Hawaii Lawmakers Move to Cut Cruise Ship Contribution to Climate Fund

Proposed legislation would shift cruise ships from state's landmark green fee to a new per-passenger fee, reducing climate funding by millions.

Published on Feb. 24, 2026

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As the cruise industry and Hawaii spar in court over the state's new green fee, lawmakers are moving to remove cruise ships from the climate law and instead have them pay a new per-passenger fee of around $10. This change would drastically shrink the total dollars going into the green fee, limiting its ability to address overtourism, natural disasters, and climate change.

Why it matters

The green fee was championed by Hawaii's governor as a top priority, aiming to fund a range of climate-related projects across the islands. Removing cruise ships from the fee and shifting them to a new per-passenger charge would significantly reduce the overall climate funding, raising concerns from environmental groups about equitable contributions from all travelers.

The details

The bills in the Hawaii House and Senate have passed initial legislative committees. The cruise industry has filed a lawsuit against the green fee, which the Trump administration joined. State officials say they are confident the fee will be upheld in court. However, the state Department of Transportation supports removing cruise ships from the green fee and adding the per-passenger fee, even though it would collect millions less annually. The per-passenger fee would be limited to harbor improvements, while the green fee paid by hotel guests would fund a wider range of climate projects.

  • The bills have passed the first legislative committees they needed to clear.
  • Oral arguments in the Cruise Lines International lawsuit are slated for April 2026.
  • The new per-passenger fee would start in fiscal year 2027, which begins July 1, 2026.

The players

Rep. Adrian Tam

Chair of the Hawaii House Tourism Committee, who said the bills aim to find a "middle ground" to avoid heavy litigation costs.

Yvonne Shinmura

Deputy Attorney General for Hawaii, who said she didn't have an answer on whether the cruise ship portion of the green fee was defensible.

Gov. Josh Green

Long championed the green fee and made it a top priority for his administration.

Sandra Weir

Vice President for Government Relations at Norwegian Cruise Line Holdings, which supports the proposed per-passenger fee because it would be spent directly on harbor facilities.

Dreana Kalili

State Deputy Transportation Director for Harbors, who said the per-passenger fees could fund "shore power" infrastructure to allow cruise ships to plug into the electrical grid while in port.

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What they’re saying

“The main point for this is to find a middle ground so that we avoid heavy litigation costs and a drawn-out process.”

— Rep. Adrian Tam, Chair, Hawaii House Tourism Committee (Honolulu Civil Beat)

“It is critical that cruise visitors contribute meaningfully and equitably. Any alternative to the green fee should have 'cruise visitors contribute on equal footing with other travelers' and support the green fee's 'same core priorities'.”

— Care for ʻĀina Now, Coalition of environmental groups (Honolulu Civil Beat)

“The charges would roughly double the $41 in total fees per passenger the cruise ships already pay to visit the ports in Honolulu, Nāwiliwili, Kahului and Hilo.”

— Sandra Weir, Vice President for Government Relations, Norwegian Cruise Line Holdings (Honolulu Civil Beat)

What’s next

The House and Senate bills have been referred to the chambers' money committees, with hearings not yet scheduled.

The takeaway

This proposed legislation highlights the tensions between the cruise industry, environmental groups, and state officials over equitable funding for Hawaii's landmark climate initiatives. The shift away from the green fee could significantly reduce climate-related funding, raising concerns about the state's ability to address pressing environmental challenges.