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Hawaii's 'climate' cash grab hits wall as court blocks hefty new tourist tax
By Ashley DiMella
Published January 02, 2026
Hawaii’s "Green Fee" bill was set to raise tourist taxes quite substantially to help fund "climate change" mitigation this year — but now a judge has halted the provision.
The Cruise Lines International Association (CLIA), along with a cruise ship supplier, filed a lawsuit in early September challenging state tax and county finance officials in the Aloha State, as Fox News Digital previously reported.
On Dec. 31, the Ninth U.S. Circuit Court of Appeals issued an injunction pending appeal.
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It temporarily blocks enforcement of the cruise-ship tax while the appeals proceed, The Associated Press (AP) reported.
The Transient Accommodations Tax (TAT) planned to raise the tax on tourists who stay at Hawaii hotels while imposing a new 11% tax on cruises, according to the text of the bill.
Hawaii's "Green Fee" cruise ship tax has been temporarily blocked by a Ninth Circuit court injunction after the Cruise Lines International Association filed a lawsuit challenging the 11% tourist tax. (iStock)
Toni Schwartz, spokesperson for the Hawaii attorney general’s office, told AP the office "remain[s] confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits."
Fox News Digital reached out to the CLIA for comment.
Portions of the revenue raised would go into the "Climate Mitigation and Resiliency Special Fund."
The association previously told Fox News Digital it "believe[s] the extension violates both the U.S. Constitution and federal law, while imposing an additional financial burden on passengers already subject to substantial fees and taxes."
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The association also pointed out the benefits that cruise tourism brings as a major economic driver of the state.
"We remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits," said a spokesperson for the Hawaii attorney general’s office. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images)
"Extending the TAT to cruise passengers threatens to deter visitors whose spending fuels this economic engine, risking job losses and eroding the financial stability of businesses dependent on tourism," CLIA added.
The lawsuit points out that the state's counties each add their own 3% surcharge on top of the state's tax — bringing the total tax to 14%.
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Portions of the revenue raised would go into the "Climate Mitigation and Resiliency Special Fund" and the "Economic Development and Revitalization Special Fund," according to the bill.
Some 168,123 visitors traveled to Hawaii by cruise ship in the year 2024. (iStock)
The bill addresses invasive species, wildlife conservation, and beach management and restoration.
It will also help fund a "green jobs youth corps," as well as areas of environmental concern.
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In 2024, 168,123 visitors traveled to Hawaii by cruise ship, according to the Hawaii Tourism Authority.
The "Green Fee" is projected to generate $100 million annually, according to the release.
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The Associated Press contributed reporting.
https://www.foxnews.com/travel/hawaiis-climate-cash-grab-hits-wall-court-blocks-tourist-tax