What the Federal Scholarship Tax Credit could mean for Long Island families

The new Federal Scholarship Tax Credit could give New York families, including many here on Long Island, another way to secure the educational support their children need. Some families may use scholarships to help a child attend a private school. Others could use them for tutoring, special needs services, books, supplies, extended-day programs and educational technology while their kids remain in public school.

Gov. Kathy Hochul said in May that she intends for New York State to participate, while also making clear that she wants to review the federal rules before making participation official. New York is not yet on the Internal Revenue Service’s list of participating states, which now totals 30. The credit, which was passed under the One Big Beautiful Bill Act, begins Jan. 1, 2027. The Treasury Department says proposed regulations are expected by the end of September. Those rules are expected to give states more clarity about how scholarship organizations operate and how benefits such as tutoring will work.

As a native Long Islander who has worked here as both a teacher and administrator in public and nonpublic schools, I have seen firsthand how this tax credit could benefit students. A parent in East Moriches might have a child who is doing well in public school but needs extra help with math. A family in Huntington might be looking for specialized services for a child with a disability. Another family in Massapequa might believe a Catholic school is the best fit for their son or daughter but finds the tuition difficult to manage. This new tax credit gives parents a choice in how to best support the needs of their child, whether they’re in a public school or not.

How does this work? The federal tax credit goes to the taxpayer who contributes to an approved scholarship-granting organization, or SGO. Beginning in 2027, an individual may receive a credit of up to $1,700 for a qualifying cash contribution. The SGO pools those donations and awards scholarships to eligible students; the student’s scholarship itself is not limited to $1,700. A qualifying Catholic-school family on Long Island could then apply to an SGO for tuition assistance. The same structure can help public school families. A child does not have to change schools to benefit.

On Long Island the Diocese of Rockville Centre has more than 25,000 students attending Catholic schools and as the president of an association that serves those in Catholic education, their success is important to me. But equally important are the many other children attending public schools. If Gov. Hochul opts in, this opportunity will allow families on Long Island to make different educational choices depending on what they believe will work best for their children. The Federal Scholarship Tax Credit does not require New York families to think of public and private education as competing camps. For Long Island parents, that is the part worth keeping in view.

The important thing now is to keep the focus where it belongs: not on an old argument about public schools versus private schools, but on children whose parents are simply looking for the best way to help them learn and succeed.

This guest essay reflects the views of Steven F. Cheeseman, who is president and CEO of the National Catholic Educational Association.