HI HB942

Appropriates unspecified funding from general revenues to the Department of Health for fiscal years 2025-2026 and 2026-2027 to support health care services contracted with community-based organizations.

Addresses documented funding gaps between government contract budgets and actual operating costs, with 91% of surveyed community-based nonprofit organizations reporting contracts below full operating costs.

Targets services in underserved areas including mental health care, substance abuse treatment, maternal-child health care, and developmental disabilities services for vulnerable populations such as Native Hawaiians, Pacific Islanders, low-income families, and rural communities.

Aims to prevent community-based organizations from declining contracts or reducing services due to insufficient funding and potential organizational collapse.

Takes effect July 1, 2025.