HI SCR158

Resolution urges Hawaii's Governor to reconsider his decision not 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 earning up to 300% of area median income.

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

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 rather than Hawaii students.

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.