New York Governor Kathy Hochul opted the state into the federal Education Freedom Tax Credit, making New York the 31st state to join the first nationwide school choice program. Despite opposition from the Democratic leaders of both legislative chambers, she said the program would benefit all schools and students, including those in public schools, and added that she would not leave money on the table. Beginning January 1, 2027, taxpayers can claim up to $1,700 annually, or $3,400 for married couples filing jointly, for donations to approved scholarship-granting organizations. More than 2.7 million New York students could qualify, with the program projected to generate $1.5 billion annually if one-third of eligible taxpayers participate, while the U.S. Treasury forecasts nearly $26 billion in annual donations by 2030.
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