The Hawaiʻi House of Representatives recently advanced five bills addressing workforce shortages, preserving the social safety net, and diversifying the state’s economy.
According to state Representative Jackson Sayama, House Committee on Labor chair, the bills advance policies to recruit and retain skilled public employees, grow the next generation of local labor, and develop a strategic plan for future workforce development.
Challenges related to short- and long-term labor deficits and strengthening the state’s economy were priorities set by the House majority at the outset of the 2026 legislative session.
The following bills were passed on the third reading and have crossed over to the Senate for review:
HB2335 HD1 – Relating to Workforce Development
The bill establishes that participants in state-funded internship and workforce development programs are eligible for internal recruitment with their sponsoring department or agency upon completing at least 480 hours of training.
This measure creates pathways for trainees to transition to full-time employment, providing more opportunities to expand workforce development, fill longstanding vacancies, and support the next generation of public servants.
HB1661 HD1 – Relating to Cafeteria Plans
The bill specifies that the maximum contribution and carryover amounts for a public service flexible spending account plan (cafeteria plans) are set in accordance with the annual limits prescribed by the Internal Revenue Service (IRS).
Given the rising cost of living in Hawaiʻi, aligning employer-sponsored benefit arrangements with IRS-prescribed annual limits helps public employees offset costly out-of-pocket health and dependent care expenses.
HB2116 HD2 – Relating to Grants
The bill appropriates funds to the Office of Community Services, under the Department of Labor and Industrial Relations, to award grants to certain nonprofit organizations that assist residents in qualifying for federal aid programs.
In response to new federal requirements directed at able-bodied adults without dependents, this legislation protects residents’ access to crucial federal medical, food, and housing programs by supporting Hawaiʻi’s nonprofits, which deliver important services to the communities they serve.
HB1859 HD1 – Relating to Workforce Development
The bill requires the Workforce Development Council to recommend a comprehensive statewide workforce strategy for inclusion in the state unified plan to the governor. It also requires the council to facilitate the alignment of workforce development efforts and programs conducted by state departments and agencies to achieve the state unified plan and the comprehensive statewide workforce strategy.
This bill aims to improve Hawaiʻi residents’ access to jobs that provide a sustainable living wage by fostering coordinated efforts among partner organizations within the framework of the statewide strategy.
HB1851 HD3 – Relating to Taxation
The bill establishes an apprenticeship program income tax credit for wages paid to each apprentice incurred by a taxpayer for qualified apprentices.
The program seeks to incentivize private-sector employers to expand apprenticeship opportunities, retain local talent, and expand workforce opportunities in Hawaiʻi.
To follow these bills and more, visit the Hawaiʻi State Legislature website.
