State lawmakers approve $40 million in grants for nonprofits, including Hilo groups

A proposed workforce-training center in Hilo could strengthen hospice and palliative-care staffing across East Hawaii, as lawmakers divided $40 million among roughly 170 nonprofits and left 266 applicants without awards.

The money was folded into the state budget bill and split evenly between operating grants and capital-improvement projects under the Legislature’s grant-in-aid process. This year’s pool climbed from $30 million in each of the previous two years, matched the 2023 appropriation and remained below the $49 million approved in 2022. Lawmakers also approved a separate one-time $50 million nonprofit program in 2025 for organizations squeezed by federal funding delays and reductions, a sign of the fiscal pressure still hanging over the sector.

The competition was steep. There were 443 applications for the 2026 legislative aid grants and 177 approvals, with lawmakers using smaller-than-requested awards in many cases so more organizations could share the money. Sen. Donovan Dela Cruz said the larger pool was meant to help keep key programs running during continued federal uncertainty. Rep. Kyle Yamashita said the final decisions were difficult, but were intended to spread support across a wide range of service areas.

The Big Island connection runs through Hospice of Hilo, which does business as Hawaii Care Choices. The organization applied for $2 million to help build a workforce-training center in Hilo. Hawaii Care Choices says it has served East Hawaii, from Laupāhoehoe to South Point in Kaū, since 1983, and its mission includes hospice and palliative care, grief support, caregiver respite and workforce training. Its capital campaign lists a goal of $9,931,291, with $1,671,306 raised and $8,239,345 still needed.

Legislative application materials said the proposed capital improvements would expand access to hospice, palliative care, grief support and healthcare workforce training for East Hawaii residents, including kūpuna, seriously ill patients and families dealing with geography, cost and transportation barriers. That local need is sharpened by the broader workforce crunch: a 2025 Senate bill on health-care training cited nearly 4,700 openings statewide for non-physician, patient-facing jobs.

The Hilo provider has already drawn state support before. A 2025 newsletter from Sen. Joy San Buenaventura said Hospice of Hilo received $75,000 for training, upgrades and outreach tied to the MedQUEST palliative-care services benefit. For East Hawaii, the new grant round is less a ceremonial budget item than a test of how far state dollars can go in keeping care networks staffed, trained and within reach.