The state of Hawaiʻi is set to cut a sizable check for Honolulu’s rail project, moving nearly $90 million into the pipeline for Skyline construction after a close look at the books. For the quarter ending March 31, 2026, the state approved $89,439,184.09 in reimbursements to the Honolulu Authority for Rapid Transportation, a routine but key step in keeping the project funded. The total comes after a line-by-line audit of HART invoices, where state reviewers shaved off roughly $43,000 in administrative and duplicate charges before the comptroller gave the final OK.
According to the Department of Accounting and General Services, the Audit Division assigned three auditors to comb through every HART invoice and match it against Hawaiʻi law. Only after that work is done does the comptroller issue the certification letter that unlocks reimbursement. For the quarter that ended March 31, the comptroller signed that certification on April 30, then sent it to the Department of Budget and Finance so money from the Mass Transit Special Fund could actually be paid out.
What auditors flagged
State auditors pulled out $42,888.25 in expenses they labeled as HART administrative costs, along with $658.51 they tagged as a duplicate labor charge. Those amounts were stripped from the reimbursement request before it went forward. “We want the public to know there are checks and balances in place to make sure the state is responsibly spending state taxpayer dollars,” Department of Accounting and General Services Director and Comptroller Keith Regan said. The agency’s invoice schedule shows more than three dozen line items, with the largest entries, in the $15 million to $22 million range, tied to contractor Tutor Perini.
How the law governs payments
The money flows out of the Mass Transit Special Fund that was created under Act 1 of the First Special Legislative Session of 2017 and is governed by HRS 46-16.8. That statute limits surcharge revenues to capital costs for the locally preferred mass-transit alternative, which is why the state is picky about what makes it through the review. For the legal framework and the comptroller’s certification archive, see the Department of Budget and Finance. Once the Department of Accounting and General Services finishes its invoice check, the comptroller’s certification gives Budget and Finance the green light to reimburse HART from that special fund.
What it means for Skyline construction
These quarterly reimbursements are routine, but they are also a lifeline that helps keep contractors and suppliers paid as Skyline work moves into Honolulu’s downtown core. Honolulu Authority for Rapid Transportation materials show ongoing monthly progress on the rail program, and industry coverage of recent federal grant milestones and trainset deliveries adds context on what comes next. For background on federal funding tied to the project, see Railway Age.
Bottom line
The roughly $89.4 million transfer is a standard step in the funding cycle, but it arrives with a paper trail and a red pen. Reviews by the Department of Accounting and General Services have cut or rejected items that do not fit the rules, keeping state surcharge dollars focused on eligible capital costs. As HART moves into the downtown segment, those quarterly reimbursements, and the audits that come first, will stay central to keeping construction on schedule and on contract.
