Legislative Update, Fall 2026

Lauren Zirbel

While the State Legislature is currently not in session HFIA's advocacy efforts continue during the summer and fall. We've been working on County level initiatives and Federal policy, keeping members up to date on State law changes, and preparing for next year. 

At the County level HFIA has been testifying in support of the Honolulu Food Security Fund. This initiative will allow the County to use funds to purchase locally grown food to combat food insecurity. More information on this important program is available in the Foodbank's article in the Fall Issue of the Hawaii Food Industry Magazine. 

At the State and Federal level, we're continuing to work with the Department of Human Services (DHS) to help make sure the upcoming Supplemental Nutrition Assistance Program (SNAP) waiver is implemented smoothly. Thanks in part to HFIA’s advocacy, Hawaii’s DHS asked for and received an implementation delay on our SNAP soda waiver until 4/1/27! HFIA gathered information from retailers which we shared with DHS to help in this successful effort. 

In 2025 Hawaii was one of several states that filed a waiver to partially restrict SNAP Choice by prohibiting the use of SNAP funds to purchase soda. Rural Health Transformation funds were tied to whether states submitted such waivers. This was enacted by the Governor's office and did not require legislative approval. HFIA worked with DHS to ensure that the definition of soft drinks used in the waiver is functional and consistent. We've scheduled regular meeting with DHS and retailers to help proactively solve any potential implementation issues. 

In June, a Federal judge sided with five states that had challenged their waiver, Colorado, Iowa, Nebraska, Tennessee, and West Virginia. 

At the state level we’ve also been keeping members up to date on the ahi labeling law Act 238 (2025) which took effect this July. This law requires retail establishments selling raw processed ahi products to have country of origin labeling. It defines "Retail establishment" as an “establishment licensed under the Perishable Agricultural Commodities Act of 1930, which includes any retail establishment that purchases over $230,000 of fresh or frozen produce per calendar year." When the measure took effect Governor Green and the Department of Agriculture and Biosecurity (DAB), released a statement, noting that "DAB’s Quality Assurance Division, through its Measurement Standards Branch, will support enforcement through education and outreach. If you think your business may be affected, or for links to the full measure or press release feel free to reach out to us. 

While the 2027 Legislative Session may seem like a long way off we're also engaged in preparations for next year. We've been meeting with Senators, Reps, State departments, and our friends from other associations and groups to discuss our priorities and goals for next year. 

This July, I went to Kauai with Consumer Protection Chair Scot Matayoshi, Young Brothers, Public Utilities Commission, Department of Transportation and Stevedores to discuss ways to improve interisland shipping and regulatory structure. We did a tour of the harbor and discussed the tens of millions of dollars YB is losing on Less than Container Load (LCL) and the possibly of allowing freight forwarders to handle this service – which could potentially save the company money and reduce the cost of container services. We also discussed the possibility of legalizing competition and subsidies for unprofitable routes to ensure continued service. 

We all discussed the PUC’s long term regulatory plans now that they have appointed a special overseer and the legislature passed a three-year trial for WIKI. The hope is that reviews will be more streamlined and less expensive now that there is a special overseer appointed at the PUC – something that was announced during the PUC’s  25.75% rate increase for Young Brothers effective January 1, 2026. 

In its approval, the PUC cited YB’s escalating financial instability and the overriding public interest in avoiding an abrupt loss of the regulated interisland shipping services YB provides.

While it approved the rate increase, the commission denied YB’s request for a Water Carrier Inflationary Cost Index (WIKI), a mechanism that automatically adjusts rates outside of a rate case before the PUC. This was overridden by the 2026 legislature. 

At the time of the rate increase, the commission stated they would add a strict oversight conditions, including a prohibition on rate increases for at least two years, as YB implements its business plan intended to regain financial stability, improve operational efficiencies and break the cycle of seeking urgent and substantial rate increase requests. 

Due to the legislation passed in 2026 mandating WICI for 3 years, interisland freight rates for Young Brothers saw an automatic 3% increase on July 1, 2026.

If things work out as advertised during the legislative session, the full rate case amount requested in three years will be close to inflation and less than 5%. We hope that is the case. The entire premise of the legislation was to avoid large rate increases during full rate case reviews. 

HFIA is proud to the voice of Hawaiʻi’s food and beverage industry. We encourage members to reach out to us with your own legislative priorities, questions, and concerns, and to get involved by submitting testimony and being a part of HFIA’s Government Relations Committee.