Hawaii lawmakers end session after killing UH athlete payment plan

Tax package with new solar credit limits passes; lawmakers also approve bill targeting Citizens United
The Senate rejected a bill by a single vote that would have contributed $2.5 million in taxpayer money to set up an endowment system for student-athletes.
Published: May 8, 2026 at 5:18 PM HST

HONOLULU (HawaiiNewsNow) - State lawmakers adjourned their annual session Friday after four months of debates that included a failed attempt to fund University of Hawaii athlete name, image and likeness (NIL) payments.

Senate Bill 3263 would have contributed $2.5 million in taxpayer money to set up an endowment system for student-athlete NIL payments.

The measure passed the House but fell one vote short of the 13 needed for passage in the Senate.

Ways and Means Chair Donovan Dela Cruz said the university was sent a letter that said a plan that would combine state funds with money from tuition and fees “poses challenges the University cannot overcome.”

Although sources said UH later told lawmakers that they could work with the bill, Dela Cruz said, “Where was that in writing?” and pointed out that UH has more than $400 million saved in a tuition and fees special fund.

There was vigorous debate in the House over using public funds to pay athletes.

“Our athletics program carries a pride in an entire state, but it has to compete in a national marketplace that is moving faster every year,” said Rep. Andrew Garrett, House Higher Education Chair. “And in this new landscape, standing still does not preserve tradition. Standing still means falling behind.”

Sen. Kim Coco Iwamoto questioned the long-term cost of the program.

“We’re chasing and chasing, and will UH come back and ask us for more money next year and more money,” Iwamoto said. “Will we ever really be able to compete and how much will we have to gather from other important needs?”

Tax package passes with new solar limits

Lawmakers passed a tax package that preserved tax breaks but increased taxes on the wealthy. The measure also included new limits on tax credits for solar installations.

Rep. Diamond Garcia said the package expanded on promises made two years ago.

“I am very happy overall that we preserve the promises made two years ago, and not only preserve it, but gone even deeper for the lower- and little-income families,” Garcia said.

Rep. Nicole Lowen, House Energy and Environment Chair, raised concerns about the solar credit changes, which she said made it unclear how much would be available for any individual system.

“Wealthier households may be able to absorb the risk and wait and see how the numbers work out,” Lowen said. “Working families can’t. They need predictability before making a major investment in a system that will lower their electricity bill.”

Corporate election spending measure approved

Lawmakers also passed a bill challenging the Supreme Court’s Citizens United ruling, which gave corporations free speech and spending rights in elections. The measure would redefine businesses.

“They may not spend money to influence our elections, because when corporations enter the political sphere, they do not simply participate, they dominate,” said Rep. Kanani Souza.

Rep. Chris Muraoka warned the bill could face legal challenges.

“The intent of this bill is amazing and maybe we should take a look at it and figure out another way on how to get the same results, but this bill will almost guarantee to end up in court and the people of Hawaii who are already struggling to afford life here will have to foot another bill,” Muraoka said.

The session ended with farewells to Sen. Karl Rhoads and Rep. Della Au Belatti, both 20-year veterans of the Legislature.

House Speaker Nadine Nakamura was emotional as she reflected on the session’s challenges.

“I am proud to serve alongside, and the people of Hawaii are better off because of what we have done here,” Nakamura said.

House Minority Leader Lauren Matsumoto said she saw missed opportunities.

“I still feel there were many missed opportunities to reduce government spending and tightening our belts just as our residents have had to do,” Matsumoto said.

The session ended with a ceremonial singing of “Hawaii Aloha,” with lawmakers from both Houses and political parties joining hands in circle on the Senate floor.

Most lawmakers now face re-election campaigns.

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