Highlights of Governor Ferguson's Proposed 2026 Supplemental Budget

Another record-setting investment in affordable housing: increasing funding by 37% in the supplemental budget

Washington has made monumental investments in affordable housing development and preservation since 2021, yet its population growth continues to rapidly outpace the available housing supply. Rents remain high, homeownership is out of reach for many families, and too many Washingtonians are living without a safe place to call home.  

Governor Ferguson’s proposed budget gives local governments more spending flexibility to address critical housing needs and mitigate significant federal funding cuts. His investments meet rising demand for affordable housing, enabling the state to assist first time homebuyers, and create new affordable homes. By updating building codes, reducing costs of affordable housing development, and prioritizing transit-orientated affordable housing, Washington is paving a path to stable housing for future generations.

Read more about Governor Ferguson’s housing investments

Keeping Washingtonians safe, connected, and mobile

Washington’s transportation system is essential to daily life and the state’s economy, but it is under continued strain. Like many states, Washington must sustain aging infrastructure in the face of high demand, complex geography, and the rising cost of maintenance and preservation. 

These pressures are most visible in the condition of Washington’s bridges. Of the state-owned bridges, 342 are at least 80 years old, with 80 currently rated in poor condition by transportation authorities. A poor rating means the bridge shows advanced deterioration that needs to be addressed, but the bridge is not yet unsafe for travel. 

Washington’s roads tell a similar story. In recent years, national comparisons have ranked Washington among the worst states for potholes, based on data from the Bureau of Transportation Statistics, Google Trends, and national surveys. Poor pavement conditions slow traffic, increase maintenance costs for state and local governments, and directly affect household budgets. 

Targeted investments are urgently needed to keep people safe and the system functioning. Governor Ferguson’s budget focuses on critical bridge and road preservation, dependable ferry transportation, equitable service delivery, and secure, reliable data and communications systems. Without this care, infrastructure deteriorates more quickly and poses higher risks, ultimately forcing earlier, more expensive replacements and further disrupting Washington residents and businesses. 

Read more about Governor Ferguson’s transportation investments

Sustaining Essential Services and Confronting Rising Expenses

Across the nation, families are grappling with the rising costs of everyday essentials and services. Washington is no exception. While no single state can fully mitigate these pressures, Governor Ferguson’s proposal provides focused relief to the most immediate burdens. It helps ease utility costs for low-income families, expands access to free early education, and preserves vital support systems like food benefits, health insurance subsidies, and the Working Families Tax Credit.  

National pressures threaten to deepen the challenge. Recent analysis from the Office of Financial Management shows that President Trump’s proposed tariffs could drive up grocery prices in Washington by 16% over the next two years. Meanwhile, recent federal legislation has reduced support that many households rely on, while shifting new implementation costs onto states. In response, Governor Ferguson’s budget prioritizes access to reproductive, primary, behavioral health, and crisis care, helping to protect the Washingtonians who have access to the fewest options. 

Learn about affordability solutions in Governor Ferguson’s proposal

Since the beginning of 2025, the federal administration has canceled, frozen, or redirected federal funds that Congress already appropriated to states. Washington’s Office of the Attorney General, in partnership with other state agencies and local governments, has responded by joining or filing 48 lawsuits, protecting more than $15 billion in promised federal investments that are at risk over the next decade.

The cases discussed highlight some of the executive branch actions with significant financial impacts on Washington. This section illustrates the scale of federal funding cuts the state is challenging in court to preserve critical support programs.

Learn more about federal funding impacts