US Government and CLIA Block Hawaii Cruise Climate Tax

The Trump administration, through the Department of Transportation and supported by federal courts, has successfully blocked Hawaii’s proposed climate tax on cruise ships.

The action followed a lawsuit filed by the Cruise Lines International Association (CLIA) and resulted in a temporary injunction issued by the 9th US Circuit Court of Appeals. The ruling stopped enforcement just hours before the tax was scheduled to take effect on January 1, 2026.

How the tax would have worked

Under the proposal, cruise passengers would have paid an additional 11 percent tax on top of the gross cruise fare, calculated based on the number of days a ship spent in Hawaiian ports. For example, a $2,000 cruise itinerary that included three days in Hawaii would have added $660 in new taxes for each passenger.

Hawaii estimated the tax would generate around $100 million annually. State officials said the funds would be directed toward conservation and climate resilience efforts, including shoreline erosion control, wildfire mitigation, and infrastructure protection for vulnerable coastal areas.

Legal challenge led by CLIA

CLIA argued that the new levy violated the US Constitution and federal maritime law, claiming it would unfairly increase cruise fares and disrupt interstate commerce.

The association maintained that individual states should not impose taxes that effectively penalize ships for accessing ports used as part of multi-state or international itineraries.

The US government intervened in the case, arguing the tax placed an unconstitutional burden on interstate commerce and conflicted with federal authority over maritime transportation. By blocking the measure, federal officials and industry groups say the ruling preserves cruise affordability and avoids setting a precedent that could disrupt travel pricing in other port destinations.

Photo by Josh Smith on Unsplash