A lawsuit filed by five Hawaiians claims that the Office of Hawaiian Affairs is illegally spending dollars reserved for the benefit of those with 50 percent Hawaiian blood or more.
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Under the Hawaiian Homes Commission Act, money generated by the so-called ceded lands — former Hawaiian crown and government lands — is supposed to benefit those with 50 percent blood quantum.

A federal appeals court last month upheld OHA's spending of ceded land revenues, but found constitutional problems with the agency's race-based use of state tax revenues from the general fund.

Currently, about 10 percent of OHA's $28.5 million in funding comes from state taxes, with the rest from ceded lands.