Education

New York opts in as states divide over school choice tax credit

Treasury and IRS have proposed rules for the Education Freedom Tax Credit, which lets states opt in to fund scholarships. New York has opted in while other states, including Connecticut, are weighing the same decision.

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What happened

The federal Education Freedom Tax Credit, aimed at families paying for private school tuition, tutoring, or services for children with special needs, is letting states decide whether to join, and they are split. Education Secretary Linda McMahon has now publicly urged Washington to sign on, which has sparked debate over how public education is funded.

Why it matters

One opinion piece argues the provision could direct more than $270 billion a year into the educational system. The debate centers on how public education funding should work.

Timeline

  1. Oct 18, 1:00 AM ET: New York Gov. Kathy Hochul opted the state into the federal Education Freedom Tax Credit program.
  2. Oct 18, 6:55 PM ET: The U.S. Treasury Department and the IRS released proposed rules for the credit.
  3. Oct 19, 8:05 AM ET: Reports said states remain divided over the first federal education tax credit for school choice.
  4. Oct 19, 8:23 PM ET: U.S. Education Secretary Linda McMahon urged Washington to adopt the new tax credit program.

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