HI SB1638

Establishes a three-year Molokai Air Carrier Subsidy Pilot Program within the Department of Transportation to provide subsidies to airlines operating out of Molokai Airport

Requires participating air carriers to demonstrate measurable improvements in air service availability or affordability for Molokai residents, including increased flights, reduced fares, or alternative pricing structures benefiting low-income and frequent travelers

Mandates annual audits of disbursed funds and requires carriers that misuse funds to return the misused amount and face ineligibility for up to three years

Requires the Department of Transportation to submit comprehensive reports to the legislature on program impacts before the 2026, 2027, and 2028 legislative sessions

Appropriates an unspecified amount from general revenues for fiscal years 2025-2026 and 2026-2027, with the program set to be repealed on June 30, 2028