Cash and Wildfires in Maui

On Tuesday, August 8, high winds blew down power lines in the Hawaiian island of Maui, causing several wildfires that spread quickly. The fires decimated the town of Lahaina, a community of 13,000 people, and caused 97 fatalities (see Map 1).

Map 1. Maui: Damage from Wildfires, August 12, 2023

Source: New York Times (2023).

Invasive grasses and shrubs prone to catch fire thrive in Hawaii, while drought has increased with climate changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More. According to the National Interagency Fire Center, 71.8 million properties in the United States are at “some level of risk from wildfire.”

Impact on CashMoney in physical form such as banknotes and coins. More and Banking Infrastructure

“Access to cash is critically important during an emergency event.” – Central Pacific Bank.

The fire’s rapid spread disrupted preparedness and response efforts. Lahaina residents received no evacuation orders. Emergency sirens did not sound, hydrants ran dry, and even the 911 system went down.

Electricity, water, and internet outages prevailed in Maui. Several bank branches and ATMs remain closed.

• The Hawaii Bankers Association (HBA) “encourages Maui residents to follow all official safety guidance on avoiding fire-affected areas, as well as calling their bank branch before visiting, as hours and operations may have changed,” said Neal Okabayashi, HBA Executive Director.
• The wildfire destroyed the Bank of Hawai’i’s Lahaina branch.
• Central Pacific Bank (CPB) waived ATM fees and expedited debit card replacements. CPB’s Lahaina branch reopened on August 28.
• American Savings Bank  (ASB) waived ATM fees for customers and non-customers, effective August 12. The wildfire destroyed ASB’s Lahaina branch.
• First Hawaiian Bank (FHB) waived ATM fees for individuals on Maui. FHB lost its Lahaina branch.

Financial Aid and Digital Payments

Several organizations have launched relief efforts to help families and businesses impacted by the wildfires. Donors are transferring funds via GoFundMe campaigns, Facebook, Instagram, and the Venmo paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More app.

• “We are already seeing various fundraising efforts being promoted on social media platforms and online. In moments of crisis, we all must be extra vigilant against bad actors who try to take advantage of people’s goodwill,” said Anne Lopez, Hawaii Attorney General.
• “It gives me hope that maybe I will survive another day,” said Shannon Li, who received help via Venmo after losing her home in Lahaina.

However, survivors did not know how to access these funds.

• “We need moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More in people’s hands right now. […] There’s all these funds out there that are raising all this money, but nobody knows how to get any of it,” said Javier Barberi, owner of three restaurants in Lahaina. Barberi has given his staff cash handouts to try to help.
• “We don’t know where all the funds are going to go with the big donation sites. I’m sure it will go to the families somewhere but it will take time,” said Tiare Lawrence of Lahaina Ohana Venmo, a mutual aid group.

Cash, Emergency Preparedness, and Relief Efforts.

Cash is an essential component of emergency preparedness for state and federal authorities.

• The Hawai’i Emergency Management Agency (HEMA) recommends state residents keep “debit and credit card information, banking information [… and] extra cash in small bills” in emergency kits.
• Ready.gov, the U.S. Department of Homeland Security website for emergency preparedness, recommends people have “cash and traveler’s checks” in their emergency supply kit.

While donors have dropped clothes and supplies in Maui and the continental United States for survivors, cash is a critical part of relief and recovery efforts, as with other natural disasters such as snowstorm Uri in Texas, hurricane Ida in Louisiana (2021), and the snow blizzard in Buffalo (2022).

• “[People] need more help than we can imagine. […] No power, no AC, just pain, just in the dark, you know,” said Charlie Fleck, who gave cash handouts to survivors crowdfunded on Facebook.
• “Cash is best right now. It will allow us to buy what we need to help the people who were affected by this absolutely devastating incident,” said Jane Filipi, a volunteer in Lahaina.
• “We understand that connectivity is still scarce in some areas,” said Deanne Criswell, the Federal Emergency Management Agency (FEMA) administrator. FEMA provided $700 to survivors for food and water if they registered by phone, mobile app, or the agency’s website.

While member banks of the Hawaii Bankers Association (HBA) accept cash and check donations to assist people and businesses, state and federal officers discourage cash donations.

• People should be mindful of donating to potential scammers “asking you to make a donation using cash or gift card [as] most legitimate charities will accept credit card and check donations,” per Hawaii’s Attorney General office.
• Donors should “avoid cash donations to charities – use a credit card or pay with a check,” said the U.S. Attorney’s Office, District of Hawaii.

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