Nearly 52 million students nationwide in public, private or charter schools could be eligible for federal “freedom” scholarships, including more than 2.7 million students in New York state, according to a new report released Tuesday.
The students in each state who would qualify for the funding under the “Education Freedom Tax Credit.”
Thirty-one states, covering 31 million students, have opted into the program, including New York — despite opposition from teachers unions, which claim the tax credit is a privatization or “voucher” scheme that will spur an exodus from public schools.
Most Democratic states have yet to opt into the program, including California, where nearly 6 million students would benefit, said school choice group the American Federation for Children in its analysis.
Nearly 21 million students are in states that have not signed up for the program that kicks in next year.
The scholarships for private school students in Catholic schools and yeshivas can be used to defray tuition costs.
Public school students can use the scholarships for tutoring, after-school programs or to cover transportation costs, advocates said.
Under the law, governors from each state have to “opt-in” for students to obtain financial scholarships.
It was the top priority of the New York State Catholic Conference and the Teach NY Coalition/Orthodox Union, which advocate for yeshivas or Jewish schools.
For example, such donations could go to the Inner-City Scholarship Fund, which provides financial aid to students who enroll in Catholic schools run by the Archdiocese of New York.
New York Gov. Kathy Hochul, a Democrat seeking re-election to a second term this fall, opted into the program.
California Gov. Gavin Newsom, considered a Democratic contender for president in 2028, has not opted in, as of yet, the report noted.
“Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools,” a Hochul spokesperson said Tuesday.
“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.”
Under the program included in the Republican-led budget bill approved by President Trump last year, individual taxpayers make donations to nonprofit scholarship-granting organizations and receive a dollar-for-dollar federal tax credit of up to $1,700 per year.
The groups then use the donations to provide financial aid to students.
Tommy Schultz, CEO of the American Federation for Children, said “every governor needs to opt in so that all of them can benefit.”
“For governors and states who have taken swift action to opt in, thank you, and for governors still considering opting in, what are you waiting for?” Schultz said.
“Children and families in your states, by the millions, are waiting for the educational resources that will support them through the tax credit,” he went on. “This is a no-brainer, and we at AFC are seeking to ensure the EFTC reaches as many families as possible, as soon as possible.”
The AFC analysis said about 90% of students would be qualify for the program since households earning up to 300% of area income are eligible.
The influential New York State United Teachers union claims the tax credit scholarship will hurt public schools.
“A school voucher redirects public tax dollars to pay for private school tuition. The branding varies — Education Savings Accounts,’tax credit scholarships,’ `school choice’ — but the mechanism is always the same: public money flowing to private schools, draining funding from the public schools that serve 90% of America’s children,” NYSUT said in a recent statement.
“When a student leaves with a voucher, the public school loses the full per-pupil funding — but its fixed costs don’t shrink with one fewer student.”
NYSUT also said having families earning up to 300% of area median income — more than $500,000 in parts of New York — is a gift to the well-to-do, not a targeted program for struggling parents.
The generous income criteria make is “less an education program than a tax break for the wealthy.
The data from states with voucher programs bears this out,” NYSUT said.
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