Frequently Asked Questions - Budget & Project Funding
$1.55 billion of the construction cost is being paid for with funds from the Federal Transit Administration. A large percentage is being paid by tourists making purchases on Oahu (to which the half-percent GET surcharge applies), and the balance is being paid by residents and businesses (through the half-percent GET surcharge).
The project is only using short-term bonds that will be paid back using federal funds and revenue collected from the GET surcharge.
Yes. To date, HART has received $806,267,358, part of the $1.55 billion federal Full Funding Grant Agreement (FFGA) that was approved in 2012 to pay for the construction of Honolulu's rail project.
The operating budget for construction of the full 20-mile alignment is $8.165B
The local General Excise and Use Tax (GET) surcharge for rail, which is a half-percent surcharge on goods and services purchased on Oahu, has been collected since 2007. The surcharge will continue through 2027. This will yield $4.8 billion for the project. Another $1.55 billion has been awarded to HART by the Federal Transit Administration. The remaining funds will come from other federal programs and locally generated revenue, such as interest on funds on deposit.
$1.55 Billion of the project cost will be paid for by the federal government.
The project receives funding from multiple sources—in addition to GET and TAT, $1.55 billion has been awarded to HART by the Federal Transit Administration. The remaining funds will come from other federal programs and locally generated revenue, such as interest on funds on deposit. We are also introducing an element of private funding as part of the P3 contract. As the picture becomes clearer as to the effects of Covid-19 on funding sources, solutions will be devised to make up for any shortfall.
GET and TAT funding can only be used for rail transit, it’s separate from the City budget.
Public transportation as a whole is subsidized by the government at the Federal, State and Municipal levels because it is a public service that serves the community.