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Hawai‘i Halts Tax Cuts Amid $1.8 Billion Budget Shortfall

1/11/2026

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Summary

Story summary

Hawai‘i plans to pause tax cuts starting in 2027 amid budget shortfall.
The state faces a $1.8 billion loss from federal budget cuts to social services under the One Big Beautiful Bill Act.
Acting budget director Seth Colby said there is no systematic effort to cut state spending.
Lawmakers warn federal policies could affect the economy and tourism.
Governor Josh Green seeks to protect low-income residents and pursue alternative revenue sources.

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Story summary

Hawai‘i plans to pause tax cuts starting in 2027 amid budget shortfall.
The state faces a $1.8 billion loss from federal budget cuts to social services under the One Big Beautiful Bill Act.
Acting budget director Seth Colby said there is no systematic effort to cut state spending.
Lawmakers warn federal policies could affect the economy and tourism.
Governor Josh Green seeks to protect low-income residents and pursue alternative revenue sources.