Hawaii legislature approves $20 billion state budget

Hawaii lawmakers passed the budget for the next two years and began voting on more than 200 bills as the legislative session draws to a close.

by Jeremy Yurow, Court House News, April 30, 2025

HONOLULU (CN) — The Democrat-dominated Hawaii State Legislature approved a nearly $20 billion budget Wednesday while racing to complete votes on more than 200 bills that could bring policy change across the islands.

In a marathon session ahead of the scheduled May 2 adjournment, lawmakers began deliberating on issues ranging from gun control and climate change to fireworks regulation, wildfire relief and more. 

The state's biennium budget — which was agreed upon last week by House and Senate negotiators but formally passed the legislature Wednesday — authorizes $19.9 billion in spending for 2026, up almost 4% from the current fiscal year, and $19.8 billion for 2027. Appropriations from the state's general fund amount to about $10.6 billion for each of the next two fiscal years.

"The finance committee members put in a lot of long hours, and we appreciate their input as we went through this process," state Representative Kyle Yamashita, lead House budget negotiator, said Wednesday. "We were up until 1:30 or 2:00 in the morning sometimes, and we worked on Easter Sunday to try and get the budget out in a timely manner. I think we did okay.”

State Senator Donovan Dela Cruz, who led Senate budget negotiations, emphasized the comprehensive nature of the spending plan.

"From expanding core programs for vulnerable populations to supporting regional economic development that builds long-term resilience, we've worked hard to make sure our decisions today strengthen Hawaii's foundation for tomorrow," Dela Cruz said. "Whether it's food security, access to health care, or helping small businesses grow, this budget is about making sure every part of our state has the opportunity to thrive."

The negotiating committees released a list of over 150 operational spending item highlights for the biennium, including $3.2 million for a temporary elementary school replacing one lost in the August 2023 Lahaina wildfire, $5.2 million for fireworks law enforcement, and $248 million for Hawaii Health Systems Corp.

Capital improvement appropriations include $1.8 billion for airport projects, $1.5 billion for highway projects, $380 million for affordable housing development, and $118 million to improve University of Hawaii at Manoa student housing.

Major bills face final vote

State lawmakers began voting Wednesday on over 200 bills that survived last-minute negotiations, including measures that would ban assault rifles, crack down on illegal fireworks and increase hotel taxes to fund climate change initiatives. If approved, they will be sent to Democratic Governor Josh Green's desk. 

Among the most significant legislation awaiting final approval is Senate Bill 401, which would ban the transfer, sale and importation of assault rifles, assault shotguns and .50 caliber firearms beginning Jan. 1, with exemptions for licensed dealers and county police chiefs.

Following a New Year's Eve tragedy that killed six people and wounded dozens at an Aliamanu home, House Bill 806 would provide $500,000 to the state Department of Law Enforcement to conduct sting operations on Oahu to catch fireworks violators and establish an explosives and firearms laboratory.

Climate change and wildfire prevention receive significant attention in the proposed legislation. Senate Bill 1396 would increase Hawaii's transient accommodations tax on hotels and cruise ships to generate millions annually for climate adaptation and wildfire prevention efforts.

House Bill 1001 would deposit about half of the state's $807.5 million share of $4 billion in Maui wildfire settlement claims into a trust fund, followed by the balance the following fiscal year. The fund would settle claims from the Aug. 8, 2023, wildfires, with payments spread over four years.

Other notable bills include House Bill 969, which would prohibit the construction of any waste or disposal facility on Oahu near or above an important aquifer, and within a half mile of schools, hospitals or residential areas. The bill comes despite opposition from the state Health Department and Honolulu's Department of Environmental Services, which argued that the restrictions would force expansion of the current Waimanalo Gulch Sanitary Landfill.

Bills begin to pile up on governor’s desk

Governor Josh Green has signed at least 27 bills into law so far this year, including one that prohibits the possession, transfer and sale of so-called ghost guns — unserialized firearms that are often assembled from kits and difficult to trace.

Other major bills that have cleared the Legislature and are awaiting the governor’s signature include House Bill 413, which would bar lobbyists from making campaign contributions while the Legislature is in session, and House Bill 1194, which would make permanent the state’s regulatory framework for midwives. The bill would establish licensing requirements for certified midwives and certified professional midwives, while exempting those who practice Native Hawaiian traditional and customary midwifery.

Senate Bill 1429 would restore caregivers' ability to cultivate cannabis for up to five patients and extends temporary dispensary rules for two years. It would also give the Department of Health greater authority to enforce penalties for violations.