New York Gov. Hochul announces opt-in to Federal Scholarship Tax Credit (FSTC / ECCA)

On May 8, 2026, New York Governor Kathy Hochul announced that New York intends to opt into the federal Scholarship Tax Credit (FSTC) — the program known to Congress as the Educational Choice for Children Act (ECCA) and codified at IRC §25F. Hochul disclosed the plan at a private gathering with Agudath Israel of America and incorporated it into her FY2027 executive budget proposal. A spokesperson for the governor confirmed the plan to Jewish Insider, saying Hochul told Jewish leaders she will opt in.

The announcement is not the same as formal certification. Hochul's office told Chalkbeat New York that it “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 §25F, each participating state's governor submits a list of qualifying Scholarship Granting Organizations (SGOs) to the U.S. Treasury; states have several months to complete that step ahead of the program's January 1, 2027 launch.

If New York completes the opt-in, families across the state will be eligible for scholarships through state-designated SGOs once the program goes live. Federal taxpayers anywhere in the country can claim a non-refundable federal income tax credit of up to $1,700 per return for donations to a qualifying SGO; under §25F, scholarships must go to K-12 students in opted-in states whose household income is at or below 300% of the relevant Area Median Gross Income.

Implementing guidance from the IRS is still in development. Treasury issued Notice 2025-70 in November 2025 seeking public comment on issues including state certification, SGO requirements, donor substantiation, and household-income verification — the kinds of details Hochul's office indicated it wants to review before finalizing. The annual structure of the opt-in means New York's participation, once certified, must be re-certified each January 1 in future years.