Skip to Content Facebook Feature Image

Federal judge upholds Hawaii's new climate change tax on cruise passengers

News

Federal judge upholds Hawaii's new climate change tax on cruise passengers
News

News

Federal judge upholds Hawaii's new climate change tax on cruise passengers

2025-12-25 08:38 Last Updated At:08:40

HONOLULU (AP) — A federal judge’s ruling has cleared the way for Hawaii to include cruise ship passengers in a new tourist tax to help cope with climate change, a levy set to go into effect at the start of 2026.

U.S. District Judge Jill A. Otake denied a request Tuesday that sought to stop officials from enforcing the new law on cruises.

In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax will generate nearly $100 million annually.

The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passengers, starting next year, prorated for the number of days the vessels are in Hawaii ports.

Cruise Lines International Association challenged the tax in a lawsuit, along with a Honolulu company that provides supplies and provisions to cruise ships and tour businesses out of Kauai and the Big Island that rely on cruise ship passengers. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering Hawaii ports.

Plaintiff lawyers also argued that the tax would hurt tourism by making cruises more expensive. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.

“Cruise tourism generates nearly $1 billion in total economic impact for Hawai‘i and supports thousands of local jobs, and we remain focused on ensuring that success continues on a lawful, sustainable foundation,” association spokesperson Jim McCarthy said in a statement.

According to court records, plaintiffs will appeal.

Hawaii will continue to defend the law, which requires cruise operators to pay their share of transient accommodation tax to address climate change threats to the state, state Attorney General Anne Lopez said in a statement.

The U.S. government intervened in the case, calling the tax a “scheme to extort American citizens and businesses solely to benefit Hawaii” in conflict with federal law.

Plaintiff and Department of Justice attorneys filed motions Wednesday seeking to maintain the status quo pending appeal. Otake denied the motions.

FILE - A cruise ship, background, is docked in Honolulu, March 23, 2020. (AP Photo/Caleb Jones, File)

FILE - A cruise ship, background, is docked in Honolulu, March 23, 2020. (AP Photo/Caleb Jones, File)

TEGUCIGALPA, Honduras (AP) — Trump-backed candidate Nasry Asfura won Honduras’ presidential election, electoral authorities said Wednesday afternoon, ending a weeks-long count that has whittled away at the credibility of the Central American nation’s fragile electoral system.

The election is continuing Latin America’s swing to the right, coming just a week after Chile chose the far-right politician José Antonio Kast as its next president.

Asfura, of the conservative National Party received 40.27% of the vote in the Nov. 30, edging out four-time candidate Salvador Nasralla of the conservative Liberal Party, who finished with 39.53% of the vote.

The former mayor of Honduras’ capital Tegucigalpa, won in his second bid for the presidency, after he and Nasralla were neck-and-neck during a weeks-long vote count that fueled international concern.

On Tuesday night a number of electoral officials and candidates were already fighting and contesting the results of the election. Meanwhile, followers in Asfura's campaign headquarters erupted into cheers.

"Honduras: I am prepared to govern," wrote Asfura in a post on X shortly after the results were released. “I will not let you down.”

The results were a rebuke of the current leftist leader, and her governing democratic socialist Liberty and Re-foundation Party, known as LIBRE, whose candidate finished in a distant third place with 19.19% of the vote.

Secretary of State Marco Rubio congratulated Asfura on Wednesday, writing on a post on X: “The people of Honduras have spoken ... (the Trump administration) looks forward to working with his administration to advance prosperity and security in our hemisphere.”

The European Union and number of right-leading leaders across Latin America, namely Trump-ally Argentine President Javier Milei, also congratulated the politician.

Asfura ran as a pragmatic politician, pointing to his popular infrastructure projects in the capital. Trump endorsed the 67-year-old conservative just days before the vote, saying he was the only Honduran candidate the U.S. administration would work with.

Nasralla maintained the claim that the election was fraudulent on Wednesday, saying electoral authorities who announced the results “betrayed the Honduran people."

On Tuesday night, he also addressed Trump in a post on X, writing: “Mr. President, your endorsed candidate in Honduras is complicit in silencing the votes of our citizens. If he is truly worthy of your backing, if his hands are clean, if he has nothing to fear, then why doesn’t he allow for every vote to be counted?”

He and other opponents of Asfura have maintained that Trump’s last-minute endorsement was an act of electoral interference that ultimately swung the results of the vote.

The unexpectedly tumultuous election was also marred by a sluggish vote count, which fueled even more accusations.

The Central American nation was stuck in limbo for more than three weeks as vote counting by electoral authorities lagged, and at one point was paralyzed after a special count of final vote tallies was called, fueling warnings by international leaders.

After expressing democratic concern about the lack of results days before, Organization of American States Secretary General Albert Rambin wrote on a post on X on Wednesday that the OAS “takes note” of the results announced and noted it is “closely following events in Honduras”.

It also condemned electoral authorities for announcing the results while the final .07% of votes were counted with such razor-thin margins in the election.

For the incumbent, progressive President Xiomara Castro, the election marked a political reckoning. She was elected in 2021 on a promise to reduce violence and root out corruption.

She was among a group of progressive leaders in Latin American who were elected on a hopeful message of change around five years ago but are now being cast out after failing to deliver on their vision. Castro said last week that she would accept the results of the elections even after she claimed that Trump’s actions in the election amounted to an “electoral coup.”

But Eric Olson, an independent international observer during the Honduran election with the Seattle International Foundation, and other observers said the rejection of Castro and her party was so definitive that they had little room to contest the results.

“Very few people, even within LIBRE, believe they won the election. What they will say is there’s been fraud, that there has been intervention by Donald Trump, that we we should tear up the elections and vote again,” Olson said. “But they’re not saying ‘we won the elections.’ It’s pretty clear they did not.” —— Janetsky reported from Mexico City.

Supporters of the National Party celebrate as the National Electoral Council decelerate presidential candidate Nasry Asfura the winner of Honduras' presidential election in Tegucigalpa, Honduras, Wednesday, Dec. 24, 2025. (AP Photo/Fernando Destephen)

Supporters of the National Party celebrate as the National Electoral Council decelerate presidential candidate Nasry Asfura the winner of Honduras' presidential election in Tegucigalpa, Honduras, Wednesday, Dec. 24, 2025. (AP Photo/Fernando Destephen)

Supporters of the National Party celebrate after the National Electoral Council declared presidential candidate Nasry Asfura the winner of Honduras' presidential election in Tegucigalpa, Honduras, Wednesday, Dec. 24, 2025. (AP Photo/Fernando Destephen)

Supporters of the National Party celebrate after the National Electoral Council declared presidential candidate Nasry Asfura the winner of Honduras' presidential election in Tegucigalpa, Honduras, Wednesday, Dec. 24, 2025. (AP Photo/Fernando Destephen)

Recommended Articles