The Hathaway Scholarship, established in 2005 and funded by a roughly $600 million endowment from mineral revenues, provides merit-based aid to Wyoming high school graduates attending in-state public colleges or the University of Wyoming. Awards range from $840 to $1,680 per semester (prorated for part-time), depending on the tier (Opportunity, Performance, or Honors), with a total cap equivalent to eight semesters. The program aims to retain talent in Wyoming and boost college attendance.

SF36 includes loosening restrictions, such as eliminating continuous enrollment requirements, minimum credit loads (e.g., 6-12 credits per semester), satisfactory progress requirements and more.  This is counterproductive for several reasons, potentially undermining the program's fiscal sustainability, student success, and core incentives.  Notes from the Wyoming Legislative Service Office (LSO) also highlight "indeterminable" long-term expenses, as these changes could increase payouts by allowing sporadic or delayed usage, leading to higher demand on the fund. 

The current semester-based system enforces accountability through ongoing eligibility checks (e.g., maintaining GPA and enrollment). A lump sum removes these "guardrails," potentially encouraging procrastination or non-completion. This counterproductive shift could lower graduation rates, as data shows merit-based programs succeed when tied to performance milestones. Without minimum credits or continuous enrollment, students might treat the award as a "blank check," leading to wasted funds on partial educations.

The Hathaway program was designed to promote efficient in-state degree attainment and workforce development. Lump sums will incentivize short-term thinking of young recipients, such as using funds for non-degree pursuits or dropping out after receiving the payout, undermining the merit-based ethos that rewards sustained achievement. This is particularly concerning for lower-tier recipients (e.g., Opportunity level), who already face higher attrition risks.

Tuition has surged 134% since 2006 in part due to the funds coming from the Hathaway Scholarship program.  This has added immense unfair financial burdens to low-income students, alienating families who value fairness and opportunity for all without government picking winners. 

By using public funds to subsidize higher education exclusively at state institutions, the program bares partial responsibility for distorting the education market, discouraging private options or out-of-state choices, and expanding government's role beyond core constitutional duties. 

All of this raises questions about whether public funds should subsidize college at all especially when alternatives like private scholarships, loans, or work-study programs could encourage more initiative.  And despite aims to keep Wyoming youth in-state, evidence suggests the program hasn't stemmed brain drain effectively. 

In summary, while well-intentioned, the Hathaway Scholarship's flaws in cost, equality, and outcomes make a compelling case for reform or replacement with more targeted, market-driven approaches that respect taxpayer dollars and promote genuine opportunity.