NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5539
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the education law, in relation to increasing the phase-
out threshold for tuition assistance program awards
PURPOSE OR GENERAL IDEA OF BILL:
To move the phase-out threshold for tuition assistance program awards to
$18,000, thus making students with incomes between $7,000 and $18,000
eligible for the maximum TAP award.
SUMMARY OF PROVISIONS:
Section 1 amends section 667 of the education law to eliminate subdivi-
sions (B) and (C) of subparagraph (ii) of paragraph (a), and to amend
subdivision (A) of subparagraph (ii) of paragraph (a) to move the begin-
ning of the phaseout from $7,000 and $18,000.
Section 2 is the effective date.
JUSTIFICATION:
New York's Tuition Assistance Program supports the education of over
200,000 students each year. Dependent students with family incomes less
than $80,000 are eligible for a TAP award up to the maximum of $5,665.
However, only students with annual family incomes of less than $7,000
are eligible to receive the maximum award. Under current law, the award
amount begins to phase out for incomes between $7,000 and $11,000. The
rate of reduction of the award amount increases for incomes between
$11,000 and $18,000, and then it is reduced most steeply for incomes
between $18,000 and $80,000.
This phase-out formula has not been updated in 50 years, and it fails to
adequately support low-income New Yorkers. With the phase-out beginning
at $7,000, many low-income students are denied the full TAP award,
making college less affordable and accessible. Especially given recent
U.S. Supreme Court decisions, it is imperative that New York continue to
provide pathways to higher education for low-income students, who are
disproportionately people of color.
Moving the TAP phase-out threshold from $7,000 to $18,000 would allow
more low-income New Yorkers to access the maximum TAP award. This would
make higher education more accessible for students from disadvantaged
backgrounds, which would facilitate economic mobility, support diversity
in higher education, and generate more skilled graduates to meet the
state's workforce needs.
LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect 180 days after it shall have become law.
STATE OF NEW YORK
________________________________________________________________________
5539
2025-2026 Regular Sessions
IN ASSEMBLY
February 14, 2025
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Higher Education
AN ACT to amend the education law, in relation to increasing the phase-
out threshold for tuition assistance program awards
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (ii) of paragraph a of subdivision 3 of
2 section 667 of the education law, as amended by section 1 of part X of
3 chapter 56 of the laws of 2024, is amended to read as follows:
4 (ii) Except for students as noted in subparagraph (iii) of this para-
5 graph, the base amount as determined from subparagraph (i) of this para-
6 graph, shall be reduced in relation to income as follows:
7 Amount of income Schedule of reduction
8 of base amount
9 (A) Less than [seven] eighteen None
10 thousand dollars
11 (B) [Seven thousand dollars or Seven per centum of excess
12 more, but less than eleven over seven thousand dollars
13 thousand dollars
14 (C) Eleven thousand dollars or Two hundred eighty dollars
15 more, but less than eighteen plus ten per centum of excess
16 thousand dollars over eleven thousand dollars
17 (D)] Eighteen thousand dollars or Nine hundred eighty dollars
18 more, but not more than one plus twelve per centum of
19 hundred twenty-five excess over eighteen
20 thousand dollars thousand dollars
21 § 2. This act shall take effect on the one hundred eightieth day after
22 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04787-01-5
