Trump's FY 2027 Budget Proposes Eliminating Native Hawaiian Block Grant and Lending Funding

President Trump released his fiscal year 2027 budget in April 2026, proposing to eliminate a Native Hawaiian block grant program that annually sends tens of millions of dollars to the Department of Hawaiian Home Lands. The program helps build housing and lease homesteads to those on the department's waitlist, many of whom have waited decades.

In response, the GOP-led House Appropriations Committee passed a spending measure that restored funding for the Native lending program to $35 million.

Honolulu Civil Beat reported these developments as part of broader challenges to Native Hawaiian initiatives. S. Sen. Brian Schatz, a key Democratic member of the Senate Appropriations Committee, stated that Trump's declaration marks a significant escalation in the fight over Native Hawaiian programs.

U.S. government, similar to that of Native American tribes. S. Justice Department issued a legal memorandum in December 2025, arguing that certain Native Hawaiian education programs were race-based and unconstitutional.

U.S. Honolulu Civil Beat reported that this memo aligns with arguments from conservative groups.

U.S. Rep. Ed Case, who sits on the House Appropriations Committee, stated that the DOJ memo looks like it was 'written with a result in mind' and is 'highly tailored' to legal arguments by conservative groups. Case stated that the administration is slow-walking previously allocated funds for Native Hawaiian programs and taking longer to process grant applications.

He described these actions as part of a coordinated effort. Honolulu Civil Beat noted that such delays have had a chilling effect, with organizations scaling back services or delaying investments due to funding uncertainties. Outside groups have mounted legal challenges to Native Hawaiian programs.

Students for Fair Admissions has targeted Kamehameha Schools over its admissions policy. Do No Harm is trying to open up a Native Hawaiian health scholarship program to non-Hawaiians. The Trump administration's posture targets diversity, equity, and inclusion in government, aiming to slash programs seen as based on racial preferences.

Schatz expressed confidence that Congress will continue funding Native Hawaiian health care, education, and housing programs despite the proposals.