Losing out on some $190 million for the state’s depleted coffers should give pause — even if that money goes to Hawaii residents who’ve lost their jobs or job hours due to the pandemic. But now, thanks to federal funds to come via the $1.9 trillion COVID American Rescue Plan Act (ARPA), forgoing those millions in tax revenue has become more palatable, lifting the pause.

Under Senate Bill 614, Senate Draft 2, the state would not tax unemployment insurance funds received by residents between March 1, 2020, and Dec. 31, 2020. On an instinctive and empathetic level, this seems the right thing to do. After all, taxing residents on their unemployment checks — folks who’ve lost their jobs or some part of it, and might be struggling financially — seems heartless, another kick when they’re already down.

But can Hawaii afford to do the right thing? Losing an estimated $190 million in taxes would be tough, given that the budget for state operations and services is $1.4 billion in the hole, this year and in subsequent years, due to Hawaii’s tanked economy.

Fortunately, the federal relief act was signed Thursday by President Joe Biden, and included in the $6.1 billion coming to Hawaii is about $1.6 billion to buoy state government operations. Among many other aspects, ARPA exempts up to $10,200 in unemployment benefits from IRS taxation. That same intent of support is behind SB 614: to help unemployment insurance recipients on their Hawaii taxes.

The federal-fund infusion now makes it easier to pass the bill. On Thursday, SB 614 crossed over from the state Senate to the House — but there is lingering concern on the bill’s legality since it deals with a new taxation provision. ARPA allots federal funds to help states balance their budgets, but restricts the giving of new state tax breaks to residents. More clarity is needed quickly, as the state receives federal guidance on ARPA allocations.

Prepandemic, Hawaii’s jobless rate was just 2.4%, among the nation’s lowest; when the pandemic struck, it surged to 22.3% to become among the nation’s highest, with more than 350,000 filing for unemployment insurance benefits in April alone. In these rarest of times, amid rare economic hardships, the one-time tax relief from SB 614 to Hawaii’s pandemic-hit unemployed should be granted.