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'Aloha, ohana and kuleana:' Gov. Green delivers fourth State of the State Address

Gov. Green aims to pause $1.8 billion in tax cuts from 2027-2029 to fund affordable housing, food security, and child care amid budget pressures from federal cuts.

  • On Monday, Governor Josh Green proposed pausing tax cuts planned for the 2027–2029 tax years, estimating $1.8 billion would return to Hawaii with $600 million for food security and child care.
  • Because 2025 federal cuts removed over $3 billion, Governor Josh Green said this created an unforeseen budget shortfall that drives the need to pause tax breaks.
  • No changes to tax cuts in 2026, but Hawaii taxpayers at all income levels would see their tax breaks paused for the 2027, 2028 and 2029 tax years under Green's plan.
  • Funding would bolster homelessness programs by expanding 25 kauhale villages providing nearly 1,000 beds and tracking over 6,000 housing units including 46,000 affordable homes this year.
  • With forecasts due in March and May, House and Senate leaders said they need details on pausing tax breaks, while Governor Josh Green warned `we will start running in the red` if cuts aren't suspended.
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Hawaii News Now broke the news in Honolulu, United States on Monday, January 26, 2026.
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