Kauaʻi nonprofit Malama Hule’ia planned to use a $750,000 federal grant to purchase an aquatic excavator to remove invasive red mangrove around the Hule’ia river watershed in Lihu’e.

This work would help restore the watershed and protect critical habitat for many native wildlife species, including endangered Hawaiian waterbirds. 

But in February, that grant was frozen and later rescinded, said Sara Bowen, director of Malama Huleʻia.

It was another casualty in the Trump administration’s aggressive cuts to all funding it deemed fraudulent, wasteful or related to DEI (Diversity, Equality and Inclusion).

While the funding did not come directly from one of the nearly 10,000 federal grants that were cut by the Department of Government Efficiency, known as DOGE and led by Elon Musk, it was the result of “trickle down” residual effects of the drying up of funds allocated to conservation and Native cultural sites, Bowen said.

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It also has been another blow to conservation funding in Hawaiʻi, which like many states has critical conservation efforts on hold due to lack of money. Now, the state faces a $560 million shortfall in conservation funding, according to the Care for ʻĀina Now Coalition.

To address these issues at the state level, Hawaiʻi Gov. Josh Green pushed through the State Legislature his new “Green Fee” tax on tourist accommodations. On May 27, Green signed into law the new “climate bill” that was aimed at “building resiliency against the impacts of climate change by providing a stable source of funding for environmental stewardship, hazard mitigation and sustainable tourism.”

The Green Fee, or Senate Bill 1396, increases the statewide Transient Accommodation Tax (TAT) from 10.25% to 11%. It applies to hotel and resort rooms, vacation rentals, Airbnbs and any other form of temporary lodging. For the first time ever, cruise ships will also be subject to the tax while docked in Hawai’i ports. 

The tax is expected to raise more than $100 million annually, according to Green. 

The law takes effect in January, making it the first in the nation to tax the tourism industry in order to fund environmental initiatives, the governor’s office said.

But the bill does not specify how the funds will be managed or allocated. Although earlier iterations of the bill created a separate “green fund” to be dispersed to conservation initiatives statewide, it is not part of the new law.

Instead, the funding distribution will be decided by the Hawai’i State Legislature, which will evaluate grant applications for a wide range of both government and non-profit environmental initiatives, Green said during a press conference when announcing the new law.  

Tom Woods of Reef Guardians, a Kaua’i-based ocean non-profit that conducts critical water quality surveys in several of Kaua’i’s streams and waterways, said he is concerned that the income generated from the green fee could potentially be put into the state’s general fund to be used for non environmental reasons.

“Now, it’s up to the good faith of our government leaders to decide who will actually receive this funding,” he said.

Woods said he would be interested in applying for Green Fee grants in 2026 and hopes to expand Reef Guardian’s stream surveys to cover more of Kaua’i’s waterways.   

​Green highlighted his commitment to support both urban and rural projects, but neither his office nor the bill specified what proportion of the funding will be allocated to each island. Because of this ambiguity, several Kaua’i-based groups say they worry the funding could be centered on Oʻahu projects.

Despite repeated attempts, Kauaʻi Now was unable to get Green’s response to the concerns of conservation groups on the island.

Kauaʻi County Councilmember Fern Holland, chair of the Parks & Recreation Committee, supports the new law and the importance of its potential impact on Kauaʻi.

“It is my hope that the Green Fee will provide dedicated capital to expand and promote low-impact, culturally grounded visitor experiences and hands-on agroforestry and loko iʻa [fishpond] restoration projects on Kauaʻi,” she said.

Holland has her ideas about how the funding could help shape the future of Kauaʻi: “It would be amazing if the money was used to acquire significant sites, such as old fishpond infrastructure and cultural spaces that could be preserved as public resources and places of connection to ʻāina and culture.”

While Green did not provide any specific examples of projects he would like to see funded by the fee, he repeatedly highlighted his commitment to supporting causes focused on “environmental stewardship, climate and hazard resiliency, and sustainable tourism.” 

Several conservation leaders worry the Green Fee funding could promote tourist attractions over organizations more focused on environmental conservation initiatives.

“Becoming a tourist attraction is antithetical to our mission at Malama Hule’ia,” Bowen expressed.

While Malama Hule’ia supports sustainable tourism initiatives in Hawai’i, they hope Green Fee funding will not go solely to these types of industry initiatives. 

“We hope that the distribution of funds truly reflects the value of local knowledge and long-standing stewardship efforts,” Bowen said. 

Because Malama Hule’ia seeks to restore the natural functions of the broader Hule’ia watershed, their work could help mitigate the impact from major climatic events such as flooding and wildfires, according to one of the organization’s case studies. 

Lucas Behnke of The Nature Conservancy Kaua’i branch says he hopes the Green Fee funding can create and strengthen ecosystem partnerships across Kaua’i.

The Nature Conservancy on Kaua’i focuses on invasive species removal and control up in Kaua’i’s deep forests, especially in East Alaka’i. They work with a wide range of partners, including the state Department of Land and Natural Resources and the Kauaʻi Forest Bird Recovery Project, a nonprofit that helps maintain fencing to keep invasive species out of Native forestlands. 

While many conservation groups compete against one another for an increasingly dwindling pot of environmental grants, Behnke says any increase in funding helps their collective mission of protecting Kaua’i’s unique nature. 

He said The Nature Conservancy and their partners’ work also are crucial defenses against the impacts of climate change.

Maintaining healthy, intact native forests can help mitigate the effects of climate change through carbon dioxide removal, water management and wildfire prevention among other benefits, the nonprofit said on its website.

While the Green Fee funding “won’t solve all of our problems, it will keep us going in the right direction,” he said.

Additional funding could allow The Nature Conservancy to expand the area of forest they protect in remote Koke’e. As invasive species conservation requires constant upkeep, this funding could also go to training new staff and maintaining their existing fence line, he said.  

Even if his organization does not receive additional funds from the Green Fee directly, any increase in funding to any of his partner organizations can help increase the speed and scale of their conservation work, Behnke said.

Conservation leaders agree there needs to be consistent funding to make a long term difference. 

In general, there is a mismatch between short-term funding opportunities and the long-term nature of environmental conservation, Bowen said.

“Restoring and stewarding a complex ecosystem like Alakoko Fishpond and the broader Hulē‘ia watershed doesn’t happen on a one- or two-year timeline,” she said. “It requires consistent care, deep cultural knowledge and long-term relationships.” 

Bowen added: “Receiving additional funding would be a game-changer.”

While the increased funding would most likely not go to purchasing their much-needed aquatic excavator, Bowen said it could help hire and train much-needed staff for Malama Hule’ia. 

In the meantime, Malama Hule’ia is turning to community fundraising to raise money for their aquatic excavator. They urge those inspired to help to visit malamahuleia.org and donate to support their cause.