New York to Participate in Federal Scholarship Tax Credit Program

New York Governor Kathy Hochul announced that the state will participate in the Federal Scholarship Tax Credit program. The decision allows families to access scholarships for tutoring, books, special needs services, after-school programs, computers, internet access, and transportation.

The program is funded through federal tax credits on private charitable donations. It reaches families earning up to 300 percent of the local median income and does not redirect any state education funds.

Scholarships can support students in public, charter, and private schools. Public school budgets remain unchanged because the funding mechanism operates outside state appropriations. 8 percent over the past year, the highest rate since May 2023. Rising costs for groceries, utilities, and housing have increased pressure on household budgets.

3 billion in new tax revenues, and create 16,000 jobs in New York. 66 in tax revenues. Other states are expected to observe New York's implementation of the program.