In preparation for possible federal funding freezes, the state Legislature is considering a program for one-time grants to support essential services provided by nonprofits.
The Senate Ways and Means Committee passed a recently filled-in version Wednesday of Senate Bill 933, a short-form measure, to set aside money from the state budget for grants to support services across the local nonprofit sector.
“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,” said Sen. Donovan Dela Cruz, who chairs the committee, in a statement.
In 2023, some 250 Hawaiʻi nonprofits received federal money that totaled between $300 million and $400 million. The sector also employs 12% of the local workforce, or nearly 60,000 people, according to the U.S. Bureau of Labor Statistics.
“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 Hawai’i’s nonprofit organizations,” said Melissa Miyashiro, president and CEO at the Hawai’i Alliance of Nonprofit Organizations.
Local nonprofits support programs in health centers, early childhood education, domestic violence support, subsidized housing, homelessness prevention and more, she said.
The federal government has been looking to cut federal spending and services across the country. There have already been pauses on some local programs that receive federal support, and some federal workers have been let go.
