State lawmakers unveil bills to make up for federal cuts to Medicaid, boost child care tax credits

HONOLULU (HawaiiNewsNow) - The Working Families Caucus at the state legislature says its package of bills is different this year.

Caucus members said that’s because of federal funding cuts that they say are jeopardizing Hawaii families who are already finding it hard to afford living here.

“I have six kids and two grandkids to feed, and I’m doing everything I can. But still, I come up short,” said Kristina Kaimiloa.

Kaimiloa spoke at a press conference where the lawmakers unveiled their legislative package.

It’s people like her that state lawmakers want to help as the state faces a $3 billion shortfall, largely due to federal cuts.

“Federal attacks on SNAP, Medicaid and the Affordable Care Act are already putting working families in danger,” said caucus co-convener Rep. Tina Nakada Grandinetti.

The bill package includes tax breaks for child care.

“With this bill, they would be able to get a tax credit of $10,000, which is, you know, much more help for their $28,000 child care bill.

They also want to add a 2% tax on earnings over $1 million a year to generate more than $70 million annually to help people on Medicaid.

One of those proposals earmarking the revenue from that tax increase for the Medicaid program -- that is a direct result of what we’re seeing at the federal level," said Will White, executive director of the Hawaii Appleseed Center for Law and Economic Justice.

“This year, thanks to the Trump tax cuts, the top 1% of Hawaii households will get an average federal tax break of $43,000. Working families in the bottom 20%, an average of just $90,” Grandinetti said. “That’s not relief. That’s an insult.”

They’re also pushing a measure called the Hawaii Rx Kids Program, including a direct payment of $1,500 to mothers in their third trimester, followed by six monthly payments of $500 each to support their growing ohana.

“The most insecure time for a young family is when their child is born, and it shouldn’t be that way,” said caucus co-convener Rep. Jeanne Kapela.

Supporters said it’s not a handout.

“We are families working full time, sometimes multiple jobs, making too much to qualify for help, but not enough to actually breathe,” said Kaimiloa.