Looking forward to the 2026 legislative session

by Keli'i Akina, Ph.D., President / CEO, Grassroot Institute of Hawaii

The Hawai‘i Legislature kicked off its 2026 session this week, and it sure feels like it could be another year for big, positive changes.

The Grassroot Institute of Hawaii, of which I am president, stands ready to make that happen by supporting initiatives that promise to move our state forward, while opposing those that would push us backward.

This year, as has been the case over the past few years, we anticipate that lawmakers will have several opportunities to advance meaningful housing reform.

In an effort to encourage more homebuilding and reduce the exodus of our friends and families from Hawaii, Grassroot will be supporting bills aimed at streamlining the state building code process, ending inclusionary zoning, eliminating parking minimums, allowing prefabricated housing and facilitating more agricultural workforce homes.

We also will be supporting bills that could increase employment opportunities —  specifically a measure that would allow Hawaii to join the national compact for cosmetologists and one that proposes relieving natural hair braiders of burdensome licensing requirements without compromising public safety.

And we’ll be championing certain healthcare reforms, including reducing the scope of the state’s medical “certificate of need” regulations that have been a hindrance to healthcare access and quality, especially in Hawaii’s rural areas.

The key to seeing much good come out of this new legislative session will be to make sure we are strong on offense and defense.

Defense will especially be needed to preserve the 2024 income tax cuts that are expected to save Hawaii taxpayers more than $7 billion over a phase-in period planned to last through 2031.

The Grassroot team has already been pushing back on Gov. Josh Green’s proposal to “pause” those cuts — mainly by pointing out that the state doesn’t need to raise taxes to cover unexpected expenses because it already has plenty of money it could draw on.

For starters, lawmakers could clean up the state’s many special, revolving and trust funds, eliminate chronically vacant state jobs and phase out inefficient or underused programs.

In addition to defending the tax cuts, my Grassroot colleagues and I will oppose all efforts to increase our taxes in other ways.

As you know, our legislators typically have no shortage of ideas about how to add to our tax burden, and I will be surprised if we do not see the usual proposals to increase the state’s conveyance and capital gains taxes, extend the rail-related surcharge on the state general excise tax, start taxing real estate investment trusts and impose a so-called wealth tax.

Ultimately, we can never predict how a legislative session will evolve. But I am sure of one thing: We at Grassroot will do our best to move Hawaii toward being more free and prosperous for all.

E hana kākou! (Lets work together!)