Last night at a private event, Governor Kathy Hochul voiced support for opting New York into the federal Education Freedom Tax Credit (EFTC). Under the EFTC, starting on January 1, 2027, eligible individual taxpayers can claim a dollar-for-dollar federal tax credit of up to $1,700 for donations to approved K-12 scholarship-granting organizations (SGOs) like CSF and its partner programs nationwide. While individuals in any state will be able to donate and get the credit, SGOs will only be able to use the contribution for scholarships in a state that has opted in.
After the event, a spokesperson for the Governor released a statement that said, “Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools. Our office awaits information from the federal government on the program and will thoroughly review the details of the policy for poison pills that could harm New York’s education system.”
While not an official opt-in, this is the strongest statement of support for the federal tax credit the Governor has made to date, and we are grateful to her for recognizing that the EFTC would create meaningful educational opportunities for families and children across the Empire State. For example, EFTC scholarships could be used for private school tuition, but could also fund tutoring, after-school programming, and other educational expenses for students attending public and private schools alike.
According to calculations by Democrats for Education Reform, if even 1 percent of New York State taxpayers take advantage of this tax credit, more than $50 million in new private funding could be raised for scholarships — without reducing existing education funding. Our hope is that Governor Hochul will officially opt-in to the tax credit so that EFTC dollars can remain in New York State to help New York families.
If you are so moved, you can thank Governor Hochul for her support of the tax credit and encourage her to make her opt-in official by emailing or calling her office at (518) 474-8390.