The likelihood of Hawaii’s Legislature holding a special session later this year to compensate for federal spending cuts may be dimming after alarms over such a need were raised in May.
State House Speaker Nadine Nakamura recently said dates remain reserved for a potential special session because federal funding decisions and their impact on Hawaii are still unclear.
But Gov. Josh Green believes an immediate threat has passed, and that a special session isn’t needed.
Senate President Ron Kouchi did not respond to requests for comment through a Senate spokesperson Tuesday, Thursday and Friday.
Either the governor or a written request by two-thirds of members in both the House and Senate can call a special session under Hawaii’s Constitution.
Green recently declared that he no longer sees a need for state lawmakers to reconvene early. The governor expressed his view on the Hawaii News Now interview show “Spotlight Now ” on July 1 after the U.S. Senate approved an amended version of President Trump’s domestic policy bill that makes dramatic changes to health care, taxes, immigration, energy investments and other things.
“The bill as I’ve been able to read it so far, it doesn’t hurt us (Hawaii ) right now, ” Green said. In general, people should know we’re going to be OK. We won’t need a special session, and I won’t have to adjust anything else right now.”
On July 4, the federal bill was signed into law without further change.
Green told “Spotlight ” that one big concern about the law removing a lot of people from Medicaid coverage is not immediate. He said such cuts aren’t expected to happen before 2027, and that rural hospitals in the state potentially hurt by the move will be able to seek special federal funding.
Other reasons Green cited included $100 million in appropriations he trimmed from the state budget, $200 million in available state contingency funding and the recent receipt of $550 million from a legal settlement with the maker of the blood thinner Plavix.
“All of these things keep us afloat, ” Green said. “We’re totally fine. … That means we will not need to have a special session in all likelihood because we have enough resources without having to do any cuts.”
Colin Moore, an associate professor at the University of Hawaii Economic Research Organization who also teaches public policy at UH, tends to agree with Green’s assessment, and noted that federal cuts to Supplemental Nutrition Assistance Program, or SNAP, funding also is delayed.
“It doesn’t mean it’s not going to be a crisis eventually, ” Moore said in an interview. “It just might not be a crisis right away.”
On Thursday, Green’s office provided an additional statement to the Star-Advertiser saying, “Governor Green is working with the congressional delegation, his cabinet and legislative leadership on ways to mitigate the impacts the federal government’s fiscal policies will have on local residents. While he doesn’t see an immediate need for a special session, he has committed to working with the Legislature should the need arise prior to its regular session.”
Hawaii’s Legislature normally is in session from mid-January to early May.
Nakamura, in a statement on Thursday, said she remains concerned about future federal funding cuts to Med-QUEST and SNAP affecting a significant number of Hawaii residents along with cuts to congressionally approved funding for education and renewable energy.
The possible education funding could affect after-school programs, English learners, adult education, literacy programs and student aid, she said.
“We have reserved potential dates for a special session, but it will not be clear whether we need one until the scope of federal budget cuts are clear, ” said Naka mura (D, Hanalei-Princeville-Kapaa ).
Congress is taking up about a dozen spending bills to fund different sectors of the federal government—transportation, defense, homeland security, military construction, agriculture and other things—for the next fiscal year starting Oct. 1.
These budget bills typically consider spending proposed by the president that influences U.S. House and Senate drafts subject to differences being reconciled for final approval by both chambers before the legislation is sent to the president for enactment.
However, Congress in recent years has repeatedly failed to pass full-year appropriations bills on time, and instead resorted to short-term continuing resolutions that often extend funding for short periods at current levels.
Moore said the federal appropriations bills mostly deal with funding federal agencies, which could affect some operations in Hawaii but not likely enough to generate a crisis for state government.
That said, Moore also believes lawmakers may go ahead and call a special session anyway.
“By the end of this session everyone was kind of planning on it, ” he said. “They’ve already blocked out some dates. There may just be inertia in the Legislature to hold a special session.”
Kouchi, two days before the May 2 end of this year’s legislative session, said colleagues were challenged with spending decisions because of looming uncertainty of federal spending cuts, tariffs and other U.S. government decisions affecting Hawaii’s economy.
At that time, Kouchi (D, Kauai-Niihau ) anticipated possibly holding a special session in November because more would be known when the federal fiscal year begins Oct. 1.
Nakamura let House members know in March that a potential five-day special session could be held Aug. 25-29, Sept. 29 to Oct. 3 or Nov. 17-21.