As promised: Hawai‘i governor commits funding to new Big Island hospital in supplemental state budget

Hawai‘i Gov. Josh Green submitted his Supplemental Budget for Fiscal Year 2027 to the State Legislature today, which dedicates $50 million in General Obligation funds to the building of a new hospital on Hawai‘i Island.

The supplemental budge also outlines statewide investments in affordable housing, climate, infrastructure, healthcare, education, and core services for residents, while also preparing for anticipated federal changes.

The Executive Supplemental Budget proposes appropriations for Fiscal Year 2027 (FY27) that build on last year’s commitments, with a proposed total general fund appropriation of $10.58 billion in general funds for FY27, an increase from $10.48 billion proposed for Fiscal Year 2026 (FY26).

“Improving healthcare outcomes and access, reducing homelessness, building affordable housing, investing in climate resiliency, strengthening our economy and reducing the cost of living remain my administration’s core priorities,” said Green. “This budget reflects those values, with record investments in infrastructure, construction, housing and healthcare access to ensure Hawai‘i’s people can thrive.”

During a press conference on Dec. 3, the governor announced his support for a new private-public partnership for the construction of a 50,000-square-foot medical facility to house doctors’ offices and outpatient services that’s being developed by the Queen’s Health Systems on O‘ahu and leaders at Kona Community Hospital.

Green announced at that time he was committed to putting in state funds for the project.

This Supplemental Budget also proposes to add $903 million in G.O. Bonds for FY27, for a total G.O. Bond fund appropriation of 1.32 billion for FY27.

Here are some of the key highlights listed in the supplemental budget:

• Mental health: $8 million in general funds for Hawaii State Hospital psychiatric beds and to support critical staffing for overtime, to strengthen mental health services statewide.

• Food security: $13.4 million in general funds to continue administering the Supplemental Nutrition Assistance Program (or SNAP), providing direct food relief to families statewide.

• Homelessness solutions: $8 million in general funds to expand kauhale programs across the islands, providing shelter and pathways to permanent housing.

• Healthcare infrastructure: $50 million in G.O. Bond funds for West Hawai‘i Medical Office on Hawai‘i Island to strengthen its healthcare capacity and improve services for residents.

• Healthcare access: $30 million in general funds and $30 million in federal funds for Medicaid technology upgrades to meet new federal requirements, ensuring residents maintain affordable coverage. Forty-five million in general funds and $65 million in federal funds for the Medicaid program to maintain access to care.

• Emergency healthcare services: $8.1 million in general funds for aeromedical transport services to provide rapid, specialized medical care for our residents.

• Climate resiliency: First‑year implementation of the Governor’s Green Fee, a dedicated funding source for environmental stewardship, hazard resilience and sustainable tourism. Budget placeholders will be refined during the Legislative session based on recommendations from the Green Fee Advisory Committee, which represents a broad range of community stakeholders.

Green emphasized that the budget is designed to be both optimistic and pragmatic, advancing Hawai‘i’s key priorities while safeguarding against federal uncertainty.

“This budget continues the progress we have made together,” Green said. “With the Legislature’s partnership, we have already achieved major investments for our state. This proposal builds on that momentum and ensures Hawai‘i remains resilient, prepared and full of opportunity for our people.”