On September 16, 2026, teachers union leaders and civil rights groups gathered at the United Federation of Teachers headquarters in Lower Manhattan. They urged New York Gov. Kathy Hochul to opt the state out of a new federal tax-credit scholarship program, according to Chalkbeat.
Leaders on both sides say the fight is about students. But one verified rule tests that framing. Families earning up to 300% of their area's median income can qualify, according to Gothamist. In New York City, that reaches high earners. City & State reported the cap works out to a family of three making more than $450,000 a year in the New York City region. Gothamist reported a cap of about $500,000 in the city. Both numbers estimate the same 300% rule. The dossier does not give one exact figure.
Speakers at the rally pointed to other states. There, they said, voucher programs with high or no income caps have mostly helped higher-income families and students with no public school record, according to City & State. That source reports this as the speakers' claim, not proven fact.
Here is how the program works. Congress created it last year in the One Big Beautiful Bill Act, according to Chalkbeat and City & State. It starts in January 2027. Taxpayers can donate up to $1,700 to an eligible scholarship group. In return, they get an equal cut in their federal taxes, according to Chalkbeat. Those groups can give students money for private school tuition, tutoring, and other school costs. States must opt in for their students to take part.
The two sides disagree about the effect on public schools, and the cited sources do not settle it. Hochul's office says the program would not divert money from local and state budgets, according to Chalkbeat. "Governor Hochul's priority is making sure every student receives an education that best meets their needs, which is why she wants the federal scholarship tax credit to benefit all New York students," spokesperson Jonah Allon said, according to Chalkbeat and City & State. Union leaders disagree. "It is meant to actually take money out of public schools," said Randi Weingarten, president of the American Federation of Teachers, according to Gothamist. "Vouchers are about allowing private schools to pick and choose who they admit, leaving the most vulnerable children behind," she said, according to Chalkbeat and Gothamist. "This shift in the One Big Beautiful Bill Act is a fundamental change in how we fund public schools in our country, and it is in exactly the wrong direction," said Melinda Person, president of New York State United Teachers, according to City & State. These are each side's arguments.
Hochul has not made an official choice. In May 2026, she said she plans to opt New York in, according to Chalkbeat. Her office said she is waiting for Treasury Department rules to check for any "poison pills" that would change her decision, according to Chalkbeat. Those rules are expected later in September 2026. On September 10, 2026, supporters of the program sent Hochul a letter urging her to opt in, according to City & State. The Robin Hood Foundation, a poverty-fighting nonprofit, co-wrote it with the New York City Charter School Network.
So far, 30 states have formally opted in, according to a list kept by the IRS and reported by Chalkbeat. Most are led by Republicans. Colorado Gov. Jared Polis is the only Democrat to officially opt in. In Kentucky, Kansas, and North Carolina, Republican-led legislatures overrode Democratic governors' vetoes to opt in. Oregon Gov. Tina Kotek and Wisconsin Gov. Tony Evers have firmly rejected it, according to Chalkbeat.
Hochul faces reelection in November 2026. Many of the groups urging her to opt out support her campaign, according to Chalkbeat. Michael Mulgrew, president of the United Federation of Teachers, said his union would not withdraw its support for her. "We're just hoping that she continues to have an open mind and hears us," Mulgrew told reporters, according to Chalkbeat and Gothamist.