EFTC in New York
New York has announced it intends to participate in the federal Educational Choice for Children Act scholarship program but has not yet formally finalized its opt-in. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.
- Governor
- Kathy Hochul
- Democrat
- Status
- Announced (not finalized)
- As of 2026-05-08
- Program begins
- January 1, 2027
- Federal tax credit live
What EFTC will mean for New York
Governor Kathy Hochul has publicly announced that New York intends to opt in to the federal Educational Choice for Children Act (EFTC), with the announcement coming on 2026-05-08. Hochul announced intent to opt in May 8, 2026 via her FY2027 budget proposal, but said she will review IRS guidance before formally finalizing; not yet certified.
The opt-in is not yet formally finalized. To complete it, New York must submit a list of qualifying Scholarship Granting Organizations (SGOs) to the U.S. Treasury by January 1. Once finalized, families in New York will be eligible for scholarships funded through the program when it goes live on January 1, 2027, and federal tax dollars contributed by New York donors will stay in New York communities.
Until New York certifies its participation, the commitment remains an announcement rather than a guarantee. New York residents, parents, and taxpayers can urge Governor Kathy Hochul to finalize the opt-in before the program begins.
Frequently asked questions about EFTC in New York
Does New York participate in EFTC?
Not yet finalized. Governor Kathy Hochul has announced that New York intends to opt in (announced 2026-05-08), but the state has not yet formally certified its participation. Once finalized, New York families will be eligible for scholarships when the program begins on January 1, 2027.
Who is the governor of New York and what is their position on EFTC?
Governor Kathy Hochul (Democrat) has announced the state will opt in but has not yet finalized it. Hochul announced intent to opt in May 8, 2026 via her FY2027 budget proposal, but said she will review IRS guidance before formally finalizing; not yet certified.
Can New York residents donate to an SGO and claim the federal tax credit?
Beginning January 1, 2027, any U.S. taxpayer can claim a federal income tax credit of up to $1,700 per tax return for donations to a qualifying Scholarship Granting Organization, regardless of the state they live in. Because New York has announced but not yet finalized its opt-in, donations from New York residents would need to go to SGOs in opted-in states — funding scholarships for students in those states rather than in New York.
When does the EFTC program begin?
The Educational Choice for Children Act program begins on January 1, 2027. Donations made on or after that date are eligible for the federal tax credit. Each participating state's governor must submit a list of qualifying Scholarship Granting Organizations to the U.S. Treasury by January 1 of each participating year.
Recent New York EFTC / FSTC news
Coverage of New York’s Federal Scholarship Tax Credit decisions and developments.
- Analysis · 2026-06-04Not a party-line story: where Democratic governors landed on §25FColorado's Jared Polis called opting into the federal Scholarship Tax Credit a “no-brainer”; New York's Kathy Hochul signaled intent to join. But Minnesota, Oregon, and New Mexico governors said no. Among Democratic governors, §25F is splitting along lines that aren't purely partisan.
- State action · 2026-05-08New York Gov. Hochul announces opt-in to Federal Scholarship Tax Credit (FSTC / ECCA)On May 8, 2026, Governor Kathy Hochul announced New York intends to opt into the federal Scholarship Tax Credit program (FSTC / ECCA / §25F) as part of her FY2027 executive budget proposal. Her office said it will review Treasury guidance before finalizing; if certified, New York families would be eligible for scholarships when the program goes live January 1, 2027.
Learn more about EFTC
In-depth guides on how the program works, who qualifies, and how to participate.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax …
- The federal tax credit, explainedHow the Education Freedom Tax Credit (EFTC / §25F) works for donors: $1,700 per tax return, 5-year carryforwar…
- Scholarship eligibilityWhich K–12 students qualify for EFTC scholarships, the income limits, what schools and educational expenses ar…
- How states opt inHow a state opts in to the federal EFTC scholarship program: the governor's annual Treasury submission, legisl…
- EFTC for special-needs familiesHow families of K–12 students with disabilities can use EFTC scholarships to fund therapies, specialized instr…
- EFTC for homeschool & microschoolHow homeschoolers, microschool families, learning pods, and hybrid-school families can use EFTC scholarships, …
Make your voice heard in New York
Contact Governor Kathy Hochul and let them know that New York families want access to EFTC scholarships when the program begins January 2027.
Contact Governor Hochul →