HI HCR74

Resolution urges Governor to reconsider his decision not to allow Hawaii to participate in the Federal Education Freedom Tax Credit Program, which takes effect in 2027

The federal program provides up to $1,700 in tax credits for donations to certified scholarship granting organizations (SGOs) that award scholarships to K-12 students from households with income not exceeding 300% of area median income

Scholarships can cover private school tuition, public school tutoring, and support services for students with disabilities, funded through private contributions and federal tax credits rather than state appropriations

As of January 27, 2026, twenty-three states have opted into the program; Hawaii's non-participation means donated scholarship funds would benefit students in other states instead

Hawaii reported 52% reading proficiency and 40% math proficiency in 2023, with some schools as low as 12% and significant disparities for Native Hawaiian and Pacific Islander students