HI HR68

Hawaii House Resolution urging the Governor to reverse his decision and opt Hawaii into the Federal Education Freedom Tax Credit Program, which takes effect in 2027

The federal program provides tax credits up to $1,700 for donations to certified scholarship granting organizations (SGOs) that support K-12 students from households earning up to 300% of area median income

Scholarships can fund private school tuition, public school tutoring, and disability support services, with SGOs required to spend at least 90% of income on student scholarships

As of January 27, 2026, twenty-three states have opted into the program; Hawaii residents can donate and receive tax credits, but without state participation, scholarship funds would benefit students in other states

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