A total of 131 Maui residents displaced by the Aug. 8, 2023, wildfires and working on recovery efforts were laid off Monday after the Trump administration cut federal funding for their positions.

The workers were employed through the National Dislocated Worker Grant program and working for 27 “host” organizations on cleanup, recovery and humanitarian efforts, according to the Maui Economic Opportunity, which managed the federal grant program on the island.

MEO said in a Monday letter to all NDWG participants and their employers that they had ceased the program’s operations — and the jobs it funded — after being informed by the state Department of Labor and Industrial Relations that the money was no longer available.

“All the folks that thought they were going to work Tuesday, they got notified Monday night that it’s over. So, I mean, that’s pretty harsh. A lot of these guys are survivors or helping survivors,” Maui County Council member Tamara Paltin told the Honolulu Star-­Advertiser. “The federal government is expecting folks to start paying rent next month as well. So that’s rough.”

The Council for Native Hawaiian Advancement announced Tuesday that 17 employees involved in its Kako‘o Maui recovery programs have been placed on leave due to the funding freeze, affecting the direct aid provided to wildfire survivors at the now-temporarily closed Kako‘o Distribution Center. The 17 were part of the 131 workers who lost their positions.

“Today, just like many other community organizations, Kako‘o Maui is faced with the loss of a majority of our staff due to a federal funding freeze affecting the National Dislocated Workers Grant. This loss has led to the temporary closure of the Kako‘o Distribution Center,” Kako‘o Maui officials said in an email to CNHA. “As we continue to work through staffing challenges, currently scheduled appointments will be canceled until further notice. We understand our commitment and kuleana to the community and are actively looking for ways to continue serving you. Mahalo for your understanding.”

Paltin said the loss is significant for Maui.

“Some of the immediate impacts is the Kako‘o Resource Center — a lot of their workers were laid off from this, and they had to cancel all their appointments with survivors and not open today. I know that the Humane Society got hit,” Paltin said, referring to the Maui Humane Society’s loss of funding that laid off three employed wildfire survivors Opens in a new tab.

CNHA officials said they recognize the significant impact the funding cuts will have on families still recovering from the Maui wildfires and are taking immediate action to restore the affected positions and prevent future disruptions.

The organization is seeking alternative funding sources to sustain its programs and reinstate the affected employees, officials said.

“These employees have been the backbone of our Maui recovery efforts, ensuring that thousands of Lahaina residents had food, shelter, and essential supplies,” CNHA Chief Executive Officer Kuhio Lewis said in a statement. “This funding cut was made without a clear assessment of its impact, and the loss of these jobs will disrupt services that families still rely on every day.”

In response to these funding challenges, CNHA is seeking emergency funding from private foundations, including the Hawaii Community Foundation, to restore the affected jobs. Lewis also traveled Tuesday to Washington, D.C., to advocate for the restoration of NDWG funds.

“Our message to policymakers is simple: These services are still desperately needed, and cuts like these have real consequences for real families. We hope the federal government will prioritize data-driven decision-­making rather than making reductions that undo months of progress,” Lewis said.

CNHA, according to Lewis, is exploring long-term funding strategies alongside immediate solutions to ensure that Maui’s recovery efforts persist beyond the current crisis. The organization also hopes to secure ongoing support for families affected by the wildfires, emphasizing the need for stability even as federal funding concludes.

Before the funding freeze, NDWG had assisted over 300 displaced workers and placed them at 51 recovery sites since October 2023. MEO reported that it could not cover its January reimbursement request or expenses incurred from Jan. 31 through Feb. 25. Although a county grant will help cover some program expenses, there are concerns that some work sites may now be deemed ineligible for funding.

“That left us no choice other than shutting down immediately to prevent incurring further potentially non-reimbursable expenses,” MEO Chief Executive Officer Debbie Cabebe said in a statement. “We do not have an abundance of discretionary funding to cover potentially millions of dollars in expenses.”

MEO officials said they had hoped to continue NDWG through the end of September. Since its inception, NDWG provided temporary employment opportunities ranging from $20.50 to $27 an hour, allowing workers to support themselves while contributing to recovery efforts.

While Paltin acknowledged that some workers might have transitioned into other employment opportunities, she emphasized that the program was intended as a temporary bridge to permanent employment.

“I imagine some of the jobs that the people had before the fire reopened,” she said. “Because, you know, immediately after the fire, things were shut down. But the transition wasn’t meant to be like, ‘You’re fired. Don’t come back tomorrow,’ you know?”

MEO is working with Employers Options and the Maui County American Job Center to assist displaced workers in finding new employment.

A resource fair is scheduled for 9 a.m. to noon Saturday at the MEO Family Center in Wailuku.

NDWG participants are encouraged to contact Employers Options at 808-877-6555 for assistance with unemployment benefits.

The Maui American Job Center also can provide support at 110 Alaihi St., Suite 209, Kahului, or online at mauicounty.gov/1116/Maui-American-Job-Center Opens in a new tab.

Paltin said the implications of these federal cuts for Maui’s recovery efforts could lead to increased hardship and that the loss of funding would intensify challenges for families still in the recovery process.

“Just more suffering and hardship,” she said. “There’s also a lot of uncertainty as to the Community Development Block Grant-Disaster Recovery funds right now. But we’re just going to try and stay the course on that.”

Paltin said these federal funds were expected for rebuilding projects, including government-assisted housing like the Front Street Apartments. With uncertainties surrounding the funding, the county might need to explore alternative solutions.

“It’s questionable. There’s going to be a lot more suffering for people,” she said. “And for the county, we will have to be flexible and creative — we already had many people falling through the cracks. This is just going to exacerbate things.”