Updated
Updated · Bloomberg · May 8
Kathy Hochul joins Trump's federal school choice program
Updated
Updated · Bloomberg · May 8

Kathy Hochul joins Trump's federal school choice program

10 articles · Updated · Bloomberg · May 8
  • New York becomes the 30th state to opt in, with individuals able to redirect up to $1,700 in federal taxes to scholarship nonprofits.
  • Hochul is among few Democratic governors backing the initiative, which supports eligible students' qualified educational expenses through the first federal school choice tax credit.
  • The move aligns New York with a controversial programme associated with private education funding and could channel significant scholarship money in a state facing education performance concerns.
With a federal repeal looming, what is the future for New York's new school choice program?
Will New York's new school choice program raise academic standards or create deeper divisions?
Can private donations improve public schools more effectively than direct government funding?

Governor Hochul Opts New York into EFTC, Unlocking Billions for School Choice Scholarships

Overview

On May 8, 2026, Governor Kathy Hochul announced that New York will join the federal Education Freedom Tax Credit (EFTC) program starting in 2027, making it the 30th state and only the second led by a Democratic governor to participate. This decision aims to keep an estimated $2.37 billion in charitable education donations within New York, expanding scholarship opportunities for families, especially those with moderate incomes. While school choice advocates praised the move, public school supporters raised concerns about potential enrollment declines and equity challenges. The state must also balance EFTC with ongoing investments in universal Pre-K and childcare. New York’s entry marks a significant moment in the national school choice debate.

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