Senate Bill 1490 would create a University of Hawaiʻi relief fund to support students affected by declared emergencies and to allow the university to provide assistance without reducing students' federal financial‑aid eligibility. University witnesses said the proposal grew from the Maui wildfires and subsequent discussions with the U.S. Department of Education.

Vice President Deborah Halbert and Associate Vice President Farrah Gomes explained the bill would authorize the Board of Regents to set aside university funds, up to a specified amount in the draft text, and use them for emergency student assistance during a gubernatorial‑declared emergency. Gomes told the committee that if the statute explicitly authorized the university to provide such relief, the Department of Education would treat those state‑authorized funds differently and they would not be counted against students' federal aid eligibility.

University witnesses clarified that the bill as drafted is not intended to create a separate general‑fund appropriation but to provide a statutory pathway that makes university‑provided relief compatible with federal aid rules. Committee members asked how the special fund would be capitalized and whether funds would lapse back into program ID 900; university counsel explained the fund would draw on university funds used for student support and emphasized that the bill's authority is intended to protect students' federal aid standing.

The committee recommended SD1 technical amendments and agreed to include clarifying language in the committee report. The measure was advanced to the next committee with the recommended amendments.