AGP Executive Report

Defense Funding Watch: The Pentagon told senators it needs about $80B, mostly to cover the U.S. war against Iran, as lawmakers question Trump’s Iran approach and wait for a formal supplemental request. Local Infrastructure: Honolulu will start July 6 emergency repairs on storm-damaged Tantalus Drive, rebuilding shoulders and adding drainage and erosion control. State Jobs: Hawaiʻi’s seasonally adjusted unemployment rate rose to 2.5% in May, with leisure and hospitality adding the most jobs. Agriculture & Food Security: UH Mānoa is building a clean-seed pipeline for Okinawan and Hawaiian sweet potatoes to protect the ʻuala industry from viruses. Cybersecurity: MS-ISAC membership topped 5,700 after a funding shift, with Hawaii’s Office of Enterprise Technology Services involved. Workforce: Honolulu’s OER and WorkHawaiʻi will host a free Kalihi career and resource event with employers and training providers. Housing Politics: Civil Beat candidate Q&As for State House District 26 keep circling back to affordability, housing costs, and GET relief. Energy/Finance: X-Caliber announced $431MM in Rural PACE-X financing for Kauaʻi’s Coco Palms redevelopment.

Defense & Tech: The U.S. Army set a Next Generation Command and Control common data layer baseline, with Anduril leading and partners like Palantir and Raft supporting scaling from validation events. Naval Construction: Seabee divers and underwater teams completed critical underwater cleaning and excavation work for Pearl Harbor’s Dry Dock 5 (P-209), a major upgrade replacing aging Dry Dock 3. Aviation & Training: Hawaiian Airlines held its inaugural Aviation Day for about 500 students, spotlighting careers across flight ops, maintenance, engineering, and cargo. Healthcare Innovation: UH is converting a garage-sized space into Hawaii’s first AI data center with $12M+ NIH funding to improve cancer research and Pacific-region medical insights. Agriculture & Food Security: UH Mānoa researchers are building a clean-seed pipeline for Okinawan heritage ʻuala (sweet potatoes), aiming to protect local crops from viruses. Tourism & Housing: Maui County’s Bill 88 passed 7-2, creating new hotel zoning districts to help vacation rentals transition as apartment-zoned rules phase out. Energy & Costs: AAA reports national gas prices easing toward $4 as summer travel ramps up, with crude and gasoline inventories moving in the right direction.

Tourism & Events: Tourism Fiji’s new CEO Dr. Paresh Pant says the country is re-accelerating its MICE push with hotel refurbishments and a stronger focus on Australia and New Zealand. Public Health & Food Safety: The FDA flagged a Great Value Hawaiian Roll recall tied to an oily/sticky substance on packaging surfaces; Walmart customers are told not to eat affected 4-packs and to return for refunds. Housing & Homelessness: Hawaii’s DLNR extended the deadline for the Puʻuhonua O Waiʻanae (POW) Waianae shoreline encampment to relocate, aiming to restore the makai site while residents move to a kauhale community. Local Weather & Coastal Conditions: Hawaii News Now forecasts mostly dry Monday with midweek showers possible, plus elevated south swells; Big Island surf reports show small-to-moderate conditions. Energy & Industry: Guam Power Authority says it has only had informal talks about nuclear microreactors, despite a push that could mandate reactors by 2030. Tech & Manufacturing: Samsung won Best Paper at VLSI Symposium 2026 for a 3D-stacked transistor approach, highlighting ongoing chip R&D momentum in Hawaii.

Healthcare & Fraud: A Filipino-American nurse was charged in Houston over an alleged $906 million Medicare/Tricare fraud scheme, including kickbacks and luxury spending tied to Hawaii property. AI for Health: UH’s Cancer Center and John A. Burns School of Medicine are launching Hawaii’s first AI data center with $12M+ in NIH funding to speed research across the Pacific. Energy & Community: Ormat’s Puna Geothermal Venture will hold a June 23 community meeting in Pāhoa to discuss plant operations and its Repower Project. Local Infrastructure: The Puna Alternate Route Study—meant to ease Highway 130 congestion and improve evacuation options—has been delayed at least six months. Transit Planning: HART’s rail “Ala Moana and Beyond” next-steps report faces pushback as it floats costly subway/streetcar extensions beyond Skyline. Food Security & Farming: Pacific Gateway Center blessed its Haleiwa farm, expanding land access and support for immigrant and refugee farmers. Renewables & Agriculture Policy: The state agribusiness board finalized terms to acquire the Wahiawa irrigation system. Housing/Development: Hawaii County is weighing buying the former Kona Kmart for a West Hawaii events center.

Renewable Energy & Community Engagement: Ormat Technologies will hold a quarterly community meeting June 23 in Pāhoa to update residents on Puna Geothermal Venture operations, safety improvements, and progress on its Repower Project. Local Governance & Housing/Relocation: DLNR extended the Puʻuhonua O Waiʻanae (Waianae Boat Harbor) encampment move-out deadline to Oct. 16, 2026, while a state senator argues repeated delays keep public safety risks in place. Maui Budget & Recovery: Maui Mayor Richard Bissen signed the $1.61B FY2027 budget, including major funding for affordable housing, Lahaina recovery projects, and infrastructure tied to future housing. Food & Manufacturing Support: The Hawaii Made Conference returns June 23 in Waikiki to help local farmers, entrepreneurs, and manufacturers scale via packaging, product development, labeling, and new market connections. Energy Resilience (Hawaiʻi Island): Hāmākua Energy will host a June 30 online community meeting on island energy resilience, reliability plans, and Q&A. Aviation Safety Oversight: A new U.S. crash involving skydivers and the NTSB’s long-running concerns about weaker rules for sightseeing and skydiving operations could matter for Hawaii’s tourism flight operators.

Energy & Resilience: Hāmākua Energy, supplying about 20% of Hawaiʻi Island’s power, will hold a quarterly online community meeting June 30 to share progress and answer questions on making the island’s grid more resilient. Local Planning & Housing: Maui County kicked off a multiyear rewrite of its long-outdated Title 19 zoning code, a move that could reshape rules for homes, businesses, and farms across Maui Nui. Infrastructure: Honolulu is set to begin emergency repairs to the Waipahu Street Arch Bridge starting June 29, with contraflow and detours expected for about three months. Environment: Kohala Center reports coral restoration at Kahaluu Bay is paying off, with signs of cauliflower coral spawning after major losses from past heat waves. Education & Workforce: Three Hawaiʻi teachers returned as national finalists after presenting an AI-responsible-use program that reached two-thirds of the state’s public high schools. Aviation & Travel Costs: AAA says the national gas average is $3.95, still well above last year, while jet fuel prices have fallen but airlines aren’t rushing to pass savings to travelers. Defense & Regional Cooperation: The Pacific Amphibious Leaders Symposium wrapped in Honolulu, bringing together leaders from 25 Indo-Pacific nations to boost interoperability and readiness.

Bridge Repairs: Honolulu will start emergency repairs on the Waipahu Street Arch Bridge June 29, with contraflow beginning Aug. 3 and an expected three-month timeline, including foundation reinforcement and streambed protection. Mental Health Workforce: DCCA is gearing up for July 1 under Act 93 (2024), adding provisional licenses for associate psychologists, associate marriage and family therapists, and associate mental health counselors to expand access statewide. Manufacturing Boost: HTDC awarded $865,660 to 26 companies through its Manufacturing Assistance Program, leveraging $10M+ in qualified investments and supporting local food and manufacturing brands. Airport Costs: New parking rates at Daniel K. Inouye International Airport take effect July 1, raising longer-stay hourly costs while keeping the first six hours unchanged. Health Supply Alert: Blood Bank of Hawaiʻi is urgently seeking AB plasma donations after supply levels dropped to about 1.5 weeks, citing import limits and a patient needing large volumes. Defense & Tech: A U.S. NDAA amendment would require deployment of transportable nuclear microreactors in the Indo-Pacific by Jan. 1, 2030, with Hawaii opposition noted during the markup. Regional Security: The Pacific Amphibious Leaders Symposium (PALS 26) wrapped in Honolulu, bringing leaders from 25 nations to strengthen interoperability and readiness.

Airport & Infrastructure: Honolulu’s Daniel K. Inouye International Airport parking rates for stays of 6+ hours rise July 1, with higher tiers for 6–7, 7–8, and 8+ hours, while the first six hours stay the same; separately, Honolulu crews begin pavement repairs on California Avenue in Wahiawa (lane closures, delays expected through Feb. 19, 2027). Energy & Efficiency: Hawaiʻi Energy launches a Hilo appliance trade-up program (ENERGY STAR fridges/freezers) for ZIP 96720, with applications open through July 24. Water & Wastewater: The city breaks ground on $85M upgrades at Kailua’s wastewater treatment plant and also moves ahead on Windward Oʻahu wastewater work. Agriculture & Land Use: Hawaiʻi Department of Agriculture and Biosecurity reports new CRB detections on Oʻahu (five dead adult beetles found in Waikapu traps), while Honolulu’s Clean Water and Natural Lands Advisory Commission advances two land preservation efforts, including a 171-acre Kahuku coastal tract and a 2.9-acre East Oʻahu burial site. Environment & Tourism: Kahaluʻu coral restoration is showing signs of recovery after years of heat-wave damage, with observed coral spawning. Housing for Workers: Hawaii’s first teacher workforce housing project, Kumelewai Hale (95 units) at Mililani High School, clears a key environmental assessment milestone for construction starting late 2027. Local Business & Community: Kona Seaside Shops in Kailua-Kona gets a $5M renovation permit approval, including demolition of three structures and new restaurant and kiosk plans.

Wastewater & Water Infrastructure: Honolulu broke ground on more than $85M in Kailua Regional Wastewater Treatment Plant upgrades, including a $61.7M dewatering building and $23.6M biotower rehabilitation after 2023 bacteria exceedances. Water Supply Disruption: A McCully water main break on Kapiolani Blvd prompted a lane closure and water service interruptions for about 35 homes/businesses while BWS repairs continue. Agriculture & Water Rights: The state Agribusiness Development Corporation approved final terms to acquire the Wahiawā Irrigation System from Dole and Wahiawā Water Company, moving key water assets under public oversight. Airport Operations: Daniel K. Inouye International Airport parking rates for cars parked 6+ hours rise July 1, with the 8+ hour rate increasing to $29. Tourism & Local Products: Hawaii’s summer tourism outlook looks slower, but industry groups are pushing local food and Hawaii-made products through major events like the Hotel & Restaurant Show and Hawaii Made Conference. Energy Costs (National, with local relevance): U.S. gas prices dipped below $4 a gallon for the first time since March, though they remain about 25% higher than a year ago.

Energy Costs & Supply Chains: U.S. gas prices slipped just under $4 a gallon for the first time since March, but drivers are still paying about $1 more than before the Iran conflict—an affordability pressure that matters for Hawaii too, where energy is largely imported. Local Infrastructure & Land Use: Hawaiʻi County postponed a vote on using eminent domain to widen a rural road in Puna after property owners testified they were blindsided and argued the land is family heritage. Defense & Logistics: Space Base Delta 1’s commander visited Maui to assess infrastructure for the Maui Space Surveillance Complex, while Marines and other leaders in Waikiki highlighted that Pacific logistics—getting supplies where they’re needed—remains the hardest operational problem. Aquaculture & Food Production: NOAA-backed CIFARM launched with about $13.5M to expand U.S. marine aquaculture research, including Hawaii institutions, aiming to reduce seafood import dependence. Aviation Labor: Horizon Air flight attendants voted to authorize a strike as contract talks with Alaska Air Group continue.

Energy Costs in Hawaii: A U.S.-Iran agreement could gradually lower Hawaii gas and electricity prices by easing oil-shipping tensions, though economists warn the relief won’t be instant. SNAP Food Rules: Hawaii will restrict sugary drinks for SNAP recipients, a move retailers say could slow sales and force stock changes. Hospitality & Food Industry: The Hawaii Hotel & Restaurant Show returns to the Blaisdell Center June 17-18, bringing vendors, local products, and live food demos. Construction & Water Security: Oahu thieves are targeting temporary water meters used for construction and emergency supply, raising replacement costs and concerns about unauthorized water use. Agriculture & Food Supply: UH researchers are building a clean seed pipeline to protect Okinawan sweetpotatoes and local ʻuala from viruses. Local Real Estate: James Campbell Company bought The Element, a 318-unit West Oʻahu apartment community near UH West Oʻahu and the rail station. Community Gardens: Honolulu will add perimeter fencing around Makiki and Ala Wai community gardens to curb vandalism and theft. Wildfire Recovery Culture: Maui’s Hot Kūpuna Nights returns June 23 with mele and resource tables for long-term recovery. Aviation/Travel: Hawaiian Airlines ends free in-flight meals on most transpacific flights starting July 1, shifting to preordered dining.

Maunakea Construction Fight: Puʻuhonua o Puʻuhuluhulu served a “cease and desist” notice to the Thirty Meter Telescope International Observatory, again pressing that the project can’t proceed on Maunakea and citing Native Hawaiian opposition and a petition with 500,000+ signatures. Local Governance & Consumer Safety: Honolulu’s Department of Planning and Permitting warned residents about fake inspection notices, emails, texts, and calls tied to bogus “notices of violation” and scam payment demands. Semiconductor R&D in Hawaiʻi: Samsung presented research at the VLSI Symposium in Honolulu on vertically stacked transistor design, aiming to boost chip density and energy efficiency. Defense & Drones: Schriever Space Force Base highlighted its counter-small unmanned aircraft systems readiness, focused on detecting and defeating drone threats. Aviation Labor: Horizon Air flight attendants voted 99.8% to authorize a strike as contract talks with Alaska Air Group’s regional carrier remain stalled. Solar Policy: Hawaiʻi extended its solar tax credit for ongoing projects, with an executive order preserving 2026 renewable energy credits. Tech Infrastructure Education: Nomad Futurist Foundation announced the Nomad Ho’ohui Invitational on Oʻahu to fund workforce pathways in data centers, connectivity, and AI infrastructure. Hospitality & Retail: Avocado Green Mattress expands into Hawaiʻi via C. S. Wo & Sons, while Kaula Lūʻau earned a USA TODAY 10Best nomination.

Food Safety: Hawaiʻi DOH warned parents about a Nara Organics powdered infant formula recall tied to potential Clostridium botulinum contamination; the products were sold nationwide and at Target in Hawaiʻi. Tourism & Events: The Hawaiʻi Convention Center’s partial closure for major repairs is now forcing delays on more than a dozen planned projects after the Legislature fell short on $55 million in capital funding. Public Health & Environment: Oʻahu beach testing found raw-sewage-linked bacteria levels exceeding safe standards at 7 of 14 sites tested over the weekend, raising swimmer health concerns. Aviation & Hospitality: Hawaiian Airlines will end free economy meals on most Hawaiʻi–U.S. routes starting July 1, switching to pre-ordered paid options. Local Finance & Payments: Maui County Federal Credit Union went live on the FedNow Service with Send/Receive/Settlement capabilities, enabling 24/7 instant payments for members. Energy & Economy: DBEDT projects Hawaiʻi growth moderating to 1.6% for 2026, citing inflation pressure but steady labor and ongoing construction and tourism spending. Defense & Infrastructure: The U.S. reestablished Submarine Squadron 3, shifting operations to HMAS Stirling in Western Australia, supporting AUKUS rotations. Retail Real Estate: Oracle Crossings in Arizona was bought for $53.8 million by Cohen & Steers Income Opportunities REIT, a grocery-anchored center with 96% occupancy.

Wildfire Response: Hawaii National Guard launched Operation Hoʻopauahi 2026 to ready UH-60 and CH-47 crews for aerial firefighting support across counties and partners. Energy Policy: Gov. Josh Green signed an executive order preserving 2026 solar tax credits amid changes that could have disrupted hundreds of millions in projects. Local Utilities & Affordability: Honolulu’s CARES sewer discount is available only to renters if the sewer account is in their name and they meet income limits—an issue for many multi-unit tenants. Food & Agriculture: Azuma Foods recalled Tako Wasabi due to undeclared fish allergen, with distribution including Hawaii. Tourism Economics: A new look at destinations Americans are skipping after prices jumped flags Maui as a “beauty” that’s become too expensive for repeat trips. Aviation Safety: Missouri’s skydiving crash is again raising questions about maintenance and weak oversight in the sport. Cruise Dining: Carnival announced new onboard restaurants and bars, including Emeril Lagasse concepts, plus a Hawaiian/Asian menu stop. Energy Tech: Microsoft and Alaska Air-backed Twelve opened a power-to-liquid SAF/e-fuel facility in Washington, producing e-fuel and CO2-derived “E-Naphtha.” Housing/Infrastructure: Waikoloa Village residents are pushing for a “Second Road” to reduce evacuation bottlenecks as housing expands.

Food Safety: Hawaiʻi DOH warned residents about a Nara Organics powdered infant formula recall due to potential Clostridium botulinum contamination, including two UPCs sold at Target in Hawaiʻi. Privacy & Consumer Protection: Hawaiʻi Office of Consumer Protection joined a coalition opposing the federal SECURE Data Act, saying it could cap state privacy protections. Local Utilities: Honolulu’s sewer fees change July 1—lower base rates but higher usage charges—aimed at rewarding water conservation, with help via the CARES program. Energy Costs: Hawaiian Airlines CEO said jet fuel prices are a major cost driver, with higher fares only partially offsetting the increase. Public Health/Tech: A Hawaiʻi ID scanning problem at airports highlighted how digital ID systems can fail even when credentials are valid. Environment & Agriculture: Maui invasive species teams confirmed dead coconut rhinoceros beetles in Waikapū and continued coordinated response. Disaster Support: SBA opened a Maui Disaster Loan Outreach Center in Kihei for storm and flooding impacts.

Hawaiʻi Economy Watch: DBEDT projects Hawaii’s growth will cool to 1.6% in 2026 after 2.5% growth in 2025, with labor staying steady and unemployment around 2.2% in early 2026. Privacy & Consumer Tech: Hawaiʻi’s Office of Consumer Protection is pushing back on the federal SECURE Data Act, warning it could cap state privacy protections and limit Hawaiʻi’s ability to respond to new tech. Medicaid Fraud Scrutiny: A dispute over Hawaiʻi’s Medicaid fraud record is heating up after federal officials questioned the state’s anti-fraud unit performance and funding. Energy & Affordability: A new index flags Hawaiʻi among the states under the most energy affordability pressure, with high bills straining household budgets. Food & Supply Chain: UNH was selected by NOAA to lead a five-year push to expand sustainable domestic seafood production via aquaculture. Local Business & Tourism: Kona Canoe Club and Hawaii Restaurant Group are rolling out World Cup watch parties with a new breakfast menu. Construction/Infrastructure: Waikoloa Village residents are demanding a second evacuation road as housing expands and wildfire risk looms.