House Finance Committee approves state budget

The House Finance Committee on Wednesday, passed HB1800 HD1, the House draft of the state supplemental budget, amending the operating and capital improvement budget for fiscal biennium FY 2026–2027.

The $10 billion budget prioritizes investments that support local families, strengthen essential public services, and build long-term resilience for Hawaiʻi’s communities. Funding is directed toward critical areas including health and human services, environmental stewardship, disaster preparedness, public safety, and education.

“This budget reflects the state’s efforts to step up and address funding gaps created by federal reductions to critical lifeline programs, while maintaining a balanced approach that protects essential government services,” said Chris Todd, House Finance Chair (D-3, Portion of Hilo, Keaukaha, Orchidlands Estate, Ainaloa, Hawaiian Acres, Fern Acres, portions of Kurtistown and Kea‘au).

Todd explained that the state was left with no alternative but to assume a larger share of costs for essential services such as SNAP and Medicaid after federal support was reduced, forcing the House Committee on Finance to carefully prioritize funding to keep these critical programs available to Hawaiʻi’s communities. The Committee faced the difficult task of protecting the most vulnerable populations while balancing the needs of other essential state programs.

Chair Todd expressed appreciation for the administration’s collaboration during the budget process.

“I appreciate the Governor’s good-faith efforts in responding to the state’s fiscal challenges. Throughout this process, we worked to ensure we are not compounding long-term financial pressures while continuing to protect the health and safety of our residents.”

HB1800 also includes $1.4 billion in Capital Improvement Project (CIP) funding to support statewide infrastructure, healthcare improvements, education, affordable housing, and transportation systems across Hawaiʻi.

“These projects support diverse communities and the many needs of the state, continuing our effort to increase the availability of affordable housing, prioritizing the safety of our communities, and supporting the next generation by providing funding for education for preschool and college,” said CIP Chair Lisa Kitagawa (D-48, Kāne‘ohe, ‘Āhuimanu, Kahalu‘u, Waiāhole, Ka‘a‘awa).

Additionally, the CIP budget makes targeted investments to strengthen environmental resilience, including coastal resource protection, wildfire risk reduction, shoreline preservation, and community-based natural resource management – efforts to help Hawaiʻi withstand future challenges.

In conjunction with the state budget bill, the Finance Committee today passed HB2095 HD1, which amends the FY 2026-2027 budget for the Hawaiʻi State Judiciary.

The budget bills will proceed to the House floor for third reading and are expected to cross over to the Senate on Wednesday, March 18, 2026.