New York Gov. Kathy Hochul confirmed to Jewish leaders on Thursday that she will opt into a new federal education tax initiative, a move promoted by community advocates to help fund Jewish day schools and yeshivas. 

Starting in the 2027 tax year, the federal Education Freedom Tax Credit, part of President Donald Trump’s 2025 flagship policy package, provides a dollar-for-dollar tax credit — up to $1,700 annually — for donations to approved Scholarship Granting Organizations. These SGOs offer scholarships for a variety of K-12 public and private education expenses, including private school tuition, transportation and tutoring. 

If states don’t opt in, taxpayers can still donate, but residents of that state won’t receive the benefit. 

A spokesperson for Hochul confirmed to Jewish Insider that the governor told Jewish leaders she will opt in. 

The move would make Hochul the second Democratic official to join the program, following Colorado Gov. Jared Polis in February. 

While nearly all Republican governors have already opted in, their Democratic counterparts have been hesitant. Some critics have voiced concerns that the program has insufficient oversight against fraud or that it could divert public money to private schools. 

New York would be the 30th state to opt in. States have the next several months to choose to participate. 

Teach Coalition, an Orthodox Union-run organization that advocates for government funding and resources for yeshivas and Jewish day schools, as well as Jewish Federations of North America, have for months lobbied governors and met with Jewish communities to educate on the initiative. The tax credit push marks the first time JFNA has waded into the issue of Jewish day school affordability. 

Hochul’s “support for this program puts New York at the forefront of expanding educational opportunity and positions the state as a leader among blue states looking to empower families,” said Sydney Altfield, CEO of Teach Coalition. “We are also deeply grateful to the parents, advocates, educators, and community leaders whose voices helped make this moment possible. This is bigger than New York. Blue states across the country will now be watching closely.”