Trump’s ‘Freedom’ Scholarships Could Help 52M Students Nationwide

More than 52 million students across the United States stand to benefit from a federal education scholarship initiative, according to a new analysis released this week—yet nearly half remain locked out as Democratic governors refuse to participate in the program.

According to Carl Campanile writing in New York Post, some 31 states covering approximately 31 million students have opted into the Education Freedom Tax Credit, while 19 states representing nearly 21 million students have yet to sign on. The program, which launches next year, would provide scholarship funding for both private and public school students nationwide.

In New York alone, more than 2.7 million students could qualify for the federal scholarships under the initiative, which allows individual taxpayers to donate to nonprofit scholarship-granting organizations and receive a dollar-for-dollar federal tax credit of up to $1,700 annually. Those organizations then distribute the funds as financial aid to students.

Private and Public School Applications

The scholarships can be used by private school students—including those attending Catholic schools and yeshivas—to offset tuition costs. Public school students, meanwhile, may apply the funds toward tutoring services, after-school programs, or transportation expenses, according to school choice advocates.

The program was enacted as part of the Republican-led budget bill signed by President Trump and represented a top legislative priority for the New York State Catholic Conference and the Teach Coalition/Orthodox Union, which represent Jewish educational institutions.

Deep Blue States Hold Out

While New York Governor Kathy Hochul, a Democrat seeking reelection, opted the state into the program, most Democratic-controlled states have declined to participate. California, where nearly 6 million students would be eligible, has not joined the initiative under Governor Gavin Newsom, widely viewed as a Democratic presidential contender for 2028.

The American Federation for Children, the school choice organization that produced the analysis, noted that approximately 90 percent of students nationally would qualify since the program extends to households earning up to 300 percent of area median income.

A spokesperson for Governor Hochul said the administration supports the federal tax credit scholarship and its potential to assist New York students and schools, but added that the office is awaiting additional information from federal authorities and will review the policy for provisions that could damage the state’s education system.

Union Opposition Mounts

Teachers unions have mounted fierce resistance to the program, characterizing it as a privatization scheme disguised as school choice. The New York State United Teachers union argues the tax credit scholarship will drain resources from public institutions.

The union maintains that when a student departs with a scholarship, the public school forfeits full per-pupil funding while its fixed operational costs remain unchanged. Union officials also contend the generous income eligibility threshold—which can exceed $500,000 in some New York areas—transforms the initiative into a tax break for affluent families rather than targeted assistance for struggling households.

Tommy Schultz, chief executive of the American Federation for Children, urged all governors to participate in the program. He questioned what holdout governors are waiting for, noting that millions of children and families are awaiting educational resources that will support them through the tax credit.

Donations under the program could be directed to organizations such as the Inner-City Scholarship Fund, which provides financial aid to students enrolling in Catholic schools operated by the Archdiocese of New York.

With information from New York Post