The governor of Hawaii signed legislation that raised taxes on hotel rooms and vacation rentals to raise funds to address the consequences of the climate crisis.

This is the first time the U.S. government has imposed such a tax on helping to cope with the warm planet.

Officials estimate that tax revenue will generate nearly $100 million a year. The money will be used for projects such as replenishing sand on erosion of Waikiki beaches, promoting the use of hurricane clips to protect roofs in powerful storms and clearing flammable invasive grasses, such as those two years ago, which burned large wildfires that killed 102 people.

Hawaii's Governor Josh Green said Tuesday that other states and countries will need to take similar actions to address the climate disaster that flooded the planet.

"There will be no way to deal with these crises without some forward-looking mechanism," Green said.

Starting from January 1, the measure adds additional fees to the daily indoor fee tax. Green said that is equivalent to an additional $3 tax on hotel prices for $400.

Starting in July 2026, it also imposes a new 11% tax on cruise bills, selling for the number of days the ship is in the Hawaii port. The provision would align the cruise tax with the room tax on the land.

Travelers traveling to Hawaii have already paid a significant room tax. With the new law, the state's existing short-term accommodation tax rate of 10.25% will climb to 11%. Along with taxes from other states and counties, visitors will pay nearly 19% taxes to their accommodation, one of the highest tax rates in the country.

Green believes that the increase in visitors is small enough that there will be no big difference. And, he predicts that, given that many visitors head to the state to enjoy the environment, many will welcome payments to protect the coastline and community.

Hotels in Hawaii have also finally supported the bill, saying it will help improve the experience for visitors. Green said the industry looked at the “greater interests” of tourism, Hawaii and the planet.

Green initially introduced a bill to increase tax revenue from taxes to dedicated funds, but lawmakers put the money into the state's general funds. Their compromised measures call on the governor to request funds from the legislature from projects in various areas: protecting local forests, flora and fauna; enhancing climate resilience; and mitigating the environmental impact of tourism. Green said they will work together to implement the law.

State representative and chairman of the House Tourism Committee Adrian Tam said the state must win the public's trust that it will spend money transparently in the most ways. He noted that Hawaii's tourism economy relies on a brand that relies on a pristine natural environment.

"If we don't take action now, the visitor industry will struggle," said Tan, a Democrat representing Waikiki. "If our beaches are destroyed, wildfires have taken over our towns and hiking is unmanaged."