Report finds Pentagon overstated Hawaii military economic impact by billions

September 21, 2026 at 08:17 PM2 min

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A new report co-authored by researchers with over 45 years of combined experience finds the Pentagon overstated the economic benefits of its Hawaii presence by billions of dollars. The analysis, released ahead of 2028 lease expirations for 46,000 acres of military land, says military spending drives up rents and damages the environment. The state of Hawaii and the Trump administration are discussing the future of the leases.

Key Facts

The U.S. military leases about 46,000 acres of land in Hawaii from the state under 65-year agreements signed in the 1960s for $1.
The leases begin expiring in 2028.
The military occupies about 25 percent of Oahu and 5.6 percent of the state of Hawaii, the highest share of any U.S. state.
The Pentagon reported $10 billion in military spending related to Hawaii for fiscal year 2023.
The report's authors say significant portions of Pentagon spending never reach the local economy because funds go to people and corporations in other states and countries.

Lease Expiration Debate

The U.S. military's future in Hawaii is under debate as leases for about 46,000 acres of base land begin expiring in 2028. The armed forces leased the lands from the state of Hawaii in the 1960s for 65 years at a token fee of $1. The state of Hawaii and the Trump administration have engaged in discussions about the future of these lands. Hawaii's congressional delegation and the Office of Hawaiian Affairs, the official indigenous-led state agency, have joined the debates.

Economic Impact Findings

The report, titled "The True Cost of the U.S. Military in Hawaii," was co-authored by researchers with more than 45 years of combined experience studying the U.S. military. The authors found that the Pentagon and others have exaggerated the military's economic impact by billions of dollars. The Pentagon reported $10 billion in military spending related to Hawaii for fiscal year 2023. The report says significant portions of Pentagon spending never touch the local economy because funds are paid to people and corporations located in other states and countries. The military's presence is driving up rents and fueling the housing crisis, damaging the environment and public health, and limiting the growth of industries that would create more local jobs than the military.