HB273 establishes a new School Choice Scholarship program within Chapter 302A of the Hawaii Revised Statutes. The bill directs the Department of Education and the Board of Education to create a competitive grant program that awards scholarships to eligible students from Hawaii households with incomes at or below four times the federal poverty line. The scholarships are set at $10,000 per student per academic year and may be used for tuition, fees, and transportation costs at a nonpublic elementary or secondary school of the family’s choice, including private schools and, as defined in the bill, certain charter schools. The bill also allows grants to be awarded through eligible entities such as state educational entities, nonprofits, or nonprofit consortia, and gives priority to students from schools identified for improvement, corrective action, or restructuring under federal law.
The bill also creates a framework for program administration, reporting, and evaluation. It requires the Board of Education to enter into a memorandum of understanding with the governor on program design and implementation, limits grants to periods of up to five years, and requires annual and final reports to the legislature. Participating schools and grantees must provide data for evaluation, and the board must assess academic achievement, parental satisfaction, retention, graduation, college admission, school safety, and the impact on public schools. The bill caps evaluation spending at 3 percent of the total appropriation and requires that personally identifiable information remain confidential.
In terms of state law impact, HB273 would add a new part to Chapter 302A and appropriate general funds for fiscal years 2025-2026 and 2026-2027 to implement the scholarship program. It would also specify that scholarship funds are assistance to the student rather than the school, and that the funds are not treated as parental income for state tax purposes or for determining eligibility for other state programs. The bill includes nondiscrimination rules for participating entities and schools, while also carving out exceptions for religious schools and single-sex schools, and preserving certain religious employment and governance practices for schools affiliated with religious organizations.
The general sentiment reflected in the bill text is strongly supportive of school choice, parental autonomy, and relief for overcrowded public schools. The findings emphasize that private and charter options can reduce pressure on the public system and that the scholarship amount would be less than the state’s per-pupil public education spending, framing the proposal as cost-effective and in the public interest. No committee transcript or vote record is provided, so there is no recorded debate or formal vote sentiment beyond the bill’s introductory framing and referral status.
The main points of potential contention are likely to be the use of public funds for private and religious schooling, the scope of exemptions for religious schools, and whether the program would divert resources from public schools rather than relieve overcrowding. The bill’s income eligibility threshold, competitive grant structure, and priority for students from underperforming schools may also draw scrutiny over who benefits and how access is allocated. Because the bill includes explicit protections for religious schools and single-sex programs, those provisions may be especially relevant in any policy debate.
HB273 would amend Chapter 302A of the Hawaii Revised Statutes by creating a new school choice scholarship program administered by the Board of Education and funded through state appropriations. It would authorize grants to eligible entities to provide $10,000 scholarships for qualifying students to attend nonpublic schools, while also imposing reporting, evaluation, and nondiscrimination requirements on participating entities and schools. The bill would further affect state tax and benefits administration by excluding scholarship amounts from parental income calculations for state tax purposes and eligibility for other state programs.
The bill is framed in strongly favorable terms toward school choice, parental control, and relief for overcrowded public schools. Its findings present the program as a cost-effective way to expand educational opportunity for lower-income families and reduce pressure on the public school system. Because there are no committee transcripts or recorded votes included, there is no evidence of formal opposition or support beyond the bill’s pro-school-choice framing and referral to committees.
Likely areas of contention include whether public money should subsidize private and religious education, the bill’s treatment of religious schools and sex-based school offerings, and the potential effect on public school funding and enrollment. Critics may also question the income eligibility design, the adequacy of oversight and accountability, and whether the program would truly improve access for the neediest families. Supporters are likely to emphasize parental choice, targeted aid, and the bill’s evaluation and reporting requirements as safeguards.