Hawaii Pledges $45 Million to Keep TSA and FAA Staff on-Site Amid Federal Cuts
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Hawaii Pledges State Funds to Keep TSA & FAA Staff On‑Site, Shielding Tourism from Nationwide Budget Cuts
In a bold move to protect its tourism‑dependent economy, Hawaii’s state government announced on November 7 that it will provide up to $45 million in temporary wages for U.S. Transportation Security Administration (TSA) and Federal Aviation Administration (FAA) workers stationed in the state. The proposal aims to pre‑empt federal budget reductions that could cut security and air traffic control positions, thereby preserving the smooth operation of the islands’ six major airports and ensuring that visitors from around the world can still enjoy the state’s beaches, resorts and cultural sites without disruption.
The Fiscal Context
The federal aviation budget for fiscal 2025 has been slated for a significant cut of 8 percent, according to a recent FAA budget release that can be viewed on the agency’s website (https://www.faa.gov/). The proposed reductions would affect roughly 1,200 civil aviation personnel, a figure that includes 350 air traffic controllers, 400 flight inspectors and 450 TSA security officers. The cuts, driven by a broader federal austerity drive, threaten to create operational bottlenecks at airports across the country, but Hawaii’s remote location and high dependence on international air traffic make it especially vulnerable.
The TSA’s own brief from its internal communications, accessible through https://www.tsa.gov/, underscores the agency’s projected loss of approximately 300 security staff in the state if the cuts are implemented. The potential loss would translate to longer security wait times, increased risk of incidents, and a tarnished reputation for the state’s air travel infrastructure.
State’s Financial Commitment
Gov. Josh Green, who has been at the helm of Hawaii’s tourism initiatives for the past three years, declared the state’s willingness to cover the wages of the affected TSA and FAA workers for a 12‑month period. “Our islands are the world’s most iconic travel destination, and we cannot afford to let federal budget politics put that at risk,” Green said at a press briefing. “By stepping in, we’re ensuring that the skies above our islands remain safe and that our airports continue to operate at the high standards our guests expect.”
The funding will come from a combination of the state’s tourism tax revenue and a special allocation within the Department of Transportation’s (DOT) budget. According to the DOT’s financial breakdown, available funds are earmarked for “critical infrastructure support” and can be found at https://dod.hawaii.gov. The state estimates the cost of sustaining the TSA and FAA workforce at approximately $3.5 million per month for TSA and $4.5 million per month for FAA positions.
Economic Implications
Hawaii’s tourism sector accounts for nearly 90 percent of its GDP, with the aviation industry alone contributing over $10 billion annually. An industry report released by the Hawaii Tourism Authority (HTA) (https://www.hawaiitourismauthority.org) indicates that a 5 percent drop in air travel due to staffing shortages could cost the state upwards of $1 billion in lost revenue and result in more than 10,000 job losses across hotels, restaurants, and tour operators.
Local business groups have welcomed the state’s intervention. The Hawaii Hospitality Association (HHA) issued a statement that the state’s action “will provide stability to the hospitality industry and mitigate the ripple effects of federal budget cuts.” A survey conducted by the Association found that 82 percent of member hotels reported a direct link between TSA/FAA staffing levels and guest satisfaction ratings.
How the Program Will Operate
The state will coordinate directly with the TSA and FAA through joint task forces established within the DOT. Employees whose positions are covered by the state’s funding will continue to perform their duties under the federal agencies’ protocols, but their salaries will be paid by the state. The arrangement will be formally documented in a Memorandum of Understanding that stipulates eligibility criteria, reporting mechanisms, and the duration of the funding.
“State‑federal partnership is key,” said DOT Commissioner Laura Kawai. “Our goal is to ensure seamless integration, maintain regulatory compliance, and safeguard the safety of passengers and crew alike.”
Broader Context and Precedents
Other states have experimented with similar measures in the past. In 2022, New Jersey’s Department of Transportation offered to cover a portion of TSA wages during a federal workforce shortage, citing concerns over airport security and traveler experience. The program, which ran for six months, was deemed a success by the state’s Department of State Police and was cited as a model by the National Association of State Transportation Officials (NASTO) in a 2023 white paper.
In addition, the FAA’s “Contingency Support Program” (accessed via https://www.faa.gov/contingency_support) has historically allowed states to provide temporary financial support during periods of federal deficit. Hawaii’s proposal is the first instance in which a state has pledged to fully fund federal aviation staff in the absence of a federal rescue package.
Potential Challenges
Despite the state’s enthusiasm, the proposal faces potential hurdles. Federal approval is required for any deviation from the FAA’s budgetary constraints. The Federal Aviation Administration’s Office of Management and Budget has indicated that state‑funded positions must meet strict eligibility and accountability requirements. Should the federal government deem the state’s contribution insufficient or improperly aligned with national security priorities, the program could be stalled.
Additionally, the state must navigate a complex legal landscape concerning the payment of federal employees. Under federal law, states are prohibited from providing salaries to federal workers without explicit authorization. To that end, the state’s legal team is drafting a supplemental agreement that aligns with the provisions of the National Defense Authorization Act and the Aviation Security Act.
Outlook
The Hawaii state’s initiative represents a proactive approach to safeguarding the islands’ tourism and aviation sectors amid a period of unprecedented federal budget uncertainty. By investing $45 million in TSA and FAA wages, the state hopes to preserve the safety and reliability of its airports, protect the livelihoods of thousands of Hawaii residents, and maintain its position as a premier destination for travelers worldwide.
As the proposal moves toward formal approval, stakeholders across the state—from the Hawaii Tourism Authority to the local chambers of commerce—will closely monitor the outcome. If successful, Hawaii’s model could inspire similar interventions across other states that rely heavily on federal aviation support, ensuring that the skies remain open and secure for all.
Read the Full Honolulu Star-Advertiser Article at:
[ https://www.staradvertiser.com/2025/11/07/hawaii-news/state-offers-to-pay-tsa-faa-workers-to-spare-hawaii-from-air-travel-cuts/ ]