Maui nonprofits involved in wildfire recovery, habitat restoration, and community services say slow county grant payments are creating financial strain. Leaders of several small cultural and conservation groups report that delayed funding, along with a new requirement to cover most project costs upfront, has led to furloughs and at least one layoff.
County Cash For Local Projects Stuck In Neutral
As reported by Honolulu Civil Beat, the county’s fiscal year 2025 budget appropriated roughly $78.7 million for grant contracts and had disbursed about $59.6 million, while the ongoing FY2026 budget set aside roughly $125.6 million and had disbursed about $46.1 million. Officials reported that 30 grant contracts from FY2025 remain open in the Department of Environmental Protection & Sustainability. They also noted that organizations such as the Maui Invasive Species Committee rely on about $2.8 million in county funding, which accounts for nearly three-quarters of the nonprofit’s yearly budget.
Why Officials Say They Tightened Oversight
County officials told council members the stricter reimbursement rules are intended to prevent fraud and improve accountability after prior errors in grant administration. Reporting by Maui News documents earlier audits and ethics questions in the Office of Economic Development that led to halted disbursements and personnel action. County staff say the new approach was recommended by legal advisors and requires more documentation up front before funds are released.
Small Groups Say The Rules Favor Big Organizations
Councilmember Gabe Johnson called the rollout “a real nightmare,” and nonprofit directors say the changes favor larger groups that can float project costs while smaller or newer organizations are left waiting. Keolamau Tengan of Ka‘ehu told Honolulu Civil Beat his group furloughed four employees and laid off one after grant payments stalled, and other leaders described invoices being rejected for minor technicalities. Nonprofits warn the uncertainty is forcing them to scramble for bridge funding or postpone essential work on the ground.
What The County Is Doing And What Comes Next
The county says it is tightening fiscal controls to protect public money while staff work through longstanding documentation and reporting issues. The County of Maui’s news page shows the Office of Economic Development held grant workshops and began accepting FY2026 grant applications in March as officials rolled out updated guidance. Officials say they are meeting regularly with departments and grantees to recommend procedural changes intended to make payments more predictable.
How Groups Are Coping
Nonprofit leaders say they will keep pushing for clearer guidance, occasional advance payments and more consistent communication while diversifying funding to avoid service interruptions. Council members have signaled they will continue oversight as the administration implements fixes and works to get funds flowing to organizations doing critical local work.
