Gov Hochul's plan to opt New York into federal school choice program draws union opposition

As New York teachers unions organize a protest against Gov. Kathy Hochul’s plan to opt into a federal tax-credit scholarship program, the CEO of Teach Coalition told Fox News Digital that opponents are spreading "misconceptions" about how the policy actually operates.

"It seems that they want to continuously spread these lies and the misinformation about this program on to anyone who will hear them," Sydney Altfield, CEO of Teach Coalition, told Fox News Digital on Monday. "But the people who actually want to help children, the people who actually want to see children succeed, they're not going to listen. They're going to understand that this is not the truth of what this program actually can do."

Tax-credit scholarships, historically operated at the state level, serve as a mechanism for school choice by allowing individuals or corporations to receive full or partial tax credits when donating to non-profit scholarship organizations. Unlike traditional voucher programs that draw directly from municipal or state education funds, tax credits allow taxpayers to redirect a portion of their tax liability toward non-profit funding for student scholarships.

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Teachers unions and several other interest groups are gathering at the United Federation of Teachers Headquarters on Wednesday. (Al Drago/Bloomberg via Getty Images)

The federal iteration allows state governors to opt into the framework, enabling local families and educational programs to access federally incentivized scholarship dollars.

Emma Wallner, a spokesperson for Hochul’s office, confirmed in May that the governor intends to opt New York into the federal tax-credit scholarship program — making New York the 30th state to participate.

"Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools," Wallner told Fox News Digital. "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."

For decades, school choice initiatives have remained a third-rail issue for many Democrats, who argue that choice models divert resources away from public education and undermine teachers unions. However, several high-profile Democrats have recently adjusted their stances.

Colorado Gov. Jared Polis became the first Democratic governor to opt his state into the federal program in January 2026. Dismissing critics at the time, Polis told local media he "would be crazy not to" join, noting that the credits empower parents to afford after-school, tutoring, or summer enrichment programs previously out of reach.

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The federal tax-credit scholarship program allows taxpayers to reduce their tax bill, the same type of mechanism on the state level. But, governors have to opt in to the program.  (Angelina Katsanis/Bloomberg via Getty Images)

Despite these arguments, major labor groups remain opposed.

Teachers unions and several allied interest groups plan to demonstrate on Wednesday at the United Federation of Teachers (UFT) headquarters in Manhattan. The coalition includes the UFT, its statewide parent organization, the New York State Union of Teachers (NYSUT), and their national affiliate, the American Federation of Teachers (AFT).

Together, the groups launched a public petition calling on state leadership to reject Hochul’s decision.

"Gov. Hochul plans to opt New York in starting in 2027. But most New Yorkers haven’t even heard of this program or know how it will affect New York," the petition states. "Tax dollars would help pay private tuition for families who never used public schools."

The petition further points to fiscal challenges in other states that expanded school choice models: "Florida couldn't account for $270 million in voucher funds in a single year. Arizona's $65M plan became a $1.4 billion budget hole — cutting water, highways, and community colleges ... We need to show the governor that New Yorkers stand for strong public schools and against any measure that would weaken them."

Union advocates argue that "every dollar diverted to private schools is a dollar taken away from the public schools that serve 90% of New York's kids."

Altfield, however, disputed the characterization that the program constitutes a traditional private school voucher.

"Why are we trying to take away opportunities for our children when they're included as well? Another thing that they call it is a ‘voucher’. And it is not a voucher. It is a tax credit," Altfield explained. "What we know as a voucher is when you take public funding from the public school system, and you allow it to follow the child — which works in many states — but that's not what this is."

On their online campaign website, union organizers argue that labeling differences are purely rhetorical: "The branding changes — ‘Education Savings Accounts,’ ‘tax-credit scholarships,’ ‘school choice’ — but the mechanism is the same: public money flowing to private schools."

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Critics, including several prominent New York teacher unions, remain skeptical. They have raised concerns over the lack of federal oversight for private institutions and the potential for the program to widen equity gaps in the state's education landscape. (Getty Images)

The union FAQ page also claims that funds do not go directly to families: "Funds flow to private SGOs [Scholarship Granting Organizations], which decide who receives the money. These organizations aren't required to be transparent or accountable to the public, and the private schools they fund can turn away students based on disability, academic record, behavior, religion, or almost any other criteria they choose."

Altfield strongly denied that public school operational budgets would suffer under the program.

"This money does not come out of state budgets. It does not come out of state public school resources," Altfield said. "Which is one of the things that the misinformation is trying to tell you — that this is going to drain public school resources and funding. This money does not come out of that bucket."

"Those buckets remain untouched," Altfield added. "One of the things that they like to peddle is that this is going straight into the pockets of private school parents. Well, yes, private school parents and students can access this funding, but they also forget to tell you that public school students can also get this funding and get these scholarships."

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The New York State Union of Teachers, American Federation of Teachers and United Federation of Teachers did not immediately respond to Fox News Digital’s request for comment.