RELATING TO THE HAWAII COMMUNITY COLLEGE PROMISE PROGRAM.
HB2338 amends the Hawaii Community College Promise Program (Hawaii Promise), which provides scholarships to eligible students at University of Hawaii community colleges. The bill changes the program from a more traditional “last-dollar” model to one that covers 95 percent of a student’s unmet direct cost needs, rather than reducing the award by all grants, scholarships, and other non-repayable aid. It also updates the program to better align with federal financial aid rules, including recent changes affecting Pell Grants.
Under the bill, students may still qualify for up to eight semesters if they are Hawaii residents, complete the FAFSA, enroll in a degree or certificate program with at least six credits per semester, maintain satisfactory academic progress, and demonstrate unmet direct costs. The bill narrows the definition of “direct cost” to tuition, fees, books, and supplies, and it authorizes the University of Hawaii to coordinate Hawaii Promise with federal student aid programs beginning July 1, 2026. If state and federal rules conflict, the program must be administered to preserve federal aid eligibility while providing the maximum state assistance allowed.
The bill amends Section 304A-506, Hawaii Revised Statutes, governing the Hawaii Community College Promise Program. It removes language that required counting grants, scholarships, and other aid sources in the award calculation, and it revises the award formula so eligible students receive 95 percent of unmet direct cost needs. It also updates the statutory definition of “direct cost” and adds express authority for coordination with federal student aid, while preserving compliance with federal law and Title IV requirements. The practical effect is to increase the amount of state aid available to community college students and to allow other aid, such as Pell Grants, to be used more flexibly for indirect expenses like housing and food.
The bill appears to have broad support. It passed the Senate Education Committee, Senate Ways and Means, and the conference committees unanimously, with no recorded dissent in the provided vote history. The bill’s findings and report language frame it as a student-support measure intended to reduce financial barriers, improve equity, and help students complete their programs. Overall, the discussion reflected a favorable view of aligning state aid with federal changes and maximizing benefits for students.
The main policy issue is how Hawaii Promise should interact with other financial aid. Supporters favor excluding grants and scholarships from the award calculation so students can use those funds for living expenses, while still receiving substantial state support for direct educational costs. The bill also addresses potential tension with federal financial aid rules, especially Pell Grant changes, by directing the program to coordinate with federal aid and to defer to federal requirements if conflicts arise. No strong opposition is reflected in the available committee or vote records, suggesting the remaining concern was technical alignment rather than disagreement over the program’s purpose.