House passes bills aimed at strengthening Hawaiʻi’s workforce

Several bills advanced by the House Committee on Labor address priorities set by the House Majority at the outset of the 2026 Legislative Session, particularly relating to workforce shortages, preserving the social safety net, and diversifying and strengthening the state’s economy.

“Recognizing the short- and long-term labor challenges in Hawaiʻi, these bills advance policies to recruit and retain skilled public employees, grow the next generation of local labor, and develop a strategic plan for future workforce development,” said House Committee on Labor Chair Jackson Sayama (D-21, St. Louis Heights, Pālolo Valley, Maunalani Heights, Wilhelmina Rise, Kaimukī).

The Hawaiʻi House of Representatives adopted the following bills on third reading, and these measures now cross over to the Senate for review:

HB2335 HD1 – Relating to Workforce Development

Establishes that participants in state-funded internship and workforce development programs are eligible for internal recruitment with their sponsoring department or agency upon completion of at least 480 hours of training. Creating pathways for trainees to transition into full-time employment aims to expand workforce development, fill longstanding vacancies, and support the next generation of public servants.

HB1661 HD1 – Relating to Cafeteria Plans

Specifies that the maximum contribution and carryover amounts for a public service flexible spending account plan (so called “cafeteria plans”) are set in accordance with the annual limits prescribed by the Internal Revenue Service (IRS). Given the rising cost of living in Hawaiʻi, aligning employer-sponsored benefit arrangements with IRS-prescribed annual limits helps public employees offset costly out-of-pocket health and dependent care expenses.

HB2116 HD2 – Relating to Grants

Appropriates funds to the Office of Community Services (OCS), under the Department of Labor and Industrial Relations, to award grants to certain nonprofit organizations that assist residents in qualifying for federal aid programs. In response to new federal requirements directed at able-bodied adults without dependents, this legislation protects residents’ access to crucial federal medical, food and housing programs by supporting Hawaiʻi’s nonprofits, which deliver important services to the communities that they serve.

HB1859 HD1 – Relating to Workforce Development

Requires the Workforce Development Council to recommend to the Governor, a comprehensive Statewide Workforce Strategy for inclusion in the State Unified Plan and be responsible for facilitating the alignment of workforce development efforts and programs conducted by state departments and agencies to achieve the State Unified Plan and the Comprehensive Statewide Workforce Strategy. This bill aims to improve Hawaiʻi residents’ access to jobs that provide a sustainable living wage by fostering coordinated efforts among partner organizations within the framework of the statewide strategy.

HB1851 HD3 – Relating to Taxation

Establishes an apprenticeship program income tax credit for wages paid to each apprentice incurred by a taxpayer for a qualified apprenticeship program. The program seeks to incentivize employers in the private sector to expand apprenticeship opportunities, retain local talent and expand workforce opportunities in Hawaiʻi.