Nearly 52 million students across the United States could be eligible for federal "freedom" scholarships under the "Education Freedom Tax Credit" program, according to a report released Tuesday. More than 2.7 million of these potentially eligible students are in New York state.
Thirty-one states have opted into the program, which allows individual taxpayers to donate to nonprofit scholarship-granting organizations and receive a dollar-for-dollar federal tax credit of up to $1,700 annually. These donations then fund scholarships for students.
New York Governor Kathy Hochul, a Democrat, has opted into the program. A spokesperson for the governor stated that Hochul is supportive of the credit and its potential to help New York students and schools, adding that her office would thoroughly review the federal program's details.
Students in public, private, or charter schools can qualify for the funding. Private school students, including those in Catholic schools and yeshivas, can use the scholarships to cover tuition costs. Public school students may use the funds for tutoring, after-school programs, or transportation. The American Federation for Children, which analyzed the program, noted that about 90% of students would qualify, as eligibility extends to households earning up to 300% of area median income.
While many states have opted in, most Democratic states, including California, have not yet joined the program. California has nearly 6 million students who would potentially benefit. Approximately 21 million students are in states that have not yet signed up for the program, which is slated to begin next year.
Opposition to the program comes from some teachers unions, including the New York State United Teachers (NYSUT). NYSUT argues that the tax credit functions as a privatization or "voucher" scheme that could divert funding from public schools. The union also contends that the income eligibility criteria make it more of a tax break for the wealthy than a program for struggling families, citing data from other states with similar voucher programs.
Tommy Schultz, CEO of the American Federation for Children, urged all governors to opt into the program to ensure maximum benefit for students and families nationwide.