Press Releases

(Washington, DC) – U.S. Representative Ed Case (HI-01) reported that his Appropriations Committee approved its second Fiscal Year (FY) 2027 funding measure : the Financial Services and General Government (FSGG) Appropriations bill, which funds the Small Business Administration (SBA), U.S. Treasury Department, federal courts, the Federal Communications Commission, the Office of Personnel Management and various independent agencies.

The bill’s proposed FY 2027 discretionary funding level is $25.3 billion, about $1 billion below the current FY 2026 enacted level. 

Case voted against the final measure because of unacceptable cuts to key programs. However, he worked with majority and minority Appropriations colleagues to incorporate several of his requests into the bill, most particularly funding for key Native Hawaiian programs that are under direct threat in the Trump administration’s FY 2027 budget request.  

The measure provides $35 million for Community Development Financial Institutions (CDFI) Native Initiatives that support indigenous peoples to include Native Hawaiians; appropriates $5.3 million for the SBA Native American Outreach Program that focuses on creating entrepreneurial opportunities for Native Americans, Alaska Natives and Native Hawaiians; includes language in support of the SBA 8(a) Program and questions efforts to terminate the 8(a) status of hundreds of small businesses; and includes funding for other programs that help America’s indigenous peoples.

On small businesses, Case highlighted a mixed result. The bill provides $827.8 million for the SBA, an increase of $498.8 million above the President’s budget request of just $329 million. However, it only includes $285.5 million for Entrepreneurial Development Programs, a decrease of $44.5 million below the FY 2026 enacted level.

“These SBA programs are critical to sustaining and growing Hawaii’s 134,000 small businesses, especially as we foster the entrepreneurism that is so necessary to today’s economic health,” said Case. “The measure is far better than the President’s budget proposal but does not go far enough to support federal programs assisting small businesses, including specific efforts to aid entrepreneurs, provide mentorship training, and expand trade opportunities in the international marketplace.”

“Additionally, the bill does nothing to alleviate the strain on working families who are struggling just to get by as the cost-of-living crisis continues unabated.

“In fact, it makes this problem even worse by failing to include a pay raise for federal employees who will otherwise take an effective pay cut given rising costs and inflation.”

The White House budget proposal for FY 2027 and the bill were “silent” on a civilian federal pay raise, effectively proposing a freeze for 2027. Case voted for an amendment that would have provided them with a pay raise in 2027, but the amendment was defeated.

Case said the bill also includes language expressing concerns over the SBA’s grant application review procedures for prospective disaster loan recipients and challenges with delayed processing and reimbursements. These have been particular concerns of Hawai’i small businesses in recovering from recent disasters. Case’s Committee directed the SBA to develop a plan to reduce these delays and report its findings and proposed policy changes to the Committee by March 2027. 

Case gained approval of his funding requests for several other specific federal programs and services especially important for Hawai‘i, including:  

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

·        $140 million for Small Business Development Centers (SBDCs), which supports six SBDCs in Hawai‘i.

·        $32 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. 

·        $5 million for the Regional Innovation Clusters Program.  

·        $15 million for the State Trade Expansion Program. 

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

·        $277 million for the CDFI Fund Program. In Hawai‘i alone, there are 10 certified CDFIs that have loans totaling $56 million as of March 2026.

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

·        $300 million for the High Intensity Drug Trafficking Areas Program. 

·        $1.8 billion for Defender Services.  

Case noted as another serious deficiency in the measure its failure to address the real risks from climate change. He specifically referenced partisan riders that: 

·        Prohibit the SBA from funding climate change initiatives to help small businesses cut energy costs and reduce carbon emissions. 

·        Prohibit investment options under the Thrift Savings Plan (the federal employees pension plan) that make investment decisions based on environmental, social or governance criteria.  

·        Prohibit the procurement of electric vehicles, electric vehicle batteries, electric vehicle charging stations or infrastructure. 

Finally, the bill only provides $15 million in funding for Election Security Grants to safeguard elections and democracy, $30 million below FY 2026. “This represents an unacceptable further attack on our national election process further removing federal guardrails against fundraising abuses, misinformation and disinformation, election processing security and more,” warned Case.  

The measure is the second of the twelve bills to be taken up by the House Appropriations Committee that will collectively fund the federal government for FY 2027 (commencing October 1, 2026). The bill now moves on to the full House of Representatives for its consideration.  

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

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