HawaiiHB 3002025–2026 Regular Session (Year 1)HouseWALLET

RELATING TO THE STATE BUDGET.

Sponsored By: Nadine K. Nakamura (Democratic)

Signed by Governor

Summary

Appropriates funds for the operating and capital improvement budget of the Executive Branch for fiscal years 2025-2026 and 2026-2027. (CD1)

State BudgetWAM

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Bill Overview

Analyzed Economic Effects

58 provisions identified: 44 benefits, 7 costs, 7 mixed.

More help with student housing costs

The University of Hawaii provides $61.5 million in fiscal year 2025–2026 and $57 million in 2026–2027 for Manoa student housing and pedestrian paths. Unspent, uncommitted funds lapse on June 30, 2030. Students in University housing must receive an allowance, stipend, or similar aid to offset part of room and board increases caused by revenue-bond debt service. They must show financial need and qualify for resident tuition. The law does not state the amount of aid.

State funds airport and harbor upgrades

From July 1, 2025, through June 30, 2027, the law funds airport, harbor, and highway programs. Airports Administration receives about $294 million for investment in 2025–2026 and $752 million in 2026–2027. Projects include work at six named airports and seven named commercial harbors, as well as other statewide improvements. Some projects are treated as needed to qualify for federal aid financing or reimbursement.

More affordable housing project funding

The law directs $56 million to the Ka Lei Momi development at Mayor Wright Homes. If construction has not started by August 31, 2026, the money may support other affordable housing projects; the corporation’s board and governor may approve an extension. The law also funds early planning: $3.05 million for Kaahumanu, $4 million for Kapaa, $4.2 million for Lanakila, and $750,000 for Nanakuli. Other planning funds include $2.35 million and $700,000 for Kaahumanu, $4 million for Kapaa, $3.5 million and $700,000 for Lanakila, and $750,000 for Nanakuli. These funds support project preparation, but the law does not set rents, the number of homes, or tenant eligibility.

Less funding for some health programs

The law reduces state operating funds for Maui Health System from $12 million to $6 million. Funding for the health care assurance program falls from $2.355 million to $2.105 million. Adult inpatient mental health operating funds fall from about $157 million to $134.7 million, and its investment capital falls from $23.65 million to $16.75 million. The budget does not specify changes to patient access, eligibility, or costs.

Changed funding for regional hospitals

The law changes funding for Hawaii Health Systems Corporation regional facilities. Operating funds fall from $216.5 million to $199.8 million, while investment capital rises from $28.8 million to $53.7 million. A further $25 million from fund R appears in the second budget column. Kahuku Hospital’s operating funds fall from $2.16 million to $2.03 million, and its investment capital falls from $5.8 million to $5 million. The budget does not change patient eligibility or state household payments.

More grant funding for small businesses

Hawaii provides up to $1 million each year in fiscal years 2025–2026 and 2026–2027 for each of three grant programs: manufacturing assistance, small business research matching, and business accelerators. Activities must support regional economic development. Eligible businesses may apply, but grants are not guaranteed. Unused funds return to the general fund at each fiscal year’s end.

Grants support Hawaii community groups

The law funds grants for community projects, including shelters, food banks, health-care facilities, cultural sites, and workforce programs. It sets aside $10 million, or as much as needed, for named organizations in fiscal year 2025–2026. Recipients must apply, qualify under state grant rules, and receive funds by contract. Other listed projects are funded as grants, but their total amount is not stated here.

More money for environmental programs

From July 1, 2025, through June 30, 2027, the law funds listed environmental management, pesticide, ecosystem protection, and native resources programs. Environmental Management receives $260.5 million in each fiscal year. The money is limited to the programs and purposes in the budget schedule.

More funding for disability and mental health care

The law raises funding for Hawaii’s developmental disabilities program from about $121.5 million to $131.4 million. Adult outpatient mental health funding rises from about $89.6 million to $93.7 million. The budget does not specify changes to individual eligibility, services, or patient costs.

New veterans home planned for Maui

The law provides $35 million in capital funding and $58 million in a separate funding category for plans, design, construction, and equipment for a new state veterans home on Maui. The project is intended to qualify for federal aid financing or reimbursement. The text does not state admission rules or individual costs.

More statewide housing for people in need

The law provides $24.4 million and $13 million for statewide Kauhale housing projects. The money covers planning, land, construction, equipment, access, services, and site improvements for people experiencing homelessness or needing housing. It funds projects, not direct household payments.

Repairs for Hawaiian home lands

The law provides $20 million for planning, design, construction, repair, and maintenance of existing infrastructure on Hawaiian home lands statewide. It does not name specific projects or provide direct payments to residents.

State boosts economic and farm programs

From July 1, 2025, through June 30, 2027, the law funds state economic development and agriculture programs. BED100 operations receive about $3.9 million each year. BED160 investment capital receives $100 million in 2025–2026 and $140 million in 2026–2027. The money is limited to the listed programs and purposes.

Capital support for Maui Health System

The Hawaii Health Systems Corporation must pay Maui Health System its budgeted capital subsidies for fiscal years 2025–2026 and 2026–2027. Maui Health System must meet the standards and conditions in state law. The provision does not state the dollar amount or create a new household benefit.

More funding for Hawaii workers

From July 1, 2025, through June 30, 2027, Hawaii funds listed employment programs. The Unemployment Insurance Program receives $341.4 million for operations each year, but this does not change benefit eligibility or payment amounts. The Made in Hawaii workforce program receives up to $865,000 each year. Unused funds for that program return to the general fund at each fiscal year’s end.

More money for public school buildings

The law funds school repairs, safety, access, kitchens, classrooms, prekindergarten, and new facilities. It makes up to $71 million available for school-based repairs, alongside separate lines of $71 million for statewide maintenance, $40 million for health and safety, $16 million for access and equity, and $50 million to finish projects. Other lines include $18 million for support facilities, $55.65 million and $16.5 million for regional kitchens, and $20 million for prekindergarten facilities. Named projects include $35 million each for Paia Elementary and a Central Maui K–8 school; $30 million and $120 million support school replacement or renovation work intended to qualify for federal aid. The state also sets aside up to $5 million each year for technology-based school safety and requires spending reports before the 2026 and 2027 legislative sessions. Other projects fund classroom additions, athletic facilities, school communications, and site improvements.

Cuts to public safety programs

The law cuts funding for several public safety and justice programs. Oahu Community Correctional Center operating funds fall from $43.9 million to $43.2 million. Criminal Investigation Division funds fall from $4.11 million to $3.46 million, and law enforcement administration funds fall from $20.9 million to $17 million. The first budget column also lists $3 million for law enforcement investment and $10 million for public safety investment capital; the second lists neither amount. Criminal justice information program funds fall from $2.61 million to $2.5 million. The budget does not specify how services change.

Less funding for watershed and parks

The law lowers operating funds for natural area reserves and watershed management from $11.7 million to $11.3 million. The first budget column lists $7.2 million for investment capital, but the second does not. Parks investment funds fall from $8.4 million to $2.15 million, and parks operating funds fall from $750,000 to $250,000. The first budget column also lists $28.65 million for ocean recreation and $1.7 million for University of Hawaii aquaria investment; neither amount appears in the second.

Changes to Hawaii disaster protection

The law funds plans and work for about 15 miles of Maui firebreaks, fuel reduction, firefighting water sources, and erosion controls. It also cuts natural-disaster prevention funding from $10.5 million to $1.2 million. Disaster-response operating funds fall from $10.5 million to $10.3 million, and the first budget column lists $725,000 for investment capital that the second does not. The firebreak funding is listed as 2,000 C; the source does not explain “C.”

Changed funding for outbreak control

The law changes funding for Hawaii’s disease outbreak control program. One fund’s operating appropriation rises from $2.33 million to $2.60 million, while another falls from $20.3 million to $3.7 million. The budget does not specify a direct household payment or a change in individual eligibility.

Mixed funding changes for UH campuses

Hilo operating funds rise from about $50.6 million to $50.7 million, and West Oahu funds rise from about $23.8 million to $24 million. Their first budget columns list $15 million and $6.5 million in investment funds, which are not shown in the second columns. Systemwide support lists 424 positions, down from 411, while another work-year count rises from 2 to 15; its investment funding falls from $50.504 million to $4,000. Community college investment funding falls from $45 million to $10 million.

Governor’s office gets operating funds

The state provides up to $4,551,872 for the governor’s office in each fiscal year from 2025–2026 through 2026–2027. The governor must submit a supplemental budget at least 30 days before the 2026 regular session.

Hospital upgrades support safer care

The law provides $3.15 million and $5.75 million for health, safety, access, and code improvements at Hawaii State Hospital. It also provides $1 million to repair the hospital’s underground chilled water line and $3.5 million for water system improvements and other work. These projects support the hospital and the people who use or work there.

Kauai water main replacement funding

The law provides $1.5 million to replace an 18-inch water main along Kuhio Highway, with another $1.5 million expected from Kauai County. State funds cannot be spent unless the county provides its dollar-for-dollar match. This is not a payment requirement for water customers.

Landfill and coastal cleanup planning

The law provides $5.5 million to design and build landfill closures and synthetic covers on Molokai. It also provides $700,000 to plan the removal of a state-owned structure in the ocean near the Shangri La Museum. The law does not set a completion date for the coastal structure work.

Local road, harbor, and water work

The law expands Kakaako work to include roads, drainage, sidewalks, paths, utilities, landscaping, and lighting; the listed amount is 5,000 C. It also funds plans and improvements at Ala Wai Small Boat Harbor, including docks, restrooms, electrical and sewer systems, and repairs; the listed amount is 3,000 C. The source does not explain “C.” A review for a Kauai water-main project lists 375 C and 375 S, and state funds cannot be spent unless the county provides dollar-for-dollar matching funds.

More fire water tanks in West Maui

The law funds six 40,000-gallon tanks for fire suppression in West Maui, up from three tanks. The provision does not create a direct household payment. Its funding schedule uses the notation “360 C,” which the source does not explain.

More funding for environmental programs

The law raises operating funds for natural and physical environment administration from about $7.0 million to $7.1 million. Environmental health administration funds rise from about $2.3 million to $5.8 million, and another environmental health program gets increases in two funds. The budget does not specify a particular service change or direct household payment.

More funding for Hawaii National Guard

The law raises operating funds for the Hawaii Army and Air National Guard from about $40.1 million to $40.2 million. The first budget column also lists $1.2 million and $3.2 million for investment capital; those amounts do not appear in the second column. The law does not specify a direct household payment.

More funding for Hawaii sheriff program

The law raises operating funds for Hawaii’s sheriff program from about $28.4 million to about $28.6 million. The budget does not specify a change in staffing, enforcement activity, or household outcomes.

More money for state security office

The law raises operating funds for the Office of Homeland Security. One fund rises from about $3.7 million to $4.6 million, and another rises from about $9.4 million to $9.6 million. The law does not specify a particular change in the office’s work or direct household effects.

Red Hill groundwater monitoring wells

The law provides $2 million in one funding category and $8 million in another for groundwater monitoring wells related to the Red Hill fuel crisis. State funds can be spent only if Honolulu provides 80% of the total project cost. That contribution is a county requirement, not a payment residents must make.

Safer, improved community sports facilities

The law funds repairs and upgrades at stadiums and gyms. It provides $8 million for Vidinha Stadium, matched by $8 million from Kauai County, and $3.5 million each for Kawananakoa Gym and Hanapepe Stadium, with equal county matches. State money for those projects cannot be spent until the county provides its match. The law also provides $700,000 for track and stadium work on Kauai.

Safer, more accessible public libraries

The law provides $25 million in each listed funding column for statewide library safety, access, and code improvements. Work includes removing hazardous materials and renovating buildings. It also provides $2 million to plan and design a new Kapaa library; that money does not include stated construction costs.

State repairs youth custody facility

The state provides $3.72 million to repair and renovate the roof of the secured-custody facility at the Kawailoa Youth and Family Wellness Center campus. The funding supports the facility and its staff; it does not change youth eligibility or household payments.

More hospital upgrades across Hawaii

The law funds building work at hospitals and care centers across Hawaii. Projects include $25 million for a new Keaau care center, available only with an equal private-sector match, and upgrades at Kahuku, Kona, Maui, and other regional hospitals. It also provides $1.5 million to plan a Kauai clinic and $500,000 for a master plan at Samuel Mahelona Memorial Hospital. These funds support health care facilities, but do not promise individual patients new services or lower bills.

More money for public health services

The law raises operating funds for public health nursing, emergency medical services, family health services, and state laboratory work. Public health nursing funds rise from about $33.0 million to $33.1 million; the first budget column also lists $8 million in investment capital, with no matching amount shown in the second. The budget does not specify changes to household eligibility, testing access, or costs.

State upgrades benefits computer system

The state provides $10 million to complete the Department of Human Services’ benefits eligibility computer system. The funding supports benefits administration; it does not change who qualifies or how much people receive.

More school safety funding

The law makes up to $40 million in fiscal year 2025–2026 bond funds available for school improvements and health-and-safety projects. Fire-alarm upgrades are a priority at Kahaluʻu, Kalākaua, Kāneʻohe, Nanakuli, and Pūʻuhale schools. The Department of Education must report on spending before the 2026 and 2027 legislative sessions.

University engineering labs get upgrades

The law provides $9 million to renovate and modernize student laboratories in Holmes Hall at the University of Hawaii at Manoa. The labs support civil, mechanical, and electrical engineering programs. The funding improves university facilities but does not provide direct payments to students.

Upgrades to youth training academy

The law provides $8 million to upgrade two buildings at the Youth Challenge Academy in Kalaeloa. Work includes plumbing, air conditioning, utilities, generators, and fire alarms. The funding improves the academy’s facilities but does not change individual eligibility or provide direct household payments.

Better state buildings and offices

The law provides $20 million for improvements and maintenance at public facilities statewide. It also provides $2 million to remodel state offices and $2 million to plan a full State Capitol renovation, including temporary space during the work. These funds support state buildings and operations, not direct household payments.

More money for university debt payments

The law raises University of Hawaii funding for debt payments from about $165.3 million to about $193.2 million. The appropriation pays the university’s debt. The law does not state that household taxes, fees, or services change.

More options for unused debt funds

During fiscal years 2025–2027, Hawaii may use general fund debt-service money not needed for debt payments on listed state costs. These include expenses tied to state bond law, bond issuance costs, and transfers for retirement benefits or health premiums. The money cannot be used for other purposes, and any unspent amount returns to the general fund at that fiscal year’s end. This rule does not create a direct household payment.

More retirement funding for university workers

The law raises University of Hawaii funding for retirement payments from about $219.9 million to about $224.3 million. This supports retirement payments for covered university employees and retirees. It does not state that anyone’s individual benefit amount increases.

New bond funding for harbor projects

The law authorizes harbor revenue bonds to pay for specified harbor improvement projects. Additional amounts for construction-period interest, reserves, and bond costs need department determination and governor approval. Harbor and related-facility revenues alone secure repayment; the law does not set a new household fee.

New state financial system funding

The law provides $35 million for plans, design, construction, and equipment for a statewide state financial system. The funding supports state agencies and their operations. It does not provide households with a direct payment or change eligibility for benefits.

Small fund supports public works projects

The state sets aside $4,000 for adjustments to public works projects. The fund must be used under the rules of the appropriations act.

More health premium funding for UH employees

The law raises University of Hawaii funding for employee health premium payments from about $68.7 million to $70 million. It does not state that employees’ premiums or out-of-pocket costs change.

Salary funds for public employees

The law sets aside up to $1,011,564 from fiscal year 2025–2026 funds for salary changes recommended by the Commission on Salaries. The governor may transfer funds between departments and programs to carry out the adjustments. The law does not state how much any employee receives.

Farm irrigation gets state funding

For fiscal year 2025–2026, the state moves up to $2 million from agricultural resource management funds into the irrigation system revolving fund. The money supports irrigation expenses, but the law does not set individual payments.

Conservation enforcement loses funding

The budget reduces conservation and resources enforcement operating funds. Fund A falls from about $20.5 million to $17.5 million, and Fund B falls from about $2 million to $921,447. One budget column also lists $4.45 million in investment capital, which is not shown in the other column. The changes affect state program resources, not individual legal duties.

Cuts to state health agency funding

The law cuts operating funds for several state health offices and programs. Medical cannabis regulation funding falls from $2.58 million to $2.43 million. Health planning funds fall from $941,225 to $726,733 in one fund and from $340,000 to $114,000 in another. Health status monitoring funds fall from $3.08 million to $2.26 million, and Department of Health general administration funds fall from $36.8 million to $32 million. The budget does not state how these cuts change individual services or household costs.

Slightly less funding for cable program

Hawaii reduces cable television program funds from $2,511,181 to $2,507,752. The law does not state a direct household payment or price change.

Unneeded project funds return to state

The law returns unrequired capital funds for listed state projects under a 2023 law. The lapse applies to listed balances, whether allotted or not and whether encumbered or not, but only to the extent the money is unrequired. Listed amounts range from $21,000 to $6 million. Households do not have to make a payment.

Mixed funding changes for Oahu hospitals

Oahu Region Fund A operating funds rise from $8 million to $14 million. Fund B operating funds fall from $48.5 million to $48.4 million, and investment capital falls from $5.6 million to $5.11 million. The budget does not say how patient services, eligibility, or costs change.

Kihei project shifts to teacher housing

The law changes a Kihei project from public prekindergarten classrooms to teacher and affordable workforce housing. The project includes planning, land acquisition, design, and construction. The listed amount is 45,000 C; the source does not explain what “C” means. The law does not state rents or household eligibility.

More funds for arts and culture

The law raises the State Foundation on Culture and the Arts’ operating funds and authorized positions. Fund A rises from $10.4 million to $14.4 million, fund N rises from $523,074 to $992,771, and positions rise from 1.50 to 17.75. The first budget column lists $8.5 million for investment capital, but the second does not.

Sponsors & Cosponsors

Sponsor

  • Nadine K. Nakamura

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 246 • No: 5

Senate vote • 4/30/2025

Senate Floor Vote

Yes: 24 • No: 1

House vote • 4/30/2025

House Floor Vote

Yes: 47 • No: 3

Senate vote • 4/21/2025

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....

Yes: 13 • No: 0

House vote • 4/21/2025

The Conference Committee recommends that the measure be Passed, with Amendments....

Yes: 15 • No: 0

Senate vote • 4/8/2025

Senate Floor Vote

Yes: 24 • No: 1

Senate vote • 3/31/2025

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 13 • No: 0

House vote • 3/12/2025

House Floor Vote

Yes: 47 • No: 0

House vote • 3/10/2025

House Floor Vote

Yes: 48 • No: 0

House vote • 3/5/2025

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 15 • No: 0

Actions Timeline

  1. Act 250, 06/30/2025 (Gov. Msg. No. 1353).

    6/30/2025Senate
  2. Act 250, on 06/30/2025 (Gov. Msg. No. 1353).

    6/30/2025House
  3. Vetoed (Gov. Msg. No. 1345), various appropriations throughout the bill.

    6/27/2025Senate
  4. Vetoed on 06/27/2025 (Gov. Msg. No. 1345), line-item appropriations veto.

    6/27/2025House
  5. Notice of Intent to veto dated 06/06/2025 (Gov. Msg. No. 1301)

    6/6/2025Senate
  6. Notice of intent to veto (Gov. Msg. No. 1301)

    6/6/2025House
  7. Received notice of passage on Final Reading in House (Hse. Com. No. 821).

    5/2/2025Senate
  8. Received notice of Final Reading (Sen. Com. No. 888).

    5/1/2025House
  9. Passed Final Reading, as amended (CD 1). Ayes, 24; Aye(s) with reservations: none. Noes, 1 (Senator(s) Awa). Excused, 0 (none).

    4/30/2025Senate
  10. Passed Final Reading as amended in CD 1 with Representative(s) Belatti, Iwamoto, Shimizu, Souza voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick voting no (3) and Representative(s) Cochran excused (1).

    4/30/2025House
  11. Transmitted to Governor.

    4/30/2025House
  12. Reported from Conference Committee (Conf Com. Rep. No. 45) as amended in (CD 1).

    4/24/2025House
  13. Forty-eight (48) hours notice Wednesday, 04-30-25.

    4/24/2025House
  14. Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 45).

    4/24/2025Senate
  15. 48 Hrs. Notice (as amended CD 1) 04-30-25

    4/24/2025Senate
  16. The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 15 Ayes: Representative(s) Yamashita, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Takenouchi, Templo, Alcos, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

    4/21/2025House
  17. The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

    4/21/2025Senate
  18. Conference Committee Meeting will reconvene on Monday 04-21-25 5:00PM in conference room 309.

    4/17/2025House
  19. Conference Committee Meeting will reconvene on Thursday 04-17-25 5:00PM in conference room 309.

    4/15/2025House
  20. House Conferees Appointed: Yamashita Chair; Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Takenouchi, Templo, Alcos, Reyes Oda.

    4/14/2025House
  21. Received notice of appointment of House conferees (Hse. Com. No. 715).

    4/14/2025Senate
  22. Received notice of Senate conferees (Sen. Com. No. 781).

    4/14/2025House
  23. Bill scheduled for Conference Committee Meeting on Tuesday, 04-15-25 2:00PM in conference room 309.

    4/14/2025House
  24. Received notice of disagreement (Hse. Com. No. 704).

    4/11/2025Senate
  25. Senate Conferees Appointed: Dela Cruz Chair; Moriwaki Co-Chair; Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella.

    4/11/2025Senate

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