NEW YORK — A state lawmaker is drafting a bill to potentially block New York’s participation in President Donald Trump’s Federal Scholarship Tax Credit program — seemingly against the wishes of Gov. Kathy Hochul.

State Sen. John Liu, D-Queens, chair of the New York City education committee, on Monday said he plans to introduce legislation that provides the State Education Department’s Board of Regents with the sole authority to decide if New York will join the initiative. The Republican-led program, which is structured like a tax credit, incentivizes contributions to organizations that grant scholarships and may be used to help pay for private and religious schools.

After months of signaling her support for the program, Hochul, a moderate Democrat, made a final decision to opt in New York in October.

“However the Trump administration may spin it, this tax credit is a federal voucher program, an idea long debated and rejected in the state of New York because it inevitably diverts resources away from public schools,” Liu said in a statement.

Liu first told the Daily News during an interview in May that he could pursue legislation that would pump the brakes on Hochul’s intent to participate.

The senator maintained the “clear intent” of Trump’s efforts is to subsidize private schools, though public schools may receive some of the donations under new rules announced by the federal government. Unlike traditional state voucher programs, these scholarships can be used for tutoring, afterschool programs, yellow school buses, special education and other educational expenses.

“New York should not buy into this terrible policy, advanced by a now lame-duck administration, which has some likelihood of being reversed in the near future,” Liu said.

Critics of the program, including teachers unions, believe participation in the program could backfire on school district enrollment and per-student funding. A news release from Liu’s office said the upcoming bill has the support of State Sens. Liz Krueger and Robert Jackson, both Manhattan Democrats, who also raised concerns about potential harms for public schools.

“Governor Hochul has been clear: she’s not going to leave money on the table when it could help our kids, including those in public schools,” said Jonah Allon, a spokesman for the governor, fresh off her re-election by a wide margin.

“We believe the Federal Scholarship Tax Credit program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from public schools or our state or local budgets,” he added. “Make no mistake: her first priority is helping our students thrive, and this program will do just that.”

Hochul has already opted New York in for 2027; Liu said his bill would apply to 2028 and beyond. The measure was first reported by Politico New York.

While taxpayers across the country are eligible for dollar-for-dollar credits of up to $1,700 for donations made to the approved nonprofits, state governments must affirmatively opt into the program in order for local students to receive the scholarships.

State Education Department (SED) Commissioner Betty Rosa has previously expressed her skepticism about the federal program last winter.

“At the end of the day, if the consequences are that we are going to diminish our public sector as a result of it, then obviously I don’t even see how SED could possibly support that,” Rosa said during a state education budget hearing in late January.

JP O’Hare, a spokesman for the State Education Department, endorsed the legislation: “We appreciate Senator Liu’s commitment to preserving the independence of education policy-making and ensuring these important decisions remain where they belong, with those charged with protecting and strengthening education for all New Yorkers.”

It’s not the first time Hochul and Rosa have been at odds over a high-profile educational issue. The governor ushered in New York’s statewide school cellphone ban despite Rosa’s concerns for some students and support for local decision-making. More recently, Hochul disparaged a plan to remove the Regents exams as a graduation requirement and called for control over state education decisions, telling New York politics podcast host Ben Max: “The buck should stop with me.”

If Liu’s bill is passed, the Board of Regents could revise its decision on an annual basis.

“Regardless of what the political arguments may be, this program is a matter of education policy best decided by the state Board of Regents,” Liu said.

The federal scholarship tax credit program starts in January.

_____

©2026 New York Daily News. Visit nydailynews.com. Distributed by Tribune Content Agency, LLC.