Governor Kathy Hochul just broke with her own party to give New York families access to a federal scholarship tax credit — and the teachers union that funds Albany Democrats wants it dead.
The program, created by President Trump's One Big Beautiful Bill Act, lets taxpayers donate to scholarship-granting organizations in exchange for a dollar-for-dollar federal income-tax credit of up to $1,700, or $3,400 for married couples filing jointly. It doesn't draw on state budgets. It doesn't cut public school funding. But the New York State United Teachers — the state's largest teachers union — still calls it "President Trump's private-school voucher program" and pressured Hochul for weeks to reject it.
Hochul opted in anyway. "I'm not going to leave money on the table when it could help our kids," she said in her Oct. 9 announcement, per Fortune. She is only the second Democratic governor to join, after Colorado's Jared Polis.
The union's objection? Income limits that reach roughly $309,000 in the Bronx and $510,000 in Westchester County, per the Manhattan Institute's City Journal, which NYSUT says makes this a tax break for the wealthy rather than an education program. More than 2.7 million New York students could qualify. Beatriz Beckford of MomsRising complained the program "takes federal tax money, which belongs to all of us, and hands it to private schools with no rules about who they must admit."
Albany's Democratic leadership lined up behind the union. Assembly Speaker Carl Heastie said New York should "opt out" and "continue investing in the public schools that educate the overwhelming majority of our children." Senate Majority Leader Andrea Stewart-Cousins warned the federal rules "would undercut New York's ability to establish meaningful guardrails."
Here's what the union-backed establishment doesn't want to discuss: the system they're protecting is failing the kids who can least afford it. According to AM New York, just 43 percent of economically disadvantaged students scored proficient on the 2026 state English Language Arts exam, compared with 72 percent of students who were not — a 29-point gap. In math, it was 51 percent versus 77 percent. Parents who can afford it already pay out-of-pocket for tutoring and enrichment. Parents who can't are told to wait for the same system that produced those numbers to fix itself.
The scholarship program doesn't require a child to leave public school. Students can remain enrolled and use scholarship funds for tutoring, special education services, books, and technology. Private and religious school tuition also qualifies. The credit reduces federal tax revenue — Fortune notes the One Big Beautiful Bill Act carries a projected $3.4 trillion hit to the national debt — but it doesn't touch state or city education budgets. The Scholarships for All New Yorkers coalition projects the program could generate $1.5 billion a year for New York students if a third of eligible taxpayers participate.
Supporters include Catholic and Orthodox Jewish school advocates and Democrats for Education Reform. The timing isn't accidental: Hochul faces Republican Bruce Blakeman in November, and Blakeman had criticized her for not opting in sooner.
The question isn't whether this program is perfect. It's whether a union that has presided over decades of failure gets to veto every alternative — and whether Albany will keep letting it.







