Kathy Hochul’s Approach to Education Reform
Governor Kathy Hochul of New York seems to be navigating a delicate situation regarding education reform.
Recently, she caught school choice advocates off guard with her decision to adopt the Federal Scholarship Tax Credit (FSTC), a K-12 tax credit scholarship initiative included in the One Big, Beautiful Bill.
But there’s a catch. Hochul stated that FSTC “has the potential to help New York students and schools,” though she added that she is awaiting further information from the federal government and wants to prevent any “poisonous pill that could harm New York’s education system.”
Yet, the Governor’s hesitance might not be justified.
I have personal experience with programs similar to the FSTC. For instance, Pennsylvania boasts two successful tax credit scholarship programs: the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC). Together, we awarded over 101,000 scholarships last year.
A significant amount of these scholarships went to low- and middle-income families. For context, the median income under EITC sits around $78,000, while it’s about $56,000 under OSTC, which aligns with the federal median household income of $100,557.
After 25 years of the EITC and OSTC, the proven results in Pennsylvania challenge conventional criticisms about school choice. It offers working-class families more educational options without detracting from public school funding. In fact, Pennsylvania consistently ranks among the highest-spending states nationally.
Nevertheless, Hochul seems to hesitate, much like several other Democratic governors who have also stalled on the FSTC.
Governors from North Carolina, Kentucky, Kansas, and Arizona have all vetoed supportive bills in their states. While Kentucky and Kansas managed to override these vetoes, many of these leaders convey mixed signals. For example, North Carolina’s Governor Stein was on track to opt-in before vetoing a relevant bill he deemed “unnecessary,” while Arizona’s Governor Hobbs cited concerns about accountability and transparency when rejecting adoption of the program.
Meanwhile, Pennsylvania’s Governor Josh Shapiro is also seemingly adopting a wait-and-see stance. He has a history of making grand promises—in 2023, he even claimed on Fox News that “all children of God deserve quality education,” yet scholarship distribution has not materialized for students in poorly rated schools.
In contrast, other governors are taking a firmer stance. For instance, Illinois Governor J.B. Pritzker plans to scrap the state’s tax credit scholarship program, voicing concerns about FSTC diverting funds to private institutions.
It’s frustrating to see these governors delay while children in public schools are left without options.
Academic achievements in public education across their states have stagnated. In Kentucky, only a quarter of 8th graders excel in reading, and in Kansas, 60% of 4th graders struggle with math. Similarly, in Arizona, just one-third of 4th graders read at grade level. North Carolina sees about 25% of students chronically absent, despite record spending.
Public schools are failing these children, and the longer these governors stall, the longer kids remain stuck in underperforming institutions. Avoiding opting-in leads to a situation described by Arne Duncan, former Secretary of Education, as a “moral failure.”
Add to this the fact that there is no cost associated with opting-in. The scholarships are funded privately, leaving public finances intact.
In actuality, resisting this initiative costs states more. Even if governors choose not to participate, individuals still have the option to earn tax credits by donating to out-of-state scholarship entities. This is essentially losing state revenue due to this stubbornness. Per Education Reform’s analysis, nonparticipating states could forfeit hundreds of millions simply by resisting.
Furthermore, suggesting a “wait for guidance from the federal government” seems misleading when the U.S. Department of Education and Treasury have already provided federal guidance.
So, what more needs to be understood, governors? Are you merely avoiding it? As Linda McMahon, Education Secretary, pointed out, “This appears to reflect ideology rather than alarm.”
Meanwhile, children in your states languishing in failing schools aren’t afforded the luxury of time. They deserve a fair chance. It’s time to act—join the FSTC and give these kids a real opportunity for quality education.
