Recent headlines have been circulating about a scathing audit of the Kauhale Initiative, which was designed to provide long-term housing for people experiencing homelessness.
The report from the state Office of the Auditor criticized the lack of oversight on a no-bid contract and pointed out millions of dollars in questionable or unauthorized spending by HomeAid Hawaiʻi, the lead developer for the project.
Gov. Josh Green disputed the nearly $14 million figure, saying that the state has tightened up its procedures. He defended the emergency housing program, saying it has saved money and lives.
HPR spoke with Green to hear more.
Interview Highlights
On the positive impact of the Kauhale Initiative
GOV. JOSH GREEN: Let me be completely clear. We've helped 2,900 people that were struggling terribly, that were either suffering with mental illness and addiction or deep poverty. … Not to mention the fact that for every individual that gets into a kauhale, the state spends $50,000 on average less per year because they're not in the ER over and over again. So we've saved over $100 million.
We're caring for people, but still having said all of that, and the fact that we lowered homelessness statewide by 13.1%, we still will take the recommendations because they're solid recommendations. And we will hold anyone to account if they abused any of the resources. … We should not lose sight of the fact that we're saving lives. And I will not lose sight of the fact that we should use taxpayer dollars well.
On defending the program’s speed and spending
GREEN: We were going fast because you got to go fast when you're trying to save people's lives and keep them out of the ER. We were saving about $10 million a month. They're worried about, really, $6 million total. So if I had paused and waited an extra year, we would not have seen that $100 million of savings.
So if I had been an inadequate governor and if I had gone slowly while people were dying at the rate of one person dying a day on the street, we’d have another 300 people die on the street. We would have eaten another 100 million dollars in the healthcare system on our Medicaid dime. And then there would have been no complaints except people would have said, "What in the heck are you doing? Why aren't you taking action on homelessness?”
On coping with declining tourism to Hawaiʻi
GREEN: We have been moving towards sustainable tourism. We've been moving towards eco-tourism. We've been moving towards protecting our environment while we have visitors — that's the climate impact fee argument. But we could not survive a 20% or even a 10% downturn in tourism without real impact. … I do know that the Council on Revenues is inclined, probably, to lower our estimates some. … They look at those numbers very carefully, and they will make the adjustment. If they drop us a percent of expectations based on collections of taxes and tourism numbers, then that usually means an extra $100 million that I have to back off of or, and I'll be very clear, seek dollars from the rainy day fund.
This story aired on The Conversation on Oct. 15, 2026. The Conversation airs weekdays at 11 a.m. Jinwook Lee adapted this story for the web.
