The Federal Emergency Management Agency, along with state and local officials, is assessing the damage from the historic flooding during the back-to-back Kona low storms. The state budget will need to adjust to accommodate flood recovery efforts.
The first damage assessment to understand the full impacts of the storms is expected within the next several days. Gov. Josh Green estimated it will likely be over a billion dollars.
This comes as state lawmakers are more than halfway through the budgeting process.
“We're still waiting for an assessment of the approximate dollars needed to deal with the damage,” said Senate Ways and Means Committee Chair Donovan Dela Cruz. His committee is currently working on the state budget, which passed out of the House last week.
“We're looking at different options, you know, where we can take from either existing monies, or possibly borrow from the rainy day fund or the major disaster fund method, but we won't have a clear idea until we know how much we really need.”
Federal funding from FEMA?
One of the key factors is the amount of money the federal government will kick in to assist with recovery.
Green has formally requested a presidential major disaster declaration, meaning FEMA could share either 75% or 95% of the costs with the state.
U.S. Rep. Jill Tokuda of Hawaiʻi explained that the Department of Homeland Security's partial shutdown should not stop the flow of funds once the president grants the disaster declaration.
“That should definitely not impact any kind of cost-share. If this administration tried to say that would happen again, that would be very out of the ordinary. That would be clearly politically motivated,” she said.
“I think it's important to folks to know that we have $10 billion available in the Disaster Relief Fund. It is not limitless, but it is there to respond immediately to situations like this.”
FEMA cost-shares through reimbursements as projects are completed. For example, FEMA awarded over $740 million for public assistance support following the 2023 Maui wildfires. The state is still waiting for $320 million in reimbursements.
In 2024, the state was still receiving reimbursements for the 2019 Kīlauea volcano eruptions.
One issue is that the federal government has been slow to disperse funds. This has happened in other states that have faced natural disasters, like the 2025 Palisades fire in California or the Texas floods last summer. It was largely due to a policy under former DHS Secretary Kristi Noem. She would review any expense over $100.
It even created delays in approvals for extending temporary housing assistance for Maui wildfire victims.
Tokuda explained that the new, recently confirmed DHS Secretary Markwayne Mullin has committed to stopping that practice.
“This is the first disaster of his tenure, but it's going to be a real test to make sure that he is making sure that money isn't held up because it needs his approval or any other kind of administrative burden. And that we can get money quickly, to folks that need it right now in Hawaiʻi,” she said.
“That's why we have FEMA's Disaster Relief Fund, so that there's a constant source of money available for disasters, as it happens to be able to respond.”
State funding options
The state’s reserve fund, often referred to as the “rainy day fund,” has about $1.6 billion. Lawmakers can access these monies by a two-thirds majority vote.
Dela Cruz also pointed to the Major Disaster Fund as a tool the governor can use in this situation.
“He would be able to move monies from departments that are unused or that it’s going to lapse, and transfer that to the major disaster fund to use,” he said.
“Before they even start doing that, they usually want to try to get a dollar figure of how much they would probably need because if not, you're just pulling money without knowing the amounts you're trying to transfer to the major disaster fund.”
In an email, the Department of Budget and Finance wrote that there is currently about $5 million in the Major Disaster Fund. The funds transferred to the fund during the Maui wildfires were largely spent.
“Because of the magnitude of the recent Kona Low weather systems, there will be a need to request additional funding for the major disaster fund to support recovery efforts,” a governor’s spokesperson said in a statement.
Another pot of funds is the about $100 million generated for climate projects by the new Green Fee on hotels and cruise ships. The money can go toward three general groups of projects: environmental stewardship, climate resilience, and sustainable tourism. The governor’s Green Fee Advisory Council submitted a list of suggested projects, which the House largely passed.
House Finance Chair Chris Todd explained that lawmakers will likely be looking at the list to accommodate projects that could fall under these umbrellas as it relates to flood recovery and future disaster prevention.
“I think we'd be foolish to not at least consider some of those items, especially when some of those things are going to be new challenges, whether it's necessary repair and structural changes, but also projecting out for future disasters,” he said.
“We have a couple of weeks until the Senate sends their budget over, and then we start negotiations. But I think that's definitely on the table and we'll have to consult with area legislators and our agencies for what the best move is given that changing landscape.”
Todd was confident that there would be enough time left in the legislative session to make the needed adjustments to the budget, at least in the short-term.
“We have enough time left in the session to kind of lay out the initial plan for what needs to be addressed immediately and laying out funding for necessary plans and design for our infrastructure improvements,” Todd said.
“We do have enough time to address that, but I think realistically, after the session concludes, things are going to keep emerging, right? It's going to be whatever that next threat is.”
Dela Cruz explained that it would be hard to predict without the damage assessments.
“I'm not sure. I know the [Hawaiʻi Emergency Management Agency] and the governor's office and the departments are trying to work as quick as they can and working with the county because they know that the session does come to an end within the next six weeks,” he said.
“If there's something that's outstanding that needs to be addressed, the governor can also call a special session.”
The Senate has until mid-April to pass the budget. It then moves to conference as the Senate and House negotiate and pass the final bill by the end of the session on May 8.
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