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SB3263 SD2: Taxpayer funds shouldn’t pay student athletes through NIL endowment trust

March 18, 2026, 2:30 p.m.
Hawaii State Capitol
Conference Room 309 and Videoconference

To: House Committee on Higher Education
      Rep. Andrew Takuya Garrett, Chair
      Rep. Terez Amato, Vice Chair

From: Grassroot Institute of Hawaii
          Ted Kefalas, Director of Strategic Campaigns

RE: TESTIMONY IN OPPOSITION TO SB3263 SD2 — RELATING TO THE UNIVERSITY OF HAWAII

Aloha Chair, Vice Chair and other Committee Members,

The Grassroot Institute of Hawaii is opposed to the portion of SB3263 SD2 that would appropriate taxpayer funds to a name, image and likeness endowment trust fund for student athletes to be administered by the University of Hawaii.

Inasmuch as this bill seeks to clarify NIL rules and enable students to participate in NIL contracts, it deserves praise. This is an evolving area that would be helped by greater clarity for both students and schools, though federal legislation[1] may soon change the landscape of NIL payments.

However, state funds should not be used to compensate athletes. Any legislative appropriation provided for the establishment of an NIL program should be limited to administrative and educational needs only. UH should follow the established practice of schools that pay student athletes from third-party contracts, donations, revenues and other funding sources, not taxpayer dollars.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii


Footnotes

  1. H.R. 4312 – SCORE Act, 119th Congress (2025-2026).

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