New York's teachers' unions are actively campaigning against a federal tax-credit program designed to increase educational affordability for low- and middle-income families. The unions are employing tactics such as newspaper and TV advertisements, along with a dedicated website, to pressure Governor Kathy Hochul into rejecting the program, which she has expressed intentions to join.
Publicly, the unions have characterized the program as a "voucher scheme" that could siphon funds from public schools. However, proponents argue these claims are inaccurate. The federal program, established by the One Big Beautiful Bill Act, offers taxpayers a credit of up to $1,700 for donating to nonprofit scholarship-granting organizations. These organizations would then use the funds to support K-12 educational needs for eligible students in states that opt into the program.
According to the New York Post, the program's funding comes entirely from the federal government, requiring no matching state or local funds. This structure means it would not impact New York's annual K-12 education budget of approximately $40 billion, nor the New York City Department of Education's $38.6 billion operating budget. The article notes that per-pupil spending in New York City has risen significantly in recent years, even as enrollment has declined.
The unions' campaign suggests the program could reduce public school enrollment, thereby decreasing school funding. This argument is contrasted with their recent support for a state law that mandates a minimum 2% increase for all school districts, irrespective of enrollment levels. Federal scholarship money under the program could also be used by public school students for services such as after-school programs and tutoring.
Eligibility requirements for the federal program are described as generous, with an estimated 2.7 million New York students qualifying, primarily from low- and middle-income families. Many of these students attend public schools, positioning them as potential major beneficiaries of the program. For families seeking alternatives to traditional public schools, the scholarships could offer financial relief for private or religious educational settings.
Nationwide, teachers' unions are reportedly urging Democratic governors to refrain from opting into this program, a strategy that has led to only one governor, Colorado's Jared Polis, signing on so far. The New York union campaign is seen by some as a proxy battle for similar initiatives in other states. If Governor Hochul rejects the program, it could influence other Democratic governors' decisions.
Despite the union's opposition, New York taxpayers can still claim the federal tax credit by donating to scholarship organizations in states that have joined the program. Democrats for Education Reform estimate that this could divert over $1 billion out of New York to support students in other states. This scenario, coupled with existing school-choice initiatives, could encourage more families to leave New York for states with different educational systems.
Governor Hochul has previously indicated her intention to opt New York into the program, citing the importance of retaining residents and supporting the state's economy and tax base. The article suggests that rejecting a potential source of funding for students in need would be ill-advised, particularly as New York City faces budget challenges. The authors, fellows at the Manhattan Institute, argue that New York's students and families deserve access to the educational affordability the unions are working to deny them.