Paying $25,000 or more to replace something that technically still works is a hard sell for most families. The good news is that Hawaii now has a few programs to help, and more are on the way. The less good news is that they tend to be small, short, and easy to miss.
This page lists every cesspool funding option we could verify as of October 16, 2026, along with what’s open, what’s closed, and what’s coming. Programs change often, so we’ll keep it updated.
Open right now: Kauai’s cesspool conversion grant
If you own a home on Kauai, this is the one to act on this week.
- What it pays: up to $20,000, as a reimbursement after your new system is installed and approved by the Department of Health.
- How many: about 50 homeowners. The county has $1 million from the state’s Water Pollution Control Revolving Fund.
- Deadline: applications close October 23, 2026 at 4:30 p.m. The county pushed it back from October 6 because of Hurricane Lowell.
- Where to apply: online through the County of Kauai Housing Agency, or pick up a paper form at 4444 Rice Street, Suite 330, in Lihue.
You can apply even if you don’t meet any of the county’s priorities. Applications are ranked using County Ordinance 1104, which gives preference to things like being in a DOH Priority 1 or 2 area, household income at or below 120% of the median, having a homeowner exemption, being outside the county’s planned sewer area, or having a cesspool that’s failing. Any money left after that goes out first come, first served.
A few details people miss:
- The work has to be done by a licensed engineer and a contractor holding an A, C-37, C-37a or C-43 license.
- Systems that already got DOH approval to use before May 1, 2026 don’t qualify.
- If you received a state or county cesspool grant for the property before, you can’t get this one.
- If you were on the waitlist for the first round, you have to apply again.
- The grant counts as taxable income, and the county will ask for a W-9.
Coming soon: the state cesspool loan fund (Act 204)
Governor Green signed Act 204 on July 8, 2026. It creates a Cesspool Conversion Revolving Loan Fund run by the Hawaii Green Infrastructure Authority (HGIA), the same agency behind the GEM$ clean energy loans.
Here’s what we know:
- It will offer low-interest loans and other help, including forgivable loans.
- It covers septic upgrades, conversions and sewer connections, on every island.
- Low- and moderate-income households get preference.
- News reports and HGIA describe about $2 million in initial state funding, and the fund can take more from the Department of Health and the counties over time.
- The City and County of Honolulu is adding $625,000 to lower interest rates for Oahu homeowners. Hawaii Public Radio reported that Oahu residents who apply before 2030 could see 0% loans, though final terms haven’t been published.
Here’s what we don’t know yet: interest rates, loan limits, income limits, or how to apply. The program isn’t open. HGIA has said it’s aiming to launch by the end of 2026.
One warning: in September, HGIA alerted the public about fake mailers using its name. Since the cesspool loan program isn’t open yet, any letter or call telling you you’ve been “approved” for one should make you suspicious. If something looks off, call HGIA directly at (808) 587-3868 before sharing any personal information.
USDA home repair loans and grants (rural areas)
The USDA’s Section 504 Home Repair program is often overlooked, and it can be used to replace a cesspool. It’s meant for lower-income owners in rural areas, which includes all of Kauai, Molokai and Lanai and many parts of the other islands.
- Loans: up to $40,000 at a fixed 1% interest rate for 20 years, for very-low-income homeowners.
- Grants: up to $10,000 for homeowners 62 or older, to fix health and safety hazards.
- Both together: up to $50,000.
Applications are taken year-round, though funding depends on what Congress provides. The USDA Rural Development office for Hawaii is in Hilo.
Closed: the DOH pilot grant
In 2022 the legislature funded a Department of Health pilot program offering up to $20,000 to owners in Priority 1 or 2 areas who earned up to 140% of the area median income. It opened in March 2023 with $5 million, enough for roughly 200 homes. The money was gone within about two weeks. It hasn’t been refilled, so it’s effectively closed.
If a new round opens, expect it to go just as fast. Having your engineering and paperwork ready ahead of time puts you in a much better position.
Not available: the state tax credit
Hawaii used to offer an income tax credit of up to $10,000 for cesspool upgrades. It expired at the end of 2020. Two bills this year would have brought back a bigger version, covering 35% of the cost up to $28,000 for a sewer connection, but both died in committee. There’s no state tax credit right now.
Other options to look into
- Your bank or credit union. Some local lenders offer home improvement loans that work for a conversion. On Kauai, at least one credit union has offered dedicated cesspool conversion financing.
- Community projects. A few neighborhoods are organizing their own solutions. Puako on the Big Island is working toward a community sewer system paid for through a special tax district. If your area is doing something similar, it may change your best option.
- Timing it with a remodel. If you’re already financing an addition or renovation, rolling the conversion into the same loan is often the simplest path.
How to be ready when funding opens
Grant money in Hawaii goes fast, and the people who get it tend to be the ones who are already prepared. Here’s what helps:
- Confirm your cesspool’s priority level using the state’s prioritization map.
- Get a site evaluation and a written estimate so you know the real cost.
- Gather proof of ownership, your homeowner exemption, and income documents.
- Sign up for alerts from HGIA and your county housing office.
We’re happy to help with the first two steps and to work with you on the timing of a grant. Request a free estimate, and see our cost guide for what to expect.
Frequently Asked Questions
Are there grants to replace a cesspool in Hawaii?
Kauai County is offering grants of up to $20,000 until October 23, 2026. The state’s pilot grant ran out of money in 2023. Older rural homeowners may qualify for a USDA grant of up to $10,000. New programs open from time to time, so check back.
When will the Act 204 cesspool loans be available?
The Hawaii Green Infrastructure Authority has said it’s aiming to launch the program by the end of 2026. Rates, limits and the application haven’t been announced yet.
Is there still a cesspool tax credit in Hawaii?
No. The state credit expired at the end of 2020, and efforts to bring it back in 2026 failed.
Do I have to pay back the Kauai grant?
No, it’s a grant, not a loan. It’s paid as a reimbursement after the work is done and approved. It does count as taxable income.
Can I get funding if I don’t live in a priority area?
Sometimes. Kauai’s grant accepts applicants who don’t meet any priorities, and the Act 204 loan fund covers all counties. The old DOH pilot grant only covered Priority 1 and 2 areas.
Can I start the work before I’m approved for a grant?
Check the rules for each program before you start. Kauai’s grant, for example, excludes systems approved for use before May 1, 2026. Starting early can disqualify you from some programs.
How do I avoid cesspool loan scams?
Be wary of unsolicited mail or calls offering cesspool loans or “approval.” HGIA has warned about fake mailers using its name. Contact the agency or your county directly using phone numbers from their official websites.
