SEATTLE — Washington Policy Center applauds Gov. Kathy Hochul’s announcement that New York will opt into the Federal Scholarship Tax Credit (FSTC) program. New York becomes the 31st state to join, and Hochul the second Democratic governor, after Colorado’s Jared Polis.
Hochul, a longtime public school champion, said New York would join only if public school students could benefit. “After a careful review of the federal regulations, we believe this program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from public schools or our state or local budgets,” she said.
“Gov. Hochul reviewed the federal rules, confirmed the program brings millions of additional dollars at no cost to schools or the state, and took decisive action,” said Vicki Murray, WPC’s education policy director. “Meanwhile, Gov. Bob Ferguson’s indecision is keeping Washington students and schools on the sidelines.”
Gov. Ferguson’s office has said he would not decide until the rules were available. Treasury released them Oct. 1. A state joining for the first time must file its election by Jan. 1, 2027, and submit its list of scholarship organizations by Feb. 15.
Washington taxpayers can claim the credit whether or not the state opts in. If Washington stays out, their donations will fund students in New York, Colorado, and other participating states, leaving behind an estimated 1.3 million Washington students and more than $700 million a year in additional education support.
Former U.S. Education Secretary Arne Duncan, who served under President Barack Obama, urged Washington to opt in at WPC’s Sept. 15 education event. He called it “not just an educational opportunity” but a “moral obligation,” adding, “It doesn’t replace a single dollar. It’s additional. It’s additive.”
Democrats for Education Reform CEO Jorge Elorza agreed. “You can opt out and the money leaves the state, but you can opt in and support kids in Washington. Where is this a hard decision?” he said. “This should be an all-hands-on-deck moment.”
The FSTC takes effect Jan. 1, 2027. Taxpayers receive a dollar-for-dollar federal credit of up to $1,700 ($3,400 for married couples filing jointly) for donations to nonprofit scholarship-granting organizations. Scholarships can cover tutoring, tuition, academic enrichment, books, technology, transportation, services for students with disabilities, and more for students in public, charter, and private schools.
“Gov. Hochul said yes. Arne Duncan calls it a moral obligation,” Murray said. “Gov. Ferguson, Washington students are waiting on you.”
WATCH: $700 Million for Washington Schools? Former Secretary of Education Weighs In
TAKE ACTION: Urge Gov. Ferguson to opt in at WPC’s Take Action page.