Informing the Legislature that on July 7, 2026, the Governor signed the following bill into law: SB3324 SD1 HD1 CD1 (ACT 198).

This bill directs the state to increase Medicaid funding for residential care services in community foster family homes and expanded adult residential care homes. The legislation appropriates $1.7 million for the 2026-2027 fiscal year to raise reimbursement rates to the "medium" level identified in a 2022 study, addressing previous funding gaps that hindered providers from offering employee benefits. The Department of Human Services must secure the maximum available federal matching funds and explore other private grants before spending the money. These changes are designed to help care providers operate sustainably and expand options for older Hawaiians who need long-term care closer to home.