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Hochul Faces Push on Education Freedom Tax Credit

Hochul Faces Push on Education Freedom Tax Credit

A parent coalition is urging Gov. Kathy Hochul to back the Education Freedom Tax Credit, which could make more than 2.7 million New York students eligible for scholarships.

Gov. Kathy Hochul is facing a fresh Education Freedom Tax Credit push as a parent coalition launches a statewide ad campaign urging New York to join the federal school scholarship program. The effort is aimed at making more than 2.7 million students in the Empire State eligible for so-called freedom scholarships.

The coalition, Scholarships for All NY, also known as Teach Coalition, represents Jewish and Catholic schools and includes public school families. It is running a six-figure advertising campaign in digital and print outlets across the state to counter pressure from the New York State United Teachers union, which has been urging Hochul to reverse course. Teach Coalition leader Sydney Altfield said the group is united around one goal: getting the governor to opt into the tax-credit program once federal rules are finalized.

Altfield said the coalition includes public school parents, nonpublic school parents, charter school advocates, businesses, community leaders and faith groups from around New York. Dennis Poust, executive director of the New York State Catholic Conference, said the campaign is meant to give Hochul “air support” as she weighs participation. A Queens public school parent, Lihua Li, said the scholarship effort could help cover after-school care so working parents have a safe place for their children until pickup time.

The program at the center of the fight was passed by Congress and signed by President Trump as part of the One Big Beautiful Bill Act. According to the US Department of Education, it offers a 100% federal tax credit for donations of up to $1,700 a year to approved scholarship-granting groups. Those nonprofits would then distribute scholarships that parochial school students could use toward tuition, while public school students could use them for tutoring, after-school programs or transportation.

Supporters say the idea is already underway in 31 states, covering 31 million students, including the 2.7 million students in New York. They argue the state should not leave federal education dollars unused and say the program can widen access to learning options for families that need help paying for services outside the traditional classroom.

NYSUT is taking the opposite view through its own coalition, New Yorkers for Public Schools. The union says the tax credit is really a voucher-style move that would push money away from public schools and toward private tuition. Its sample letter warns that the program could defund public schools, which it says educate 90 percent of New York children and serve as centers of their communities.

Hochul’s office has said the governor supports the federal tax credit scholarship and its potential to help New York students and schools. A spokesperson said the administration is waiting for federal details and will review the policy carefully for any provisions that could harm the state’s education system. The governor, a Democrat, is seeking re-election this fall to a second four-year term.

The fight over the Education Freedom Tax Credit now lands in the middle of a larger state debate over school choice, public education funding and how much say families should have in directing education dollars. For New York parents watching this closely, the next step is whether Hochul formally opts in once Washington finalizes the rules — a decision that could shape how millions of students access support.

Frequently asked questions

What is the Education Freedom Tax Credit?
It is a federal tax-credit program that gives a 100% credit for donations up to $1,700 to approved scholarship groups.
Who is pushing Hochul to opt in?
Scholarships for All NY, also known as Teach Coalition, is running ads urging the governor to participate.
Why does the teachers’ union oppose it?
NYSUT says the program would act like a voucher scheme and could draw support away from public schools.
What has Hochul said about the program?
A Hochul spokesperson said the governor supports the scholarship program and is waiting for federal details before moving ahead.
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