Advocates are intensifying their efforts to push for improved family benefits for Hawaii’s children as key bills addressing these issues remain stalled in the Legislature.
The Paid Family &Medical Leave bills — House Bill 755, HB 695, Senate Bill 852 and SB 1054 — seek to provide working families with paid time off to care for a new child, recover from illness or assist a loved one. While the nation remains the only developed country without a national paid family leave program, 13 states and the District of Columbia have implemented similar laws.
Advocates, including the Hawaii Children’s Action Network, are calling on the state to join them.
HCAN is also advocating for an increase in the Child and Dependent Care Tax Credit — HB 753.
The cost of preschool in Hawaii averages over $13,000 per year, and working families are in dire need of help with child care expenses, the organization said. In 2023, Hawaii lawmakers took an initial step to support families by quadrupling the maximum amount that taxpayers can claim for child and dependent care expenses. However, a cap on the percentage of care expenses that can be claimed with the CDCTC makes it nearly impossible for families to access these increased amounts.
The bill proposes increasing the CDCTC percentage cap, allowing working families to receive more assistance for child care costs.
Both HB 755 and HB 753 are stalled in the House Finance Committee, and related bills have not been heard after passing their first hearings.
State Rep. Jeanne Kapela (D, Volcano-Hawaiian Ocean View) told the Honolulu Star-Advertiser that the ongoing federal instability has had a trickle-down effect on state legislation. She explained that the uncertainty in federal funding has made it difficult for the state to plan and allocate resources for essential programs.
“The problem is that when you look at what’s happening at the federal level, there’s a trickle down to our state,” Kapela said. “It’s hard for the state to figure out what to do here, and what gaps are we going to need to fill?” She added that the uncertainty surrounding funding has caused delays in passing important bills like paid family leave and tax credits.
Kapela emphasized that while some bills have been stalled, there is still potential to make progress, particularly if there is a related legislative vehicle.
“We’re still at a point where if there is a vehicle that’s related to something, we could potentially do something,” Kapela said. “We’re not at the end, but we really have to figure out how to save money on the state side so we can come back and fix the holes that we’re going to ultimately have to fix.”
She noted that the state might have a clearer financial outlook once Congress passes its budget bill in March.
Nicole Woo, HCAN’s director of research and economic policy, explained that nearly half of Hawaii’s children live in households experiencing financial hardship. While almost 1 in 8 are in poverty, an additional 1 in 3 live in households that aren’t officially poor, but still struggle to afford the basics.
In testimony for HB 753, Aloha United Way argued that tax credit adjustments like those in the bill are effective tools to reduce poverty and stabilize families, especially during times of crisis or when care-giving requires a family member to leave paid employment.
The organization highlighted that the proposed changes would provide much-needed financial relief for ALICE — asset-limited, income-constrained, employed — families, who are employed but earn too little to meet basic living costs.
The 2024 State of ALICE in Hawaii report showed that 40% of Hawaii’s residents are considered ALICE, and 15% of households are struggling with the financial costs of caregiving for someone other than a child.
Woo also advocated for the passage of the Paid Family &Medical Leave program, arguing that paid leave benefits children by supporting their parents.
She cited research through HCAN showing that states with paid family leave enjoy significant health, social and economic benefits, particularly for working women, who are healthier, more economically secure and more likely to remain in the workforce.
The bill would provide up to 12 weeks of parental, care-giving, deployment or safe leave per year, along with up to 26 weeks of medical leave, in line with Hawaii’s law on temporary disability insurance.
