Hochul opts New York into federal education tax-credit program
Governor Kathy Hochul announced she will opt New York into the federal Education Freedom Tax Credit, making over 2.7 million public, parochial and private school students eligible for scholarships funded by private donations. The federal credit gives donors a 100% tax credit for contributions up to $1,700 annually to approved scholarship-granting organizations, and scholarships can cover tuition, tutoring, after-school programs or transportation. Unions and civil rights groups argue the plan diverts support from public schools, while the governor and backers say donations, not state funds, will fund the program and expand student options.
New York will opt into a federal scholarship tax-credit program.
Context
Congress and the president approved the federal tax-credit law last year. The law lets governors opt states into the program. New York's choice could lead to implementation rules and legal or political challenges next.
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