$10 billion Hawaiʻi state budget advances to House Floor for final vote

The House Finance Committee passed HB1800 HD1, the House draft of the state supplemental budget, amending the operating and capital improvement budget for the fiscal biennium year 2026–2027.

In conjunction with the state budget bill, the Finance Committee also passed HB2095 HD1, which amends the FY 2026-2027 budget for the Hawaiʻi State Judiciary.

The budget bills will proceed to the House floor for third reading and are expected to cross over to the Senate on March 18.

The $10 billion state budget prioritizes investments that support local families, strengthen essential public services, and build long-term resilience for Hawaiʻi’s communities, according to a news release from the Hawai‘i State House. Funding is directed toward critical areas including health and human services, environmental stewardship, disaster preparedness, public safety, and education.

“This budget reflects the state’s efforts to step up and address funding gaps created by federal reductions to critical lifeline programs, while maintaining a balanced approach that protects essential government services,” said Chris Todd, House Finance Chair and representative from Hawai‘i Island.

Todd explained that the state was left with no alternative but to assume a larger share of costs for essential services such as SNAP and Medicaid after federal support was reduced, forcing the House Committee on Finance to prioritize funding to keep these critical programs available to Hawaiʻi’s communities, as well as balancing the needs of other essential state programs.

Todd expressed appreciation for the administration’s collaboration during the budget process.

“I appreciate the Governor’s good-faith efforts in responding to the state’s fiscal challenges,” Todd said. “Throughout this process, we worked to ensure we are not compounding long-term financial pressures while continuing to protect the health and safety of our residents.”

HB1800 also includes $1.4 billion in Capital Improvement Project funding to support statewide infrastructure, healthcare improvements, education, affordable housing, and transportation systems across Hawaiʻi.

“These projects support diverse communities and the many needs of the state, continuing our effort to increase the availability of affordable housing, prioritizing the safety of our communities, and supporting the next generation by providing funding for education for preschool and college,” said CIP Chair Lisa Kitagawa, a representative from O‘ahu.

Additionally, the Capital Improvement Project budget makes targeted investments to strengthen environmental resilience, including coastal resource protection, wildfire risk reduction, shoreline preservation, and community-based natural resource management – efforts to help Hawaiʻi withstand future challenges.