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Hawaii lawmakers wrap up session featuring tax cuts and help for Maui

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Hawaii lawmakers wrap up session featuring tax cuts and help for Maui


HONOLULU (AP) — Hawaii lawmakers on Friday wrapped up a legislative session heavily focused on addressing Maui’s needs after last year’s deadly Lahaina wildfire. They also took on Hawaii’s housing shortage, tax cuts and measures to support distinctive Hawaii agricultural products like coffee and macadamia nuts. In a more lighthearted move, they adopted the “shaka” as the official state gesture.

Here is a look at some of the major legislation passed during the 60-day session that began on Jan. 17:

Money for Maui and wildfire prevention

Lawmakers appropriated $1 billion to cover various costs stemming from the Lahaina disaster, including $500 million for emergency housing for displaced residents and $124 million in rental assistance for those ineligible for aid from the Federal Emergency Management Agency.

A recognition of how global warming has raised wildfire risks statewide prompted legislators to allocate funds for more firefighting equipment, a state fire marshal and forest restoration.

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Housing and vacation rentals

Lawmakers tackled Hawaii’s acute housing shortage with bills to reform zoning and boost vacation rental regulations.

The zoning measure requires the counties to allow two additional dwellings on each residentially zoned lot with the aim of promoting higher density development.

House Speaker Scott Saiki, a Democrat, told reporters on Wednesday this differed from recent past attempts to address the state’s housing shortage. Those primarily involved subsidies for affordable housing construction.

“We’re seeing in other states, and even in other countries, that governments are looking at zoning as one of the barriers to housing development,” Saiki said. “And it was time for Hawaii to take a look at that as well.”

The Aug. 8 wildfire put a spotlight on vacation rentals by exposing the large share of Maui dwellings being rented to tourists on a short-term basis. This pushed lawmakers to pass a bill giving counties the authority to phase out vacation rentals and make them available for residents. Gov. Josh Green signed the measure into law on Friday.

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Maui’s mayor acted on this bill immediately by announcing county legislation that would phase out vacation rentals operating in areas zoned for apartments. The bill would affect 2,200 West Maui units in and around Lahaina and nearly 5,000 more elsewhere in the county.

Boost for farmers

Lawmakers passed measures creating standards for coffee and macadamia nuts, two of Hawaii’s most high-value crops.

The coffee bill requires Hawaii-grown and processed coffee to contain no less than 51% Hawaii-origin coffee beginning in July 2027. The legislation said existing law allows coffee blends identified as being from the Kona, Kau and Kauai coffee growing regions to contain only small amounts of beans from these places. This deceives consumers and harms coffee growers, it said.

On macadamia nuts, lawmakers passed legislation that would force macadamia-nut processors of iconic brands like Mauna Loa to disclose whether their products contain kernels grown outside Hawaii. Currently, some well-known Hawaii macadamia nut processers sell imported nuts in island-themed packaging without indicating where the nuts are from.

Tax cut

Lawmakers approved tax cuts amounting to $5 billion over the next six years, said Rep. Kyle Yamashita, the chairperson of the House Finance Committee and a Democrat. The cuts are in the form of a higher earned income tax credit, increases to the standard tax deduction and adjustments to income tax brackets.

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Lawmakers also removed the general excise tax on medical bills for patients with Medicaid, Medicare and Tricare health insurance.

Yamashita said the changes are only the first step in needed tax reform and he aims to work on the issue further.

“Because at the end of the day, our biggest problem in our state is high cost of living. Our tax structure is at the root of that,” he told reporters.

Rep. Lauren Matsumoto, the House minority leader, said her Republican caucus has long pushed for the tax measures.

“Our best bills that we passed this year is when we did them bipartisanly, when we worked collaboratively and had input from everybody,” she said.

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State gesture

Lawmakers moved to make the “shaka” the state gesture and recognize Hawaii as its birthplace. The hand symbol is sometimes known outside the islands as the “hang loose” sign associated with surf culture. People in Hawaii display the shaka to say hi and bye as well as thanks and aloha.



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Pacific leaders gather in Hawaii for business summit – The Garden Island

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Pacific leaders gather in Hawaii for business summit – The Garden Island






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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser

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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser


The third-ranked Hawaii men’s volleyball team had no problem recording its 11th sweep of the season, handling No. 6 BYU 25-18, 25-21, 25-16 tonight at Bankoh Arena at Stan Sheriff Center.

A crowd of 6,493 watched the Rainbow Warriors (14-1) roll right through the Cougars (13-4) for their 11th straight win.

Louis Sakanoko put down a match-high 15 kills and Adrien Roure added 11 kills in 18 attempts. Roure has hit .500 or better in three of his past four matches.

Junior Tread Rosenthal had a match-high 32 assists and guided Hawaii to a .446 hitting percentage.

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UH hit .500 in the first set, marking the third time in two matches against BYU it hit .500 or better in a set.

Hawaii has won seven of the past eight meetings against the Cougars (13-4), whose only two losses prior to playing UH were in five sets.

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Hawaii has lost six sets all season, with five of those sets going to deuce.

UH returns to the home court next week for matches Wednesday and Friday against No. 7 Pepperdine.




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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.

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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.


Hawaiian Airlines’ passengers are back in federal court trying to stop something most people assumed was already finished. They are no longer arguing about whether they are allowed to sue. They are now asking a judge to intervene and preserve Hawaiian as a standalone airline before integration advances to a point this spring where it cannot realistically be reversed.

That approach is far more aggressive than what we covered in Can Travelers Really Undo Alaska’s Hawaiian Airlines Takeover?. The earlier round focused on whether passengers had standing and could amend their complaint. This court round focuses on whether harm is already occurring and whether the court should act immediately rather than later. The shift is moving from procedural survival to emergency relief, which makes this filing different for Hawaii travelers.

The post-merger record is now the focus.

When the $1.9 billion acquisition closed in September 2024, the narrative was straightforward. Hawaiian would gain financial stability. Alaska would impose what it described early as “discipline” across routes and costs. Travelers were told they would benefit from broader connectivity, stronger loyalty alignment, and long-term fleet investments that Hawaiian could no longer fund independently.

Eighteen months later, the plaintiffs argue that the outcome has not matched the pitch. They cite reduced nonstop options on some Hawaii mainland routes, redeye-heavy return schedules that many readers openly dislike, and loyalty program changes that longtime Hawaiian flyers say diminished redemption value. They frame these not as routine airline integration but as signs that competitive pressure has weakened in our island state, where airlift determines price and critical access for both visitors and residents.

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What is different about this filing compared with earlier debates is that it relies on developments that have already occurred rather than on predictions about what might happen later.

The HA call sign has already been retired. Boston to Honolulu was cut before competitors signaled renewed service. Austin’s nonstop service ended. Multiple mainland departures shifted into overnight red-eyes. And next, the single reservation system transition is targeted for April 2026, a process already well underway.

Atmos replaced both Hawaiian Miles and Alaska’s legacy loyalty programs, and readers immediately reported higher award pricing, fewer cheap seats, no mileage upgrades, and confusion around status alignment and family accounts. Each of those events can be described as aspects of integration mechanics, but together they form the factual record that the plaintiffs are now asking a judge to examine in Yoshimoto v. Alaska Airlines.

The 40% capacity argument.

One of the more interesting claims tied to the court filing is that Alaska now controls more than 40% of Hawaii mainland U.S. capacity. That figure strikes at the core of the entire issue. That percentage does not automatically mean monopoly under antitrust law, but it does raise questions about concentration in a state that depends exclusively on air access for its only industry and its residents.

Hawaii is not a region where travelers have options. Every visitor, every neighbor island resident, and every business traveler depends on our limited air transportation. The plaintiffs contend that consolidation at that scale reduces competitive pressure and gives the dominant carrier far more leverage over pricing and scheduling decisions. Alaska says that competition remains robust from Delta, United, Southwest, and others, and that share shifts seasonally and by route.

Competitors reacted quickly.

While Alaska integrated Hawaiian’s network under its publicly stated discipline strategy, Delta announced its largest Hawaii winter schedule ever, beginning in December 2026. Delta’s Boston to Honolulu is slated to return, Minneapolis to Maui launches, and Detroit and JFK to Honolulu move to daily service. Atlanta also gains additional frequency. Widebodies are appearing where narrowbodies once operated, signaling Delta’s push into higher capacity and premium cabin layouts.

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Those moves complicate the monopoly narrative. If Delta is expanding aggressively, one argument is that competition remains active and responsive. At the same time, Delta filling routes Alaska trimmed may reinforce the idea that structural changes created openings competitors believe are profitable, and that markets respond when gaps appear.

What changed since October.

In October, we examined whether the case would survive dismissal and whether passengers could refile. That moment felt more procedural than what’s afoot now. It did not alter flights, fares, or loyalty programs.

This filing is different because it is tied to post-merger developments and seeks emergency relief. The plaintiffs are asking the court to prevent further integration while the merits are evaluated, arguing that each added step toward full consolidation this spring makes reversal less feasible as systems merge, crew scheduling aligns, fleet plans shift, and branding converges.

Airline mergers are designed to become embedded quickly, and once those pieces are fully intertwined, unwinding them becomes exponentially more difficult, which is why the plaintiffs are pressing forward now rather than waiting any longer.

The DOT conditions and the defense.

When the purchase of Hawaiian closed, the Department of Transportation imposed conditions that run for six years. Those conditions addressed maintaining capacity on overlapping routes, preserving certain interline agreements, protecting aspects of loyalty commitments, and safeguarding interisland service levels.

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Alaska will point to those commitments as evidence that consumer protections were built into the core approval. The plaintiffs, however, are essentially claiming that those conditions are either insufficient or that subsequent real-world changes undermine the spirit of what travelers were told would remain. That tension between formal commitments and actual experience is at the core of this dispute.

Hawaiian had not produced consistent profits for years.

That is the actual financial situation, without sentiment. Alaska did not spend $1.9 billion to preserve Hawaii nostalgia. It purchased aircraft, an international and trans-Pacific network reach, and a platform it thinks can return to profitability under tighter cost control.

What this means for travelers today.

Nothing about your Hawaiian Airlines ticket changes because of this filing. Flights remain scheduled. Atmos remains the reward program. Integration continues unless a judge intervenes.

However, Alaska now faces a renewed court challenge that points to concrete post-merger developments rather than speculative harm. That scrutiny alone can bring things to light and influence how aggressively future route decisions and loyalty adjustments occur.

Hawaiian Airlines’ travelers have been vocal since the start about pricing, redeyes, lost nonstops, and loyalty devaluation. Others have said very clearly that without Alaska, Hawaiian might not exist in any form at all. Both perspectives exist as background while a federal judge evaluates whether the integration should be impacted.

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You tell us: Eighteen months after Alaska took over Hawaiian, are your Hawaii flights better or worse than before, and what changed first for you: price, schedule, routes, interisland flights, or loyalty programs?

Lead Photo Credit: © Beat of Hawaii at SALT At Our Kaka’ako in Honolulu.

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