HOUSE OF REPRESENTATIVES	H.B. NO.	2338
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII COMMUNITY COLLEGE PROMISE PROGRAM.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the Hawaii community college promise program (Hawaii promise) was created to cover the unmet direct costs of attendance for eligible students enrolled at any university of Hawaii community college. Current law requires the inclusion of all grants, scholarships, and other funding sources when calculating Hawaii promise awards, which can reduce the benefit to students.

The legislature further finds that removing grants, scholarships, and other funding sources from the Hawaii promise award calculation will allow students to apply such funds toward indirect cost needs, including housing, food, and other living expenses, thereby reducing financial barriers, promoting equitable access to higher education, and providing better support for students in completing their academic programs.

The legislature finds that recent changes to the federal Pell Grant require updates to Hawaii promise to ensure awarding practices continue to prioritize students and maximize the support they receive.

The purposes of this Act are to amend Hawaii promise to maximize the financial support for students while aligning with federal regulations; to amend Hawaii promise to exclude grants, scholarships, and other funding sources from the calculation of awards; and to amend the definition of "direct cost" to align more closely with federal financial aid regulations.

SECTION 2. Section 304A-506, Hawaii Revised Statutes, is amended to read as follows:

"§304A-506 Hawaii community college promise program; established. (a) Notwithstanding section 304A-501, there is established the Hawaii community college promise program to be administered by the board of regents. The program shall provide scholarships for the unmet direct cost needs of qualified students enrolled at any community college campus of the University of Hawaii.

(b) A student enrolled at a community college campus shall be eligible for scholarship consideration for a maximum of eight semesters if the student:

(1) Qualifies for Hawaii resident tuition;

(2) Completes and submits the Free Application for Federal Student Aid for each academic year and accepts all federal and state aid[, grants, scholarships, and other funding sources] that do not require repayment; provided that this paragraph shall not apply to a student who enrolls in a certificate program;

(3) Is enrolled in a classified degree or certificate program with six or more credits per semester;

(4) Maintains satisfactory academic progress, as defined by federal requirements established pursuant to title IV of the Higher Education Act of 1965, as amended, and determined by the campus at which the student is enrolled; and

(5) Has been determined by the campus to have unmet direct cost needs.

(c) Scholarships shall be awarded to the extent possible based on available funds and on a greatest need basis. An award granted to a student shall be equal to the student's unmet direct cost need, based on the Free Application for Federal Student Aid calculation of need, less the amounts available to the student from Pell grants and other scholarships; provided that the unmet direct cost need for a student who enrolls in a certificate program shall be based on a suitable instrument, as determined by the university of Hawaii, less the amounts available to the student from grants and other scholarships.

(d) To maintain a scholarship under this section, a student shall meet the requirements of subsection (b)(4).

(e) Notwithstanding any other provision of this section, effective July 1, 2026, the Hawaii community college promise program may coordinate with federal student aid programs to maximize total financial assistance available to students.

(f) If any provision of this subpart conflicts with federal financial aid regulations or federal law, the Hawaii community college promise program shall be administered in a manner that preserves students' eligibility for federal aid while providing the maximum permissible state assistance.

[(e)] (g) As used in this section, "direct cost" means any cost directly related to a student's education, including tuition[; educational fees; and the costs of books, supplies, and transportation between the student's dwelling and the student's campus.], fees, books, and supplies."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

University of Hawaii; Hawaii Community College Promise Program

Description:

Amends the Hawaii Community College Promise Program (Hawaii promise) to exclude grants, scholarships, and other funding sources from the calculation of Hawaii promise awards, allowing students to apply such funds toward indirect costs, including housing, food, and other living expenses, to reduce financial barriers and support student success. Addresses the change in federal law regarding Pell Grants. Changes Hawaii promise from being a last-dollar award.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.