Gov. Josh Green has updated his state budget proposal to include an additional $2.5 billion, through June 30, 2025. The biggest new item is $900 million in financial subsidies for private development of low- and moderate-income housing through the Hawaii Housing Finance and Development Corp.

The additional spending outlined reflects Hawaii’s currently strong budget position, given infusions of federal money that came to Hawaii during the COVID-19 pandemic and related to new federal initiatives. It will not reduce the state’s financial surplus, based on Department of Budget and Finance estimates. That will hold stable at roughly $2 billion.