HONOLULU (Island News) — Governor Josh Green expressed optimism about Hawaii’s economy at a State of Economy event on Thursday, stating it is stable and likely to remain so for the rest of the year.

Speaking at the event with the Chamber of Commerce on Thursday, Feb. 5, at the YWCA in Honolulu, Green highlighted the state adjusted revenue projections show a 3% growth for fiscal year 2026.

Green said the state economy is stable and will likely stay that way for the rest of the year. The budget is focused on internal savings to offset federal shifts in funding. That includes cutting costs by $149.5 million and avoiding cuts to state services.

Green said he wants to continue to promote the state to help create revenue for the future.

“It will be critical if the federal government extracted a $550 billion dollar commitment from Japan to invest in the United States of which I’ve asked to have 10%; $55 billion over time,” Green explained. “That means growth in cities along the rail and new businesses like tech start ups.”

The state continues to invest in infrastructure, affordable housing, hospital expansions and school maintenance statewide.