HOUSE DEMOCRATS CELEBRATE PASSAGE OF MAJORITY PACKAGE PRIORITIES IN 2026 LEGISLATIVE SESSION

Honolulu, Hawaiʻi – The Hawaiʻi House of Representatives Majority Caucus, consisting of 41 Democrats, celebrate the successful passage of several bills that advance the 2026 House Majority Caucus priorities.

“At the start of the session, we identified key priorities: expanding affordable housing, supporting Native Hawaiian families, protecting essential social services, addressing workforce shortages, strengthening the state’s revenue base responsibly, and diversifying our economy,” said House Majority Leader Sean Quinlan (D-47, Waialua to Kahana). “As we worked to balance the state budget, we made it a priority to protect essential social services, and we did that without cutting a single program that Hawaiʻi’s working families rely on. I'm proud to say that the House delivered on that promise.”

The following bills have either passed final reading in both legislative chambers or been funded through the state budget.

Building More Housing for Local Residents

$250 million for Rental Housing Revolving Fund, Dwelling Unit Revolving Fund, Department of Hawaiian Home Lands, Homelessness, Kupuna Housing, and Supportive Housing.

HB1740 CD1 – Incentivize Projects with Perpetual Resident-Only Deed Restrictions 

Expands exemptions from state and local regulations for housing projects that include perpetual deed restrictions prioritizing Hawaiʻi residents, while removing duplicative ownership and screening requirements that slow transactions and limit housing mobility. 

SB3219 CD1 – Help Counties to Build More Housing Infrastructure

The lack of infrastructure is one of the biggest hurdles to building more housing and keeping it affordable. This measure would propose constitutional amendments to allow counties to issue resilient infrastructure for shelter and equity bonds for specified public works, public improvements, or other actions necessary for housing and community development. These bonds will help fund needed infrastructure to build more housing.

SB2552 CD1 – Relating to the Individual Housing Account Program

Saving for a down payment on a home loan continues to be a barrier for many Hawaii residents, this bill increases the amount of pre-tax income that a couple can set aside in an individual housing account from $10,000 to $40,000 to help save for a down payment.

Clarifies the allowable uses within agricultural districts with respect to farm dwellings and farm employee housing. 

HB1920 CD1 – Relating to the Low-Income Housing Tax Credit

Clarifies that, for tax credits issued after 7/1/2026, a partner or member that is a partnership or limited liability company that has been allocated a Low-Income Housing Tax Credit may either further allocate the credit or transfer, sell, or assign all or a portion of the credit to any taxpayer. Extends the sunset date of Act 129, SLH 2016, relating to the Low-Income Housing Tax Credit, until 12/31/2032.

Deems a county inclusionary mandate as a form of development exaction and treats the mandate as a housing affordability impact fee. Provides parameters for a county's adoption or amendment of an inclusionary mandate for residential or mixed-use development.

Authorizes SHPD to conduct a phased review of a proposed project on private property under certain circumstances. Amends the process and deadlines by which SHPD must provide written concurrence or non-concurrence for proposed projects on private property or certain projects that require state or county approval for entitlement for use, after which concurrence may be assumed and the project may move to the next step in the compliance process. Amends the conditions under which a proposed project on an existing privately owned single-family detached dwelling unit or townhouse that is over fifty years old shall be subject to section 6E-42, HRS.

Supporting Native Hawaiians

SB903 CD1 – Funding for Native Hawaiian Programs Affected by Federal Cuts

Appropriates $55 million to the Office of Hawaiian Affairs to be expended solely for Native Hawaiian programs and services with critical, short-term funding needs in the areas of education, health, economic development, and community-based initiatives. Amends the membership and responsibilities of the Public Land Trust Working Group established under Act 226, SLH 2022. Requires the Working Group to submit three interim reports and a final report on 10/1/2028 that includes proposed legislation.

HB2309 CD1- Relating to the Hawaiian Homes Commission Act, 1920 

Amends the Hawaiian Homes Commission Act, 1920, as amended, to include sibling's children as qualifying relatives of lessees for the purposes of lease transfer and lease successorship, in the same manner currently allowed for spouses, children, grandchildren, and siblings. 

Extends the time to fill vacancies that occur during an Island Burial Council member's term. Provides per diem compensation in the form of a stipend for Island Burial Council members. Revises the Island Burial Councils' quorum for business to be a majority of the appointed council members. 

Preserving the Social Safety Net

HB1518 CD1 – Relating to the Supplemental Nutrition Assistance Program 

Requires the SNAP program to obtain a federal waiver and establish a program by January 2028 to enable inmates to apply for SNAP benefits when they are near release so that hunger does not contribute to recidivism.

HB2310 CD1 – Emergency Appropriation to the Department of Human Services

Appropriates $16.5 million in response to recent elimination of enhanced federal advance premium tax credits for people enrolled in plans in the federally facilitated health insurance marketplace, so that federal subsidies can still be leveraged and insurance can remain affordable for residents whose income is 250% of the poverty line or below. Appropriates $14,248,126 to cover the amounts DHS already paid for the response to the federal shutdown, specifically:

·         $11,807,126 for the Hawaiʻi Emergency Food Assistance Program ($250 that was added to SNAP EBT cards)

·         $2,000,000 to the Hawaiʻi Food Bank for purchase and distribution of food,

·         and $441,000 to Aloha United Way for 211 call center support.

SB2866 CD1/HB1975 – Makes the State Rent Supplement Program for Kūpuna Permanent.

Provides small subsidies of $500 or less to people 62 and older who are on a fixed income who cannot afford even “affordable” housing. In the budget, two new positions were established in the Hawaiʻi Public Housing Authority to administer the program, and $2,270,000 was appropriated to fund the program.

Appropriates $200,000 for training and consultation for Child Welfare Services staff with domestic violence specialists so that they can best manage child abuse and neglect cases that are complicated by domestic violence.

Exempts survivors of domestic violence from mediation with the alleged offender during parentage proceedings to resolve child custody.

Expanding Workforce Development and Retention Programs

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.

Provides annual salary step increases for public schools and public charter school teachers who have completed one year's satisfactory service and comply with specified requirements, if negotiated into a collective bargaining agreement pursuant to section 89-9, HRS, and subject to funds appropriated by the Legislature.

Responsibly Enhancing Tax Revenue

The original bill as introduced would have raised income taxes on all Hawaii residents. After extended negotiation between the House and Senate, the final version delivers additional tax relief for Hawaiʻi working families by preserving all of the tax cuts of Act 46 (2022) for families making less than $350,000 including increases to the standard deduction, and by further cutting income tax rates for low-income families. The bill funds the projected revenue shortfall by shifting the tax burden to high-income taxpayers and responsibly scaling back certain tax credits.

Diversifying and Strengthening Hawaiʻi’s Economy

Amends the Motion Picture, Digital Media, and Film Production Income Tax Credit (tax credit) by, beginning for costs incurred after 12/31/2025, providing an additional credit to qualified productions with a workforce of at least eighty percent local hires; requiring each taxpayer claiming the tax credit to submit an independent third-party certification verifying certain information to the Department of Business, Economic Development, and Tourism; increasing the per-production cap amount to $20,000,000 and excluding qualified productions that incur at least $60,000,000 of qualified production costs from the per-production cap amount; changing the aggregate cap amount to $60,000,000; providing that, beginning for costs incurred after 12/31/2023, if the total amount of tax credits claimed in a year is less than the aggregate cap amount, the cap for the subsequent year shall be increased by the unclaimed amount; defining "streaming platform" and amending the definition of "qualified production" to include certain streaming productions; and extending the sunset date of the tax credit to 1/1/2038. 

Amends the definition of "eligible business activity" for the purposes of the Enterprise Zone Program to include certain retail sales of tangible personal property; processing of certain value-added agricultural products; research development, sale, or production of all types of medical products and medical and health care services; activities of the Hawaiʻi Food and Product Innovation Network; the provision of certain professional services by health care professionals; aerospace research and development activities; and information technology design and production services. 

Declares that the State is an ocean cluster. Establishes the Office of Marine Affairs and Marine Affairs Governing Board within the Hawaiʻi Technology Development Corporation. Establishes the Marine Affairs Coordinator position. Repeals the powers and duties of the Department of Business, Economic Development, and Tourism over marine affairs. Transfers the employees and functions of the Governor's Advisory Committee on Marine Affairs to the Office of Marine Affairs.

Establishes the Hawaiʻi-Ireland Trade Commission within the Department of Business, Economic Development, and Tourism for administrative purposes. Requires the Commission to submit annual reports to the Legislature and Governor. Sunsets 6/30/2031.

HB2474 CD1 -  International Relations Cooperation Agreements

Authorizes the State to enter into nonbinding international cooperative agreements with national governments; national ministries, departments, or agencies; provincial or regional governments; or international intergovernmental bodies relevant to the interests of the State or an international partner. Expands the definition of sister-state or province partnerships to include a partnership between the State and a prefecture or foreign nation. Requires the Hawaiʻi Sister-State and International Partnerships Commission to evaluate how a sister-state or province partnership or international cooperative agreement will enhance certain key state initiatives.

Beginning 1/1/2027, establishes prompt payment and financial reporting requirements for professional solicitors that sell donated or collected non-perishable tangible property on behalf of charitable organizations. Prohibits professional solicitors that sell donated or collected non-perishable tangible property from failing to prominently disclose certain information on any collection bin, container, or receptacle used to receive donated or collected non-perishable tangible property or comply with prompt payment, financial reporting, and contract term requirements.

HB1576 CD1 - Film Tax Credit and Public Notice Notification

Requires the Department of Business, Economic Development, and Tourism to provide public notice of certain information whenever a production obtains a permit or enters into a memorandum of agreement or understanding with DBEDT to film a visually recorded production at certain locations. Requires DBEDT to provide public notice of certain information whenever a production registers for pre-qualification or is determined to qualify for the Motion Picture, Digital Media, and Film Production Income Tax Credit and simultaneously post notice on a publicly accessible part of its website. Allows individuals to sign up to receive the public notice by electronic mail or postal mail. Provides an exemption for dispositions of lands set aside for filming and film studio operation from prior approval of the Board of Land and Natural Resources.

Establishes the Hawaiʻi Micro-Lending Credit Enhancement Program within the Department of Business, Economic Development, and Tourism to expand micro-lending capacity by providing state‑funded loan loss reserves or other credit enhancement that absorbs first losses on qualified micro-loans made by participating lenders to Hawaiʻi small businesses. Allows borrower fees and state matching contributions to capitalize lender-held loan loss reserve accounts. Establishes the Hawaiʻi Micro-Lending Credit Enhancement Special Fund. 

ʻŌkolehao is a traditional Hawaiian distilled spirit with deep historical and cultural significance.  ʻŌkolehao traces its origins to the early contact period in Hawaiʻi and was historically produced from fermented kī (Cordyline fruticose) root, commonly known as ti plant or ti-leaf. This measure establishes labeling requirements for ʻōkolehao products to ensure that products using the name ʻōkolehao meet certain criteria, including production in the State.

The Hawaiʻi House of Representatives consists of 51 members who serve two-year terms. The House Majority consists of 41 Democrats for the 33rd Legislature. Follow the Hawaiʻi House Democrats on Facebook, Instagram, or visit www.hawaiihousedemocrats.com.