They also maintain that the settlement will likely bolster support for the Native Hawaiian federal recognition bill, known as the Akaka bill.

U.S. Sen. Daniel K. Inouye said: "I was very pleased to learn of the settlement in the Kamehameha Schools case. I hope that Kamehameha Schools will now be able to carry forward its special mission and fulfill the dreams of Princess Pauahi. I am certain that the ali'i ai moku is smiling at this moment."

Hawai'i's Office of Hawaiian Affairs' chairwoman,Haunani Apoliona, said: "I think it's a glorious day for Kamehameha Schools and Native Hawaiians and those that support the schools."

In a news released issued this afternoon, Gov. Linda Lingle said: "I believe Kamehameha Schools is perhaps the most important institution for preserving Hawaiian culture for future generations. This case galvanized the Native Hawaiian and non-Native Hawaiian community and emphasized the importance of protecting programs that benefit Native Hawaiians."

She added, "While I am pleased a settlement has been reached in this case, Native Hawaiian programs will continue to be challenged, which is why it is so critical that the Akaka bill be passed."

A non-Hawaiian student denied admission to Kamehameha Schools has settled the lawsuit with Kamehameha's trustees and agreed to dismiss the federal civil rights lawsuit, which had been appealed to the U.S. Supreme Court.

The student known as "John Doe" claimed that Kamehameha Schools violated civil rights law by effectively excluding applicants who have no Hawaiian blood.

The case along with others had been awaiting Supreme Court action, but a recent update of court's electronic docket noted the Kamehameha case had been dismissed by agreement of the parties.

Kamehameha officials said in a statement this morning that the terms of the settlement will not be disclosed.

Rep. Mazie Hirono, D-Hawai'i, said the settlement allows Kamehameha Schools to focus on providing education for Native Hawaiian children. Also, she said, it may strenghten the argument for the Native Hawaiian federal recognition bill, known as the Akaka bill due to the chief sponsorship of Sen. Daniel K. Akaka, D-Hawai'i.

Hirono said Hawai'i's Congressional delegation had filed an amicus brief in support of Kamehameha Schools that urged the Supreme Court not to review a 9th Circuit Court of Appeals ruling in the case, thereby upholding the admissions policy and "restating our position that Native Hawaiians are indigenous peoples, as are Alaska Natives and American Indians."

In the aftermath of the settlement, Hirono, a co-sponsor of the bill, said, "The opponents of federal recognition for Native Hawaiians will not be able to use the pending lawsuit to stall movement of the Akaka bill."

She added, "The need for the Akaka bill remains critically important. There are still other lawsuits that can be brought to challenge federal programs that benefit Native Hawaiians."

Akaka echoed that sentiment.

"I am pleased that both parties have resolved their differences. But the matter of federal recognition for Native Hawaiians remains unresolved," Akaka said in a news release. He continued: "I remain committed to working with my colleagues in Congress to enact legislation formalizing the existing legal and political relationship that Native Hawaiians have with the United States."

Rep. Neil Abercrombie, D-Hawai'i, said the settlement means that two earlier court decisions in the lawsuit that upheld Kamehameha Schools' admissions policy effectively stand and "it's very unlikely that anyone could raise the issue against without it being dismissed."

"My understanding of both those rulings is essentially that Native Hawaiians are recognized as an indigenous people and that they have a political status," Abercrombie said. "That can move the Akaka bill forward."

Abercrombie said the political implications and legal ramifications of the Kamehameha Schools settlement were "nothing but positive" for the Native Hawaiian bill.

He said the settlement takes away the basis for the arguments by Native Hawaiian bill opponents that there are still legal questions that have to be settled.

"As of now, there are not," Abercrombie said. "That doesn't mean people will not continue to have their opinions but from the point of view of legislation, the legal issues have been resolved."

"Overall, it (the settlement) is very encouraging because it essentially preserves the court ruling," said Abercrombie, a House sponsor of the Native Hawaiian bill."

He added, "It gives encouragement to the whole question of indigenous peoples, in this instance Native Hawaiians, being able to gain control over their own assets."

Critics of the Akaka bill contend it would create an unconstitutional class of Native Hawaiians with superior political rights and give carte blanche authority to state and federal officials to give public lands, natural resources and other assets to a new Native Hawaiian government.

Earlier this month, the Bush administration expressed strong opposition to the bill, asserting that it would divide governmental power by race and ethnicity.

At a Senate Indian Affairs Committee hearing on the bill, Gregory G. Katsas, a senior Justice Department attorney, said, "We think it wrong to balkanize the governing institutions of this country along racial and ancestral lines."

The Akaka bill, first introduced in 2000, would create a process for a Native Hawaiian governing entity to be formed and gain federal recognition. The new government would be able to negotiate with the United States and Hawai'i over the disposition of Hawaiian land, assets and other resources.

The Akaka bill and another Native Hawaiian bill that addresses housing last week moved closer to a debate before the full Senate.

The Senate Indian Affairs Committee passed both bills without a recorded vote at the session.

The housing bill would reauthorize funding for Native Hawaiian housing programs for five years. It would ensure that the state Department of Hawaiian Home Lands continues to receive $8 million to $9 million annually for roads, water lines, sewer systems and other infrastructure needed for housing projects developed for those who are of 50 percent Hawaiian blood or more.