Lifeline considered for Hawaii nonprofits

Hawaii lawmakers are considering a contingency plan to help fund nonprofit organization operations facing federal funding cuts.

A state Senate committee recently reprogrammed a blank bill related to the state budget to provide one-time grants for supporting essential services provided by nonprofits in Hawaii at risk of losing federal grant and contract funds.

On Wednesday, the Senate Ways and Means Committee held a public hearing on the revised measure, Senate Bill 933, and voted 13-0 to advance the legislation for consideration by the full 25-member Senate.

Close to 80 nonprofit organizations expressed thanks for the bill and encouraged its passage.

“This critical financial bridge comes at a time when the federal administration is putting millions of dollars at risk with on-again, off-again federal funding freezes in grants and contracts to Hawaii’s nonprofit organizations,” Melissa Miya­shiro, president and CEO of the Hawai‘i Alliance of Nonprofit Organizations, told the committee.

The alliance, known as HANO, in written testimony cited USAspending.gov estimates stating that as many as 250 nonprofits in Hawaii received as much as $300 million to $400 million in federal grant and contract funding in the 2023 fiscal year.

It also said the nonprofit sector makes up nearly 12% of the state’s workforce, which if significantly displaced could cause major negative economic impacts.

HANO noted that an executive order by President Donald Trump to freeze funding is currently suspended, but said the Trump administration has been clear that it intends to implement cuts.

SB 933 does not specify an amount of funding, though this can be added later if the bill is taken up in the House and ultimately gets sent to Gov. Josh Green for approval.

The bill is separate from an annual grant application and award program for nonprofits considered each year by the Legislature.

SB 933 was created to specifically address potential negative impacts of federal funding losses to local nonprofit programs providing child care, health care, social services, subsidized housing and homelessness assistance.

“We understand the vital role that nonprofits play in providing essential services to our residents, and we cannot afford to allow those who depend on these services to fall through the cracks,” Sen. Donovan Dela Cruz, Ways and Means chair, said in a statement. “SB 933 provides an option to make sure that these fundamental programs continue to operate without disruption.”

Trisha Kajimura, vice president of strategy and external affairs for Parents and Children Together, told the committee that the nonprofit assists over 15,000 individuals across the state annually and relies on federal funding for some of its 20 programs, which include early education, domestic violence prevention and intervention, and child abuse prevention and intervention.

PACT’s largest direct federal grant helps fund the early childhood education programs Head Start and Early Head Start on Oahu and Hawaii island that serve about 800 children, according to the organization.

“This will be a very critical blow to the state’s Ready Keiki program should we lose the ability to serve our communities in that way,” Kajimura said. “I do want to thank you very much for working on this bill. It’s of utmost importance in these very tumultuous times.”

Ways and Means on Wednesday amended the bill to focus eligibility on nonprofits that provide crucial help in the health and human services sector and are at risk of federal funding losses or reductions.

The committee also included the state Judiciary, which said it depends on $615,000 in federal grant funding to administer child welfare, drug treatment, domestic violence and other services to court-involved adults, youth and families through subawards.

After the committee’s vote, Michelle Bartell, president and CEO of Aloha United Way, called the bill a lifeline to ensure nonprofits can continue serving their most vulnerable populations while working toward long-term solutions.

“The ongoing federal funding uncertainty is placing enormous pressure on our nonprofits, threatening their ability to deliver essential services that countless individuals and families depend on,” Bartell said in a statement.