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Governor Hochul backs federal tax credit for private school scholarships despite union pushback

Governor Kathy Hochul announced plans to join a federal tax-credit program that helps families fund private-school tuition, drawing criticism from the New York State United Teachers.

In May, Governor Kathy Hochul revealed her intent to enroll New York State in a federal tax-credit scheme that offers donors a credit of up to $1,700 for contributions to Scholarship Granting Organizations, which then provide tuition assistance, tutoring or other educational costs to families earning up to 300 percent of the area’s median income. The New York State United Teachers, led by President Melinda Person, condemned the plan as a use of taxpayer money to support private-school education and warned it could fragment a pluralistic democracy.

Hochul’s move places her among a small group of Democratic governors supporting the initiative. Supporters argue the credit will not siphon funds from public schools, which are already facing enrollment declines, and could generate between $50 million and $760 million in private-school aid for New York families. The state currently has over 417,000 private-school students, with the largest shares in Jewish and Catholic schools. Critics maintain the policy favors private interests over a public-school monopoly, while advocates view it as a pro-family, pro-religious-freedom measure.

Why it matters

The decision could shape how New York families finance private education and influence the balance between public and private schooling.

In this story

tax creditprivate school scholarshipsNew Yorkunion oppositionpublic educationreligious libertyScholarship Granting Organizationsfamily affordability
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