Governor Kathy Hochul announced New York’s participation in the federal program known as One Big Beautiful Bill’s tax credit for Scholarship Granting Organizations (SGOs) in May. This decision has sparked discussions regarding its implications for public school funding.
The tax credit program allows taxpayers to earn a credit of up to $1,700 for donations made to SGOs. These organizations then utilize these funds to assist families in affording educational expenses such as scholarships and tutoring. Eligible families must have incomes up to 300 percent of their area’s median gross income.
An important aspect of this initiative is that it does not require any financial contribution from the state of New York. Consequently, concerns regarding the potential reduction of public school funding in New York due to the adoption of this program are unfounded. Instead, this program aims to provide additional educational support without impacting state budgets for public schools.