A federal judge has dismissed a lawsuit by a group of Hawaiians who sought to stop the Office of Hawaiian Affairs from spending on programs for people who have less than 50 percent Hawaiian blood.

U.S. District Judge Susan Oki Mollway on Monday threw out the legal challenge. The plaintiffs included Virgil Day, Mel Ho'omanawanui, Josiah Ho'ohuli, Patrick Kahawaiola'a and Samuel Kealoha.

The plaintiffs, who are Hawaiian homesteaders and at least 50 percent Hawaiian, argued that OHA benefits earmarked for them were being extended to too many people with lesser blood quantum.

OHA was created as an amendment to the Hawai'i Constitution in 1978 and was to be financed by ceded land revenues. But the lawsuit maintained that by paying for programs for all Hawaiians, regardless of their blood quantum, OHA had breached the public land trust.

Mollway dismissed the lawsuit because of a lack of jurisdiction, according to OHA. The dismissal was welcomed by OHA officials, but they also said the legal battle isn't over.

"Despite their ringing defeat, it is possible for these Hawaiian plaintiffs and their attorney to re-file their complaint in state court or appeal to the 9th Circuit Court of Appeals," said Haunani Apoliona, OHA chairwoman.

Clyde Namu'o, OHA administrator, agreed.

"Though we are all pleased with the outcome, we realize that this is probably not the last that we will hear of this matter," Namu'o said.

None of the plaintiffs could be reached for comment yesterday.

OHA said it receives $15.1 million each year in ceded land revenues. The agency's operating budget also received $2.8 million from the state general fund for this fiscal year, OHA said.

OHA's annual operating budget is $37 million for programs that OHA said "provide for the betterment of the conditions of all Hawaiians regardless of blood quantum."

Reach Curtis Lum at culum@honoluluadvertiser.com.