Gov. Green delivers State of the State address, again prioritizing tax cuts, housing

In his State of the State address on Oʻahu, Gov. Josh Green said Hawaiʻi has been through difficult times in recent years, from the COVID-19 pandemic to the devastating wildfires on Maui, but “by uniting as ‘ohana, we found in each other the faith, hope and strength we needed to keep going and to rebuild.”

Standing in the House Chambers on Tuesday morning during the first 2025 joint session of the Hawai‘i State Legislature, Green confidently said: “Today, I am proud to report to you that the state of Hawai‘i is strong.”

He enters his third year in office with priorities he has had since Day 1: tax cuts and housing.

Last year, Green signed a bill passed by the legislature that provides the largest income tax cut for Hawai‘i families in the state’s history. Over time, it will move Hawai‘i from having the second-highest to the fourth-lowest tax burden in the country, he said.

“This tax cut will take effect in steps over the next seven years, providing an estimated $5.6 billion in total savings to our people,” Green said. “It will reduce taxes from between 10 to 71% for working families, depending on household income.”

A family of four making the median household income of $88,000 in Hawai‘i will see its take-home pay increase by more than $3,600 by 2031 when the tax reform has been fully implemented.

Green said these tax cuts are already going into effect now, and by 2031 the number of Hawai‘i households that will pay zero state income tax will rise from 25 to 40% — keeping more money in people’s pockets, and stimulating statewide economic growth.

Green highlighted the launch of the Health Care Education Loan Repayment Program to address the shortage of health care professionals in rural and underserved areas.

Green said housing is the single largest expense for Hawai‘i families, accounting for 38% of household spending on average. Even before fires destroyed the homes of thousands of people on Maui in August of 2023, the state faced an estimated shortage of 50,000 housing units throughout the islands.

“Because of our lack of affordable housing, we also face a shortage of teachers and healthcare workers — and more Native Hawaiians now live on the mainland than in our state,” Green said.

To address the housing crisis when he came into office in 2022, Green said he immediately approved 10,800 new units of low-income housing for struggling families.

Over the past 18 months, the exemptions established in Green’s two emergency housing proclamations have helped approve or accelerate nearly 7,000 affordable housing units across the state, he said.

Right now, Green said the state is tracking more than 62,000 units over 257 projects being built by state and county agencies and private developers over the next decade — with 13,000 new units to be completed this year and 10,000 more next year.

This includes 46,000 new units of affordable housing.

For the next two years, Green’s administration has requested more than $500 million for housing initiatives. The governor also has been working with the Department of Hawaiian Home Lands on a 5-year plan to deliver more than 7,500 homes and lots for Native Hawaiians.

Green also touted the expanding kauhale (tiny home) villages to 17 statewide, with 30 villages planned by 2026.

In his speech, Green also highlighted the passage of two new gun safety laws: designating sensitive places where firearms are prohibited and providing active-shooter training in public and charter schools

The governor also touted two gun buyback events where approximately 1,000 firearms were collected and the establishment of the Illegal Fireworks Task Force, which has seized 227,000 pounds of illegal fireworks.

Following a deadly fireworks incident on O‘ahu, Green plans to pursue legislation to ensure only safe and legal fireworks are used in the state.

In closing, Green said if the state continues to stand together, “we will reach out dreams, and together we will build the Hawai‘i our children and grandchildren deserve.”

Senate President Ronald Kouchi of Kauaʻi closed the joint session by committing to working with Green this session.

“I will guarantee you today, we’re not going to have agreement all the time, but I believe we are in alignment in what we want for the people of Hawai‘i,” Kouchi said.