Hochul Joins Trump's School Choice Program Despite Union Opposition

New York Gov. Kathy Hochul signed the state into President Donald Trump's Education Freedom Tax Credit program on Friday, becoming one of the latest governors to formally opt in despite sustained opposition from teachers unions and public school advocates who view the initiative as a threat to traditional public education funding.

The program, also called the Federal Scholarship Tax Credit, allows individual taxpayers to receive up to a $1,700 dollar-for-dollar federal tax credit for donations made to nonprofit scholarship-granting organizations. These organizations then distribute funds to students for tutoring, after-school programs, and other educational needs. Unlike traditional voucher systems that draw directly from state or municipal education budgets, the tax credit model redirects a portion of federal tax liability toward private scholarship funding. The Treasury Department and IRS issued proposed regulations on October 1 to implement the framework nationwide, and state governors must formally opt in for their residents to participate. New York's participation is set to begin in 2027.

Hochul framed her decision as consistent with her commitment to public education. She stated that she would only participate if all schools and students, including those in public systems, could benefit from the program. After reviewing the federal regulations, she concluded the initiative could bring millions of additional dollars to New York students and families without reducing public school funding or drawing from state and local budgets. She emphasized that business leaders had committed to using the program to support public school students specifically. "I'm not going to leave money on the table when it could help our kids," she said, adding that her commitment to public education remained unchanged.

Hochul's announcement highlighted her record of increased school funding, noting she had raised education spending by more than $10 billion and fully funded Foundation Aid for the first time. She stressed that New York's public schools form the backbone of communities across the state.

Teachers unions and public school advocates launched a petition demanding Hochul reject the program, arguing that most New Yorkers were unaware of it or its potential effects. The petition contended that tax dollars would effectively subsidize private tuition for families who had never used public schools. Major labor groups remained staunchly opposed to the initiative, viewing it as a threat to the public education system and union interests.

Sydney Altfield, founder of Scholarships for All and CEO of Teach Coalition, praised the decision as a tremendous day for New Yorkers, saying millions of children would gain access to scholarships for educational support. She characterized Hochul as keeping her promise to families by putting money back in parents' pockets while expanding educational opportunities.

Hochul's move reflects a broader shift among Democratic leaders on school choice. For decades, the issue remained politically toxic for Democrats, who argued that choice models weakened public schools and undermined unions. However, the COVID-19 pandemic accelerated parent demand for alternative education options—charter schools, private schooling, and homeschooling—prompting some prominent Democrats to reconsider their positions. Major blue-city school districts have struggled to retain students since the pandemic ended.

More than half of U.S. states have already joined Trump's program. Kentucky formally entered after its state legislature overrode Gov. Andy Beshear's veto of opt-in legislation. Education Secretary Linda McMahon suggested that some Democratic leaders had resisted the program simply because it bore Trump's name. Officials indicated that competitive pressure would likely push additional blue states to participate as federal scholarship dollars become available and neighboring states capture private donations.