Governor Kathy Hochul told Agudath Israel of America leaders that New York plans to opt into the new federal scholarship tax credit program, a major development that could bring significant tuition relief to yeshiva families across the state.

The announcement was made on Thursday during a private meeting with Agudah askanim at the offices of Agudah Chairman Reb Shloime Werdiger. Among those present were Agudah Executive Vice President Rabbi Chaim Dovid Zwiebel, COO Avi Schnall, Yeruchem Silber, Chaskel Bennett, and other askanim involved in the years-long push to secure federal school choice assistance.

The program, known as the Educational Choice for Children Act, allows taxpayers to receive a dollar-for-dollar federal tax credit of up to $1,700 for donations to approved Scholarship Granting Organizations, which would then distribute scholarships to eligible K through 12 students for qualified educational expenses, including private school tuition, tutoring, and other school-related costs.

For frum families struggling with rising yeshiva tuition, the program could become one of the most significant affordability measures in years. The credit is written permanently into the federal tax code and is expected to begin in 2027.

A state must opt into the program before local scholarship organizations can be approved and before students in that state can fully benefit. Without an opt-in, New York taxpayers could still direct donations to scholarship organizations in other states, but New York families would lose out on the benefit.

Hochul’s office said the governor is “supportive of the federal tax credit scholarship and its potential to help New York students and schools,” while adding that the state is awaiting further guidance from the federal government and will review the policy for any provisions that could harm New York’s education system.

Agudah has been one of the leading Orthodox organizations behind the legislation, working with lawmakers and coalition partners to move the bill forward over several years. The national school choice effort was advanced as a federal tax credit that would allow taxpayers to support scholarship organizations helping families cover education costs.

The push gained momentum after more than fifty public officials and school choice supporters joined a new initiative urging Congress to adopt school choice, calling for a scholarship tax credit program to expand education options nationwide.

The proposal later cleared a key hurdle when the school choice proposal made it through the Senate as part of President Donald Trump’s broader tax and spending package. The revised version created a permanent scholarship tax credit and removed the previous annual cap on total donations.

Agudah has said that every state opting into the program brings the federal scholarship tax credit closer to reality for families, giving more parents access to real educational choices for their children.

Eligibility for scholarships will be based on income guidelines tied to a family’s place of residence. According to Agudah, the program’s broad income thresholds are expected to allow many Orthodox families to qualify once New York’s participation is finalized.

The program does not use state funds and does not take money from public schools. Instead, it creates a federal tax credit for private donations to scholarship funds, which then provide assistance to qualifying students.

For New York’s yeshiva community, Hochul’s decision marks a major step toward opening a new source of scholarship assistance, with the details now dependent on federal guidance and the approval of qualified scholarship organizations.