HOUSE FINANCE COMMITTEE APPROVES STATE BUDGET

$21.19 Billion Budget Invests in State's Core Services and Safety Net

News Release from Hawai'i House Democrats, March 5, 2025

Honolulu, Hawaiʻi – After holding numerous hearings throughout the 33rd Legislative session, the House Finance Committee today approved the FY 2025-2026 and FY 2026-2027 operating and capital improvement budget.

House Finance Chair Kyle Yamashita (D-12, Upcountry Maui) emphasized the committee’s strategic approach in crafting the House draft of the state budget, focusing on core services and safety net areas, including health and human services, the environment, and lower and higher education. The budget also aims to strengthen the state's financial resilience by bolstering reserve funds to prepare for potential economic downturns.

"This budget is based on the January Council on Revenues' projections, making it optimistic at best. However, we have included key items we believe are essential to keep the discussion going with the Senate. Additionally, we are closely monitoring updates from our federal counterparts on continued resolutions and potential federal funding cuts that could impact Hawaiʻi residents," said Chair Yamashita.

"The House draft of the State Budget is a work in progress, and we will continue our discussions with our community partners as we move forward," said Capital Improvements Project (CIP) Chair Lisa Kitagawa (D-48, Kāne‘ohe, ‘Āhuimanu, Kahalu‘u, Waiāhole, Ka‘a‘awa). "The CIP budget includes many key investments to address the cost of living for working families—particularly in healthcare, affordable housing, and education."

The Finance Committee also approved the budget bills for the Office of Hawaiian Affairs (HB410 HD1) and the Hawaiʻi State Judiciary (HB400).

These bills, along with the House draft of the budget bill (HB300), will now proceed to the House floor for third reading and are expected to cross over to the Senate on Wednesday, March 12.

###