Hochul's In, Will Healey Follow?

After completing her review of new federal regulations, New York Governor Kathy Hochul has announced that New York will participate in the controversial Federal Scholarship Tax Credit, which many in Governor Healey's base opposed.  Pioneer Institute called on Governor Maura Healey to complete her review so Massachusetts families can participate in 2027 and support for the measure has been a centerpiece of Republican gubernatorial candidate, Mike Minogue's campaign for the corner office.

Hochul had conditioned New York's participation on a complete review of the federal rules. After reviewing the regulations released October 1, she opted in despite opposition from New York's powerful teachers unions.

“After a careful review of the federal regulations, we believe this program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from our state or local budgets,” Hochul said.

“Governor Hochul did what she promised: She reviewed the federal regulations and acted accordingly,” said Jim Stergios, executive director of Pioneer Institute. “Governor Healey should keep hers: Complete her review and give Massachusetts families the very same opportunities.”

Public school students can use scholarships without leaving their schools for tutoring, special needs services, books, supplies, computers, test preparation, transportation and after-school programs.

The regulations clarify that individuals can receive up to $1,700 annually in federal tax credits for qualifying contributions, or $3,400 for a married couple when each spouse contributes.

Treasury estimates that 96 percent of children in participating states could qualify. By 2030, it projects nearly $26 billion in annual contributions supporting as many as 2.2 million scholarships.

Hochul joins Colorado Governor Jared Polis among Democratic governors supporting participation. Democrats for Education Reform, led by former Providence Mayor Jorge Elorza, is urging states to participate, as is former U.S. Education Secretary Arne Duncan.

A January 2026 Pioneer Institute poll found that more than two-thirds of Massachusetts residents support joining the federal scholarship program.

The federal program costs Massachusetts state government and public schools nothing. It requires no reduction in Chapter 70 aid or diversion of existing state or local school funding, according to Pioneer.

“As Governor Hochul put it, ‘I'm not going to leave money on the table when it could help our kids,’” Stergios said. “We hope Governor Healey feels the same way.”