You can't pass a static method as an argument to another static method. You can't write a static method that returns a static method. You can't partially apply a static method. Static methods are not functions.
I think Kyllo was referring more to first-class/higher-order functions. I believe Java 8 added support for lambda expressions, but it's nowhere near the same thing.
That's the lack of higher order functions and the lack of first class functions. Anyway I think higher order functions and method references have been added to Java 8 as well as Lambda functions.