Hawai’i, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 31 percent (43,000) of the state’s children 0-8 live in households below 200 percent FPL (2022). This is a decline from the 30 percent rate (47,000 children) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: Moderate
Native Hawai’ian children aged 0-8 are moderately more likely to be living in households below 200 percent FPL than are Asian and non-Hispanic White children.2
State General Fund Appropriations: Increasing
Hawaii’s governor signed the state’s biennial fiscal 2026-2027 budget into law in June of 2024, following a series of line-item vetoes totaling $110 million. The enacted budget provides for total spending of $19.8 billion in fiscal 2026 and $19.7 billion in fiscal 2027. General fund spending totals $10.53 billion in fiscal 2026 and $10.58 billion in fiscal 2027. The budget also appropriates $3.30 billion in fiscal 2026 and $2.3 billion in fiscal 2027 for capital improvement projects. General fund tax revenues from the March forecast are projected at $9.82 billion in fiscal 2026, a 2.25 percent decrease from fiscal 2025, and $10.10 billion in fiscal 2027, a 2.9 percent increase from fiscal 2026.3
Key Revenue Sources (after Federal Transfers):4
Hawaii collects a relatively large amount in sales tax revenue because its general excise tax is levied on all business activities, whereas most state general sales taxes are only levied on the final transaction and mostly on goods (not services).
State Budget Rules:4
Hawaii uses a biennial budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. Hawaii also limits spending growth with a formula tied to the state’s personal income growth. The rule is binding and requires a two-thirds legislative supermajority to override it. The state also imposes limits on total authorized debt and debt service incurred by the state.
There is no permanent state funding stream—such as lottery revenue, nicotine tax, or trust fund distributions—dedicated by statute to early childhood supports.9 (Examples of states with such funding in place can be found in the Alliance’s Revenue and Early Childhood Finance resource center.)
Political Alignment: Aligned Democrat
During the 2025 session, the state’s Senate and House were both Democrat controlled. The state’s Governor was also a Democrat.6
Types of Common Ballot Measures Available.6 One
Early Childhood Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:8
Highlights from the state’s early childhood policy advocacy community include:9
In 2025, Hawai‘i built on significant early childhood policy gains to further expand access to the Preschool Open Doors (POD) subsidy program. Following a major funding increase in 2023 and key administrative rule changes in 2024—including expanding eligibility to 3-year-olds, extending the application window to year-round, and increasing the income limit—advocates successfully advocated for additional statutory and regulatory reforms.
Act 203 (Session Laws of Hawai‘i, 2025) significantly expands POD. It broadens POD eligibility to include 2-year-olds, empowers the Department of Human Services (DHS) to waive family co-payments, and removes burdensome accreditation requirements for providers. It also authorizes DHS to implement a streamlined, year-round enrollment process.
Complementary changes to Hawai‘i Administrative Rules (HAR 17-799) raise income eligibility to 500 percent of the federal poverty level, cap co-payments at 3 percent of household income (up to $45/month), and provide temporary support for families experiencing homelessness or domestic violence while working through judicial barriers
These achievements are the result of sustained, collaborative advocacy and continue to build a more equitable early childhood system—ensuring that more working families across Hawai‘i can access affordable, high-quality early education.
Our key ally in in Hawai’i, Hawai’i Children’s Action Network, is the leading children’s advocacy organization in the state. The organization builds policy-driven coalitions, mobilizes family advocates, and publishes data reports to drive progress on important issues such as early childhood education, economic justice, oral health, and child abuse and neglect prevention.
Hawaii Children’s Action Network is working to advance early childhood policies in several areas:
Preschool and Pre-K
Child Care
Child Care Workforce
Infant & Child Health
Child Welfare
Family Economic Security
Paid Family and Medical Leave
Early Childhood Governance
Click here for more information on advocates’ policy agenda.
Alliance allies at Hawaiʻi Children’s Action Network (HCAN) worked in coalition with partner organizations this session to pass legislation that will improve economic security for children and families – particularly those who have been most impacted by structural racism and continue to have the lowest wages.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2025.
4 Urban Institute, State Fiscal Briefs, June 2024.
5 National Conference of State Legislatures, 2024 State & Legislative Partisan Composition, April 29, 2024.
6 Ballotpedia, Ballot Measures by State, Kids Count Data Center, retrieved July, 2024.
7 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
8 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2024; and 2024 Prenatal-to-3 Legislative Highlights, Prenatal-to-3 Policy Impact Center, July, 2024.
