Kauai Secures $7.5 Million in Federal Funding

Funding to support affordable housing and transportation projects across the island

Published on Feb. 21, 2026

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The County of Kauai announced that Hawaii's federal delegation secured $7.5 million in federal funding for housing and transportation projects on Kauai through the Fiscal Year 2026 appropriations process. The funding will support the development of hundreds of affordable housing units and the construction of a shared use pedestrian and bicycle path.

Why it matters

This federal funding represents a significant investment in addressing Kauai's pressing needs for affordable housing and safe, connected infrastructure. The projects supported by this funding will help provide more housing options for local families and improve transportation options for residents, supporting the overall livability and sustainability of Kauai communities.

The details

The $7.5 million in federal funding includes $3.15 million for the Lima Ola Affordable Housing Subdivision in Eleele, $2 million for the Kilauea Town Expansion Project, and $2.3 million for the Waimea to Kekaha Shared Use Path. The Lima Ola project will support Phases III and IV of the 75-acre, county-owned subdivision, which will ultimately provide approximately 600 permanently affordable homes. The Kilauea Town Expansion Project will advance Phase I site preparation for a new affordable housing subdivision planned to deliver around 350 affordable rental and for-sale homes. The Waimea to Kekaha Shared Use Path will construct a pedestrian and bicycle path along Kaumualii Highway, improving safety and connectivity for residents.

  • The federal funding was signed into law on February 3, 2026.

The players

Brian Schatz

U.S. Senator and senior member of the Senate Appropriations Committee.

Mazie Hirono

U.S. Senator.

Jill Tokuda

U.S. Representative.

Derek S.K. Kawakami

Mayor of Kauai County.

County of Kauai

The local government of Kauai County.

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What they’re saying

“These federal earmarks represent meaningful progress toward some of Kauai's most pressing needs. We appreciate the strong partnership and advocacy of our federal delegation, which allows us to invest in affordable housing and safe, connected infrastructure, and to continue building communities where local families can live, work and thrive.”

— Derek S.K. Kawakami, Mayor of Kauai County (The Garden Island)

“We fought hard to make sure Kauai got its fair share of federal resources in the appropriations process. This new funding will help support affordable housing development and safer transportation options for residents across Kauai.”

— Brian Schatz, U.S. Senator (The Garden Island)

“The $7.5 million in federal funding to support affordable housing and transportation projects can make a difference for people across Kauai. These projects will help develop hundreds of affordable housing units and create safe, sustainable, transportation options for residents on the island. I'll continue working with our delegation and partners across government to deliver federal investment in communities on Kauai and across our state.”

— Mazie Hirono, U.S. Senator (The Garden Island)

“Our Kauai families deserve a chance to buy a home and put down roots in this place that we love. That means investing in housing that people can afford and putting in the necessary infrastructure to build and strengthen communities. I'm proud to have worked to secure federal funding to advance the Lima Ola and Kilauea Town developments and will continue fighting to bring resources home that strengthen Kauai communities today and for generations to come.”

— Jill Tokuda, U.S. Representative (The Garden Island)

What’s next

The county will work closely with federal agencies to finalize grant agreements and advance each project into the next phases of design and construction.

The takeaway

This federal funding represents a significant investment in Kauai's future, providing resources to address the island's critical needs for affordable housing and safe, connected transportation infrastructure. By working in partnership with the federal delegation, Kauai is taking important steps to build more livable and sustainable communities where local families can thrive.