Helton analyzes state budget, federal funding cuts

from Grassroot Institute of Hawaii, August 25, 2026

State lawmakers considered raising taxes last session in response to possible federal funding cuts. They ended up deciding against many of the tax hike proposals, but just how much federal funding was at risk?

Grassroot policy analyst Jonathan Helton appeared on the H. Hawaii Media network with host Johnny Miro on Aug. 23 to answer that question. 

Helton explained that the state expects to receive about 19% of its roughly $20 billion budget — or $3.9 billion — from the federal government in the fiscal year that began July 1, 2026. Federal changes to the Supplemental Nutrition Assistance Program will increase the amount of funding the state must put toward this joint federal-state endeavor. 

But, Helton argued, Hawaii has options for finding revenue that do not involve tax hikes.

He pointed to nearly $500 million sitting idle in special funds and approximately $190 million tied up in vacant state positions that agencies have ranked as low priority to fill.

For the upcoming year, Helton suggested that lawmakers might again look for new revenue, and he offered them this advice: “First, what are the goals? And then ask the question, ‘Are there ways to get to those goals without increasing taxes on people?’”

To listen to the entire interview, click on the image below.