Governor Josh Green, M.D., today submitted his Executive Budget for the 2025-2027 fiscal biennium, outlining a robust $10.4 billion proposal aimed at tackling Hawai‘i’s most pressing issues, including the high cost of living, affordable housing, education, healthcare, and climate resilience.

“This budget reflects our core values and priorities for Hawai‘i’s future,” said Governor Green. “It emphasizes reducing living costs, expanding access to education, building affordable housing for working families, supporting vulnerable residents, and making bold investments in healthcare, biosecurity, and infrastructure across the state.”

The budget proposal includes a significant increase in funding, with general fund requests rising by 6.3% in fiscal year 2026 and 6.7% in fiscal year 2027. The total request for general funds is $10.4 billion in fiscal year 2026 and $10.5 billion in fiscal year 2027, marking an increase of approximately $620 million and $664 million, respectively.

Governor Green’s administration worked closely with legislative leaders, including Senate Ways and Means Chair Donovan Dela Cruz and House Finance Chair Kyle Yamashita, to create a budget that addresses Hawai‘i’s economic challenges while prioritizing education, energy independence, and climate resilience.

Key Budget Highlights:

1. Affordable Housing and Homelessness:
   • $56 million for the redevelopment of the Mayor Wright Homes, transforming a 70-year-old, 364-unit public housing project into a 2,448-unit mixed-use complex for low- and middle-income families.
   • $30 million for the Aloha Homes Program to develop 99-year leasehold units.
   • $62 million for infrastructure development at the University of Hawai‘i West Oʻahu for University Village, located near the rail line.
   • $50 million per year to continue the development of kauhale (tiny home) villages statewide, with 16 currently in operation.
   • $10.8 million per year for Housing First and Rapid Re-Housing programs, and homelessness outreach.
   • $50 million annually for the Rental Housing Revolving Fund to support affordable housing projects across the state.
2. Education and Workforce Development:
   • $94 million annually for the Department of Education to enhance programs such as Summer Learning Hubs, Hawaiian language immersion, and increased support for school coaches and transportation.
   • $15 million annually for the Health Care Education Loan Repayment Program (HELP) to support recruitment and retention of health care professionals in underserved areas. More than 900 medical professionals have benefited from this program since its inception.
3. Health Care and Social Programs:
   • $30 million in fiscal year 2026 for the Department of Human Services to continue funding vital social programs like child protective services and rental assistance.
   • $75 million per year for the Tier II Rental Housing Revolving Fund to support housing development for those earning 60% to 100% of the area median income.
4. Climate Resilience and Infrastructure:
   • $15 million for the Department of Transportation’s Fire Mitigation program.
   • $13 million for the reconstruction of Lahaina Small Boat Harbor.
   • $12.7 million per year to fund biosecurity efforts at the Department of Agriculture, including 44 new positions.
   • $4.1 million for the Hawai‘i Invasive Species Council.

Fiscal Responsibility and Strategic Planning:

In preparing the budget, Governor Green’s team conducted a comprehensive review of long-standing vacancies within state departments to ensure the effective use of public resources. The state’s Rainy-Day Fund remains at a historic $1.5 billion, providing a strong financial cushion even in the wake of the devastating Maui wildfires.

“The preservation of our Rainy-Day Fund, despite the challenges of a major disaster, underscores our commitment to fiscal responsibility,” Governor Green stated. “We are in a strong financial position to navigate the wildfire settlement, deliver tax relief, and continue to fund the programs our communities rely on.”

Governor Green also noted that the administration is reviewing additional legislative proposals for inclusion in the upcoming session, with revenue projections currently indicating 3.5% growth for Fiscal Year 2025.

“I look forward to continuing our collaboration with the Legislature to address Hawai‘i’s cost of living, secure funding for critical resiliency projects, and provide support for those impacted by the recent wildfires,” said Governor Green.

The budget proposal will now be reviewed by the Legislature, which will begin its session in January 2025.

The slides presented by the Governor can be seen here.
The Budget in Brief with the Executive Biennium Budget for Fiscal Biennium 2025-27 is publicly available.
Budget documents can be found online.
Double-click here to view the Facebook livestream.