Frequently Asked Questions - Budget & Finances
$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. President Obama's fiscal year 2017 budget once again includes full funding for the Honolulu rail transit project.
The cost for the full 20-mile alignment is estimated to be greater than $6.7 billion.
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.
Rail will cost about half as much to operate and maintain than TheBus. The cost of operating and maintaining TheBus system will increase much faster each year than it will for rail.
$1.55 Billion of the project cost will be paid for by the federal government.