GOVERNOR GREEN SIGNS BUDGET AND ISSUES INTENT-TO-VETO LIST

GOVERNOR GREEN SIGNS BUDGET AND
ISSUES INTENT-TO-VETO LIST

HONOLULU – Governor Josh Green today signed HB 1800, Act 175, Session Laws of Hawaiʻi (SLH) 2026, the state’s supplemental budget bill, which amends Act 250, SLH 2025 and appropriates funds for Executive Branch operations and capital improvement projects (CIP). The operating budget provides $10.42 billion in general funds for fiscal year 2026 and $10.63 billion for fiscal year 2027, representing total expenditures of $19.77 billion and $20.31 billion across all means of financing, for each fiscal year. For CIP, $4.53 billion in appropriations across all means of financing included $1.51 billion in general obligations for fiscal year 2027. The budget balances the financial plan and maintains state reserves. It continues to invest in Hawai‘i’s priorities, including affordable housing, support for local families, public health initiatives and economic development opportunities, particularly amid reductions and uncertainty in federal funding.

Consistent with these priorities, the state budget also provides critical funding for Act 96, SLH 2025, Green Fee, including approximately $129 million over 18 months to support 91 projects across 11 departments.

The Governor also signed the Judiciary’s budget bill, HB 2095, Act 178, SLH 2026, continuing its support for a well-resourced and effective judicial branch that serves the people of Hawaiʻi.

Photos of Governor Green signing the budget bill are available here, courtesy Office of the Governor.

Intent to Veto

Governor Green notified legislative leaders and stakeholders today of his intent to veto four measures passed by the Hawai‘i State Legislature during the 2026 legislative session. The small number of measures included on the intent-to-veto list reflects the collaboration and hard work of the Legislature, the administration and community stakeholders throughout the 2026 legislative session.

While Governor Green is not required to veto every bill on the Intent-to-Veto list, he cannot veto any bill that is not on the list. Governor Green has until July 15 to issue final vetoes and all remaining bills will become law on July 15.

“Our team has been working diligently to review the 267 bills passed by the legislature this session, most of which will become law,” said Governor Green. “Of the 267 bills reviewed, only a handful have landed on this list through extensive legal and fiscal analysis. Our assessments are guided by sincere dedication to our community, taking each opinion into consideration, with the goal of making decisions that truly reflect what is best for Hawai‘i.”

The following bills noted below are being considered for veto or line-item veto, or reductions.

SB2338: RELATING TO HOUSING

Bill Description: Exempts certain employment actions and job descriptions for the Hawaiʻi Housing Finance and Development Corporation (HHFDC) and Hawaiʻi Community Development Authority (HCDA) from approval by the Director of Business, Economic Development and Tourism. Establishes salary provisions for the executive directors of HHFDC and HCDA, with compensation capped at 99 per cent of the Governor’s salary and subject to DBEDT approval. Renames the HHFDC executive assistant position to deputy executive director and increases its salary cap. Establishes conditions for the issuance, renewal and termination of employment contracts for HHFDC, HCDA and the Hawaiʻi Public Housing Authority.

Veto Rationale: This bill would impose statutory requirements in an area where existing authority may already provide sufficient flexibility to achieve the measure’s intended objectives. Additional review and consultation are needed to determine whether the proposed changes can be implemented administratively. Further analysis is also needed to better understand how current provisions of the Hawai‘i Revised Statutes may be utilized to accomplish the same goals.

SB2600: RELATING TO THE GENERAL FUND

Bill Description: Makes a deposit into the emergency and budget reserve fund pursuant to article VII, section 6, of the Hawaiʻi State Constitution.

Veto Rationale: Given disaster recovery efforts and other state priorities such as affordable housing and reducing the cost-of-living for our residents, it would be financially imprudent to transfer $50 million in general fund money to the emergency budget reserve fund (Rainy Day fund). The current balance of the Rainy Day fund of more than $1.5 billion is the largest it has ever been — and the state is committed to making regular payments on its unfunded liabilities, including its pension obligations.

SB3262: RELATING TO EDUCATION

Bill Description: Requires that the Hawaiʻi Teacher Standards Board submit three nominees for its executive director to the Board of Education. Requires the Board of Education to appoint an executive director from the nominees on the list, subject to advice and consent of the Senate.

Veto Rationale: This bill warrants further review regarding the separation of responsibilities and duties between the Board of Education and the Hawai‘i Teacher Standards Board. Additional evaluation is needed to assess how the proposed changes may affect the respective roles, authorities and oversight functions of each entity to ensure that any changes are clearly defined, appropriately structured and do not create ambiguity regarding governance and accountability.

HB2344: RELATING TO SCHOOL FACILITIES

Bill Description: Establishes a temporary, independent Public School Realignment and Closure Commission to develop and recommend a comprehensive package of school consolidations, realignments and closures based on the federal Base Realignment and Closure model. Requires reports to the Legislature. Requires an expedited approval process for the recommended school consolidations, realignments and closures. Appropriates funds.

Veto Rationale: The amendments would establish requirements for matters that are already within the authority and responsibility of the Board of Education and the Department of Education. These changes may create duplicative processes and administrative burdens without providing a clear benefit. Further review is warranted to determine whether the measure’s objectives can be achieved through existing authorities and practices.