Hochul to Back Trump-Era Tax Credits for School Scholarships, Defying Teachers Unions

New York Governor Kathy Hochul has announced her intention to opt into a federal tax credit program that could make over 2.7 million students in the state eligible for "freedom scholarships." This decision places her at odds with powerful teachers' unions and other public school advocates who argue the program is a ploy to siphon funds from public education.

The Education Freedom Tax Credit, approved by Congress and President Trump, offers a 100% federal tax credit for donations up to $1,700 annually to approved scholarship-granting organizations. These organizations would then provide scholarships to help families cover tuition costs. The governor's office stated that families with incomes up to $500,000 could benefit, and scholarships could also be used by public school students for tutoring, after-school programs, or transportation.

"Governor Hochul’s priority is making sure every student receives an education that best meets their needs, which is why she wants the federal scholarship tax credit to benefit all New York students," said Hochul spokesman Johan Allon. He added that the program has the potential to expand opportunities without diverting resources from public schools or state and local budgets. The governor's office maintains that the program is funded by private donations, not taxpayer money, and therefore does not divert public funds.

However, leaders from the United Federation of Teachers, the American Federation of Teachers, the NAACP, and the NYCLU have voiced strong objections. United Federation of Teachers President Mike Mulgrew called the program "a bad thing for all the children in our state that go to public schools" and criticized the lack of accountability. He led a chant urging Hochul to "Opt-Out!"

Randi Weingarten, president of the American Federation of Teachers, claimed the program aims to "take money out of public schools." Despite opposition from organized labor groups, with whom she has historically aligned, Hochul stated her disagreement on this specific issue. She affirmed her support for the program, citing its potential benefits for all students, both public and private.

The governor's office clarified that the tax credit is not a voucher program. Unlike vouchers, which are typically used for tuition at non-public schools, these federal tax-credit scholarships can be utilized by eligible students in public schools for educational support services.

Backers of the program, such as Sydney Altfield, CEO of the Teach Coalition, argued that the unions' opposition demonstrates a lack of focus on students. "More than two million New York students could benefit without taking a dollar from the state budget. Claims that this would drain public schools are flat-out false — and those repeating them know it," Altfield stated. She emphasized the financial burdens faced by families for educational expenses and suggested the program could alleviate these costs, while opposing unions would leave families to bear the full expense.