Kauai County Secures $7.5 Million in Federal Funding for Housing, Transportation

Kaua‘i officials announced that Hawai‘i’s federal delegation secured roughly $7.5 million through the Fiscal Year 2026 appropriations process to fund three county projects for affordable housing and safer transportation infrastructure, with the funding signed into law on February 3, 2026. The County said the FY26 package includes $3.15 million for Lima Ola in ‘Ele‘ele and $2.0 million for the Kīlauea Town Expansion, with a third project described as a shared-use path or transportation project but not assigned a line-item amount in the announcement.

The Lima Ola allocation of $3.15 million will support Phases III and IV of the 75-acre, county-owned Lima Ola Affordable Housing Subdivision in ‘Ele‘ele, with funding identified as coming from the U.S. Department of Housing and Urban Development Community Development Fund. County materials state that “Once complete, Lima Ola will provide approximately 600 permanently affordable homes, making it the County’s largest affordable housing development and a cornerstone of local housing efforts.”

The Kīlauea Town Expansion received $2.0 million for site preparation, described by federal appropriations language as land clearing and grading for a new subdivision planned to include about 350 affordable rental and for-sale homes. The federal description names single-family, multifamily, and duplex housing types and a planned mixed-use community expected to include park space, commercial and light industrial areas, and wastewater treatment.

The County’s announcement credits Senators Brian Schatz and Mazie Hirono with championing the housing and shared-use path projects through Congressional Directed Spending, and Representative Jill Tokuda with championing the two housing projects through Community Project Funding. Senator Schatz said, “We fought hard to make sure Kauai got its fair share of federal resources in the appropriations process.” Representative Tokuda said, “I’m proud to have worked to secure federal funding to advance the Lima Ola and Kilauea Town developments and will continue fighting to bring resources home that strengthen Kauai communities today and for generations to come,” and added, “Our Kauai families deserve a chance to buy a home and put down roots in this place that we love. That means investing in housing that people can afford and putting in the necessary infrastructure to build and strengthen communities.”

Mayor Derek Kawakami framed the awards as practical progress for county priorities, saying, “These federal earmarks represent meaningful progress toward some of Kauai’s most pressing needs,” and, “We appreciate the strong partnership and advocacy of our federal delegation, which allows us to invest in affordable housing and safe, connected infrastructure, and to continue building communities where local families can live, work, and thrive.” Senator Mazie Hirono added, “The $7.5 million in federal funding to support affordable housing and transportation projects can make a difference for people across Kaua‘i. These projects will help develop hundreds of affordable housing units and create safe, sustainable, transportation options for residents on the island.”

Federal appropriations documents from Senator Schatz’s office list a Kaua‘i housing entry at $3.2 million that appears to correspond to Lima Ola, a separate $2.0 million entry for Kīlauea, and additional Kaua‘i items such as $124,000 for the Kaua‘i Economic Development Board to support workforce development. County communications use both the rounded $7.5 million figure and the phrase “more than $7.45 million,” and the announcement does not publish a specific dollar amount or location for the shared-use path project.

County leaders say the awards clear a funding hurdle for Lima Ola Phases III and IV and Kīlauea site work, but county schedules, permitting status, contracting plans, and the exact line-item for the transportation project were not specified in the announcement. With the FY26 appropriations now law, Kaua‘i officials must translate the $3.15 million and $2.0 million allotments into procurement and construction milestones while clarifying the remaining funds and the route and scope of the shared-use path.