Boosting Financial Aid for Nonprofit Organizations in Hawaii's Legislative Agenda
Rewritten Article
Hawaii charitable organizations are bracing for potential federal aid cuts, amplifying their call for state grant funding this year. In response, the Legislature is set to earmark an impressive $80 million for local nonprofits.
The state legislature okayed two bills on Wednesday, designating up to $80 million for charitable organizations across the islands. Over a third of the funding, $30 million, will be channeled through the Legislature's annual grants-in-aid program, which remains consistent with 2024's distribution but is down from around $40 million in 2023 and $49 million in 2022.
A separate state grant fund was approved in Senate Bill 933, with $50 million intended for nonprofits negatively impacted by federal grant decisions. These organizations can apply for funding later this year if the bill becomes law.
Rep. Daniel Holt, chair of the Legislature's Subcommittee on Grants-in-Aid, explained, "We're addressing a unique and pressing need here."
Before the Trump administration's moves to slash funding for numerous nonprofit efforts, Hawaiian charities were already asking for more state aid, with most applications submitted in January. This year, the Legislature received 402 grant-in-aid applications, an increase from 322 in 2024.
Applicants this year sought $192 million to support their operations, fund capital improvement projects, or both.
"It just goes to show the community's need for support," said Holt (D, Sand Island-Iwilei-Chinatown).
Of the $30 million allocated for this year's grants-in-aid program, the most significant grant, $800,000, will go towards a Hawaii Foodbank solar power project. The smallest grant, $10,000, will be awarded to Hilo-based Hua o Lahui, an organization that teaches native Hawaiian culture, filmmaking, and canoe production to primarily Native Hawaiians, veterans, active military service members, first responders, and the public at large.
Typically, grant-in-aid awardees are nonprofits but can also be for-profit businesses if the funding is for a public purpose, and they are primarily involved in healthcare, social services, arts, education, environmental stewardship, and culture. Applicants generally receive less than they request because lawmakers aim to help as many recipients as possible with limited resources.
It's common for nonprofits in need of grants-in-aid awards to also rely on federal funding, such as Aloha Harvest, which sought a $200,000 grant to support its mission to distribute unsold food to the hungry. Despite being approved for $140,000, the organization noted in its January application that a substantial federal grant—$195,010—was still pending.
Hawaii Foodbank revealed on March 27 that critical federal funding accounts for approximately 20% of its income, primarily coming through U.S. Department of Agriculture program contracts administered by the state. If all federal funding were to disappear (excluding food), the organization could face a potential loss of $3.8-$5 million in revenue.
Close to 80 nonprofit organizations expressed gratitude and encouragement for an early draft of SB 933 before any allocation was proposed. According to Melissa Miyashiro, president and CEO of the Hawaii Alliance of Nonprofit Organizations (HANO), the additional state funding is crucial due to potential federal funding freezes in grants and contracts to Hawaii's nonprofit organizations.
Given the high demand for grants, Senate President Ron Kouchi (D, Kauai-Niihau) admitted it will be challenging to prioritize allocations, stating, "We simply cannot provide everything they need, but that's what we can set aside."
Several members of the House of Representatives raised concerns about the final version of SB 933. Rep. Kim Coco Iwamoto (D, Ala Moana-Kakaako-Downtown) objected to four legislators having total discretion over awarding the $50 million, whereas Rep. Dela Au Belatti (D, Makiki-Punchbowl) stated the setup is constitutionally deficient. Nevertheless, the bill was passed with strong support, including from five Democractic representatives and two Republican senators.
The legislation is still subject to Governor Josh Green's approval, who will decide whether to sign it into law, let it become law without his signature, or veto the appropriations.
TOP AWARDS
The following thirteen nonprofits were selected for 2025's legislative grant-in-aid awards of $500,000 or more:
• Big Brothers Big Sisters Hawaii• Blood Bank of Hawaii• DIGS• Elepaio Social Services• Hana Health• Hawaii Foodbank Inc.• Hooulu Lahui• Kauai Economic Opportunity Inc.• Lanakila Pacific• Makiki Christian Church• Papakolea Community Development Corp.• Rehabilitation Hospital of the Pacific• West Hawaii Community Health Center Inc.
References:[1] https://www.rei.com/community/grants/[2] https://www.hawaii.gov/humanservices/cswd/programs/wap/
- Hawaii charities, relying heavily on both state and federal funding, are calling for more state aid due to potential federal aid cuts and increased demand for support.
- In response, lawmakers have approved $80 million for local nonprofits, with a significant portion channeled through the annual grants-in-aid program, which has seen a decrease from previous years.
- A separate state grant fund of $50 million has been proposed for nonprofits negatively impacted by federal grant decisions.
- The state's financial support is essential, as federal funding freezes could significantly impact the operations and revenues of many nonprofits.
- The Legislature received 402 grant-in-aid applications this year, seeking a combined sum of $192 million for health, environment, education, and community programs.
- Lawmakers aim to help as many nonprofits as possible with limited resources, often awarding less than organizations request, and prioritizing healthcare, social services, arts, education, environmental stewardship, and culture.
