The measure has been forcefully opposed by non-union contractors.
Two council members who previously supported the funding voted no.
While the City Council was warned the nearly $200 million could be lost to flood-control efforts elsewhere, there is actually a surplus of federal money for such projects.
Some residents ask whether campaign contributions and a job factored into Ernie Martin’s support for a controversial Pupukea project.
The invoice represents only some of the city’s Kealoha-related legal costs.
City Councilman Joey Manahan says the purpose of the legislation is to make sure that union labor is used on any public works project worth over $250,000.
But the full effect of Oahu’s new law severely limiting Airbnb-type rentals and imposing stiff fines on violators won’t start until late 2020.
Each of the nine council districts will receive an equal share of the money to fund projects in their own communities.
The council wants to overturn the Police Commission’s decision to pay for the former police chief’s defense in a public corruption trial.