The country’s first-ever federal tax-credit school voucher program gives states the opportunity to opt in, but that decision is not so straightforward in Hawaii.
Under President Donald Trump’s sweeping tax and spending package, individuals and businesses can receive a 100% federal tax credit — capped at $1,700 per individual — for donations to nonprofit Scholarship Granting Organizations, which then award private school scholarships to K–12 students.
The program, set to launch in 2027, is designed to expand educational access and increase school choice nationwide. But it requires states to formally opt in to participate.
The Hawaii constitution prohibits public funding of private education, and state leaders are now grappling with whether, and how, the new federal program might fit within those limits.
“The governor’s office, in coordination with the Hawai‘i State Department of Education, is closely evaluating the program’s structure, its implementation requirements, and its compatibility with Hawai‘i’s constitutional prohibition on the use of public funds for private education,” the state Department of Education spokesperson said in a written statement to the Honolulu Star-Advertiser.
State officials also have engaged Hawaii’s congressional delegation and are awaiting guidance from the U.S. Treasury Department on administration details should Hawaii opt in.
Supporters of the voucher system say the federal program offers an innovative way to support families that want alternatives to public schools but cannot afford rising tuition costs. While the tax credit does not directly fund students or schools, critics argue it amounts to a backdoor form of public subsidization of private education — something that has faced legal and political pushback in Hawaii before.
The resistance is grounded in formal legal opinions, including a 2003 ruling by then-state Attorney General Mark J. Bennett, who advised that publicly funded voucher programs would likely violate Hawaii’s constitutional ban on using public funds for private education. Over the years, legislators such as then-state Sen. Sam Slom and then-state Rep. Gene Ward have championed school choice and voucher initiatives, sparking ongoing debate within the state’s political and educational communities.
The debate unfolds in a unique educational landscape as Hawaii is the only U.S. state with a single, statewide public school district. At the same time, the state has a robust network of private schools, particularly concentrated on Oahu, where many of the state’s largest and most prestigious independent institutions are located.
Whether Hawaii opts in to the new federal program may depend on legal interpretations of the state constitution. Article X, Section 1 of the Hawaii State Constitution mandates that public funds “shall be appropriated for a statewide system of public schools,” and historically, this has been interpreted as prohibiting support for private education.
While the federal program does not involve direct state funding, critics may argue that by facilitating public tax credits in exchange for private school donations, the spirit of the law is violated. Others say the program could be a game-changer for low- and middle-income families that otherwise can’t afford private tuition — even with financial aid.
Options for families
According to the Hawaii Association of Independent Schools, there are currently 62 private schools on Oahu, 14 on Maui, 13 on Hawaii island, four on Kauai and one on Molokai. Two private higher education institutions are also based on Oahu.
While these schools offer a range of religious, cultural and teaching approaches, the cost of tuition often places them out of reach for many local families without financial aid.
Kalihi mom Angie Gomes said she has always wanted to send her children to private school because of the innovative teaching methods and smaller class sizes, but that it’s simply “too expensive” for her family.
“We want the best education for our daughters, but with tuition costs so high, it feels impossible,” Gomes said.
She has become more inclined toward private schools amid growing concerns over federal budget cuts, which have heightened worries about the future of public schools. At the same time, Gomes remains uncertain about the new school tax voucher program.
“It might help families like mine, but I’m also concerned about what it could mean for our public schools and community,” she added.
With discussions around potential U.S. Department of Education school closures and shrinking resources, Gomes fears that public schools could lose critical programs or even face closures, negatively affecting many students. While the voucher program may provide financial assistance for private schooling, she worries that diverting funds or tax credits away from public education could further strain already limited resources and opportunities for students across the state.
Private tuition, aid
Some of Hawaii’s most well-known private schools include Punahou School, ‘Iolani School and Kamehameha Schools Kapalama — all on Oahu.
Punahou, which has the largest private school enrollment in the state, will charge $32,930 for grades K–12 in the 2025–2026 school year. The school enrolled 3,757 students in the 2024–2025 academic year, and 22% of students are currently receiving financial assistance. This marks a roughly 43% increase from the school’s tuition of $22,950 in 2016–2017, according to data published in Honolulu Magazine’s 2026 Private School Guide.
At ‘Iolani School, tuition is $31,150 for 2025–2026, with an enrollment of 2,266 students. School spokesperson Michelle Hee said 25% of those students receive financial aid, and noted that tuition has risen by about $9,500 over the past decade.
“Over the past 10 years, our tuition has increased from $21,700 in the 2016–17 school year to $31,150 for the 2025–26 school year – increases have varied from year to year, but most years have seen increases of less than 4%,” Hee said in a statement to the Honoulu Star-Advertiser. “At ‘Iolani School, we are committed to keeping tuition increases minimal while ensuring that an ‘Iolani education remains accessible to families from all socio-economic backgrounds.”
She said the school’s financial aid budget now exceeds $9 million annually, growing at twice the rate of tuition increases.
“In addition to tuition support, ‘Iolani offers further assistance through the Impact Fund, which helps students with high demonstrated need cover essential non-tuition expenses such as meals, books, and campus life activities — ensuring every student can fully engage in all aspects of school life,” Hee added.
The school also receives philanthropic support through the ‘Io Society, which provides each student with an average “hidden scholarship” of $12,000 — support that allows the school to keep class sizes small and maintain a wide range of offerings.
Variety School of Hawaii, a small K–12 institution that supports students with learning differences, charges the state’s highest tuition: $44,620 for the 2025–2026 school year. However, about 90% of its 42 students receive some level of tuition assistance.
Meanwhile, Kamehameha Schools Kapalama, which primarily serves Native Hawaiian students, charges between $5,000 to $6,000 for tuition — far lower than other private institutions. It enrolled 3,192 students in 2024–2025, and 67% of students received financial assistance. The school’s mission and endowment allow it to offer deeply subsidized tuition to support Hawaiian educational advancement.
