Press Releases

(Washington, DC) -- U.S. Representative Ed Case (HI-01), a member of the key House Committee on Appropriations, responsible for all federal discretionary funding, announced final House passage of a measure consolidating two more of twelve annual federal funding bills for the current Fiscal Year (FY) 2026 (commencing October 1, 2026).  

The National Security, Department of State and Related Programs measure funds U.S. foreign policy efforts, including the Department of State, U.S. contributions to the United Nations and its agencies and more.  

The bill has historically provided for international diplomatic presence and outreach as well as foreign assistance in public health, basic education, educational and cultural exchanges, climate change and more. The bill’s proposed FY 2026 discretionary funding level is $50 billion, or $9.3 billion less than the FY 2025 enacted level, reflecting the administration’s focus on reducing such programs.

The other bill – Financial Services and General Government (FSGG) – funds the U.S. Treasury Department, the Small Business Administration (SBA), federal courts, the Federal Communications Commission, the Office of Personnel Management and various independent agencies. The bill’s proposed FY 2026 discretionary funding level is $26 billion, $3.1 billion below the current FY 2025 enacted level.

National Security, Department of State and Related Programs

Case, while opposing the overall funding reductions, welcomed support in the bill for various of his requests related to Hawai‘i and the Indo-Pacific, especially $22 million for the East-West Center in Honolulu.

“As we continue to focus on the growing influence of the PRC in the Indo-Pacific, our national security interests must also include diplomatic engagement and assistance to promote peace and diplomacy in the region,” said Case.

“Continued funding for our East-West Center and other world-leading institutions in Hawai‘i supports our country’s standing in an area widely seen as the most dynamic and critical on earth.” 

“For all seven of my years on Appropriations, I have ranked full funding for the Center at the top of my annual requests to my Committee because I believe not only in the Center’s invaluable work but in what it represents for Hawaii’s central role in the Indo-Pacific and in the broader benefits that bring high-quality jobs to our overall economy,” he said.

“Though we still await final approval by the Senate and the President, I’m grateful that my colleagues have again favorably considered my request, especially when the President’s budget proposed zero funding for the Center.” 

Other bill provisions requested by Case, who continues as co-chair of the House Pacific Islands Caucus, include:

·         $1.8 billion for the implementation of the Indo-Pacific Strategy, which promotes peace, prosperity and democracy in the region. 

·         $175 million in assistance for the Pacific Islands region, the same as FY 2025 enacted levels.

·         $20 million for the Pacific Islands Forum’s Pacific Resilience Facility, a Pacific-led and member-owned financial institution designed to support Pacific Islands nations facing climate change and disaster risks. 

·         $3 million for the Advancing Port Enhancement and Customs Security Program in the Pacific Islands.  

·         Funding for Pacific Islands exchange programs, with a focus on partnering with universities in Pacific locations.  

·         Funding for small grants programs to assist local communities across the Pacific Islands.

·         Report language supporting the Peace Corps’ expansion in the Pacific.

·         Funding for a demand-driven initiative to diversify trade opportunities in the Pacific Islands.  

·         Funding for a Flexible Microfinance Facility for the Pacific Islands, launched by the Development Finance Corporation with the Department of State. 

·         Report language supporting funding for free and open media in the Pacific. 

·         Funding for trade capacity-building activities in the Pacific Islands. 

·         Language requiring a report on ways to strengthen U.S. trade and investment with the Pacific Islands.  

·         Funding for unexploded ordinance removal in the Pacific Islands, including Papua New Guinea, Solomon Islands and Kiribati.

·         Language requiring a strategy for faith-based engagement for assistance in the Pacific Islands.

The bill further includes funding for several foreign policy programs supported by Case, although some at unacceptably low levels. Among them are:

• $411 million for the Peace Corps. 
• $335 million for peacekeeping operations.
• $1.2 billion to support international peacekeeping activities.
• $667 million for educational and cultural exchange programs, which include the Fulbright programs.
• $1.4 billion for contributions to international organizations.
• $1.3 billion for the Global Fund to Fight AIDS, Tuberculosis and Malaria.
• $915 million for maternal and child health programs. 

“While I voted for this measure because it did fund many critical Hawai‘i and Indo-Pacific priorities I requested, the bill as a whole weakens our global leadership when the world most needs our continued full engagement,” said Case.

“Yet this outcome was more favorable than the one proposed by the Trump administration and the previous House version,” continued Case. “The final version of the bill succeeded in rejecting the full extent of President Trump’s proposed cuts by investing $50 billion in U.S. global leadership, which is $19 billion or 61 percent above President Trump’s request.”

When Case spoke in Committee last year, he said the foreign affairs funding measure is a critical tool to ensure we do not “split our alliances, partnerships and friendships and cast our country as an unreliable partner,” allowing the People’s Republic of China to fill voids left by U.S. disengagement. His remarks are here. 

A summary of the National Security and Department of State Appropriations bill is here.

Financial Services and General Government

“This measure funds many critical national and local priorities for Hawai‘i that I requested, in particular programs assisting some 134,000 small businesses that form the backbone of Hawaii’s economy,” said Case.

The bill provides $1 billion for SBA, an increase of $383 million above the budget request and $169 million above the initial House level. The bill includes $330 million, an increase of $13 million above FY 2025 enacted and $180 million above the request, for Entrepreneurial Development Programs.

“These include efforts that aid entrepreneurs, provide mentorship training and expand trade opportunities in the international marketplace,” explained Case.

The final version of the bill includes $324 million for the Community Development Financial Institutions (CDFI) Fund Program, up from $277 million initially proposed by House Republicans.

Last year Case spoke in Committee in support of CDFIs, which play an important role in helping Hawai‘i. It assists specialized community-based financial institutions that promote economic development by providing financial products and services to people and communities underserved by traditional financial institutions, particularly in low-income and minority communities. See his speech in the Appropriations Committee here.

Case stressed that in Hawai‘i alone, there are 11 certified CDFIs that in Fiscal Year 2023 made loans totaling $132 million. He urged full funding to the CDFI Fund and opposed any efforts to freeze CDFI funding.

Case also gained approval of his funding requests for several federal programs and services especially important for the State of Hawai‘i including:  

·         $28 million for CDFI Native Initiatives, which provides Financial Assistance and Technical Assistance awards to build the capacity of CDFIs serving Native American, Alaska Native and Native Hawaiian communities.

·         $5.3 million for the SBA Native American Outreach Program.  

·         $150 million for Small Business Development Centers, which supports six SBDC in Hawai‘i.

·         $41 million for the Microloan Technical Assistance Program.

·         $27 million for the Women’s Business Centers Program, which supports the Patsy T. Mink Center for Business and Leadership.

·         $9 million for the Regional Innovation Clusters Program. 

·         $20 million for the State Trade Expansion Program.

·         $7 million for the Program for Investors in Micro-Entrepreneurs. 

·         $4 million for the Historically Underutilized Business Zones Program. 

·         $109 million for the Drug-Free Communities Program.

·         $299 million for the High Intensity Drug Trafficking Areas Program.

·         $1.8 billion for Defender Services. 

In addition, the bill included his provision directing the SBA to coordinate with relevant federal agencies, businesses, employees and financial institutions to expand employee business ownership, including cooperatives and employee stock ownership plans (ESOPs), provide technical assistance to assist employees in becoming business owners, and assist in accessing capital sources.

"ESOPs and similar employee ownership structures are vital to building succession plans to ensure small businesses remain in their communities where they belong,” said Case. “In Hawai‘i, we’ve seen firsthand the benefits of ESOPs. Hawai‘i is home to the second-oldest ESOP chapter in the nation, underscoring the success and importance of employee-owned businesses in our state.”

This provision builds off Case’s bipartisan measure (H.R. 2993) that would assist small businesses to adopt ESOPs, which offer a tested solution to employment and business productivity, stability and ownership transfer. (See here for more information.)

“While this measure funds many critical national and local priorities for Hawai‘i that I requested, there are also severe funding cuts to national programs assisting small businesses, including efforts that aid entrepreneurs, provide mentorship training and expand trade opportunities in the international marketplace.” 

In addition, the bill provides $45 million in funding for Election Security Grants to safeguard elections and democracy, $30 million above FY 2025. 

“In addition, the bill invests in agencies that protect the public, such as the Consumer Product Safety Commission at a level of $151 million, which keeps us safe against unreasonable risks of injury and death associated with defective products,” said Case.

A summary of the FSGG Appropriations bill is available is here.

This measure now moves to the full U.S. Senate for consideration.

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