Hawaii’s economy thrives on military spending—but at what cost?
The US military plays a significant role in Hawaii’s economy, with deep ties to local small business ideas and communities. Recent figures show billions in spending, job creation, and environmental support—but public opinion remains mixed on its impact. New efforts aim to strengthen these connections further.
In 2023, military spending in Hawaii reached record levels. The Department of Defense directed $1.3 billion to small businesses and another $233 million to Native Hawaiian-owned firms. Overall, it aims to allocate 22% of its contract dollars through local small enterprises.
The military’s economic footprint extends beyond contracts. On Oahu alone, personnel spending hit $5.6 billion, ranking second in the nation. With 73,072 Department of Defense employees in the state, the sector supports thousands of jobs. A 10% reduction in military presence could shrink Hawaii’s GDP by $1.7 billion and eliminate over 9,000 positions. Beyond economics, the military funds environmental projects. Grants totalling $147 million went toward habitat restoration, wildfire prevention, and community programmes. Yet only a third of residents believe these efforts adequately protect natural resources. Public opinion reflects this divide. While 62% of Hawaii residents view the military’s presence positively, concerns linger over its broader effects. To track these dynamics, the state’s Department of Business, Economic Development, and Tourism (DBEDT) will now update its military economic factbook annually.
The military remains a cornerstone of Hawaii’s economy, injecting billions into small business ideas, jobs, and conservation. But as spending grows, so does scrutiny over its environmental and social impact. Annual updates to economic reports will provide clearer data on its evolving role in the islands.
