$7.5M in federal funding secured for housing, transportation projects on Kaua‘i

Hawai‘i’s federal delegation secured $7.5 million in federal funding for housing and transportation projects on Kaua‘i through the Fiscal Year 2026 appropriations process.

Senators Brian Schatz and Mazie Hirono championed funding for the housing and shared-use path projects through Congressional Directed Spending, with Rep. Jill Tokuda also championing the two housing projects through Community Project Funding, according to a news release from Kaua‘i County.

The Fiscal Year 2026 funding package includes $3.15 million for the Lima Ola Affordable Housing Subdivision in ‘Ele‘ele. Funding from the U.S. Department of Housing and Urban Development Community Development Fund will support Phases III and IV of the 75-acre, county-owned Lima Ola subdivision. Once complete, Lima Ola will provide approximately 600 permanently affordable homes, making it the county’s largest affordable housing development and a cornerstone of local housing efforts.

The package also includes $2 million for the Kilauea Town Expansion Project, supported through HUD’s Community Development Fund. This funding will advance Phase I site preparation for a new affordable housing subdivision in Kīlauea. The project is planned to deliver approximately 350 affordable rental and for-sale homes while integrating parks, commercial space, and future county services to meet the needs of Kaua‘i’s North Shore residents.

In addition, $2.3 million has been secured for the Waimea to Kekaha Shared Use Path through the U.S. Department of Transportation Highway Infrastructure Programs. The project will support construction of a shared-use pedestrian and bicycle path along Kaumuali‘i Highway between Waimea and Kekaha, improving safety and connectivity for residents of all ages, supporting active transportation, and providing safer routes to school for students traveling between the two communities.

The funding was signed into law on Feb. 3, 2026.

“These federal earmarks represent meaningful progress toward some of Kaua‘i’s most pressing needs,” said Mayor Derek S.K. Kawakami. “We appreciate the strong partnership and advocacy of our federal delegation, which allows us to invest in affordable housing and safe, connected infrastructure, and to continue building communities where local families can live, work, and thrive.”

These investments reflect years of planning and coordination among county departments, federal partners, and community stakeholders, a release from Kaua‘i County states. The county will work closely with federal agencies to finalize grant agreements and advance each project into the next phases of design and construction.

Schatz, a senior member of the Senate Appropriations Committee, said he and his colleagues fought hard to make sure Kaua‘i got its fair share of federal resources in the appropriations process.

“This new funding will help support affordable housing development and safer transportation options for residents across Kaua‘i,” Schatz stated.

Included in the Transportation, Housing and Urban Development appropriations bill is more than $7.45 million in federal funding for three county projects that support affordable housing development and safer transportation infrastructure across the island.

“The $7.5 million in federal funding to support affordable housing and transportation projects can make a difference for people across Kaua‘i,” Hirono said. “These projects will help develop hundreds of affordable housing units and create safe, sustainable transportation options for residents on the island. I’ll continue working with our delegation and partners across government to deliver federal investment in communities on Kaua‘i and across our state.”

Tokuda said Kauaʻi families deserve a chance to buy a home and put down roots in this place that they love.

“That means investing in housing that people can afford and putting in the necessary infrastructure to build and strengthen communities,” the representative stated. “I’m proud to have worked to secure federal funding to advance the Lima Ola and Kilauea Town developments and will continue fighting to bring resources home that strengthen Kauaʻi communities today and for generations to come.”