Aloha UH ʻohana,
The 2026 legislative session came to a close on May 8 and, considering the significant fiscal challenges and competing priorities facing the state, the University of Â鶹´«Ã½ ultimately fared relatively well overall.
Throughout the session, lawmakers were tasked with balancing reductions in federal support for critical programs, economic uncertainty driven by both national and international events, and continued efforts to maintain affordability for Â鶹´«Ã½ residents.
With those realities in mind, UH entered the session with a modest supplemental operating budget request focused on two priority areas: healthcare workforce initiatives and UH Mānoa Athletics. While the university did not ultimately receive funding for those requests, we appreciate the continued engagement and collaboration with lawmakers throughout the session.
We are also grateful that the Legislature largely maintained existing operating support for the university and continued to invest in capital improvement projects across UH‘s 10-campus system.
The supplemental budget bill, HB1800 CD1, was approved by the Legislature and now heads to Gov. Green for final consideration.
Preserving tuition and fee reserves
During the session, proposals to utilize the university’s tuition and fee reserves to support other state priorities were under consideration. Through extensive discussions with lawmakers, UH was able to successfully communicate the importance of maintaining those funds to support student services, campus operations and future strategic investments across the 10 campuses, particularly at a time when reductions in federal funding are creating additional financial uncertainty for higher education nationwide.
There were two measures with fiscal implications for the university. The first, SB2602, would have required that any unencumbered funds in UH‘s Tuition and Fees Special Fund (TFSF) lapse to the state general fund. This bill did not pass. The second bill, SB2921, transfers any excess balances from non-general funds to the state general fund. Although this bill passed the Legislature, it did not include any of UH‘s funds.
NIL bill outcome
Unfortunately, Name, Image and Likeness (NIL) legislation intended to support UH Mānoa Athletics did not advance on the final day of session. The final compromise proposal, which UH supported, would have placed $1 million of state funds into an NIL endowment and allocated $1.5 million for immediate support for the upcoming season. The bill also required UH to use $7.5 million in tuition and fee reserves for NIL – $4 million for the endowment and $3.5 million for the upcoming season.
The House passed the bill, but it was defeated in the Senate by a vote of 11–12. A reference on the Senate floor to an email identifying UH concerns related to a previous version of the bill, not the version on the floor for a vote. UH will continue to seek funding for NIL in future sessions.
Operating budget
For the operating budget, UH saw a net reduction of approximately $3.8 million in general funds. At the same time, the Legislature added $319,000 in general funds for three positions at UH West Oʻahu, as well as $4.1 million in special fund ceiling authority for the Culinary Institute of the Pacific at Kapiʻolani Community College.
The table below provides a side-by-side comparison of the original UH Board of Regents request, and the final legislative appropriation in HB1800 CD1, pending any line-item vetoes by the governor.
| Category | Board FY27 | Legislature FY27 |
|---|---|---|
| Healthcare Initiative | $3,724,600 | |
| UH ²Ñ¨¡²Ô´Ç²¹ Athletics | $15,080,000 | |
| Reduce funds for UH ²Ñ¨¡²Ô´Ç²¹ | $(1,991,147) | |
| Reduce funds for JABSOM | $(120,324) | |
| Reduce funds for UH Hilo | $(301,413) | |
| Reduce funds for UH West Oʻahu | $(154,233) | |
| Reduce funds for UH Community Colleges | $(994,554) | |
| Reduce funds for UH Systemwide Administration | $(258,392) | |
| 3 Positions and Funds for UH West Oʻahu | $319,000 | |
| Professional Master Classes for Culinary at UH Community Colleges (TFSF) | $4,169,328 | |
| Grand Total (General Funds) | $18,804,600 | $(3,501,063) |
| Grand Total (All Funds) | $18,804,600 | $668,265 |
Items in purple are Special Funded, not General Funded.
Capital improvement projects (CIP)
For capital improvement projects and deferred maintenance, HB1800 CD1 provided $126.5 million in general obligation bond funding and $20 million in special funds for projects across the UH System.
These investments will support important facility improvements, such as $11 million for UH Mānoa Athletics, infrastructure modernization and system-wide deferred maintenance projects that directly impact students, faculty and staff across the university.
The following table summarizes the final CIP appropriations:
| Description | Board FY27 | Legislature FY27 |
|---|---|---|
| UH ²Ñ¨¡²Ô´Ç²¹ Student Housing | $59,250,000 | |
| UH System Renew, Improve, and Modernize (RIM) | $100,000,000 | $65,000,000 |
| UH Hilo RIM | $30,000,000 | $9,500,000 |
| UH Community Colleges Capital Renewal & Deferred Maintenance | $30,725,000 | $10,000,000 |
| UH West Oʻahu RIM | $5,000,000 | $3,000,000 |
| UH ²Ñ¨¡²Ô´Ç²¹ Athletics Facilities | $11,000,000 | $11,000,000 |
| UH Community Colleges Minor CIP | $30,125,000 | $10,000,000 |
| °Â²¹¾±°ì¨©°ì¨© Aquarium | $10,000,000 | $7,000,000 |
| Kapiʻolani CC Renovations for Health Program | $4,000,000 | |
| UH Maui College Vocational Training Center Modernization | $3,000,000 | |
| UH Maui College – Hale Modernization | $5,000,000 | |
| Waialeʻe Livestock Research Station Improvements (CTAHR) | $6,000,000 | |
| Total | $283,100,000 | $126,500,000 |
*The Legislature also added $10 million each in special fund ceiling for Minor CIP and Capital Renewal and Deferred Maintenance at the Community Colleges
Although these investments are significant, substantial needs remain throughout the university system. Addressing deferred maintenance and modernizing aging infrastructure across our campuses will continue to be one of the university’s highest long-term priorities.
While the legislative session has concluded, our engagement with lawmakers continues year-round. Next year will be the start of a new 2-year biennium budget, and we will continue advocating for the needs and priorities of UH‘s 10 campuses while strengthening partnerships that help the university best serve the people of Â鶹´«Ã½.
The governor has until July 15, 2026, to sign, veto or allow bills to become law without his signature.
Mahalo for all that you do to support our students, campuses and the mission of the University of Â鶹´«Ã½.
Luis P. Salaveria
Vice President for Budget and Finance/Chief Financial Officer
University of Â鶹´«Ã½