Hawaii's safety net is fraying and near breaking.

Nonprofits report long-running state contract shortfalls that leave programs covering large annual deficits, even as services helped people like Coast Guard veteran Alfreda "Freda" Trawick secure housing.

After nearly a decade living in parks and shelters, Coast Guard veteran Alfreda “Freda” Trawick signed a lease in December after receiving help from Institute for Human Services programs. Her path to housing illustrates how coordinated services can move someone from crisis to stability. At the same time, many nonprofit providers report state contracts that do not cover the full cost of delivering services. Federal funding uncertainty and possible health policy changes add further pressure to programs serving veterans, people exiting incarceration and families in crisis. Key facts: - A survey of Hawaii True Cost Coalition members found 68.9% say state contracts never or rarely cover actual delivery costs, and 70% report annual shortfalls exceeding $100,000. - The Institute for Human Services reported serving 5,749 people in fiscal year 2025 and stabilizing housing for 820 individuals beyond other homeless-prevention programs. - Reentry services housed 72 formerly incarcerated people with three returning to incarceration, and the Return-to-Home Relocation program reunited 176 people with family support networks out of state. - Emergency interventions for people experiencing homelessness cost $103 million in 2023, and the state estimated in 2025 that one person experiencing homelessness costs about $82,000 a year; these figures come as federal funding and health policy changes create uncertainty for programs. Summary: Shortfalls in contracted funding are prompting some nonprofits to close or scale back services, which the coalition reports can raise longer-term costs for emergency care and the criminal justice system. The Hawaii True Cost Coalition is requesting contracts that reflect current operating costs, multiyear funding agreements and contingency planning; the next legislative or funding decisions are undetermined at this time.