Proposed Budget - Fiscal Years 2026-2027
On December 16, Hawaii Governor Josh Green released his budget proposal for the next biennium, covering fiscal 2026 and fiscal 2027. The budget calls for total spending of $20.55 billion in fiscal 2026, a 7.4 percent increase from fiscal 2025, and $20.46 billion in fiscal 2027, a 0.4 percent decrease from fiscal 2026’s recommended level. General fund spending is recommended at $10.47 billion in fiscal 2026, a 1.5 percent increase from fiscal 2025, and $10.54 billion in fiscal 2027, a 0.7 percent increase from fiscal 2026. The budget is based on general fund revenue estimates of $11.06 billion in fiscal 2026 (a 2.5 percent increase from fiscal 2025’s projected level) and $11.42 billion in fiscal 2027 (a 3.3 percent increase from fiscal 2026). The Emergency and Budget Reserve Fund (EBRF) and Hawaii Hurricane Relief Fund (HHRF) total balance as a percentage of prior year revenues is estimated at 16.6 percent in fiscal 2026 and 16.7 percent in fiscal 2027, while the ending fund balance as a percentage of prior year revenues is estimated as 9.1 percent in fiscal 2026 and 9.6 percent in fiscal 2027.
Proposed Budget Highlights
The governor’s biennium budget proposal prioritizes reducing the high cost of living, improving education, building affordable housing for working families, sheltering and caring for vulnerable Hawaii residents, and making large investments in health care, biosecurity, wildfire mitigation and infrastructure across the state. In addition, the governor noted that recently enacted tax measures will provide much needed direct relief for working families in Hawaii. Highlights of the budget include:
Housing, Homelessness, and Infrastructure
- Support for the Mayor Wright Homes redevelopment project to transform the 70-year, 364-unit public housing project into a 2,448-unit mixed-use complex for low-income and middle-income families
- Funds the Aloha Homes Program to develop 99-year leasehold units to support affordable housing efforts
- Invests in infrastructure development at UH West Oahu for University Village near the rail line
- Continues kauhale (communal living spaces) development and service provider contracts across the state
- Allocates funds for the Housing First Program, the Rapid Re-Housing Program, homelessness outreach and for civil legal services
- Supports the Rental Housing Revolving Fund for the development of affordable housing across the state
- Provides for the Tier II Rental Housing Revolving Fund, which specifically supports the development of housing for those earning 60 percent to 100 percent of the area median income
- Funding for the Dwelling Unit Revolving Fund which supports infrastructure investments
- Allocates funds for student housing at the University of Hawaii to ensure the existing dorm inventory remains active to support the student experience
Educational Opportunities
- Support for the for the Health Care Education Loan Repayment Program (HELP), which pays off educational loans for primary care and behavioral health providers who care for patients in designated Health Professional Shortage Areas of Hawaii
- Funding for the Department of Education to continue critical programs such as Summer Learning Hubs, Advanced Placement classes, Hawaiian language immersion programs and for increased support for school coaches and athletics transportation
- Provides for the Department of Human Services to continue support for critical social programs like child protective services, Benefit, Employment, and Support Services Division (BESSD), and rental assistance
Environment and Resilience Efforts
- Funding for the State Fire Marshal and the development of the agency
- Allocates funds for the Department of Transportation Fire Mitigation program
- Provides for the Lahaina Small Boat Harbor Reconstruction
- Support for 44 positions and funds biosecurity efforts at the Department of Agriculture
- Invests in the Hawaii Invasive Species Council