Nearly 52 million students attending public, private and charter schools across the United States could qualify for new federal “freedom” scholarships, according to a report released Tuesday. The total includes more than 2.7 million students in New York state.
The report breaks down, state by state, how many students would be eligible for funding through the proposed “Education Freedom Tax Credit.”
So far, 31 states representing roughly 31 million students have opted into the program, with New York among them. The move has drawn criticism from teachers unions, which argue the tax credit amounts to a privatization effort or voucher-style plan that could pull students away from public schools.
Many Democratic-led states have not joined the program, including California, where nearly 6 million students could potentially benefit, according to an analysis by the school choice advocacy group American Federation for Children.
In all, nearly 21 million students live in states that have not signed on to the program, which is scheduled to begin next year.
For students enrolled in private schools, including Catholic schools and yeshivas, the scholarships could be used to help offset tuition costs.
Supporters say public school students would also be able to use the scholarships for services such as tutoring, after-school programs or transportation expenses.
Under the law, each state’s governor must formally opt in before students can receive the 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.