds to families earning up to 300% of their local median income for private tuition, tutoring, or specialized education services. The first round of tax-credited donations will begin on January 1, 2027, after states complete their opt-in process. Hochul’s office confirmed her support for the program while emphasizing a review for potential risks to New York’s education system. U.S. Education Secretary Linda McMahon praised the move on X, calling it a win for students and families across the state. Critics, including New York teacher unions, argue the program could underfund public schools and lack sufficient oversight for private institutions. Supporters, like Tommy Schultz of the American Federation for Children, celebrate the decision as a victory for families seeking alternative education options. The FSTC’s expansion reflects growing bipartisan support for school choice despite traditional Democratic opposition. New York’s participation brings the total number of opt-in states to 30, following months of advocacy from McMahon, who previously dismissed refusals as partisan. The program’s structure allows states to decide independently, with no federal funding required—only tax incentives for donors. Hochul’s decision follows pressure from advocates and aligns with a broader trend of states adopting similar education funding models.