The Tax Foundation of Hawaii is cautioning about falling off a fiscal cliff.
The federal government recently fined Hawaiʻi $11 million because of a 20% error rate in Supplemental Nutrition Assistance Program, or SNAP, distributions — formerly known as food stamps. Those errors were mostly overpayments.
"But they gave us a break. They said, 'Look, if you spend half of that toward new technology, then maybe we'll let you slide on the other $5.5 million.' The Department of Human Services went to the Legislature, and they got an emergency appropriation for the $5.5 million, and they're gladly dodged the bullet," said Tom Yamachika of the Tax Foundation of Hawaii.
But the president’s “One Big Beautiful Bill” contains fine print that levies some even stiffer penalties with no wiggle room if the error rate in spending exceeds the cap.
The Conversation talked to Yamachika about his concerns.
This story aired on The Conversation on July 16, 2025. The Conversation airs weekdays at 11 a.m.
