The purpose of this study is to identify the characteristics and challenges of the tuition-free policy for public universities and colleges in New York State. The findings of this paper are as follows. First, it can be pointed out that the purpose of the free tuition in New York State was to provide financial aid to middle-income families and improve graduation rates. Second, the characteristics of the design of New York State's free tuition system are: (1) it covers not only public two-year colleges but also public four-year universities and colleges, (2) the scope of the aid is limited to tuition, and (3) the eligibility requirements are very strict, and if the student fails to comply, the Excelsior Scholarship will be converted into a student loan that must be repaid. Third, the number of recipients of the Excelsior Scholarship is small, only a few percent of all SUNY and CUNY students, and it is characterized by a concentration of recipients at four-year institutions. Fourth, there are various evaluations of the results of tuition-free policy in New York State. While some have pointed out the narrow scope of the grant, which is limited to tuition, the regressive nature of the grant, and the strict eligibility requirements, research has shown that recipients of the Excelsior Scholarship have a high probability of continuing their studies in the second year at a two-year college. The New York State case is very important in examining the effects of the tuition-free policy for four-year public universities and colleges in the U.S., and further research is needed.