It is very important to note that the definition of a Gold Star Family is a very specific designation. Gold Star Family Members are the immediate family members of fallen service members who died while serving in conflict."
In other words, they are not taking anyrhing away from those who are Gold Star families, they chose not to vote on a bill that would expand the program to military personnel who did not die in combat zones.
https://blog.timesunion.com/johnmcdonald/funding-college-for-gold-star-and-military-families-clarifying-misinformation/5596/
If approved by the full Legislature and Gov. Andrew Cuomo, the measure would have provided free SUNY or CUNY tuition, room and board to any surviving dependent family members of New York veterans who were died while carrying out official duties. This matches the definition given by the US army's official website:
These flags/banners were first flown by families during World War I. The flag included a blue star for every immediate family member serving in the armed forces of the United States, during any period of war or hostilities in which the armed forces of the United States were engaged. If that loved one died, the blue star was replaced by a gold star.
https://www.army.mil/goldstar/
So NY has its own modified the meaning of Gold Star for their Merit scholarship. And that is fine they can do that with their money.
But that does not change the fact other survivors who would have been affected by this bill are indeed Gold Star family members.
So yes, NY did just deny college tuition to Gold Star family members.
As far as economics:
Fiscal implications of the bill are yet to be determined, according to the New York legislature’s website, but Hawley said an assemblywoman estimated it would cost up to $200,000. However, the assemblyman reasoned the cost was irrelevant.
They approved $27Million for free tuition for the illegal students.
So NO it was not about how much it cost.
These flags/banners were first flown by families during World War I. The flag included a blue star for every immediate family member serving in the armed forces of the United States, during any period of war or hostilities in which the armed forces of the United States were engaged. If that loved one died, the blue star was replaced by a gold star.
https://www.army.mil/goldstar/
The term Gold Star was first used in World War I, when families flew flags with stars representing each loved one fighting in the conflict.
Gold Star traditions
The flags had a blue star for each immediate family member serving in the U.S. military during any period of war or hostilities. If a loved one was killed while serving, the blue star was replaced by a gold star."
https://learningenglish.voanews.com/a/what-is-a-gold-star-american-family-and-how-are-they-important-for-the-military/3446219.html