Hawaii ranks last in CNBC's 2026 state business ranking
Hawaii ranks worst for business as costs, childcare, and infrastructure bite See why quality-of-life slipped and what’s next for the state’s childcare push
Hawaii was ranked the worst state for business in CNBC's 2026 rankings, largely because of its high costs, limited infrastructure, and expensive childcare. The state's qualityoflife score also slipped, reducing one of the few areas that had helped offset its weaker businessrelated rankings.
Childcare has become a major policy issue in Hawaii. The state has set goals to expand access to early learning programs for young children, and officials say they are on track to reach an initial benchmark next year. But high costs, funding pressure, and uncertainty around federal support remain challenges.
The report also notes a setback for Hawaii's early childhood efforts after Lieutenant Gov. Sylvia Luke, a key supporter of the initiative, took an indefinite leave of absence amid a campaign finance investigation. State officials say they plan to continue the work despite the leadership gap.