US Rep. Ed Case (D-Hawaii) voted against the Fiscal Year 2026 Financial Services and General Government Appropriations bill in the House Appropriations Committee, citing cuts to small business programs and agencies that protect consumers.
The $23.2 billion bill, which funds the Treasury Department, Small Business Administration (SBA), federal courts, the Federal Communications Commission and other agencies, is $2.9 billion below the FY 2025 enacted level. Case said the cuts would harm the roughly 134,000 small businesses that form the backbone of Hawai‘i’s economy and reduce funding for agencies that safeguard the public, including the Consumer Product Safety Commission, Federal Trade Commission and Securities and Exchange Commission.
“While this measure funds many critical national and local priorities for Hawai‘i that I requested, I regrettably had to vote against this version because of severe funding cuts to programs assisting the some 134,000 small businesses who form the backbone of Hawaii’s economy,” Case said in a public release on Thursday.
Case also stressed the importance of Community Development Financial Institutions (CDFIs), which provide financial services to underserved communities. Hawai‘i’s 11 certified CDFIs issued 935 loans totaling $132 million in FY 2022, he said. Case urged full funding for the CDFI Fund, noting the bill cuts $47 million from FY 2025 levels.
Despite his opposition, Case secured approval of several funding priorities for the State of Hawai‘i, including:
- $35 million for CDFIs
- $150 million for Small Business Development Centers
- $27 million for Women’s Business Centers
- $10 million for the State Trade Expansion Program
- $1.6 billion for Defender Services
…and other programs supporting microloans, innovation clusters and drug prevention initiatives.
The bill also incorporates Case’s provision to expand employee-owned businesses, including cooperatives and employee stock ownership plans (ESOPs), providing technical assistance and helping workers access capital. It builds off his bipartisan measure, H.R. 2993, which would assist small businesses to adopt ESOPs.
“ESOPs and similar employee ownership structures are vital to building succession plans to ensure small businesses remain in their communities where they belong,” Case said, noting Hawai‘i hosts the nation’s second-oldest ESOP chapter.
A summary of the Financial Services and General Government Appropriations bill by House Appropriation Committee Democrats is available here. The bill’s text, before adoption of amendments, is available here.
The bill is one of 12 appropriations measures that would fund the federal government at roughly $1.6 trillion for FY 2026. It now moves to the full House for consideration.
