New York to Participate in Trump-Era Federal Scholarship Program

New York will participate in a federal tax credit scholarship program championed by former President Donald Trump, Governor Kathy Hochul announced Friday. The decision makes New York the first major Democratic-led state to opt into the program, which aims to provide financial assistance for students to attend private schools or access educational services.

The program, approved by Congress and the Trump administration, offers a 100% federal tax credit for individuals donating up to $1,700 annually to approved scholarship-granting organizations. These organizations then provide scholarships to help defray tuition costs for students attending private schools. Public school students are also eligible for scholarships to cover costs such as tutoring, after-school programs, or transportation.

Governor Hochul stated her decision was contingent on ensuring that all students, including those in public schools, could benefit. "After a careful review of the federal regulations, we believe this program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from our state or local budgets," Hochul said in a statement. "I’m not going to leave money on the table when it could help our kids."

The move has drawn criticism from teachers' unions and other public school advocates, who argue that the program could divert funds from public education. United Federation of Teachers President Mike Mulgrew called the program an attempt by the federal government to intrude into state classrooms.

State Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie also expressed reservations, emphasizing the importance of investing in public schools. "Public dollars should support public schools that serve all children and are accountable to the taxpayers who fund them," Heastie said.

However, Hochul's office clarified that the program is funded by private donations and is distinct from voucher programs. The scholarships can be used by eligible students in public schools for educational support services. Students whose family income is within 300% of the area median income are eligible for scholarships. Hochul asserted that her commitment to public education remains unchanged and highlighted her administration's investments in the sector.

More than 30 states have already joined the program. For private schools in New York, particularly parochial and Jewish schools, participation in the program has been a key policy priority. The New York Catholic Conference and the Teach Coalition have both advocated for the state to opt in.