HB 2338

HOUSE OF REPRESENTATIVES
H.B. NO.
2338
THIRTY-THIRD LEGISLATURE, 2026
H.D. 1
STATE OF HAWAII
S.D. 1
C.D. 1
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. �Existing 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 legislature also finds that in
accordance with article X, section 6, of the Hawaii State Constitution, this
Act involves a matter of statewide concern.
���� Accordingly, the purpose of
this Act is to amend:
���� (1)� Hawaii
promise to:
��������� (A)� Maximize
the financial support for students while aligning with federal regulations;
��������� (B)� Exclude
grants, scholarships, and other funding sources from the calculation of awards;
and
��������� (C)� Provide
scholarships for ninety-five per cent of a student's unmet direct cost needs;
and
���� (2)� 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 ninety-five per cent of the unmet direct cost
needs of qualified students enrolled at any community college campus of the [[University]]
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 ninety-five per cent of 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 section 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 shall take effect on July 1, 2026.
Report Title:
University of Hawaii; Hawaii Community College Promise
Program
Description:
Addresses the change in federal
law regarding Pell Grants by amending the Hawaii Community College Promise
Program (Hawaii Promise) to provide scholarships for ninety-five percent of a
student's unmet direct cost need and exclude grants, scholarships, and other
funding sources from the calculation of Hawaii Promise awards, thereby allowing
students to apply such funds toward indirect costs, including housing, food,
and other living expenses, to reduce financial barriers and support student
success.� Changes Hawaii Promise from
being a last-dollar award.� Authorizes
Hawaii Promise to coordinate with federal student aid programs to maximize
total financial assistance available to students.� Effective 7/1/2026.� (CD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.