“While it won’t be easy to stop all the damage from these cuts, we’re moving quickly to protect our communities. Over the next few weeks, we’ll be meeting with state and local officials, community partners, and service providers to assess the fiscal impact on Hawai‘i and develop operational plans to blunt the harm. That includes coordinating resources, setting local priorities, and making sure the most vulnerable aren’t left without support. These next few years won’t be easy, but we are mobilizing now to respond, protect our people, and make sure Hawai‘i can weather what’s coming.”
– U.S. Senator Brian Schatz, Governor Josh Green, U.S. Senator Mazie K. Hirono, U.S. Representatives Ed Case and Jill Tokuda
CUTS TO HEALTH CARE, FOOD ASSISTANCE, AND EDUCATION
On July 4, 2025 President Donald Trump signed legislation into law that institutes major changes to Medicaid (Hawai‘i Med-QUEST), the Supplemental Nutrition Assistance Program (SNAP), and Federal Student Loans.
These changes include new eligibility requirements that will make it more difficult for people to continue accessing these services.
Note: As the administration begins to implement this law and provides more guidance on enforcement, this webpage will be updated to help answer any questions you may have. More information about the impacts of other recent cuts to federal funding is available here.
MED-QUEST (40,000+ Residents Impacted)
Med-QUEST is a joint federal-state program that provides health coverage or nursing home coverage to more than 400,000 people in Hawai‘i. Beneficiaries include children, pregnant women, parents of eligible children, low income adults, former foster care children, aged, blind and disabled individuals.
Med-QUEST members are encouraged to continue to making and keeping appointments with health care providers and picking up any medications that are prescribed. Any changes to your coverage will be noticed in advance by Med-QUEST. More information from the Department of Human Services is available here. More information from the Centers for Medicare & Medicaid Services is available here.
Important Dates
- October 1, 2026: Non-citizen residents, such as asylum seekers and refugees, may no longer be eligible for Med-QUEST benefits. Individuals from the Freely Associated States are not impacted.
- December 31, 2026: In order to be eligible or retain Med-QUEST coverage, low-income adults will be required to certify that they work or attend a work or education program at least 80 hours per month. Exceptions may apply.
- December 31, 2026: Med-QUEST will reverify your eligibility for coverage every 6 months.
- January 1, 2028: Changes to federal funding for Medicaid take effect.
- October 1, 2028: Low-income adults will be required to pay new copayments for certain health care services, up to 5 percent of income (or $35 per visit)
SNAP
The Supplemental Nutrition Assistance Program (SNAP) provides crucial food and nutritional support to nearly 200,000 residents across Hawai‘i. The program serves qualifying low-income and needy. More information from the Hawai‘i Department of Human Services is available here. More information from the U.S. Department of Agriculture is available here.
Important Dates
- As early as 2025: In order to be eligible to retain SNAP coverage, individuals ages 55-64 and parents with children over age 14 will be required to certify that they work or attend a work or education program.
- As early as October 2026: Changes to federal funding for SNAP take effect.
EDUCATION
The 2025 Republican tax law makes several changes to federal student aid. These include the elimination of certain loan programs and changes to repayment plans.
Important Dates
- July 1, 2026: Graduate PLUS loans are eliminated and Parent PLUS loans are scaled back.
- July 1, 2026: Nearly all repayment plans for new borrowers will be eliminated and replaced with fixed payment or income-based repayment plans.
- July 1, 2026: Pell Grant eligibility is eliminated for students and families with certain incomes and could exclude students with scholarships.
TAX REFORM
The 2025 Republican tax law makes several changes to federal tax previsions. These include making the 2017 tax cuts permanent and changes to certain deductions.
Important Dates
- As early as 2025: The cap on state and local tax deductions (SALT) is increased from $10,000 to $40,000 until 2028.
- As early as 2025: Tip amounts of less than $25,000 may be tax-deductible until 2028 depending on your field of work and your total income.
- As early as 2025: Up to $12,500 of overtime pay may be tax-deductible until 2028, depending on your field of work and your total income.
- As early as 2025: Taxpayers over age 65 can claim an extra deduction up to $6,000 through the 2028 tax year, depending on your income. More details from AARP are available here.
- As early as 2025: The child tax credit is $2,200 for every qualifying child and will be adjusted for inflation each year, depending on income and the number of children you have.
- September 30, 2025: A tax credit for electric vehicles ends.
- As early as 2026: A tax credit of $3,200 for Americans making energy improvement changes to their homes ends.
- As early as 2026: A new one percent tax on cash-based remittance transfers starts.
GET HELP
If you have additional questions or require further assistance, please submit a request to our casework team here.
There are also state and local agencies and nonprofit organizations in Hawai‘i who may be able to help you.
Health Care
Food Assistance
FAQs
This law establishes new eligibility requirements for Med-QUEST and places new administrative burdens on enrollees. The law also is estimated to reduce federal payments to Med-QUEST by about $5 billion over the next decade.
There are about 135,000 low-income adults enrolled in Med-QUEST who will face new eligibility and administrative requirements under this new law.
Please contact Med-QUEST. Med-QUEST members are encouraged to continue to making and keeping appointments with health care providers and picking up any medications that are prescribed. Any changes to your coverage will be noticed in advance by Med-QUEST.
COFA migrants retain access to Med-QUEST under this law. However, changes to work requirements for low-income adults apply to all Med-QUEST enrollees, including citizens of the Freely Associated States.
The law makes significant changes to federal funding for health care facilities, which may impact Hawai‘i’s health care facilities.
This law establishes new eligibility requirements for SNAP households, and reduces federal payments to Hawai‘i’s program.
Individuals ages 55-64 and parents of children over age 14 will face new eligibility requirements in order to access SNAP benefits.
Please contact the Hawai‘i Department of Human Services.
No, this law does not alter federal income tax on Social Security benefits. However, taxpayers over age 65 may be able to claim an extra deduction up to $6,000 through the 2028 tax year, depending on your income, which may help to offset federal taxation of Social Security benefits.
It depends on your field of work and your total income. The Treasury Department has not released guidance. Individuals may be able to deduct tips less than $25,000 until 2028.
Starting January 1, 2026, if you send cash internationally (or cash equivalents like money orders or cashier’s checks), the transfer will be subject to a new 1% excise tax. This tax applies to everyone, including U.S. citizens. You will not have to pay the tax on wire transfers from a U.S. financial institution, or if the transfer is funded by a debit or credit card. The Treasury Department has not released additional guidance.