Liu Bill Would Strip Governors of Scholarship Opt-In

State Sen. John Liu plans legislation giving New York's Board of Regents authority over the federal tax credit scholarship program.

Updated on Nov. 9, 2026 in Financial Aid

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Should New York governors alone decide whether the state joins federal private school tuition tax credits?

State Sen. John Liu plans to introduce a bill that would remove New York governors' power to opt the state into a federal tax credit scholarship program. Gov. Kathy Hochul opted New York in last month, becoming the second Democratic governor to do so.

Why it matters

The federal program lets taxpayers redirect part of their tax bill to scholarship-granting organizations, and states must decide whether to participate each year. Shifting that decision to the Board of Regents would change who controls New York's participation.

Taxpayers can redirect up to $1,700 of their tax bill to scholarship-granting organizations, with a full federal rebate, starting Jan. 1. The bill's chances of passage and its effect on later years have not been determined.

The players

John Liu

A New York state senator who plans to introduce the bill that would move opt-in authority to the Board of Regents.

Kathy Hochul

New York's governor, who opted the state into the federal tax credit scholarship program last month.

Donald Trump

The President of the United States, whose One Big Beautiful Bill Act created the federal tax credit scholarship program.

The details

Scholarship-granting organizations give money to qualifying families for tuition or for tutoring and other services. The bill would not prevent students from receiving scholarship money in 2027, the program's first year, but would give the 17-member Board of Regents, chosen by state lawmakers, the annual opt-in decision starting in 2028.

Jan. 1, 2027: Taxpayers can begin redirecting up to $1,700 to scholarship-granting organizations.
2027: First year of the federal tax credit scholarship program.
2028: The Board of Regents would make New York's opt-in decision under the proposed bill.

Legal Context

The federal tax credit scholarship program was created by the One Big Beautiful Bill Act signed by President Donald Trump. States are now split on whether to opt in, with Rhode Island requiring legislative signoff and several Republican-led legislatures overriding Democratic governors' vetoes to opt in.

Families who want to use the scholarship program should watch for the Jan. 1 start date and check whether New York has opted in by then. Taxpayers considering redirecting part of their tax bill should confirm which scholarship-granting organizations are participating before making a decision.

The takeaway

Whether New York families can use this program depends on who controls the annual opt-in decision. Readers should track the bill's progress and any Board of Regents action before planning contributions or scholarship applications.