Hawaii
Hawaii is America's Worst State for Business in 2024, with off-the-charts costs and climate risks rising
An aerial image taken Aug. 10, 2023, shows destroyed homes and buildings burned to the ground in Lahaina in the aftermath of wildfires in western Maui, Hawaii.
Patrick T. Fallon | Afp | Getty Images
First came the Covid-19 pandemic, striking at the very heart of Hawaii’s economy.
Then, just as the state was beginning to recover, came last summer’s deadly Maui wildfires, which killed more than 100 people, destroyed upward of 2,000 structures, did $5.5 billion in damage and paralyzed the state’s tourism industry yet again.
Finishing last in CNBC’s 2024 competitiveness ranking, America’s Top States for Business, seems pretty minor in comparison to all of that. But Hawaii’s economic issues go even deeper than the high-profile tragedies that have befallen the state.
Consider the Honoapiilani Highway.
Hawaii Route 30 hugs the western shore of Maui. Well before the fires, state transportation officials warned in a 2021 report about climate risks that the highway was at risk from rockfalls, landslides, flooding from high waves, storm surges, coastal erosion and even tsunamis. Already, portions of the road frequently close due to flooding.
“Given our understanding of what is changing, we need to make some tough decisions to ensure the long-term viability of the State,” the report said.
A sign is posted warning of earthquake damage to the road from seismic activity at the Kilauea volcano on Hawaii’s Big Island, in Hawaii Volcanoes National Park on May 17, 2018.
Mario Tama | Getty Images
Hawaii was never going to do well in a competitive ranking that emphasizes infrastructure, as this year’s does. The state is remote — 2,400 miles from the mainland — and as an island chain, basic infrastructure features that are important elsewhere, such as freight rail, are irrelevant. But now, even the infrastructure the state does have is under threat, such as the Honoapiilani Highway.
“That’s the only link to the rest of the island from the area where the wildfires were,” said U.S. Secretary of Transportation Pete Buttigieg, who visited Hawaii in February.
The state is set to receive $2.8 billion under the Bipartisan Infrastructure Law, and nearly half of it will go toward rebuilding bridges and roads. Some $160 million of that will go toward relocating portions of the Honoapiilani Highway.
“We’re funding them to raise that highway to higher ground,” Buttigieg told CNBC. “We’re not going to make somebody build a road the exact same way if it’s getting washed out year after year by what used to be a once-in-100-years event.”
In an aerial view, cars back up for miles on the Honoapiilani Highway as residents are allowed back into areas affected by the wildfire, in Wailuku, Hawaii, on Aug. 11, 2023.
Justin Sullivan | Getty Images
It will be at least 2027 before the improvements are complete, transportation planners say. Add the many other roads and bridges needing help, and it begins to explain why Hawaii’s infrastructure ranks No. 47 in this year’s Top States study.
The high cost of paradise
Hawaii is also America’s most expensive state to do business in, with the third-highest cost of living. Residents and businesses pay the nation’s highest utility costs, and corporate and individual taxes are high.
With so many inherent disadvantages, why doesn’t Hawaii finish at the bottom of the rankings every year? The answer, in part, is because it’s Hawaii, with a legendary quality of life. But now, even that is under siege.
Hawaii ranks No. 7 for Quality of Life in 2024, its lowest ranking in the important category since our Top States study began in 2007.
It is not that Hawaii isn’t still a paradise. But even in a paradise, working families need child care.
While licensed child-care facilities are readily available in Hawaii, they are prohibitively expensive. According to Child Care Aware of America, child care in Hawaii costs 18% of the median income for a married couple. That is the most expensive in the country, and nearly twice the national average.
Multiple studies have linked quality child care and preschool to economic competitiveness.
In 2022, the Hawaii legislature approved $200 million in spending for new prekindergarten classrooms, part of a broader goal championed by Lt. Gov. Sylvia Luke to offer universal pre-K for three- and four-year-olds in the state by 2032.
A family walks on the beach together during sunset in Kauai, Hawaii.
Fly View Productions | E+ | Getty Images
“Access to preschool is a social justice issue for Hawaii,” Luke said in a statement at the time. “Children who have attended high-quality preschool or child-care programs are much better prepared for success in kindergarten, but not every family has access to early learning programs.”
The plan was to build 80 new classrooms by this August, with ambitious annual goals after that. But according to a website for the program run by Luke’s office, the program is already falling short of its goals. Two years after the bill was passed, only about half the money has been spent. Just 13 classrooms have been built, with another 50 under construction. The physical facilities are just part of the battle. Hawaii also faces a serious shortage of child-care workers.
An economy struggling to rebound
Put it all together, and it leads to America’s second-worst economy, according to the Top States study, after Mississippi. It is little surprise that no major companies are headquartered there. Economic growth was modest last year as the state struggled to recover from the wildfires, and job growth was meager at best.
In their most recent quarterly economic outlook, published in June, forecasters with the state’s Department of Business, Economic Development and Tourism predicted that tourism will end the year flat following a 4% drop in the first four months of the year, largely due to the wildfires.
They do expect visitor traffic to bounce back next year, and to continue growing — albeit at more modest levels — through 2026.
But in America’s Bottom State for Business, they have learned the hard way that Mother Nature can have other ideas.
Hawaii
Volcano Watch: Think Hawaii has many volcanoes? Think again, says El Salvador – West Hawaii Today
This past March, a team of U.S. Geological Survey scientists — two of whom travelled from Hawaii — visited El Salvador in Central America for volcanological field studies and a workshop on lava flow hazards. Exchanges like this help to improve awareness of volcanic hazards in other countries, and they enable the USGS to better understand volcanoes in our own backyard.
El Salvador is the smallest country in Central America, sitting on the Pacific coast and measuring slightly larger than all the Hawaiian Islands combined.
However, the eight main Hawaiian Islands are comprised of only 15 volcanoes above sea level; El Salvador, on the other hand, has over 200! And that’s with a population of about 6 million people, about four times as many as Hawaii.
There are numerous volcanoes in El Salvador because it sits along the Central American volcanic arc, rather than atop a hotspot like Hawaii. Volcanic arcs form where an oceanic tectonic plate subducts beneath either a continental plate or another oceanic one; the ocean crust triggers melting as it dips into the Earth’s mantle, creating magma that rises to the surface through the overlying plate. Though El Salvador has five larger volcanoes with historical eruptions, numerous fault lines allow magma from the subduction zone to emerge just about anywhere. This has resulted in hundreds of smaller volcanoes, most of which have erupted only once.
Volcano monitoring in El Salvador is handled by the Ministerio de Medio Ambiente y Recursos Naturales (MARN). In addition to tracking the weather and other natural hazards, a small team of volcanologists works to study the geological and geophysical dynamics of the country’s volcanoes, while maintaining a watchful eye for signs of unrest. The stratovolcanoes of Santa Ana and San Miguel have both erupted in the past 25 years, but even more destructive events have occurred in the not-too-distant past: San Salvador volcano sent a lava flow into presently developed areas in 1917, and Ilopango caldera had a regionally devastating eruption in the year 431.
USGS, through its Volcano Disaster Assistance Program (VDAP), has maintained a collaborative relationship with MARN for decades. Co-funded by the U.S. Department of State, VDAP has supported numerous technical investigations and monitoring projects at volcanoes in developing countries around the world. Meanwhile, many MARN volcanologists have even studied in the United States as part of the Center for the Study of Active Volcanoes (CSAV) course held every summer in Hawaii and Washington state.
In recent years, VDAP’s relationships in El Salvador have focused on geologic projects to describe the eruptive history and hazards of Santa Ana volcano and a broader effort to assemble a national “volcano atlas,” which will include locations, compositions, and — hopefully — approximate ages for the more than 200 volcanic vents in the country. Such knowledge will enable more accurate understanding and delineation of hazards associated with their eruptions, which are both explosive (ash-producing) and effusive (lava flow-producing).
The field work in March served both projects. Dozens of samples were collected to correlate and date eruptive deposits across Santa Ana, including three sediment cores from coastal mangroves and a montane bog that may contain distant ashfall from the volcano. Reconnaissance visits were also made to several monogenetic (single-eruption) vents scattered around western El Salvador to assess their genesis and ages.
Finally, VDAP sponsored a weeklong workshop on lava flow hazards and monitoring for MARN staff and partner agencies. Since El Salvador’s last lava flow erupted in 1917, none of the current team have responded to such an event. USGS scientists from the Hawaiian, Cascades, and Alaska Volcano Observatories discussed their experiences and best practices developed during recent eruptions at Kilauea and Mauna Loa in Hawaii, as well as Great Sitkin and Pavlof in Alaska.
While the USGS scientists learned plenty about volcanism in El Salvador during this trip, it also provided key insights to bring home to our own volcanoes. Explosive eruptions in Hawaii are relatively rare, but the ability to correctly interpret their deposits is critical to understanding potential future hazards. Additionally, the more distributed nature of volcanoes in El Salvador has led to interesting interactions between lava flows and their more-weathered depositional environments, not unlike some of Hawaii’s older volcanoes: Hualalai, Mauna Kea, and Haleakala. We thank MARN for the opportunity to visit and study their country’s volcanoes.
Volcano
activity updates
Kilauea has been erupting episodically within the summit caldera since Dec. 23, 2024. Its USGS Volcano Alert level is ADVISORY.
Episode 46 of summit lava fountaining happened for nine hours on May 5. Summit region inflation since the end of episode 46 indicates that another fountaining episode is possible but more time and data is needed before a forecast can be made. No unusual activity has been noted along Kilauea’s East Rift Zone or Southwest Rift Zone.
Mauna Loa is not erupting. Its USGS Volcano Alert Level is at NORMAL.
HVO continues to closely monitor Kilauea and Mauna Loa.
Please visit HVO’s website for past Volcano Watch articles, Kilauea and Mauna Loa updates, volcano photos, maps, recent earthquake information, and more. Email questions to askHVO@usgs.gov.
Hawaii
The Good Side: Extraordinary Birthdays For Every Child
WASHINGTON (Gray DC) – For most kids, a birthday means cake, gifts and a reason to celebrate.
For more than a million children experiencing homelessness in America, it often means none of that.
Nonprofits across the country are throwing personalized parties for children in homeless shelters to make sure they feel special on their big day.
The Good Side’s National Correspondent Debra Alfarone takes us to a birthday party for Yalina.
Copyright 2026 Gray DC. All rights reserved.
Hawaii
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