ALBANY, N.Y. (VINnews) – — New York will participate in a new federal scholarship tax credit program that could help families pay private school tuition, including at yeshivas and other religious schools, Gov. Kathy Hochul announced Friday.

The program, scheduled to begin Jan. 1, 2027, allows individual taxpayers to claim a federal income tax credit of up to $1,700 for qualifying cash donations to scholarship-granting organizations.

Hochul said the state decided to participate after reviewing federal regulations, concluding that the program could bring millions of additional dollars to New York students and families without reducing funding for public schools or drawing money from state and local budgets.

“I’m not going to leave money on the table when it could help our kids,” Hochul said in a statement.

The governor said she had made participation conditional on ensuring that all schools and students, including those in public schools, could benefit from the program.

Under Section 25F of the federal tax code, eligible taxpayers can claim a credit for qualifying donations to approved scholarship-granting organizations. The organizations provide scholarships to eligible elementary and secondary school students to help cover educational expenses.

For Jewish families facing substantial tuition bills at yeshivas and day schools, the program could provide an additional source of financial assistance, depending on the scholarship organizations and the funding available.

Hochul said she had also been engaging with business leaders who committed to using the program to support public school students and their academic needs.

New York’s participation comes ahead of the program’s planned launch in 2027. The state must meet federal requirements, including providing the Internal Revenue Service with a list of qualifying scholarship-granting organizations.