Hawaii budget talks stall over income tax bill

April 29, 2026

Summary

Hawaii budget negotiations stalled as Senate leaders tied progress to a separate dispute over proposed income tax changes.

Why this matters

The impasse could affect whether lawmakers meet Friday’s deadline for a compromise state budget. The outcome will also shape Hawaii’s tax policy and how much revenue the state has available for spending next fiscal year.

Hawaii lawmakers had several days left Monday to reach a final budget agreement as negotiations stalled over a separate income tax relief bill.

At an initial conference committee meeting Wednesday on House Bill 1800, Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, told House negotiators that further progress on the budget would probably depend on the outcome of Senate Bill 3125. A follow-up budget meeting scheduled for Friday was canceled, and no new face-to-face meeting had been scheduled by Monday afternoon. The deadline for a compromise budget draft was Friday.

Lawmakers approved Hawaii’s largest income tax cut package in 2024, reducing taxes through 2031 by raising standard deductions in even-numbered years and adjusting tax brackets in odd-numbered years. Gov. Josh Green proposed in January repealing the final five years of those cuts to offset expected declines in federal funds through 2031.

The Senate supported preserving the cuts except for higher-income households, including joint filers earning more than $350,000. The House proposed keeping standard deduction increases in 2028 and 2030, repealing bracket reductions in 2027, 2029, and 2031 for all taxpayers, and adding 1 percentage point to an upper income tier in the state’s three highest tax brackets beginning in 2027.

Dela Cruz said the House plan would raise taxes for too many residents, including some doctors and small-business owners. Other senators echoed support for preserving the tax cuts, including Sen. Glenn Wakai, who said reversing them would be “a historic bait and switch,” and Sen. Lynn DeCoite, who said families could use the savings for major expenses.

Sen. Lorraine Inouye said preserving the cuts would provide more immediate help than the House proposal to expand and extend tax credits for lower-income households. Sen. Kurt Fevella, the only Republican on the Senate committee, also said the credit provision would not help enough working-class families.

More top news

South Carolina

South Carolina data center tax breaks revised to $828K

Six years ago, no companies claimed the exemption, and only a handful have used it since.

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South Carolina’s sales tax exemptions for data centers totaled $828,000 in the fiscal year that ended last June, according to corrected information from the state Department of Revenue.

The agency said it had mistakenly reported the amount in billions rather than millions, causing the tax break to be cited as $828 million instead of $828,000. The Revenue and Fiscal Affairs Office based its calculations on Department of Revenue data, and the SC Daily Gazette had used those figures.

The exemptions apply to the state’s 6% sales tax on computer equipment and servers housed in data centers, as well as the electricity used to power them. The Department of Revenue reports the exemptions as a single total and does not track how much comes from equipment versus electricity.

The impact of the exemption had not previously been published in annual reports by state fiscal analysts because so few companies had used it, according to the Department of Revenue.

Meanwhile, a bill setting standards for where and how data centers are built, and how their power costs are assigned, advanced Tuesday from the Senate Agriculture and Natural Resources Committee. Sen. Tom Davis, R-Beaufort, introduced the proposal.

With eight days left in the legislative calendar, senators said passage remained unlikely.

The bill would create an office within the state Department of Environmental Services to permit data centers based on water use, noise, and proximity to environmentally sensitive areas. It would classify centers into three tiers by power use: less than 10 megawatts, less than 50 megawatts, and 51 megawatts or more.

The Public Service Commission would have to approve regulated utilities’ arrangements with data centers to ensure the centers pay the costs of producing and transmitting the power the
North Carolina

N.C. Democrats propose school immigration safeguards

The bill would prohibit public schools from collecting students’ immigration status unless required by law and from denying admission or excluding students based on that status.

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North Carolina House Democrats announced a bill Tuesday that would limit how public schools handle students’ immigration information and set procedures for immigration enforcement activity on campus.

House Bill 1061, the Plyler Educational Protections Act, is named for the U.S. Supreme Court case that barred schools from discriminating against undocumented students.

Rep. Julia Greenfield, D-Mecklenburg, the bill’s lead sponsor, said she was prompted by concerns after 27,000 students missed school in Charlotte during large-scale immigration operations in 2025.

The bill would require schools to develop response plans for immigration enforcement activity and designate an official to verify that immigration agents have a warrant before entering school grounds. It also would require schools to provide alternative instruction for students unable to attend because of immigration enforcement disruptions.

Greenfield said the proposal was not intended to interfere with lawful immigration operations.

School employees would be protected from retaliation for following a school response plan. The bill also would bar employees from disclosing students’ immigration status unless required by law, and it would allow lawsuits against schools or employees that violate the protections.

Rep. Monika Johnson-Hostler, D-Wake, said schools need clear guidance and training. Rep. Marcia Morey, D-Durham, said the bill would require schools to have a response plan if immigration officers come onto campus and would help keep parents informed.
North Carolina

NC House weighs override on concealed carry bill

Current law allows concealed carry only for people 21 and older who complete an approved firearms safety course and pass a criminal background check.

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Durham County Sheriff Clarence Birkhead said Tuesday that a bill allowing permitless concealed carry would make law enforcement work more dangerous and could increase gun violence.

Birkhead spoke at a Raleigh news conference with gun control advocates urging House members to uphold Gov. Josh Stein’s veto of Senate Bill 50, which would allow more people to carry concealed handguns in public.

Under Senate Bill 50, anyone 18 and older who can legally carry a gun could carry it concealed without a permit or safety training.

Permitless carry “makes our jobs more difficult – to put a gun in the hand of someone who’s not trained, who’s 18 years of age – so we have to approach every encounter as if there’s a weapon, because we just don’t know,” Birkhead said. “It increases the risk of someone being harmed in that encounter, whether it’s the officer, the deputy, or the citizen. That to me is unacceptable.”

The North Carolinians Against Gun Violence Education Fund cited studies it said showed firearm homicide and suicide rates increased in states that loosened concealed-weapon permitting laws or adopted permitless concealed carry, and that officer-involved shootings of civilians rose more than expected in states with such laws.

The Legislature passed the bill last year. The Senate already overrode Stein’s veto along party lines, and the House now will decide whether to do the same. A three-fifths majority in both chambers is required to override a veto.

When the House passed the bill last June, two Republicans joined all Democrats in voting against it. The outlook for an override may have shifted after two of three House Democrats who lost their primaries last year left the party.
North Carolina

North Carolina lawmakers approve $319M Medicaid bill

The bill said Medicaid coverage for noncitizens would be limited to federally required care, removing coverage guarantees for pregnant and postpartum undocumented immigrants, as well as some immigrants with legal status, including refugees.

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North Carolina lawmakers gave final approval Tuesday to $319 million in Medicaid funding to keep the program operating after months of uncertainty. The bill now goes to Democratic Gov. Josh Stein, whose office said Tuesday evening that he was reviewing it.

The measure passed nearly unanimously in both chambers. Three Democratic lawmakers in each chamber voted against it, citing concerns that a provision could end Medicaid coverage for 27,000 pregnant women and children based on immigration status.

Senate Republicans said they were unsure whether the language would remove coverage for those 27,000 people and said they were awaiting guidance from federal partners before deciding whether changes were needed.

Other provisions require the North Carolina Department of Health and Human Services to collect information on patients’ immigration status and report suspected undocumented immigrants to Homeland Security. Advocacy groups also raised concerns about higher inpatient copays and work-requirement vetting periods, both set at the maximum allowed under federal law.

Sen. Benton Sawrey, R-Johnston, said Republicans were consulting attorneys, congressional bill drafters, and the Centers for Medicare and Medicaid Services to determine whether revisions were needed. “We truthfully did not think it was an issue,” he said.

Opponents included Sens. Michael Garrett, Jonah Garson, and DeAndrea Salvador, all Democrats, and Reps. Pricey Harrison and Marcia Morey, both Democrats, and Rep. Ed Goodwin, R-Chowan.

Sen. Jim Burgin, R-Harnett, said lawmakers did not intend to affect immigrant patients’ coverage and would keep working on the bill after passage.
North Carolina

Richland jury finds Prisma liable in patient fall case

While hospitalized, the patient fell and broke his hip, then underwent surgery.

Full story +

A Richland County jury found Prisma Health Richland Hospital liable for negligence in a medical malpractice case involving Jack Mills of Columbia and awarded $315,000.

Because the hospital is a charitable entity, the award was capped at $300,000 under state law. Jurors deliberated for about 3 1/2 hours before reaching a verdict.

Mills was admitted to the hospital April 25, 2022, for confusion and shortness of breath, according to the complaint.

The complaint said the hospital failed to monitor Mills adequately. In its response, the hospital denied the allegations.

The jury found the hospital’s negligence caused Mills’ injuries, but not his death. Mills died in June 2024, a little more than two years after the fall. He was 88.
South Carolina

Hilton Head parents charged after child found alone

Two Bluffton parents were charged after deputies said their child was found alone in a Hilton Head beach parking lot Saturday.

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Two Bluffton parents were arrested Saturday after deputies said they were intoxicated and failed to supervise their son at Fish Haul Beach Park on Hilton Head Island.

A 48-year-old woman and a 55-year-old man were charged with cruelty to children and public disorderly conduct, according to Beaufort County inmate records. Both charges are misdemeanors.

Beaufort County sheriff’s deputies responded to the north-island beach park around 5 p.m. after a report of intoxicated parents allegedly “failing to look after their child,” according to an incident report.

Deputies found the couple near the beach entrance and reported that both smelled of alcohol, had “severely slurred speech,” and had trouble standing. After deputies told them about the complaints, the parents said their elementary-age son had run off toward the parking lot less than 10 minutes earlier, sheriff’s office spokesperson Lt. Daniel Allen said.

According to the report, the parents provided little information about the missing child. When deputies asked for a photo to help search, both said they had lost their phones and wallets. The report also said “neither of them seemed even slightly concerned about the sudden disappearance of their child.”

A sheriff’s sergeant later found the child “walking in the parking lot alone,” according to the report. The parents had been leading deputies to that area to show where they last saw him.

Deputies said the cruelty to children charges were based on the parents’ alleged lack of concern for the child’s whereabouts or safety. The public disorderly conduct charges were added because the couple was allegedly “grossly intoxicated” on a public beach, the report said.

The couple was booked into the Beaufort County Detention Center on Saturday evening. Their son was picked up by his uncle, who lives on Hilton Head.

Both were released Sunday afternoon on personal recognizance bonds, meaning they will not have to pay unless they violate court conditions.
Hawaii

Maui fire payouts near, many survivors face losses

Maui County estimated the fires destroyed 5,527 residential units, including 1,256 owner-occupied homes and 4,271 rentals. It said 28% of owner-occupied homes were uninsured, and about 40% of insured homes and rentals were underinsured, with a typical rebuilding shortfall of about $400,000.

Full story +

As survivors move closer to receiving shares of a $4.03 billion settlement, lawyers and insurance advocates said many will not recover all of their losses, including some who had property insurance.

Checks could begin as early as June, said Jake Lowenthal, one of four liaison lawyers for plaintiffs. Claims administrators will divide payments among 10 categories, including personal injury and home loss, under a process that is still being finalized.

Plaintiffs’ lawyers asked to collect 25% of clients’ awards, but Maui Circuit Court Judge Peter Cahill had not approved that request. He has instead considered a common benefit fund to compensate lawyers who did most of the work on the case.

Lowenthal said payouts will come in four installments. Property insurers are set to receive 10% of settlement payments made to insured homeowners under an agreement reached after the Hawaii Supreme Court ruled insurers could not sue Hawaiian Electric Co. and other defendants directly.

Medical insurers may also recover costs through liens on medical claims. Unless Congress restores an expired federal tax exemption for wildfire settlements, survivors could also owe federal income tax on the money.

About 21,750 plaintiffs sought shares of the settlement, representing 94,816 claims across the 10 categories, said Sherry Peterson, a fellow with United Policyholders, an insurance consumer advocacy group. “My personal opinion, having sat with many victims of this disaster, is that none of them are going to be made whole by this,” Peterson said. “No matter how you dice the carrot, there’s just not enough carrot for the soup.”

The settlement pool included about $1.99 billion from Hawaiian Electric, about $800 million from Hawaii taxpayers, $807.5 million from Kamehameha Schools, and smaller amounts from Maui County, telecommunications companies using utility poles, and companies affiliated with Maui landowner Peter Martin.

Insurers had paid $3.03 billion in fire-related claims as of December, according to the Hawaii Insurance Commission, including $2.16 billion to settlement participants.
North Carolina

Massachusetts woman charged after Onslow crash

A Massachusetts woman faces felony charges after an Onslow County rollover crash left two people seriously injured.

Full story +

Two people were recovering from serious injuries after a single-vehicle rollover crash April 25 on U.S. 258 in Onslow County, according to the North Carolina State Highway Patrol.

Investigators said 36-year-old Justine Sweeney of Halifax, Massachusetts, was arrested Tuesday, April 28, in connection with the crash.

Authorities charged Sweeney with two counts of felony serious injury by vehicle, driving while impaired, reckless driving, driving left of center, and failure to wear a seat belt.

Arrest warrants said Sweeney allegedly caused serious injuries to two people while driving under the influence. One victim suffered a fractured leg. Another suffered facial fractures and internal injuries, including free fluid in the abdominal area.

According to affidavits, three people were injured in the crash, which occurred at a high rate of speed. Investigators said Sweeney admitted to consuming a controlled substance and was administered Narcan at the scene.

Sweeney was being held at the Onslow County Jail without bond on the serious injury by vehicle charges. Her first court appearance was scheduled for Wednesday, April 29.
Hawaii

Hawaii budget talks stall over income tax bill

A House-Senate conference committee meeting on Senate Bill 3125 was scheduled for Tuesday.

Full story +

Hawaii lawmakers had several days left Monday to reach a final budget agreement as negotiations stalled over a separate income tax relief bill.

At an initial conference committee meeting Wednesday on House Bill 1800, Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, told House negotiators that further progress on the budget would probably depend on the outcome of Senate Bill 3125. A follow-up budget meeting scheduled for Friday was canceled, and no new face-to-face meeting had been scheduled by Monday afternoon. The deadline for a compromise budget draft was Friday.

Lawmakers approved Hawaii’s largest income tax cut package in 2024, reducing taxes through 2031 by raising standard deductions in even-numbered years and adjusting tax brackets in odd-numbered years. Gov. Josh Green proposed in January repealing the final five years of those cuts to offset expected declines in federal funds through 2031.

The Senate supported preserving the cuts except for higher-income households, including joint filers earning more than $350,000. The House proposed keeping standard deduction increases in 2028 and 2030, repealing bracket reductions in 2027, 2029, and 2031 for all taxpayers, and adding 1 percentage point to an upper income tier in the state’s three highest tax brackets beginning in 2027.

Dela Cruz said the House plan would raise taxes for too many residents, including some doctors and small-business owners. Other senators echoed support for preserving the tax cuts, including Sen. Glenn Wakai, who said reversing them would be “a historic bait and switch,” and Sen. Lynn DeCoite, who said families could use the savings for major expenses.

Sen. Lorraine Inouye said preserving the cuts would provide more immediate help than the House proposal to expand and extend tax credits for lower-income households. Sen. Kurt Fevella, the only Republican on the Senate committee, also said the credit provision would not help enough working-class families.
Middle East

UAE to leave OPEC, OPEC+ on May 1, citing interests

The UAE is one of the world’s top oil producers and has previously objected to OPEC+ production quotas.

Full story +

The United Arab Emirates will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ group on May 1, 2026, state media said Tuesday.

A statement carried by the official WAM news agency said the move was aimed at focusing on “national interests.”

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile,” the statement said.

“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all.

“However, the time has come to focus our efforts on what our national interest dictates.”

The announcement came as energy prices rose during the Middle East war. Gulf oil shipments have also been disrupted by Iran’s blockade of the Strait of Hormuz.

The article also said the UAE, which has been hit by Iranian attacks, has faced strains in its relationship with neighboring Saudi Arabia, the world’s top oil exporter and a leading force within OPEC+.