HOUSE PASSES STATE BUDGET

News Release from Hawai'i House Democrats, March 12, 2025

Honolulu, Hawaiʻi – The Hawaiʻi House of Representatives today approved the Fiscal Year 2025-2026 and FY 2026-2027 operating and capital improvement budget. After passing its third reading on the House Floor, HB300 – Relating to the State Budget will now move to the Senate for consideration.

House Finance Chair Kyle T. Yamashita (D-12, Upcountry Maui) reflected on the previous session, which focused on establishing a framework for Maui wildfire recovery, strengthening the state's biosecurity, and restructuring tax brackets by doubling standard deductions to provide working families with more take-home pay. He acknowledged that this year's budget is a starting point, reflecting the House's ongoing commitment to investing in the state's core services and safety net.

"HB300 HD1 reflects the priority of your House Committee on Finance to craft a responsive and responsible budget dedicated to supporting safety net and core programs while preparing ourselves for difficult decisions ahead," said Chair Yamashita. "Equally important will be Congressional and Presidential action in the coming weeks as a federal budget is developed."

Chair Yamashita emphasized the importance of balancing immediate needs with the responsibility to prepare for unforeseen circumstances, due to uncertainty taking place in Washington D.C. The House draft of the state budget includes a $200 million appropriation set aside to strengthen reserves and withstand future funding pressures.

The FY2026 budget also allocates $3.6 billion, and the FY2027 budget allocates $2.4 billion for Capital Improvement Projects. These funds are dedicated to addressing critical community needs, including housing, agriculture, natural resources, transportation, public safety, and economic development.

House Finance Capital Improvement Projects Chair Lisa Kitagawa (D-48, Kāne‘ohe, ‘Āhuimanu, Kahalu‘u, Waiāhole, Ka‘a‘awa) stated, "This biennial CIP budget includes important items that support our communities' needs and prioritizes areas like health and safety, affordable housing, and education."

While the House draft of the state budget is balanced, revenue projections from the Council on Revenues, expected today, will provide additional clarity and guide final budget decisions for the biennium.

"This budget is a starting point for conference deliberations next month.  It reflects our House priorities as we make careful and responsible decisions to prepare for the uncertainty of federal action," stated Chair Yamashita. "We have the tools and options necessary to ensure a responsible budget that will take us into the interim and prepare for the 2026 Session."

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HB300: Text, Status

Attachments:

2025.03-12 HB300 HD1 OPERATING HIGHLIGHTS_FINAL.pdf

2025-03-12 HB300 HD1 HIGHLIGHTS CIP Budget Final.pdf