Trump Budget Proposes Cuts to Native Hawaiian Programs, Prompting Legislative Pushback and Anticipated Legal Battles

The administration’s fiscal-year-2027 budget proposes eliminating the Native Hawaiian block-grant program that annually provides tens of millions of dollars to the Department of Hawaiian Home Lands for housing construction and lease-holdings for wait-listed applicants. The same budget also seeks to slash $28 million from a Native lending program that the White House described as advancing “immigration, gender, and climate radicalism.”

Congress, led by Hawaii’s four-member delegation, has moved to counter the proposed cuts. The GOP-led House Appropriations Committee passed a spending measure that restores the Native lending program and raises its allocation to $35 million—higher than the prior level. Senate Democratic leader Sen. Brian Schatz (HI) expressed confidence that Congress will continue to fund Native Hawaiian health-care, education, and housing programs, as it has in previous years.

A December memorandum from the U.S. Department of Justice argues that certain Native Hawaiian education programs constitute race-based preferences and are therefore unconstitutional. The memo’s language mirrors the budget’s rationale and aligns with legal arguments advanced by conservative groups such as Do No Harm, which are currently suing to halt Native Hawaiian programs.

The budget cuts are part of a broader administration agenda targeting diversity, equity, and inclusion (DEI) initiatives and federal programs perceived as founded on “unconstitutional racial preferences.” This strategy extends to other Indigenous and tribal programs, raising concerns about a coordinated effort to diminish federal support for Native communities.

• Sen. Brian Schatz (HI) – Chair of the Senate Indian Affairs Committee; warns that the administration’s actions constitute an “assault” on Native Hawaiian programs.

• Rep. Ed Case (HI) – Member of the House Appropriations Committee; describes the DOJ memo as “highly tailored” to existing conservative legal strategies and calls the overall approach a “coordinated effort.”

• Darlene Danner – Native Hawaiian advocate; emphasizes the need for a litigation fund to defend programs in court.

• U.S. Department of Justice – Provides the legal opinion deeming programs unconstitutional.

• Office of Management and Budget – Declined to comment on the budget proposals.

• Annual block-grant to the Department of Hawaiian Home Lands: tens of millions of dollars.

• Proposed cut to Native lending program: $28 million.

• Restored and increased allocation by House Appropriations Committee: $35 million.

Schatz characterizes the budget move as an “assault that underpins these programs,” while Case warns that the administration’s posture reflects a “divide and conquer” strategy targeting Indigenous initiatives. Both officials note that the threat of delayed or withheld funds has already caused some organizations to scale back services and postpone investments.

Schatz affirmed confidence that congressional appropriations will sustain Native Hawaiian health, education, and housing initiatives. Case indicated he must expend additional political capital to protect these programs and cautioned that prolonged litigation could further strain resources. The DOJ memo frames the programs as unconstitutional, and the OMB offered no comment.

If the administration’s budgetary and legal tactics succeed, they could set a precedent for reducing federal support to other tribal and Indigenous programs nationwide. The anticipated court battles may determine the future legal status of race-based funding mechanisms and affect the stability of services for Native Hawaiian communities.

Legal challenges to the DOJ opinion and the budget cuts are expected to proceed in federal courts. Danner has advocated for a pooled litigation fund to finance defenses. Congressional oversight of funding allocations is likely to continue, with the House and Senate monitoring implementation and potential delays.

• “He’s not a monarch; he can’t wave a wand and eliminate funding,” — Sen. Brian Schatz, Senate Indian Affairs Committee

• “This is an assault that underpins these programs,” — Sen. Brian Schatz

• “I’m definitely having to spend a lot more of my political capital to maintain these programs over time,” — Rep. Ed Case, House Appropriations Committee

• “This is a coordinated effort,” — Rep. Ed Case

• “I am not naive,” — Darlene Danner, Native Hawaiian advocate

• “It is kala. It is the colonial master of money and resources that can be used to put together a legal defense in our third branch of government.” — Darlene Danner