While the current debate about the effects of vouchers focuses on the effects of private schools on achievement, it is also important to examine how the introduction of need-based scholarships influences change in school systems. This study uses a qualitative method to examine the influence of a privately funded scholarship program on strategic adaptations within urban public and private schools in a major metropolitan area. The study revealed that senior administrators in public and private schools rapidly adapted their strategies to contend with the new program: suburban public schools prevented scholarship students from enrolling; urban public schools increased choices for public school students; and private schools actively recruited students. However, the scholarships had little influence on the ways these administrators viewed school choice.