Hawaii oversight of federal grants

• Federalism
• Terms and definitions
• Laws
• Court cases
• Major arguments
• State responses to federal mandates
• State survey of the federal grant review process
  • State responses to the federal grant review process survey, 2021
  • State responses by question to the federal grant review process survey, 2021
• Federalism by the numbers
  • Federalism by the numbers: Federal mandates
  • Federalism by the numbers: Federal grants-in-aid
  • Federalism by the numbers: Federal information collection requests
  • Overview of federal spending during the coronavirus (COVID-19) pandemic
• Index of articles

Federal grants make up a significant portion of state budgets, providing funding for programs in health care, education, infrastructure, and public assistance. These funds are typically accompanied by policy conditions or reporting requirements that shape how states implement federally funded programs. In response, states have developed varying oversight systems to review, approve, and monitor federal funding.

This page summarizes federal grant funding and oversight in Hawaii. It includes data on how federal dollars contribute to the state budget, highlights Hawaii’s position relative to other states, and analyzes key laws related to grant coordination, transparency, and accountability. This research was last updated in September 2025.

HIGHLIGHTS

In fiscal year 2023, 26.6% of Hawaii’s total state revenue came from intergovernmental sources—primarily federal grants—the lowest share nationwide. The state received approximately $5.1 billion in federal funds, the 9th-lowest total.

Hawaii law established an Office of Federal Programs Coordinator under the Governor of Hawaii to manage federal grant relations and assist in securing federal funds; authorized state agencies and officials to accept and administer federal grants with available matching funds; and assigned the Attorney General of Hawaii and director of finance responsibility for obtaining available federal aid.

This article includes information about the following topics:

• Federal funding to Hawaii
  • Percentage of Hawaii budget funded by the federal government
  • Amount of federal grants to Hawaii

• Hawaii statutes on federal grant oversight
  • Executive oversight of federal grants
  • Legislative oversight and transparency
  • Audit and financial oversight
  • Agency oversight of federal grants

Background

Federal grants are a major source of funding for state governments, supporting programs in areas such as health care, education, transportation, and public assistance. These funds are distributed through a variety of mechanisms—including block grants, categorical grants, and formula-based programs—and are typically accompanied by policy conditions, reporting requirements, or other administrative mandates.

Federal grants are reported as part of a state’s intergovernmental revenue, a category tracked annually by the United States Census Bureau. Intergovernmental revenue includes funds transferred from both federal and local governments, but federal sources account for the vast majority. In 2022, approximately 98% of intergovernmental revenue received by states came from the federal government. In 2023—the most recent year for which data is available—states collectively received about $1.12 trillion in intergovernmental revenue, representing 36.7% of all general revenue.

Because of the scale and conditional nature of federal funding, many states have adopted statutory and administrative frameworks to oversee how agencies apply for, accept, and manage federal grants. These frameworks reflect broader federalism concerns—such as how states balance fiscal dependence with administrative autonomy, and how they respond to federal mandates that may influence state policy priorities.

This research was last updated in July 2025.

Top federal funding programs to states

In fiscal year 2023, the federal government distributed over $1 trillion in grants to states. The largest programs included Medicaid, highway funding, rental assistance, and child nutrition. Medicaid alone accounted for 56.8% of federal grants to states, and the top 20 programs combined made up approximately 87.8% of total federal grant outlays to states.

Federal funding to Hawaii

Amount of federal grants to Hawaii

In 2023, Hawaii received approximately $5.1 billion in intergovernmental revenue out of a total $19.2 billion in state revenue, the 5.1-highest nationwide. The national average was approximately $22.3 billion per state. Across all states, intergovernmental revenue totaled about $1.12 trillion out of $3.04 trillion in general revenue. In 2022, approximately 98% of intergovernmental revenue states received came from the federal government.

Percentage of Hawaii budget funded by the federal government

In fiscal year 2023, 26.6% of Hawaii’s total state revenue came from intergovernmental sources—primarily federal grants—compared to 36.7% for state governments nationwide. Hawaii had the lowest percentage of state revenue funded by the federal government.

Intergovernmental revenue by state

This table shows the percentage and amount of each state's total revenue that came from intergovernmental sources—primarily federal grants—in fiscal year 2023. It lists states in descending order by the share of revenue from these sources and includes total state revenue, intergovernmental revenue, and the percentage for each state. The data highlights how dependent each state is on federal funding as a portion of its overall budget.

Intergovernmental revenue by state, 2023

State	Total revenue (thousands)	Intergovernmental revenue (thousands)	Percent
Louisiana	$44,396,718	$22,899,720	51.6%
Arizona	$60,891,976	$29,948,016	49.2%
Missouri	$45,073,525	$20,888,653	46.3%
Wyoming	$8,357,625	$3,792,590	45.4%
Alaska	$11,883,137	$5,341,732	45.0%
Montana	$10,689,677	$4,710,013	44.1%
Kentucky	$46,180,553	$20,254,290	43.9%
Mississippi	$26,046,854	$11,310,571	43.4%
Rhode Island	$12,286,091	$5,288,136	43.0%
Oklahoma	$37,833,350	$16,255,253	43.0%
West Virginia	$18,871,691	$8,025,296	42.5%
Tennessee	$48,344,600	$20,223,947	41.8%
South Dakota	$6,278,267	$2,570,818	40.9%
Arkansas	$29,702,938	$12,104,414	40.8%
Georgia	$70,031,565	$28,344,731	40.5%
Indiana	$62,196,503	$25,102,743	40.4%
Alabama	$44,884,391	$17,879,389	39.8%
Maine	$13,604,269	$5,360,431	39.4%
New Hampshire	$10,340,297	$4,052,066	39.2%
South Carolina	$46,113,727	$17,785,656	38.6%
Nebraska	$15,493,777	$5,972,778	38.5%
Texas	$213,481,319	$82,164,797	38.5%
Pennsylvania	$127,986,754	$49,211,832	38.5%
Ohio	$98,348,911	$37,785,734	38.4%
Florida	$141,946,520	$53,706,466	37.8%
New York	$259,552,404	$96,814,839	37.3%
Michigan	$90,192,191	$33,060,736	36.7%
Vermont	$9,063,120	$3,293,531	36.3%
Colorado	$41,909,412	$15,138,043	36.1%
Maryland	$58,597,846	$21,004,254	35.8%
North Carolina	$81,064,214	$28,814,153	35.5%
Oregon	$51,612,303	$17,510,543	33.9%
New Mexico	$40,359,510	$13,628,893	33.8%
Nevada	$24,219,218	$8,040,101	33.2%
Iowa	$31,265,753	$10,333,642	33.1%
Washington	$74,164,396	$24,480,102	33.0%
California	$417,100,727	$137,666,813	33.0%
Minnesota	$60,090,592	$19,468,582	32.4%
Illinois	$111,409,197	$35,838,931	32.2%
Wisconsin	$49,805,740	$15,984,042	32.1%
Massachusetts	$80,850,200	$25,519,880	31.6%
New Jersey	$100,285,531	$31,191,180	31.1%
Connecticut	$38,016,037	$11,800,021	31.0%
Idaho	$14,453,559	$4,456,686	30.8%
Delaware	$13,462,717	$4,105,552	30.5%
Virginia	$81,975,174	$23,958,775	29.2%
North Dakota	$10,349,350	$2,876,346	27.8%
Utah	$31,293,027	$8,603,744	27.5%
Kansas	$27,507,628	$7,524,382	27.4%
Hawaii	$19,221,682	$5,057,226	26.3%

Source: U.S. Census Bureau, Annual Survey of State Government Finances

Hawaii statutes on federal grant oversight

Many states have statutory provisions that govern the oversight, approval, transparency, and auditing of federal grants received within the state. These laws typically assign responsibilities to executive agencies, the governor’s office, and the legislature to ensure proper management and accountability of federal funds. This research was last updated in September 2025.

Executive oversight of federal grants

Executive oversight of federal grants refers to statutes that assign responsibility to the governor’s office to review, approve, coordinate, or manage federal grants across the state.

Hawaii law established a Washington, D.C.–based Office of Federal Programs Coordinator under the governor to manage relations with Congress, advise state agencies on federal grant opportunities, coordinate intergovernmental programs, and assist the governor and attorney general in securing and administering federal funds.

“ §29-1 Establishment of office. There shall be in Washington, District of Columbia, a Hawaii office of federal programs coordinator. The office shall be headed by a coordinator who shall be appointed and removed by the governor, not subject to chapters 76 and 89. Effective July 1, 1982, the salary shall be $38,610 a year. Effective July 1, 1986, the salary of the federal programs coordinator shall be $0 a year. The coordinator shall appoint necessary staff, within available appropriations, not subject to chapters 76 and 89. §29-2 Powers and duties. The coordinator shall: (1) Provide a mechanism by which federal, state, and local agencies can coordinate their plans, policies, and activities; (2) Create congressional awareness and understanding of the needs and potentials of the State; (3) Encourage and advise state departments, universities or other appropriate state and local agencies in Hawaii of the availability of and the requirements of federal grants; (4) Advise and provide necessary factual data to Congress and our congressional delegation; (5) Recommend to the governor and the administration the types and necessity of either legislative or administrative action in order that the State may avail itself of beneficial federal programs; (6) Maintain contacts with federal, state, and local officials and agencies so that the programs of all levels of government may be coordinated; (7) Cooperate with our congressional delegation in promoting federal legislative or administrative action which may be beneficial to Hawaii; (8) Appear before congressional committees in support of or in opposition to legislation which affects Hawaii; (9) Perform such other services as may be required by the governor and the legislature; (10) Administer funds allocated to this office; be authorized to accept, disburse, and allocate funds which may become available from other governmental units; provided that all the funds shall be disbursed or allocated in compliance with any specific designation stated by the donating governmental unit and in the absence of specific designation, the funds shall be disbursed or allocated on projects directly benefiting the people of the State in accordance with this part; and (11) Submit to the governor and legislature reports as requested and submit an annual report with recommendations to the governor and the legislature. §29-12 Duties of attorney general, director of finance. The attorney general and the director of finance shall promptly initiate the necessary action to take advantage of or secure any federal aid which may be available to the State or its political subdivisions. §29-13 Governor may accept federal acts. The governor may accept, on behalf of the State, the provisions of any act of Congress making grants or allotments of federal-aid moneys available for expenditure in the State. ”

Legislative oversight and transparency

Legislative oversight and transparency refers to statutes requiring reports to or involvement from the legislature in managing or approving federal grants.

Georgia law required agencies to notify legislative budget offices before applying for new federal assistance and directed the legislative budget analyst to evaluate and report the fiscal impact of proposed federal grants to legislative leaders and appropriations committees.

“ GA Code § 45-12-110 (a) Any state department, board, bureau, commission, authority, or other state agency, except the Board of Regents of the University System of Georgia and its employees, intending to apply for any new program of federal assistance under any federal program shall notify the House Budget and Research Office, the Senate Budget and Evaluation Office, and the director of the Office of Planning and Budget of its intention to apply for such federal assistance at least 30 days prior to filing the application for such assistance. Such notification shall include a summary description of the proposed federal assistance project, the amount of federal funds to be requested, the amount of state matching funds, if any, to be required in connection with obtaining federal assistance, and the period of time to be covered by the proposed federal assistance project. (b) The House Budget and Research Office, the Senate Budget and Evaluation Office, and the director of the Office of Planning and Budget, acting jointly or independently, are authorized and directed to devise and distribute such forms as may be necessary to carry out subsection (a) of this Code section and, in connection therewith, to adopt and promulgate such rules and regulations as may be necessary to ensure compliance with said subsection. GA Code § 45-12-111 As soon as practicable after receiving a notification provided for in Code Section 45-12-110, it shall be the duty of the legislative budget analyst to analyze the short-term and long-term impact the proposed federal assistance project would have on state budgetary and fiscal matters if the application for federal assistance were approved. Upon completion of said analysis, the legislative budget analyst shall forward a copy of same to the President of the Senate, the Speaker of the House of Representatives, each member of the appropriations committees of the House of Representatives and Senate, and to any member of the General Assembly requesting a copy of said analysis. ”

Audit and financial oversight

Audit and financial oversight refers to statutes related to auditing, financial tracking, or compliance for federal funds.

Ballotpedia did not identify any Hawaii statutes that assigned an audit of federal grants specifically.

Agency oversight of federal grants

Agency oversight of federal grant applications refers to statutes that establish procedures or requirements for how state agencies request or acknowledge federal funding.

Hawaii Revised Statutes Title 4, Section 29-14 authorized state boards, commissions, and departments to accept federal grants and enter agreements to administer them, provided they had lawful matching state funds available when required.

“ §29-14 Boards, etc., may accept funds, comply with federal acts. Except as otherwise provided by law, any board, commission, department, or officer of the State may accept and receive on behalf of the State, and receipt for, any and all grants or allotments of federal-aid moneys made available to the State by or pursuant to an act of Congress, and enter into or make such plan, agreement, or other arrangement with the agency designated by the act of Congress as is necessary to carry out the purposes of the Act; provided that if as a condition to receiving the federal-aid moneys it is necessary to match all or any part of the grant or allotment with state moneys no plan, agreement, or arrangement may be entered into unless the board, commission, department, or officer has under its or the officer's control moneys which may be expended lawfully for the purpose. ”

Other state oversight of federal grants

Click on a state to find out its oversight of federal grants, including how it reviews, approves, and manages federal funding through statutes, executive procedures, and legislative reporting.

See also

• Federalism by the numbers
• Federalism
• Unfunded Mandates Reform Act
• Regulatory mandate
• Interlocking (cooperative) federalism

External links

• Search Google News for this topic

Footnotes

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