State House passes $21B biennium budget focused on core services, safety net

The Hawaiʻi House of Representatives on Wednesday approved a state biennium operating and capital improvement budget for fiscal years 2025-26 and 2026-27 focused on core services and safety net programs.

After passing its third reading on the House floor, House Bill 300 now moves to the state Senate for consideration.

House Finance Committee Chairman Rep. Kyle Yamashita of Maui reflected on the previous session, which focused on establishing a framework for Maui wildfire recovery, strengthening the state’s biosecurity and restructuring tax brackets by doubling standard deductions to provide working families with more take-home pay.

He acknowledged that this year’s budget is a starting point, reflecting the House’s ongoing commitment to investing in the state’s core services and safety net.

“HB 300 HD1 reflects the priority of your House Committee on Finance to craft a responsive and responsible budget dedicated to supporting safety net and core programs while preparing ourselves for difficult decisions ahead,” said Yamashita. “Equally important will be congressional and presidential action in the coming weeks as a federal budget is developed.”

He emphasized the importance of balancing immediate needs with the responsibility to prepare for unforeseen circumstances because of uncertainty in in Washington.

The House draft of the state budget includes a $200 million appropriation set aside to strengthen reserves and withstand future funding pressures.

The fiscal year 2025-26 budget also allocates $3.6 billion, and the fiscal year 2026-27 budget allocates $2.4 billion for capital improvement projects.

These funds are dedicated to addressing critical community needs, including housing, agriculture, natural resources, transportation, public safety and economic development projects.

House Finance Capital Improvement Projects Chairwoman Rep. Lisa Kitagawa of Oʻahu said: “This biennial [capital improvement projects] budget includes important items that support our communities’ needs and prioritizes areas like health and safety, affordable housing and education.”

While the budget measure is balanced, revenue projections from the Council on Revenues will provide additional clarity and guide final budget decisions for the biennium.

Yamashita said this is a starting point for conference deliberations next month and the measure reflects priorities of the House.

“We have the tools and options necessary to ensure a responsible budget that will take us into the interim and prepare for the 2026 session,” he added.

Puna state Rep. Greggor Ilagan reported that the budget bill also includes funding for a feasibility study for alternate routes mauka and makai to Highway 130 in Puna to alleviate congrestion and provide additional access in the event of natural disasters and emergencies.

Funding in the amount of $1 million previously secured by Ilagan for Hawaiʻi County to do a study for the feasibility of an alternate route makai of Highway 130 expired June 30, 2024, because the county failed to release its required $500,000 match for the study.

“There are still a few more hurdles as the budget moves through the Senate, conference and finally to the governor,” said Ilagan in a Facebook post Wednesday. “Now, we wait and continue to advocate.”

Here are other highlights from the operating budget that impact the Big Island or statewide programs that could or will help Big Island residents:

Department of Accounting and General Services

• $3,978,275 in FY26 and $125,000 in FY27 for voting system contract, digital voter information guide and electronic registration information center.
• $800,640 in both years and 10 positions to establish the Business Transformation Office.

Department of Agriculture

• $12,735,015 in both fiscal years and 44 positions for biosecurity.

Department of the Attorney General

• $295,476 and 4 positions in both fiscal years for sex offender registry program.
• $152,767 in FY26 and $305,531 in FY27; 2 positions for Medicaid Fraud Control Unit.
• $196,863 in FY26 and $271,445 in FY27; 2 positions for the Hawai‘i Correctional System Oversight Commission.
• $3,100,000 in both fiscal years for Child Support Enforcement Services.

Department of Budget and Finance

• $572,695,000 ceiling increase for the Mass Transit Special Fund.
• $1,653,691 in both fiscal years to increase pay for deputy public defenders.

Department of Business, Economic Development and Tourism

• $1,450,000 in both fiscal years for the health care workforce development program.
• $1,000,000 in both fiscal years for the Manufacturing Assistance Program.
• $1,000,000 in both fiscal years for the Hawai‘i Small Business Innovation Research Phases II and III.
• $1,000,000 in both fiscal years for the Accelerator Grant Program.

Department of Commerce and Consumer Affairs

• $25,000 ceiling increase to participate in the Interstate Medical Licensure Compact.

Department of Defense

• $2,037,196 total in both fiscal years for the Youth Challenge Academy.
• $1,894,066 in both fiscal years and 20 positions for Hawai‘i Emergency Management Agency.

Department of Education

• $20,990,000 in both fiscal years for summer school.
• $3,925,000 in FY26 and $3,625,000 in FY27 for workforce readiness.
• $499,800 in both years for advanced placement exams.
• $10,000,000 in both years for skilled nursing services.
• $1,700,000 in both years for mental health and social-emotional well-being.
• $1,789,680 in FY27 and 20 positions for mental health interventionists.
• $463,624 in both years and 6 positions for mathematics and financial literacy curriculum initiatives and for instructional support for classroom teachers.
• $715,406 and 4 positions in both years for deputy superintendents.
• $15,000,000 in both years for increases in electricity costs.
• $3,250,000 in both years for increases in various contract costs.
• $1,500,000 in both years for soil contamination mitigation efforts.
• $4,000,000 in both years for increased nighttime security at schools.

Department of Education — Libraries

• $634,756 in both years for increases in Library Services and Technology Act State Grant.
• $500,000 in both years for increases for repairs and maintenance costs.
• $500,000 in FY26 and $250,000 in FY27 for an automated material handling system.

Department of Education — Executive Office on Early Learning

• $5,027,927 and 58 positions in FY26 and $8,236,302 and 108 positions in FY27 for public pre-kindergarten expansion.

Department of Hawaiian Home Lands

• $393,600 in FY26 and $442,800 in FY27; 3 positions for the Tribal Broadband Connectivity Program.

Department of Health

• $110,108 in FY26 and $115,108 in FY27 for a state veterinary medical officer.
• $80,545,000 in FY26 and $69,597,400 in FY27 for Hawai‘i Health Systems Corp. Regions and implementation of Epic Systems for East Hawai‘i.
• $1,838,210 in FY26 and $3,305,926 in FY27; 21 positions for Certified Community Behavioral Health Clinic certification for O‘ahu, Maui, Hawai‘i and Kaua‘i Community Mental Health Centers.
• $5,500,000 in FY26 for contracts for psychiatric beds.
• $10,100,000 in FY26 and $21,400,000 in FY27 for Medicaid 1915(c) home and community based services waiver for individuals with intellectual and developmental disabilities.
• $1,700,000 in both years for contracted services for family planning and preventative health services.
• $567,057 in FY26 and $634,112 in FY27; 2 positions to re-establish state Oral Health Program.
• $448,625 in FY26 and $897,251 in FY27; 7 positions for inspections of food establishments.
• $6,245,875 in FY26 and $5,354,942 in FY27 ceiling increase for the Bipartisan Infrastructure Law-Assistant for Small and Disadvantaged Communities grant for the Safe Drinking Water Branch.
• $15,000,000 in both years for the Healthcare Education Loan Repayment Program.
• $1,750,000 in FY26 for ambulance services for North Kona.

Department of Human Services

• $250,000 in both years for the State Rent Supplement Program.
• $250,000 in both years for the Federal Section 8 Program.
• $1,550,000 in both years for the Family Assessment Center in Waianae and Puna.
• $3,750,000 in both years for the Housing First Program.
• $3,750,000 in both years for the Rapid Re-Housing Program.
• $3,500,000 in both years for the Comprehensive Child Welfare Information System.
• $3,000,000 in both years for the Child Protective Services shortage differential to support recruitment and retention.
• $35,000,000 in both years for the Nursing Facility Sustainability Special Fund.
• $225,000,000 in both years for the Hospital Sustainability Special Fund.
• $6,500,000 in both years for Applied Behavioral Analysis services to increase provider payment rates.
• $14,060,000 in both years for Home and Community Based Services.
• $1,000,000 in both years for youth mental health support.
• $500,000 for sex trafficking victims support.
• $605,000 in both years for Family Resource Centers.

Department of Labor and Industrial Relations

• $4,171,130 ceiling increase for the Workforce Investment Opportunity grant.
• $2,826,373 in FY26 and $3,132,322 in FY27 for the Disability Compensation Division modernization project.
• $720,000 in FY26 and $445,000 in FY27 to implement the Hawai‘i Retirement Savings Program.

Department of Land and Natural Resources

• $1,432,728 in both fiscal years and 22 positions for fire protection program.
• $3,250,000 in both fiscal years for the Hawai‘i Invasive Species Council.
• $500,000 in both fiscal years for the Hawai‘i Ant Lab.
• $7,425,000 in FY26 and $4,530,000 in FY27 for fire response and fuels reduction.
• $800,000 in FY26 and $700,000 in FY27 for hydrologic studies.
• $5,000,000 in both fiscal years for the Dam and Appurtenances Program.
• 7 positions for Mauna Kea Stewardship and Oversight Authority.

Department of Law Enforcement

• $1,265,000 in FY26 for Fireworks Task Force.
• $825,000 in FY26 for Gun Buyback Project.
• $250,000 in FY26 and $264,000 in FY27 for Silver Alert Program.
• $5,000,000 in both fiscal years for the Department of Education Safer Watch Program.

Department of Public Safety

• $4,000,000 in both fiscal years for re-entry services.
• $100,000 in both fiscal years for reintegration documents.

Department of Taxation

• $282,296 in FY26 and $564,592 in FY27; 6 positions to implement a new online tax filing platform.

Department of Transportation

• $6,662,800 in FY26 and $4,242,800 in FY27 for Aircraft Rescue Firefighting operations.
• $14,579,800 in FY26 and $20,419,380 in FY27 for electric vehicle leasing and supplies for airports.
• $1,563,150 in FY26 and $898,150 in FY27 for automated external defibrillator and publicly accessible defibrillator units for Airports.
• $2,020,354 in FY26 for Customs and Border Protection IT equipment for Airports.
• $15,000,000 in FY26 for Highways statewide fire mitigation.
• $5,000,000 in FY26 for Highways property storage and debris removal services from homeless encampments.
• $13,048,180 in FY26 and $411,118 in FY27 for Highways Safe Routes to School Program.

University of Hawai‘i

• $800,000 total for University of Hawai‘i at Hilo Athletics.
• $357,500 in FY26 and $475,000 in FY27; 5 positions for the School of Nursing.

Here are highlights from the capital improvement budget that impact the Big Island or statewide programs that could or will help Big Island residents:

Affordable Housing

• Total of $408 million for affordable housing projects statewide, including: $62 million for critical infrastructure projects, $290 million for financing programs (Rental Housing Revolving Fund and Dwelling Unit Revolving Fund) and $56 million for Ka Lei Momi Development Project statewide.

Agriculture

• $16 million for improvements to State irrigation systems and reservoir safety.
• $4 million for health and safety improvements.
• $11 million for the College of Tropical Agriculture and Human Resilience.

Defense

• $10 million for siren maintenance and modernization statewide.

Education

• Total of $480 million for improvements and repairs to school facilities statewide, including: $150 million for deferred maintenance projects, $50 million for health and safety and $20 million to address compliance statewide.
• $143 million to support additional education-related priorities of Hawaiian Home Lands.
• $40 million for repair and maintenance projects statewide.

Health

• Total of $116 million for health care services statewide, including: $25 million for the new Kea‘au Benioff Medical Center, $13 million for Kona Community Hospital’s new Emergency Department and $132 million (including federal match) for wastewater and safe drinking water projects.

Land and Natural Resources

• Total of $60 million for land and natural resources statewide, including: $10 million for watershed protection initiatives, $4 million for rockfall mitigation, $8 million to monitor the health of drinking water aquifers and $9 million for Kawaihae small boat harbor.

Libraries

• $54 million for the Hawai‘i State Library System.

Public Safety

• $7 million to address Americans with Disabilities Act compliance statewide.
• $5 million for security perimeter upgrades.

Transportation

• $1.78 billion for airports.
• $142 million for commercial harbors.
• $1.5 billion for state highway system.

University of Hawai‘i

• Total of $333 million for University of Hawai‘i facilities statewide, including: $102 million for community colleges statewide and $15 million for improvements at University of Hawai‘i at Hilo.

You can read the full text of House Bill 300 online.