New York Governor Kathy Hochul informed representatives of Agudath Israel of America on Thursday that New York State will take part in the federal Educational Choice for Children Act (ECCA), a sweeping initiative expected to generate $5 billion annually in K-12 scholarships nationwide starting in 2027.

The update was delivered during a closed-door meeting at the Manhattan offices of Outerstuff, hosted by Agudah Chairman of the Board Mr. Shloime Werdiger.

ECCA was enacted earlier this year after President Trump signed it into law as part of the “One Big Beautiful Bill Act.” The framework mirrors tax credit scholarship programs already operating in more than 20 states across the country. Under the legislation, individuals who contribute to Scholarship Granting Organizations (SGOs) will receive a full federal tax credit for their donations. Those organizations will then distribute scholarships that families can apply toward private school tuition and other qualified educational costs.

Beginning next year, residents in participating states will be eligible for the federal credit when donating to approved scholarship funds. These funds will in turn provide K-12 financial assistance to qualifying students. Contributions are capped at $1,700 per individual each year, and the program carries no overall national funding limit, having been written as a permanent part of the federal tax code.

Qualification for scholarships will depend on income thresholds that vary by region.

Agudath Israel indicated that, based on current guidelines, a large percentage of frum households are likely to qualify for assistance under the program.