HONOLULU (KHON2) — The Department of Hawaiian Home Lands’ proposal to build a resort-casino in Kapolei failed to move forward after state lawmakers deferred House Bill 359 on Friday.

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It’s a major setback for DHHL, which saw the proposal as a way to close the gap on their funding shortfalls and to generate revenue to help clear the backlog of Native Hawaiians waiting for homes and land.

“While the committee’s deferral of HB359 was not an ideal outcome, we look forward to the future with hope,” William J. Aila, Jr., Hawaiian Homes Commission Chairman, said in a statement Friday.

The accompanying Senate Bill 1321 will be heard next week.