Hawaii SCR 158: URGING THE GOVERNOR TO RECONSIDER HIS DECISION NOT TO ALLOW HAWAII TO PARTICIPATE IN THE FEDERAL EDUCATION FREEDOM TAX CREDIT PROGRAM.

Bill Text

THE SENATE
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII S.C.R. NO.
MAR 1 6 2026
SENATE CONCURRENT
RESOLUTION
URGING THE GOVERNOR TO RECONSIDER HIS DECISION NOT TO ALLOW
HAWAII TO PARTICIPATE IN THE FEDERAL EDUCATION FREEDOM TAX
CREDIT PROGRAM.
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WHEREAS, the Federal Education Freedom Tax Credit Program,
scheduled to take effect in 2027, provides a federal tax credit
of up to $1,700 for voluntary donations to certified scholarship
granting organizations (SGOs); and
WHEREAS, scholarships funded through the Education Freedom
Tax Credit will be awarded to "students eligible to enroll in a
public elementary or secondary school and from a household with
income not greater than 300% of the area's median gross income";
and
WHEREAS, scholarships can be used for a wide array of
education expenses including tuition for students to attend
private schools of choice, tutoring at public schools, and
support services for students with disabilities; and
WHEREAS, the Federal Education Freedom Tax Credit Program
is funded by private contributions and the federal tax code,
rather than through state appropriations; and
WHEREAS, the Federal Education Freedom Tax Credit Program
expands options for low- and middle-income families, while
having no impact on state revenues and no reduction in public
school funding; and
WHEREAS, a state must opt-in to be considered a "covered
state" participating in the program, and the statute provides
the Governor of each state with the authority to make the
election on behalf of the state; and
SCR HMIA 2026-42-02
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WHEREAS, as of January 27, 2026, twenty-three states have
elected to participate in the program: Alabama, Alaska,
Arkansas, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi,
Missouri, Montana, Nebraska, Nevada, North Dakota, Ohio,
Oklahoma, South Carolina, South Dakota, Tennessee, Texas,
Virginia, West Virginia, and Wyoming; and
WHEREAS, while even residents of non-participating states
may make qualifying contributions to receive the tax credit, the
non-participating state and its students will not receive the
benefit of donated scholarship resources; instead, the donations
will be used to benefit SGOs and students in participating
states; and
WHEREAS, if Hawaii elected to participate in the program,
the State could designate SGOs supporting students in Hawaii to
receive the qualifying donations; and
WHEREAS, SGOs must be charities that use at least 90% of
their income on scholarships for education choice options for
eligible K-12 students; and
WHEREAS, Hawaii reported 52% proficiency in reading and 40%
proficiency in math in 2023 with some schools reflecting
proficiency rates as low as 12% and significant disparities for
Native Hawaiian and Pacific Islander students; and
WHEREAS, opting-in to the Federal Education Freedom Tax
Credit Program provides Hawaii's education system with more
financial resources and empowers families with more decision­
making power over their children's education; now, therefore,
BE IT RESOLVED by the Senate of the Thirty-third
Legislature of the State of Hawaii, Regular Session of 2026, the
House of Representatives concurring, the Governor is urged to
reconsider his decision not to allow Hawaii to participate in
the Federal Education Freedom Tax Credit Program; and
BE IT FURTHER RESOLVED that certified copies of this
Concurrent Resolution be transmitted to the Governor and
Superintendent of Education.
SCR HMIA 2026-42-02
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OFFERED BY:
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